JLT Capital Markets Closes First Market Re Weather Catastrophe Bond
12 September 2016
Jardine Lloyd Thompson Capital Markets (JLTCM) Inc., an affiliate of a leading global reinsurance brokerage firm, JLT Re, is pleased to announce another private placement catastrophe bond, Market 2016-5 (Weather), which closed at $30.75 million. The new bond provides single year parametric-based collateralized retrocession coverage for warm-weather winters across Europe. The transaction has one class.
Ed Hochberg, CEO of JLT Re North America and JLTCM, commented: “We continue to service our clients with cutting-edge, innovative, and economical risk transfer solutions. This transaction is a perfect illustration of the overall growth of the capital markets and ILS space. It is particularly noteworthy as it is the first ILS weather trade in nearly two decades.”
“We are enthusiastic for what this means for the ILS market. Market Re 2016-5 (Weather) gives investors access to both unique European risk and yield which are currently not common in the marketplace. We foresee these types of transactions (e.g. parametric, weather-based) becoming more prevalent as the ILS market continues to grow,” remarked Michael Popkin, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets. “We received strong interest and support during the marketing of the transaction, signalling that investors are ready to support bespoke, diversifying risks for the appropriate risk-reward levels.”
“Market Re continues to prove its adaptability and efficiency in the marketplace. We see this transaction as a natural extension of both the ILS market and the Market Re platform,” added Rick Miller, Managing Director and Co-Head of Insurance-Linked Securities at Jardine Lloyd Thompson Capital Markets. “We fully expect to bring more Market Re weather deals to market and grow the segment.”
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Isabella Gaster | T: (+44) 20 7558 3387 | M: (+44) 7920 586 032| Email: Isabella.Gaster@JLTRe.com
Notes to Editors
About JLT Re
JLT Re’s trusted team of 700 colleagues worldwide combines market leading expertise and proprietary analytical tools with the freedom to challenge conventions.
Deep specialist knowledge and extensive experience of both the reinsurance market and clients’ own industries and sectors enables JLT Re to ask smarter questions, innovate and deliver better results tailored to meet client needs.
JLT Re is part of the Jardine Lloyd Thompson Group plc.
About Jardine Lloyd Thompson
Jardine Lloyd Thompson is one of the world’s leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services. JLT’s client proposition is built upon its deep specialist knowledge, client advocacy, tailored advice and service excellence.
JLT is quoted on the London Stock Exchange and owns offices in 40 territories with more than 10,600 employees. Supported by the JLT International Network, it offers risk management and employee benefit solutions in 135 countries.
For further information about JLT, please visit our website www.jlt.com.
Head of Communications & Marketing, JLT Re