JLT Capital Markets closes $44m cat bond

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.”