Tower Hill Insurance introduces reciprocal insurer
Tower Hill Insurance , based in Gainesville, Florida, announced the formation of its newest risk-bearing entity, Tower Hill Insurance Exchange (THIE). THIE will be a reciprocal insurer whereby the policyholders, also known as subscribers, will insure each other and share in the underwriting profits generated via subscriber savings accounts. Tower Hill Risk Management will serve as the Attorney-in-Fact for THIE.
An initial capital commitment in excess of $200 million for THIE is being led by entities controlled by Gallatin Point Capital with additional capital support being provided by Vantage Group Holdings, and RenaissanceRe. Funding for THIE was arranged via TigerRisk Capital Markets & Advisory.
“Entering our 50th year as a provider of residential property coverage to the Florida market, Tower Hill is proud to bring this additional capacity to the Florida residential property marketplace during this unsettled time of dramatically rising premiums and declining coverage availability. THIE will be a Florida-domiciled reciprocal and will be owned by Florida policyholders (subscribers), not outside stockholders, and further cements Tower Hill’s long-term commitment to innovative property insurance solutions for Floridians.”
Pending approval from the Florida Office of Insurance Regulation, THIE anticipates writing personal lines business in Florida no later than January 1, 2022.