CARMEL, Ind., Oct. 31 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) today reported results for the third quarter of 2007.
"Third Quarter results reflect a number of significant events, as progress on our program to position Conseco for future profitability and growth is increasingly evident," CEO Jim Prieur said. "We saw continued strong growth in both our Bankers Life and Colonial Penn businesses, while Conseco Insurance Group, even with a decline in sales during the quarter, produced new business expected to be more profitable. Importantly, continued progress also was evident on the turnaround in our run-off long-term care block, with our claims reserve volatility reduced this quarter following the reserve strengthening of the previous quarter. With only a small loss in the quarter, we are on target for that block to become profitable next year."
"The majority of our organizational realignment is now complete as well, with all of our customer service calls now being handled in our Carmel, Indiana offices," Prieur said.
"Our just announced agreement in which we will invest $63 million to recapture a block of Colonial Penn life insurance business comprising approximately $50 million annual premium that had been ceded in 2002 to a subsidiary of Swiss Re, is a significant investment in the growth of this high-return core business," said Chief Financial Officer Ed Bonach. "This transaction is expected to be immediately accretive to earnings and return on equity. Our October 12, 2007, announcement that we completed the 100% coinsurance of an older block of fixed and equity-indexed annuities is another important step in improving Conseco's performance."
"Conseco also further executed on its share repurchase program in the third quarter," Bonach said, "with the purchase of 2.4 million shares at an average price of $14.22 per share, for a total of $34.7 million."
Third quarter 2007 results:
-- Net operating income (loss) (1)
|SOURCE Conseco, Inc.|
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