Dodeka XIV – Full details:
This $33.583 million Dodeka XIV private catastrophe bond transaction is the fifteenth in the Dodeka series from ILS investment fund manager Twelve Capital, as the firm continues to show its commitment to sourcing risk in securitised cat bond form for its ILS fund investors.
Dodeka XIV has been issued using the Artex SAC Limited ILS Note Program II vehicle, with Dodeka XIV representing a single segregated account of the issuance vehicle. The risks included in the account have been transformed into private ILS form, resulting in the issuance of $33.583 million of tradable principal-at-risk ILS notes.
The $33.583 million of Dodeka XIV insurance-linked notes are due on the 8th January 2019, so will represent a one-year renewal reinsurance or retrocession contract.
The $33.583 million of Dodeka XIV notes have been admitted to the BSX as Section V Insurance Related Securities and the notes have been placed with qualified ILS investors.
As with all of the Dodeka private ILS transactions, we assume that the Dodeka XIV cat bond lite features a transformed industry-loss warranty (ILW) contract, using a PCS industry loss trigger, covering U.S. natural catastrophe risks. Twelve Capital confirmed that in this case the transaction covers U.S. all natural perils second event risk, which it sees as a diversifier for its portfolios.
The Dodeka private cat bonds are an efficient way for Twelve Capital to offer capital markets backed reinsurance coverage to cedents while souring cat bond notes for its investment funds.