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Conseco To Add To Reserves

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A Midwestern insurer says it expects to increase the amount of cash it is setting aside to accommodate the cost of a lawsuit settlement.

Conseco Inc., Carmel, Ind., is estimating that it will add $35 million in reserves, before taxes, in connection with reserves for the In Re Conseco Life Insurance Company Cost of Insurance Litigation.

Conseco previously announced $215 million in expenses related to the settlement, the company says.

The final amount of the settlement, which involves policies sold by insurers that later were acquired by Conseco, is hard to predict, because the final amount will depend on variables such as the election forms that the affected policyholders submit, Conseco says.