embedded value

Hartford Financial Services Group Inc. are reportedly looking at options for ways to best reduce and isolate the risks from its annuities and life insurance business from the rest of its operations, according to this article on Bloomberg. Investment losses in recent years from their life insurance unit have caused issues at the group with […]

Global reinsurer Swiss Re see the recent successful completion of the Vecta I Ltd. embedded value life insurance securitization as a positive sign for the market. In this article from A.M. Best, Swiss Re’s Head of Life & Health Alison Martin says that the completion of Vecta I as the first securitization of embedded value […]

Some further details are gradually emerging on the Vecta I Ltd. embedded value life insurance securitization thanks to press releases from some of the transactions participants. The first embedded value deal to come to market since 2007, Vecta I Ltd. is also the first insurance-linked securitization of Canadian life insurance embedded value.

The first 144A embedded value life insurance securitization deal to be issued since 2007 (see graph below) has now completed. The Vecta I Ltd. transaction, which enables Aurigen Reinsurance to monetise the cash flows associated with life insurance and mortality business it has reinsured, was rated today by Standard & Poor’s as a C$120m tranche of […]

An embedded value life securitization transaction has been launched on behalf of Aurigen Reinsurance who are seeking through this Vecta I Ltd. deal to monetise the cash flows associated with life insurance and mortality business it has reinsured. Embedded value life securitization transactions enable sponsors to realise the present value of future cash flows by […]

ALPS Capital II plc, originally issued in December 2005, is an Embedded Value Life-Insurance-Linked Securitization backed by a closed block of life insurance policies. As we wrote in December, the deal had been reassessed for a possible rating upgrade by ratings agency Moody’s. Moody’s now report that it has upgraded the ratings on it’s B, […]

The notes issued by ALPS Capital II plc for an embedded value life insurance-linked securitization have been placed under review for a possible rating upgrade by Moody’s. Swiss Re sponsored the 2005 transaction which securitized future life profits of $370m by transferring closed block of life insurance policies risk to the capital markets to increase […]