A giant European insurer has sold about $1.3 billion in securities linked to life insurance mortality risk to investors.
AXA S.A., Paris, securitized the mortality risk through a “special purpose vehicle,” OSIRIS Capital P.L.C.
AXA also has sold the equivalent of $450 million in mortality indexed notes.
The performance of the notes will depend on mortality levels in France, Japan and the United States, AXA says.
France will account for 60% of the fluctuations in the index; Japan, 15%; and the United States, 15%.
“This first offering was nearly 4 times oversubscribed,” AXA says.