CNO Financial Group Announces Tentative Litigation Settlement
CNO Financial Group, Inc. (NYSE: CNO) today announced that its subsidiary, Conseco Life Insurance Company, has reached a tentative settlement in the Nicholas putative class action litigation, which involves changes implemented in late 2011 to some non-guaranteed elements in certain universal life policies sold by Conseco Life prior to its acquisition by CNO's predecessor.
After a hearing held on April 19, 2012 the judge in the Nicholas litigation case took under advisement Conseco Life's requests for (i) the designation of a nationwide class for the purpose of approving the tentative settlement and (ii) an injunction to stay any other litigation involving the cost of insurance increase implemented by Conseco Life in November 2011 on the Valulife and Valuterm policies that are at issue in the Nicholas litigation. If the court approves the designation of a class for purposes of settlement, final approval of the settlement would be subject to a court fairness hearing after notice to the inforce and former policyholders covered by the settlement and other conditions. In connection with the tentative settlement, CNO expects to record a pre-tax charge of approximately $20 million in its Other CNO Business segment for the quarter ended March 31, 2012.
The tentative settlement is expected to reduce CNO's consolidated risk-based capital ratio by approximately six percentage points.
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