Wilton Re Executes Agreements to Reinsure Legacy Long-Term Care Insurance Policies from CNO Financial’s Bankers Life Subsidiary
August 01, 2018
(Norwalk, CT) Today, Wilton Re executed definitive agreements to reinsure legacy comprehensive and nursing home long-term care insurance policies (“LTC”) from Bankers Life and Casualty Company (“Bankers Life”), a subsidiary of CNO Financial Group, Inc. (“CNO”). In total, Wilton Re will assume $2.7 billion of LTC statutory reserves through administrative reinsurance agreements with CNO. CNO will pay a ceding commission of $825 million to reinsure the business. Wilton Re will assume administration for the business after a transition period.
The transaction is consistent with Wilton Re’s aspiration to develop risk, capital and administrative solutions to address our clients’ largest and most complex needs. The transaction also expands Wilton Re’s leading position for comprehensive run off management solutions in North America into the long term care insurance line of business. This represents the fourth significant deal between Wilton Re and CNO.
“This represents the inaugural long-term care insurance transaction for Wilton Re, which we view as in line with our core competencies and the value proposition we bring to our clients,” said Mike Fleitz, Chief Executive Officer of Wilton Reassurance Company. “We are pleased to assist CNO with this important transaction, which will provide CNO with a permanent transfer of its legacy LTC business risk. Wilton Re has enjoyed a long working relationship with CNO and this transaction provides them with a solution which will help to increase ROE, improve future cash flows and allow the company to focus on its core strategy of serving the needs of the middle-income market.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in 2018.
About Wilton Re
Wilton Re is a leading provider of In Force Solutions. Focusing on the North American life insurance market, the Company provides risk capital and related services including M&A. Our administrative capabilities provide the industry with efficient and effective runoff management of legacy blocks of life insurance and annuity contracts.
Wilton Re is committed to creating solutions that enhance value for our clients, their policyholders and shareholders. Our approach is centered on building lasting relationships with our business partners and sharing resources, industry knowledge and experience in an open, transparent manner.
To review CNO’s press release regarding the transaction, please go here.
CNO Financial Group, Inc. is a holding company. The company’s insurance companies – principally Bankers Life and Casualty Company, Colonial Penn Life Insurance Company and Washington National Insurance Company – primarily serve middle-income pre-retiree and retired Americans by helping them protect against financial adversity and provide for a more secure retirement.
For more information, visit CNO online at https://www.cnoinc.com/