Disaster risk modeling company RMS has announced a collaboration with Willis Re Securities and Securian Financial to launch the new La Vie Re Limited (2020 Series) -1) catastrophe mortality bond, which is owned by Minnesota Life Insurance Company, a subsidiary of Securian Financial, a reinsurance coverage of 100 million. USD offers.
RMS acted as the modeling tool for the cat bond transaction. The company leveraged its suite of excess mortality and morbidity models that covered pandemics of infectious diseases, terrorism, earthquakes and other threats, including a contribution to expected loss from COVID-19. The bond, which covers the US, will be the first bond with an excess mortality of 144A to model the cedants’ portfolio based on the loss ratio, RMS said.
The bonds issued by La Vie Re were issued for cat bond investors, and the full principal of 100 million. USD was achieved with a coupon price of 2. 85% said RMS.
« Investors have warmly welcomed Securian Financial as the new sponsor of the ILS market, » said Jin Shah, Client Director at RMS. “RMS is also pleased to support another new issuer in secure reinsurance protection against the ILS market with a new structure and a new type of trigger. Using our life risk modeling capabilities, RMS developed a compensation ratio compensation and helped investors understand the risk, especially with regard to the contribution of the current COVID-19 pandemic. The pandemic outlook reflects the latest research on vaccine availability, effectiveness and prevalence and shows how this can mitigate the effects of a second winter wave of COVID-19 infections that threaten regions where strict social distancing measures have been eased. Securian Financial and Willis Re Securities have been a pleasure to work with and it is great to see the ILS market continue to support innovation in the market. ”
Catastrophe bond, bond, reinsurance, insurance, finance, Securian Financial
World news – AU – RMS cooperates on newly introduced mortality cat bond
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– RMS works together on newly introduced mortality cat bond
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