Health insurance giant Aetna (NYSE:AET) has returned to the insurance-linked securities (ILS) market for its eighth Vitality Re transaction, launching a Vitality Re VIII Ltd. (Series 2017-1) deal that seeks $200 million of reinsurance cover against a deterioration of its medical benefit ratio.
Vitality Re VIII Limited is a newly formed Cayman Islands Class C insurer set up specifically for Aetna's latest health insurance linked ILS deal.
As in previous Vitality Re deals, Aetna Life Insurance Company will enter into a quota share health reinsurance agreement with its Vermont captive Health Re Inc., and Health Re will in turn enter into two excess of loss reinsurance agreements with Vitality Re VIII to cover the same business.
