Midwest Holding Inc. subsidiary American Life & Security Corp. has entered into a funds withheld co-insurance and modified co-insurance agreement with Barbados-based Ironbound Reinsurance Co. Ltd.
The agreement took effect July 25 and was finalized July 31. It provides that as of the effective date, American Life ceded on a funds withheld co-insurance and modified co-insurance basis an initial 95% quota share of certain liabilities in connection with certain multiyear guarantee annuities business of American Life. The quota share, which the reinsurer accepted, may be adjusted from time to time by American Life, subject to a 30% floor under certain conditions.
Additionally, the agreement states that Ironbound Reinsurance must pay American Life an administrative expense fee that covers the cost of providing all administrative and other services needed or appropriate as regards the administration and distribution of the reinsured policies and the reinsured liabilities.