Exhibit 99.1
NEWS
For Release Immediate
Contacts (News Media) Tony Zehnder, Corporate Communications 312.396.7086
(Investors) Scott Galovic, Investor Relations 317.817.3228
Conseco Files to Formally Extend Due Date
for Annual Report on Form 10-K to March 17
and Reschedules Earnings Release and Investor Call
Carmel, Ind., March 4, 2008 - In a filing with the SEC yesterday, Conseco, Inc.
(NYSE:CNO), formally extended the due date of its Annual Report on Form 10-K to
March 17, 2008. In the Form 12b-25 filing, the Company said it has not yet
finalized its December 31, 2007 financial statements and is completing several
items, including its analysis to determine the possible need to increase the
deferred income tax asset valuation allowance. Conseco estimated that its net
income (loss) for the three months ended December 31, 2007 will be approximately
breakeven, including estimated net realized investment losses (after related
amortization and taxes) of $25 million, but before any adjustments which may
result from finalizing the incomplete items.
The Company also reported in its Form 12b-25 filing that it has been consulting
with the staff of the SEC's Office of the Chief Accountant (the "SEC Staff")
regarding its accounting policy for long-term care premium rate increases as
described in the Summary of Significant Accounting Policies in its 2006 Form
10-K. On February 28, 2008, the SEC Staff informed Conseco of their view that
the use of a method which prospectively changes reserve assumptions for
long-term care policies based solely on changes in premium rates is not
consistent with the guidance of Statement of Financial Accounting Standards No.
60, "Accounting and Reporting by Insurance Enterprises." The Company is
continuing to evaluate the SEC Staff's view and has reflected the estimated
effect in the estimated net income (loss) provided above.
As a result of these developments, the Company will report results for the
fourth quarter of 2007 before the market opens on Monday, March 17 and will host
its quarterly call with investors at 1:00pm EDT that day. Both events have been
delayed from dates the Company announced in a press release on Feb. 25, 2008.
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Conseco (2)
March 4, 2008
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.
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 obtain adequate and timely rate
increases on our supplemental health products including our long-term care
business; (ii) mortality, morbidity, usage of health care services, persistency,
the adequacy of our previous reserve estimates and other factors which may
affect the profitability of our insurance products; (iii) changes in our
assumptions related to the cost of policies produced or the value of policies
inforce at the Effective Date; (iv) our ability to achieve anticipated expense
reductions and levels of operational efficiencies including improvements in
claims adjudication and continued automation and rationalization of operating
systems; (v) performance of our investments; (vi) our ability to identify
products and markets in which we can compete effectively against competitors
with greater market share, higher ratings, greater financial resources and
stronger brand recognition; (vii) the ultimate outcome of lawsuits filed against
us and other legal and regulatory proceedings to which we are subject; (viii)
our ability to remediate the material weakness in internal controls over the
actuarial reporting process that we identified at year-end 2006 and to maintain
effective controls over financial reporting; (ix) our ability to continue to
recruit and retain productive agents and distribution partners and customer
response to new products, distribution channels and marketing initiatives; (x)
our ability to achieve an upgrade of the financial strength ratings of our
insurance company subsidiaries as well as the potential impact of rating
downgrades on our business; (xi) the risk factors or uncertainties listed from
time to time in our filings with the Securities and Exchange Commission; (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; (xiii) 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; and (xiv) changes in the Federal income tax laws and regulations which
may affect or eliminate the relative tax advantages of some of our 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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