“Breakthrough” parametric ILS fund is “capacity for profitable growth” – GC&C / Descartes

The launch yesterday of the Lumyna – Twelve Capital Parametric ILS Fund, a dedicated parametric insurance and insurance-linked securities (ILS) investment strategy managed by ILS manager Twelve Capital, is a “breakthrough” in the parametric space and provides “capacity for profitable growth”, senior execs at GC&C and Descartes Underwriting said.

The Lumyna – Twelve Capital Parametric ILS Fund has been established as an open-ended sub-fund under the Lumyna Alternative Funds SICAV in Luxembourg and was seeded with €75 million of committed capital from a leading European institutional investor.

As we explained in our report on the launch yesterday, critical to the strategy, as parametric ILS investment opportunities have never proven abundant enough to launch dedicated ILS fund strategies in the past, are the origination partnerships with Descartes Underwriting and Generali Global Corporate & Commercial.

Generali Global Corporate & Commercial (GC&C) and Descartes Underwriting said of the launch, “This innovative investment fund is a pioneer in the fast-growing ILS market and represents a significant step forward in the GC&C and Descartes partnership.”

The companies said the fund is hoped to further expand the use of parametric solutions in the natural catastrophe insurance space.

“Through this collaboration, GC&C and Descartes strive to enhance underwriting capacity and further grow their leading presence in the parametric segment,” the companies said, highlighting GC&C’s “underwriting excellence, extensive global network, and long-standing reputation” and Descartes’ “unique scientific expertise, risk assessment capabilities, and global track record in parametrics.”

Further commenting, “This initiative demonstrates growing innovation and investment in the ILS market, combining traditional reinsurance mechanisms with advanced technologies, such as AI, to help businesses address the widening protection gap for natural catastrophes.”

Christian Kanu, CEO of Generali Global Corporate & Commercial, stated, “The launch of this parametric ILS fund reflects our commitment to innovation in the insurance sector and our dedication to bridging the global protection gap. This initiative represents a breakthrough in parametric insurance, offering unique opportunities for investors and clients while helping businesses and communities build resilience against natural risks. We are proud to collaborate with our esteemed partners Descartes, Lumyna and Twelve Capital, whose combined strengths have been instrumental in bringing this innovative solution to market.”

Tanguy Touffut, Co-Founder and CEO of Descartes added, “This new arrangement provides additional capacity for profitable growth, in line with our broader alternative capital strategy, and represents another key step in our partnership with Generali Global Corporate & Commercial. We are delighted to join forces with outstanding market leaders such as Twelve Capital and Lumyna in the face of climate change.”