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8-K - PRESS RELEASES DATED 12/8/09 - CNO Financial Group, Inc. | form8k.htm |
EX-99.2 - PRESS RELEASE - CREDIT FACILITY - CNO Financial Group, Inc. | exhibit992.htm |
Exhibit 99.1
For
Release Immediate
Contacts (News Media) Tony Zehnder,
Corporate Communications 312.396.7086
(Investors) Scott Galovic, Investor Relations 317.817.3228
Conseco
Provides 2010 Earnings Outlook
Carmel, Ind., December 08,
2009: Conseco, Inc. (NYSE: CNO), provided its outlook today for earnings
for the full year 2010. The Company said it projects net operating
income* of between $145 million and $170 million in 2010. “With
all of the capital management actions we have taken over the last year and the
changes in the financial markets, providing information regarding our operating
income outlook at this time is important,” said Conseco CEO Jim
Prieur.
The
pre-tax operating income (loss) of the Company’s segments in 2010 are projected
to be as follows:
·
|
Bankers
Life $200
- $225 million
|
·
|
Conseco
Insurance
Group $110
- $125 million
|
·
|
Colonial
Penn
$24 - $30 million
|
·
|
Corporate
$(43) - $(47) million
|
The
projection assumes the continuation of the current interest rate environment in
2010, which, absent a change in the level and shape of the yield curve, will
continue to negatively impact investment income and margins. The
foregoing amounts also reflect the impact of the previously announced
transactions with Wilton Re involving (1) the reinsurance, effective January 1,
2009, of a block of life insurance policies in the Conseco Insurance Group
segment, which had pre-tax operating income in the first half of 2009 of
approximately $3.8 million per quarter before overhead; and (2) the reinsurance,
to be effective October 1, 2009, of 50% of a block of life insurance policies in
the Bankers Life segment, which had pre-tax operating income before overhead on
the portion of the block being reinsured of approximately $2 million in the
third quarter of 2009. In addition, the expenses in conjunction with
the previously announced merger of three of the Company’s insurance
subsidiaries, which are expected to be approximately $6 million, are included in
the corporate segment projection.
- more
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Conseco
(2)
December
08, 2009
After
giving effect to the items described above and the issuance of additional shares
in the previously announced proposed public offering of common stock, the
Company expects net operating income of between $0.60 and $0.70 per basic share
and between $0.55 and $0.65 per diluted share in 2010.
These
projections are based on currently available information and a number of
assumptions, including the impact of the current interest rate environment, that
the Company believes are reasonable as of the date of this press
release. However, there can be no assurance that the Company’s
results will not be lower than expected.
This
press release does not constitute an offer to sell, or the solicitation of an
offer to buy, any securities. A registration statement relating to
common stock of the Company has been filed with the Securities and Exchange
Commission but is not yet effective. These securities may not be sold
nor may offers to buy be accepted prior to the time the registration statement
becomes effective.
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.
*
Management believes that an analysis of net income applicable to common stock
before net realized investment gains or losses (net of related amortization and
taxes) and the change in valuation allowance for deferred income taxes (“net
operating income,” a non-GAAP financial measure) is important to evaluate the
financial performance of the Company, and is a key measure commonly used in the
life insurance industry. Management uses this measure to evaluate
performance because realized investment gains or losses and the change in the
valuation allowance for deferred income taxes can be affected by events that are
unrelated to the Company’s underlying fundamentals. Additional
information regarding this non-GAAP measure is included in our periodic filings
with the Securities and Exchange Commission that are available in the “Investor
– SEC Filings” section of Conseco’s website at www.conseco.com.
- more
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Conseco
(3)
December
08, 2009
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 continue to satisfy the
financial ratio and balance requirements and other covenants of our debt
agreements; (ii) liquidity issues associated with the right of holders of our
3.5% convertible debentures due 2035 to require us to repurchase such debentures
on September 30, 2010; (iii) general economic, market and political conditions,
including the performance and fluctuations of the financial markets which may
affect our ability to raise capital or refinance existing indebtedness and the
cost of doing so; (iv) our ability to generate sufficient liquidity to meet our
debt service obligations and other cash needs; (v) our ability to obtain
adequate and timely rate increases on our supplemental health products,
including our long-term care business; (vi) the receipt of any required
regulatory approvals for dividend and surplus debenture interest payments from
our insurance subsidiaries; (vii) mortality, morbidity, the increased cost and
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; (viii) changes in our assumptions related to the cost of policies
produced or the value of policies in force at the effective date; (ix) the
recoverability of our deferred tax assets and the effect of potential ownership
changes and tax rate changes on its value; (x) our assumption that the positions
we take on our tax return filings, including our position that our 7.0%
convertible senior debentures due 2016 will not be treated as stock for purposes
of Section 382 of the Internal Revenue Code of 1986, as amended, and will not
trigger an ownership change, will not be successfully challenged by the Internal
Revenue Service; (xi) changes in accounting principles and the interpretation
thereof; (xii) 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, (xiii)
performance and valuation of our investments, including the impact of realized
losses (including other-than-temporary impairment charges); (xiv) 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; (xv) the ultimate outcome of lawsuits
filed against us and other legal and regulatory proceedings to which we are
subject; (xvi) our ability to complete the remediation of the
material weakness in internal controls over our actuarial reporting process and
to maintain effective controls over financial reporting; (xvii) our ability to
continue to recruit and retain productive agents and distribution partners and
customer response to new products, distribution channels and marketing
initiatives; (xviii) our ability to achieve eventual upgrades of
the financial strength ratings of Conseco and our insurance company
subsidiaries as well as the impact of rating downgrades on our business and our
ability to access capital; (xix) the risk factors or uncertainties listed from
time to time in our filings with the Securities and Exchange Commission; (xx)
regulatory changes or actions, including those relating to regulation of the
financial affairs of our insurance companies, such as the payment of dividends
and surplus debenture interest 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; and (xxi) 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 forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. 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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