CNO Financial Group Announces Sale of Closed Block Life Insurance Subsidiary to Wilton Re
PR Newswire Association LLC |
As part of the agreement,
CNO also announced that its board of directors has approved an increase in the quarterly dividend to
"The disposition of these low returning and historically volatile closed-blocks of business marks another significant milestone for the company," said
The purchase price consists of the value ascribed to the closed blocks of business plus
CNO estimates that the announced transactions will result in a pro forma* GAAP after tax loss of approximately
The sale of
The company will host a conference call to discuss today's announcement at
Live Call
(888) 251-7470 (Domestic)
(706) 679-1704 (International)
Conference ID: 5049290
Replay
(855) 859-2056 (Domestic)
(404) 537-3406 (International)
Conference ID: 5049290
* Refer to the accompanying table for assumptions used to estimate the pro forma impacts.
About
-Table Follows-
PRO FORMA IMPACTS OF THE ANNOUNCED TRANSACTION
The pro forma impacts are calculated as if the sale of
Pro forma net loss: |
|
Loss on sale of |
|
Cash proceeds received (a) |
|
Net assets sold |
(527) |
Subtotal |
(290) |
Reinsurance recapture: |
|
Amount paid by Bankers Life |
(28) |
Net assets received |
29 |
Subtotal |
1 |
Transaction expenses and other |
(9) |
Loss before income taxes |
(298) |
Income tax expense (b) |
5 |
Pro forma loss |
|
Pro forma reduction to shareholders' equity: |
|
Pro forma net loss as summarized above |
|
Decrease in accumulated other comprehensive |
|
income related to the unrealized gains in |
|
|
(144) |
Pro forma reduction to shareholders' |
|
equity |
|
(a) |
Includes |
(b) |
A tax gain will be recognized as a result of the announced transactions due to the tax basis of CLIC. The tax gain will be reduced by non-life net operating loss carryforwards which are fully offset by a valuation allowance. Accordingly, the tax impacts of the announced transactions are expected to be minimal. |
Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in this press release relative to markets for
SOURCE
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