Tower Hill Insurance Completed $290 Million Refinancing
Florida-based insurers should monitor capital structures as this exchange refinances senior surplus note debt.
Updated on Sept. 30, 2026 in Corporate Finance
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Tower Hill Insurance Exchange finalized a $290 million senior surplus note refinancing to retire and replace its existing debt obligations. The transaction, which closed on September 22, 2026, secures a seven-year maturity window for the organization.
Why it matters
The refinancing enables the exchange to manage its long-term debt profile as it supports $1.2 billion in gross premiums written. By replacing existing surplus notes with a new seven-year instrument, the entity stabilizes its capital structure against future operational needs.
The $290 million refinancing replaces existing senior surplus note obligations for an organization managing $1.2 billion in gross premiums written. The new debt carries a seven-year term maturing in September 2033.
The players
Tower Hill Insurance Exchange
A Florida-based reciprocal insurance organization managing $1.2 billion in gross premiums.
Gallatin Point Capital
An investment firm specializing in financial services and insurance sector capital deployments.
Howden Capital Markets and Advisory
A financial advisory firm that provides strategic capital raising and placement services for the insurance industry.
The details
The transaction was facilitated by a consortium of investors, including Gallatin Point Capital, acting as the primary funding source. Howden Capital Markets and Advisory served as the exclusive transaction adviser and placement agent for the deal. This move follows a period of significant capital activity for the exchange, including a $575 million catastrophe bond issuance earlier in 2026.
Timeline
The Florida exchange was originally formed in 2021.
A $95 million surplus note was issued in May 2024.
The organization secured $575 million in catastrophe bonds in February 2026.
The refinancing transaction officially closed on September 22, 2026.
The new notes are scheduled to reach maturity in September 2033.
Market Landscape
This move represents a shift in the capital strategy of the exchange since its 2021 formation. It follows a broader trend of insurance entities balancing surplus note debt alongside catastrophe bond placements to manage risk exposure.
Owners and operators should track how this refinancing influences the exchange's capacity for future premium growth. Reviewing current debt service coverage ratios and long-term liquidity plans remains essential for those monitoring the stability of regional insurance partners.
The takeaway
Large-scale refinancings signal a shift in an entity's long-term capital priorities and risk capacity. Operators should keep a calendar of their partners' major maturity dates to anticipate potential changes in policy pricing or coverage availability.
Further reading
For more on how insurers manage debt, visit the Corporate Finance section.
Source note: This article includes information reported by Theinsurer.
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