18 June 2015 Alternative Risk Transfer

JLT closes $70.5m cat bond

Jardine Lloyd Thompson Capital Markets (JLTCM) has closed another catastrophe bond via its Market Re private placement platform.

The $70 .5 million bond, Market Re 2015-2, which represents a larger transaction for the platform, provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedant’s Florida book of business and forms part of the growing private markets for the replacement portion of the Florida Hurricane Cat Fund (FHCF).

Rick Miller, managing director and co-head of insurance-linked securities (ILS) at JLTCM, said: “This latest Market Re transaction demonstrates the ability to do larger transactions via the platform. The cedant was able to diversify its reinsurance panel and achieve a very favourable outcome. Moreover, the cat bond allowed greater participation for the investor community into the cedant’s reinsurance programme.”

Michael Popkin, managing director and co-head of ILS at JLTCM, added: “The Market Re platform made the overall process an easy one for the cedant due to the high degree of standardisation. Market Re shortened the overall timeline for the cedant, which allowed them greater flexibility around risk transfer. Given the close coordination in the program between the traditional and alternative markets, the Market Re platform helped to facilitate an overall successful execution for the client.”

Ed Hochberg, chief executive officer of JLT Re North America, said: “JLT Re’s integrated platform was critical in getting this done for our client. The close collaboration between capital markets and our traditional brokerage greatly enhanced our client’s options, with the cat bond forming part of a much larger solution.”

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