This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A.M. Best Places Ratings Of Conseco Life Insurance Company Under Review With Positive Implications

A.M. Best has placed under review with positive implications the financial strength rating (FSR) of B- (Fair) and issuer credit rating (ICR) of “bb-” of Conseco Life Insurance Company (CLIC). CLIC is a life/health subsidiary of CNO Financial Group, Inc. (CNO Financial) [NYSE: CNO]. Both companies are headquartered in Carmel, IN.

The rating actions follow the recently announced definitive agreement by CNO Financial to sell all of CLIC’s common shares to Wilton Reassurance Company (Wilton Re) (Minneapolis, MN) for approximately $237 million in cash. The transaction, which includes CLIC’s run-off blocks of traditional life, interest sensitive life and annuity lines of business, is expected to close by mid-year 2014.

CNO Financial has been actively de-risking its legacy blocks of business within its other CNO business segment in recent months. With this transaction, CNO Financial will significantly reduce its exposure to life and annuity closed blocks of business within other CNO business so that the organization can concentrate more on its core lines of business.

The under review status reflects A.M. Best’s view that CLIC will benefit from being a part of the Wilton Re organization that focuses on the life and annuity market segments. The ratings will remain under review pending the completion of the transaction, during which time A.M. Best will discuss with Wilton Re’s management CLIC’s strategic fit within the organization.

The FSR, ICRs and debt ratings of CNO Financial and its subsidiaries are unchanged. However, A.M. Best views the recent long-term care reinsurance agreement with Beechwood Re and this current transaction, pending its closing, as a credit positive for CNO Financial.

The methodology used in determining these ratings is Best’s Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best’s rating process and contains the different rating criteria employed in the rating process. Best’s Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.



1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs