Twelve Capital brings second private cat bond of year, a $10m Dodeka 2024-2

Twelve Capital, the Swiss headquartered insurance-linked securities (ILS) and reinsurance investment manager, has successfully completed its second private catastrophe bond issuance of the year, bringing a $10 million Dodeka 2024-2 deal to market.

Just over a month ago, we reported that Twelve Capital had completed a $15 million Dodeka 2024-1  private catastrophe bond, which was the first Dodeka private cat bond, or cat bond lite, that Twelve Capital had arranged since July 2019.

Only a month later, Twelve Capital has completed its second Dodeka private cat bond of 2024, with a further $10 million of 2024-2 notes issued.

This new 2024-2 issuance is actually the 28th transaction from the Dodeka series of private cat bonds, demonstrating Twelve Capital’s desire to source more risk for its cat bond focused portfolios, to the benefit of its investors.

We understand that, as has been the case for most if not all the Dodeka cat bond deals, this new 2024-2 issuance features a securitized and transformed industry-loss warranty (ILW) arrangement.

The Dodeka transactions are an effective way for Twelve Capital to source new risk in a liquid form to fit its ILS fund portfolio needs, and can also add incremental risk investment opportunities at a time when the primary cat bond market may lack the exact transaction form and structure Twelve Capital seeks.

This latest Dodeka 2024-2 transaction saw $10 million of notes issued, sold to qualified investors in a private placement and listed on the Bermuda Stock Exchange (BSX), further enhancing the liquidity of the resulting notes for funds or specific investment mandates, presumably Twelve Capital’s own.

The transformer and issuing vehicle used is again Artex Axcell Re (Bermuda) Limited, which is the same structure managed by Artex Capital Solutions that has been involved in every Dodeka private cat bond arrangement.

The vehicle acted in respect of a Segregated Account named Dodeka 2024-2 to issue the $10 million of ILS notes, under its ILS Note Program II.

The Dodeka 2024-2 private cat bond term runs through the wind season, with maturity due December 27th 2024. That is the same maturity date as the earlier $15 million 2024-1 issuance.

Twelve Capital’s now 28 Dodeka private cat bond transactions have resulted in over $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. Use the filters to view only private cat bonds (filter by type).

Including this latest private cat bond, issuance of these cat bond lite structures has now reached $374.7 million in 2024 so far.

We’ve added this $15 million Dodeka 2024-2  private cat bond transaction to the Artemis Deal Directory, and what data points we have on the arrangement will be included in our catastrophe bond and ILS market statistics.