Conseco Provides Update to Investors
During the call today, Conseco also indicated that it expects earningsbefore interest and taxes (EBIT) for the third quarter of 2008 to be in therange of $75 million to $90 million.(1)
Conseco, Inc.'s insurance companies help protect working American familiesand seniors from financial adversity: Medicare supplement, long-term care,cancer, heart/stroke and accident policies protect people against majorunplanned expenses; annuities and life insurance products help people plan fortheir financial futures. For more information, visit Conseco's web site atwww.conseco.com.
(1) Management believes that an analysis of earnings or loss before netrealized investment gains (losses), corporate interest and taxes ("EBIT," anon-GAAP financial measure) provides a clearer comparison of the operatingresults of the company quarter-over-quarter because it excludes: (i) corporateinterest expense; and (ii) net realized investment gains (losses) that areunrelated to the company's underlying fundamentals.
Cautionary Statement Regarding Forward-Looking Statements. Ourstatements, trend analyses and other information contained in these materialsrelative to markets for Conseco's products and trends in Conseco's operationsor financial results, as well as other statements, contain forward-lookingstatements within the meaning of the federal securities laws and the PrivateSecurities Litigation Reform Act of 1995. Forward-looking statementstypically 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 shouldconsider statements that contain these words carefully because they describeour expectations, plans, strategies and goals and our beliefs concerningfuture business conditions, our results of operations, financial position, andour business outlook or they state other ''forward-looking'' information basedon currently available information. Assumptions and other important factorsthat could cause our actual results to differ materially from thoseanticipated in our forward-looking statements include, among other things:(i) general economic, market and political conditions, including theperformance and fluctuations of the financial markets which may affect ourability to raise capital or refinance our existing indebtedness; (ii) ourability to obtain adequate and timely rate increases on our supplementalhealth products including our long-term care business; (iii) mortality,morbidity, the increased cost and usage of health care services, persistency,the adequacy of our previous reserve estimates and other factors which mayaffect the profitability of our insurance products; (iv) changes in ourassumptions related to the cost of policies produced or the value of policiesinforce at the Effective Date; (v) the recoverability of our deferred taxasset and the effect of potential tax rate changes on its value; (vi) changesin accounting principles and the interpretation thereof; (vii) our ability toachieve anticipated expense reductions and levels of operational efficienciesincluding improvements in claims adjudication and continued automation andrationalization of operating systems; (viii) performance and valuation of ourinvestments, including the impact of realized losses (including other-than-temporary impairment charges); (ix) our ability to identify products andmarkets in which we can compete effectively against competitors with greatermarket share, higher ratings, greater financial resources and stronger brandrecognit
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