Rest Super cat bond allocation via Twelve Securis grows ~85% to US $242m in last year

Rest Super, one of the Australian superannuation funds that has around 2 million members and $100 billion in funds under management, has grown its insurance-linked securities (ILS) allocation to catastrophe bonds through ILS manager Twelve Securis over the last year to around US $242 million.

Rest Super began allocating to the ILS asset class through natural catastrophe exposed insurance-linked securities a few years ago.

As we reported in September 2024, Rest Super’s ILS investments were understood to be with specialist investment manager Twelve Securis, with the allocations to a catastrophe bond strategy under its management.

As of the mid-point of 2024, Rest Super was understood to have allocated around AU $200 million to cat bonds by that time, which translated to roughly US $133 million at June 30th 2024.

Data seen by Artemis for the Rest Super portfolio disclosure as of June 30th 2025 now puts the Twelve Securis cat bond fund investments at just slightly under AU $370 million.

As of June 30th, that would have converted to roughly US $242 million.

It represents an approximately 85% increase in the reported value of Rest Super’s cat bond allocation with Twelve Securis in just one year.

Clearly that means additional capital has been invested into the strategy over the last year, as Rest Super demonstrates its appetite to access reinsurance-linked returns persists.

Superannuation and pension funds, in Australia and elsewhere, have been drawn to the cat bond market by strong returns, as well as the relative liquidity of cat bond strategies, compared to private reinsurance in recent years.

Rest Super is one of a growing group of Australian institutional investors active in the ILS asset class.

Clearly this investor continues to see the asset class as an attractive source of diversified returns, resulting in the steady growth of the allocation.

Rest Super has spread its allocation to the Twelve Securis cat bond fund strategy from now eight different sleeves of its superannuation and pension fund investment options.

In both cases, the cat bond investments are split across super and pension growth, balanced, capital stable and high-growth options that Rest Super clients invest their savings into.

The majority of assets are within the superannuation options (~AU $332m) and the vast majority in the super growth fund (~AU $228m).

But the way Rest Super has spread elements of the cat bond investments across all of the main retirement options it offers clients, shows that there is the potential for more growth of its ILS allocation over-time.

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