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. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT