A Midwestern insurer says it will be having another company coinsure old blocks of annuities.

Conseco Inc., Carmel, Ind., says 3 insurance company subsidiaries will coinsure most of their older in-force equity-indexed annuity and fixed annuity business with Reassure America Life Insurance Company, a unit of Swiss Re Life & Health America Inc., Stamford, Conn.

Swiss Re Life is a unit of Swiss Reinsurance Company, Zurich.

The transaction should generate about $76.5 million in ceding commissions and free about $175 million of the capital used to support the annuities, according to Conseco.

The deal, which is subject to regulatory approval in several states, calls for Reassure America to 100% coinsure the annuities, Conseco says.

Conseco would transfer the assets backing the annuities and about $3 billion in reserves to Reassure America, Conseco says.

The annuity blocks earned about $10 million after taxes during the first quarter.

“This transaction is an important step in improving the performance of the company,” Conseco Chief Executive Jim Prieur says in a statement about the deal. “It will allow us to retire 4 annuity administrative systems, which will further simplify our back office and reduce our operating expenses.”

Conseco could use the deal proceeds to buy back common stock or to invest in the business, Prieur says.