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Conseco Delays Annual Report; To Restate LTC Reserves

By Staff Writer

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Conseco Inc. is delaying the due date of its annual financial report to March 17.

In a filing with the Securities and Exchange Commission, Conseco, Carmel, Ind., also said it will restate reserve assumptions for its long term care insurance policies. The company said it has been informed by the SEC staff that its previous reserve calculations for these policies had not been in line with an accepted financial accounting standard.

The company says it will report results for fourth quarter 2007 before the market opens on March 17 and will host a quarterly call with investors later that day. Both events have been delayed from dates Conseco had announced Feb. 25.

According to the company’s filing, the SEC informed Conseco that it had used an accounting method that “prospectively changes reserve assumptions” based solely on LTC premium rate increases, a calculation that was inconsistent with an accounting standard known as FAS 60.

On Feb.25, Conseco announced that it needs to restate historical financials statements due to errors, principally concerning adjustments to insurance policy benefits and liabilities in the specified disease, life and LTC blocks of business.