A restructuring plan for Conseco Inc.’s finance subsidiary, as well as a program to sell or run off several non-strategic assets, is underway. The plan calls for eliminating five business lines, reducing costs by more than $150 million, and positioning Conseco Finance to be a positive cash contributor going forward. The near-term issues being confronted include repayment of debt as due, particularly that scheduled for the next 12 months; restoration of credit ratings, particularly the A.M. Best rating, which was decreased to “B++” during the second quarter; and repositioning Conseco Finance so that it will be a cash generator to-rather than a user from-the parent company.
Was this article valuable?
Here are more articles you may enjoy.
UBS Fined $125M by US Regulators for Money Laundering Violations 
Former Insurance Agent Sentenced to Jail for Fraud, Again 
CBIZ Brokerage to Be Spun Off, Backed by Private Equity, After $5B Grant Thornton Deal 
Why El Niño’s Promise of Quieter Hurricane Season May Not Be Good News for Insurers From This Issue
