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.