Twelve Capital invests in €40m insurance private debt transaction

by Artemis on January 13, 2016

Insurance and reinsurance linked investment manager Twelve Capital continues to provide investors with access to insurance-linked returns across the balance-sheet, announcing a new private debt investment today.

Zurich and London-based Twelve Capital offers a range of strategies through which investors can access the returns of the insurance and reinsurance market, from catastrophe bonds, to private ILS and collateralized reinsurance, insurance private debt and private equity.

Today the firm has announced its participation as an anchor investors in a €40 million private debt transaction with Italian insurance firm Eurovita Assicurazioni S.p.A., a deal that provided the insurer with an efficient source of Solvency II compliant capital for a ten-year term.

On the 10th December 2015, Eurovita Assicurazioni S.p.A. placed EUR 40m in bonds, with ten-year terms maturing in 2025, with insurance-linked investment manager Twelve Capital AG and a number of other counterparties.

John Butler, Managing Partner and Head of Sourcing for Twelve Capital AG, commented; “We are pleased that our debt product is meeting the capital needs of high quality mid-sized insurers in our target markets of both Europe and the US. In addition, we are pleased to have been introduced to Eurovita via EQUITA who, along with many other major intermediaries, work closely with us in distributing our debt products.”

Daniel Grieger, Managing Partner and Head of Private Debt for Twelve Capital AG, added; “This transaction is a sterling example of what Twelve Capital is capable of providing for insurance companies in their quest to strengthen and to create a more efficient capital base. There is substantial potential in the debt market for small- and mid-cap insurers in our view and we are proud that Eurovita has chosen us as their partner for this transaction.”

The proceeds from the sale of the notes will be used to enhance both the strength and the capital efficiency of Eurovita, which is majority owned by J.C. Flowers & Co., providing a source of capital that is compatible with its Solvency II regulatory needs. The transaction was arranged by EQUITA SIM SpA.

Twelve Capital operates both an insurance-linked securities (ILS) investing business and an insurance private debt investments business, as well as a strategy which blends the two and also a new private equity offering. This provides insurance linked investors with multiple ways to access the returns of the re/insurance market, giving them access to a broader value chain than ILS alone.

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