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Twelve Capital adds $17.96m Dodeka XXI private cat bond


Another private catastrophe bond arrangement has been completed by Zurich headquartered ILS and reinsurance fund manager Twelve Capital, with a $17.96 million Dodeka XXI transaction.

Twelve CapitalThis deal was completed at roughly the same time as the $18.67 million Dodeka XXII issuance that we covered earlier this week.

Including the newly revealed Dodeka XXI cat bond lite, Twelve Capital has now brought 24 of these transactions to market under the Dodeka moniker, which together amount to roughly $474 million.

The Dodeka private catastrophe bond (or cat bond lite) series of deals demonstrate Twelve Capital’s commitment to sourcing reinsurance risks in securitised cat bond form for its ILS fund investors.

They are privately arranged and placed insurance-linked securities (ILS), providing the ability to transform property catastrophe reinsurance and retrocession risks, typically an industry-loss warranty (ILW), into an investable form suited to more liquid cat bond fund mandates.

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.

We’ve added this $17.96 million Dodeka XXI transaction to the Artemis Deal Directory and what information we have will be included in our catastrophe bond and ILS market statistics.

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