Towers Watson arranges $60 million cat bond in Northeast

Towers Watson Capital Markets Inc. said Thursday it has arranged a $60 million catastrophe bond, Sullivan Re 2013-1, for Hammonton, N.J.-based New Jersey Manufacturers Insurance Group.

The insurance-linked security will cover multiple perils in the insurer's New Jersey and Pennsylvania marketing territories.

“Sullivan Re will supplement NJM's risk management to help ensure that the company continues to satisfy its obligations to its policyholders for years to come,” Ed Hochberg, president of Towers Watson Capital Markets, said in a statement.

New York-based Towers Watson said the indemnity bond has a three-year maturity and will provide per-occurrence, collateralized catastrophe reinsurance coverage for New Jersey Manufacturers.

“As a three-year deal, the cat bond provides the cedant with an added dimension to its overall program,” said Rick Miller, co-head of insurance-linked securities for Towers Watson. “By working closely with our brokerage colleagues we are able to bring the most comprehensive solutions in the markets to our cedants.”