Conseco Issues Statement
CARMEL, Ind.--(BUSINESS WIRE)--April 5, 2000--Conseco, Inc. (NYSE:CNC) today issued the following statement in response to the recent decline in price of its stock and rumors that may be contributing to that decline.
We are disappointed that the market has misunderstood our announcement of March 31, 2000, in which we said that we would seek to sell Conseco Finance Corp. and adjust the value of its interest-only security. We announced this process because we believe, when completed, we will have eliminated the primary issue of concern for investors over this past year, namely our involvement in the finance industry.
We are confident that we have adequate liquidity to fund the loan originations and meet our other cash needs during this process. We have substantial liquid assets on our balance sheet, as well as warehouse lines and other facilities to fund our inventory of loans that have not yet been securitized. We met our first quarter 2000 target of a cash coverage ratio at the parent company in excess of 200 percent.
Our investment bankers tell us that they have received a number of unsolicited inquiries from highly qualified prospects concerning Conseco Finance Corp. We are optimistic that a successful sale of our finance operations should result from this process.
We are nearing completion of our audited Form 10-K for 1999 and expect to have it on file by April 14, 2000. We continue to believe, as we stated last week, that the net income we previously announced for 1999 of $962.2 million will be reduced by approximately $350 million (after tax) as a result of the adjustment of the value of the interest-only security.
The directors, management and associates of Conseco look forward optimistically to the completion of the announced transaction and renewed focus on our insurance companies.
Headquartered in Carmel, Ind., Conseco is one of middle America's leading sources for insurance, investment and lending products. Through its subsidiaries and a nationwide network of distributors, Conseco helps 13 million customers step up to a better, more secure future.
*T World Wide Web conseco.com Investor Hotline 800.4.CONSECO Fax-on-Demand 800.344.6452
Note on forward-looking statements: All statements, trend
analyses and other information contained in this press release and
elsewhere (such as in filings by Conseco with the Securities and
Exchange Commission, press releases, presentations by Conseco or its
management or oral statements) relative to markets for Conseco's
products and trends in Conseco's operations or financial results, as
well as other statements including words such as "anticipate,"
"believe," "plan," "estimate," "expect," "intend," "should," "could,"
"goal," "target," "on track," "comfortable with" and other similar
expressions, constitute forward-looking statements under the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors which may cause actual results to be materially
different from those contemplated by the forward-looking statements.
Such factors include, among other things: (1) 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) Conseco's ability to sell its
products, its ability to make loans and access capital resources and
the costs associated therewith, the market value of Conseco's
investments, the lapse rate and profitability of policies, and the
level of defaults and prepayments of loans made by Conseco; (2)
Conseco's ability to achieve anticipated synergies and levels of
operational efficiencies; (3) customer response to new products,
distribution channels and marketing initiatives; (4) mortality,
morbidity, usage of health care services and other factors which may
affect the profitability of Conseco's insurance products, (5)
performance of our investments; (6) changes in the Federal income tax
laws and regulations which may affect the relative tax advantages of
some of Conseco's products; (7) increasing competition in the sale of
insurance and annuities and in the finance business; (8) regulatory
changes or actions, including those relating to 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; (9) the outcome of the
contemplated sale process relating to Conseco Finance Corp., and (10)
the risk factors or uncertainties listed from time to time in
Conseco's filings with the Securities and Exchange Commission.
CONTACT:
Conseco, Inc.
(Investors) John A. Dolphin, 317/817-2893
or
Golin/Harris International
(Media) Elise Powell, 312/729-4326
KEYWORD: INDIANA ILLINOIS
BW1748 APR 05,2000
12:53 PACIFIC
15:53 EASTERN |
