Market Re 2016-15 awarded catastrophe risk award by environmental finance
03 July 2017
The weather Catastrophe bond - Market Re 2016-5, has been awarded the Catastrophe Risk award by publication, Environmental Finance. The bond was placed by Jardine Lloyd Thompson Capital Markets, Inc. (JLTCM) in September of 2016, and marked the first temperature-related weather cat bond since 1999.
Closing at $30.75 million, the bond provided single year parametric-based collateralized retrocession coverage against warm winter temperatures as recorded at five locations around Europe. The bond is one of several that have been issued through JLTCM’s private placement cat bond platform, which allows cedents to issue cat bonds at considerably lower costs than traditional 144a deals.
Michael Popkin, Managing Director of ILS at JLTCM, announced, “This award is evidence that investors and cedents are becoming increasingly comfortable with weather risk transfer products. Additionally, these types of transactions allow both investors and sponsors to express views about global warming and climate change via a pure play, market-based, financial instrument.”
“As the first movement in the weather risk transfer space in over a decade, we are excited to have been involved in such a novel deal and look forward to similar opportunities in the future,” said Rick Miller, Managing Director of ILS at JLTCM.
Edward Hochberg, CEO of JLTCM and JLT Re North America, added, “We are delighted to continue working with the dedicated Insurance-Linked Security (ILS) fund manager community to deliver this innovative product and competitive platform to our clients.
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Notes to editors:
About Jardine Lloyd Thompson Capital Markets, Inc.
Jardine Lloyd Thompson Capital Markets, Inc. is a wholly owned subsidiary of Jardine Lloyd Thompson Group and is part of JLT Re. It 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 Re
JLT Re’s trusted team of 700 colleagues worldwide combines market leading expertise and proprietary analytical tools with the freedom to challenge conventions.
Deep specialist knowledge and extensive experience of both the reinsurance market and clients’ own industries and sectors enables JLT Re to ask smarter questions, innovate and deliver better results tailored to meet client needs.
JLT Re is part of the Jardine Lloyd Thompson Group plc.
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 40 territories with more than 10,600 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
For further information about JLT, please visit our website www.jlt.com