Vecta I Ltd. embedded value life insurance securitization completes at C$120m

Share

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 enablesĀ 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 8% fixed-rate notes.

The Vecta I transaction completing successfully shows that the embedded value life securitization market still has life in it and it’s likely that others will noww assess the feasibility of following this deal to market. S&P rated the notes ‘BBB+’.

More details on the Vecta I Ltd. transaction can be found here.

Swiss Re recently shared this excellent graph showing the life insurance-linked securities deals which have come to market since 2003. You can clearly see the disappearance of embedded value deals after 2007. Perhaps this transaction will help to revive the life ILS market?

Life insurance-linked securitization deals since 2003 - As of December 9, 2011. Source: Swiss Re Capital Markets

Life insurance-linked securitization deals since 2003 - As of December 9, 2011. Source: Swiss Re Capital Markets (click graph to open larger version)

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
Amlin statement on the completion of Tramline Re cat bond

Amlin Plc have issued a press statement on the completion of their $150m U.S. hurricane, U.S. earthquake, and European windstorm...

Close