Aetna In 3-year Reinsurance Arrangement With Vitality Re VI

(RTTNews) - Aetna Inc. (AET) said Tuesday that it has entered into a three-year reinsurance arrangement with Vitality Re VI Ltd. as part of its long-term capital management strategy.

The arrangement allows Aetna to reduce its required capital and provides $200 million of collateralized excess of loss reinsurance coverage on a portion of Aetna's group commercial health insurance business.

Vitality Re VI is a newly formed insurance company which issued health insurance-linked notes in a private offering in connection with this transaction.

Aetna's reinsurance arrangements with Vitality Re III Ltd. expired on January 7, 2015.