Dodeka 2024-2

This is the 28th private catastrophe bond transaction in the Dodeka series of transactions issued for Zurich headquartered insurance and reinsurance linked investment manager Twelve Capital.

These Dodeka private cat bond arrangements see the specialist 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 2024-2 issuance features a transformed industry-loss warranty (ILW) arrangement.

The Dodeka transactions are an effective way for Twelve Capital to source new risk in a liquid form to fit its ILS fund portfolio needs, and can also add incremental risk investment opportunities at a time when the primary cat bond market may lack the exact transaction form and structure Twelve Capital seeks.

This latest Dodeka 2024-2 transaction saw $10 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, presumably Twelve Capital’s own.

The transformer and issuing vehicle used is again Artex Axcell Re (Bermuda) Limited, which is the same structure managed by Artex Capital Solutions that has been involved in every Dodeka private cat bond arrangement.

The vehicle acted in respect of a Segregated Account named Dodeka 2024-2 to issue the $10 million of ILS notes, under its ILS Note Program II.

The Dodeka 2024-2 private cat bond term runs through the wind season, with maturity due December 27th 2024. That is the same maturity date as the earlier $15 million 2024-1 issuance.

Twelve Capital’s now 28 Dodeka private cat bond transactions have resulted in over $500 million of risk capital sourced, transformed and issued in catastrophe bond form since 2014.