Twelve Capital secures three private debt investments

by Artemis on January 12, 2018

ILS, insurance and reinsurance linked investment manager Twelve Capital has acted as the sole investor across three bilateral insurance private debt transactions, taking $67 million of notes for its own portfolios from deals with Federated National, ACCC Holding Corporation and a small U.S. commercial insurer.

The private debt transaction with Federated National Holding Company saw the property & casualty insurer placing $25 million of ten-year Senior Unsecured Floating Rate Notes. Twelve Capital acted as the sole investor in the debt offering, on behalf of its funds and investors, which Federated National is set to use to finance part of its buy-out of Monarch Delaware Holdings LLC.

Federated National also issued a $20 million five-year tranche of debt that was placed with another investor.

The second private debt deal saw Twelve Capital taking a full $27 million issuance of ten-year Senior Unsecured Floating Rate Notes from a U.S. commercial insurer of small to medium sized businesses.

This issuance is to be used by the commercial insurer to repay a $17 million note placed with Twelve Capital on 30th March 2017, while the additional $10 million is to be used to increase the company’s statutory capital.

Finally, Twelve Capital was also the sole investor in a $15 million placement of ten-year Senior Unsecured Floating Rate Notes from ACCC Holding Corporation, the proceeds of which are to be used to increase the insurers statutory capital and for strategic development of the company.

Twelve Capital invests across the risk and return spectrum in insurance and reinsurance markets, with assets under management ranging from catastrophe bonds, other insurance-linked securities (ILS) and collateralized reinsurance, to private insurance debt, and also insurance or reinsurance equities.

Currently Twelve Capital has approximately $4.5 billion in assets under management, $1.6 billion of which are in ILS, catastrophe bonds and collateralized reinsurance, while the larger part is invested in insurance private debt and equities.

Daniel Grieger, Head of Private Debt at Twelve Capital, commented on the new private debt deals, “Twelve Capital’s ability to invest across the balance sheet of insurance companies enables us to support insurance companies with their strategic development in a wide range of situations. We are proud that ACCC Insurance, Federated National Insurance and Commercial Insurance have chosen us as their preferred partner to raise capital.”

Ulrich Beck, Executive Director, leading Twelve Capital’s sourcing of Private Debt transactions in Europe & North America, added, “Twelve Capital Group’s private debt offering supports insurance companies in Europe and North America in their quest to grow, strengthen and establish a strong & efficient capital base. We are pleased to have been introduced to the aforementioned insurance companies by intermediaries including Aon Securities Inc. and Dowling & Hales, who, along with many other major intermediaries, work closely with us around our Private Debt investments.”

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