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When was Conseco’s IPO and what was the opening price?
Conseco went public on Nov. 14, 1985, at a split-adjusted price of $0.4375 per share.
How did the name “Conseco” come about?
The company was incorporated on Aug. 28, 1979, as “Security National of Indiana Corp.” (SNI). SNI acquired its first life insurance company--Executive Income Life (which was later renamed Security National Life)--in February 1982 and began insurance operations. In August 1983, SNI’s 45%-owned affiliate, Security National Corp. (SNC), acquired another life insurance company--Consolidated National Life. In October 1983, the boards of SNI and SNC agreed to merge, leaving one holding company (SNI) with two life insurance subsidiaries. The SNI board decided to rename the company to reflect the coming together of CONsolidated National and SECurity National, and adopted the name “Conseco” on Dec. 3, 1983. (By the way, it’s pronounced kon-SEE-ko.)
How did Conseco’s logo come about?
Conseco has always been a different kind of insurance company—a company with a different attitude and culture. From our start in 1979, we’ve focused on moving up, achieving the next level of performance for our customers, agents, shareholders and employee associates. Our logo—we call it the Conseco Performance Mark—reflects our personality and symbolizes who we are. The rising steps suggest a company always moving up to the next level, a step ahead. The steps narrow and focus toward the apex, targeting the top. And they appear to continue beyond the mark, always looking to the next level of performance and new opportunities.
When is your next earnings announcement?
Conseco tentatively expects to announce results for the fourth quarter of 1997 (ended Dec. 31, 1997) on Feb. 25, 1997.
What is Conseco’s dividend policy?
Conseco’s policy is to reinvest most of its earnings for future growth, instead of paying them out in the form of dividends. We feel that this is the best way to maximize returns for our shareholders. Conseco will pay a quarterly cash dividend of 12-1/2 cents per share on Jan. 2, 1998, to common stockholders of record at the close of business on Dec. 19, 1997. Future cash dividends are at the discretion of the board of directors; the board intends to annually assess the adequacy of the dividend in relation to the market value of Conseco shares.
How much stock is owned by insiders?
Giving effect to unexercised stock options and convertible preferred shares, Conseco’s directors, officers and employees own or control about one-fourth of the company’s fully diluted shares. Of the 188.0 million shares outstanding at Sept. 30, 1997, insiders owned 20.1 million shares, or 11 percent.
What’s your corporate policy on stock buybacks?
We have committed to the rating agencies that we will maintain a debt/capital ratio of no more than 35 percent. Below that level, and when we have excess cash available, we will continue to view our own stock as a potential investment. Through Sept. 30, 1997, Conseco had repurchased more than 146 million of its common shares (adjusted for all stock splits) in various repurchase programs dating back to 1987:
Shares Repurchased | |||
Shares (Mil.) | Cost (Mil.) | Avg. Cost Per Share | |
1997 | 10.00 | $387.9 | $38.77 |
1996 | 1.66 | 26.0 | 15.69 |
1995 | 8.09 | 92.4 | 11.42 |
1994 | 27.99 | 360.2 | 12.87 |
1993 | 1.80 | 25.3 | 14.06 |
1992 | 7.75 | 49.4 | 6.37 |
1991 | 4.42 | 9.5 | 2.14 |
1990 | 19.39 | 30.0 | 1.55 |
1989 | 23.22 | 19.5 | 0.84 |
1988 | 24.46 | 18.4 | 0.75 |
1987 | 17.89 | 14.2 | 0.79 |
Total | 146.67 | $1,032.8 | $7.04 |
What are the redemption/conversion terms for Conseco’s Preferred Redeemable Increased Dividend Equity Securities (PRIDES)?
Shares of the PRIDES are redeemable beginning Feb. 1, 1999 (at the option of the company), in whole or in part, on not less than 15 days’ notice. If called for redemption, the PRIDES holder receives the number of shares of Conseco common stock calculated by dividing the “call price” on the appropriate call date by the current market price of the common stock--but will never receive more than four common shares nor less than 3.42 common shares per share of PRIDES. The following table shows the call prices per share of PRIDES (excluding accrued and unpaid dividends, which would be paid in cash to the redemption date) during the periods indicated:
Beginning 2/1/99 | $62.195 |
Beginning 5/1/99 | $61.928 |
Beginning 8/1/99 | $61.660 |
Beginning 11/1/99 | $61.393 |
On 2/1/00 | $61.125 |
If not previously called, the PRIDES will mandatorily convert into common stock on Feb. 1, 2000. At that point, each PRIDES holder would receive cash for all accrued dividends, plus four shares of common stock for each share of PRIDES.
PRIDES shares may be converted at any time (at the holder's option) into shares of Conseco common stock at a conversion price of $17.87 per share of common (equivalent to a conversion rate of approximately 3.42 shares of common for each PRIDES). Each PRIDES which has been called for redemption will be convertible only through the close of business on the date fixed for redemption. Upon conversion, no adjustments will be made for accrued dividends. Fractional shares of Conseco common stock will not be delivered upon conversion, but a cash adjustment will be paid in lieu of such fractional interests, based on the then current market price of the common stock.
For information on converting PRIDES into Conseco common stock, please contact the transfer agent, First Union National Bank, at (800) 829-8432.
Holders of PRIDES are entitled to receive, when declared by the board of directors, cash dividends at the rate of $4.279 per share per year, payable in the amount of $1.06975 quarterly on Feb. 1, May 1, Aug. 1 and Nov. 1 (record dates are set by the board).
Who do I contact about transferring my stock?
Questions about stock certificates, address changes, or other shareholder matters should be addressed to First Union National Bank, Corporate Trust Client Services NC-1153, 1525 West W.T. Harris Blvd. - 3C3, Charlotte, NC 28288-1153, (800) 829-8432.
How can I reach Investor Relations at Conseco?
You can contact us by completing the Guest Book. You can also call us toll-free at (800) 4-CONSECO, or e-mail us at ir@conseco.com.