A Midwestern insurer says it has completed the process of getting another company to coinsure old blocks of annuities.

Conseco Inc., Carmel, Ind., says 3 insurance company subsidiaries now have coinsured 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., Armonk, N.Y.

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

As expected, the transaction generated about $76.5 million in ceding commissions and freed $175 million in capital used to support the annuities, Conseco says.

Conseco is transferring the assets backing the annuities and about $3 billion in reserves to Reassure America, Conseco says in the description of the deal.

Conseco expects to record about $65 million in after-tax charges related to the deal in the third quarter, the company says.

Conseco reports that the deal will help it streamline back-office operations by permitting it to get rid of 4 annuity administrative systems.

Conseco may use the $251 million in proceeds from the sale to buy back common stock or make investments in the business, according to Conseco Chief Executive C. James Prieur.