Jardine Lloyd Thompson Capital Markets (JLTCM), part of JLT Towers Re, has closed a $44 million private placement catastrophe bond.
Oak Leaf 2014-1 represents the fourth annual Oak Leaf private cat bond arranged and placed for the unnamed cedant’s book of Florida-based business.
The new bond provides one year indemnity-based collateralised catastrophe reinsurance coverage.
Oak Leaf 2014-1 closed at the tight end of revised price guidance and saw the Class A upsized.
Michael Popkin, managing director and co-head of insurance-linked securities at JLTCM, said: “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. 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.”
Rick Miller, managing director and co-head of insurance-linked securities at Jardine Lloyd Thompson Capital Markets, said: “Each Oak Leaf transaction has seen greater interest from investors, which has helped drive the growing size (Oak Leaf 2011-1 closed at $11.95 million). The Oak Leaf 2014-1 deal upsized as the revised price guidance tightened. We have seen the Oak Leaf programme expand each year, which conveys increased comfort of all parties with the transaction.”
JLT Capital Markets, JLT Towers Re, Cat Bond, Oak Leaf 2014-1, North America