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November 19, 2003 at 07:00 PM
NU Online News Service, Nov. 19, 2003, 3:05 p.m. EST – Back from bankruptcy, Conseco Inc. reported earnings and vowed to reclaim stronger ratings.
Its top priority will be to get its ratings raised, according to Bill Shea, CEO. A second, related priority will be to refinance current expensive debt with cheaper bank debt and preferred stock issues, Shea says.
An aggressive fix of the long term care business in Conseco’s Insurance Group business will be one of the ways that post-bankruptcy Conseco becomes a stronger company, he promises.
Shea distinguishes between the Insurance Group’s LTC business and the LTC business at its Bankers Life and Casualty unit, which he says is healthy business.
Indeed, in its 2003 earnings report for third quarter and nine months, Conseco says that projected LTC loss ratios at Bankers are 65% to 85%, compared with 100% to 120% at the Insurance Group over the next several years.
In its report, Conseco says that a blended LTC loss ratio for the two units was 96% for September 2003, 167% for the two months ending with Aug.31, 2003, and 145% for the three months ending with Sept. 30, 2002.
