Twelve Capital takes 3% stake in retirement focused Just Group

Zurich headquartered insurance and reinsurance linked specialist investment fund manager Twelve Capital has taken a just over 3% equity stake in UK retirement income and insurance product provider Just Group plc.

Stock exchange filings show that Twelve Capital’s stake in Just Group passed the 3% of voting rights mark, meaning the investment manager needed to report its holdings in the firm.

Whether the equity stake was taken in one chunk, or slowly built up over time, is harder to tell.

While Twelve Capital is an experienced investment manager in the insurance-linked securities (ILS), catastrophe bond and collateralised reinsurance space, the firm also manages investment allocations across insurance related equity and debt as well.

This involves both public and private equity investments, while the insurance debt strategy is private, with funds offered to investors as complementary offerings to the ILS strategies the manager invests for as well.

We’ve written before about Twelve Capital’s vision of enabling investments across the insurance and reinsurance balance-sheet, which sees it as the only investment manager that offers direct insurance and reinsurance risk-linked returns through ILS and cat bond funds, as well as re/insurance private debt and equity linked returns as well.

Insurance and reinsurance investing has proven itself a stable source of return for investors, across all routes to accessing its returns.

While ILS and catastrophe bonds specifically offer returns that are directly linked to the underwritten risk premium, so being largely uncorrelated with global financial market movements, the debt and equity strategies that Twelve Capital offers are clearly not as diversifying.

But that aside, the insurance and reinsurance sector is an attractive area for many investors and major institutions are big backers of the companies in it.

Hence, Twelve Capital can offer a broad range of investment opportunities, including its “best ideas” strategy that invests across all three core areas of debt, equity and ILS, to major investors who may just get a taste for another of the strategies it manages as well.

This is certainly expanding awareness of ILS as an asset class too, as those investors in Twelve’s debt and equity strategies will likely gain a greater awareness of the ILS asset class than they might have otherwise.

With over $4 billion of assets under management in total, just over half of that is in Twelve Capital’s debt and equity strategies, with the remainder in ILS and cat bond funds or mandates.

The allocation to Just Group’s equity by Twelve Capital may have taken place (or been increased in size) during a recent placement of shares the group has made, as it looked to raise fresh capital for its Just Retirement and Partnership Assurance businesses.

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