SQ ReVita II IC Limited: 07 December 2016
SQ ReVita II IC Limited, a cell of White Rock Insurance (Guernsey) ICC Limited incorporated under the laws of Guernsey as an incorporated cell company with limited liability, will issue notes.
The Note Issuer will use the principal to provide a reinsurance commission under a Proportional Reinsurance Agreement entered into with Atlanticlux Lebensversicherung S.A, (the "Ceding Insurer") under which the Note Issuer has accepted certain risks relating to a discrete number of existing in-force life insurance policies.
The repayment of the notes to the investors is ultimately exposed to the lapse risk of the Ceding Insurer's portfolio of life insurance contracts which are the subject matter of the Proportional Reinsurance Agreement. Policyholders have the unilateral and irrevocable right to lapse (terminate) their life insurance policies at any time. Such termination will decrease (i) the amount of Reinsurance Premium and, ultimately, (ii) the amount of monthly Floating Distributions. Such reduction of Floating Distributions can result in delays in the final amortisation of the notes. Depending upon the severity of such deviations this can vary from a few months to several years and in extreme scenarios may result in a failure of the notes to fully amortise at all.