On June 25, 2009, Conseco, Inc. (CNO) announced the coinsurance agreement of two of its insurance companies in its Conseco Insurance Group. The insurance companies will coinsure about 104,000 non-core life insurance policies with Wilton Reassurance Company, a Minnesota reinsurance company.Management expects this transaction to increase CNO's consolidated risk-based capital ratio by 8 percentage points, along with increasing statutory capital. Since CNO's results have been suffering from reduced financial flexibility for the last few quarters, the capital-building action will bring some relief. The transaction is expected to close in 3Q09.As part of this transaction, Wilton Reassurance will pay a ceding commission of approximately $57.5 million. Also, it will coinsure and administer 100% of these policies. The insurance companies of CNO will transfer approximately $409 million in cash and policy loans and $466 million of statutory policy and other reserves to Wilton Reassurance....