January 16, 2015

Willkie represents BNP Paribas in rare life insurance policy embedded value transaction 

Willkie recently represented BNP Paribas Securities Corp. as structuring and placement agent in the private placement of C$210 million of asset-backed notes issued by Valins I Limited, marking the second life insurance policy embedded value transaction to close in the past four weeks, and the first Canadian dollar embedded value transaction since Aurigen Limited’s “Vecta I” transaction in late 2011.

The transaction covers a closed block of Canadian life insurance policies reinsured by Aurigen Reinsurance Limited, a subsidiary of Aurigen Capital Limited, between 2008 and 2013 and consists of 26 life reinsurance treaties from 12 life insurance companies.  A unique feature of the offering structure is that it allows for the increase and extension of the notes, providing flexibility to add future new life insurance business and access to capital funding.

The Willkie securitization team was led by of counsel Scott Avitabile assisted by associate Katie Lynch.  Of counsel Don Henderson assisted with reinsurance matters, partner Arthur Lynch assisted with U.S. tax matters and of counsel Martin Miller assisted with state blue sky matters.