Conseco/CNO Financial and Insurance and Public Companies and Health Care & Life Sciences

Conseco consolidation to save $2.5M a year

August 31, 2009

Conseco Inc. this morning said it is consolidating three of its insurers into one, a move that will have no impact on employment but will save the company about $2.5 million annually.

The company said its Carmel-based Conseco Insurance Group now includes four insurers. The consolidation will cut that number to two. The move will yield savings on financial-reporting costs and in premium taxes, though the changeover will result in $8 million in one-time costs. Those stem from updating information technology systems, restocking forms and other adjustments.

The company said the consolidation will build capital and improve its risk-based capital ratio, a key measure of financial strength.

Conseco employs about 1,750 in Carmel. The company’s shares were trading late this morning at $4.40, up 9 cents, or 2.1 percent, on the day.

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