Dodeka V-2016

The Dodeka V-2016 private cat bond transaction was issued using the Artex SAC Limited ILS Note Program II segregated accounts company vehicle. Dodeka V-2016 represents a single segregated account of the Artex SAC ILS note program, and it has been securitised into private cat bond form resulting in the issuance of $11.49m of notes.

The $11.49m of insurance-linked notes have a due date of the 5th January 2017, so likely reflect a seasonal reinsurance or retrocession contract covering the Atlantic hurricane season through 2016.

It’s assumed that the transaction is for a transformed industry-loss warranty (ILW) contract, using a PCS industry loss trigger and so covering U.S. natural catastrophe perils, as has been typical of Twelve’s Dodeka private cat bonds to date. We can’t 100% confirm this though.

An ILW transaction provides a simpler structure, in terms of features, making them ripe for transformation into private cat bond notes and perhaps the most cost-effective way to transform risk into a liquid securitised form, for ILS fund managers such as Twelve Capital.

The $11.49m of Dodeka V-2016 notes have been listed on the Bermuda Stock Exchange, enhancing the liquidity of the notes which offers Twelve Capital improved options and transparency to trade the notes on the secondary cat bond market should it choose to.