Swiss Re and Credit Agricole Launch First Canadian Life Insurance Backed Securitization

This week brought the announcement that Aurigen Capital Limited, a Toronto-based reinsurer had launched the first ever securitization structured around the embedded value of Canadian life insurance polices.

Credit Agricole Securities and Swiss Re Capital Markets co-managed the placement of the CAD120mm six year notes which were sold under Rule 144-A to a limited number of holders.  Standard & Poor’s rated the notes BBB+.

Despite the broad brushing of the life insurance securitization by several global regulators as an asset class that investors should stay away from, apparently there is a creeping demand for the stuff.  Aurigen Reinsurance issued the notes through a Bermuda special purpose entity named Vecta I Ltd.

About markferraris
Managing Principal Orchard Street Partners LLC

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