Conesco's Net Income Drops

Conseco Inc., a life-insurance company that emerged from bankruptcy in 2003, said Tuesday afternoon that its Q4 2006 net income dropped to $5.8 million from $77.1m in Q4 2005. EPS were $0.04; Conesco was expected to make $0.37/share in the quarter. New CEO Jim Prieur said he was disappointed with the results, but added that the company is "taking the necessary steps that will fundamentally change Conseco for the better." The company declined to give an earnings forecast, saying it would take time to improve the performance of its long-term care business. Conseco shares are down 17% over the past 12 months, while the 24-member KBW Insurance Index has gained 11% over the same period. In after-hours trading yesterday evening, shares were down 0.3% to $19.59.

Sources: Press Release, Bloomberg, MarketWatch
Commentary: Annuities Providers Eyed As Takeover Targets
Stocks/ETFs to watch: Conseco Inc. (CNO). Competitors: Genworth Financial Inc. (GNW), Allstate Corp. (ALL), American National Insurance Company (ANAT), MetLife Inc. (MET), Prudential Financial Inc (PRU). ETFs: streetTRACKS KBW Insurance (KIE), PowerShares Dynamic Insurance Portfolio ETF (PIC), iShares Dow Jones U.S. Insurance (IAK)

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