SEC Filing Summary: Conseco, Inc. (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Conseco, Inc. on January 26, 2010. The filing discloses the completion of a previously announced reinsurance transaction involving the Company's subsidiary, Bankers Life and Casualty Company ("Bankers Life").
Key Financial Metrics
The filing details a specific financial event rather than providing comprehensive period-end financial statements. Key metrics disclosed include:
- Ceding Commission Received: Approximately $44 million paid by Wilton Reassurance Company ("Wilton Re") to Bankers Life at closing.
- Transaction Scope: Coinsurance of approximately 234,000 life insurance policies.
- Coverage Share: Wilton Re assumed 50% of the risk for the coinsured policies.
- Service Role: Bankers Life will continue to service and administer the policies.
The filing text does not provide clear values for total revenue, net profit, operating cash flow, margins, total debt, or liquidity ratios for the reporting period.
Material Changes
The primary material change is the finalization of the coinsurance agreement with Wilton Re, effective October 1, 2009. This transaction resulted in an immediate cash inflow of $44 million and a reduction in the risk exposure for 234,000 policies, with 50% of the liability transferred to the reinsurer.
Outlook, Risks, and Management Commentary
Management confirmed that all necessary regulatory approvals were received to close the transaction. The filing notes that the information provided under Item 7.01 is furnished and not deemed "filed" for purposes of Section 18 of the Exchange Act, limiting its incorporation by reference into other documents. No specific forward-looking guidance, risk factors, or contingencies beyond the completion of this transaction are detailed in this specific 8-K text.
Investor Verification Checklist
- Verify the impact of the $44 million ceding commission on the Company's cash position and earnings for the period ending December 31, 2009.
- Confirm the ongoing administrative costs associated with servicing the 234,000 policies post-transaction.
- Review the full press release (Exhibit 99.1) for additional details on the terms of the coinsurance agreement.
- Assess the creditworthiness of Wilton Re as the new reinsurer for 50% of the policy block.