An affiliate of global brokerage Jardine Lloyd Thompson (JLT) has completed three private placement catastrophe bonds totalling US$157 million in just five days.
JLT Capital Markets closed Market Re 2016-2 at $78.7 million on June 10, Market 2016-4 at $25 million on June 14 and Oak Leaf Re 2016-1 at $53.57 million on the same day.
Each of the three new cat bonds provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedent’s Florida book of business.
The Market Re 2016-2 transaction has one class and was placed with the private market alongside the cedent’s Florida hurricane catastrophe fund coverage.
Meanwhile, the Market 2016-4 transaction has one class and will act as a second limit cover.
“We are glad to see repeat issuance through our Market Re platform. It gives our clients the ability to access capital markets, which is especially important as the capital markets’ role has become a critical component of a comprehensive risk transfer,” said Rick Miller, managing director and co-head of insurance-linked securities at JLT Capital Markets.
The Oak Leaf Re 2016-1 transaction consisted of four classes, including a multi-section tranche covering severity and frequency as well as a tranche for reinstatement premium protection.
“As a perennial issuer, Oak Leaf benefits from long term relationships. For example, we saw strong support from incumbent investors during the process,” Miller said.
“Our clients are definitely seeing the capital markets as an integral part of their reinsurance placements,” added JLT Capital Markets CEO Ed Hochberg.
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