Conseco (CNO) - Get Report rose on Tuesday after the insurer said it had reached a settlement in a class-action lawsuit involving its life insurance division. The tentative settlement will result in an additional $100.3 million expense in the just-ended quarter.
The lawsuit suit stemmed from past business practices of companies Conseco had acquired through mergers. The settlement must still be approved by the court.
The Indiana-based firm also said a previously announced settlement with the Internal Revenue Service has been finalized. The deal with the IRS will require Conseco to reduce the valuation allowance on its deferred income tax assets by about $260 million. The change in the valuation will not affect the company's net income. Shares gained 36 cents, or 1.58%, to $23.16 recently.
gained after the McLean, Va.-based credit card company was upgraded by a Morgan Stanley analyst. The Wall Street investment firm raised its rating on the company to overweight from equal-weight. Capital One was trading up $1.22, or 1.58%, to $78.57 recently.
Scottish Re Group
rebounded from a sharp selloff Monday, after the Bermuda reinsurer said it remains solvent and does not face any "near term'' liquidity issues.
On Monday, Scottish Re announced the resignation of its CEO and the elimination of its quarterly dividend, and it warned Wall Street that it would post a $130 million second-quarter loss. The slew of bad news was met with a series of ratings downgrades on the insurer's debt and a 75% plunge in its share price.
But in a press release Tuesday, Scottish Re tired to soothe Wall Street. "While we are disappointed by the ratings actions taken by the agencies yesterday," the company said, "we would like to reassure our clients, investors and creditors that we do not face any near-term liquidity or solvency issues.'' For one day, at least, the press release did the trick. Shares surged $2.64, or 66.15%, to $6.63 recently.
Western Alliance Bancorp
slipped after the Las Vegas-based bank said it will take a belated second-quarter charge because of an apparent fraud involving an employee at one of its subsidiaries.
The penny charge will reduce the bank's previously announced second-quarter earnings to 38 cents a share. Last week the bank said it discovered a potential fraud in involving an employee at its Bank of Nevada division. The company investigation of the fraud is still under way. Shares fell $1.11, or 2.93%, to 36.75.
slipped after the Ohio-based bank said Chief Financial Officer and Treasurer John W. "Jack" Conlon had retired, effective immediately.
Conlon, 61, joined Peoples Bank in 1982 and served in various finance capacities during his career. In 1991, he was named CFO and became treasurer in 1999. Donald J. Landers has been named to chief financial officer and treasurer of Peoples Bancorp and Peoples Bank, an executive vice president position, effective Tuesday. Shares slipped 48 cents, or 1.60%, to $29.51.