Swiss Re Insurance-Linked Fund Management

Original Risk: A Society for Change Agents

Twelve Capital completes new private cat bond, an $11.36m Dodeka XXIV


ILS fund manager Twelve Capital continues to demonstrate its commitment to sourcing new risk in catastrophe bond form for its growing investment fund strategies, with a new $11.36 million Dodeka XXIV transaction coming to market.

Twelve Capital logoThe Zurich headquartered insurance-linked securities (ILS) and reinsurance linked investment manager has now issued an impressive twenty six private catastrophe bond transactions in the Dodeka series of deals.

These arrangements see ILS fund manager Twelve Capital sourcing risk in reinsurance or retrocession form, typically transacting it as an industry loss warranty (ILW) and then arranging the transformation of the risk into a private cat bond, to provide investable notes with secondary liquidity for its cat bond funds.

Twelve Capital recently revealed that it has now raised almost $400 million of fresh capital for its flagship catastrophe bond fund strategy in just 18 months, as it shifted its strategy to focus on the growth of its own-brand ILS and cat bond funds.

The Dodeka transactions are a helpful way for the ILS fund manager to source new risk to fit its portfolio in liquid form, as well as a way to add additional risk at times when the main cat bond market may not be delivering sufficient fresh deal-flow.

This 26th Dodeka private cat bond transaction has been issued around the mid-year renewal season and its risk period runs only through till the end of the year, suggesting it could be a U.S. wind reinsurance or retrocession cover.

Privately arranged and placed, these insurance-linked securities (ILS) deals under the Dodeka moniker enable Twelve Capital to transform property catastrophe reinsurance and retrocession risks, typically from an industry-loss warranty (ILW) into an investable format suited to its more liquid cat bond fund mandates.

This latest Dodeka XXIV transaction saw $11.36 million of notes issued, sold to investors and listed on the Bermuda Stock Exchange (BSX), further enhancing the liquidity of the resulting notes for funds or specific investment mandates.

The transformer and issuing vehicle used is as usual the Artex SAC Limited vehicle, which is domiciled in Bermuda and managed by Artex and has been involved in every Dodeka private cat bond arrangement to-date.

The vehicle acted in respect of a Segregated Account named Dodeka XXIV to issue the $11.36 million of ILS notes.

The Dodeka XXIV private cat bond features a roughly six month coverage term, with maturity of the notes due December 27th 2019.

Added together, Twelve Capital’s Dodeka private cat bond transactions to-date amount to more than $500 million of risk capital sourced, transformed and issued in catastrophe bond form since 2014. Details on every Dodeka private cat bond transaction can be found in the Artemis Catastrophe Bond Deal Directory.

These transactions demonstrate ILS fund manager Twelve Capital’s commitment to sourcing reinsurance risks in securitised cat bond form to satisfy its ILS fund investors.

We’ve added this $11.36 million Dodeka XXIV private cat bond transaction to the Artemis Deal Directory and what information we have will be included in our catastrophe bond and ILS market statistics.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.