Jardine Lloyd Thompson Capital Markets Closes a $44.035 Million Catastrophe Bond
08 June 2014
New York: Jardine Lloyd Thompson Capital Markets (JLTCM) Inc., which is part of JLT Towers Re announced it has arranged another private placement catastrophe bond, Oak Leaf 2014-1, which closed at $44.035 million. The new bond provides one year indemnity-based collateralized catastrophe reinsurance coverage for the cedant’s Florida book of business and was accomplished via three separate classes. Oak Leaf 2014-1 closed at the tight end of revised price guidance and saw the Class A upsized.
"As the fourth annual Oak Leaf transaction, both the cedant and the investors are benefitting from a consistent issuance. This is part of the long-term relationship that each is enjoying," said Michael Popkin, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets. "Oak Leaf reflects a trend that we are seeing with our cedants, namely that once a program is established they begin to view capital markets as part of their overall reinsurance program and start to come to market on a regular basis."
"Each Oak Leaf transaction has seen greater interest from investors, which has helped drive the growing size (Oak Leaf 2011-1 closed at $11.95MM). The Oak Leaf 2014-1 deal upsized as the revised price guidance tightened," commented Rick Miller, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets. "We have seen the Oak Leaf program expand each year, which conveys increased comfort of all parties with the transaction."
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 one of the world’s largest suppliers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT Group plc is quoted on the London Stock Exchange and owns offices in 39 territories with some 9,000 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
Head of Communications & Marketing, JLT Re