Conseco Inc. continues to face a significant hurdle on its path back to vigorous financial health.[@@]
Conseco, Indianapolis, emerged from bankruptcy reorganization proceedings, which had to do with consumer finance operations that are no longer part of the company, in September 2003.
The company is reporting $79 million in net income for the second quarter, up 76% from the total for the second quarter of 2004.
Expense management and improvements to distribution systems are starting to pay off, according to Conseco Chief Executive William Kirsch.
But Conseco is having trouble persuading A.M. Best Company, Oldwick, N.J., to award it an “A” rating.
Best recently improved its rating outlook on most of Conseco’s life and health subsidiaries to positive, from stable, but it has declined to assign “A” insurance financial strength ratings to Conseco’s main insurance units.