First Colony Life Insurance Company recently completed the first triple-X securitization off of its River Lake II special purpose insurance company. Lehman Brothers led the $300 million offering.
The transaction was rated by both Moody's Investors Service and Standard & Poor's, and backed by an MBIA wrap. Regulation Triple-X, the rule governing the cash reserve insurance companies must keep against their term life portfolios, has spurred insurance carriers to turn to the securitization markets for relief. Outdated mortality tables mandates that insurance providers carry as much as eight times more than is actually at risk (see ASR, 11/01/2004).