Wilton Re To Acquire CNO’s Block Life insurance
Bermuda-based Wilton Re Holdings Limited announced definitive agreements to acquire Conseco Life Insurance Company from CNO Financial Group for approximately $237 million in cash, subject to the actual level of statutory capital and surplus at CLIC at closing.
As part of the transaction, Wilton Re’s U.S. operating company, Wilton Reassurance Company, will acquire 100% of the common stock of CLIC, a wholly owned subsidiary of CNO.
“We are very pleased to assist CNO with this important transaction,” said Chris Stroup, Chairman and CEO of Wilton Re. “Wilton Re has enjoyed a long working relationship with CNO and this In Force Solution provides them with a secure exit of the company’s closed block legacy business, which will free up capital and resources for redeployment to the company’s strategic initiatives.
“Wilton Re’s In Force Solutions are designed to relieve our client companies of non-strategic and low yielding businesses, so that management and their investors can focus on the fundamentals of their core business lines.”
“The acquired business is primarily comprised of closed blocks of individual traditional and interest-sensitive life insurance policies and deferred annuities. Wilton Re will acquire $3.4 billion of statutory reserves in the transaction, and transfer all operations of the business to its administrative services platform after an agreed upon transition period.
“As part of the agreement, Bankers Life and Casualty Company, a wholly owned life insurance subsidiary, will recapture $160 million of traditional life reserves previously reinsured to Wilton Re, paying approximately $28 million.”
The closing of the transaction remains subject to customary closing conditions and certain regulatory approvals, and is expected to occur in the second quarter of 2014.
Sutherland Asbill & Brennan and Locke Lord LLP acted as advisors to Wilton Re on the acquisition.
