Through the transaction, Aetna will be able to reduce its required capital and provide $200 million of collateralized excess of loss reinsurance coverage on a part of its group commercial health plan business.
Aetna’s Treasurer David Buda said the “transaction marks the successful completion of [Aetna’s] eighth such reinsurance arrangement” and that it will “[improve Aetna’s] capital efficiency and reduces [its] weighted average cost of capital.”
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