Conseco shares soar on plans to transfer unit

NEW YORK (Reuters) - Shares of Conseco Inc (CNO.N), a Midwestern U.S. life and accident insurer, rose sharply on Monday after it said it would transfer its long-term care business into an independent trust.

Conseco shares were trading 12.8 percent higher at $9.70 a share in morning trading on the New York Stock Exchange after reaching as high as $10.00 earlier.

Conseco, in a statement, said it would transfer the stock of Conseco Senior Health Insurance Company to an independent trust named Senior Health Care Oversight Trust, for the benefit of policyholders. It would be run by management transferred from Conseco.

The deal is subject to regulatory approval.

Conseco expects to record accounting charges of about $1.2 billion related to the transaction, about $500 million of which would be recognized in the second quarter.

(Reporting by Lilla Zuill, editing by Gerald E. McCormick)