JLT Capital Markets closes $53.6m cat bond

Jardine Lloyd Thompson Capital Markets (JLTCM), part of JLT Re, has completed its second private placement catastrophe bond in two days.

Oak Leaf Re 2016-1, which closed at $53.6 million, provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedant’s Florida book of business.

The transaction consisted of four classes, including a multi-section tranche covering severity and frequency as well as a tranche for reinstatement premium protection (RPP).

“We are pleased to return to the market with our sixth Oak Leaf deal,” said Michael Popkin, managing director and co-head of insurance-linked securities (ILS) at JLTCM.

“The cedant and the investors continue to work closely together, and we saw various classes price at the tight end of the range.”

Rich Miller, managing director and co-head of ILS at JLTC, added: “As a perennial issuer, Oak Leaf benefits from long term relationships. For example, we saw strong support from incumbent investors during the process.

“Each year the process becomes increasingly efficient, allowing the participants to benefit from cost savings.”

Ed Hochberg, chief executive officer of JLT Re North America and JLTCM, said: “Our clients are definitely seeing the capital markets as an integral part of their reinsurance placements.
“Similarly, as further evidence of the value proposition of JLT’s integrated platform, we are witnessing the expansion of the relationships between cedant and ILS investors moving beyond just the cat bond into other layers."