Conseco Posts $1.77 Billion Q3 Loss

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