Jardine Lloyd Thompson Capital Markets Closes a $100 Million Catastrophe Bond
24 January 2014
New York - Jardine Lloyd Thompson Capital Markets (JLTCM) Inc., part of JLT Towers Re, announced it has arranged another private placement catastrophe bond, Skyline Re 2014-1, which will provide three-year, indemnity-based collateralized catastrophe reinsurance coverage for The Cincinnati Insurance Company. The transaction transfers risks associated with earthquakes on a per-occurrence basis, as well as severe convective storm losses on an aggregate basis. Skyline Re 2014-1closed at $100 million and at the tight end of revised price guidance.
"Following the recent formation of JLT Towers Re, we were pleased to again collaborate on such an innovative structure with Cincinnati Insurance, a true market leader. The Skyline 2014-1 transaction built upon the success and the same relationships involved in the Skyline 2013-1 transaction. At $100 million, the Skyline 2014-1 bond grew substantially from the $61.2 million 2013 bond. In addition, the transaction expands the coverage territory and provides three-year cover as opposed to the one-year cover in the previous bond. We saw not only strong support from existing investors but also significant interest from new investors.” said Rick Miller, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets.
"This second Skyline transaction clearly shows the value for cedants to begin to engage with the capital markets and develop relationships with these new business partners. The collaborative process between cedant and investor in a private catastrophe bond builds relationships between them for the long term. The growth in overall investor support for our private placement bonds clearly demonstrates that these types of cat bonds have become broadly accepted and mainstream,” commented Michael Popkin, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets.
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About Jardine Lloyd Thompson Capital Markets, Inc.
Jardine Lloyd Thompson Capital Markets, Inc. is a wholly owned subsidiary of Jardine Lloyd Thompson Group that advises clients in the areas of risk-linked securities, collateralized reinsurance, and other risk transfer solutions involving securities and other capital markets instruments.
About JLT Towers Re
JLT Towers Re was formed in 2013 when JLT Group acquired Towers Watson’s reinsurance business and merged it with JLT Reinsurance Brokers, creating a new force in the international reinsurance market.
With over 700 professionals in 30 locations across 16 countries, JLT Towers Re has established North American and London Market reinsurance broking businesses combined with international reinsurance operations and a dynamic brand, creating a business that provides clients with enhanced scale, capability and market presence.
JLT Towers Re is part of the Jardine Lloyd Thompson Group plc.
Head of Communications & Marketing, JLT Re