@article {Alison70, author = {McKie Alison}, title = {Life Insurance Securitization: An Issuer{\textquoteright}s Perspective }, volume = {14}, number = {3}, pages = {70--74}, year = {2008}, doi = {10.3905/JSF.2008.14.3.070}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Securitization is one of many tools available to a (re)insurer for risk or capital management purposes. The use of the capital markets to absorb insurance and related financial market risks, through securitization, increases the available capital to support these risks taken by (re)insurers and leads to greater capacity and a more efficient market. Packaging life insurance risks into insurance-linked securities (ILS) enables sponsors to access additional capital in the fixed-income market, whose players value the ability to diversify risks and assets, and the opportunity to invest in instruments with a range of durations at attractive spreads. Life ILS typically fall into three broad categories: first, catastrophe cover to manage peak risks, i.e., pandemic protection; second, embedded value (EV) securitizations to help firms manage their capital more efficiently; and, third, financing transactions, such as redundant reserve financing, i.e., {\textquotedblleft}XXX{\textquotedblright} or {\textquotedblleft}AXXX{\textquotedblright} securitizations where little or no insurance risk is transferred.TOPICS: Technical analysis, fixed income and structured finance}, issn = {1551-9783}, URL = {https://jsf.pm-research.com/content/14/3/70}, eprint = {https://jsf.pm-research.com/content/14/3/70.full.pdf}, journal = {The Journal of Structured Finance} }