IBJNews

Conseco's quarterly profit trimmed by legal costs

Back to TopCommentsE-mailPrintBookmark and Share

Conseco Inc. made money in the fourth quarter, but that profit was cut in half by the costs of pending legal settlements, the Carmel-based insurance company announced Wednesday night.

The company earned $18.2 million, or 9 cents per diluted common share, compared with a whopping loss in the same quarter a year ago of $453.3 million, or $2.45 per share.

Revenue for the quarter rose 1 percent, to $1.06 billion.

Profits were pared in the most recent quarter by investment losses, additional debt payments and a change in the value of tax assets. Excluding those effects, Conseco would have earned $32 million, or 15 cents per share, down by 4 percent from a year ago.

Conseco's operating results were dampened because it set aside $16 million to settle legal cases. One case involves 700 former life insurance policyholders who opted out of a previous class-action settlement. The other cases concerns 15,000 former customers who held Conseco’s Lifetrend insurance. This spending reduced earnings by 4 cents per share.

Excluding all those special items, Conseco would have earned 19 cents per share. On that adjusted basis, Wall Street analysts expected Conseco to earn 20 cents per share, according to a survey by Thomson Financial Network.

"We are pleased to report that Conseco delivered its fourth consecutive profitable quarter," CEO Jim Prieur said in a statement. He highlighted that Conseco’s sales of new life and health insurance policies surged 18 percent in the quarter, compared with the same period a year ago.

Conseco posted sales gains of 28 percent at its Chicago-based Bankers Life unit and a gain of 4 percent at its Carmel-based Conseco Insurance Group. However, the company’s Colonial Penn subsidiary, based in Philadelphia, saw its sales drop 22 percent compared with the fourth quarter last year.

For the year, Conseco’s profits totaled $85.7 million, or 45 cents per share, compared with a loss in 2008 of $1.1 billion, which was fueled by a major restructuring that transferred a block of money-losing policies to an aging trust.

Income from operations totaled $164.6 million last year, up 20 percent from 2008 operating income of $137 million.

Revenue in 2009 clocked in at $4.3 billion, up nearly 4 percent from 2008.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help

ADVERTISEMENT