Dodeka XXI

This is the 24th private catastrophe bond deal in the Dodeka series of issues from ILS investment fund manager Twelve Capital, who utilises these arrangements to securitise reinsurance or retrocessional risks into cat bond form for its more liquid ILS funds or private investor ILS mandates.

This deal was completed at roughly the same time as the $18.67 million Dodeka XXII issuance.

In total Twelve Capital has now issued almost $474 million of risk capital that has been securitized and issued through the program since its inception in January 2014. Details on every Dodeka private cat bond can be found in the Artemis Deal Directory.

This latest transaction saw the $17.96 million Dodeka XXI transaction listed on the Bermuda Stock Exchange (BSX), enhancing the liquidity of the resulting notes for investors.

The issuing vehicle is, as ever the Artex SAC Limited vehicle domiciled in Bermuda and managed by Artex. The vehicle acted in respect of a Segregated Account named Dodeka XXI to issue the $17.96 million of ILS notes.

As with other Dodeka private cat bonds this deal covers a one-year term, with maturity due March 18th 2020.

Details are scarce, as with all of these Dodeka ILS deals given their privately placed nature.

But we assume that they have likely featured a transformed industry-loss warranty (ILW) providing reinsurance or retrocession to an unamed ceding company, most likely securitizing a range of global, non-marine property catastrophe risks.

Update, December 2019:

The Dodeka XXI private cat bond transaction was exposed to potential losses from global catastrophe events including hurricane Dorian, typhoon Faxai and Typhoon Hagibis.

As a result, a loss reserve was established at roughly 8% of the limit, which equates to just under $1.44 million and wrote down the value of the cat bond investment to approximately $16.53 million.

Update 2:

The notes were subsequently extended for maturity to March 30th 2021.