Generali and Twelve Capital launch parametric ILS fund

By Henry Gale

Feb 3 - (The Insurer) - Twelve Capital and Generali's Lumyna Investments have launched an ILS fund focused on parametric risks in partnership with Generali Global Corporate & Commercial (GC&C) and Descartes Underwriting.

The new Lumyna—Twelve Capital Parametric ILS Fund will be managed by Twelve Capital and allocate capital to parametric natural catastrophe insurance, catastrophe bonds and industry loss warranties.

It aims to expand the underwriting capacity available for parametric risk transfer and help Generali GC&C and Descartes grow their presence in the parametric market. Generali GC&C has had a strategic partnership with Descartes on parametric solutions for several years, which it first announced in 2020.

The fund has been seeded by a leading European institutional investor. Twelve Capital and Lumyna said it aims to provide investors with diversification, enhanced returns and uncorrelated performance. Lumyna, part of Generali Investments, will provide infrastructure and support the marketing for the fund.

Christian Kanu, CEO of Generali GC&C, said: “The launch of this parametric ILS fund reflects our commitment to innovation in the insurance sector and our dedication to bridging the global protection gap.

"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. We are proud to collaborate with our esteemed partners Descartes, Lumyna and Twelve Capital, whose combined strengths have been instrumental in bringing this innovative solution to market.”

Tanguy Touffut, co-founder and CEO of 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 Generali Global Corporate & Commercial. We are delighted to join forces with outstanding market leaders such as Twelve Capital and Lumyna in the face of climate change.”

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 commented: “The partnership with Twelve Capital marks an important next step on 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.”