Twelve Capital launches insurance private debt strategy
Twelve Capital unveiled an extension of its investment strategy at this year’s Rendez-vous de Septembre in Monte Carlo.The new strategic approach aims to provide small and medium sized insurers with an additional source of regulatory capital and to generate attractive risk-adjusted returns for Twelve Capital’s investors’ base.
As banks seek to strengthen their balance sheets and cut back on lending activities due to stricter capital requirements, small and medium sized insurers are finding it more difficult to obtain solvency financing. Given the profitability of many insurance companies and the low level of historic defaults in this sector, Twelve Capital successfully launched the Insurance Bond strategy three years ago with assets under management now exceeding USD 1bn. The new Private Debt strategy aims to provide solvency-relevant capital to small and medium sized insurance companies in the form of bilateral loans or private placement bonds and benefits from Twelve Capital’s existing expertise in the fields of collateralized reinsurance as well as insurance fixed income.
Dr. Urs Ramseier, Chairman of the Board of Directors at Twelve Capital, comments “we are thrilled to add this new strategy to our range of solutions for insurance and reinsurance companies. It complements our existing offering of collateralised reinsurance and traded bonds, and enables us to offer solvency-relevant capital to insurance companies in almost every possible format.”
