A Midwestern insurer is consolidating some back-office operations in its headquarters city.

Conseco Inc., Carmel, Ind., probably will eliminate or substantially modify about 450 positions in connection with the changes, the company estimates.

Current consolidation plans include the policyholder services, premium processing and claims operations of Conseco’s Bankers Life and Casualty business, which is based in Chicago, and Conseco Insurance Group, which is based in Carmel.

The consolidation will not affect Conseco’s Philadelphia-based Colonial Penn unit.

Steven Stecher, executive vice president for operations, will run a new operations group that will be based in Carmel, Conseco says.

John Wells, a senior vice president, will take charge of a unit that will combine the Bankers Life long term care operation and the LTC closed block operation.

The consolidation should save about $25 million per year starting in 2008, Conseco predicts

Conseco is revamping its back-office operations to reduce the duplication of efforts left over as a result of acquisitions completed in the 1990s, Conseco Chief Executive James Prieur says in a statement.

“Combining our back office operations allows us to leverage our scale, simplify our operating environment, significantly reduce costs and improve service for agents and policyholders,” Prieur says.