Dodeka XV

This $9.269 million Dodeka XV private catastrophe bond transaction is the seventeenth such private transaction 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.

Including this new seventeenth Dodeka transaction, ILS manager Twelve Capital has now securitized over $330 million of reinsurance risk through the Dodeka series of private cat bonds, or cat bond lites.

Like previous deals, this Dodeka XV transaction has been issued through the Artex SAC Limited vehicle, managed by ILS facilitator Artex, with Dodeka XV representing a single segregated account of the issuance vehicle.

The underlying risks featured in the segregated account have been transformed into private ILS or cat bond form, resulting in the issuance of $9.269 million of tradable and listed principal-at-risk ILS notes.

The $9.269 million of Dodeka XV insurance-linked notes have a due date of the 27th December 2018, so appear to represent a reinsurance or retrocession contract designed to provide coverage across the duration of the U.S. hurricane season, we assume.

Dodeka XV’s $9.269 million of notes have been admitted to the Bermuda Stock Exchange (BSX) as Section V Insurance Related Securities and the notes have been placed with qualified ILS investors, which will be certain funds or accounts managed by Twelve Capital.

As is typical of the Dodeka series of private ILS deals, we assume that this Dodeka XV cat bond lite features a transformed industry-loss warranty (ILW) contract, using a PCS industry loss trigger and covering U.S. natural catastrophe risks (likely U.S. wind given the risk period, although we cannot be certain of this).

Update October 2019:

The Dodeka XV private cat bond from Twelve Capital had its maturity date extended to October 31st 2019, presumably to allow for development of any losses and in case of attachment occurring.