Question-and-Answer Session
Operator
(Operator Instructions) Your first question will come from the line of Randy Binner with FBR Capital Markets.
Randy Binner - FBR Capital Markets
I just wanted to clarify something with the key debt covenant slide, page 16 of the presentation. It looks like on the statutory capital requirement that on a pro forma basis that goes to $1.314 billion. I just wanted kind of to clarify that, that's something when we talked about the capital buffer to the debt covenant, it seemed there was more focus on the debt to capital ratio before, but that margin on stat capital looked to be thinner. So, I just would like to get color on how you are comfortable with that given the credit environment and potential losses coming through. I guess the answer is going to include the stat dividend upstream ability and the other sources and uses of funds, but really I just like to see more color and more confidence that there will be an adequate buffer there, pro forma given the credit environment?
Ed Bonach
Thanks Randy, this is Ed. Yes, definitely part of the answer is the statutory earnings power of our core businesses, which again is approximately $200 million annually after the separation of Senior Health. Secondly, we do anticipate as we indicated having liquidity at the holding company in excess or approximately in the range of one year's debt service, that does not prohibit was from contributing capital to the insurance companies if needed.
Thirdly, as we have talked before, there are other things that we can do to manage our capital as indicated on the debt to cap and buying back convertibles, but more specifically, reinsuring books of business that freeze up required capital, as well as generating actual extra capital through a seeding commission and with our Banker's Long-Term Care business we continue to look to reduce our exposure there, as even with the separation of Senior Health, we believe we are overweighed from a risk standpoint for a company of our size and to the extent that we do reinsure some of the Banker's Long-Term Care business. That again would free up capital, generate cash through a seeding commission.
Randy Binner - FBR Capital Markets
Great, I have just two quick follow ups and so it sounds like you feel that Bankers Life would have a bid if you will in the reinsurance market, where someone would pay a seeding commission, given I guess improved results in Long-Term Care?
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