US leading health insurer in deal with special CI firm

(Bloomberg): Insurer Aetna Inc. has entered into a three-year reinsurance agreement with Vitality Re Limited, a newly formed special purpose insurance company based in the Cayman Islands. Aetna said the deal is part of its long-term capital management strategy. It allows Aetna to reduce its required capital and provides $150 million of collateralized excess of loss reinsurance coverage on a portion of Aetna’s group commercial health insurance business. The first of their kind insurance linked notes were offered in a private offering associated with the deal between Aetna and Vitality Re.

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