Salam III Ltd

Fitch Ratings has affirmed two insurance-linked securities (ILS) transactions from Luxembourg-based life and annuity focused insurer ATLANTICLUX Lebensversicherung S.A., the SQ ReVita value-in-force (ViF) life securitisation and the Salam III Sukuk (Islamic bond).

The first tranche of the novel Salam III Limited securitization of in-force life insurance policies has now been issued. The unique deal, transacted as an Islamic bond, or Sukuk, is the first time we know of an insurance-linked securitization (ILS) of takaful (Sharia’a-compliant) insurance policies taking place.

ATLANTICLUX, the Luxembourg based life insurer which is an an affiliate of the Munich based FWU Group, has brought to market another novel securitization of in-force life insurance policies and this time it’s wrapping the life insurance-linked securities within an Islamic bond, or Sukuk, called Salam III Limited.