Generali and Descartes launch ILS fund parametric partnership

Generali and Descartes have announced that they will strengthen their parametric partnership through a new “innovative alternative capital solution” aimed at the natural catastrophe re/insurance market.

Generali Global Corporate & Commercial (GC&C) and Descartes Underwriting have announced the launch of the new Lumyna Twelve Capital Parametric Insurance Linked Securities (ILS) Fund.

The two insurance companies described the investment fund as an “innovative…pioneer in the fast-growing ILS market”, as well as a step forward for the GC&C and Descartes partnership.

The new investment fund is aimed at expanding the use of parametric solutions in the nat cat insurance space.

Managed by Twelve Capital, the fund utilises GC&C’s brand, underwriting experience, and global distribution network.

Descartes contributes scientific expertise, risk assessment capabilities and its experience with parametrics.

Lumyna, part of Generali Investments, provides infrastructure and marketing.

GC&C and Descartes said they would “strive to enhance underwriting capacity and further grow their leading presence in the parametric segment” via their collaboration.

Seeded by a leading European institutional investor, this new ILS fund highlights the increasing appeal of such funds as a part of diversified investment strategies.

Its backers said the new fund would provide investors with access to a portfolio including cat bonds and securitided natural-perils parametric insurance policies, through GC&C’s and Descartes’ combined expertise.

“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,” said Christian Kanu, CEO of GC&C.

“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,” Kanu said.

“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,” he continued.

Tanguy Touffut, co-founder and CEO of Descartes, added: “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 GC&C.

“We are delighted to join forces with outstanding market leaders such as Twelve Capital and Lumyna in the face of climate change.”