Dodeka XVIII – Full details:
This $25.181 million Dodeka XVIII private catastrophe bond transaction is the 20th private cat bond ILS deal in the Dodeka series from ILS investment fund manager Twelve Capital, as the company persists in demonstrating its commitment to sourcing risk in securitised cat bond form for its ILS fund investors.
Including this new Dodeka private ILS transaction, Twelve Capital has now securitized roughly $437 million of reinsurance risk through this series of private cat bonds, or cat bond lites, since the first Dodeka in January 2014.
As with other recent Dodeka transactions, the Dodeka XVIII private cat bond has been issued using Artex’s SAC Limited vehicle, managed by ILS facilitator Artex, with Dodeka XVIII representing a single segregated account of this issuing vehicle.
The underlying catastrophic peril exposure in the segregated account has been transformed into private ILS or cat bond form, resulting in the issuance of the $25.181 million of tradable and listed principal-at-risk ILS notes.
This $25.181 million Dodeka XVIII issuance, which saw the issuing vehicle, Artex SAC Limited, acting in respect of a Segregated Account named Dodeka XVIII to issue the notes. The private cat bond covers a one-year term, with maturity due January 9th 2020.
Dodeka XVIII’s $25.181 million of notes were admitted to the Bermuda Stock Exchange (BSX) as Section V Insurance Related Securities after the notes were sold to qualified ILS investors, which will be funds or managed accounts operated by Twelve Capital.
As with all of the Dodeka series of private ILS deals, we assume that this Dodeka XVIII cat bond lite features a transformed industry-loss warranty (ILW) contract, using a PCS industry loss trigger and covering U.S. natural catastrophe risks (which is most likely U.S. wind because of the risk period).