Top executives of Conseco Inc. say they expect the company’s closed block of long term care insurance policies to turn a profit in 2008.
In a conference call with investors, Jim Prier, chief executive of Conseco, Carmel, Ind., said cost-cutting and premium increases should put the LTC block in the black by Dec. 31, 2008.
Conseco increased reserves for the closed block by $110 million in the second quarter alone.
The company is predicting that 2 rounds of premium increases will help it collect an additional $57 million from holders of existing policies.
Conseco also has tightened claim-management procedures, executives said.