JLT Capital Markets closes $54m cat bond deal

Jardine Lloyd Thompson Capital Markets (JLTCM), a part of reinsurance brokerage firm JLT Re, has announce the completion of another private placement catastrophe bond, Oak Leaf Re 2017-1, which closed at $54.0 million.

The company recently closed a private placement catastrophe bond, Market Re 2017-1, at $65.1 million.

Oak Leaf Re 2017-1 is a one year indemnity-based collateralised catastrophe bond, providing reinsurance coverage for the cedant’s book of business.

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

"We are greatly enthused that Oak Leaf was once again placed with a strong syndicate through an efficient process. Our client has greatly benefited from enduring relationships with the capital markets," commented Rick Miller, managing director and co-head of insurance-linked securities (ILS) at JLTCM.

Michael Popkin, managing director and co-head of ILS at JLTCM, added: "In 2017, we are pleased to close our seventh annual Oak Leaf cat bond, which is one of the longer running cat bonds in the marketplace."

Ed Hochberg, CEO of JLT Re North America and JLTCM, commented: "It is a great pleasure to continually diversify the cedant’s sources of capacity by transacting regularly with the capital markets. We are delighted to work closely with Southern Oak and the investors to bring to market the seventh annual Oak Leaf deal."

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