Twelve Capital and Lumyna Investments have partnered to launch Lumyna-Twelve Capital Parametric ILS Fund, in a collaboration with parametric carrier Descartes and Generali Global Corporate and Commercial (GC&C).
The fund has raised seed capital from a leading European institutional investor, Twelve Capital said.
Twelve Capital will act as investment manager for the fund, while Lumyna Investments, part of Generali Investments, brings robust infrastructure and a strong marketing platform, Twelve Capital said.
The fund will benefit from Descartes’ origination and underwriting strengths, and GC&C’s underwriting skills and highly rated insurance balances sheet, the ILS manager added.
It will invest in parametric deals, as well as cat bonds and ILWs “to further enhance liquidity and diversification”, Twelve Capital noted.
Dr Urs Ramseier, founding partner and executive chairman at Twelve Capital, said: “The growth of the parametric segment and its compelling characteristics present a solid opportunity for ILS investors seeking strong returns and diversification. Our goal is to enable investors to capitalise on the idiosyncratic features of parametric insurance, complemented by the broader strengths of ILS.”
Dr Rom Aviv, ILS – senior adviser to Twelve Capital, added: “Among many benefits, parametric insurance as an investment enhances the internal rate of return for investors by effectively minimising trapped capital risks.”
Tanguy Touffut, CEO at Descartes, said: “This new arrangement provides additional capacity for profitable growth, in line with our broader alternative capital strategy, and represents another key step in our partnership with GC&C.”
Christian Kanu, CEO at GC&C, said: “This initiative represents a breakthrough in parametric insurance, offering unique opportunities for investors and clients, while helping businesses and communities build resilience against natural risks.”