JLTCM Completes 2 Noteworthy Catastrophe Bond Transactions

Jardine Lloyd Thompson Capital Markets, Inc., (JLTCM) recently completed two private placement catastrophe bonds: Oak Leaf Re 2018–1, which closed at $45.26 million, and Market Re 2018–1, which closed at $84 million.

Oak Leaf Re Ltd. 2018–1 is an ultimate net loss, indemnity-based, collateralized catastrophe bond providing reinsurance coverage for the cedant's book of business, which covers named windstorms. The transaction consists of four classes, including a multi-section tranche covering severity/frequency and a tranche providing reinstatement premium protection. The bond is issued with a 1-year maturity, and is extendable up to 24 months.

"The Oak Leaf Re [catastrophe] bond, the eighth one, remains one of a handful of consistent issuers," said Rick Miller, managing director and co-head of insurance-linked securities at JLTCM.

Ed Hochberg, CEO of JLT Re (North America), Inc., and JLTCM, stated that "our clients and brokers see the capital markets as an integral part of reinsurance programs."

The Market Re 2018–1 cat bond provides 1-year indemnity-based, collateralized catastrophe reinsurance coverage for the cedant's Florida book of business. The transaction has one class and was placed in the private markets alongside the cedant's Florida hurricane catastrophe coverage.

Michael Popkin, managing director and co-head of insurance-linked securities at JLTCM, commented, "The strong support from insurance-linked securities managers following the 2017 storm season shows the value of having a diversified panel of reinsurers."