NU Online News Service, Dec. 5, 2003, 8:16 p.m. EST – Moody’s Investors Service, New York, says it has raised the insurance financial strength ratings of all insurance subsidiaries of Conseco Inc., Carmel, Ind., except Conseco Senior Health Insurance Company, to Ba3, from B3.[@@]
The rating agency has cut the rating of Conseco Senior to Caa1, from B3.
The agency also increased the rating on Conseco’s bank debt to Caa1, from Caa2.
Moody’s says it upgraded the bank debt rating and most of the insurance subsidiary ratings because of Conseco’s recent emergence from bankruptcy reorganization proceedings and Conseco’s successful efforts to sell its stake in the General Motors Building, a well-known office building in New York.
Improvements in Conseco’s investment portfolio, a significant decline in annuity surrenders and a decision to focus on selling more profitable, less capital-intensive insurance products also helped, Moody’s says.