Twelve Securis, a prominent investment manager specializing in catastrophe bonds and other insurance-linked securities (ILS), is undergoing a significant strategic reorganization. The firm announced the consolidation of its cat bond and private ILS investment teams, a move designed to streamline operations and enhance the efficiency of its dedicated and blended portfolio management strategies. This integration comes as a long-standing senior executive, Etienne Schwartz, prepares to depart from the company.
The decision to merge these investment functions reflects a broader effort by Twelve Securis to optimize its analytical and portfolio management capabilities. By bringing together the expertise previously compartmentalized between cat bonds and private ILS, the company anticipates a more cohesive and effective approach to investment construction and client service. This unified structure is expected to foster greater synergy across its diverse range of offerings.
Twelve Securis is recognized for managing the largest UCITS cat bond fund, valued at over $4.65 billion, alongside other substantial cat bond mandates and strategies focused on private ILS. All these funds typically include a cat bond component for liquidity, and the firm also handles multi-asset strategies incorporating various insurance and reinsurance assets, such as credit or debt. The integration of the management teams is therefore a logical step to ensure more efficient outcomes for their clientele.
Etienne Schwartz, who most recently served as a Partner and Chief Investment Officer for liquid strategies, is slated to leave Twelve Securis. Schwartz joined the firm in 2013 when it was known as Twelve Capital and played a pivotal role in managing portfolios of insurance and reinsurance-linked assets. His tenure saw him rise through several key positions, including Head of Investment Management in 2024, before assuming the CIO role for Liquid Strategies. Additionally, Jed Scanlon, an ILS analytics specialist, is also departing after more than three years with the manager.
CEO Urs Ramseier emphasized that the consolidation positions Twelve Securis as a leading ILS manager capable of adeptly handling both mixed and pure cat bond portfolios. He highlighted the firm's ongoing commitment to technological advancements and artificial intelligence to further enhance operational efficiency and portfolio optimization. Ramseier noted, "We are placing significant emphasis on portfolio analytics, investing in technology, efficient processes, and AI tools to refine our approach to analyzing cat bonds and private ILS transactions for portfolio construction. This represents a considerable endeavor on our part."
With the integration, Cahal Doris is expected to assume the role of Chief Investment Officer, having previously served as CIO for Private ILS. The portfolio management responsibilities for cat bonds and private ILS will be led by senior team members Tanja Wrosch and Alexandre Bruls, respectively. All three will report directly to CEO Urs Ramseier. Furthermore, Paul Larrett will continue in his role as Chief Underwriting Officer, and Dinesh Pawar will maintain oversight of insurance credit/debt portfolios, both also reporting to Ramseier.
This strategic restructuring by Twelve Securis aims to create a more integrated and robust investment platform. By centralizing management and analytics for both cat bonds and private ILS, the firm is poised to deliver enhanced value and optimized performance for its investors in the evolving insurance-linked securities market.
