Aviva Makes Life Reserve Financing Deal
July 14, 2010 by NU ONLINE NEWS SERVICE
Published 7/13/2010
Aviva Life and Annuity Company and a sister company, Aviva Life and Annuity Company of New York, have arranged $325 million in reserve financing.
Aviva Life and Aviva Life of New York are both units of Aviva USA Corp., Des Moines, Iowa, which is, in turn, a unit of Aviva P.L.C., London (NYSE:AV).
A unit of Crédit Agricole S.A. Paris, helped the Aviva units get the financing.
The financing will back Regulation Triple X term life obligations and Regulation AXXX universal life obligations, Aviva says. The term life products have level-premium terms of 10, 20 and 30 years, and the UL products include equity indexed products as well as guaranteed products.
Aviva is using Aviva Re USA II Inc., a wholly owned Aviva reinsurance captive subsidiary, as a mechanism for providing reinsurance credit based on the Crédit Agricole letters of credit, Aviva says.
Financing market conditions remain “challenging,” Aviva says.
