Aurigen Capital Limited

Aurigen Capital Limited

January 15, 2015 15:55 ET

Aurigen Completes Embedded Value Securitization

HAMILTON, BERMUDA--(Marketwired - Jan. 15, 2015) - Aurigen Capital Limited ("Aurigen") announced today that its subsidiary, Valins I Limited, has issued CAD 210 million of embedded value notes ("the Notes"). A portion of the proceeds from the issue have been used to repay the notes related to the Vecta I embedded value securitization which was completed in December 2011. The remainder of the proceeds will be used for general corporate purposes.

"This transaction further extends and diversifies Aurigen's capital structure", said Alan Ryder, President and CEO of Aurigen Capital Limited. "The transaction demonstrates Aurigen's leadership, innovation and access to the capital markets. Its creative structure enables ongoing access to capital funding to continue the development of our business."

The transaction is sponsored by Aurigen Reinsurance Limited ("ARL"). It covers a closed block of Canadian life insurance policies reinsured by ARL between 2008 and 2013. Principal repayment on the notes is linked to the emergence of future profits on the subject business consisting of twenty-six life reinsurance treaties written by Aurigen Reinsurance Company, an affiliate of ARL, from twelve life insurance companies.

The Notes have a 6-year term with and a floating rate coupon rate of three month CDOR plus 3.65%. A key feature of the offering structure is that it allows for the increase and extension of the Notes, providing Aurigen with the flexibility to add future new business and continuous access to capital funding to support its growth. BNP Paribas served as structuring and placement agent on the transaction, and independent third-party risk analysis was provided by Oliver Wyman.

The Notes are being offered as a Private Placement and have not been and will not be registered under the United States Securities Act of 1933. The Notes and any beneficial interests therein are being offered and sold, and may be reoffered and resold, only to institutional Accredited Investors or Qualified Institutional Buyers who, in the case of U.S. Persons, are also Qualified Purchasers. The Notes are not rated.

Valins I Limited was incorporated under the laws of Bermuda, for the limited purpose of issuing the notes.


Aurigen's core business is the reinsurance of individual life insurance policies. The company's vision is to develop as a leading life reinsurer providing innovative and customized risk and capital management solutions to enterprises exposed to biometric risks, such as mortality and morbidity, and other related risks. Aurigen is licensed to transact life reinsurance in Canada, the United States and Bermuda and has a life reinsurance in force portfolio in excess of $50 billion and consolidated assets in excess of $550 million. Each of Aurigen's operating life reinsurance companies has a financial strength rating of "A- (Stable)" from A.M. Best Company Inc. Additional information can be found at

Contact Information

  • Aurigen Capital Limited
    Gregg Clifton
    EVP & Chief Financial Officer