For co-insuring life insurance policies with Wilton Re
Conseco has announced a new agreement under which its Bankers Life and Casualty Company subsidiary (Bankers Life) will co-insure, with an effective date of October 1, 2009, about 237,000 life insurance policies with Wilton Reassurance Company (Wilton Re).
Reportedly, Wilton Re will pay a ceding commission of approximately $45m and 50% co-insure these policies, which will continue to be administered by Bankers Life.
Jim Prieur, CEO of Conseco, said: This transaction is expected to increase Conseco’s consolidated risk-based capital ratio by 9% points, along with increasing statutory capital by the amount of the ceding commission.”
As per the transaction, Bankers Life intends to transfer to Wilton Re approximately
$95m in investment securities and policy loans and $140m of statutory policy and other liabilities. The transaction, which is subject to the approval of insurance regulators in Illinois and Wisconsin, is expected to be completed in the fourth quarter of 2009.