Secquaero in €70m SQ ReVita II life ViF securitisation for Atlanticlux

by Artemis on May 19, 2016

Secquaero Advisors AG has completed another value-in-force life insurance securitisation for Luxembourg domiciled life insurer Atlanticlux Lebensversicherung S.A, in a €70m SQ ReVita II IC Ltd. transaction featuring a closed-block of European life insurance.

Secquaero Advisors, an advisory and consulting firm that specialises in intermediation of insurance or reinsurance risk to the capital markets and insurance-linked investments, said that the value-of-in-force securitisation helps Atlanticlux to repay existing financing arrangements, as well as to advance the development of its business.

The transaction saw SQ ReVita II, a special purpose reinsurance vehicle in the form of an incorporated cell, reinsurer Atlanticlux for over 100,000 unit-linked European life insurance policies and issue a series of Regulation S notes to investors, with the notes expected to amortise over 10 years.

Value of in force life securitisations help the sponsor to monetise some of the value of life policies, while also transferring specific risks associated with the portfolio to capital market investors.

The notes repayment is subject to both lapse and mortality risk, so repayment is essentially at risk of the significant deterioration of these two factors. The notes have been structured as UCITS compatible, listed on the Irish Stock Exchange in Dublin and are set to be priced on a weekly basis by two independent broker-dealer desks in the insurance-linked securities (ILS) market.

The UCITS compatibility, listing and weekly pricing of the SQ ReVita II notes will aid liquidity and make the life insurance-linked securities available to a broader range of investors.

The sponsor of the transaction was parent of Atlanticlux, the FWU Group, while structuring was completed by Secquaero Advisory AG and the notes were then syndicated by Zurich based Privcap Consult GmbH, a specialist in asset-backed structured financing transactions with a special emphasis on life ILS.

SQ ReVita II is an incorporated cell of Aon Insurance Mangers vehicle White Rock Insurance ICC Limited in Guernsey.

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