Exhibit 99.1
NEWS
For Release Immediate
Contacts (News Media) Tony Zehnder, EVP, Corporate Communications
317.817.4858
(Investors) Lowell Short, SVP, Investor Relations
317.817.2893
Kirsch Resigns as Conseco CEO, Effective May 23;
Hohmann Named Interim CEO
Carmel, Ind., May 4, 2006 - Conseco, Inc. (NYSE: CNO) today announced that
William S. Kirsch is resigning his posts as president, CEO and director of the
company, effective May 23, 2006.
"I am very proud of the Conseco team and what we have achieved in turning the
company around over the past two years," Kirsch said. "I became CEO 21 months
ago to lead Conseco's transformation and to take it to the next level. Having
accomplished this goal, including significant ratings improvements and
recruiting a best-in-class senior management team, I look forward to spending
quality time with my family and exploring new opportunities. I expect the
Conseco team to continue to achieve great success."
Chairman R. Glenn Hilliard said Conseco's board named James E. Hohmann,
previously the company's executive vice president and chief administrative
officer, as interim CEO, effective May 23, and has launched a search, both
internally and externally, for a permanent CEO. Kirsch has agreed to assist
Conseco with transitional issues through Aug. 31, 2006, Hilliard said.
"Conseco has made great strides under Bill Kirsch," Hilliard said. "His
leadership has been central to moving Conseco forward and setting its vision and
mission. It's a particular tribute to Bill's leadership that we have been able
to attract a tremendous, deep team of seasoned insurance executives during the
past two years, including Jim Hohmann. Based on Jim's central position in our
established succession plan, he was the board's unanimous choice to guide the
company through this period."
"I very much appreciate the confidence the board has placed in me," Hohmann
said. "Conseco's vision and mission are clear and our strategic initiatives are
well established. My job will be to build on that progress. I welcome the
challenge."
Hohmann joined Conseco in 2004 from XL Life and Annuity, where he served as
president and CEO from 2001-2004. His insurance industry experience also
includes three years as president of financial institutions and three years as
chief actuary at Zurich Kemper Life, and nine years in insurance consulting at
Tillinghast, Towers Perrin, where he was managing principal of the Chicago
life/health practice.
About Conseco
Conseco, Inc.'s insurance companies help protect working American
families and seniors from financial adversity: Medicare supplement, long-term
care, cancer, heart/stroke and accident policies protect people against major
unplanned expenses; annuities and life insurance products help people plan for
their financial futures. For more information, visit Conseco's web site at
www.conseco.com.
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Conseco (2)
May 4, 2006
Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend
analyses and other information contained in this press release relative to
markets for Conseco's products and trends in Conseco's operations or financial
results, as well as other statements, contain forward-looking statements within
the meaning of the federal securities laws and the Private Securities Litigation
Reform Act of 1995. Forward-looking statements typically are identified by the
use of terms such as "anticipate," "believe," "plan," "estimate," "expect,"
"project," "intend," "may," "will," "would," "contemplate," "possible,"
"attempt," "seek," "should," "could," "goal," "target," "on track," "comfortable
with," "optimistic" and similar words, although some forward-looking statements
are expressed differently. You should consider statements that contain these
words carefully because they describe our expectations, plans, strategies and
goals and our beliefs concerning future business conditions, our results of
operations, financial position, and our business outlook or they state other
"forward-looking" information based on currently available information.
Assumptions and other important factors that could cause our actual results to
differ materially from those anticipated in our forward-looking statements
include, among other things: (i) our ability to achieve an upgrade of the
financial strength ratings of our insurance company subsidiaries and the impact
of prior rating downgrades on our business; (ii) the ultimate outcome of
lawsuits filed against us and other legal and regulatory proceedings to which we
are subject; (iii) our ability to obtain adequate and timely rate increases on
our supplemental health products including our long-term care business; (iv)
mortality, morbidity, usage of health care services, persistency and other
factors which may affect the profitability of our insurance products; (v) our
ability to achieve anticipated expense reductions and levels of operational
efficiencies; (vi) the adverse impact of our Predecessor's bankruptcy
proceedings on our business operations, and relationships with our customers,
employees, regulators, distributors and agents; (vii) performance of our
investments; (viii) our ability to continue to recruit and retain productive
agents and distribution partners and customer response to new products,
distribution channels and marketing initiatives; (ix) the risk factors or
uncertainties listed from time to time in our filings with the Securities and
Exchange Commission; (x) general economic conditions and other factors,
including prevailing interest rate levels, stock and credit market performance
and health care inflation, which may affect (among other things) our ability to
sell products and access capital on acceptable terms, the returns on and the
market value of our investments, and the lapse rate and profitability of
policies; (xi) changes in the Federal income tax laws and regulations which may
affect or eliminate the relative tax advantages of some of our products; and
(xii) regulatory changes or actions, including those relating to regulation of
the financial affairs of our insurance companies, such as the payment of
dividends to us, regulation of financial services affecting (among other things)
bank sales and underwriting of insurance products, regulation of the sale,
underwriting and pricing of products, and health care regulation affecting
health insurance products.
Other factors and assumptions not identified above are also relevant to the
forward-looking statements, and if they prove incorrect, could also cause actual
results to differ materially from those projected. All written or oral
forward-looking statements attributable to us are expressly qualified in their
entirety by the foregoing cautionary statement. Our forward-looking statements
speak only as of the date made. We assume no obligation to update or to publicly
announce the results of any revisions to any of the forward-looking statements
to reflect actual results, future events or developments, changes in assumptions
or changes in other factors affecting the forward-looking statements.
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