-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JGYBCUeajizk9gPmbsYAt2F1SDd0XBE6SsKQ1rLhrGDJd4ozUHvB3Agsf1jhrX9p He1yim/YPNLfCb2FLpbCHQ== 0000719241-99-000009.txt : 19990629 0000719241-99-000009.hdr.sgml : 19990629 ACCESSION NUMBER: 0000719241-99-000009 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990628 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSECO INC CENTRAL INDEX KEY: 0000719241 STANDARD INDUSTRIAL CLASSIFICATION: ACCIDENT & HEALTH INSURANCE [6321] IRS NUMBER: 351468632 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-09250 FILM NUMBER: 99653489 BUSINESS ADDRESS: STREET 1: 11825 N PENNSYLVANIA ST CITY: CARMEL STATE: IN ZIP: 46032 BUSINESS PHONE: 3178176100 MAIL ADDRESS: STREET 1: 11825 N PENNSYLVANIA ST CITY: CARMEL STATE: IN ZIP: 46032 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY NATIONAL OF INDIANA CORP DATE OF NAME CHANGE: 19840207 11-K 1 CONSECOSAVE FORM 11-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 11-K [ x ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________ Commission file number: 1-9250 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: ConsecoSave Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive offices: Conseco, Inc. 11825 North Pennsylvania Street Carmel, Indiana 46032 CONSECOSAVE PLAN INDEX a) Financial Statements Report of Independent Accountants.................................................................... 3 Statement of Net Assets Available for Plan Benefits - December 31, 1998 and 1997..................... 4 Statement of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 1998 and 1997................................................... 5 Notes to Financial Statements........................................................................ 6 Supplemental schedules............................................................................... 17 b) Exhibit 23 Consent of Independent Accountants 2
REPORT OF INDEPENDENT ACCOUNTANTS To the Plan Trustees ConsecoSave Plan Carmel, Indiana We have audited the accompanying statement of net assets available for plan benefits of the ConsecoSave Plan (the "Plan") as of December 31, 1998 and 1997, and the related statement of changes in net assets available for plan benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1998 and 1997, and the changes in net assets available for plan benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes as of December 31, 1998 and reportable transactions for the year ended December 31, 1998 are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ PricewaterhouseCoopers LLP ------------------------------ Indianapolis, Indiana PricewaterhouseCoopers LLP June 25, 1999 3 CONSECOSAVE PLAN STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS December 31, 1998 and 1997
1998 1997 ------------ ----------- Assets: Investments in ConsecoSave Trust Portfolios at fair value: Conseco Fund Group: Asset Allocation Fund (cost: 1998 - $3,587,968; 1997 - $1,176,950) $ 3,574,776 $ 1,115,647 Equity Fund (cost: 1998 - $40,818,011; 1997 - $37,388,789) 49,634,063 42,342,438 Fixed Income Fund (cost: 1998 - $9,106,834; 1997 - $7,454,359) 9,223,310 7,585,227 Conseco Stock Portfolio (cost: 1998 - $35,041,028; 1997 - $23,246,348) 43,552,107 49,308,243 Government Securities Portfolio (cost: 1998 - $4,785,312; 1997 - $4,195,463) 4,836,539 4,230,572 Interest Income Portfolio (cost: 1998 - $16,517,909; 1997 - $15,981,608) 16,517,909 15,981,608 Money Market Portfolio (cost: 1998 - $10,072,484; 1997 - $9,443,902) 10,072,484 9,443,902 S & P 500 Portfolio (cost: 1998 - $13,379,249; 1997 - $7,276,547) 18,367,828 9,116,422 ------------ ------------ Total investments 155,779,016 139,124,059 Employer contribution receivable 3,118,942 2,414,654 ------------ ------------ Net assets available for plan benefits $158,897,958 $141,538,713 ============ ============ The accompanying notes are an integral part of these financial statements.
4 CONSECOSAVE PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS for the years ended December 31, 1998 and 1997
1998 1997 ------------ ----------- Investment income: Interest and dividends $ 4,519,781 $ 6,785,534 Net realized gains on sales of investments 5,575,429 6,488,561 Net unrealized appreciation (depreciation) in fair value of investments (10,489,872) 9,515,557 ------------ ------------ Net investment income (loss) (394,662) 22,789,652 ------------ ------------ Contributions: Employee contributions 16,278,166 15,811,445 Employer contributions 3,470,877 4,666,623 Assets transferred in conjunction with mergers (Note 1) 17,829,153 3,498,745 ------------ ------------ Total contributions 37,578,196 23,976,813 ------------ ------------ Deductions: Benefits paid 19,824,289 12,669,600 ------------ ------------ Net increase in net assets available for plan benefits 17,359,245 34,096,865 Net assets available for plan benefits, beginning of year 141,538,713 107,441,848 ------------ ------------ Net assets available for plan benefits, end of year $158,897,958 $141,538,713 ============ ============ The accompanying notes are an integral part of these financial statements.
5 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS 1. Summary of Significant Accounting Policies The accompanying financial statements of the ConsecoSave Plan (the "Plan") have been prepared in accordance with generally accepted accounting principles which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results may differ from these estimates. As a result of various acquisitions made by Conseco, Inc. ("Conseco"), the Plan Sponsor, during 1996 and 1997, the 401(K) assets of certain subsidiaries acquired by Conseco were transferred to the Plan. The value of the assets that were transferred totalled $17,829,153 and $3,498,745 during the years ended December 31, 1998 and 1997, respectively. Investments The Plan provides the following investment options for voluntary employee contributions: Conseco Stock Portfolio; Conseco Fund Group - Asset Allocation, Equity and Fixed Income Funds; Interest Income Portfolio; Money Market Portfolio; Government Securities Portfolio; and the Standard and Poor's 500 Index ("S & P 500") Portfolio. Employer contributions are invested solely in the common stock of Conseco. The Plan's investments, except for the Conseco Stock portfolio which is held by the Trustees of the Plan, are maintained under a group annuity contract in a separate account of Bankers National Life Insurance Company ("BNL"), an indirect wholly owned subsidiary of Conseco. Investments in each portfolio are valued at the close of each New York Stock Exchange business day. The cost of investments sold is determined on the specific identification basis. Investment transactions are accounted for on the settlement date. 6 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 1. Summary of Significant Accounting Policies (Continued) Investments (continued) On May 1, 1997, the Corporate Bond and Equity Portfolios were replaced with the Equity and Fixed Income funds, respectively, and a new Asset Allocation fund was added. The new funds are offered by Conseco Fund Group, which is managed by Conseco Capital Management, Inc., a wholly-owned subsidiary of Conseco. The Asset Allocation Fund invests in debt securities, equity securities, and money market instruments. The Equity Fund invests primarily in equity securities and other securities having the investment characteristics of common stocks. The Fixed Income Fund invests primarily in investment-grade debt securities. These funds are valued using the net asset value of their respective portfolios at the end of each New York Stock Exchange business day. The Conseco Stock Portfolio only invests in the common stock of Conseco except for residual cash which may remain in the fund from time to time. The Conseco common stock is valued at its closing market price on the New York Stock Exchange. The Interest Income Portfolio invests in guaranteed interest contracts issued by affiliated life insurance companies. These contracts are carried at their accumulated contract values, which are cost adjusted for interest credited (at a blended rate of 5.48 percent and 5.94 percent at December 31, 1998 and 1997, respectively). Such carrying values approximate fair values. As of December 31, 1998, the contracts, interest rates, and expiration dates are as follows: Bankers National Life Insurance Company - 1996 7.00% June 30, 2001 Conseco Annuity Assurance Company (successor by merger to Beneficial Standard Life Insurance Company) - 1996 6.00% December 31, 2001 Conseco Variable Insurance Company (formerly Great American Reserve Insurance Company) - 1995 7.45% December 31, 2000 Conseco Variable Insurance Company (formerly Great American Reserve Insurance Company) - 1998 5.0% December 31, 1999 For the Government Securities Portfolio and the S & P 500 Portfolio, the securities traded on a national securities exchange are valued at closing market prices, or lacking any sales, at the mean between the closing bid and asked prices. Securities traded in the over-the-counter-market are valued at the mean between the bid and asked prices or yield equivalent as obtained from one or more dealers who make a market in such securities. For securities for which market quotations are not readily available, the estimated fair values are determined using values obtained from independent pricing services. The Government Securities Portfolio invests in securities issued by the U.S. Government or an agency or instrumentality of the U.S. Government, including mortgage-backed securities. The U.S. Government securities which may be purchased include direct obligations issued by the U.S. Treasury, such as Treasury Bills, certificates of indebtedness, notes and bonds. The Money Market Portfolio invests in money market instruments maturing within one year, with an average maturity of 120 days or less. Such investments are carried at amortized cost which approximates fair value. 7 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 1. Summary of Significant Accounting Policies (Continued) Investments (continued) The S & P 500 Portfolio invests in a Standard and Poor's Depository Receipt, which is a trust that is traded on the American Stock Exchange (Ticker Symbol SPY) and is intended to track the price performance and dividend yield of the S & P 500 index. Administrative Expenses Operating expenses and maintenance fees incurred during the years ended December 31, 1998 and 1997, except for investment custodial fees, were paid by Conseco Services, LLC on behalf of the Plan. Future payment of such expenses by Conseco Services, LLC is at Conseco's discretion. Income Taxes Under Sections 401(a) and 501(a), respectively, of the Internal Revenue Code, the Plan is qualified and the ConsecoSave Trust, a collective trust established under the Plan, is tax-exempt. 2. Plan Description The Plan is a defined contribution plan pursuant to Section 401(k) of the Internal Revenue Code. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). Established on April 1, 1989, and amended and restated on January 1, 1993, October 1, 1995, and January 1, 1997, the Plan includes all employees of Conseco and its subsidiaries. Participation is voluntary. Employees must meet certain service requirements as defined in the Plan to be eligible to participate. 8 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 2. Plan Description (continued) Employee contributions to the Plan are made through periodic payroll deductions in increments of 1.0 percent of the participant's annual earnings, not to exceed the lesser of 15.0 percent of the participant's annual earnings or the maximum amount specified by federal tax law ($10,000 and $9,500 for pre-tax contributions for 1998 and 1997, respectively). Participants can make pre-tax and/or after-tax contributions. Participants designate the portfolios in which their contributions are invested. For 1998 and 1997, Conseco matched 50.0 percent of each participant's pre-tax contributions up to a maximum of 4.0 percent of the participant's annual earnings. Additional amounts may be contributed by Conseco at the discretion of its Board of Directors. The 1998 and 1997 employer match contributions did not exceed 4.0 percent. All employer contributions are made to the Conseco Stock Portfolio, which invests solely in Conseco common stock. Such contributions are made no later than the due date for filing Conseco's federal income tax return, including extensions. On February 28, 1997, in recognition of Conseco's 15th anniversary, a special employer contribution was awarded to each employee of 15 shares of Conseco common stock which was added to each employee's account in the Plan. The total shares awarded were 57,375 with a fair value of $2,251,969. This contribution was subject to the normal vesting rules. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. Participants, who were in the plan prior to December 31, 1992, have a gradual vesting schedule based upon length of service and are fully vested in Conseco's contributions after five years of service. After that date, participants are still subject to a gradual vesting schedule based upon length of service but are fully vested after six years. The non-vested interests of withdrawn participants are used to reduce Conseco's future contributions. Benefits under the Plan are paid in cash in a lump sum or quarterly or annual installment payments, whole shares of Conseco common stock, shares of Conseco Fund Group mutual funds or a combination thereof. A participant may make withdrawals after age 59 1/2, and under certain circumstances are allowed to make hardship withdrawals and after-tax deposit account withdrawals. Participants are permitted to transfer account balances, except the Conseco Stock Portfolio, between portfolios at any time in 1.0 percent increments. Transfers involving the Conseco Stock Portfolio may only be made during a 10-business day period each quarter, beginning on the 3rd business day following the quarterly earnings release. Participants may obtain loans up to 50.0 percent of the vested portion of their account balances, excluding employer contributions in the Conseco Stock Portfolio, to a maximum loan of $50,000. Only one loan may be outstanding at a time. Repayment of both principal and interest is made to the participant's account via payroll deduction or a lump sum. 9 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 2. Plan Description (continued) The Plan is administered by Conseco which establishes the rules and procedures necessary for the Plan's operations. Although it has not expressed any intent to do so, Conseco has the right to terminate the Plan. In the event the Plan is terminated, each participant's account shall be nonforfeitable with respect to both the participant's and employer's contributions and the net assets shall be set aside for payment to the participants. Distribution shall be made by the Trustee in a lump sum or in substantially equal installments during a period not exceeding one year following such termination. The foregoing description of the Plan provides only limited information. Participants should refer to the Summary Plan Description for a more complete description of the Plan's provisions. 10 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio
for the Year Ended December 31, 1998 ---------------------------------------------------------------------------------- Conseco Asset Fixed Government Stock Allocation Equity Income Securities Portfolio Fund Fund Fund Portfolio Subtotals (a) --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 636,034 $ 96,407 $ 1,287,894 $ 603,678 $ 290,083 $ 2,914,096 Net realized gains (losses) on sales of investments 4,004,003 (38,530) 1,444,216 85,201 13,039 5,507,929 Net unrealized appreciation (depreciation) in fair value of investments (17,550,816) 48,111 3,862,403 (14,392) 16,118 (13,638,576) ------------------------------------------------------------------------------------ Net investment income (loss) (12,910,779) 105,988 6,594,513 674,487 319,240 (5,216,551) ------------------------------------------------------------------------------------ Contributions: Employee contributions 3,851,981 637,845 4,664,313 853,767 643,465 10,651,371 Employer contributions 3,470,877 -- -- -- -- 3,470,877 Assets transferred in conjunction with mergers 4,866,849 2,544,972 3,454,033 42,610 -- 10,908,464 ------------------------------------------------------------------------------------ Total contributions 12,189,707 3,182,817 8,118,346 896,377 643,465 25,030,712 ------------------------------------------------------------------------------------ Deductions: Benefits paid 5,373,144 717,403 2,568,978 499,945 439,538 9,599,008 ------------------------------------------------------------------------------------ Net employee transfers 1,042,368 (112,273) (4,852,256) 567,164 82,800 (3,272,197) ------------------------------------------------------------------------------------ Net increase (decrease) in net assets available for plan benefits (5,051,848) 2,459,129 7,291,625 1,638,083 605,967 6,942,956 Net assets available for plan benefits, beginning of year 51,722,897 1,115,647 42,342,438 7,585,227 4,230,572 106,996,781 ------------------------------------------------------------------------------------ Net assets available for plan benefits, end of year $46,671,049 $ 3,574,776 $49,634,063 $9,223,310 $4,836,539 $113,939,737 ==================================================================================== (a) Amounts are carried forward to page 12.
11 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio, continued
for the Year Ended December 31, 1998, continued --------------------------------------------------------------------------------------- Interest Money S & P Income Market 500 Subtotals (a) Portfolio Portfolio Portfolio Totals --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 2,914,096 $ 882,149 $ 531,014 $ 192,522 $ 4,519,781 Net realized gains (losses) on sales of investments 5,507,929 -- (1,303) 68,803 5,575,429 Net unrealized appreciation (depreciation) in fair value of investments (13,638,576) -- -- 3,148,704 (10,489,872) ------------------------------------------------------------------------- Net investment income (loss) (5,216,551) 882,149 529,711 3,410,029 (394,662) ------------------------------------------------------------------------- Contributions: Employee contributions 10,651,371 1,345,692 1,454,136 2,826,967 16,278,166 Employer contributions 3,470,877 -- -- -- 3,470,877 Assets transferred in conjunction with mergers 10,908,464 3,863,741 2,945,560 111,388 17,829,153 ------------------------------------------------------------------------- Total contributions 25,030,712 5,209,433 4,399,696 2,938,355 37,578,196 ------------------------------------------------------------------------- Deductions: Benefits paid 9,599,008 3,998,584 5,253,736 972,961 19,824,289 ------------------------------------------------------------------------- Net employee transfers (3,272,197) (1,556,697) 952,911 3,875,983 -- ------------------------------------------------------------------------- Net increase (decrease) in net assets available for plan benefits 6,942,956 536,301 628,582 9,251,406 17,359,245 Net assets available for plan benefits, beginning of year 106,996,781 15,981,608 9,443,902 9,116,422 141,538,713 ------------------------------------------------------------------------- Net assets available for plan benefits, end of year $113,939,737 $16,517,909 $10,072,484 $18,367,828 $158,897,958 ========================================================================== (a) Amounts have been carried forward from page 11.
12 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio
for the Year Ended December 31, 1997 ---------------------------------------------------------------------------------- Conseco Asset Fixed Government Stock Allocation Equity Income Securities Portfolio Fund Fund Fund Portfolio Subtotals (a) --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 61,623 $ 80,787 $ 4,180,215 $ 395,008 $ 266,090 $ 4,983,723 Net realized gains (losses) on sales of investments 1,594,798 11,408 1,040,410 21,677 28,940 2,697,233 Net unrealized appreciation (depreciation) in fair value of investments 10,380,328 (61,303) 4,953,649 130,868 44,390 15,447,932 ------------------------------------------------------------------------------------ Net investment income (loss) 12,036,749 30,892 10,174,274 547,553 339,420 23,128,888 ------------------------------------------------------------------------------------ Contributions: Employee contributions 5,749,224 147,542 3,007,531 524,890 495,620 9,924,807 Employer contributions 4,666,623 -- -- -- -- 4,666,623 Assets transferred in conjunction with mergers 356,973 274,674 951,445 165,216 64,126 1,812,434 ------------------------------------------------------------------------------------ Total contributions 10,772,820 422,216 3,958,976 690,106 559,746 16,403,864 ------------------------------------------------------------------------------------ Deductions: Benefits paid 1,046,050 30,024 5,105,918 723,553 632,238 7,537,783 ------------------------------------------------------------------------------------ Net employee transfers 2,872,055 692,563 33,315,106 7,071,121 (249,943) 43,700,902 ------------------------------------------------------------------------------------ Net increase (decrease) in net assets available for plan benefits 24,635,574 1,115,647 42,342,438 7,585,227 16,985 75,695,871 Net assets available for plan benefits, beginning of year 27,087,323 -- -- -- 4,213,587 31,300,910 ------------------------------------------------------------------------------------ Net assets available for plan benefits, end of year $51,722,897 $ 1,115,647 $42,342,438 $7,585,227 $4,230,572 $106,996,781 ==================================================================================== (a) Amounts are carried forward to page 14.
13 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio, continued
for the Year Ended December 31, 1997, continued --------------------------------------------------------------------------------------- Interest Money S & P BLH Income Market 500 Stock Subtotals (a) Portfolio Portfolio Portfolio Portfolio Subtotals (b) --------------------------------------------------------------------------------------- Investment Income: Interest and dividends $ 4,983,723 $ 992,045 $ 454,122 $ 107,272 $ -- $ 6,537,162 Net realized gains (losses) on sales of investments 2,697,233 -- -- 118,570 -- 2,815,803 Net unrealized appreciation (depreciation) in fair value of investments 15,447,932 -- -- 1,456,843 (164,322) 16,740,453 ------------------------------------------------------------------------------------- Net investment income (loss) 23,128,888 992,045 454,122 1,682,685 (164,322) 26,093,418 ------------------------------------------------------------------------------------- Contributions: Employee contributions 9,924,807 1,479,600 1,099,939 1,616,420 -- 14,120,766 Employer contributions 4,666,623 -- -- -- -- 4,666,623 Assets transferred in conjunction with mergers 1,812,434 197,379 668,917 820,015 -- 3,498,745 ------------------------------------------------------------------------------------- Total contributions 16,403,864 1,676,979 1,768,856 2,436,435 -- 22,286,134 ------------------------------------------------------------------------------------- Deductions: Benefits paid 7,537,783 3,036,482 819,452 591,267 2,946 11,987,930 ------------------------------------------------------------------------------------- Net employee transfers 43,700,902 (1,913,092) 338,900 1,543,801 (828,945) 42,841,566 -------------------------------------------------------------------------------------- Net increase (decrease) in net assets available for plan benefits 75,695,871 (2,280,550) 1,742,426 5,071,654 (996,213) 79,233,188 Net assets available for plan benefits, beginning of year 31,300,910 18,262,158 7,701,476 4,044,768 996,213 62,305,525 ------------------------------------------------------------------------------------- Net assets available for plan benefits, end of year $106,996,781 $15,981,608 $9,443,902 $9,116,422 $ -- $141,538,713 ====================================================================================== (a) Amounts have been carried forward from page 13. (b) Amounts have been carried forward to page 15.
14 CONSECOSAVE PLAN NOTES TO FINANCIAL STATEMENTS - (Continued) 3. Changes in Net Assets Available for Plan Benefits By Portfolio, continued
for the Year Ended December 31, 1997, continued ------------------------------------------------------- (Former) Corporate (Former) Bond Equity Subtotals (a) Portfolio Portfolio Total ------------------------------------------------------- Investment Income: Interest and dividends $ 6,537,162 $ 165,618 $ 82,754 $ 6,785,534 Net realized gains (losses) on sales of investments 2,815,803 (26,970) 3,699,728 6,488,561 Net unrealized appreciation (depreciation) in fair value of investments 16,740,453 (66,976) (7,157,920) 9,515,557 ------------------------------------------------------- Net investment income (loss) 26,093,418 71,672 (3,375,438) 22,789,652 ------------------------------------------------------- Contributions: Employee contributions 14,120,766 319,436 1,371,243 15,811,445 Employer contributions 4,666,623 -- -- 4,666,623 Assets transferred in conjunction with mergers 3,498,745 -- -- 3,498,745 ------------------------------------------------------- Total contributions 22,286,134 319,436 1,371,243 23,976,813 ------------------------------------------------------- Deductions: Benefits paid 11,987,930 154,882 526,788 12,669,600 ------------------------------------------------------- Net employee transfers 42,841,566 (7,364,166) (35,477,400) -- ------------------------------------------------------- Net increase (decrease) in net assets available for plan benefits 79,233,188 (7,127,940) (38,008,383) 34,096,865 Net assets available for plan benefits, beginning of year 62,305,525 7,127,940 38,008,383 107,441,848 ------------------------------------------------------- Net assets available for plan benefits, end of year $141,538,713 $ -- $ -- $141,538,713 ======================================================== (a) Amounts have been carried forward from page 14.
15 4. Subsequent Events Effective June 1999, the Government Securities Fund will be eliminated as an investment option and three additional funds offered by Conseco Fund Group will be added: Conseco High Yield Fund, Conseco 20 Fund, and the Conseco Convertible Securities Fund. Also during 1999, the Asset Allocation Fund name was changed to the Balanced Fund. 16 CONSECOSAVE PLAN ITEM 27(A) - SCHEDULE OF ASSETS HELD FOR INVESTMENTS December 31, 1998
(c) (d) (e) Description of Investment Cost Current Value ------------------------- ---- ------------- Assets Held in Common/Collective Trust ConsecoSave Trust $133,308,794 $155,779,016
17 CONSECOSAVE PLAN ITEM 27 (D) - SCHEDULE OF REPORTABLE TRANSACTIONS for the Year Ended December 31, 1998
Current Expenses Value of Identity Description Number Incurred Cost Asset on of Party of of Purchase Selling with of Transaction Gain Employee Involved Transactions Transactions Price Price Transaction Asset Date (Loss) Withdrawals - ------------------------------------------------------------------------------------------------------------------------------------ Various Employee Withdrawals 25 -- -- -- -- $19,824,289 -- $19,824,289
18 CONSECOSAVE PLAN SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees of the Plan have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized. CONSECOSAVE PLAN Dated: June 28, 1999 By: /s/ ROLLIN M. DICK ------------------- Rollin M. Dick, Trustee 19 EX-23 2 EX-23 EXHIBIT 23 CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statements of Conseco, Inc. on Form S-8 (File Nos. 33-57931 and 33-58710) of our report dated June 25, 1999, on our audits of the financial statements and supplemental schedules of the ConsecoSave Plan as of December 31, 1998 and 1997, and for the years then ended, which report is included in this Annual Report on Form 11-K. /s/ PricewaterhouseCoopers LLP ------------------------------ PricewaterhouseCoopers LLP Indianapolis, Indiana June 25, 1999 -----END PRIVACY-ENHANCED MESSAGE-----