Conseco reports lower income

Conseco, Inc. in Carmel, Ind. today reported $14.6 in net operating income for the first quarter of 2007, down from $55.8 million for the same period a year ago.
“Although results for the quarter are below expectations, Conseco is making tangible progress across the organization,” chief executive Jim Prieur said in a statement.
“We experienced reduced losses in our other business in run-off segment, where we are beginning to see the anticipated improvements in claims management as well as the positive impact from the re-rate program.
As we have reported previously, improvement in the performance of that block is expected to occur over several quarters,” he added.
The insurer also announced today that it has reached a definitive agreement to sell, through a 100% coinsurance agreement, a block of fixed and equity-indexed annuities that were not generating an acceptable return on equity.
The purchaser of the annuity block is Reassure America Life Insurance Company, a subsidiary of Swiss Re Life & Health America Inc. and part of Zurich-based Swiss Re.