In our Other Business in Run-off segment, we recognized a pre-tax operating loss of $2.9 million in the third quarter of 2007, compared to a loss of $13 million in the third quarter of 2006. Results in the third quarter of 2007 were positively impacted by a net $6.6 million reserve reduction (reflecting an out-of-period release of active life reserves of $20.1 million identified by remediation procedures and $13.5 million reserve increase due to changes to certain actuarial estimates).
The Corporate Operations segment includes our investment advisory subsidiary and corporate expenses.
Net realized losses of $28.1 million (net of taxes) in the third quarter of 2007 consisted of losses from market value declines on the assets transferred pursuant to our 100% annuity coinsurance transaction, and from sales of mortgage-backed securities collateralized by sub-prime residential mortgage loans. In the third quarter of 2007, we recorded a charge of approximately $76.5 million related to the coinsurance transaction. The results from the third quarter of 2007 reflect additional pre-tax costs of $16.4 million related to the litigation settlement we entered into in the second quarter of 2006.
In addition to the sales of proprietary products, Bankers Life, through a partnership with Coventry, distributes risk-share Medicare PDP and private- fee-for-service plan (PFFS) through their career agents.
At Bankers Life (career distribution), total sales in 3Q07 were $56.5 million, down 2% from 3Q06. Bankers' sales were up 11% for the first nine months of 2007.
At Conseco Insurance Group (independent distribution), total sales,
including sales of PDP through Coventry, in 3Q07 were $18.1 million, down
31% from 3Q06, with strong gains in specified disease sales offset by
decreases in Medicare supplement and annui
|SOURCE Conseco, Inc.|
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