Securian Financial Is First U.S. Direct Life Insurer to Complete a Mortality Insurance-Linked Security Transaction

Securian Financial affiliate, Minnesota Life Insurance Company, has successfully completed a $100 million insurance-linked security (ILS) transaction, becoming the first U.S. direct writer of life insurance to utilize an extreme mortality bond structure.

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Monday, October 26, 2020
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Professional services, Insurance, Finance, Types of insurance, Securian Financial Group, Insurance, Life insurance, Catastrophe bond, Finance, Money, Financial services
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United States, Minnesota
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Summary
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  • Securian Financial affiliate, Minnesota Life Insurance Company, has successfully completed a $100 million insurance-linked security (ILS) transaction, becoming the first U.S. direct writer of life insurance to utilize an extreme mortality bond structure.
  • The transaction is the first Rule 144A catastrophe bond exposed to extreme mortality risk featuring an indemnity trigger on an annual loss ratio basis.
  • Securian Financial is the marketing name for Securian Financial Group, Inc. and affiliates.
  • Insurance products are issued by its affiliated insurance companies, including Minnesota Life Insurance Company and Securian Life Insurance Company, a New York authorized insurer.


Securian Financial affiliate, Minnesota Life Insurance Company, has successfully completed a $100 million insurance-linked security (ILS) transaction, becoming the first U.S. direct writer of life insurance to utilize an extreme mortality bond structure.

La Vie Re, a special purpose insurer not affiliated with Securian Financial, issued $100 million of Series 2020-1 Class A notes to investors, which closed on October 23. The transaction is the first Rule 144A catastrophe bond exposed to extreme mortality risk featuring an indemnity trigger on an annual loss ratio basis. The arrangement with La Vie Re provides Minnesota Life with $100 million of fully collateralized excess of loss reinsurance protection for the company’s group insurance business over a three-year period.

“The La Vie Re issuance allows us to protect our balance sheet while strengthening our capital position and driving capital efficiency,” said Warren Zaccaro, Securian Financial executive vice president and chief financial officer. “We are very pleased with the reception from capital market investors on this inaugural ILS transaction, confirming both the quality of our portfolio and the marketplace’s interest in new risks.”

“Diversifying our reinsurance capacity by accessing the capital markets is a natural complement to our traditional reinsurance programs,” added Paul Rudeen, Securian Financial vice president and head of reinsurance. “Through this innovative transaction, we increase our current and long-term financial flexibility.”

ABOUT SECURIAN FINANCIAL

At Securian Financial, we’re here for family. And we’re here because of it. We’re guided by our purpose: helping customers build secure tomorrows. Since 1880, we’ve been building a uniquely diversified company that has outlasted economic ups and downs while staying true to our customers. We’re committed to the markets we serve, providing insurance, investment and retirement solutions that give families the confidence to focus on what’s truly valuable: banking memories with those who matter most.

Securian Financial is the marketing name for Securian Financial Group, Inc. and affiliates. Insurance products are issued by its affiliated insurance companies, including Minnesota Life Insurance Company and Securian Life Insurance Company, a New York authorized insurer. Securities and investment advisory services offered through Securian Financial Services, Inc., member FINRA/SIPC.

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