JLTCM closes $53m cat bond

Jardine Lloyd Thompson Capital Markets (JLTCM) has closed catastrophe bond Oak Leaf Re 2015-1, which closed at $53 million.

The fifth Oak Leaf cat bond is the largest to date and provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedant’s Florida book of business.

The transaction included three classes, including a multi-section class covering severity and frequency as well as an RPP (reinstatement premium protection) one.

Michael Popkin, managing director and co-head of insurance-linked securities (ILS) at JLTCM, said: “We are pleased to conclude our fifth Oak Leaf deal. Each year, we are seeing the transaction size grow. This reflects the increased interest of both the cedant and the investors to expand the overall relationship.”

Rick Miller, managing director and co-head of ILS at JLTCM, said: “As a consistent issuer, Oak Leaf is enjoying the benefits of long term relationships. For example, we saw the deal upsize during the process. The close coordination between the capital markets group, the traditional brokers, and incumbent investors have continued to provide and created an overall efficient process.

Ed Hochberg, chief executive officer of JLT Re North America, added: “Our clients are deriving significant value from the capital markets. They are benefiting in terms of panel diversity as well as an increased amount of capacity at attractive pricing.

“Overall, having each of the different sources of capacity complement one another helps us to optimise across our clients’ programmes. As an integrated platform encompassing brokerage, capital markets, and analytics, we are well-positioned to service our clients in this rapidly changing reinsurance landscape.”