Twelve Capital in sixteenth Dodeka private cat bond, a $23.567m Dodeka XIII


Zurich headquartered insurance and reinsurance linked investment fund manager Twelve Capital Management has completed its sixteenth private catastrophe bond transaction in the Dodeka series, with a $23.567 million Dodeka XIII deal which was listed on the stock exchange in Bermuda yesterday.

ILS fund manager Twelve Capital uses these privately arranged and securitized deals to transform property catastrophe reinsurance or retrocession risks into an investable form that suits its liquid cat bond focused fund or investor mandates.

Following this sixteenth transaction, Twelve Capital has now securitized almost $323 million of reinsurance risks through the Dodeka series of private cat bonds, or cat bond lites.

This Dodeka XIII has been issued using the Artex SAC Limited ILS Note Program II vehicle, managed by ILS facilitator Artex, with Dodeka XIII representing a single segregated account of the issuance vehicle.

The risks included in the segregated account have been transformed into private ILS or cat bond form, resulting in the issuance of $23.567 million of tradable principal-at-risk ILS notes.

The $23.567 million of Dodeka XIII insurance-linked notes have a due date of the 9th May 2019, so will represent a one-year reinsurance or retrocession contract we assume.

The $23.567 million of Dodeka XIII notes were admitted to the BSX as Section V Insurance Related Securities yesterday and the notes have been placed with qualified ILS investors, which will be certain funds or accounts managed by Twelve Capital.

As with all of the previous fifteen Dodeka private ILS transactions, we assume that this Dodeka XIII cat bond lite features a transformed industry-loss warranty (ILW) contract, using a PCS industry loss trigger and covering U.S. natural catastrophe risks.

The Dodeka private cat bond series provides ILS manager Twelve Capital with an efficient way to offer capital markets backed reinsurance coverage to reinsurance and retrocession counterparties, while sourcing risk in cat bond notes with potential liquidity for its investment funds.

We’ve added this $23.567 million Dodeka XIII private cat bond to the Artemis Deal Directory and what information we have will be included in all of our catastrophe bond and ILS market statistics.

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