NU Online News Service, Aug. 7, 12:05 p.m. – Conseco Inc., Carmel, Ind., is reporting a $26 million net loss for the second quarter on $2.1 billion in revenue, compared with a net loss of $405 million on $2 billion in revenue for the second quarter of 2000.
Operating earnings from continuing operations increased 78%, to $70 million.
Operating earnings exclude $121 million in losses and charges, including $22 million, after taxes, in losses on investments sold during the quarter; $39 million, after taxes, in losses and charges on discontinued operations; and $23 million, after taxes, on making changes in yield assumptions for annuity operations.
Conseco sells insurance, annuities, consumer loans and other products and services.
The company has excluded many items from operating income because “they are ?noise’ in the two-part business harmony we are building in the NEW Conseco,” according to a memo from Conseco Chairman Gary Wendt to Conseco shareholders. “The value we are building for shareholders is in the earnings of the Insurance and Finance businesses?. Going forward, we want everyone to be able to make an ?apples to apples’ comparison about operating performance.”
Collections increased 23% for fixed annuities, to $217 million, but they fell 45% for equity-indexed annuities, to $100 million, and 58% for variable annuities, to $114 million.
Figures comparing life insurance sales for the latest quarter to the second quarter of 2000 were not immediately available.