NU Online News Service, Aug. 14, 2003, 7:55 p.m. EDT – Conseco Inc., Carmel, Ind., says in a quarterly report filed with the U.S. Securities and Exchange Commission that the financial problems at its consumer finance unit have been causing headaches for its insurance operations.
Conseco has filed for protection for creditors under Chapter 11 of the U.S. bankruptcy code for the consumer finance operations and the parent company. The company’s life and health insurance units are still solvent, and Conseco is hoping they will form the heart of a profitable new business once Conseco emerges from bankruptcy reorganization.
But the risk-based capital level at one Conseco life subsidiary, which Conseco did not name, has fallen low enough that the unit must give insurance regulators in its home state a plan proposing corrective actions aimed at improving its capital position, Conseco says.
Conseco also has discontinued selling some products and changed the way it sells others, the company says.
The company as a whole is reporting a $21 million net loss for the second quarter on $1.2 billion in revenue, compared with a $1.3 billion net loss on $984 million in revenue for the second quarter of 2002.
The company managed to increase total revenue for many of its life and health insurance products.