Twelve Capital is an independent investment manager specializing in insurance related investments. Its core business is the management of portfolios of Insurance-linked securities (ILS). Clients can access ILS investment solutions through a variety of product structures, including specialist mutual funds or mandates.
In addition to ILS, Twelve Capital offers other insurance-related investment products based on the investment professionals’ profound understanding of insurance risks and insurance balance sheets as well as the changing regulatory environment for insurance companies. Therefore, Twelve Capital offers investment solutions focusing on (subordinated) bonds issued by European insurance companies in fund- as well as mandate format. This is a niche area where the team has a clear competitive advantage and sees long term growth prospects.
Twelve Capital was founded in 2010 and is majority owned by the investment team. The client base includes large corporate investors, public- and industry pension plans, (re)insurance companies, banks, third party mutual funds and family offices.
Insurance companies are issuing subordinated bonds for regulatory reasons. While institutional investors do value some of the debt instruments that have been issued, they completely seem to dislike CoCo Bonds and their risks.