Indiana-based Conseco, Inc. announced a consolidated net loss for the third quarter ended September 30, 2002 totaling $1.7692 billion, compared to a net loss for the same period in 2001 of $410.6 million.
“The third quarter 2002 net loss was primarily attributed to: 1) an impairment charge of $701.3 million related to retained interests in securitization transactions held by Conseco Finance; 2) a goodwill impairment charge of $500 million; 3) realized investment losses of $277.8 million; 4) an adjustment to reserves for long-term care insurance of $110 million; and 5) a loss on discontinued operations totaling $140 million related to the sale of the Company’s variable annuity business,” said the company’s announcement.
It also indicated net losses for the nine months ended September 30, 2002 of $6.1493 billion, compared to a net loss for the same nine-month period in 2001 of $360.7 million. Rumors of an imminent bankruptcy filing continue to swirl around the company.
Its bulletin acknowledged only that it “is pursuing a fundamental restructuring of its capital structure;” and that it is engaged in ongoing discussions “with bank lenders, certain holders of senior notes, certain holders of Company-obligated trust originated preferred securities and their respective representatives regarding the terms of a potential restructuring plan, including the conversion of a significant amount of the Company’s debt into common equity.”
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
State Insurance Legislators ‘Greatly Disturbed’ by Trump AI Regulation Order 
Insurance Covers Settlement Paid by Stocks Instead of Money: Delaware High Court 
Poorer Americans Dropped Federal Flood Insurance When Rates Rose 
AIG Partners With Amwins, Blackstone to Launch Lloyd’s Syndicate Using Palantir 
