Conseco Inc. (CNO)

[bradford86]

Mr. Bradford,

Thank you for your inquiry.

With regard to your questions below, with $20 billion of invested assets, higher interest rates will increase investment income, yet higher interest rates will reduce the market values of our fixed income portfolio. That said, as we have many customers with smaller average policy sizes, we do not have a significant risk of needing to sell assets at market losses, so on average higher interest rates are more favorable than negative for our business.

Please let us know if you have any additional questions.

Thank you.

CONSECO IR