NU Online News Service, May 20, 2003, 4:42 p.m. EDT – Conseco Inc., Carmel, Ind., is reporting a $19 million net loss for the first quarter on $1.2 billion in revenue, compared with a $3 billion net loss on $1.3 billion in revenue for the first quarter of 2002.
The 2002 results included a $2.9 billion charge for the cost of writing down the stated value of past acquisitions.
Conseco is now reorganizing its operations under the protection of Chapter 11 of the U.S. Bankruptcy Code. Conseco’s insurance operating companies are still solvent. Conseco hopes to sell its consumer finance unit and go forward as a company that focuses on the sale of insurance.
Conseco has suggested that it might have to cope with consumer wariness about its finances by changing its insurance product mix.
The insurance unit is reporting $57 million in operating income on $1.1 billion in revenue, down from $133 million in operating income on $1.2 billion for the first quarter of 2002.
Life insurance revenue fell to $154 million, from $182 million. But revenue from Medicare supplement insurance sales increased to $576 million, from $573 million, and revenue from annuities, which are contracts backed by the credit of Conseco’s insurance subsidiaries, increased to $39 million, from $28 million.