CEO Details Turnaround Plan.
Conseco Conseco (NYSE: CNO), originally Security Life of Indiana, is a financial services organization based in Carmel, Indiana. Conseco's insurance subsidiaries provide life insurance, annuity and supplemental health insurance products to more than 4 million customers in the Inc. Chief Executive Officer Gary C.Wendt, who was brought in last June to turn the company around, said the company's insurance operations need to grow by 10% a year through 2004 to return to the results last seen in 1997, the year before the company began to experience financial troubles.
Wendt said two-thirds of that growth will come from cost reductions. And Conseco Finance Co., its credit and mortgage lending arm, must earn an interest rate of an additional 25 basis points on its loans as the company works to return to profitability, he said.
Conseco posted a 9.5% jump in first-quarter net income, largely on the strength of cost-cutting and a one-time gain from the sale of its stake in a riverboat riv·er·boat
A boat suitable for use on a river. operation. Firstquarter net income rose to $80.2 million, compared with a year earlier.
Wendt has restructured operations, sold off noncore assets and instituted management processes that he used in his former position as president, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of GE Capital Services.
Among the changes:
* Nonstrategic assets valued at $2 billion were sold. "It's not to our advantage to own Van Gogh paintings or the biggest air force east of the Mississippi Mississippi, state, United States
Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by ,"Wendt said, referring to the sale of the corporate art collection and private planes.
* The corporate staff has been reduced to 250 positions from 750.
* More than 2,000 data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a jobs will be moved to India.
A.M. Best #: 69862
Rating: Subsidiaries rated A-
Headquarters: Carmel, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .
Lines of Business: Life, group accident & health, supplemental health, annuities, major medical