CARMEL, Ind., May 7 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) today reported results for the first quarter of 2008.
"CNO set a new quarterly sales record with an increase of 10.7% over the same period last year," CEO Jim Prieur said. "This performance included an 11% increase at Bankers Life and a 22% increase in the core business (67% increase in total sales including new product offerings) of Colonial Penn. Conseco Insurance Group's sales declined 21%, but specified disease products, CIG's highest margin product, rose a significant 23%.
"We continued to make steady progress for the third consecutive quarter in our long-term care closed block of business, which showed a loss of $1.3 million, including amortization of intangibles of more than $5 million," Prieur said. "The financial results of our Bankers Life business decreased this quarter, primarily due to higher than expected claims in its long-term care business."
"The stability of our results improved considerably, with no
significant out-of-period adjustments in the quarter", said CFO Ed Bonach.
"Our profitability was impacted negatively by the impact of difficult
financial markets that similarly affected much of our industry, resulting
in net realized investment losses (net of related amortization and taxes)
of $26.5 million in the quarter. Gross realized losses (before amortization
and taxes) included $41.3 million from other-than-temporary impairments."
First quarter 2008 results:
-- Total New Annualized Premium ("NAP") (1): $148.5 million, up 11% from
1Q07 (and our highest quarter since our reorganization in 2003).
-- Income before net realized investment losses, corporate interest and
taxes ("EBIT") (2)
|SOURCE Conseco, Inc.|
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