Conseco Inc. said Thursday that its president and chief executive is leaving and that litigation reserve costs cut into first-quarter earnings.
The Carmel, Ind., company was scheduled to report earnings after the market closed, but it released a preview shortly after announcing William S. Kirsch's resignation. It did not say why he had resigned.
First-quarter net income fell to 35 cents a share, from 44 cents a year earlier, Conseco said. Analysts polled by Thomson First Call were expecting 46 cents.
A spokesman would not explain the addition to the litigation reserve but said it had an after-tax impact of 5 cents a share. Conseco's stock was down about 10.2% at midday, at $22.79.
Mr. Kirsch, 50, joined the company 21 months ago. He will remain with it through August, but James E. Hohmann, 49, now executive vice president and chief administrative officer, will succeed him May 23 as interim chief executive officer. The company said it will begin searching for a permanent CEO.
Rosemarie Mirabella, an analyst with A.M. Best Co., said she does not believe there is a correlation between Mr. Kirsch's departure and the earnings results. She said she heard that he planned to leave for personal reasons. "I don't know if that is really the reason, but I don't think these two things have anything to do with one another," Ms. Mirabella said.
Mr. Kirsch said in a Conseco press release that during his tenure the company's ratings had improved and he had recruited a senior management team, including Mr. Hohmann.
