Efforts to cut interest expenses and benefits costs helped improve second-quarter results at Conseco Inc., Carmel, Ind.[@@]
Conseco, a company that emerged from Chapter 11 reorganization proceedings in September 2003, is reporting $68 million in net income for the latest quarter on $1 billion in revenue. Its predecessor company reported a net loss of $21 million on $1.2 billion in revenue for the second quarter of 2003.
A 24% drop in insurance policy benefits, to $667 million, compensated for the 9.5% drop in revenue.
Conseco shut down some unprofitable lines of business when it reorganized, and it has improved loss ratios for some of the remaining lines. At the Conseco Insurance Group unit's specified disease insurance operation, the loss ratio fell to 64.35% during the latest quarter, from 77.77%.
