Twelve Capital, Generali, Descartes partner on Parametric ILS Fund

Twelve Capital and Lumyna Investments, part of Generali Investments, have launched the Lumyna – Twelve Capital Parametric ILS Fund, designed to provide diversification, enhanced returns, and de-correlated performance by investing in innovative parametric insurance transactions.

Backed by a prominent European institutional investor, the fund will partner with fintech leader Descartes Underwriting and GC&C, the Global Corporate & Commercial division of Generali Group.

As per Twelve Capital, this collaboration will leverage Generali’s underwriting expertise and strong insurance balance sheet, along with Descartes’ origination and underwriting capabilities, to deliver innovative parametric solutions. At the same time, the fund also reportedly plans to allocate to Cat Bonds and ILWs to further enhance liquidity and diversification.

Twelve Capital said it will act as Investment Manager, bringing its expertise and experience in ILS, while the fund will leverage Lumyna’s infrastructure and marketing presence.

Dr. Rom Aviv, ILS – Senior Advisor to Twelve Capital, commented, “Among many benefits, Parametric Insurance as an investment offers paradoxically a premium for its simplicity. It enhances the IRR for investors by effectively minimizing trapped capital risks.”

Dr. Urs Ramseier, Founding Partner and Executive Chairman of Twelve Capital added, “The growth of the parametric segment and its compelling characteristics present a solid opportunity for investors in ILS seeking strong returns and diversification.

“Twelve Capital is pleased to partner with industry leaders to create an innovative product that allows investors to benefit from unparalleled investment management expertise. Our goal is to enable investors to capitalise on the idiosyncratic features of parametric insurance, complemented by the strengths of the broader ILS segment.”

Philippe Lopategui, CEO of Lumyna, said, “The partnership with Twelve Capital marks an important next step in Lumyna’s expansion in the Private Markets arena. The value-add that Lumyna brings as both manufacturer and distributor of innovative investment solutions builds on the foundations established over the past 17 years in the liquid Alts space.

“We are delighted to partner with such a high-pedigree manager as Twelve Capital, and with market leaders Descartes and Generali, which will enable us to provide unique and differentiated access to parametric insurance to our investors.”

Paul Holmes, Head of Distribution at Lumyna, noted, “There has been a significant level of interest in evergreen, semi-liquid private market solutions over the last few years from a broad spectrum of our investor base.

“With the launch of the Parametric ILS fund in partnership with Twelve Capital, we believe that we bring a genuinely innovative strategy, with the ability to generate highly attractive risk-adjusted returns, in a framework that does not compromise portfolio construction and liquidity.”

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