Dodeka 2024-1

This is the 27th private catastrophe bond transaction in the Dodeka series of transactions issued for Zurich headquartered insurance and reinsurance linked investment manager Twelve Capital. It is also the first in the series to be issued since July 2019.

These Dodeka private cat bond arrangements see the ILS fund manager sourcing risk in reinsurance or retrocession form and then arranging the transformation of the risk into a private cat bond, to provide investable notes with secondary liquidity for its cat bond funds.

We understand that, like most Dodeka cat bond deals, this new 2024-1 issuance features a transformed industry-loss warranty (ILW) arrangement.

This 27th Dodeka private cat bond transaction has been issued around the mid-year renewal season and its risk period runs through till December 2024, with maturity scheduled for the 27th, suggesting it could be a U.S. wind reinsurance or retrocession cover for the current season.

This latest Dodeka 2024-1 transaction saw $15 million of notes issued, sold to qualified investors in a private placement and listed on the Bermuda Stock Exchange (BSX), further enhancing the liquidity of the resulting notes for funds or specific investment mandates.

The transformer and issuing vehicle used is as usual one managed by Artex, in this case Artex Axcell Re (Bermuda) Limited, which is the same structure (although renamed) that has been involved in every Dodeka private cat bond arrangement to-date.

The vehicle acted in respect of a Segregated Account named Dodeka 2024-1 to issue the $15 million of ILS notes, under its ILS Note Program II.

The Dodeka 2024-1 private cat bond features term running through the wind season, with maturity due December 27th 2024.

Added together, Twelve Capital’s now 27 Dodeka private cat bond transactions have resulted in over $500 million of risk capital sourced, transformed and issued in catastrophe bond form since 2014.