CNO Financial Group has wrapped up the divesture of Conseco Life Insurance Company (CLIC) to Wilton Reassurance Company (Wilton Re), as part of its business overhaul strategy.
Commenting on the disposal of the life insurance unit, CNO Financial Group CEO Ed Bonach said: "The sale of CLIC marks a significant milestone for CNO."
"This transaction reduces the go forward risk profile of the company and will allow management to focus on our core businesses serving the needs of the fast growing and underserved middle market."
The company said that the transaction has fetched nearly $220m in net proceeds based upon the estimated balance sheet of CLIC as of 30 June 2014 and after anticipated transaction costs and intercompany transactions completed in connection with the closing.
Moreover, Bankers Life, a wholly owned CNO life insurance subsidiary, reimbursed $28m to recapture a block of traditional life insurance worth $160m that was previously reinsured to Wilton Re. CNO recorded a GAAP net loss of $298m related to the sale of CLIC in the first quarter of 2014.
Wilton Re plans to transfer all operations for the business to its administrative services platform after a transition period. The acquired business has over $3.4bn of statutory reserves.
Wilton Re chairman and CEO Chris Stroup said: "We are pleased to serve CNO and the policyholders of CLIC with this important transaction."
"Wilton Re’s In Force Solutions are designed to provide companies with complete and safe exits of underperforming and non-core business, and our administration platform provides a high standard for continuing service to affected policyholders."
CNO Financial Group through its insurance subsidiaries – principally Bankers Life and Casualty Company, Colonial Penn Life Insurance Company and Washington National Insurance Company- servse middle-income pre-retiree and retired US denizens.
Image: Hub International purchases Mississippi’s Fox/Everett. Photo: courtesy of PinkBlue/FreDdigitalPhotos.net.