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CNO Financial Group Inc. said the majority of the investments held in a trust with Beechwood Re, the reinsurer tied to to embattled hedge fund Platinum Partners, are in the category of the most-difficult-to-value assets.
About $302 million of the $591 million assets in the trust are considered Level 3, meaning market prices are so scarce that companies use internal models to gauge their value, CNO said Monday in a regulatory filing. Level 1 assets, for which market prices are most readily available, accounted for $58 million, and Level 2 for $231 million. A quarterly report from Beechwood at the end of June also showed that the trusts held a $6.8 million loan to a Platinum-managed fund, the filing shows.