AETNA SEEKING $150M OF HEALTHCARE PROTECTION THROUGH VITALITY RE III

US health insurer Aetna is seeking $150m of protection against excess medical benefit claims through Vitality Re III, being issued through a Cayman islands-domiciled special purpose vehicle (SPV) in two tranches. The three-year deal will offer aggregate excess of loss reinsurance to Aetna, using a pre-set medical benefit ratio. For the class A notes ($105m) this has to exceed 103%, while for the class B notes($45m) it only has to reach 97%. This compares with index requirements of 105% and 100% respectively for the 2011 issues from Vitality Re II. Rating agency S&P has assigned a preliminary 'BB+' rating to the class A notes and a 'BB+' preliminary rating to the class B notes. Goldman Sachs led the placement and structuring. Meanwhile, S&P has placed its ratings for Vitality Re I's 2010 issue and Vitality Re II's 2011 issues on CreditWatch positive. This reflects improved claims experience