Conseco Inc. says it will delay filing of a financial statement for 2007 because it found it had overstated its shareholders’ equity.
Conseco, Carmel, Ind., expects to file its 2007 Form 10-K around March 17. It asked the Securities and Exchange Commission for the extension to correct errors it identified while it was attempting to fix flawed internal controls it disclosed in previous filings with the SEC.
The company says it will restate its financial reports for 2005 and 2006, along with other statements for 2003, 2004 and 2007.
The errors resulted in an overstatement of shareholders’ equity reported at the end of the 3rd quarter 2007 in a range of $15 million to $35 million, the company said. The company estimates that the correction to net income will not exceed $15 million, plus or minus, for any previous annual period.
The most significant errors were found in adjustments to benefits and liabilities for products in the specified disease and life blocks of business issued by its Conseco Insurance Group as well as runoff policies in its long term care insurance block of business, the company says.