IBJNews

Conseco shares fall after dip in fourth-quarter profits

Back to TopCommentsE-mailPrintBookmark and Share

Investors responded coolly to Conseco Inc.’s fourth straight quarter of profits, pushing the company’s shares down as much as 3.75 percent.

The Carmel-based life and health insurer earned $18.2 million, or 9 cents per diluted common share, in the fourth quarter, 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, according to results released late Thursday night.

On Friday morning, Conseco’s share price fell as much as 20 cents per share, to $5.13. Its shares are now up 2.6 percent for the year.

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.

Conseco's operating results were dampened by 4 cents per share 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 case concerns 15,000 former customers who held Conseco’s Lifetrend insurance.

Excluding 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 a trust.

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

Revenue for the year clocked in at $4.3 billion, up by 3.6 percent over 2008.

In the fall of 2009, Conseco launched a series of moves to shore up its capital position and pay down debt. Conseco reported Friday that it now holds $146.1 million in cash, up from $85.6 million a year ago.

"Our refinancing addressed our most pressing financial priority,” Prieur told analysts in a conference call this morning. “The ability to complete such a transaction clearly demonstrates investor confidence in the company.”
 

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. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT