Conseco reports second quarter results.

CARMEL, Ind.--(BUSINESS WIRE)--July 26, 1995--Conseco, Inc. (NYSE:CNC) today reported second quarter 1995 operating earnings--which exclude trading income, realized investment gains (losses), restructuring income and extraordinary charge--of $27.0 million, or $1.05 per fully diluted share.

This compares to operating earnings of $37.3 million, or $1.21 per fully diluted share, in the second quarter of 1994.

Six-month 1995 operating earnings were $52.2 million, or $2.00 per fully diluted share, compared to $77.3 million, or $2.43 per fully diluted share, in the first half of 1994.

Conseco Chairman Stephen C. Hilbert said, "These results keep us on track to equal or exceed analyst estimates of $4.80 of operating earnings per share in 1995, building to $7.20 per share in 1996. We expect to achieve this growth internally--without additional acquisitions.

"Conseco management, with a 24 percent stake in the company, is committed to maximizing shareholder returns," Hilbert said. "Our strategy for 1995 and 1996 has three elements," Hilbert said. "First and foremost, we'll focus on the opportunities for internal growth at our insurance company affiliates, taking advantage of their positions of market leadership to expand new business and maximize cross-selling opportunities. We reached an 85 percent ownership interest in Bankers Life Holding Corp. (NYSE: BLH) in late June, and we expect to reach 100 percent ownership of CCP Insurance, Inc. (NYSE: CCP) by the end of August.

"Second, we'll reduce our annual operating expenses by at least $35 million by eliminating CCP as a separate publicly traded entity, by consolidating duplicative functions between BLH's operations in Chicago and Conseco's in Carmel, Indiana, and by continuing to streamline operations. Most of these expense reductions will be in place by the end of 1995.

"Third, we'll continue to pursue our goal of building fee income, capitalizing on the outstanding performance record of Conseco Capital Management (CCM), Conseco's wholly owned investment advisor, to attract new clients for our investment management services."

Quarterly segment results

Insurance operations. Segment operating income per share in the second quarter was $1.13. Excluding the impact of Western National Corp. (NYSE:WNH), segment operating earnings per share were up 12 percent from second quarter 1994. (Conseco sold a 60 percent interest in WNH in February 1994 and sold its remaining 40 percent interest in December 1994.)

Several factors had a positive impact on segment operating income comparisons, including: (1) the acquisition of The Statesman Group by Conseco Capital Partners II, L.P. (Partnership II) in September 1994; (2) increased in-force business at affiliates BLH and CCP; and (3) Conseco's increased percentage ownership of BLH and CCP. These positives were offset by higher medical claim costs at BLH and by lower operating earnings at CCP and at Conseco's three wholly owned life insurance companies--Bankers National Life, Lincoln American Life and National Fidelity Life.

Segment results in 1995 reflect: (1) Conseco's share of the earnings generated by the life and health insurance companies in which Conseco holds significant equity investments, namely BLH (65 percent, on average, for the second quarter of 1995), CCP (49 percent) and Statesman (26 percent); and (2) the earnings generated by the wholly owned life insurance companies.

Fee-based services. Segment net income in the second quarter of 1995 was 21 cents per share, up 17 percent from second quarter 1994. Assets under management increased as a result of the acquisition of Statesman by Partnership II and from internal growth. These positives were offset by a reduction in the investment management fee paid by WNH following its sale.

Conseco's fee-based services include: (1) investment management, administrative and data processing services for insurance companies; (2) insurance and investment product marketing and distribution services for insurance companies and other financial institutions; and (3) financing services for Partnership II to help fund its acquisition transactions.

Assets under management at CCM grew to $27 billion at June 30, 1995, up 12 percent over year-end 1994. CCM manages investments for Conseco's affiliated companies and for non-affiliated clients--principally insurance companies.

Restructuring activities. Conseco recognized restructuring income of $66.5 million, or $2.57 per fully diluted share, in the second quarter of 1995 as the result of the release of deferred income taxes previously accrued on income related to BLH (such deferred tax is no longer required since Conseco now holds over 80 percent of BLH). It is expected that approximately $10 million additional accrued tax related to CCP will be released when the merger with CCP is completed. There was no restructuring activity in the second quarter of 1994. Conseco acquires life and health insurance companies through acquisition partnerships. As general partner, Conseco earns revenue: (1) when it generates returns for the limited partners which exceed prescribed targets; and (2) when restructuring gains are realized from the sale of portions of the acquired entities. Conseco's restructuring earnings vary from quarter to quarter based on restructuring events.

Additional discussion

Net income. Second quarter 1995 net income of $99.9 million, or $3.87 per fully diluted share, also included: (1) trading income of $0.8 million, or 3 cents per share; (2) net realized investment gains of $5.6 million, or 22 cents per share; and (3) the previously described restructuring income of $66.5 million, or $2.57 per share. Second quarter 1994 net income of $34.2 million, or $1.10 per fully diluted share, included: (1) trading losses of $1.2 million, or 4 cents per share; and (2) net realized investment losses of $1.9 million, or 7 cents per share.

Six-month 1995 net income of $124.3 million, or $4.78 per fully diluted share, also included (1) trading income of $1.5 million, or 6 cents per share; (2) net realized investment gains of $4.1 million, or 16 cents per share; and (3) restructuring income of $66.5 million, or $2.56 per share. Six-month 1994 net income of $114.3 million, or $3.58 per fully diluted share, included: (1) trading income of $1.4 million, or 4 cents per share; (2) net realized investment losses of $4.4 million, or 14 cents per share; (3) restructuring income of $42.4 million, or $1.33 per share, resulting from the sale of a majority stake in WNH; and (4) an extraordinary charge of $2.4 million, or 8 cents per share, related to early retirement of debt.

Share repurchases. During the 12 months ended June 30, 1995, Conseco repurchased 4.6 million shares at a cost of $202 million, leaving approximately 20.2 million shares currently outstanding. No shares have been repurchased since February 1995; Conseco terminated its share repurchase program in April 1995. As a result, weighted average fully diluted shares outstanding for the quarter and six-month 1995 periods decreased 17 percent and 18 percent, respectively, from the prior year.

Shareholders' equity. Excluding the effect of unrealized appreciation (depreciation) of fixed maturity investments, shareholders' equity at June 30, 1995, was $910.1 million, up 3 percent from $884.7 million at year-end 1994. The increase was primarily the result of net income, partially offset by the stock repurchase program, which reduced shareholders' equity by $92.4 million, or $1.32 per share. Excluding the effect of unrealized appreciation (depreciation), book value per common share at June 30, 1995, was $31.01, compared to $27.10 at year-end 1994. Under SFAS 115, Conseco is required to adjust the carrying value of its fixed maturity investments to reflect changes in interest rates, but is not permitted to adjust the carrying value of its insurance liabilities to reflect such changes. Conseco believes, therefore, that SFAS 115 provides a distorted view of the company's net worth. Including the effect of unrealized appreciation (depreciation), net of tax, shareholders' equity at June 30, 1995, was $943.4 million, compared to year-end 1994 shareholders' equity of $747.0 million. Including the effect of unrealized appreciation (depreciation), book value per common share at June 30, 1995, was $32.65, compared to $20.89 at year-end 1994.

Conseco, headquartered in Carmel, Ind., owns, operates and provides services to companies in the financial services industry (primarily life insurance companies, to date). -0-

                       Conseco, Inc. (NYSE:CNC)
    Financial Highlights (in millions, except per-share amounts)(a)

                                       Quarter Ended  Six Months Ended
                                          June 30:         June 30:
                                        1995    1994    1995    1994

Operating earnings(b)                  $27.0   $37.3   $52.2   $77.3
Trading income (losses), net of
 related costs and taxes                 0.8    (1.2)    1.5     1.4
Realized gains (losses), net of related
 costs, amortization and taxes           5.6    (1.9)    4.1    (4.4)
Restructuring income                    66.5     0.0    66.5    42.4
Extraordinary charge, net of tax         0.0     0.0     0.0    (2.4)
Net income                             $99.9   $34.2  $124.3  $114.3

Per common share-primary:
Weighted average shares (in millions)   21.3    26.5    21.6    27.4
Operating earnings(b)                  $1.09   $1.19   $2.02   $2.44
Trading income (losses), net of
 related costs and taxes                0.03   (0.04)   0.06    0.05
Realized gains (losses), net of related
 costs, amortization and taxes          0.23   (0.04)   0.17   (0.12)
Restructuring income                    3.12    0.00    3.08    1.55
Extraordinary charge, net of tax        0.00    0.00    0.00   (0.09)
Net income                             $4.47   $1.11   $5.33   $3.83

Per common share-fully diluted:
Weighted average shares (in millions)   25.8    31.0    26.0    31.9
Operating earnings(b)                  $1.05   $1.21   $2.00   $2.43
Trading income (losses), net of
 related costs and taxes                0.03   (0.04)   0.06    0.04
Realized gains (losses), net of related
 costs, amortization and taxes          0.22   (0.07)   0.16   (0.14)
Restructuring income                    2.57    0.00    2.56    1.33
Extraordinary charge, net of tax        0.00    0.00    0.00   (0.08)
Net income                             $3.87   $1.10   $4.78   $3.58

(a) 1994 includes the operations of Western National Life, a
wholly owned subsidiary until Feb.  15, 1994, when Conseco sold a 60
percent stake.  Conseco sold its remaining 40 percent interest in
Western on Dec.  23, 1994.  1995 includes The Statesman Group,
acquired by Conseco Capital Partners II, L.P.  on Sept.  29, 1994.

(b) Excludes trading income (losses), realized investment gains
(losses), restructuring income and extraordinary charge.

    Conseco publishes quarterly earnings summaries, investor guides
(containing additional statistical data), news releases, SEC filings
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    You can also call the hotline to hear prerecorded messages on
a number of topics, including: daily stock and bond trading, news
releases, financial results, investment portfolio data,
shareholder/bondholder address change instructions, quarterly cash
dividends and Conseco annuity and insurance product data.

                       Conseco, Inc.
         Consolidated Balance Sheet (in millions)

                                              At June 30,  At Dec. 31,
                                                  1995       1994
                                              (Unaudited)  (Audited)
Assets
Investments:
Actively managed fixed maturities at fair value $8,363.6   $7,067.1
Equity securities at fair value                     41.6       39.6
Mortgage loans                                     127.9      142.6
Credit-tenant loans                                 85.9       69.0
Policy loans                                       176.3      175.1
Investment in CCP Insurance, Inc.                  260.0      195.4
Other invested assets                               57.9       68.7
Trading account securities at fair value             0.0       21.6
Short-term investments                             317.9      295.4
Assets held in separate accounts                    90.1       84.9
Total investments                                9,521.2    8,159.4
Accrued investment income                          151.7      126.3
Reinsurance receivables                             47.1       45.5
Income taxes                                        22.8      195.2
Cost of policies purchased                         948.6    1,021.6
Cost of policies produced                          267.6      300.7
Goodwill, net of accumulated amortization          760.6      687.7
Property and equipment at cost, net of
 accumulated depreciation                           90.8       89.1
Securities segregated for future redemption of
 preferred stock of a subsidiary                    37.6       36.2
Cash segregated for the redemption of convertible
 subordinated debentures of a subsidiary            15.1       24.2
Other assets                                       139.7      126.0
Total assets                                   $12,002.8  $10,811.9

Liabilities and Shareholders' Equity
Liabilities:
Insurance liabilities                           $8,886.2   $8,537.4
Investment borrowings                              270.7        0.0
Other liabilities                                  370.4      318.0
Liabilities related to separate accounts            90.1       84.9
Notes payable of Conseco                           448.6      191.8
Notes payable of Partnership II entities, not
 direct obligations of Conseco                     308.0      331.1
Notes payable of Bankers Life Holding Corp., not
 direct obligations of Conseco                     272.2      280.0
Total liabilities                               10,646.2    9,743.2

Minority interest                                  413.2      321.7

Shareholders' equity:
Preferred stock                                    283.5      283.5
Common stock and additional paid-in capital        153.3      165.8
Unrealized appreciation (depreciation) of
 securities, net                                    34.5     (139.7)
Retained earnings                                  472.1      437.4
Total shareholders' equity                         943.4      747.0

Total liabilities and shareholders' equity     $12,002.8  $10,811.9

                       Conseco, Inc.
     Consolidated Statement of Operations (in millions)(a)

                                     Quarter Ended   Six Months Ended
                                        June 30:          June 30:
                                     1995     1994     1995     1994
Revenues
Insurance policy income             $334.8   $312.9   $675.9   $634.0
Investment activity:
Net investment income                186.6     73.4    366.0    141.9
Net trading income (losses)            0.7     (2.4)     2.3     (2.4)
Net realized gains (losses)           58.5     (4.0)    59.6    (11.6)
Fee revenue                           10.5     15.2     21.2     28.1
Other income                           3.5      0.1      6.2      0.2
Equity in earnings of CCP
 Insurance Inc.                        9.1      9.2     15.5     17.2
Equity in earnings of Western
 National Corp.                        0.0      9.5      0.0     31.4
Restructuring income                   0.0      0.0      0.0     65.3
Total revenues                       603.7    413.9  1,146.7    904.1

Benefits and expenses
Insurance policy benefits            251.6    224.0    507.4    456.3
Change in future policy benefits       9.1      8.7     15.7     19.8
Interest expense on annuities and
 financial products                   88.8     18.2    176.2     32.8
Interest expense on long-term debt    21.0     11.7     41.9     25.2
Interest expense on short-term
 investment borrowings                 5.6      2.7      7.8      4.9
Amortization related to operations    43.4     32.3     85.5     62.5
Amortization and change in future
 policy benefits related to realized
 gains and losses                     32.5      0.0     35.1     (0.9)
Other operating costs and expenses    55.8     52.9    110.9    105.9
Total benefits and expenses          507.8    350.5    980.5    706.5

Income before income taxes, minority
interest and extraordinary charge     95.9     63.4    166.2    197.6
Income tax expense (benefit)         (33.4)    18.5     (7.3)    58.3
Income before minority interest and
 extraordinary charge                129.3     44.9    173.5    139.3
Less minority interest                29.4     10.7     49.2     22.6
Income before extraordinary charge    99.9     34.2    124.3    116.7
Extraordinary charge on extinguishment
 of debt, net of taxes and minority
 interest                              0.0      0.0      0.0      2.4
Net income                            99.9     34.2    124.3    114.3
Less preferred stock dividends         4.6      4.6      9.2      9.3
Earnings applicable to common stock  $95.3    $29.6   $115.1   $105.0

(a)  On Feb. 15, 1994, Conseco sold a majority interest in
Western National Life (previously a wholly owned subsidiary).
Beginning with 1Q94, therefore, Western is reported on the equity
basis.  Conseco sold its remaining 40 percent interest in Western on
Dec. 23, 1994.  1995 includes the operations of The Statesman Group,
Inc., which was acquired by Partnership II on Sept. 29, 1994.

CONTACT: Conseco Inc.

Jim Rosensteele, 317/817-2893