Twelve Securis sets up new distribution partnerships in Taiwan, as it builds-out Asia strategy

Twelve Securis, the specialist catastrophe bond and insurance-linked securities (ILS) investment manager, has set up new distribution partnerships in Taiwan with Concord Capital Management, and Uni-President, as the company continues to expand its presence across Asia’s institutional markets.

Through its partnership with Concord Capital Management, a financial services subsidiary of Taiwan’s Concord Securities Group, the two firms will work together to promote an alternative investment strategy that’s centered primarily on catastrophe bonds.

This comes as Concord Capital Management has recently obtained qualification to participate in the Kaohsiung Asset Management Zone multi-channel business pilot program.

As Artemis’ readers are aware, Twelve Securis specialises in the field of ILS investments, and focuses heavily on catastrophe bonds and Private ILS transactions.

By working alongside Concord Capital Management, the two parties will reportedly introduce an alternative investment strategy centered on catastrophe bonds.

Since the risks associated with catastrophe bonds mainly stem from natural disaster occurrences, their sources of return exhibit relatively low correlation traditional equity and fixed income markets. Ultimately, this makes them a key tool for portfolio diversification, offering high-net-worth clients a new alternative to traditional stock and bond allocations.

Vittorio Sangiorgio, Head of Investment Solutions at Twelve Securis explained that the company continues to see strong demand from wealth management channels and large domestic institutional investors, whilst also stressing that gaining access to the Asian market requires partnering with trusted local companies.

The executive also noted that through the partnership, Concord will also be supporting Twelve Securis with the distribution of cat bonds, mixed ILS strategies, as well as Restricted Tier 1 (RT1) and multi-asset solutions.

Moreover, David Lay, Chairman and Chief Executive Officer of Concord Capital Management, highlighted that the firm will continue to deepen its local research capabilities while actively introducing distinctive overseas investment strategies that meet market demand.

By leveraging the asset management platform of the Concord Securities Group and combining local research strengths with international asset management resources, the company also aims to provide investors with more comprehensive and diversified global asset allocation solutions.

The Uni-President partnership is also a recent development for Twelve Securis and is expected to be focused on a dedicated cat bond fund.

Furthermore, Sangiorgio also highlighted how Twelve Securis continues to expand its presence across other parts of Asia too.

In Japan specifically, he noted that Twelve Securis is seeing renewed interest in catastrophe bonds, whilst also stating that the firm recently secured a mandate this year from a sophisticated and respected financial institution based in the country.

Sangiorgio further explained that Twelve Securis sees great potential for the ILS market in Korea too.

“We are developing an innovative and attractive mixed ILS product in partnership with Korean Re which will support the origination of certain risks,” he said.

Adding: “Investors are keen on ILS but having a strong and trusted local partner is essential to build trust and ensure proximity to investors.”

In regards to Singapore and Hong Kong, Sangiorgio importantly stated that Twelve Securis is exploring the establishment of a local presence in one, or, over the longer term, both of these regional hubs.

“Investor understanding of the ILS asset class has advanced significantly, and we see growing demand across family offices, wealth management channels, and institutional investors,” he added.

Concluding: “We also believe these markets are well positioned for subordinated insurance debt strategies. Investors are already familiar with Bank AT1, making Insurance RT1 an attractive complementary allocation.”

Twelve Securis’ broader, long-term strategy in Asia is to build a diversified regional presence, through carefully selected partnerships and offering of tailored ILS investment solutions.