Twelve Capital

The Florida hurricane season still has three months to run in a predicted above-average year.

Idalia might add further aggregate erosion to several cat bonds covering various perils over an annual risk period, it stated.

The ILS manager said returns on casualty ILS were "much higher than on the diversifying nat cat perils such as Italian quake or German flood".

An imbalance of capital supply and demand led to strong increases to spreads at issuance for index-linked and indemnity bonds.

The Zurich-based ILS manager has entered a partnership with the new life ILS firm set up by former Securis CUO Paul Whiting.

The new fund launched earlier this year to invest in companies that are seeking to reduce their emissions.

Martina Müller-Kamp will sit on the board of Twelve Capital’s holding company, while Caroline Clemetson and Andreas Knörzer join the board of Twelve Capita’s investment manager.

The outcomes were better than the Swiss Re global cat bond index decline after the major hurricane.

The Swiss ILS specialist pointed to potential impacts on Floodsmart, Florida indemnity and index-linked bonds.

A flurry of selling in the secondary cat bond market is causing “weakness in pricing”, according to a note by Twelve Capital, as sources suggested investors are moving to free up capital for what is expected to be a bumper pre-hurricane season phase.

The firm will look to grow its offerings on climate change and natural catastrophe risk.

The deal is expected to close in Q2.