Conseco Plans To Consolidate Units

In addition, Prieur said, the merger would provide an estimated $2.5 million of annual savings by eliminating the costs to administer and file financial reports and related audits and examinations on 3 statutory companies and by reducing overall premium tax payments.

Offsetting these savings would be about $8 million of one-time expenses over the next 12 months, including costs to update and restock forms, update IT systems, modify agent appointments, and complete other changes arising from the merger, Conseco says.

Upon completion of the merger, WNIC would have about $5.3 billion of statutory assets, 925,000 policies in force, $625 million of annual premiums, and $4.3 billion of statutory policy reserves, comprised of specified disease and other supplemental health policies (58%), annuities and other deposits (33%) and life insurance policies (9%), Conseco says.