Aetna is on the market with its fifth offering of health insurance linked bonds, a deal dubbed Vitality Re V.

Standard & Poor's has assigned preliminary ratings of 'BBB+' to the $140 million Class A six-year notes and ‘BB+' to $60 million Class B six-year notes to be issued by the special purpose vehicle.

Goldman Sachs is the sole bookrunner and co-structuring agent; BNP Paribas is the co-manager and co-structuring agent.

Vitality Re will provide reinsurance against the same kinds of commercial accident and health business claims as Aetna’s previous four transactions.  Vitality Re V will deposit the proceeds from the sale of the notes into a separate collateral account for each class of notes, investing the funds in money-market funds. Vitality Re will pay Aetna in the event the medical costs of the claims being reinsured exceed 102% of the Class A notes or 96% of the Class B notes.

Aetna’s first two health insurance linked transactions, Vitality Re and Vitality Re II, matured Jan. 7, 2014. In its presale report, S&P noted that medical claims of the covered business did not exceed 82.9%, which is 13 percentage points less than the minimum threshold for the Class B notes.

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