Conseco Inc. (CNO) expects to report profits in the second quarter of 2009, based on strong growth in the Bankers Life segment and lower investment losses.

Conseco expects to report second-quarter net operating income (before net realized investment losses, valuation allowance for deferred tax assets and discontinued operations) of $40.8 million, or $0.22 per share, up 69.2% compared to $25.2 million, or $0.13 per share, in the prior-year quarter.

Net income is expected to be in the range of $15.8 million to $27.8 million, or 9 cents to 15 cents per share, for the quarter ended Jun 30. This compares to a net loss of $488.5 million, or $2.65 per share, in the year-ago period. According to the company, net income will include net realized investment losses in the range of $13 million to $25 million, compared to $513.7 million in the year-ago quarter.

In the Bankers Life segment, Conseco recorded

...

Conseco Inc.'s (CNO) share price has steadily gained momentum in the last few months after touching record lows in March 2009. The company recently announced two events that could benefit its risk-based capital ratio.

Conseco has announced that two insurance companies in its Conseco Insurance Group segment will coinsure about 104,000 non-core life insurance policies with a Minnesota-based reinsurance firm Wilton Reassurance Company ("Wilton Re"). In the transaction, Wilton Re will pay a ceding commission of approximately $57.5 million and 100% coinsure and administer these policies.

The Conseco companies will be transferred to Wilton Re for approximately $409 million in cash, policy loans, $466 million of statutory policy and other reserves. The transaction is expected to be completed in 3Q09. As a result of this deal, Conseco expects to record an increase in its deferred tax valuation allowance of approximately $18 million and a deferred gain of

...

The VIX (a measure of options volatility, an indicator of stock market volatility risk, and reputedly a “fear gauge”) has come down so far from being historically high, that commentators now speak of it as low.  The fact is that is it still high relative to the intermediate past.

The 10-year average VIX is 22.  The 6-month average is 41.  The current level is 35.

click image to enlarge

The chart shows the VIX for several troubled times:

A: Asian currency crisis (1997) - VIX 38 B: Russian economic crisis (1998) - VIX 46 C: terrorist attack on New York City (2001) - VIX 44 D: multiple major US bankruptcies (2002) * - VIX 45 E: CDO and general credit crisis (2008) - VIX 90 F: today - VIX 35

* 7 of 15 largest US bankruptcies occurred in 2002 (or Dec 2001): Enron, Global Crossing, Conseco, Worldcom, UAL, NTL,

...

March 7, 2009 ndash; The markets are in terrible shape, arguably, the economy is in worse shape. This week we saw a pickup in job losses, higher unemployment rates across the nation and as a whole, heightening concerns that the government really has no answer to solve the financial marketrsquo;s crisis while the markets reacted in turn, moving to levels we havenrsquo;t seen in 12 years. Here is the dismal prognosis for the week: middot;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp;nbsp; The Markets ndash; The DJIA and Samp;P fell to 12-year lows. The DJIA has dropped nbsp;more than 20% since inauguration day (this is a spurious factoid, we think but one that dickheads like Rush Limbaugh are trumpeting on the airwaves so we might as well acknowledge it) . The DJIA closed at 6,626.94 on Friday, down 6% on the week, down 24% year-to-date and down 50% since the economists and lsquo;expertsrsquo; acknowledged back in January, ...

Atticus CapitalAtticus Capital | 13 Hedge Fund HoldingsThis post is being written as part of HedgeFundBlogger.com's Investment Securities Tool which analyzes the holdings of hedge fund managers.Atticus Capital is a $13 billion hedge fund ran by Timothy Barakett. In 2005, Atticus' funds were up a combined 45%. And, they finished well over 30% for 2006. Barakett founded the firm at age 26 in 1995 and focuses on taking large, concentrated positions in companies. One of Atticus' most famous investments was Phelps Dodge, a miner which was bought out by Freeport McMoran (FCX). At one point, Atticus owned more than 9% of Phelps. And, they continue to hold their position in what is now the combined FCX. Barakett ...