Twelve Capital to Use AIR’s Cat Modeling Systems

Twelve Capital, an independent investment manager focusing on insurance-related investment opportunities, has selected AIR Worldwide’s CATRADER, an application for analyzing catastrophe reinsurance and insurance-linked securities. Twelve Capital will use CATRADER and ALERT, AIR’s online real-time loss estimation service, to assess and manage the risks associated with its portfolio of catastrophe bonds and other insurance-linked securities, AIR says.

“We selected CATRADER because it is the most flexible catastrophe bond analysis tool, and it provides full transparency when analyzing positions in our portfolio,” says Sandro Kriesch, partner of Twelve Capital. “CATRADER also allows us to better understand the impact of potential new investments on our portfolios, which contain other catastrophe-exposed components such as traditional reinsurance contracts.”

AIR says CATRADER enables investors to assess the risk associated with the widest range of financial instruments, including cat bonds, ILWs, sidecars and traditional reinsurance contracts. In CATRADER Version 12.0, AIR says the catastrophe bond program functionality was enhanced by integrating detailed information about every active catastrophe bond directly into CATRADER, helping users manage catastrophe bonds and provide more detailed reporting options for portfolios of insurance-linked securities.

“The [reporting tools] seamlessly combine the information from the catastrophe bond offering circular with loss data from CATRADER, to provide us with a detailed snapshot of our portfolio of catastrophe bonds,” says Kriesch. “We combine this information with our proprietary system, CatEye, which allows for efficient aggregation, detailed price history, and reporting of our and third party portfolios.”