Read Larry Connors' blog – Short Term Trading Strategies
The financial damage, however, could have been worse, as Conseco (NYSE: CNO | Quote | Chart | News | PowerRating) previously said it expected a net loss of $202 million (BestWire, Oct. 28, 2008). On the morning of Nov. 6, Conseco's stock climbed 56.2% from the previous close, trading at $2.75 a share.
Net loss widened to $182 million, compared with a net loss of $52.7 million the same period a year ago. Current-quarter results included $240.9 million in net realized investment losses and losses related to its proposed transfer of Senior Health Insurance Company of Pennsylvania, formerly called Conseco Senior Health Insurance Co., to an independent trust, the company said.
Net realized investment losses included $50 million in other-than-temporary impairments.
Income before net realized investment losses, losses related to the proposed transfer of Senior Health and corporate interest and taxes, was $106.6 million, compared with a loss of $17.4 million in last year's third quarter.
The $106.6 million figure slightly exceeded the favorable end of ranges Conseco provided Oct. 23, said Jim Prieur, chief executive officer, in a statement. "All business lines contributed to earnings, and Bankers Life returned to its expected level of profitability, reflecting, in part, measures implemented to improve its long-term care business," he said.
Pretax operating earnings for its Bankers Life & Casualty unit rose slightly to $67.8 million, partly on steps to address higher-than-expected claims in its long-term care business, the company said.
This past summer, Conseco said it planned to transfer its Conseco Senior Health business to the independent trust. The stock of Conseco Senior, including its roughly $2.9 billion in assets supporting its long-term-care insurance liabilities, would be transferred to the senior health care oversight trust (BestWire, Aug. 11, 2008).
The transfer, which needs approval from the Pennsylvania Insurance Department, is expected to close in the fourth quarter.
In March, the Carmel, Ind.-based Conseco said it was reviewing strategic alternatives and hired investment banking firm Morgan Stanley as its adviser (BestWire, May 22, 2008).
(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
