Aetna enters into reinsurance arrangement with Vitality Re VIII
Aetna has entered into a four-year reinsurance arrangement with Vitality Re VIII in line with its long-term capital management strategy.
The arrangement allows Aetna to reduce its required capital and provides $200m of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group commercial health insurance business.
Vitality Re VIII is a newly formed insurance company which issued health insurance-linked notes in a private offering in connection with this transaction.
Aetna treasurer David Buda said: “Today’s transaction marks the successful completion of our eighth such reinsurance arrangement.
“This reinsurance arrangement improves our capital efficiency and reduces our weighted average cost of capital.”
Source: Company Press Release