Jardine Lloyd Thompson Capital Markets (JLTCM), which is part of JLT Towers Re has arranged another private placement catastrophe bond, Oak Leaf 2014-1, which closed at $44.035 million.
The new bond provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedant’s Florida book of business and was accomplished via three separate classes. 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, commented: “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 programme 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 JLTCM, said: “Each Oak Leaf transaction has seen greater interest from investors, which has helped drive the growing size. We have seen the Oak Leaf program expand each year, which conveys increased comfort of all parties with the transaction.”
