Conseco

[Anonymous]

Is Conseco shaky enough that it would be a bad decision to go work for them or one of their subsidiaries? Or are healthy insurance subsidiaries fairly safe from the troubles of the parent company? Please advise.

[Troy McClure]

People thought Conseco was healthy for a long time, until it was shown that they were not. Why would you trust that the subs are healthy, when management fought so hard to hide the problems at the parent level?

I would not consider Conseco or any sub, except for a premium price, and then only if there were other insurance companies in the area that I would be willing to work for if they collapsed (i.e., not Indianapolis).

[Baron Greenback]

Conseco has already announced they are selling the variable block and a smaller health insurance company. Positions in Indianapolis will go with that business. I do not know what that means for positions in Chicago or elsewhere.

[Gal Friday]

Yes, but it's a big company, and there are positions open in some areas even as they're eliminating jobs in others.

[Guero]

Some positions in Chicago are disappearing. We recently recieved resumes from at least 3 people from the Chicago office!

Word is that they already let some people go. Probably about 10 people in the Chicago that are losing their jobs.

[Checkin' Answers]

So, NOW what d'ya think about Conseco? Should he be in the Hall of Fame?

[Troy McClure]

Haven't heard anything recently... what happened?

[Dr T Non-Fan]

Jose? No.
But, the company looks to be headed to the Hall of Shame.
Insurance companies better start reviewing their books.

[Checkin' Answers]

Here's the news. NEW YORK -- Conseco Inc. (NYSE:CNC - News) reported a huge second-quarter net loss because of a $2.95 billion goodwill write-down, while it also warned it may be forced to file for bankruptcy amid a federal investigation of its accounting.

The dismal earnings performance and the goodwill writedown, reflecting a decrease in the value of its assets, caused shareholders' equity to plunge from more than $4.75 billion on Dec. 31 to $533 million at the second quarter's June 30 end.

In yet another blow, rating agency A.M. Best on Wednesday downgraded its rating of Conseco's insurance operations, hurting the company's ability to operate during restructuring.

Conseco, which on Friday announced it was putting off bond interest payments and radically restructuring its debt and operations, said it would seek bankruptcy protection if it couldn't agree with creditors on the restructuring.

Even worse, that Dec. 31 equity figure was when the stock price was already down to about $5 from its earlier sky-high valuation.

Insurance companies better start reviewing their books.

You got that right. A previous incarnation of my last employer was itself sent into bankruptcy due to a bunch of crummy Conseco mobile-home mortgages and other schlock on their books. The value of the securities melted into nothing, and so did the insurance company's value.

In spite of this information, my dad still dropped $10k on Conseco stock last year, because he was a buddy of Gary Wendt from his days financing car leases at GE Capital. Never trust someone who sat next to Cliff Claven.

[Ozric Tentacles]

In spite of this information, my dad still dropped $10k on Conseco stock last year, because he was a buddy of Gary Wendt from his days financing car leases at GE Capital. Never trust someone who sat next to Cliff Claven.Assuming you meant George Wendt, that's funny. *chuckle*

[schaden]

I know a few retirees who have retiree health insurance through Conseco. If they go bankrupt, will they lose their health insurance?

[Dr T Non-Fan]

Some company might buy their policies. Prepare them for a possible jacking of rates, should they be currently inadequate.