Twelve Capital lifts ILS assets 11% to $3.1bn in Q1 2023

Catastrophe bond, insurance-linked securities (ILS) and reinsurance investment manager Twelve Capital has grown its asset base through the first-quarter of 2023, reaching a new level of $4.2 billion of firm-wide assets under management.

Given the firm invests across a number of areas of the insurance and reinsurance balance-sheet, including debt and equities, as well as insurance-linked securities (ILS), the figure for ILS specific assets under management is lower at $3.1 billion at the end of the period.

But it is ILS that has driven the growth, with Twelve Capital’s UCITS catastrophe bond fund the main driver.

At the end of 2022, Twelve Capital had $2.8 billion of ILS assets and $3.9 billion of firm-wide assets under management.

So the first-quarter has seen all of the growth coming from the ILS segment, with $300 million added, for a roughly 11% increase to $3.1 billion.

Within that figure, catastrophe bonds now make up the majority.

As we reported recently, UCITS cat bond funds saw strong growth in assets, with the major UCITS cat bond funds combined AUM rising 7% to $9.37 billion over the first-quarter of 2023.

Twelve Capital’s UCITS cat bond fund strategy, the Twelve Cat Bond Fund, was the third largest of these strategies at the end of Q1, holding just over $2.39 billion of assets.

Of the larger UCITS cat bond funds it saw the fastest growth, with the Twelve Cat Bond Fund’s assets rising over $250 million, so nearly 12%, in the first-quarter.

So cat bond related assets account for the majority of the ILS asset growth for Twelve Capital so far this year, which we imagine is the same for most ILS fund managers that have a cat bond strategy.

View details of dedicated ILS fund managers and reinsurers offering ILS-style investment opportunities in our Insurance-Linked Securities Investment Managers & Funds Directory.