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Conseco Reports Fourth Quarter and Year-End Results
PRNewswire-FirstCall
CARMEL, Ind., March 31
(NYSE:CNO)

CARMEL, Ind., March 31, 2008 /PRNewswire-FirstCall/ -- Conseco, Inc. (NYSE: CNO) today reported results for the fourth quarter of 2007.

"As we stated when we issued preliminary results, we are making steady progress on our plans to position Conseco for future profitable growth," CEO Jim Prieur said. "New business at both Bankers Life and at Colonial Penn continues to be strong, and the expected future margins related to new business at Conseco Insurance Group increased despite declining sales. Asset quality remains a high priority and our portfolio continues to perform within expectations. While we are not without our challenges, we are moving forward with our strategies to further stabilize our long-term care closed block of business and fully remediate the material weakness in internal controls."

  Fourth quarter 2007 results:
  -- Net operating income (1) before valuation allowance for deferred tax
     assets:  $19.5 million, compared to $24.6 million in 4Q06
  -- Net operating income before valuation allowance for deferred tax assets
     per diluted share:  11 cents, compared to 10 cents in 4Q06
  -- Net income (loss) applicable to common stock:  $(71.5) million,
     compared to $5.7 million in 4Q06 (including $23.0 million of net
     realized investment losses and $68.0 million valuation allowance for
     deferred tax assets in 4Q07 vs. $9.4 million of net realized investment
     losses in 4Q06)
  -- Net income (loss) per diluted share:  (38) cents, compared to 4 cents
     in 4Q06 (including 12 cents of net realized investment losses and 37
     cents of valuation allowance for deferred tax assets in 4Q07 vs. 6
     cents of net realized investment losses in 4Q06)
  -- Income before net realized investment losses, corporate interest and
     taxes ("EBIT") (2):  $52.9 million, compared to $55.3 million in 4Q06
  -- Sales (3): $87.3 million, down 1% from 4Q06

  Full Year 2007 results:
  -- Net operating income (loss) (1) before valuation allowance for deferred
     tax assets:  $(34.1) million, compared to $130.1 million in 2006
  -- Net operating income (loss) before valuation allowance for deferred tax
     assets per diluted share:  (28) cents, compared to 61 cents in 2006
  -- Net income (loss) applicable to common stock:  $(194.0) million,
     compared to $68.0 million in 2006 (including $77.8 million of net
     realized investment losses and $68.0 million valuation allowance for
     deferred tax assets in 2007 vs. $24.1 million of net realized
     investment losses in 2006)
  -- Net income (loss) per diluted share:  $(1.12), compared to 45 cents in
     2006 (including 45 cents of net realized investment losses and 39 cents
     of valuation allowance for deferred tax assets in 2007 vs. 16 cents of
     net realized investment losses in 2006)
  -- EBIT (2):  $19.0 million, compared to $257.9 million in 2006
  -- Sales (3): $415.5 million, up 4% over 2006

  Financial strength at December 31, 2007:
  -- Book value per common share, excluding accumulated other comprehensive
     income (loss) (4), was $24.42, compared to $26.98 at December 31, 2006
  -- Book value per diluted share, excluding accumulated other comprehensive
     income (loss) (4), was $24.41, compared to $25.57 at December 31, 2006
  -- Debt-to-total capital ratio, excluding accumulated other comprehensive
     income (loss) (4), was 20.9%, compared to 17.3% at December 31, 2006

  Operating results

Results by segment for the quarter were as follows ($ in millions, except per share data):

                                                      Three Months Ended
                                                         December 31,
                                                     2007           2006
                                                                 (Restated)
  EBIT (2), excluding costs related to a
    litigation settlement and loss related
    to a coinsurance transaction:
   Bankers Life                                      $58.3          $67.5
   Conseco Insurance Group                             7.7           27.9
   Colonial Penn.                                      (.2)           5.4
   Other Business in Run-off                         (10.0)         (45.1)
   Corporate Operations, excluding corporate
    interest expense                                  (2.9)           (.4)
      EBIT                                            52.9           55.3
  Corporate interest expense                         (19.1)         (16.0)
  Loss on extinguishment of debt                        --            (.7)
      Income before net realized investment
       losses and taxes                               33.8           38.6
  Tax expense on period income                        14.3           14.0
   Income before net realized investment
    losses and valuation allowance for
    deferred tax assets                               19.5           24.6
  Valuation allowance for deferred tax assets         68.0             --
   Net income (loss) before net realized
    investment losses                                (48.5)          24.6
  Preferred stock dividends:
   5.50% Class B mandatorily convertible
     preferred stock                                   --            (9.5)
    Net operating income (loss)                      (48.5)          15.1
  Net realized investment losses, net of
    related amortization and taxes                   (23.0)          (9.4)
   Net income (loss) applicable to common stock    $ (71.5)          $5.7
  Per diluted share:
    Net operating income before valuation
     allowance for deferred tax assets                $.11           $.10
    Valuation allowance for deferred tax assets       (.37)            --
    Net operating income (loss)                       (.26)           .10
    Net realized investment losses, net of
     related amortization and taxes                   (.12)          (.06)
    Net income (loss) applicable to common stock     $(.38)          $.04

In our Bankers Life segment, pre-tax operating earnings were $58.3 million in the fourth quarter of 2007, compared to $67.5 million in the fourth quarter of 2006. Results for the fourth quarter of 2007 were adversely affected by an $11 million reduction in earnings from our equity-indexed products primarily due to hedging ineffiencies. This adverse variance was partially offset by higher income from our marketing and quota-share agreements with Coventry in the fourth quarter of 2007 compared to the same period of the prior year.

In our Colonial Penn segment, the pre-tax operating loss was $.2 million in the fourth quarter of 2007, compared to pre-tax earnings of $5.4 million in the fourth quarter of 2006. Results in this segment were negatively impacted by $8.4 million of expenses in the fourth quarter of 2007 related to the introduction of Medicare Advantage products through this distribution channel.

In our Conseco Insurance Group segment, pre-tax operating earnings were $7.7 million in the fourth quarter of 2007, compared to $27.9 million in the fourth quarter of 2006. Significant factors affecting the segment's earnings in these periods included:

  -- During the fourth quarter of 2007, we recognized additional
     amortization expense of $14.8 million to reflect changes in our
     estimates of future mortality rates on our universal life business, net
     of planned increases to associated policyholder charges.
  -- Our benefit ratios increased in the fourth quarter of 2007 on our
     specified disease and Medicare supplement business.  These increases
     negatively affected fourth quarter 2007 earnings by approximately
     $8 million compared to the same period of the prior year.
  -- Earnings in the fourth quarter of 2007 were also negatively affected by
     $4.2 million of trading losses related to the termination of interest
     rate swap agreements held in our trading portfolio.
  -- During the fourth quarter of 2007, we recognized additional operating
     costs and expenses of approximately $3.0 million related to operational
     initiatives and consolidation activities.
  -- Earnings in the fourth quarter of 2006 were negatively affected by
     $16.1 million related to the segment's life insurance results in
     connection with management's intent regarding the administration of
     certain policies.  This compares to a similar charge in the fourth
     quarter of 2007 of $2.0 million.

In our Other Business in Run-off segment, we recognized a pre-tax operating loss of $10.0 million in the fourth quarter of 2007, compared to a loss of $45.1 million in the fourth quarter of 2006. Earnings in the fourth quarter of 2006 were negatively impacted by claim reserve strengthening resulting from adverse claim experience on claims incurred in previous quarters. In the fourth quarter of 2007, there were no comparable significant adjustments for claim experience related to previous quarters.

The Corporate Operations segment includes our investment advisory subsidiary and corporate expenses.

Net realized losses of $23.0 million (net of taxes) in the fourth quarter of 2007 consisted of losses from market value declines and from sales of mortgage-backed securities collateralized by sub-prime residential mortgage loans.

Based on our evaluation of the recovery of deferred tax assets, we determined the need to increase the valuation allowance by $68 million (primarily related to tax benefits resulting from the losses recognized in 2007).

Sales results

In addition to the sales of proprietary products, Bankers Life, through a partnership with Coventry, distributes Medicare PDP and private-fee-for- service plan (PFFS) through Bankers career agents.

At Bankers Life (career distribution), total New Annualized Premium ("NAP") in 4Q07 was $58.3 million, up 4% over 4Q06. For the year, Bankers' NAP was up 10% from 2006 total of $268.6 million.

At Colonial Penn (direct distribution), total NAP was $9.3 million, up 25% over 4Q06 as we continue to benefit from our investment in marketing. For the year, NAP rose 27% over 2006 total of $33.3 million.

At Conseco Insurance Group (independent distribution), total NAP was $19.7 million, down 18% from 4Q06. For the year, NAP fell 21% from 2006 total of $99.2 million.

Conference Call

The company will host a conference call to discuss results at 8:30 a.m. Eastern Daylight Time on April 1, 2008. The webcast can be accessed through the Investors section of the company's website as follows: http://investor.conseco.com/. Listeners should go to the website at least 15 minutes before the event to register and download any necessary audio software. During the call, we will be referring to a presentation that will be available Tuesday morning through the investors section of the company's website.

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 http://www.conseco.com/.

  (1) Management believes that an analysis of Net income (loss) applicable
      to common stock before net realized investment gains or losses, net of
      related amortization and 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 can be
      affected by events that are unrelated to the company's underlying
      fundamentals.  A reconciliation of Net Operating Income to Net Income
      applicable to common stock is provided in the tables on page 2 and 8.
      Additional information concerning 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, http://www.conseco.com/.
  (2) Management believes that an analysis of earnings or loss before net
      realized investment gains (losses), corporate interest and taxes
      ("EBIT," a non-GAAP financial measure) provides a clearer comparison
      of the operating results of the company quarter-over-quarter because
      it excludes: (i) corporate interest expense; and (ii) net realized
      investment gains (losses) that are unrelated to the company's
      underlying fundamentals.  A reconciliation of EBIT to Net Income
      applicable to common stock is provided in the tables on page 2 and 8.
  (3) Measured by new annualized premium, which includes 6% of annuity and
      10% of single premium whole life deposits and 100% of all other
      premiums, PDP sales equal $310 per enrolled policy, PFFS sales equal
      $2,100 per enrolled policy.
  (4) The calculation of this non-GAAP measure differs from the
      corresponding GAAP measure because accumulated other comprehensive
      income (loss) has been excluded from the value of capital used to
      determine this measure.  Management believes this non-GAAP measure is
      useful because it removes the volatility that arises from changes in
      the unrealized appreciation (depreciation) of our investments.  The
      corresponding GAAP measures for debt-to-total capital and book value
      per common share were 22.0% and $22.94, respectively, at December 31,
      2007, and 17.6% and $26.50, respectively, at December 31, 2006.

Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in these materials 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) the recoverability of our deferred tax asset; (v) changes in accounting principles and the interpretation thereof; (vi) 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; (vii) performance of our investments; (viii) 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; (ix) the ultimate outcome of lawsuits filed against us and other legal and regulatory proceedings to which we are subject; (x) 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; (xi) our ability to continue to recruit and retain productive agents and distribution partners and customer response to new products, distribution channels and marketing initiatives; (xii) our ability to achieve eventual upgrades of the financial strength ratings of Conseco and our insurance company subsidiaries as well as the potential impact of rating downgrades on our business; (xiii) the risk factors or uncertainties listed from time to time in our filings with the Securities and Exchange Commission; (xiv) 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; (xv) 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 (xvi) 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.

   - Tables Follow -


                      CONSECO, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEET
                          (Dollars in millions)

                                                         December 31,
                                                     2007           2006
                                                                 (Restated)
  ASSETS
  Investments:
   Actively managed fixed maturities at fair
    value (amortized cost:
      December 31, 2007 - $20,992.7;
       December 31, 2006 - $22,946.9)            $20,510.9      $22,802.9
   Equity securities at fair value
    (cost: December 31, 2007 - $34.0;
     December  31, 2006 - $23.9)                      34.5           24.8
   Mortgage loans                                  2,086.0        1,642.2
   Policy loans                                      370.4          412.5
   Trading securities                                665.8          675.2
   Other invested assets                             134.3          178.8

      Total investments                           23,801.9       25,736.4

  Cash and cash equivalents:
    Unrestricted                                     407.5          385.9
    Restricted                                        21.1           24.0
  Accrued investment income                          319.3          344.5
  Value of policies inforce at the Effective
   Date                                            1,722.8        2,136.5
  Cost of policies produced                        1,423.0        1,106.7
  Reinsurance receivables                          3,592.8          850.8
  Income tax assets, net                           1,909.4        1,794.3
  Assets held in separate accounts                    27.4           28.9
  Other assets                                       289.6          316.0

      Total assets                               $33,514.8      $32,724.0

  LIABILITIES AND SHAREHOLDERS' EQUITY
  Liabilities:
    Liabilities for insurance products:
      Interest-sensitive products                $13,169.4      $13,021.1
      Traditional products                        12,537.4       12,108.0
      Claims payable and other policyholder
       funds                                         928.0          835.0
      Liabilities related to separate accounts        27.4           28.9
    Other liabilities                                510.0          611.8
    Investment borrowings                            913.0          418.3
    Notes payable - direct corporate
     obligations                                   1,193.7        1,000.8

      Total liabilities                           29,278.9       28,023.9

  Commitments and Contingencies
  Shareholders' equity:
    Preferred stock                                     --          667.8
    Common stock ($0.01 par value,
     8,000,000,000 shares authorized, shares
     issued and outstanding:
     December 31, 2007 - 184,652,017;
     December 31, 2006 - 152,165,108)                  1.9            1.5
    Additional paid-in capital                     4,068.6        3,468.0
    Accumulated other comprehensive loss            (273.3)         (72.6)
    Retained earnings                                438.7          635.4

      Total shareholders' equity                   4,235.9        4,700.1

      Total liabilities and shareholders'
       equity                                    $33,514.8      $32,724.0


                      CONSECO, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENT OF OPERATIONS
               (Dollars in millions, except per share data)


                             Three months ended           Year ended
                               December 31,             December 31,
                           2007         2006        2007          2006
  Revenues:                          (Restated)                (Restated)
  Insurance policy
   income                 $814.7       $746.1     $3,167.3     $2,989.0
  Net investment income:
    General account
     assets                364.6        366.0      1,517.3      1,435.2
    Policyholder and
     reinsurer accounts
     and other
     special-purpose
     portfolios            (31.1)        44.6         19.3         71.2
  Net realized investment
   losses                  (36.6)       (18.6)      (155.4)       (47.2)
  Fee revenue and other
   income                    6.3          5.2         23.8         19.2

  Total revenues         1,117.9      1,143.3      4,572.3      4,467.4

  Benefits and
   expenses:
  Insurance policy
   benefits                805.2        846.6      3,433.7      3,033.0
  Interest expense          32.5         22.2        117.3         73.5
  Amortization             125.6        105.6        449.3        441.6
  Loss on extinguishment
   of debt                    --           .7           --           .7
  Costs related to a
   litigation settlement      --           --         64.4        174.7
  Loss related to an
   annuity coinsurance
   transaction                --           --         76.5           --
  Other operating costs
   and expenses            156.2        144.2        604.1        576.7

     Total benefits and
      expenses           1,119.5      1,119.3      4,745.3      4,300.2

     Income (loss)
      before income
      taxes                 (1.6)        24.0       (173.0)       167.2

  Income tax expense
   (benefit) on period
   income                    1.9          8.8        (61.1)        61.2
  Valuation allowance
   for deferred tax
   assets                   68.0           --         68.0           --

      Net income (loss)    (71.5)        15.2       (179.9)       106.0

  Preferred stock dividends    -          9.5         14.1         38.0

  Net income (loss)
   applicable to common
   stock                  $(71.5)        $5.7      $(194.0)       $68.0

  Earnings (loss) per
   common share:
  Basic:
    Weighted average
     shares
     outstanding     185,687,000  152,062,000  173,374,000  151,690,000

      Net income
       (loss)              $(.38)        $.04       $(1.12)        $.45

  Diluted:
    Weighted average
     shares
     outstanding     185,687,000  152,062,000  173,374,000  152,509,000

      Net income
       (loss)              $(.38)        $.04       $(1.12)        $.45


                      CONSECO, INC. AND SUBSIDIARIES
                            OPERATING RESULTS

  Results by segment for the year ended were as follows ($ in millions):
                                                        Year Ended
                                                        December 31,
                                                     2007           2006
                                                                 (Restated)
  EBIT (2), excluding costs related to a
    litigation settlement and loss related
    to a coinsurance transaction:
   Bankers Life                                     $ 241.8        $ 265.3
   Conseco Insurance Group                            102.7          198.4
   Colonial Penn                                       18.1           21.6
   Other Business in Run-off                         (185.9)         (34.5)
   Corporate Operations, excluding corporate
     interest expense                                 (16.8)         (18.2)

    EBIT, excluding costs related to a litigation
     settlement and a loss related to an annuity
     coinsurance transaction                          159.9          432.6

  Costs related to a litigation settlement            (64.4)        (174.7)
  Loss related to an annuity coinsurance
   transaction                                        (76.5)            --

    Total EBIT                                         19.0          257.9

   Corporate interest expense                         (72.3)         (52.9)
   Loss on extinguishment of debt                        --            (.7)

    Income (loss) before net realized investment
     losses and taxes                                 (53.3)         204.3

  Tax expense (benefit) on period income              (19.2)          74.2

     Income (loss) before net realized investment
      losses and valuation allowance for deferred
      tax assets                                      (34.1)          130.1

   Valuation allowance for deferred tax assets         68.0              --

    Net income (loss) before net realized
     investment losses                               (102.1)          130.1
  Preferred stock dividends:
    5.50% Class B mandatorily convertible
     preferred stock                                  (14.1)          (38.0)

      Net operating income (loss)                    (116.2)           92.1

  Net realized investment losses, net of
   related amortization and taxes                     (77.8)          (24.1)

      Net income (loss) applicable to
       common stock                                 $(194.0)          $68.0

  Per diluted share:
    Net operating income (loss) before
     valuation allowance for deferred tax
     assets                                           $(.28)           $.61
    Valuation allowance for deferred tax assets        (.39)             --
    Net operating income (loss)                        (.67)            .61
    Net realized investment losses, net of
     related amortization and taxes                    (.45)           (.16)
    Net income (loss) applicable to common stock     $(1.12)           $.45


                      CONSECO, INC. AND SUBSIDIARIES
                            COLLECTED PREMIUMS
                          (Dollars in millions)
                                                       Three months ended
                                                           December 31,
                                                      2007           2006

  Bankers Life segment:
   Annuity                                           $221.9         $247.6
   Supplemental health                                420.4          327.7
   Life                                                50.7           46.6
   Total collected premiums                          $693.0         $621.9
  Conseco Insurance Group segment:
   Annuity                                            $58.0         $121.9
   Supplemental health                                147.2          153.2
   Life                                                68.8           73.9
   Total collected premiums                          $274.0         $349.0
  Colonial Penn segment:
   Life                                               $31.7          $26.8
   Supplemental health                                  2.5            2.9
   Total collected premiums                           $34.2          $29.7
  Other Business in Run-off segment:
   Long-term care                                     $74.4         $ 75.9
   Major medical                                         .6             .7
   Total collected premiums                           $75.0         $ 76.6


      BENEFIT RATIOS ON MAJOR SUPPLEMENTAL HEALTH LINES OF BUSINESS
                                                     Three Months Ended
                                                        December 31,
                                                    2007           2006
  Bankers Life segment:                                          (Restated)
  Medicare Supplement:
   Earned premium                              $159 million   $162 million
   Benefit ratio(a)                                   67.6%          65.3%
  PDP and PFFS:
   Earned premium                               $90 million    $13 million
   Benefit ratio(a)                                   83.6%          42.5%
  Long-Term Care:
   Earned premium                              $156 million   $153 million
   Benefit ratio(a)                                  103.3%         101.8%
   Interest-adjusted benefit ratio
    (a non-GAAP measure)(b)                           71.2%          72.0%
  Conseco Insurance Group (CIG) segment:
  Medicare Supplement:
   Earned premium                               $55 million    $62 million
   Benefit ratio(a)                                   66.0%          64.1%
  Specified Disease:
   Earned premium                               $89 million    $90 million
   Benefit ratio(a)                                   80.6%          73.1%
  Interest-adjusted benefit ratio
   (a non-GAAP measure)(b)                            46.5%          40.7%
  Other Business in Run-off segment:
   Earned premium                               $77 million    $82 million
   Benefit ratio(a)                                  146.6%         182.7%
   Interest-adjusted benefit ratio
    (a non-GAAP measure)(b)                           82.2%         128.3%


  (a) The benefit ratio is calculated by dividing the related product's
      insurance policy benefits by insurance policy income.
  (b) The interest-adjusted benefit ratio (a non-GAAP measure) is calculated
      by dividing the product's insurance policy benefits less interest
      income on the accumulated assets backing the insurance liabilities by
      insurance policy income.  Interest income is an important factor in
      measuring the performance of longer duration health products.  The net
      cash flows generally cause an accumulation of amounts in the early
      years of a policy (accounted for as reserve increases), which will be
      paid out as benefits in later policy years (accounted for as reserve
      decreases).  Accordingly, as the policies age, the benefit ratio will
      typically increase, but the increase in the change in reserve will be
      partially offset by interest income earned on the accumulated assets.
      The interest-adjusted benefit ratio reflects the interest income
      offset.  Since interest income is an important factor in measuring the
      performance of these products, management believes a benefit ratio,
      which includes the effect of interest income, is useful in analyzing
      product performance.  Additional information concerning 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, http://www.conseco.com/.

SOURCE: Conseco, Inc.

CONTACT: CONTACT: media, Tony Zehnder, Corporate Communications,
+1-312-396-7086, or investors, Scott Galovic, Investor Relations,
+1-317-817-3228, both of Conseco, Inc.

Web site: http://www.conseco.com/