Jardine Lloyd Thompson Capital Markets (JLTCM) Inc., part of the JLT Re global reinsurance brokerage, has announced the completion of the latest privately placed catastrophe bond it has facilitated with a $10m Market Re Ltd. (Series 2015-1) Florida focused transaction.
The JLTCM team continues to be an active facilitator and arranger of smaller privately placed cat bonds, or cat bond lites, with now eight transactions outstanding in the market that the team has worked on.
The Market Re platform, launched in 2014, is JLTCM’s own issuance vehicle that seeks to make accessing the capital markets cheaper for smaller deals and sponsors, with this 2015-1 transaction being the fourth issuance to use it to date.
This Market Re 2015-1 cat bond provides the sponsoring cedant, which remains unnamed, with a one year source of fully-collateralized catastrophe reinsurance protection for its Florida book of business. The cat bond provides reinsurance coverage specifically for Florida named storms, with its protection afforded on an indemnity trigger basis.
“At JLTCM, we remain focused on keeping down the costs of doing transactions, which allow us to efficiently execute deals of different sizes,” Rick Miller, Managing Director and Co-Head of Insurance-Linked Securities at JLTCM, said. “For investors, Market Re creates a tradable instrument that can provide the opportunity for liquidity.”
“As the Market Re platform broadens, we are seeing its versatility. We continue to work closely with our partners to simplify the process and reduce the frictional costs of bringing cedants to market,” added Michael Popkin, Managing Director and Co-Head of Insurance-Linked Securities at JLTCM. “As we lower the barrier for cedants, we are finding attractive risks for the dedicated ILS investors.”
For JLTCM the success they’ve had in the smaller cat bond issue space means they have been responsible for bringing a number of new companies into the market, sponsors who may one day seek to issue larger bond or 144A cat bonds.
Michael Popkin told Artemis; “We see the continued growth of private placement cat bonds and remain focused on bringing new cedants to market.”
As ever, details on the privately placed catastrophe bonds can be more limited, meaning we do not always have full disclosure of the underlying perils, structure and risk factors. However we have added the Market Re Ltd. (Series 2015-1) cat bond to our Deal Directory for completeness.