Bankers Life Holding Corp. Reports First Quarter 1996 Operating Results.

CHICAGO--(BUSINESS WIRE)--April 23, 1996--Bankers Life Holding Corp. (NYSE: BLH) today reported first quarter 1996 operating earnings (excluding realized investment gains, trading income, restructuring income and extraordinary charge) of $30.2 million, or 61 cents per share, compared to $26.9 million, or 51 cents per share, in the first quarter of 1995.

"Results for the quarter show Bankers is on the right track," President Fred E. Crosley said. "In response to intense competition and rapid change in the Medicare supplement insurance marketplace, we've taken many steps in the past year to conserve and improve the profitability of our in-force business and to refocus our agents on profitable growth. Those steps have, in the short-term, hurt top-line growth, but they are beginning to have their intended bottom-line impact. We'll continue our efforts to expand and enhance the productivity of our career agency force, we'll continue to emphasize cross-selling efforts to existing policyholder households and develop products tailored to meet specific customer needs, and we'll continue to explore alternative distribution channels for our products, where profitable."

Sales. "New long-term care sales rose 19 percent compared to first quarter 1995, which itself was up 34 percent over first quarter 1994," Crosley said. "Bankers is among the leading providers of long-term care insurance products, and we believe that these products will continue to provide significant growth opportunities. New Medicare supplement sales, down 18 percent compared to first quarter 1995, continued to reflect price competition and the effort of our agents to conserve existing policies. Recently announced price increases by certain competitors should improve the price competitiveness of Bankers' Medicare supplement products during 1996."

Collected premiums. Compared to the first quarter of 1995, Medicare supplement premiums were up 2 percent, to $163 million, long-term care insurance premiums increased by 22 percent, to $46 million, and annuity premiums declined 33 percent, to $54 million. Industrywide annuity sales have been negatively affected over the past several quarters by low interest rates, which have made competing investments relatively more attractive. Bankers is maintaining profit margins on its annuity business, rather than aggressively pursuing new sales.

Net income. First quarter 1996 net income of $30.0 million, or 61 cents per share, included: (1) trading losses of $0.7 million (1 cent per share); (2) net realized gains of $0.1 million (nil per share); (3) restructuring income of $10.4 million (21 cents per share), as the result of the sale of Bankers' investment in Noble Broadcast Group, Inc.; and (4) an extraordinary charge of $10.0 million (20 cents per share) related to early retirement of debt. This compares to first quarter 1995 net income of $26.8 million, or 51 cents per share, which included realized losses of $0.2 million (nil per share) and trading income of $0.1 million (nil per share).

Assets. Total assets at March 31, 1996, were $4.8 billion. Approximately 6 percent of investments were high-yield bonds, less than 1 percent were mortgages, and there were no significant nonperforming investments.

Notes payable. In March 1996 Bankers repurchased $148 million principal balance of its 13 percent senior subordinated notes for $173 million. The repurchase was made using proceeds from a revolving credit facility entered into in February 1996.

Shareholders' equity. Excluding the adjustment to record actively managed fixed maturity securities to estimated fair value, shareholders' equity at March 31, 1996, was $990.5 million ($20.08 per common share), compared to year-end 1995 shareholders' equity of $985.2 million ($19.47 per share). Including the fair value adjustment, shareholders' equity at March 31, 1996, was $974.4 million ($19.75 per common share), compared to year-end 1995 shareholders' equity of $1.03 billion ($20.39 per share). The decrease in market values of actively managed fixed maturity securities, which was related to the rise in interest rates, caused shareholders' equity to decrease by $62.8 million in 1996.

Basis of presentation. As previously reported, in a series of transactions during the second quarter of 1995, Conseco, Inc. (NYSE: CNC) increased its ownership interest in Bankers to above 80 percent. Consequently, Bankers adopted a new basis for its assets and liabilities under the "push down" method of accounting to recognize the cost of the ownership interest acquired by Conseco. This accounting was reflected in the balance sheet at June 30, 1995, and has been reflected in the statement of operations since the third quarter of 1995.

Share repurchases. In January 1996 Bankers completed the share repurchase program originally announced in April 1994 and expanded in August 1995. Under the program, Bankers purchased 5.3 million of its common shares at a cost of $105.3 million, leaving approximately 49.3 million shares currently outstanding, of which 90.5 percent are owned by Conseco. As a result of the repurchases, weighted average fully diluted shares outstanding for the first quarter of 1996 decreased by 6 percent from the first quarter of 1995. -0-

Bankers Life Holding Corp., headquartered in Chicago, Ill., is a specialized insurance holding company. Bankers' principal subsidiary, Bankers Life and Casualty Company, serves America's seniors as a leading provider of Medicare supplement, long-term care and other individual health, life and annuity products, which it markets through career agents and other distribution channels.

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               Bankers Life Holding Corp. (NYSE: BLH)
     Financial Highlights (in millions, except per-share amounts)

                                         Quarter Ended March 31:
                                           1996 (1)      1995

Revenues                                    $402.3      $374.6
Earnings from insurance operations
  (operating earnings)                        30.2        26.9
Trading income (losses), net of
  related costs and taxes                     (0.7)        0.1
Realized gains (losses), net of
  related costs, amortization and taxes        0.1        (0.2)
Restructuring income, net of tax              10.4         0.0
Extraordinary charge, net of tax             (10.0)        0.0
Net income                                   $30.0       $26.8

Per common share -- primary and
  fully diluted:
   Weighted average shares (in millions)      49.5        52.8
   Earnings from insurance operations
     (operating earnings)                    $0.61       $0.51
   Trading income (loss), net of
     related costs and taxes                 (0.01)       0.00
   Realized gains (losses), net of
     related costs, amortization
      and taxes                               0.00        0.00
   Restructuring income, net of tax           0.21        0.00
   Extraordinary charge, net of tax          (0.20)       0.00
   Net income                                $0.61       $0.51

(1) Financial data for periods subsequent to June 30, 1995,
reflect the adoption of a new basis of accounting.

                     Bankers Life Holding Corp.
              Consolidated Balance Sheet (in millions)

                                      At March 31,    At Dec. 31,
                                         1996            1995
                                      (Unaudited)     (Audited)

Assets
Investments:
   Actively managed fixed
     maturities at fair value          $3,241.0        $3,252.3
   Mortgage loans                           4.8             5.2
   Credit-tenant loans                     93.6            88.9
   Policy loans                            47.3            47.3
   Short-term investments                  35.8            42.8
   Other invested assets                   62.2            78.4
Total investments                       3,484.7         3,514.9
Accrued investment income                  55.0            49.5
Accounts receivable and
  uncollected premiums                     38.1            43.9
Reinsurance receivables                    32.0            29.9
Cost of policies purchased                558.0           515.6
Cost of policies produced                 284.6           244.2
Goodwill, net of accumulated
  amortization                            375.0           369.3
Other assets                               16.9            17.9
Total assets                            4,844.3         4,785.2

Liabilities and Shareholders'
  Equity
Liabilities
Insurance liabilities                   3,302.6         3,265.7
Income tax liabilities                     45.9            59.8
Investment borrowings                     104.9            28.1
Notes payable                             299.9           301.5
Other liabilities                         116.6            98.2
Total liabilities                       3,869.9         3,753.3

Shareholders' equity
Common stock and additional
  paid-in capital                         731.8           748.8
Unrealized appreciation
  (depreciation) of investments,
    net:
    Fixed maturity securities             (16.1)           46.7
    Other investments                       1.1            (0.2)
Retained earnings                         257.6           236.6
Total shareholders' equity                974.4         1,031.9

Total liabilities and
  shareholders' equity                 $4,844.3        $4,785.2

                      Bankers Life Holding Corp.
                Consolidated Statement of Operations
               (in millions, except per-share amounts)

                                        Quarter Ended March 31:
                                          1996 (1)      1995

Revenues
Insurance policy income                    $319.7      $313.9
Investment activity:
   Net investment income                     64.0        62.0
   Net trading income (loss)                 (1.1)        0.1
   Net realized gains (losses)                3.1        (1.3)
Restructuring income                         16.0         0.0
Other income (loss)                           0.6        (0.1)
Total revenues                              402.3       374.6

Benefits and expenses
Insurance policy benefits                   245.8       239.8
Amortization related to operations           24.0        30.6
Amortization related to realized
  gains (losses)                              2.9        (0.9)
Interest expense on annuities and
  financial products                         19.9        19.7
Interest expense on notes payable             7.1         8.2
Interest expense on investment
  borrowings                                  0.8         0.7
Other operating costs and expenses           38.6        34.7
Total benefits and expenses                 339.1       332.8

Income before income taxes and
  extraordinary charge                       63.2        41.8
Income taxes                                 23.2        15.0
Income before extraordinary charge           40.0        26.8
Extraordinary charge, net of tax             10.0         0.0
Net income                                  $30.0       $26.8

Per common share
Weighted average shares (in millions)        49.5        52.8
Earnings from insurance operations
  (operating earnings)                      $0.61       $0.51
Trading income (loss), net of
  related costs and taxes                   (0.01)       0.00
Realized gains (losses), net of
  related costs, amortization and
   taxes                                     0.00        0.00
 Restructuring income, net of tax            0.21        0.00
Income before extraordinary charge           0.81        0.51
Extraordinary charge, net of tax            (0.20)       0.00
Net income                                  $0.61       $0.51

(1) Financial data for periods subsequent to June 30, 1995,
reflect the adoption of a new basis of accounting.

CONTACT: Jim Rosensteele,

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