RMS has partnered with Willis Re Securities and Securian Financial to launch the new La Vie Re series 2020-1 mortality catastrophe bond.
The bond provides $100 million of reinsurance protection for Minnesota Life Insurance Company, a Securian Financial affiliate. Covering the US, it is the first indemnity 144A excess mortality bond that models the cedants’ portfolio on a loss ratio basis.
The notes, issued by La Vie Re, were launched to cat bond investors, and the full $100 million principal was achieved with a coupon price of 2.85 percent.
RMS acted as the modeling agent on the cat bond transaction, providing a view of the risk covered by the bond to investors on infectious disease pandemics, terrorism, earthquakes, and other perils.
Jin Shah, client director at RMS, said: “RMS developed an indemnity trigger on loss ratios and supported investors’ understanding of the risk, especially on the contribution from the current COVID-19 pandemic.”
RMS, Willis Re Securities, Securian Financial, Jin Shah