Jardine Lloyd Thompson Capital Markets has closed its second Market Re private placement cat bond at $31.825 million.
The new bond, Market Re 2014 -2, provides one year indemnity-based collateralised catastrophe reinsurance coverage for the cedant’s Florida book of business and was accomplished via two separate classes.
“Since launching the Market Re platform in May, we have seen considerable interest from both cedants and investors,” says Michael Popkin, managing director and co-head of insurance-linked securities at JLTCM. “By increasing the efficiency of the overall issuance process, we have opened the market to new cedants to begin to engage with the capital markets.”
Rick Miller, managing director and co-head of insurance-linked securities at JLTCM, says: “Market Re is a flexible platform that allows for highly customized solutions for our clients. We expect to see the velocity of Market Re private cat bond transactions continue to increase.”
Ed Hochberg, CEO of JLTCM, concludes: “We are very excited to see that JLTCM continues to develop innovative structures which further reduce frictional expenses. These developments provide many more cedants with capacity from the capital markets that would otherwise be inaccessible.”
JLTCM, capital markets, cat bond, Market Re, reinsurance, ILS