CNO Financial has announced the establishment of CNO Bermuda Re, a Bermuda-based captive reinsurer, and is now working to complete an initial transaction that will cede $6.2 billion in fixed indexed annuities to it.
“We have received all necessary approvals and are in the process of implementing the transaction with an effective date of October 1, 2023,” said Paul McDonough, CNO’s chief financial officer, as the Group released its third quarter results this week.
He continued: “Under the treaty, we are ceding approximately $6.2 billion of in-force fixed indexed annuity statutory reserves in addition to new FIA business from our U.S. domestic company, Bankers Life and Casualty to the Bermuda company.
“We are proud to have joined the Bermuda insurance community and look forward to working closely with the Bermuda Monetary Authority as we build out this business.”
CNO Financial reported net income of $167.3 million in the third quarter of this year, compared with $175.9 million during the same period the year prior.
New annualised premiums in total health insurance were up 14% in the recent quarter to $48.3 million, and total life insurance NAP increased by 11% to $50 million, according to a company statement.
Agent recruitment, new products and technology programs were a strong point for the insurer in the third quarter, Chief Executive Officer Gary Bhojwani noted.
