CNO Financial Group has signed a deal to sell its complete share in Conseco Life Insurance Company (CLIC), the company’s wholly owned life insurance subsidiary, to Wilton Reassurance Company (Wilton Re).
CLIC primarily deals with closed block interest-sensitive and traditional life insurance and annuities.
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Once completed, the transaction will reduce statutory run-off reserves by $3.4bn which were reported in the Other CNO Business segment.
CNO Financial Group CEO Ed Bonach said that the disposition of these low returning and historically volatile closed-blocks of business marks another significant milestone for the company.
"The divestiture of CLIC and the recently announced LTC reinsurance transaction enable us to shed the legacy of the past and devote our attention to our core business segments and meeting the needs of the fast growing and under-served middle-income market.
"These transactions will unlock stranded capital, be accretive to ROE, reduce the risk profile of the company and further support the decision to double our common stock dividend," Bonach added.
The proposed sale of CLIC is subject to customary closing conditions and required regulatory approvals, and is expected to close in mid-2014.
