Jardine Lloyd Thompson Capital Markets (JLTCM), an affiliate of reinsurance brokerage firm JLT Re (North America), has completed another private placement catastrophe bond, Oak Leaf Re 2018-1, which closed at $45.26 million.
Oak Leaf Re 2018-1, which was sponsored by Southern Oak Insurance Company, is an Ultimate Net Loss (UNL) indemnity-based collateralised catastrophe bond.
The catastrophe bond will provide reinsurance coverage for the cedant’s book of business, which covers named windstorms.
The transaction consisted of four classes of notes, including a multi-section tranche covering severity/frequency and a tranche providing reinstatement premium protection (RPP).
The bond has been issued with a one-year maturity, and can be extended up to 24 months to allow for development of any losses.
Michael Popkin, Managing Director and Co-Head of Insurance-Linked Securities (ILS) at JLTCM, said: “The Oak Leaf Re series continues to be very successful and provides significant value to all parties.”
Rick Miller, Managing Director and Co-Head of ILS at JLTCM, also commented: “The Oak Leaf Re cat bond, the eighth one, remains one of a handful of consistent issuers.”
Ed Hochberg, Chief Executive Officer (CEO) of JLT Re (North America) and JLTCM, added: “Our clients and brokers see the capital markets as an integral part of reinsurance programs. JLT Re’s integrated platform allows for smooth execution for our clients.”
