Conseco Risk-Based Capital Ratio Benefits Under NAIC action
Wednesday, Jun 24,2009, 11:31:56 AM Click:
CARAMEL, Ind., June 22 / PRNewswire-FirstCall / - Conseco, Inc. (NYSE: NOC) announced today that a recent National Association of Insurance Commissioners (NAIC) action to change the adjustment factor of experience for 2009 mortgage benefit risk-based capital ratio.
As indicated in the Conseco 2008 Form 10-K filing, its life insurance subsidiaries are subject to risk-based capital requirements in accordance with legal rules and regulations. To determine the required amount of capital at risk, the regulations provide an "adjustment factor from the experience of mortgage" which is applied to the society of the entire portfolio of commercial mortgage loans.
At the recently concluded summer NAIC meeting, a proposal to change the adjustment factor experience mortgage calculation was adopted for the year 2009. On a pro forma basis from March 31, 2009, the revised calculation reduces the principal amount of the insurance subsidiaries of Conseco is required to hold, increasing the company's consolidated risk-based capital ratio of more than 25 points.
It is understood that the capital adequacy of the Task Force of the NAIC will monitor market conditions and progress on the proposals in May that the amendment or extension of the proposal beyond 2009. There can be no assurance that the adjustment in the short term will continue beyond 2009.
About Conseco
Conseco, Inc. 's help protect insurance companies of American working 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 future. For more information, visit the Conseco www.conseco.com.
Cautionary statement regarding forward-looking statements. The statements, trend analysis and other information contained in this release relating to markets for Conseco's products and trends in Conseco operations or financial performance, and other statements, contain forward-looking statements within the meaning federal laws on securities and the private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the use of terms such as "anticipate," "believe," "plan," "estimate," "expects," "project," "intend," " May "," will "," would "," envisage "," 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 condition and business prospects or condition of autres''prospectives "information based on information currently available. 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) general economic, market and political conditions, including the performance and fluctuations in financial markets May that affect our ability to raise capital or refinance existing debt and the cost of doing so, (ii) our ability to continue to meet the ratio requirements and balance, and the other provisions of our debt agreements (iii) our ability to generate sufficient cash to meet our obligations to debt service and other cash requirements, (iv) our ability to obtain rate increases and more time on our health products, including our long-term care companies, (v) receipt of regulatory approvals required for dividends and surplus debenture interest payment from our insurance subsidiaries, (vi) mortality, morbidity, increased costs and utilization of health care services, the persistence, the relevance of our previous reserve estimates and other factors that May affect the profitability of our insurance products, (vii) changes in our assumptions relating to the cost of policies produced or the value of policies in force at the effective date of our emergence from bankruptcy, (viii) the valuation of our deferred tax assets and the potential effect of changes in tax rates on its value, (ix) changes in accounting principles and interpretations thereof, (x) our ability to achieve anticipated expense reductions and levels of operational efficiencies including improvements in claims and continued automation and rationalization of operating systems, (xi) implementation and evaluation of our investments, including the impact of realized losses (including the lowest charges for impairment) (xii) 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 (xiii) l 'outcome of proceedings brought against us and other legal and regulatory proceedings to which we are subject, (xiv) our ability to complete the restoration of the weakness of internal controls on our process of reporting actuarial and maintain effective controls financial information; (xv) our ability to continue to recruit and retain productive agents and distribution partners and customers to new products, distribution channels and marketing, (xvi) our ability to achieve d 'updates from memos Conseco financial strength and our insurance company subsidiaries as well as the potential impact of lower ratings on our business, (xvii) the risk factors and uncertainties from time to time in our filings with the Securities and Exchange Commission, (xvi) regulatory changes or actions, including those relating to regulation of the financial position of our insurance companies, such as the payment of dividends and excess interest bond 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, regulation and care health affecting health insurance products, and (xix) changes in federal tax laws and regulations that affect May parent or eliminate the tax advantages of some of our products. Other factors not identified and the assumptions above are also applicable to these 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 Cautionary statement above. Forward-looking statements speak only as of the date made. We assume no obligation to update or to announce publicly the results of any revision of the a forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting forward-looking statements.
SOURCE Conseco, Inc.
As indicated in the Conseco 2008 Form 10-K filing, its life insurance subsidiaries are subject to risk-based capital requirements in accordance with legal rules and regulations. To determine the required amount of capital at risk, the regulations provide an "adjustment factor from the experience of mortgage" which is applied to the society of the entire portfolio of commercial mortgage loans.
At the recently concluded summer NAIC meeting, a proposal to change the adjustment factor experience mortgage calculation was adopted for the year 2009. On a pro forma basis from March 31, 2009, the revised calculation reduces the principal amount of the insurance subsidiaries of Conseco is required to hold, increasing the company's consolidated risk-based capital ratio of more than 25 points.
It is understood that the capital adequacy of the Task Force of the NAIC will monitor market conditions and progress on the proposals in May that the amendment or extension of the proposal beyond 2009. There can be no assurance that the adjustment in the short term will continue beyond 2009.
About Conseco
Conseco, Inc. 's help protect insurance companies of American working 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 future. For more information, visit the Conseco www.conseco.com.
Cautionary statement regarding forward-looking statements. The statements, trend analysis and other information contained in this release relating to markets for Conseco's products and trends in Conseco operations or financial performance, and other statements, contain forward-looking statements within the meaning federal laws on securities and the private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identified by the use of terms such as "anticipate," "believe," "plan," "estimate," "expects," "project," "intend," " May "," will "," would "," envisage "," 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 condition and business prospects or condition of autres''prospectives "information based on information currently available. 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) general economic, market and political conditions, including the performance and fluctuations in financial markets May that affect our ability to raise capital or refinance existing debt and the cost of doing so, (ii) our ability to continue to meet the ratio requirements and balance, and the other provisions of our debt agreements (iii) our ability to generate sufficient cash to meet our obligations to debt service and other cash requirements, (iv) our ability to obtain rate increases and more time on our health products, including our long-term care companies, (v) receipt of regulatory approvals required for dividends and surplus debenture interest payment from our insurance subsidiaries, (vi) mortality, morbidity, increased costs and utilization of health care services, the persistence, the relevance of our previous reserve estimates and other factors that May affect the profitability of our insurance products, (vii) changes in our assumptions relating to the cost of policies produced or the value of policies in force at the effective date of our emergence from bankruptcy, (viii) the valuation of our deferred tax assets and the potential effect of changes in tax rates on its value, (ix) changes in accounting principles and interpretations thereof, (x) our ability to achieve anticipated expense reductions and levels of operational efficiencies including improvements in claims and continued automation and rationalization of operating systems, (xi) implementation and evaluation of our investments, including the impact of realized losses (including the lowest charges for impairment) (xii) 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 (xiii) l 'outcome of proceedings brought against us and other legal and regulatory proceedings to which we are subject, (xiv) our ability to complete the restoration of the weakness of internal controls on our process of reporting actuarial and maintain effective controls financial information; (xv) our ability to continue to recruit and retain productive agents and distribution partners and customers to new products, distribution channels and marketing, (xvi) our ability to achieve d 'updates from memos Conseco financial strength and our insurance company subsidiaries as well as the potential impact of lower ratings on our business, (xvii) the risk factors and uncertainties from time to time in our filings with the Securities and Exchange Commission, (xvi) regulatory changes or actions, including those relating to regulation of the financial position of our insurance companies, such as the payment of dividends and excess interest bond 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, regulation and care health affecting health insurance products, and (xix) changes in federal tax laws and regulations that affect May parent or eliminate the tax advantages of some of our products. Other factors not identified and the assumptions above are also applicable to these 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 Cautionary statement above. Forward-looking statements speak only as of the date made. We assume no obligation to update or to announce publicly the results of any revision of the a forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting forward-looking statements.
SOURCE Conseco, Inc.
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