Jardine Lloyd Thompson Capital Markets (JLTCM), part of JLT Re, has arranged another Market Re private placement catastrophe bond, Market RE 2015-2, which closed at $70.509 million.
The new bond 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 at JLTCM, commented: “This latest Market Re transaction demonstrates the ability to do larger transactions via the platform.”
He added: “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 insurance-linked securities at JLTCM, said: “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.”
