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Twelve Capital completes $18.67m Dodeka XXII cat bond lite


Zurich headquartered ILS and reinsurance fund manager Twelve Capital has completed its latest cat bond lite transaction with an $18.67 million Dodeka XXII issuance.

Twelve CapitalThis is the 23rd 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.

Twelve Capital demonstrates its commitment to sourcing risk in securitised cat bond form for its ILS fund investors with these transactions.

The Dodeka private catastrophe bond (or cat bond lite) series of deals are privately arranged and placed insurance-linked securities (ILS) arrangements that allow Twelve Capital to transform property catastrophe reinsurance and retrocession risks, typically an industry-loss warranty (ILW), into an investable form suited for its liquid cat bond fund strategies.

With this latest Dodeka transaction the series reaches twenty-three transactions in total, now totaling roughly $456 million of risk capital 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 new Dodeka XXII deal has been listed on the Bermuda Stock Exchange (BSX), enhancing the liquidity of the resulting notes.

The issuing vehicle is Artex SAC Limited, which acted in respect of a Segregated Account named Dodeka XXII to issue the $18.67 million of ILS notes.

As with other Dodeka private cat bonds this deal covers a one-year term, with maturity due March 20th 2020.

Details are scarce, as with all Dodeka ILS deals, given the private nature of these cat bonds. 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 U.S. property catastrophe risks.

ILS manager Twelve Capital continues to use the Dodeka series of private catastrophe bonds as an effective way of providing capital markets backed reinsurance coverage to its reinsurance counterparties, while the sourced catastrophe risk is transformed into a securitised note form, offering potential liquidity for its ILS investment funds.

We’ve added this $18.67 million of Dodeka XXII private cat bonds 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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