Vitality Re V Ltd

Standard & Poor’s (S&P) has upgraded the ratings for all tranches of Aetna’s Vitality Re V Ltd. and Vitality Re VI Ltd. insurance-linked securities (ILS) deals, following a lower-than-expected impact from the suspension of the industry-wide health insurer fee (HIF).

As a result of a piece of health care and health insurance related U.S. legislation named the Consolidated Appropriations Act, 2016 (CAA), signed into law in December, all tranches of Aetna’s Vitality Re V Ltd. and Vitality Re VI Ltd. ILS deals have had their ratings downgraded.

Ratings agency Standard & Poor’s has affirmed the ratings of all tranches from three medial benefit ratio or health insurance linked ILS deals sponsored by Aetna. The ratings have been affirmed as S&P said that its rating criteria had previously been misapplied for these deals.

Ratings agency Moody’s said in a report that it believes health insurer Aetna’s series of Vitality Re medical benefit claims linked ILS or catastrophe bond type transactions provide the insurer with limited risk protection.

Health insurance company Aetna has successfully secured $200m of multi-year reinsurance protection with the completion of Vitality Re V Ltd. (Series 2014-1), its latest medical benefit claims ratio linked insurance-linked security (ILS).

According to market sources the pricing on health insurer Aetna’s Vitality Re V Ltd. (Series 2014-1), its latest medical benefit claims ratio linked insurance-linked security (ILS), has settled below the bottom of the deals launch price guidance range.

As promised when Artemis first covered this transaction, the first insurance-linked securities (ILS) issuance of 2014, here are some more details on health insurer Aetna’s Vitality Re V Ltd. (Series 2014-1), its latest medical benefit claims ratio linked ILS.

The first insurance-linked securities (ILS) or catastrophe bond type transaction to launch in 2014 sees a $200m deal from regular sponsor health insurer Aetna with Vitality Re V Ltd. (Series 2014-1), its latest medical benefit claims ratio linked ILS deal.