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Minnesota Life mortality cat bond sees pricing narrow towards upper-end


Price guidance has narrowed towards the upper-end of the marketed range for the new La Vie Re Limited (Series 2020-1) mortality catastrophe bond transaction from life insurer and part of the Securian Financial Group, Minnesota Life Insurance Company.

reinsurance-contract-renewal-signingThe targeted size of the reinsurance protection that Minnesota Life will benefit from with this rare mortality catastrophe bond issuance remains at $100 million, we understand.

Mortality catastrophe bonds remain relatively rare, only contributing a small amount of the outstanding cat bond market these days.

The La Vie Re Limited mortality cat bond transaction was launched to investors at the beginning of October.

La View Re is a Bermuda based company and will issue a single $100 million or greater tranche of Series 2020-1 notes, that will be sold to investors and the proceeds used to collateralize an excess-of-loss reinsurance agreement between it and Securian’s captive reinsurer 1880 Reinsurance which is based in Vermont.

At launch, the notes that will provide extreme mortality reinsurance coverage, on a loss ratio basis, were marketed to investors with price guidance in a range from 2.5% to 3%.

We’re now told that the guidance has been narrowed towards the upper-end of that range, with the final offering being made at 2.75% to 3%.

Meaning there is still a strong chance the notes price within the initial guidance, which for a first issuance and a rare mortality catastrophe bond will be a positive result for the sponsor.

The successful completion of this issuance could help to promote the catastrophe bond’s use within life insurance circles, which would be positive for those ILS managers and funds targeting life insurance-linked securities (ILS) investments.

You can read all about this La Vie Re Limited (Series 2020-1) mortality catastrophe bond and every other mortality linked or life ILS deal we have information on in our Artemis Deal Directory.

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