Weather Products

Aside from catastrophe related risks, we have a dedicated weather products team which focuses on bilateral products covering a variety of weather risks. These transactions tend to be between $10M and $50M in size and mitigate Business and Contingent Business Interruption. However, there remains appetite for larger products, ranging from $100M to $500M.

Currently, JLTCM works internally with management to develop weather placements to enhance our ability to execute and to ensure that weather deals are being funneled through to select counterparties. JLTCM presented at Technology Insurance Risk Forum (TIRF) on ILS and hedging Weather Risk relating to complex supply chains. We have worked extensively with governments and municipalities, corporates, energy and energy production companies (oil and gas, mining, etc), insurance companies, and the like.

INDICATIVE PRODUCTS:

River Flow

 Cover  Canadian Flood
 Term  [TBD]
 Size  [TBD]
 Trigger  Parametric - Flow Speed
 Trigger Level
Probability  Return Period  Flow Rate (m3/s)   Alberta Industry Flood losses ($bn)  Indicative Pricing*
 1.00%  100.0  1,970  2.0  3.5%
 1.33%  75.0  1,740  1.7  4.2%
 2.00%  50.0  1,630  1.0  5.4%
 2.56%  39.1  1,528  0.8  6.2%
 3.57%  28.0  1,302  0.5  8.0%

 Historical FLow Speed (2013 Alberta Flooding)  1,740 m3/s
Location  map location snapshot of Alberta Flood 2013 river flow speed
Premium   [TBD]

ExCess Rainfall / Excess Moisture

 Cover  Canadian Excess Moisture
 Term  January 1, 2017 - December 31, 2017
 Size  [$50,000,000]
 Trigger  Subsurface moisture levels
 Trigger Level  Subsurface moisture level difference exceeds 50[units] as reported by the following WMO stations: Cranberry, Shilo, and Brandon
Graph showing surface soil moisture
 Location  Brandon, Manitoba
Graph showing surface soil moistureGraph showing surface soil moisture
Graph showing surface soil moistureGraph showing surface soil moisture
 Premium  [TBD]

1USDA Foreign Agriculture Service (http://www.pecad.fas.usda.gov/cropexplorer)

2https://weatherspark.com/averages/28208/Brandon-Manitoba-Canada

Flow Speed Collar

 Cover   Cumulative river flow collar (option)
 Term  August 1, 2017 - September 30, 2018
 Put Strike (ft2/s)  500,000
 Call Strike (ft2/s)
 1,580,000
 Notional (ft2/s)
 250
 Limit  $5,000,000
 Net Premium  [TBD]
Cumulative Daily Mean river flow graph

Notices

This document is for information purposes only and does not constitute an invitation or inducement or an offer or commitment, a solicitation of an offer or commitment, or any advice or recommendation, to conclude any transaction. While information herein has been obtained from sources believed to be reliable, we do not represent it to be accurate or complete. The information contained herein includes illustrations and estimates and involves significant elements of subjective judgment, assumptions and analysis. Any views or opinions (including illustrations, estimates, statements or forecasts) constitute our judgment as of the date indicated and are subject to change without notice. No representation is made as to the accuracy of such illustrations, estimates or projections or that all assumptions relating to them have been considered or stated by Jardine Lloyd Thompson Group or its subsidiaries. 

This information is confidential and proprietary to us and is solely for your use and is not intended for any further dissemination. It may not be reproduced or circulated without our written permission and may not be distributed in any jurisdiction where such distribution is restricted by law or regulation.

Nothing in this document should be construed as legal, tax or investment advice nor interpreted as recommending any investment in any particular product, instrument or security and should not be relied on as the sole source of information upon which to base an investment decision. Unless otherwise agreed in writing, we are not acting as your financial adviser or fiduciary.

Before you enter into any transaction, you should ensure that you fully understand the potential risks and rewards of that transaction and you should consult with such advisers as you deem necessary to assist you in making these determinations. Neither of us should rely on any representation or undertaking inconsistent with the above paragraphs.

Jardine Lloyd Thompson Capital Markets, Inc., and JLT Re North America are wholly owned subsidiaries of Jardine Lloyd Thompson Group.

Jardine Lloyd Thompson Capital Markets Inc. is a member of FINRA and SIPC, and is regulated by FINRA

Jardine Lloyd Thompson Capital Markets Ltd. is a company authorized and regulated in the conduct of its investment business in the U.K. by the FCA and is entered in the FCA’s register. The FCA's website contains a wide range of information of specific relevance to U.K. customers and provides access to the FCA register.  The information on such website is not part of this presentation and no hyperlink is intended by this reference.

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