Conseco, Inc. - Company Profile

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11825 N. PENNSYLVANIA STREET
CARMEL, IN 46032
(317) 817-6100

www.conseco.com

Sales

$4.7 billion

Business Description

Conseco, Inc. is a holding company for a group of insurance companies operating
throughout the United States that develops, markets and administers supplemental
individual life insurance, health insurance, annuity, and other insurance
products. We focus on serving the senior and middle-income markets, which we
believe are attractive, high growth markets. We sell our products through three
distribution channels: career agents, professional independent producers and
direct marketing.

We conduct our business through the following segments:

- CONSECO INSURANCE GROUP, which markets and distributes specified disease
insurance, Medicare supplement insurance, and certain life and annuity
products to the senior and middle-income markets through over 500
independent marketing organizations that represent over 9,100 producing
independent agents. This segment markets its products under the "Conseco"
brand.

- BANKERS LIFE, which consists of the businesses of Bankers Life & Casualty
Company and Colonial Penn Life Insurance Company. Bankers Life & Casualty
markets and distributes Medicare supplement insurance, life insurance,
long-term care insurance and fixed annuities to the senior market through
approximately 4,000 exclusive career agents and sales managers. Colonial
Penn markets graded benefit and simplified issue life insurance directly
to consumers through television advertising, direct mail, the internet
and telemarketing. Both Bankers Life & Casualty and Colonial Penn market
their products under their own brand names. See "Business -- Products --
Life -- Traditional Life" for an explanation of graded benefit and
simplified issue insurance.

- OTHER BUSINESS IN RUN-OFF, which includes blocks of business that we no
longer market or underwrite and are managed separately from our other
businesses. This segment consists of long-term care insurance sold
through independent agents and major medical insurance.

COMPETITIVE STRENGTHS

We believe our competitive strengths have enabled and will continue to
enable us to capitalize on the opportunities in our target markets. These
strengths include:

- our position as a leading national provider of life and health insurance
products to the senior market,

- our broad-based distribution networks,

- our strong, nationally recognized brand names, and

- our experienced management with a proven track record.

LEADING NATIONAL PROVIDER OF LIFE AND HEALTH INSURANCE PRODUCTS TO THE
SENIOR MARKET. The Bankers Life segment is one of the leading national
providers of life and health insurance products focused primarily on the senior
market. The career agents and direct distribution channels within Bankers Life
provide a number of products that are important to the financial well-being of
seniors: supplemental health coverage, including Medicare supplement and
long-term care insurance, as well as selected life and annuity products.
According to the most recently published study on the Medicare supplement market
by the Life Insurance Marketing Research Association, we were ranked second in
sales of agent-distributed Medicare supplement insurance based on collected
premiums in 2002. Our approximately 4,000 career agents are trained to cater to
the needs of the senior market. Current demographic trends indicate that the
senior market will continue to grow, and we believe our focus on seniors will
provide us with a significant opportunity to increase our share of this market.

BROAD-BASED DISTRIBUTION NETWORKS. Our broad-based distribution networks
provide us with a number of ways to reach our target markets. Our career agents
and direct distribution channels focus on the senior market. We also have
independent agents who focus on senior market products such as Medicare
supplement insurance. Our independent agents also sell certain of our products
that are specifically designed for the under-age-65 middle-income market. These
products include our specified disease insurance coverage, such as cancer and
heart/stroke products, as well as equity-indexed life insurance and
equity-indexed annuities. Despite the bankruptcy, we have retained the majority
of our career agents, including 80 percent of our top 1,000 career agents. Our
top 1,000 career agents collectively accounted for over 50 percent of Bankers
Life & Casualty's sales during 2003. In 2003, 52 percent of our sales were
through career agents, 45 percent were through independent distributors, and 3
percent were through direct marketing by Colonial Penn.

STRONG, NATIONALLY RECOGNIZED BRAND NAMES. We believe our brands are
widely recognized by our customers and distributors. We believe we have
successfully developed product-focused consumer recognition in our chosen
markets through three distinct brands -- Conseco, Bankers Life & Casualty and
Colonial Penn.