Aetna Inks Unique $150M Health Reinsurance Deal

Law360, New York (January 11, 2011, 3:10 PM EST) -- Aetna Inc. has reached an agreement with reinsurer Vitality Re Ltd. to provide loss coverage for a portion of its group health insurance business, the first such transaction in the health insurance arena.

Hartford, Conn.-based Aetna said the two companies completed the private transaction Monday.

Aetna said the three-year reinsurance agreement gives it $150 million of collateralized excess of loss reinsurance coverage on the part of its group commercial health insurance business and allows the company to reduce the amount of capital it must have on...
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