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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel insurer Conseco Inc.’s shares dropped 5.5 percent yesterday after an analyst downgraded the stock after regulators alleged that the company underfunded its policies.
The stock closed the day at $4.45.
New York-based Keefe, Bruyette and Woods Inc. cut its rating for Conseco and reduced its price target on the shares from $10 to $8, citing pending regulatory action in Florida and Iowa.
Fitch Ratings also downgraded the company’s debt ratings yesterday.
IBJ reported last month that regulators in Florida are threatening to suspend or revoke Conseco Life Insurance Co.’s license to do business in the state, alleging the Conseco subsidiary misled policyholders by issuing annual statements that failed to indicate their policies were underfunded.
They also say Conseco Life knew of the problem for at least three years, but took no known action to correct it.
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