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November 08, 2004 at 07:00 PM
Consumers seem to be happy to do business with the new Conseco Inc., Carmel, Ind.[@@]
The life and supplemental health insurer emerged from bankruptcy reorganization during the third quarter of 2003. At the time, company executives warned that Conseco might have trouble selling annuities and other products that depend partly a company’s credit ratings and financial strength ratings.
But sales of annuities are up, and the Bankers Life and Casualty Company unit is collecting more life insurance and supplemental health premium revenue, Conseco says.
The company is reporting $78 million in net income for the third quarter on $1.1 billion in revenue, up from about $100 million operating income on $1.1 billion in revenue for the third quarter of 2003.
The third-quarter 2003 operating income figure is not really comparable to the latest net income figure, because it includes many gains and charges related to the bankruptcy reorganization. Conseco itself officially reports 2 columns of results for the third quarter of 2003. The first column gives information about the company’s performance in August and September, after it reorganized, and the second column gives the results from July, before the company reorganized.
But overall first-year annuity deposits increased 120% at the Conseco Insurance Group unit, to $11 million, and first-year annuity deposits at Bankers Life increased 20%, to $254 million, Conseco says.
