Conseco Reports $1.77B Loss, New CEO

Conseco Inc., Carmel, Ind., has reported a net loss of $1.77 billion in the third quarter, compared with a loss of $410.6 million for the same quarter in 2001.This loss was due to an impairment charge of $701.3 million related to retained interests in securitization transactions held by subprime lender Conseco Finance, realized investment losses of $277.9 million, and a goodwill impairment charge of $500 million. So far this year, Conseco has lost $6.15 billion. The company also announced that William J. Shea has been named chief executive, formally ascending to the top slot at Conseco that was left vacant when Gary Wendt resigned under pressure. Mr. Shea remains president and chief operating officer. Eugene M. Bullis has been named chief financial officer, replacing Mr. Shea, who had held the job on an acting basis since March of this year.