Carmel, Ind.-based Conseco received regulatory approvals to have Wilton Reassurance Co. coinsure about 104,00 non-core life insurance policies, the company said.

Jim Prieur

In the transaction, Wilton Re is paying a ceding commission of about $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 about $409 million in cash and policy loans, as well as about $466 million of statutory policy and other reserves.

The effective date was Jan. 1.

“This transaction improves Conseco’s consolidated risk-based capital ratio and increases statutory capital,” said Conseco CEO Jim Prieur in a statement. “In addition, it further simplifies our administrative operations as we focus on our core insurance businesses.”

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