Conseco Inc. says it has agreed to a reinsurance arrangement that could increase the company’s overall risk-based capital ratio by 9 percentage points.
Wilton Reassurance, Plymouth, Minn. – a unit of Wilton Re Holdings Ltd., Wilton, Conn. – has agreed to pay Bankers Life and Casualty Company, a Conseco subsidiary, a $45 million ceding commission and provide 50% coinsurance for a block of about 237,000 life insurance policies.
Bankers Life would continue to administer the policies.
Wilton Re would get about $95 million in investment securities and policy loans along with $140 million in liabilities.
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The block of policies to be coinsured earned about $2 million before overhead in the third quarter, Conseco reports.