A.M. Best Places Conseco Insurance Subsidiaries Under Review.

Business Editors

OLDWICK, N.J.--(BUSINESS WIRE)--Oct. 3, 2001

A.M. Best Co. has placed the financial strength ratings of A- (Excellent) for the primary insurance subsidiaries of Conseco, Inc. (NYSE: CNC), Carmel, Ind., under review with negative implications.

These rating actions follow Conseco's earlier announcement that it will be taking charges in the third quarter of 2001 reducing after tax earnings by approximately $475 million.

A significant portion of the charges relate to write downs of interest-only securities, collateralized debt obligations and equity investment in TeleCorp as well as additional reserving for D&O and major medical books of business.

While A.M. Best notes these items principally reflect non-cash events and should not affect Conseco's ability to repay its near-term debt obligations, A.M. Best will review with senior management the underlying operating fundamentals of both the finance and insurance operations, particularly in light of current industry trends and the macro economic environment.

The following insurance subsidiaries of Conseco, Inc. were placed under review with negative implications.

-- Conseco Annuity Assurance Co.

-- Conseco Direct Life Insurance Co.

-- Conseco Variable Insurance Co.

-- Conseco Medical Insurance Co.

-- Conseco Life Insurance Co.

-- Conseco Senior Health Insurance Co.

-- Conseco Health Insurance Co.

-- Conseco Life Insurance Company of New York

-- Bankers Life & Casualty Co.

-- Manhattan National Life Insurance Co.

-- Pioneer Life Insurance Co.

-- United Presidential Life Insurance Co.

-- Washington National Insurance Co.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com.