Former Conseco Unit Under SEC Scrutiny

Conseco Inc. said New York Atty. Gen. Eliot Spitzer and federal regulators were investigating the sale of variable annuities by a unit it sold to Inviva Inc. in 2002.

Last year, Spitzer and the Securities and Exchange Commission subpoenaed Conseco Variable Insurance Co., which was sold to Inviva for about $160 million before the company’s bankruptcy filing, and Conseco Life Insurance Co., which the company still owns.

Carmel, Ind.-based Conseco hasn’t sold any variable annuities since it sold the business, the company said in a statement. It declined to comment on whether Inviva and Conseco had any agreements about liabilities stemming from activity before the sale.