Jardine Lloyd Thompson Capital Markets. has closed a $53.03 million private placement catastrophe bond called Oak Lead Re 2015-1, on behalf of a Florida cedant.
The bond offers one year indemnity-based collateralized reinsurance coverage in the state, according to a press release issued Friday.
Oak Leaf Re 2015-15 is the fifth, and largest, cat bond for this cedant. It is divided into three tranches, the largest being a $47 million multi-section class covering severity and frequency and a $50 million total limit of coverage, according to a source familiar with the matter. The smaller two classes are specifically geared towards the cedant’s Florida programs, with one providing reinstatement premium protection.
All of the bonds are structured as zero coupons and mature next June.
In the press release, managing director and co-head of insurance-linked securities Michael Popkin noted that, “Each year, we are seeing the transaction size grow. This reflects the increased interest of both the cedant and the investors to expand the overall relationship.”