Conseco, a provider of life insurance and medicare supplement insurance, has announced that two of its subsidiaries will coinsure 104,000 noncore life insurance policies with Wilton Reinsurance. The transaction is expected to increase the company’ capital levels, reported Trading Markets.
As per the agreement, Wilton Re would pay a ceding commission of about $57.5 million and 100% coinsure and administer the policies. The insurance companies, part of its Conseco Insurance Group unit, would transfer $409 million in cash and policy loans, and $466 million in statutory policy and other reserves to Wilton Re.
Jim Prieur, CEO of Conseco, said: Completing this step is expected to increase Conseco’s consolidated risk-based capital ratio by eight percentage points, along with increasing statutory capital.
