HARTFORD, Conn. – Aetna (NYSE: AET) today announced that it has entered into a five-year reinsurance arrangement with Vitality Re V Limited 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.
Aetna's arrangements with Vitality Re Limited and Vitality Re II Limited expired on Tuesday, January 7, 2014.
"This reinsurance arrangement improves our capital efficiency and reduces our weighted average cost of capital," said Aetna's Treasurer J. Lankford Wade. "Today's transaction, which essentially replaces the Vitality Re II arrangement, marks the successful completion of our fifth such reinsurance arrangement."
Aetna is one of the nation’s leading diversified health care benefits companies, serving an estimated 44 million people with information and resources to help them make better informed decisions about their health care. Aetna offers a broad range of traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, group life and disability plans, and medical management capabilities, Medicaid health care management services, workers’ compensation administrative services and health information technology products and services. Aetna’s customers include employer groups, individuals, college students, part-time and hourly workers, health plans, health care providers, governmental units, government-sponsored plans, labor groups and expatriates. For more information, see www.aetna.com.
Aetna Media Contact: