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

CHICAGO--(BUSINESS WIRE)--July 31, 1996--Bankers Life Holding Corp. (NYSE: BLH) today reported second quarter 1996 operating earnings (excluding realized investment gains, trading income, restructuring income and extraordinary charge) of $33.0 million, or 67 cents per share, compared to $27.7 million, or 52 cents per share, in the second quarter of 1995.

For the first six months of 1996, operating earnings were $63.2 million, or $1.28 per share, compared to $54.6 million, or $1.03 per share in the first half of 1995.

"We're pleased with results for the quarter," President Fred E. Crosley said. "We demonstrated that our disciplined, bottom-line oriented approach can produce solid earnings growth despite continued top-line pressure in our Medicare supplement and annuity businesses. We will continue to focus on conserving and improving the profitability of our in-force Medicare supplement business as we seek to expand sales of long-term care and life insurance products. Our strategy for top-line growth is to: (1) enhance the productivity of our career agency force; (2) emphasize cross-selling efforts to existing policyholder households; (3) develop products tailored to meet specific customer needs; and (4) explore alternative distribution channels for our products, where profitable."

Sales. "New long-term care sales rose 11 percent over second quarter 1995, which itself was up 48 percent over second quarter 1994, to reach a record $11.7 million," 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 26 percent compared to second quarter 1995, continued to reflect price competition and the effort of our agents to conserve existing policies. Sales of traditional life insurance products increased 90 percent for the quarter, spurred by the introduction of two new products."

Collected premiums. Compared to the second quarter of 1995, Medicare supplement premiums were up 2 percent, to $149.5 million, long-term care insurance premiums increased by 19 percent, to $47.1 million, and annuity premiums declined 22 percent, to $54.8 million. Industrywide annuity sales have been negatively affected over the past several quarters by lower 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. Second quarter 1996 net income of $32.2 million, or 65 cents per share, included: (1) trading losses of $0.6 million (2 cents per share); and (2) net realized losses of $0.2 million (nil per share). This compares to second quarter 1995 net income of $33.4 million, or 63 cents per share, which included realized gains of $4.2 million (8 cents per share) and trading income of $1.5 million (3 cents per share).

Net income for the first six months of 1996 of $62.2 million, or $1.26 per share, included: (1) trading losses of $1.3 million (3 cents per share); (2) net realized losses 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 net income in the first half of 1995 of $60.2 million, or $1.14 per share, which included realized gains of $4.0 million (8 cents per share) and trading income of $1.6 million (3 cents per share).

Assets. Total assets at June 30, 1996, were $4.9 billion. Approximately 6 percent of investments were high-yield bonds, less than 1 percent were mortgages, and there were no significant nonperforming investments.

Shareholders' equity. Excluding the adjustment to record actively managed fixed maturity securities at estimated fair value, shareholders' equity at June 30, 1996, was $1.01 billion ($20.57 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 June 30, 1996, was $980.3 million ($19.87 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 $80.9 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 second quarter of 1996 decreased by 7 percent from the second quarter of 1995.

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. -0-

                Bankers Life Holding Corp. (NYSE: BLH)
   Financial Highlights (in millions, except per-share amounts) (1)

                                     Quarter Ended   Six Months Ended
                                        June 30,           June 30,
                                     1996     1995     1996     1995

Revenues                            $389.4   $392.3   $791.7   $766.9
Earnings from insurance
 operations (operating earnings)(2)   33.0     27.7     63.2     54.6
Trading income (losses), net of
 related costs and taxes              (0.6)     1.5     (1.3)     1.6
Realized gains (losses),
 net of related costs,
 amortization and taxes               (0.2)     4.2     (0.1)     4.0
Restructuring income, net of tax       0.0      0.0     10.4      0.0
Extraordinary charge, net of tax       0.0      0.0    (10.0)     0.0
Net income                           $32.2    $33.4    $62.2    $60.2

Per common share--primary and fully diluted:
Weighted average shares (in millions) 49.3     52.8     49.4     52.8
Earnings from insurance operations
 (operating earnings)(2)             $0.67    $0.52    $1.28    $1.03
Trading income (loss), net of
 related costs and taxes             (0.02)    0.03    (0.03)    0.03
Realized gains (losses),
 net of related costs,
 amortization and taxes               0.00     0.08     0.00     0.08
Restructuring income, net of tax      0.00     0.00     0.21     0.00
Extraordinary charge, net of tax      0.00     0.00    (0.20)    0.00
Net income                           $0.65    $0.63    $1.26    $1.14

Total assets at period-end (in millions)         $4,867.3    $4,672.1
Notes payable of Bankers at period-end
 (in millions)                                   $  297.9    $  272.2
Book value per share, excluding the effect of
 unrealized appreciation (depreciation)
 of fixed maturity investments                   $  20.57    $  18.21

(1)  All data unaudited. Financial data for periods subsequent to
June 30, 1995, reflect the adoption of a new basis of accounting.
(2)  Excludes trading income (losses), realized investment gains
(losses), restructuring income and extraordinary charge.

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

                                         At June 30,       At Dec. 31,
                                            1996              1995
                                         (Unaudited)        (Audited)
Assets
Investments:
 Actively managed fixed maturities
  at fair value                          $3,160.7            $3,252.3
 Mortgage loans                               4.8                 5.2
 Credit-tenant loans                        102.0                88.9
 Policy loans                                47.6                47.3
 Short-term investments                      92.2                42.8
 Other invested assets                       72.2                78.4
Total investments                         3,479.5             3,514.9
Accrued investment income                    56.7                49.5
Accounts receivable and uncollected
 premiums                                    38.0                43.9
Reinsurance receivables                      33.9                29.9
Cost of policies purchased                  552.5               515.6
Cost of policies produced                   312.7               244.2
Goodwill, net of accumulated
 amortization                               376.2               369.3
Other assets                                 17.8                17.9
Total assets                              4,867.3             4,785.2

Liabilities and Shareholders' Equity
Liabilities
Insurance liabilities                     3,327.0             3,265.7
Income tax liabilities                       27.2                59.8
Investment borrowings                       146.0                28.1
Notes payable                               297.9               301.5
Other liabilities                            88.9                98.2
Total liabilities                         3,887.0             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                  (34.2)               46.7
 Other investments                            0.3                (0.2)
Retained earnings                           282.4               236.6
Total shareholders' equity                  980.3             1,031.9

Total liabilities and shareholders'
 equity                                  $4,867.3            $4,785.2

                      Bankers Life Holding Corp.
         Consolidated Statement of Operations (in millions) (1)

                                    Quarter Ended    Six Months Ended
                                       June 30            June 30
                                    1996     1995      1996     1995
Revenues
Insurance policy income            $324.3   $307.0    $644.0   $620.9
Investment activity:
 Net investment income               65.8     65.9     129.8    127.9
 Net trading income (loss)           (0.9)     2.4      (2.0)     2.5
 Net realized gains (losses)          2.2     14.5       5.3     13.2
Restructuring income                  0.0      0.0      16.0      0.0
Other income (loss)                  (2.0)     2.5      (1.4)     2.4
Total revenues                      389.4    392.3     791.7    766.9

Benefits and expenses
Insurance policy benefits           240.0    238.0     485.8    477.8
Amortization related to operations   31.6     30.4      55.6     61.0
Amortization related to realized
 gains and losses                     2.5      7.9       5.4      7.0
Interest expense on annuities and
 financial products                  20.3     18.3      40.2     38.0
Interest expense on notes payable     5.6      7.9      12.7     16.1
Interest expense on investment
 borrowings                           1.5      2.7       2.3      3.4
Other operating costs and expenses   36.1     35.0      74.7     69.7
Total benefits and expenses         337.6    340.2     676.7    673.0
Income before income taxes and
 extraordinary charge                51.8     52.1     115.0     93.9
Income taxes                         19.6     18.7      42.8     33.7
Income before extraordinary charge   32.2     33.4      72.2     60.2
Extraordinary charge on
 extinguishment of debt,
 net of taxes                         0.0      0.0      10.0      0.0
Net income                          $32.2    $33.4     $62.2    $60.2

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

CONTACT: Bankers Life Holding Corp.

Jim Rosensteele, 317/817-2893