Conseco gets approval to complete reinsurance transaction with Wilton Re

Conseco has received the required regulatory approvals for the transaction under which two insurance companies in its Conseco Insurance Group are coinsuring, effective January 1, 2009, approximately 104,000 non-core life insurance policies with Wilton Reassurance Company.

In the transaction, Wilton Re is paying a ceding commission of approximately $57.5 million, 100% coinsuring the policies, and will take over responsibility for future administration of the coinsured policies. The Conseco companies are transferring to Wilton Re approximately $409 million in cash and policy loans and approximately $466 million of statutory policy and other reserves.

Most of the policies involved in the transaction were issued by companies that were later acquired by Conseco. Approximately 70% of the policies being coinsured are from Washington National Insurance Company and the remainder are from Conseco Insurance Company.

Jim Prieur, Conseco's CEO, said: "The transaction improves Conseco's consolidated risk-based capital ratio and increases statutory capital. In addition, it further simplifies our administrative operations as we focus on our core insurance businesses."