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Conseco Reports Third Quarter Results
Date:10/31/2007

$156 million $151 million

Benefit ratio(a) 105.8% 98.2%

Interest-adjusted benefit ratio

(a non-GAAP measure)(b) 74.5% 68.8%

Conseco Insurance Group (CIG) segment:

Medicare Supplement:

Earned premium $57 million $62 million

Benefit ratio(a) 68.6% 66.8%

Specified Disease:

Earned premium $90 million $89 million

Benefit ratio(a) 103.2% 73.6%

Interest-adjusted benefit ratio

(a non-GAAP measure)(b) 70.3% 41.2%

Other Business in Run-off segment:

Earned premium $77 million $83 million

Benefit ratio(a) 137.4% 136.0%

Interest-adjusted benefit ratio

(a non-GAAP measure)(b) 75.1% 83.1%

(a) The benefit ratio is calculated by dividing the related product's

insurance policy benefits by insurance policy income.

(b) The interest-adjusted benefit ratio (a non-GAAP measure) is calculated

by dividing the product's insurance policy benefits less interest

income on the accumulated assets backing the insurance liabilities by

insurance policy income. Interest income is an important factor in

measuring the performance of longer duration health products. The net

cash flows generally cause an accumulation of amounts in the early

years of a policy (accounted for as reserve increases), which will be

paid out as benefits in later policy years (accounted for as reserve

decreases). Accordingly, as the policies age, the benefit ratio will

typically increase, but the increase in the change in
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SOURCE Conseco, Inc.
Copyright©2007 PR Newswire.
All rights reserved

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