content: UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                     -----------
  
  
                                      FORM 8-K
  
                                   CURRENT REPORT
  
                         Pursuant to Section 13 or 15 (d) of
                         the Securities Exchange Act of 1934
  
                                     -----------
  
           Date of Report (Date of earliest event reported): June 30, 1998
  
  
  
                                    CONSECO, INC.
               (Exact name of registrant as specified in its charter)
  
  
  
      Indiana                            1-9250                35-1468632
    ----------------                    -----------            -------------------
     (State or other                   (Commission             (I.R.S. Employer
     jurisdiction of                    File Number)           Identification No.)
      organization)
  
      11825 North Pennsylvania Street
           Carmel, Indiana                                       46032
    --------------------------------------                     ----------     
  (Address of principal executive offices)                     (Zip Code)
  
                                   (317) 817-6100
                                --------------------
                (Registrant's telephone number, including area code)
  
  
                                   Not Applicable
                           -------------------------------
                           (Former name or former address,
                           if changed since last report.)
  
  
  
  <PAGE>
  
  <TABLE>
  <CAPTION>
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                                ____________________
  
                                       INDEX
                                       -----
  
                                                                                       Page
                                                                                       ----
  <S>                                                                                  <C>
  
  Item 2 -  Acquisition or Disposition of Assets                                         3   
  
  Item 7 -  Financial Statements and Exhibits
  
            (a)  Unaudited  Consolidated  Financial  Statements   of  Green   Tree
                 Financial  Corporation  as of March 31, 1998, and for each of the
                 three month periods ended March 31, 1998 and 1997 were filed with
                 the Commission as Exhibit 99.3 to the Registrant's Form 8-K dated
                 June 3, 1998, and are  incorporated  herein by this reference and
                 are being filed  herewith  pursuant to General  Instruction  F to
                 Form 8-K.                                                               4
  
                 The  Audited  Consolidated  Financial  Statements  of Green  Tree
                 Financial  Corporation required to be filed pursuant to Item 7(a)
                 of this  Current  Report  on Form  8-K  will be  filed as soon as
                 practicable,  but in no event later than  September  13, 1998, 60
                 days after the date this Form 8-K is required to be filed.             16    
  
            (b)  Pro  Forma  Combined  Financial  Statements of  Conseco, Inc. and
                 Subsidiaries  were filed with the  Commission  as Exhibit 99.1 to
                 the   Registrant's   Form  8-K  dated  June  3,  1998,   and  are
                 incorporated  herein  by  this  reference  and  are  being  filed
                 pursuant to General Instruction F to Form 8-K.                         17
  
            (c)  Exhibits - None                                                        32
  
  </TABLE>
                                         2
  <PAGE>
  
  
  ITEM 2.   ACQUISITION OR DISPOSITION OF ASSETS.
  
            On June 30, 1998, Conseco,  Inc. ("Conseco") completed the acquisition
  (the "Merger") of Green Tree Financial Corporation ("Green Tree") pursuant to an
  Agreement and Plan of Merger (the "Merger Agreement") dated as of April 6, 1998,
  as amended, among Conseco,  Marble Acquisition Corp., a Delaware corporation and
  a wholly owned subsidiary of Conseco,  and Green Tree. In the Merger, each share
  of Green Tree's common stock, par value $.01 per share was converted into 0.9165
  of a share of Conseco's common stock, no par value. Conseco issued approximately
  124 million  shares of Conseco  common stock in exchange for all of Green Tree's
  common shares and equivalents.  After the Merger,  Conseco's total common shares
  outstanding  increased to approximately 312 million.  As a result of the Merger,
  Green Tree  became a wholly  owned  subsidiary  of  Conseco.  The Merger will be
  accounted for as a pooling of interests.
  
  
            Green Tree is a diversified  financial  services company that provides
  financing for  manufactured  homes,  home equity,  home  improvements,  consumer
  products and equipment and provides  consumer and commercial  revolving  credit.
  Green Tree's  insurance  agencies  market physical damage and term mortgage life
  insurance and other credit protection relating to the customers' contracts Green
  Tree  services.  Green Tree is the  largest  servicer  of  manufactured  housing
  contracts in the United  States.  Through its  principal  offices in Saint Paul,
  Minnesota and service  centers  throughout the United States,  Green Tree serves
  all 50 states.
  
            Green Tree pools and securitizes substantially all of the contracts it
  originates,  retaining the servicing on the contracts. Such pools are structured
  into asset-backed securities which are sold in the public securities markets. In
  servicing  the  contracts,  Green Tree  collects  payments from the borrower and
  remits principal and interest payments to the holder of the contract or investor
  certificate backed by the contracts.
  
            Green Tree was originally  incorporated under the laws of the State of
  Minnesota  in 1975.  In 1995,  Green Tree  reincorporated  under the laws of the
  State of Delaware.  Green Tree's principal executive offices are located at 1100
  Landmark Towers, 345 Saint Peter Street, Saint Paul, Minnesota  55102-1639,  and
  its telephone number is (612) 293-3400. 
  
                                         3
  <PAGE>
  
  
  ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS
  
        
        (a) Unaudited Consolidated  Financial  Statements  of Green Tree Financial
            Corporation  as of March 31,  1998,  and for each of the  three  month
            periods ended March 31, 1998 and 1997.
  
  
                                         4
  <PAGE>
  
                 GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                             CONSOLIDATED BALANCE SHEETS
  
  <TABLE>
  <CAPTION>
                                                             March 31,         December 31,
                                                              1998                1997
                                                          ---------------    ---------------
                                                            (unaudited)
  <S>                                                     <C>                <C>            
  ASSETS
  Cash and cash equivalents                               $   888,743,000    $   741,398,000
  Cash deposits, restricted                                   234,194,000        247,237,000
  Other investments                                            19,096,000         25,294,000
  Interest only securities                                  1,412,280,000      1,363,200,000
  Finance receivables                                       2,154,646,000      1,971,024,000
  Other receivables                                           228,525,000        235,705,000
  Servicing rights                                            111,823,000         96,311,000
  Property, furniture and fixtures                            121,164,000        112,404,000
  Goodwill                                                     55,399,000         56,095,000
  Other assets                                                 29,372,000         18,124,000
                                                          ---------------    ---------------
    Total assets                                          $ 5,255,242,000    $ 4,866,792,000
                                                          ===============    ===============
  
  LIABILITIES AND STOCKHOLDERS' EQUITY:
  Notes payable                                           $ 1,548,618,000    $ 1,355,995,000
  Senior/Senior subordinated notes                            510,484,000        510,316,000
  Accounts payable and accrued liabilities                    556,194,000        492,789,000
  Investors payable                                           653,297,000        552,781,000
  Deferred income taxes                                       637,430,000        622,771,000
                                                          ---------------    ---------------
    Total liabilities                                       3,906,023,000      3,534,652,000
  
  Common stock, $.01 par; authorized 400,000,000
    shares; issued 141,899,317 and
    and 141,595,984 shares, respectively                        1,419,000          1,416,000
  Additional paid-in capital                                  445,190,000        435,570,000
  Retained earnings                                         1,127,417,000      1,075,670,000
  Accumulated other comprehensive income (loss):
    Minimum pension liability adjustments                      (3,142,000)        (3,142,000)
    Unrealized gain on securities
       available for sale, net                                    902,000         21,824,000
                                                          ---------------    ---------------
                                                            1,571,786,000      1,531,338,000
  Less treasury stock, 7,773,366 and 7,012,156
     shares at cost                                          (222,567,000)      (199,198,000)
                                                          ---------------    ---------------
  
    Total stockholders' equity                              1,349,219,000      1,332,140,000
                                                          ---------------    ---------------
  
             Total liabilities and stockholders' equity   $ 5,255,242,000    $ 4,866,792,000
                                                          ===============    ===============
  
  
                    See notes to unaudited financial statements.
  </TABLE>
                                         5
  <PAGE>
   
                  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (unaudited)
  
                                  Three months ended March 31,
                                  ---------------------------
                                      1998           1997
                                  ------------   ------------
  REVENUES:
    Gain on sale of receivables   $129,116,000   $153,367,000
    Interest                       100,991,000     75,429,000
    Service                         30,216,000     24,681,000
    Commissions and other           25,431,000     13,678,000
                                  ------------   ------------
                                   285,754,000    267,155,000
                                  ------------   ------------
  
  EXPENSES:
    Interest                        48,492,000     29,818,000
    Cost of servicing               26,974,000     19,379,000
    General and administrative     107,912,000     69,889,000
                                  ------------   ------------
                                   183,378,000    119,086,000
                                  ------------   ------------
  
  EARNINGS BEFORE INCOME TAXES     102,376,000    148,069,000
  
  INCOME TAXES                      38,903,000     56,266,000
                                  ------------   ------------
  
  NET EARNINGS                    $ 63,473,000   $ 91,803,000
                                  ============   ============
  
  
  EARNINGS PER COMMON SHARE:
    BASIC                         $        .47   $        .66
    DILUTED                       $        .47   $        .65
  
  
                    See notes to unaudited financial statements.
  
                                         6
  <PAGE>
   
                  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                   CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                          (unaudited, dollars in thousands)
  <TABLE>
  <CAPTION>
  
                                                                                     Accumulated
                                                       Additional                       other                        Total
                                           Common       paid-in       Treasury      comprehensive   Retained     stockholders'
                                           stock        capital         stock       income (loss)   earnings         equity
                                        -----------   -----------    -----------   --------------  -----------   -------------
  <S>                                   <C>           <C>            <C>            <C>            <C>            <C>        
  BALANCES, December 31, 1996           $     1,398   $   373,573    $   (53,913)   $    (2,299)   $   818,733    $ 1,137,492
  
  Comprehensive income, net of tax:
     Net earnings                                --            --             --             --         91,803         91,803
     Unrealized loss on securities, 
       net of applicable
       income taxes ($17,080)                    --            --             --        (27,867)            --        (27,867)
                                                                                                                  -----------
       Total comprehensive income                                                                                      63,936
  Common stock issuance of 
    1,300,000 shares                             13        51,761             --             --             --         51,774
  Cost of 1,017,000 shares of 
    treasury stock acquired                      --            --        (36,688)            --             --        (36,688)
  Dividends on common stock                      --            --             --             --        (10,430)       (10,430)
                                        -----------   -----------    -----------    -----------    -----------    -----------
  BALANCES, March 31, 1997              $     1,411   $   425,334    $   (90,601)   $   (30,166)   $   900,106    $ 1,206,084
                                        ===========   ===========    ===========    ===========    ===========    ===========
  
  BALANCES, December 31, 1997           $     1,416   $   435,570    $  (199,198)   $    18,682    $ 1,075,670    $ 1,332,140
  
  Comprehensive income, net of tax:
     Net earnings                                --            --             --             --         63,473         63,473
     Unrealized loss on securities, 
       net of applicable
       income taxes ($12,823)                    --            --             --       (20,922)             --        (20,922)
                                                                                                                  -----------
       Total comprehensive income                                                                                      42,551
  Stock warrants issuance                        --         7,687           --               --             --          7,687
  Common stock issuance of 
    303,000 shares                                3         1,933           --               --             --          1,936
  Cost of 761,210 shares of 
    treasury stock acquired                      --            --        (23,369)            --             --        (23,369)
  Dividends on common stock                      --            --             --             --       (11,726)        (11,726)
                                        -----------   -----------    -----------    -----------    -----------    -----------
  BALANCES, March 31, 1998              $     1,419   $   445,190    $  (222,567)   $    (2,240)   $ 1,127,417    $ 1,349,219
                                        ===========   ===========    ===========    ===========    ===========    ===========
  
  
                    See notes to unaudited financial statements.
  </TABLE>
                                         7
  <PAGE>
   
                  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (unaudited)
  <TABLE>
  <CAPTION>
                                                                         Three months ended March 31,
                                                                     ----------------------------------
                                                                          1998               1997
                                                                     -------------     ----------------
  <S>                                                               <C>                 <C>
  CASH FLOWS FROM OPERATING ACTIVITIES:
    Servicing fees and net interest
       payments collected on sold loans                              $    84,070,000    $    78,009,000
    Net principal payments collected on sold loans                       128,678,000         64,067,000
    Interest on unsold loans                                              50,972,000         46,166,000
    Interest on cash and investments                                      14,540,000          8,539,000
    Commissions                                                           19,160,000         11,501,000
    Other                                                                 13,322,000         (2,523,000)
                                                                     ---------------    ---------------
                                                                         310,742,000        205,759,000
                                                                     ---------------    ---------------
  
    Cash paid to employees and suppliers                                (132,988,000)      (126,443,000)
    Interest paid on debt                                                (40,571,000)       (20,251,000)
    Income taxes paid                                                    (10,114,000)        (7,430,000)
                                                                     ---------------    ---------------
                                                                        (183,673,000)      (154,124,000)
                                                                     ---------------    ---------------
  
    NET CASH PROVIDED BY OPERATIONS                                      127,069,000         51,635,000
  
    Purchase of loans and leases                                      (2,766,690,000)    (2,087,204,000)
    Proceeds from sale of loans and leases                             2,607,081,000      1,809,087,000
    Principal collections on unsold loans and leases                     102,141,000        178,880,000
    Commercial and revolving credit loans disbursed                   (1,692,443,000)      (839,249,000)
    Principal collections on commercial and revolving credit loans     1,262,226,000        757,492,000
    Proceeds from sale of commercial and revolving credit loans          317,840,000                 --
    Net cash deposits provided as credit enhancements                     13,043,000         (4,249,000)
                                                                     ---------------    ---------------
  
  NET CASH USED FOR
    OPERATING ACTIVITIES                                                 (29,733,000)      (133,608,000)
  
  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property, furniture and fixtures                         (17,846,000)       (10,084,000)
    Net sales (purchases) of investment securities                         6,198,000         (3,839,000)
                                                                     ---------------    ---------------
  NET CASH USED FOR INVESTING
    ACTIVITIES                                                           (11,648,000)       (13,923,000)
                                                                     ---------------    ---------------
  </TABLE>
        
  
                                          8
  <PAGE>
   
                  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (continued, unaudited)
  <TABLE>
  <CAPTION>
  
                                                                       Three months ended March 31,
                                                                   ------------------------------------
                                                                         1998               1997
                                                                   ---------------    -----------------
  <S>                                                                <C>                <C>          
  CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings on credit facilities                                  2,553,788,000      1,921,498,000
    Repayments on credit facilities                                 (2,353,963,000)    (1,659,804,000)
    Common stock issued                                                    627,000            475,000
    Common stock repurchased                                                    --        (36,688,000)
    Dividends paid                                                     (11,726,000)       (10,430,000)
                                                                   ---------------    ---------------
  NET CASH PROVIDED BY
    FINANCING ACTIVITIES                                               188,726,000        215,051,000
                                                                   ---------------    ---------------
  
  NET INCREASE IN CASH AND CASH EQUIVALENTS                            147,345,000         67,520,000
  
  CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       741,398,000        442,071,000
                                                                   ---------------    ---------------
  
  CASH AND CASH EQUIVALENTS, END OF PERIOD                         $   888,743,000    $   509,591,000
                                                                   ===============    ===============
  
  RECONCILIATION OF NET EARNINGS TO NET CASH
    USED FOR OPERATING ACTIVITIES:
      Net earnings                                                 $    63,473,000    $    91,803,000
      Deferred income taxes                                             38,903,000         56,266,000
      Valuation adjustments of interest only securities                 47,000,000                 --
      Depreciation and amortization                                     10,669,000          7,556,000
      Net loan payments collected, less interest only securities
        and servicing rights recorded                                  (11,746,000)       (50,189,000)
      Amortization of servicing rights                                   4,947,000          2,569,000
      Accretion of yield on interest only securities                   (33,384,000)       (25,257,000)
      Net decrease (increase) in cash deposits                          13,043,000         (4,249,000)
      Purchase of loans and leases,
        net of sales and principal collections                         (72,367,000)       (99,237,000)
      Commercial and revolving loans disbursed, net of
        sales and principal collections                               (109,816,000)       (81,757,000)
      Net selling expenses on sale of loans                             30,786,000         10,897,000
      Interest payable increase                                          7,128,000          8,434,000
      Income taxes paid                                                (10,114,000)        (7,430,000)
      Decrease in amounts payable to employees and suppliers            (7,977,000)       (43,598,000)
      Decrease (increase) in other receivables                           2,570,000         (5,033,000)
      Other                                                             (2,848,000)         5,617,000
                                                                   ---------------    ---------------
  NET CASH USED FOR
    OPERATING ACTIVITIES                                           ($   29,733,000)   ($  133,608,000)
                                                                   ===============    ===============
  
  
  
                    See notes to unaudited financial statements.
  </TABLE>
                                          9
  <PAGE>
   
                  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                       NOTES TO UNAUDITED FINANCIAL STATEMENTS
  
  
  A. BASIS OF PRESENTATION
  
  The interim  financial  statements  have been  prepared by Green Tree  Financial
  Corporation  (the  "Company"),   without  audit,   pursuant  to  the  rules  and
  regulations of the Securities  and Exchange  Commission  applicable to quarterly
  reports on Form 10-Q.  Certain  information  and footnote  disclosures  normally
  included in financial  statements prepared in accordance with generally accepted
  accounting  principles have been condensed or omitted pursuant to such rules and
  regulations. In the opinion of management, all adjustments which are of a normal
  recurring nature and are necessary for a fair  presentation  have been included.
  However,  results for  interim  periods are not  necessarily  indicative  of the
  results  that may be  expected  for a full  year.  It is  suggested  that  these
  financial  statements be read in  conjunction  with the  consolidated  financial
  statements  and related  notes and schedules  included in the  Company's  Annual
  Report on Form 10-K for the year ended December 31, 1997.
  
  As of January 1, 1998,  the Company  adopted  Statement of Financial  Accounting
  Standards No. 130,  "Reporting  Comprehensive  Income"  ("SFAS  130").  SFAS 130
  establishes standards for reporting and presentation of comprehensive income and
  its  components  in a full set of  financial  statements.  Comprehensive  income
  includes  all  changes  in  stockholders'   equity  except  those  arising  from
  transactions  with  shareholders.  The new  standard  requires  only  additional
  disclosures in the  consolidated  financial  statements;  it does not affect the
  Company's financial position or results of operations.
  
                                         10
  <PAGE>
   
  B. INTEREST ONLY SECURITIES
  
  The activity in interest only securities for the three months ended March 31,
  1998 is summarized as follows:
  
   Balance at beginning of period                          $1,363,200,000
   Additions                                                  164,349,000
   Yield on interest only securities                           33,384,000
   Net cash collected                                         (67,908,000)
   Realized writedown of interest only
     securities                                               (47,000,000)
   Unrealized writedown of interest
     only securities                                          (33,745,000)
                                                         ----------------
   Balance at end of period                                $1,412,280,000
                                                         ================
  
  In 1995 and  previous  years,  the  Company  sold a  substantial  portion of its
  interest  only  securities  related  to  manufactured   housing   securitization
  transactions  between  1978  and 1995 in the form of  securitized  Net  Interest
  Margin  Certificates.  The Company retained a subordinated  interest in the cash
  flow of the interest  only  securities  sold.  These  interests  are included in
  interest only securities and total $79,357,000 at March 31, 1998.
  
  Generally,   interest  only  securities   relate  to  the  sale  of  closed  end
  manufactured  housing,  home equity,  home  improvement,  consumer and equipment
  finance  receivables.  The Company's  interest only  securities are subject to a
  substantial amount of credit loss and prepayment risk related to the receivables
  sold. In connection with the valuation of interest only securities,  the Company
  has provided for  approximately  $946,060,000  of credit  losses as of March 31,
  1998.  On a  nondiscounted  basis the amount of credit  losses  provided  for in
  connection with the valuation of the interest only  securities is  approximately
  $1,399,149,000.  These estimated losses if realized,  would reduce the amount of
  cash flows  available to the interest only  securities and are considered in the
  Company's valuation processes.
  
  The weighted average  interest rate used to discount  expected future cash flows
  of the interest only securities is 11.60% as of March 31, 1998.
  
                                         11
  <PAGE>
   
  The table below details  information  pertinent to the valuation of the interest
  only securities as of March 31, 1998.
  <TABLE>
  <CAPTION>
  
                                                     Manufactured      Home Equity/         Consumer/
                                                       Housing        Home Improvement      Equipment            Total
                                                   ---------------    ----------------    -------------    ----------------
  <S>                                              <C>                  <C>                 <C>            <C>             
  Interest only securities carrying amount         $   872,578,000      396,498,000         143,204,000    $  1,412,280,000
  
  Unpaid principal balance of sold receivables     $18,186,731,000    5,004,964,000       2,655,252,000     $25,846,947,000
  
  Weighted average customer interest rate on
       sold receivables                                      10.46%          11.85%               11.12%
  
  Approximate expected weighted average constant
       prepayment rate as a percentage
       of unpaid principal balance of sold
       receivables (1)                                        9.75%           25.0%                22.0%
  
  Approximate remaining expected non
       discounted credit losses as a percentage
       of unpaid principal balance of sold
       receivables (1)                                         6.2%            4.4%                 2.0%
  </TABLE>
  
  (1)   Valuation of the  Company's  interest only securities is impacted not only
        by the projected  level of prepayments of principal and net credit losses,
        as shown above,  but also by the projected  timing of such prepayments and
        net credit losses. Should the timing of projected prepayments of principal
        or net credit losses differ  materially  from the timing  projected by the
        Company,  such timing could have a material effect on the valuation of the
        interest only securities.
  
                                          12
  <PAGE>
   
  C. FINANCE RECEIVABLES
  
  Finance receivables consisted of the following:
  
                          March 31, 1998   December 31,1997
                          --------------   ----------------
  Lease                   $  267,987,000   $  191,572,000
  Commercial Finance         632,172,000      683,691,000
  Revolving Credit Card      324,795,000      165,151,000
  Loans Held For Sale        929,692,000      930,610,000
                          --------------   --------------
     Total                $2,154,646,000   $1,971,024,000
                          ==============   ==============
  
  
  D. SERVICING RIGHTS
  
  The  activity  in  servicing  rights  for the  period  ended  March 31,  1998 is
  summarized as follows:
  
  Balance at beginning of period      $   96,311,000
  Additions                               20,459,000
  Amortization                           ( 4,947,000)
                                      --------------
  Balance at end of period             $ 111,823,000
                                      ==============
  
  
  E. EARNINGS PER SHARE
  
  Basic  earnings  per share is computed by dividing  net earnings by the weighted
  average number of shares of Common Stock outstanding during each period. Diluted
  earnings per share is computed by dividing net earnings by the weighted  average
  number of shares of Common Stock and potential Common Stock  outstanding  during
  each period.  The following table presents the earnings per share data.  Options
  to purchase  5,529,469 and 298,544  shares are excluded from the  computation of
  diluted earnings per common share because of their anti-dilutive  effect, as the
  exercise  price of the option  exceeds  the average  market  price of the Common
  Stock for the three months ended March 31, 1998 and 1997, respectively.
  
                                    Three months ended March 31,
                                    ---------------------------
                                        1998           1997
                                    ------------   ------------
  
  Net Earnings                      $ 63,473,000   $ 91,803,000
                                    ============   ============
  Weighted average Common Stock
     outstanding                     134,236,605    138,511,310
   Effect of dilutive securities:
     Options                           1,463,317      3,708,253
     Warrants                            119,981           --
                                    ------------   ------------
   Diluted Common Stock              135,819,903    142,219,563
                                    ============   ============
  
   Earnings per common share:
     Basic                          $        .47   $        .66
     Diluted                        $        .47   $        .65
  
                                          13
  <PAGE>
   
  F. STOCKHOLDERS' EQUITY
  
  
  STOCK OPTION PLANS
  
  The Company has three stock option plans: two employee stock option plans and an
  outside  director plan. In 1992, the Board of Directors  approved a supplemental
  stock option plan for its outside directors. In 1995, the Company's stockholders
  approved  an  Employee  Stock  Incentive  Plan.  In 1998 the Board of  Directors
  approved a Company  Stock  Option Plan for  issuances  of stock  options to non-
  officer employees.
  
  Options for 864,520  shares were  available  for future grant under these plans.
  The  Company's  Board of  Directors  has reserved  11,149,252  shares for future
  issuance under all plans as of March 31, 1998.
  
  A summary of the stock option plan activity is as follows:
  
                                       Number of   Weighted Average
                                        Shares      Exercise Price
                                      ----------   -----------------
  
  Outstanding at December 31, 1997     9,910,465      $25.98
    Granted                              835,500       23.00
    Exercised                           (303,333)      12.87
    Expired                             (156,900)      30.92
                                      ----------
  
  Outstanding at March 31, 1998       10,285,732      $23.04
                                      ==========
  
  Of the  10,285,732  options  outstanding at March 31, 1998,  10,145,732  options
  relate to the  employee  and chief  executive  stock  option  plans and  140,000
  options relate to the outside director plan.
  
  On March 1, 1998, the Company offered to reprice certain  employee stock options
  to the current  market price on March 1, 1998. The offer was not extended to the
  six most senior executive  officers.  Employees accepting this offer agreed to a
  revised  vesting  schedule  and an exercise  price of $23.00,  representing  the
  market price at March 1, 1998. Approximately 2.8 million options were repriced.
  
                                         14
  <PAGE>
   
  A summary of stock options  outstanding  and exercisable at March 31, 1998 is as
  follows:
  
  Options Outstanding:
  
      Range of           Number            Remaining          Weighted Average
   Exercise Prices     Outstanding      Contractual Life        Exercise Price
  - -----------------   -------------     ----------------     -------------------
  
     $  2.97-22.50       1,714,332          4.17                 $  6.46
       23.00-23.00       3,639,500          9.92                   23.00
       23.38-30.50       2,350,300          7.68                   25.52
       30.88-33.38       2,323,000          7.90                   31.21
       33.50-47.00         258,600          9.17                   37.61
       -----------       ---------          ----                 -------        
     $  2.97-47.00      10,285,732          7.97                 $ 23.04
  
  
  Options Exercisable:
  
      Range of             Number        Weighted Average
  Exercise Prices        Exercisable      Exercise Price
  - -------------------    -----------     -----------------
  
       $  2.97-22.50       1,563,665         $ 5.45
         23.00-23.00               0           0.00
         23.38-30.50         824,300          25.01
         30.88-33.38         493,000          31.31
         33.50-47.00          57,600          38.10
       --------------      ----------       -------
  
       $  2.97-47.00       2,938,565        $ 15.92
  
  
  WARRANTS
  
  On February 13, 1998, the Company issued warrants to purchase 2.7 million common
  shares at $22.75 per share to the provider of a credit  facility  secured by the
  Company's interest only securities. The warrant expires on the later of February
  13, 2000 or 90 days after the credit facility has been paid in full. The Company
  has the option to call and  repurchase  the warrant for $15.00 per warrant share
  regardless of the closing price of the common shares at the call date.
  
                                         15
  <PAGE>
  
  ITEM 7(a).  FINANCIAL STATEMENTS AND EXHIBITS, continued
  
              The  Audited   Consolidated   Financial  Statements  of  Green  Tree
              Financial  Corporation required to be filed pursuant to Item 7(a) of
              this  Current   Report  on  Form  8-K  will  be  filed  as  soon  as
              practicable,  but in no event later than September 13, 1998, 60 days
              after the date this Form 8-K is required to be filed.
  
  
  
  
  
  
                                         16
  <PAGE>
  
  
   
  
  ITEM 7(b).  FINANCIAL STATEMENTS AND EXHIBITS, Continued
  
              Pro  Forma  Combined  Financial  Statements  of  Conseco,  Inc . and
              Subsidiaries.
  
                                         17
  <PAGE>
  
  
  
         UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS OF CONSECO, INC.
  
  
         On April 6, 1998,  Conseco,  Inc.  ("Conseco")  and Green Tree  Financial
  Corporation ("Green Tree") entered into an Agreement and Plan of Merger pursuant
  to which  Green Tree would  become a wholly  owned  subsidiary  of Conseco  (the
  "Merger").  The following unaudited pro forma combined balance sheet as of March
  31, 1998,  combines the historical  combined balance sheets of Conseco and Green
  Tree as if the Merger had been effective on March 31, 1998,  after giving effect
  to certain adjustments  described in the accompanying notes to the unaudited pro
  forma combined financial information.
  
         The unaudited pro forma  combined  statements of operations for the three
  months  ended  March 31,  1998 and 1997,  and for each of the three  years ended
  December 31, 1997,  present the combined  results of  operations  of Conseco and
  Green Tree as if the Merger had been effective at the earliest period presented.
  
         The unaudited pro forma combined  financial  information and accompanying
  notes reflect the  application of the pooling of interests  method of accounting
  for  the  Merger.  Under  this  method  of  accounting,   the  recorded  assets,
  liabilities,  shareholders' equity, income and expense of Conseco and Green Tree
  are combined and reflected at their historical amounts.
  
         The unaudited pro forma  combined  financial  statements are based on the
  historical  financial  statements of Conseco and Green Tree and are qualified in
  their  entirety  by, and should be read in  conjunction  with,  these  financial
  statements  and the notes thereto.  The unaudited pro forma  combined  financial
  statements  are not  necessarily  indicative of the results of operations or the
  combined  financial  position  that would  have  resulted  had the  Merger  been
  consummated at the beginning of the period  indicated,  nor are they necessarily
  indicative of future results of operations or financial position.
  
  
  
                                         18
  
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                     UNAUDITED PRO FORMA COMBINED BALANCE SHEET
                                   March 31, 1998
                                (Dollars in millions)
  
  
                                       ASSETS
  
  
                                                                                                                            PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      ----------
  <S>                                                                        <C>           <C>             <C>              <C>
  
  Investments:
      Actively managed fixed maturities at fair value..................      $22,968.9      $    -         $  -              $22,968.9
      Equity securities at fair value..................................          263.4           -            -                  263.4
      Interest only securities.........................................            -         1,412.3          -                1,412.3
      Finance receivables..............................................            -         2,154.6          -                2,154.6
      Mortgage loans...................................................          474.2           -            -                  474.2
      Credit-tenant loans..............................................          596.6           -            -                  596.6
      Policy loans.....................................................          691.7           -            -                  691.7
      Other invested assets ...........................................          534.8          19.1          -                  553.9
      Short-term investments...........................................          837.7         888.7          -                1,726.4
      Assets held in separate accounts.................................          675.2           -            -                  675.2
                                                                             ---------      --------       ------            ---------
  
            Total investments..........................................       27,042.5       4,474.7          -               31,517.2
            
  Accrued investment income............................................          399.9           -            -                  399.9
  Other receivables....................................................            -           228.5          -                  228.5
  Servicing rights.....................................................            -           111.8          -                  111.8
  Cost of policies purchased...........................................        2,442.6           -            -                2,442.6
  Cost of policies produced............................................        1,022.5           -            -                1,022.5
  Reinsurance receivables..............................................          761.8           -            -                  761.8
  Income tax assets....................................................           42.4           -          (42.4) (2)             - 
  Goodwill.............................................................        3,604.9          55.4          -                3,660.3
  Property and equipment...............................................          176.0         121.2          -                  297.2
  Cash deposits, restricted............................................            -           234.2          -                  234.2
  Other assets.........................................................          431.3          29.4          -                  460.7
                                                                             ---------      --------       ------            ---------
  
            Total assets...............................................      $35,923.9      $5,255.2       $(42.4)           $41,136.7
                                                                             =========      ========       ======            =========
  
  
                              (continued on next page)
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  
  </TABLE>
                                         19
  
  
  
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
               UNAUDITED PRO FORMA COMBINED BALANCE SHEET (Continued)
                                   March 31, 1998
                                (Dollars in millions)
  
  
                        LIABILITIES AND SHAREHOLDERS' EQUITY
  
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      ---------
  <S>                                                                        <C>           <C>              <C>             <C>
  Liabilities:
      Insurance liabilities:
         Interest sensitive products...................................      $17,320.6      $    -         $   -            $17,320.6
         Traditional products..........................................        5,758.0           -             -              5,758.0
         Claims payable and other policyholder funds...................        1,617.3           -             -              1,617.3 
         Unearned premiums.............................................          409.1           -             -                409.1
         Liabilities related to separate accounts......................          675.2           -             -                675.2
      Investment borrowings............................................        1,196.1           -             -              1,196.1
      Investor payables................................................            -           653.3           -                653.3
      Other liabilities................................................        1,223.4         556.2         240.0  (3)       2,019.6
      Income tax liabilities...........................................            -           637.4         (42.4) (2)         595.0
      Notes payable and commercial paper: 
        Corporate......................................................        2,435.1           -             -              2,435.1
        Related to finance receivables.................................            -         2,059.1           -              2,059.1
                                                                             ---------      --------       -------          --------- 
  
            Total liabilities..........................................       30,634.8       3,906.0         197.6           34,738.4 
                                                                             ---------      --------       -------          --------- 
  
  Minority interest:
      Company-obligated mandatorily redeemable
         preferred securities of subsidiary trust......................        1,388.1           -             -              1,388.1
      Common stock of subsidiary.......................................             .7           -             -                   .7
  
  Shareholders' equity:
      Preferred stock..................................................          115.8           -             -                115.8
      Common stock and additional paid-in capital......................        2,397.0         446.6        (222.6) (4)       2,621.0
      Accumulated other comprehensive income:
         Unrealized appreciation of fixed maturity investments.........          159.0           -             -                159.0
         Unrealized appreciation of other investments..................           10.9            .9           -                 11.8
         Minimum pension liability adjustment..........................            -            (3.1)          -                 (3.1)
      Less treasury shares at cost.....................................            -          (222.6)        222.6  (4)           - 
      Retained earnings................................................        1,217.6       1,127.4        (240.0) (3)       2,105.0
                                                                             ---------      --------       -------          --------- 
            Total shareholders' equity.................................        3,900.3       1,349.2        (240.0)           5,009.5
                                                                             ---------      --------       -------          --------- 
  
            Total liabilities and shareholders' equity.................      $35,923.9      $5,255.2       $ (42.4)         $41,136.7 
                                                                             =========      ========       =======          ========= 
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  
  </TABLE>
                                         20
  
  
  
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED  STATEMENT OF OPERATIONS
                      for the three months ended March 31, 1998
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  <S>                                                                       <C>              <C>           <C>               <C>
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $  859.4          $  -                            $  859.4
         Interest sensitive products......................................     130.7             -                               130.7
      Net investment income...............................................     583.3           101.0                             684.3
      Gain on sale of receivables.........................................       -             129.1                             129.1
      Net investment gains................................................     104.8             -                               104.8
      Fee revenue and other income........................................      20.8            55.7                              76.5
                                                                            --------          ------                          --------
  
              Total revenues..............................................   1,699.0           285.8                           1,984.8
                                                                            --------          ------                          --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................     680.4             -                               680.4
      Amounts  added  to  annuity  and  financial  product
         policyholder account balances:
            Interest......................................................     188.4             -                               188.4
            Other amounts added to variable and equity-indexed
               annuity products...........................................      85.6             -                                85.6
      Interest expense on notes payable...................................      39.0            48.5                              87.5
      Interest expense on short-term investment borrowings................      18.9             -                                18.9
      Amortization related to operations..................................     117.1             -                               117.1
      Amortization related to investment gains............................      86.4             -                                86.4
      Other operating costs and expenses..................................     165.0           134.9                             299.9
                                                                            --------          ------                          --------
  
            Total benefits and expenses...................................   1,380.8           183.4                           1,564.2
                                                                            --------          ------                          --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     318.2           102.4                             420.6
  
  Income tax expense......................................................     131.3            38.9                             170.2
                                                                            --------          ------                          --------
  
            Income before minority interest and
                extraordinary charge .....................................     186.9            63.5                             250.4
  
  Minority interest - distributions on Company-obligated mandatorily 
      redeemable preferred securities of subsidiary trusts, net of 
      income taxes........................................................      19.4             -                                19.4
                                                                            --------          ------                          --------
  
            Income before extraordinary charge .........................       167.5            63.5                             231.0
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................      16.4             -                                16.4
                                                                            --------          ------                          --------
  
            Net income..................................................       151.1            63.5                             214.6
  
  Less preferred stock dividends..........................................       2.0             -                                 2.0
                                                                            --------          ------                          --------
  
            Net income applicable to common stock.......................    $  149.1          $ 63.5                          $  212.6
                                                                            ========          ======                          ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
                                         21
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
           UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                      for the three months ended March 31, 1998
                    (Dollars in millions, except per share data)
  
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE     ADJUSTMENTS      COMBINED
                                                                              -------      ----------     -----------      --------
  <S>                                                                     <C>             <C>             <C>              <C>
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  185,941,000      134,237,000    (11,209,000) (4) 308,969,000
         Net income before extraordinary charge ........................         $.89             $.47                            $.74
         Extraordinary charge ..........................................          .09               -                              .05
                                                                                 ----             ----                            ----
  
              Net income................................................         $.80             $.47                            $.69
                                                                                 ====             ====                            ====
  
      Diluted:
         Weighted average shares outstanding...........................   207,930,000      135,820,000    (11,341,000) (4) 332,409,000
         Net income before extraordinary charge ........................         $.81             $.47                            $.70
         Extraordinary charge...........................................          .08               -                              .05
                                                                                 ----             ----                            ----
  
              Net income................................................         $.73             $.47                            $.65
                                                                                 ====             ====                            ====
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
  
  
  
  
                                         22
  <PAGE>
  <TABLE>
  <CAPTION>
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED  STATEMENT OF OPERATIONS
                      for the three months ended March 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  <S>                                                                       <C>              <C>           <C>               <C>
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $  566.2          $  -                            $  566.2
         Interest sensitive products......................................     103.9             -                               103.9
      Net investment income...............................................     409.2            75.4                             484.6
      Gain on sale of receivables.........................................       -             153.4                             153.4
      Net investment gains................................................       5.1             -                                 5.1
      Fee revenue and other income........................................      14.6            38.4                              53.0
                                                                            --------          ------                          --------
  
              Total revenues..............................................   1,099.0           267.2                           1,366.2
                                                                            --------          ------                          --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................     455.3             -                               455.3
      Amounts  added  to  annuity  and  financial  product
         policyholder account balances:
            Interest......................................................     173.7             -                               173.7
            Other amounts added to variable and equity-indexed
               annuity products...........................................      16.2             -                                16.2
      Interest expense on notes payable...................................      25.8            29.8                              55.6
      Interest expense on short-term investment borrowings................       2.8             -                                 2.8
      Amortization related to operations..................................     103.6             -                               103.6
      Amortization related to investment gains............................      11.8             -                                11.8
      Other operating costs and expenses..................................     114.4            89.3                             203.7
                                                                            --------          ------                          --------
  
            Total benefits and expenses...................................     903.6           119.1                           1,022.7
                                                                            --------          ------                          --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     195.4           148.1                             343.5
  
  Income tax expense......................................................      70.6            56.3                             126.9
                                                                            --------          ------                          --------
  
            Income before minority interest and
                extraordinary charge .....................................     124.8            91.8                             216.6
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
        preferred securities of subsidiary trusts, net of income taxes....       8.7             -                                 8.7
      Dividends on preferred stock of subsidiaries........................       1.3             -                                 1.3
                                                                            --------          ------                          --------
  
            Income before extraordinary charge ...........................     114.8            91.8                             206.6
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       3.3             -                                 3.3
                                                                            --------          ------                          --------
  
            Net income....................................................     111.5            91.8                             203.3
  
  Less amounts applicable to preferred stock:
      Charge related to induced conversions...............................      12.3             -                                12.3
      Preferred stock dividends...........................................       2.3             -                                 2.3
                                                                            --------          ------                          --------
  
            Net income applicable to common stock.......................    $   96.9          $ 91.8                          $  188.7
                                                                            ========          ======                          ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
                                         23
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
           UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                      for the three months ended March 31, 1997
                    (Dollars in millions, except per share data)
  
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE     ADJUSTMENTS      COMBINED
                                                                              -------      ----------     -----------      --------
  <S>                                                                     <C>             <C>             <C>              <C>
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  177,670,000      138,511,000    (11,566,000) (4) 304,615,000
         Net income before extraordinary charge ........................         $.57             $.66                            $.63
         Extraordinary charge ..........................................          .02               -                              .01
                                                                                 ----             ----                            ----
  
              Net income................................................         $.55             $.66                            $.62
                                                                                 ====             ====                            ====
  
      Diluted:
         Weighted average shares outstanding...........................   203,620,000      142,220,000    (11,875,000) (4) 333,965,000
         Net income before extraordinary charge ........................         $.51             $.65                            $.58
         Extraordinary charge...........................................          .02               -                              .01
                                                                                 ----             ----                            ----
  
              Net income................................................         $.49             $.65                            $.57
                                                                                 ====             ====                            ====
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
                                         24
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  <S>                                                                       <C>              <C>           <C>                <C>
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $2,954.1         $    -                           $2,954.1
         Interest sensitive products......................................     456.7              -                              456.7
      Net investment income...............................................   1,825.3            370.6                          2,195.9
      Gain on sale of receivables.........................................       -              546.8                            546.8
      Net investment gains................................................     266.5              -                              266.5
      Fee revenue and other income........................................      65.8            174.1                            239.9
                                                                            --------         --------                         --------
  
              Total revenues..............................................   5,568.4          1,091.5                          6,659.9
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   2,368.3              -                            2,368.3
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     697.1              -                              697.1
            Other amounts added to variable and equity-indexed
               annuity products...........................................     109.6                                             109.6
      Interest expense on notes payable...................................     109.4            160.9                            270.3
      Interest expense on short-term investment borrowings................      42.0              -                               42.0
      Amortization related to operations..................................     408.8              -                              408.8
      Amortization related to investment gains............................     181.2              -                              181.2
      Nonrecurring charges................................................      71.7              -                               71.7
      Other operating costs and expenses..................................     577.2            444.5                          1,021.7
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   4,565.3            605.4                          5,170.7
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................   1,003.1            486.1                          1,489.2
  
  Income tax expense......................................................     376.6            184.7                            561.3
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     626.5            301.4                            927.9
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
         preferred securities of subsidiary trusts, net of income taxes...      49.0               -                              49.0
      Dividends on preferred stock of subsidiaries........................       3.3               -                               3.3
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     574.2            301.4                            875.6
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       6.9              -                                6.9
                                                                            --------         --------                         --------
  
              Net income..................................................     567.3            301.4                            868.7
  
  Less amounts applicable to preferred stock:
      Charge related to induced conversions...............................      13.2               -                              13.2
      Preferred stock dividends...........................................       8.7               -                               8.7
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  545.4         $  301.4                         $  846.8
                                                                            ========         ========                         ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
                                         25
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
          UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1997
                    (Dollars in millions, except per share data)
  
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  <S>                                                                     <C>             <C>              <C>             <C>
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  185,751,000     136,715,000      (11,416,000)(4) 311,050,000
         Net income before extraordinary charge ........................        $2.98           $2.20                            $2.74
         Extraordinary charge ..........................................          .04             -                                .02
                                                                                -----           -----                            -----
  
              Net income................................................        $2.94           $2.20                            $2.72
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  210,179,000     140,254,000      (11,711,000)(4) 338,722,000
         Net income before extraordinary charge ........................        $2.67           $2.15                            $2.55
         Extraordinary charge...........................................          .03             -                                .02
                                                                                -----           -----                            -----
  
              Net income................................................        $2.64           $2.15                            $2.53
                                                                                =====           =====                            =====
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  </TABLE>
  
                                          26
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                     PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1996
                    (Dollars in millions, except per share data)
  
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  <S>                                                                       <C>              <C>           <C>                <C>
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $1,384.3         $    -                           $1,384.3
         Interest sensitive products......................................     269.9              -                              269.9
      Net investment income...............................................   1,302.5            215.3                          1,517.8
      Gain on sale of receivables.........................................       -              389.7                            389.7
      Net investment gains................................................      60.8              -                               60.8
      Fee revenue and other income........................................      49.8            119.1                            168.9
                                                                            --------         --------                         --------
  
              Total revenues..............................................   3,067.3            724.1                          3,791.4
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   1,195.0              -                            1,195.0
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     620.2              -                              620.2
            Other amounts added to variable and equity-indexed
               annuity products...........................................      48.4              -                               48.4
      Interest expense on notes payable...................................     108.1             70.1                            178.2
      Interest expense on short-term investment borrowings................      22.0              -                               22.0
      Amortization related to operations..................................     240.0              -                              240.0
      Amortization related to investment gains............................      36.0              -                               36.0
      Other operating costs and expenses..................................     304.0            330.2                            634.2
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   2,573.7            400.3                          2,974.0
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     493.6            323.8                            817.4
  
  Income tax expense......................................................     179.8            123.0                            302.8
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     313.8            200.8                            514.6
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
         preferred securities of subsidiary trusts, net of income taxes...       3.6               -                               3.6
      Dividends on preferred stock of subsidiaries........................       8.9               -                               8.9
      Equity in earnings of subsidiaries..................................      22.4               -                              22.4
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     278.9            200.8                            479.7
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................      26.5               -                              26.5
                                                                            --------         --------                         --------
  
              Net income..................................................     252.4            200.8                            453.2
  
  Less preferred stock dividends..........................................      27.4               -                              27.4
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  225.0         $  200.8                         $  425.8
                                                                            ========         ========                         ========
  
                                                   (continued on next page)
  
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  </TABLE>
                                         27
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
               PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1996
                    (Dollars in millions, except per share data)
  
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  <S>                                                                     <C>             <C>              <C>             <C>
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  104,584,000     136,996,000      (11,439,000)(4) 230,141,000
         Net income before extraordinary charge ........................        $2.40           $1.47                            $1.96
         Extraordinary charge ..........................................          .25             -                                .11
                                                                                -----           -----                            -----
  
              Net income................................................        $2.15           $1.47                            $1.85
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  138,860,000     140,562,000      (11,737,000)(4) 267,685,000
         Net income before extraordinary charge ........................        $2.01           $1.43                            $1.79
         Extraordinary charge...........................................          .19             -                                .10
                                                                                -----           -----                            -----
  
              Net income................................................        $1.82           $1.43                            $1.69
                                                                                =====           =====                            =====
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  </TABLE>
                                         28
  
  
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
                     PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1995
                    (Dollars in millions, except per share data)
  
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  <S>                                                                       <C>              <C>           <C>                <C>
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $1,355.6         $    -                           $1,355.6
         Interest sensitive products......................................     109.4              -                              109.4
      Net investment income...............................................   1,142.6            176.0                          1,318.6
      Gain on sale of receivables.........................................       -              448.7                            448.7
      Net investment gains................................................     204.1              -                              204.1
      Fee revenue and other income........................................      43.6             86.6                            130.2
                                                                            --------         --------                         --------
  
              Total revenues..............................................   2,855.3            711.3                          3,566.6
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   1,107.5              -                            1,107.5
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     556.6              -                              556.6
            Other amounts added to variable and equity-indexed
               annuity products...........................................      28.8              -                               28.8
      Interest expense on notes payable...................................     119.4             57.3                            176.7
      Interest expense on short-term investment borrowings................      22.2              -                               22.2
      Amortization related to operations..................................     203.6              -                              203.6
      Amortization related to investment gains............................     126.6              -                              126.6
      Other operating costs and expenses..................................     272.1            244.4                            516.5
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   2,436.8            301.7                          2,738.5
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     418.5            409.6                            828.1
  
  Income tax expense......................................................      87.0            155.6                            242.6
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     331.5            254.0                            585.5
  
  Minority interest:
      Dividends on preferred stock of subsidiaries........................      11.9               -                              11.9
      Equity in earnings of subsidiaries..................................      97.1               -                              97.1
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     222.5            254.0                            476.5
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       2.1              -                                2.1
                                                                            --------         --------                         --------
  
              Net income..................................................     220.4            254.0                            474.4
  
  Less preferred stock dividends..........................................      18.4               -                              18.4
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  202.0         $  254.0                         $  456.0
                                                                            ========         ========                         ========
  
                              (continued on next page)
  
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  </TABLE>
                                         29
  
  
  
  <PAGE>
  <TABLE>
  <CAPTION>
  
  
  
                           CONSECO, INC. AND SUBSIDIARIES
  
               PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1995
                    (Dollars in millions, except per share data)
  
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  <S>                                                                     <C>             <C>              <C>             <C>
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................   81,405,000     136,644,000      (11,410,000)(4) 206,639,000
         Net income before extraordinary charge ........................        $2.51           $1.86                            $2.22
         Extraordinary charge ..........................................          .03             -                                .01
                                                                                -----           -----                            -----
  
              Net income................................................        $2.48           $1.86                            $2.21
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  103,881,000     140,090,000      (11,698,000)(4) 232,273,000
         Net income before extraordinary charge ........................        $2.14           $1.81                            $2.05
         Extraordinary charge...........................................          .02             -                                .01
                                                                                -----           -----                            -----
  
              Net income................................................        $2.12           $1.81                            $2.04
                                                                                =====           =====                            =====
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  </TABLE>
                                         30
  <PAGE>
  
             NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
  
  
  1.     BASIS OF PRESENTATION
  
         The unaudited pro forma combined financial  statements have been prepared
         assuming  that the  Merger  will be  accounted  for under the  pooling of
         interests method and are based on the historical  consolidated  financial
         statements of Conseco and Green Tree.  Certain  amounts in the historical
         financial statements of Green Tree have been reclassified to conform with
         Conseco's historical financial statement presentation.
  
         Conseco  and  Green  Tree are still in the  process  of  reviewing  their
         respective  accounting  policies  relative to those followed by the other
         entity.  As a result of this  review,  it might be  necessary  to restate
         certain  amounts in  Conseco's or Green Tree's  financial  statements  to
         conform  to those  accounting  policies  that are  most  appropriate.  In
         management's opinion, any such restatements will not be material.
  
         Green Tree pools and securitizes  substantially all of the loan contracts
         it originates,  retaining:  (i) investments in  interest-only  securities
         that are  subordinated  to the  rights of other  investors;  and (ii) the
         servicing on the contracts. The valuation of interest-only securities and
         servicing  rights is determined by  discounting  the projected cash flows
         over the expected life of the finance  receivables sold using prepayment,
         default,  loss, servicing cost and discount rate assumptions.  Impairment
         in the value of interest-only  securities considered other than temporary
         is  recognized  as a reduction  to  earnings,  while  impairment  that is
         temporary  is  recognized  as  a  reduction  to   shareholders'   equity.
         Impairment in the value of servicing  rights is recognized as a reduction
         in  earnings.   The   assumptions   used  in  calculating  the  value  of
         interest-only  securities and servicing rights are subject to volatility.
         Prepayments  resulting from competition,  obligor  mobility,  general and
         regional economic  conditions,  and prevailing interest rates, as well as
         actual losses incurred, may vary from the performance projected in future
         periods.  Assumptions  with  respect  to  future  prepayments,  defaults,
         losses, servicing costs and discount rates are reviewed periodically.  As
         disclosed  in its  Quarterly  Report on Form 10-Q for the  quarter  ended
         March 31, 1998, Green Tree realized a material writedown of its interest-
         only securities due to higher than expected prepayments. Prepayments have
         continued to exceed  expectations in April 1998. If prepayments  continue
         above expectations, or upon review certain other assumptions are revised,
         it is likely that there will be a further material writedown in the value
         of the  interest-only  securities and servicing rights and this reduction
         in value could materially affect operating results. Any adjustments to be
         made in future  periods  will  depend on  circumstances  existing at that
         time.
  
         The unaudited pro forma consolidated financial information should be read
         in conjunction with the historical  consolidated  financial statements of
         Conseco and Green Tree and the notes thereto.
  
  2.     INCOME TAX LIABILITIES
  
         The  income  tax assets of  Conseco  are  netted  against  the income tax
         liabilities of Green Tree.
  
  3.     MERGER AND INTEGRATION COSTS
  
         In connection with the Merger,  Conseco  expects to incur  Merger-related
         costs of  approximately  $240 million,  net of income  taxes.  Such costs
         include  investment  banking,  accounting,  legal  and  regulatory  fees,
         severance and retention costs and other costs associated with the Merger.
         These expenses  (including the related tax effect) have been reflected in
         the unaudited pro forma combined balance sheet financial information, but
         are not  reflected in the  unaudited  pro forma  statement of  operations
         financial  information  since such  expenses  are not  expected to have a
         continuing impact on the combined company.
  
  4.     SHAREHOLDERS' EQUITY AND WEIGHTED AVERAGE SHARES OUTSTANDING
  
         Weighted  average  shares  outstanding  have been adjusted to reflect the
         issuance of .9165 shares of Conseco  common stock for each share of Green
         Tree  common  stock or  equivalent.  The  following  shares of Green Tree
         common  stock or  equivalents  were  outstanding  at April 6,  1998:  (i)
         134,012,054  shares of Green Tree common stock;  (ii) 10,297,132  options
         outstanding  to purchase  Green Tree common stock at an average  price of
         $23.12 per share (such  options are  equivalent  to  6,174,713  shares of
         Conseco common stock, based on the last reported sale price of a share of
         Conseco  common stock on April 6, 1998);  and (iii)  warrants to purchase
         2,735,688  shares of Green Tree  common  stock at $22.75 per share  (such
         warrants are equivalent to 710,568 shares of Conseco common stock,  based
         on the last  reported  sale price of a share of Conseco  common  stock on
         April 6, 1998 based on Green  Tree's right to call the warrant by issuing
         stock  equivalents at $15 per warrant).  The treasury stock held by Green
         Tree  prior to the  Merger  has been  reclassified  to  common  stock and
         additional paid-in capital to conform to Conseco's presentation.
  
  5.     OPERATING COST SAVINGS
  
         No adjustment  has been included in the unaudited pro forma  consolidated
         financial  information  for the anticipated  operating cost savings.  The
         combined  company  expects to achieve  operating cost savings through the
         reduction of certain  borrowing costs as well as potentially  through the
         elimination of redundant  staff  functions,  data  processing,  marketing
         synergies  and  certain  back  office  operations  and the  reduction  of
         corporate overhead.  There can be no assurance that anticipated operating
         cost savings will be achieved.
  
  
                                         31
  
  <PAGE>
  
  ITEM 7(c).  FINANCIAL STATEMENTS AND EXHIBITS, Continued
  
              Exhibits - None
  
  
  
  
  
                                         32
  <PAGE>
  
                                      SIGNATURE
  
            Pursuant to the  requirements of the Securities  Exchange Act of 1934,
  the  registrant  has duly  caused  this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
  
                                        CONSECO, INC.
  
  
  DATE:  July 13, 1998                  By:  /s/ ROLLIN M. DICK
                                             ----------------------------------
                                             Name:  Rollin M. Dick
                                             Title: Executive Vice President
                                                    and Chief Financial Officer
  
  
                                         33
metadata_documents: [{"type": "8-K", "sequence": "1", "description": "FORM 8-K OF CONSECO, INC. DATED 6/30/98", "secsgml_size_bytes": 102325}]
metadata_filer: {"company-data": {"conformed-name": "CONSECO INC", "cik": "0000719241", "assigned-sic": "6321", "irs-number": "351468632", "state-of-incorporation": "IN", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09250", "film-number": "98666565"}, "business-address": {"street1": "11825 N PENNSYLVANIA ST", "city": "CARMEL", "state": "IN", "zip": "46032", "phone": "3175736100"}, "mail-address": {"street1": "11825 N PENNSYLVANIA ST", "city": "CARMEL", "state": "IN", "zip": "46032"}, "former-company": {"former-conformed-name": "SECURITY NATIONAL OF INDIANA CORP", "date-changed": "19840207"}}
text: UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549
  
                                     -----------
  
                                      FORM 8-K
  
                                   CURRENT REPORT
  
                         Pursuant to Section 13 or 15 (d) of
                         the Securities Exchange Act of 1934
  
                                     -----------
  
           Date of Report (Date of earliest event reported): June 30, 1998
  
                                    CONSECO, INC.
               (Exact name of registrant as specified in its charter)
  
      Indiana                            1-9250                35-1468632
    ----------------                    -----------            -------------------
     (State or other                   (Commission             (I.R.S. Employer
     jurisdiction of                    File Number)           Identification No.)
      organization)
  
      11825 North Pennsylvania Street
           Carmel, Indiana                                       46032
    --------------------------------------                     ----------     
  (Address of principal executive offices)                     (Zip Code)
  
                                   (317) 817-6100
                                --------------------
                (Registrant's telephone number, including area code)
  
                                   Not Applicable
                           -------------------------------
                           (Former name or former address,
                           if changed since last report.)
  CONSECO, INC. AND SUBSIDIARIES
  
                                ____________________
  
                                       INDEX
                                       -----
  
                                                                                       Page
                                                                                       ----
  Item 2 -  Acquisition or Disposition of Assets                                         3   
  
  Item 7 -  Financial Statements and Exhibits
  
            (a)  Unaudited  Consolidated  Financial  Statements   of  Green   Tree
                 Financial  Corporation  as of March 31, 1998, and for each of the
                 three month periods ended March 31, 1998 and 1997 were filed with
                 the Commission as Exhibit 99.3 to the Registrant's Form 8-K dated
                 June 3, 1998, and are  incorporated  herein by this reference and
                 are being filed  herewith  pursuant to General  Instruction  F to
                 Form 8-K.                                                               4
  
                 The  Audited  Consolidated  Financial  Statements  of Green  Tree
                 Financial  Corporation required to be filed pursuant to Item 7(a)
                 of this  Current  Report  on Form  8-K  will be  filed as soon as
                 practicable,  but in no event later than  September  13, 1998, 60
                 days after the date this Form 8-K is required to be filed.             16    
  
            (b)  Pro  Forma  Combined  Financial  Statements of  Conseco, Inc. and
                 Subsidiaries  were filed with the  Commission  as Exhibit 99.1 to
                 the   Registrant's   Form  8-K  dated  June  3,  1998,   and  are
                 incorporated  herein  by  this  reference  and  are  being  filed
                 pursuant to General Instruction F to Form 8-K.                         17
  
            (c)  Exhibits - None                                                        32
  2
  ITEM 2.   ACQUISITION OR DISPOSITION OF ASSETS.
  
            On June 30, 1998, Conseco,  Inc. ("Conseco") completed the acquisition
  (the "Merger") of Green Tree Financial Corporation ("Green Tree") pursuant to an
  Agreement and Plan of Merger (the "Merger Agreement") dated as of April 6, 1998,
  as amended, among Conseco,  Marble Acquisition Corp., a Delaware corporation and
  a wholly owned subsidiary of Conseco,  and Green Tree. In the Merger, each share
  of Green Tree's common stock, par value $.01 per share was converted into 0.9165
  of a share of Conseco's common stock, no par value. Conseco issued approximately
  124 million  shares of Conseco  common stock in exchange for all of Green Tree's
  common shares and equivalents.  After the Merger,  Conseco's total common shares
  outstanding  increased to approximately 312 million.  As a result of the Merger,
  Green Tree  became a wholly  owned  subsidiary  of  Conseco.  The Merger will be
  accounted for as a pooling of interests.
  
            Green Tree is a diversified  financial  services company that provides
  financing for  manufactured  homes,  home equity,  home  improvements,  consumer
  products and equipment and provides  consumer and commercial  revolving  credit.
  Green Tree's  insurance  agencies  market physical damage and term mortgage life
  insurance and other credit protection relating to the customers' contracts Green
  Tree  services.  Green Tree is the  largest  servicer  of  manufactured  housing
  contracts in the United  States.  Through its  principal  offices in Saint Paul,
  Minnesota and service  centers  throughout the United States,  Green Tree serves
  all 50 states.
  
            Green Tree pools and securitizes substantially all of the contracts it
  originates,  retaining the servicing on the contracts. Such pools are structured
  into asset-backed securities which are sold in the public securities markets. In
  servicing  the  contracts,  Green Tree  collects  payments from the borrower and
  remits principal and interest payments to the holder of the contract or investor
  certificate backed by the contracts.
  
            Green Tree was originally  incorporated under the laws of the State of
  Minnesota  in 1975.  In 1995,  Green Tree  reincorporated  under the laws of the
  State of Delaware.  Green Tree's principal executive offices are located at 1100
  Landmark Towers, 345 Saint Peter Street, Saint Paul, Minnesota  55102-1639,  and
  its telephone number is (612) 293-3400. 
  
                                         3
  ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS
  
        
        (a) Unaudited Consolidated  Financial  Statements  of Green Tree Financial
            Corporation  as of March 31,  1998,  and for each of the  three  month
            periods ended March 31, 1998 and 1997.
  
                                         4
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                             CONSOLIDATED BALANCE SHEETS
  March 31,         December 31,
                                                              1998                1997
                                                          ---------------    ---------------
                                                            (unaudited)
  ASSETS
  Cash and cash equivalents                               $   888,743,000    $   741,398,000
  Cash deposits, restricted                                   234,194,000        247,237,000
  Other investments                                            19,096,000         25,294,000
  Interest only securities                                  1,412,280,000      1,363,200,000
  Finance receivables                                       2,154,646,000      1,971,024,000
  Other receivables                                           228,525,000        235,705,000
  Servicing rights                                            111,823,000         96,311,000
  Property, furniture and fixtures                            121,164,000        112,404,000
  Goodwill                                                     55,399,000         56,095,000
  Other assets                                                 29,372,000         18,124,000
                                                          ---------------    ---------------
    Total assets                                          $ 5,255,242,000    $ 4,866,792,000
                                                          ===============    ===============
  
  LIABILITIES AND STOCKHOLDERS' EQUITY:
  Notes payable                                           $ 1,548,618,000    $ 1,355,995,000
  Senior/Senior subordinated notes                            510,484,000        510,316,000
  Accounts payable and accrued liabilities                    556,194,000        492,789,000
  Investors payable                                           653,297,000        552,781,000
  Deferred income taxes                                       637,430,000        622,771,000
                                                          ---------------    ---------------
    Total liabilities                                       3,906,023,000      3,534,652,000
  
  Common stock, $.01 par; authorized 400,000,000
    shares; issued 141,899,317 and
    and 141,595,984 shares, respectively                        1,419,000          1,416,000
  Additional paid-in capital                                  445,190,000        435,570,000
  Retained earnings                                         1,127,417,000      1,075,670,000
  Accumulated other comprehensive income (loss):
    Minimum pension liability adjustments                      (3,142,000)        (3,142,000)
    Unrealized gain on securities
       available for sale, net                                    902,000         21,824,000
                                                          ---------------    ---------------
                                                            1,571,786,000      1,531,338,000
  Less treasury stock, 7,773,366 and 7,012,156
     shares at cost                                          (222,567,000)      (199,198,000)
                                                          ---------------    ---------------
  
    Total stockholders' equity                              1,349,219,000      1,332,140,000
                                                          ---------------    ---------------
  
             Total liabilities and stockholders' equity   $ 5,255,242,000    $ 4,866,792,000
                                                          ===============    ===============
  
                    See notes to unaudited financial statements.
  5
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                     (unaudited)
  
                                  Three months ended March 31,
                                  ---------------------------
                                      1998           1997
                                  ------------   ------------
  REVENUES:
    Gain on sale of receivables   $129,116,000   $153,367,000
    Interest                       100,991,000     75,429,000
    Service                         30,216,000     24,681,000
    Commissions and other           25,431,000     13,678,000
                                  ------------   ------------
                                   285,754,000    267,155,000
                                  ------------   ------------
  
  EXPENSES:
    Interest                        48,492,000     29,818,000
    Cost of servicing               26,974,000     19,379,000
    General and administrative     107,912,000     69,889,000
                                  ------------   ------------
                                   183,378,000    119,086,000
                                  ------------   ------------
  
  EARNINGS BEFORE INCOME TAXES     102,376,000    148,069,000
  
  INCOME TAXES                      38,903,000     56,266,000
                                  ------------   ------------
  
  NET EARNINGS                    $ 63,473,000   $ 91,803,000
                                  ============   ============
  
  EARNINGS PER COMMON SHARE:
    BASIC                         $        .47   $        .66
    DILUTED                       $        .47   $        .65
  
                    See notes to unaudited financial statements.
  
                                         6
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                   CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                          (unaudited, dollars in thousands)
  Accumulated
                                                       Additional                       other                        Total
                                           Common       paid-in       Treasury      comprehensive   Retained     stockholders'
                                           stock        capital         stock       income (loss)   earnings         equity
                                        -----------   -----------    -----------   --------------  -----------   -------------
  BALANCES, December 31, 1996           $     1,398   $   373,573    $   (53,913)   $    (2,299)   $   818,733    $ 1,137,492
  
  Comprehensive income, net of tax:
     Net earnings                                --            --             --             --         91,803         91,803
     Unrealized loss on securities, 
       net of applicable
       income taxes ($17,080)                    --            --             --        (27,867)            --        (27,867)
                                                                                                                  -----------
       Total comprehensive income                                                                                      63,936
  Common stock issuance of 
    1,300,000 shares                             13        51,761             --             --             --         51,774
  Cost of 1,017,000 shares of 
    treasury stock acquired                      --            --        (36,688)            --             --        (36,688)
  Dividends on common stock                      --            --             --             --        (10,430)       (10,430)
                                        -----------   -----------    -----------    -----------    -----------    -----------
  BALANCES, March 31, 1997              $     1,411   $   425,334    $   (90,601)   $   (30,166)   $   900,106    $ 1,206,084
                                        ===========   ===========    ===========    ===========    ===========    ===========
  
  BALANCES, December 31, 1997           $     1,416   $   435,570    $  (199,198)   $    18,682    $ 1,075,670    $ 1,332,140
  
  Comprehensive income, net of tax:
     Net earnings                                --            --             --             --         63,473         63,473
     Unrealized loss on securities, 
       net of applicable
       income taxes ($12,823)                    --            --             --       (20,922)             --        (20,922)
                                                                                                                  -----------
       Total comprehensive income                                                                                      42,551
  Stock warrants issuance                        --         7,687           --               --             --          7,687
  Common stock issuance of 
    303,000 shares                                3         1,933           --               --             --          1,936
  Cost of 761,210 shares of 
    treasury stock acquired                      --            --        (23,369)            --             --        (23,369)
  Dividends on common stock                      --            --             --             --       (11,726)        (11,726)
                                        -----------   -----------    -----------    -----------    -----------    -----------
  BALANCES, March 31, 1998              $     1,419   $   445,190    $  (222,567)   $    (2,240)   $ 1,127,417    $ 1,349,219
                                        ===========   ===========    ===========    ===========    ===========    ===========
  
                    See notes to unaudited financial statements.
  7
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (unaudited)
  Three months ended March 31,
                                                                     ----------------------------------
                                                                          1998               1997
                                                                     -------------     ----------------
  CASH FLOWS FROM OPERATING ACTIVITIES:
    Servicing fees and net interest
       payments collected on sold loans                              $    84,070,000    $    78,009,000
    Net principal payments collected on sold loans                       128,678,000         64,067,000
    Interest on unsold loans                                              50,972,000         46,166,000
    Interest on cash and investments                                      14,540,000          8,539,000
    Commissions                                                           19,160,000         11,501,000
    Other                                                                 13,322,000         (2,523,000)
                                                                     ---------------    ---------------
                                                                         310,742,000        205,759,000
                                                                     ---------------    ---------------
  
    Cash paid to employees and suppliers                                (132,988,000)      (126,443,000)
    Interest paid on debt                                                (40,571,000)       (20,251,000)
    Income taxes paid                                                    (10,114,000)        (7,430,000)
                                                                     ---------------    ---------------
                                                                        (183,673,000)      (154,124,000)
                                                                     ---------------    ---------------
  
    NET CASH PROVIDED BY OPERATIONS                                      127,069,000         51,635,000
  
    Purchase of loans and leases                                      (2,766,690,000)    (2,087,204,000)
    Proceeds from sale of loans and leases                             2,607,081,000      1,809,087,000
    Principal collections on unsold loans and leases                     102,141,000        178,880,000
    Commercial and revolving credit loans disbursed                   (1,692,443,000)      (839,249,000)
    Principal collections on commercial and revolving credit loans     1,262,226,000        757,492,000
    Proceeds from sale of commercial and revolving credit loans          317,840,000                 --
    Net cash deposits provided as credit enhancements                     13,043,000         (4,249,000)
                                                                     ---------------    ---------------
  
  NET CASH USED FOR
    OPERATING ACTIVITIES                                                 (29,733,000)      (133,608,000)
  
  CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property, furniture and fixtures                         (17,846,000)       (10,084,000)
    Net sales (purchases) of investment securities                         6,198,000         (3,839,000)
                                                                     ---------------    ---------------
  NET CASH USED FOR INVESTING
    ACTIVITIES                                                           (11,648,000)       (13,923,000)
                                                                     ---------------    ---------------
  8
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                        CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (continued, unaudited)
  Three months ended March 31,
                                                                   ------------------------------------
                                                                         1998               1997
                                                                   ---------------    -----------------
  CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings on credit facilities                                  2,553,788,000      1,921,498,000
    Repayments on credit facilities                                 (2,353,963,000)    (1,659,804,000)
    Common stock issued                                                    627,000            475,000
    Common stock repurchased                                                    --        (36,688,000)
    Dividends paid                                                     (11,726,000)       (10,430,000)
                                                                   ---------------    ---------------
  NET CASH PROVIDED BY
    FINANCING ACTIVITIES                                               188,726,000        215,051,000
                                                                   ---------------    ---------------
  
  NET INCREASE IN CASH AND CASH EQUIVALENTS                            147,345,000         67,520,000
  
  CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                       741,398,000        442,071,000
                                                                   ---------------    ---------------
  
  CASH AND CASH EQUIVALENTS, END OF PERIOD                         $   888,743,000    $   509,591,000
                                                                   ===============    ===============
  
  RECONCILIATION OF NET EARNINGS TO NET CASH
    USED FOR OPERATING ACTIVITIES:
      Net earnings                                                 $    63,473,000    $    91,803,000
      Deferred income taxes                                             38,903,000         56,266,000
      Valuation adjustments of interest only securities                 47,000,000                 --
      Depreciation and amortization                                     10,669,000          7,556,000
      Net loan payments collected, less interest only securities
        and servicing rights recorded                                  (11,746,000)       (50,189,000)
      Amortization of servicing rights                                   4,947,000          2,569,000
      Accretion of yield on interest only securities                   (33,384,000)       (25,257,000)
      Net decrease (increase) in cash deposits                          13,043,000         (4,249,000)
      Purchase of loans and leases,
        net of sales and principal collections                         (72,367,000)       (99,237,000)
      Commercial and revolving loans disbursed, net of
        sales and principal collections                               (109,816,000)       (81,757,000)
      Net selling expenses on sale of loans                             30,786,000         10,897,000
      Interest payable increase                                          7,128,000          8,434,000
      Income taxes paid                                                (10,114,000)        (7,430,000)
      Decrease in amounts payable to employees and suppliers            (7,977,000)       (43,598,000)
      Decrease (increase) in other receivables                           2,570,000         (5,033,000)
      Other                                                             (2,848,000)         5,617,000
                                                                   ---------------    ---------------
  NET CASH USED FOR
    OPERATING ACTIVITIES                                           ($   29,733,000)   ($  133,608,000)
                                                                   ===============    ===============
  
                    See notes to unaudited financial statements.
  9
  GREEN TREE FINANCIAL CORPORATION AND SUBSIDIARIES
  
                       NOTES TO UNAUDITED FINANCIAL STATEMENTS
  
  A. BASIS OF PRESENTATION
  
  The interim  financial  statements  have been  prepared by Green Tree  Financial
  Corporation  (the  "Company"),   without  audit,   pursuant  to  the  rules  and
  regulations of the Securities  and Exchange  Commission  applicable to quarterly
  reports on Form 10-Q.  Certain  information  and footnote  disclosures  normally
  included in financial  statements prepared in accordance with generally accepted
  accounting  principles have been condensed or omitted pursuant to such rules and
  regulations. In the opinion of management, all adjustments which are of a normal
  recurring nature and are necessary for a fair  presentation  have been included.
  However,  results for  interim  periods are not  necessarily  indicative  of the
  results  that may be  expected  for a full  year.  It is  suggested  that  these
  financial  statements be read in  conjunction  with the  consolidated  financial
  statements  and related  notes and schedules  included in the  Company's  Annual
  Report on Form 10-K for the year ended December 31, 1997.
  
  As of January 1, 1998,  the Company  adopted  Statement of Financial  Accounting
  Standards No. 130,  "Reporting  Comprehensive  Income"  ("SFAS  130").  SFAS 130
  establishes standards for reporting and presentation of comprehensive income and
  its  components  in a full set of  financial  statements.  Comprehensive  income
  includes  all  changes  in  stockholders'   equity  except  those  arising  from
  transactions  with  shareholders.  The new  standard  requires  only  additional
  disclosures in the  consolidated  financial  statements;  it does not affect the
  Company's financial position or results of operations.
  
                                         10
  B. INTEREST ONLY SECURITIES
  
  The activity in interest only securities for the three months ended March 31,
  1998 is summarized as follows:
  
   Balance at beginning of period                          $1,363,200,000
   Additions                                                  164,349,000
   Yield on interest only securities                           33,384,000
   Net cash collected                                         (67,908,000)
   Realized writedown of interest only
     securities                                               (47,000,000)
   Unrealized writedown of interest
     only securities                                          (33,745,000)
                                                         ----------------
   Balance at end of period                                $1,412,280,000
                                                         ================
  
  In 1995 and  previous  years,  the  Company  sold a  substantial  portion of its
  interest  only  securities  related  to  manufactured   housing   securitization
  transactions  between  1978  and 1995 in the form of  securitized  Net  Interest
  Margin  Certificates.  The Company retained a subordinated  interest in the cash
  flow of the interest  only  securities  sold.  These  interests  are included in
  interest only securities and total $79,357,000 at March 31, 1998.
  
  Generally,   interest  only  securities   relate  to  the  sale  of  closed  end
  manufactured  housing,  home equity,  home  improvement,  consumer and equipment
  finance  receivables.  The Company's  interest only  securities are subject to a
  substantial amount of credit loss and prepayment risk related to the receivables
  sold. In connection with the valuation of interest only securities,  the Company
  has provided for  approximately  $946,060,000  of credit  losses as of March 31,
  1998.  On a  nondiscounted  basis the amount of credit  losses  provided  for in
  connection with the valuation of the interest only  securities is  approximately
  $1,399,149,000.  These estimated losses if realized,  would reduce the amount of
  cash flows  available to the interest only  securities and are considered in the
  Company's valuation processes.
  
  The weighted average  interest rate used to discount  expected future cash flows
  of the interest only securities is 11.60% as of March 31, 1998.
  
                                         11
  The table below details  information  pertinent to the valuation of the interest
  only securities as of March 31, 1998.
  Manufactured      Home Equity/         Consumer/
                                                       Housing        Home Improvement      Equipment            Total
                                                   ---------------    ----------------    -------------    ----------------
  Interest only securities carrying amount         $   872,578,000      396,498,000         143,204,000    $  1,412,280,000
  
  Unpaid principal balance of sold receivables     $18,186,731,000    5,004,964,000       2,655,252,000     $25,846,947,000
  
  Weighted average customer interest rate on
       sold receivables                                      10.46%          11.85%               11.12%
  
  Approximate expected weighted average constant
       prepayment rate as a percentage
       of unpaid principal balance of sold
       receivables (1)                                        9.75%           25.0%                22.0%
  
  Approximate remaining expected non
       discounted credit losses as a percentage
       of unpaid principal balance of sold
       receivables (1)                                         6.2%            4.4%                 2.0%
  (1)   Valuation of the  Company's  interest only securities is impacted not only
        by the projected  level of prepayments of principal and net credit losses,
        as shown above,  but also by the projected  timing of such prepayments and
        net credit losses. Should the timing of projected prepayments of principal
        or net credit losses differ  materially  from the timing  projected by the
        Company,  such timing could have a material effect on the valuation of the
        interest only securities.
  
                                          12
  C. FINANCE RECEIVABLES
  
  Finance receivables consisted of the following:
  
                          March 31, 1998   December 31,1997
                          --------------   ----------------
  Lease                   $  267,987,000   $  191,572,000
  Commercial Finance         632,172,000      683,691,000
  Revolving Credit Card      324,795,000      165,151,000
  Loans Held For Sale        929,692,000      930,610,000
                          --------------   --------------
     Total                $2,154,646,000   $1,971,024,000
                          ==============   ==============
  
  D. SERVICING RIGHTS
  
  The  activity  in  servicing  rights  for the  period  ended  March 31,  1998 is
  summarized as follows:
  
  Balance at beginning of period      $   96,311,000
  Additions                               20,459,000
  Amortization                           ( 4,947,000)
                                      --------------
  Balance at end of period             $ 111,823,000
                                      ==============
  
  E. EARNINGS PER SHARE
  
  Basic  earnings  per share is computed by dividing  net earnings by the weighted
  average number of shares of Common Stock outstanding during each period. Diluted
  earnings per share is computed by dividing net earnings by the weighted  average
  number of shares of Common Stock and potential Common Stock  outstanding  during
  each period.  The following table presents the earnings per share data.  Options
  to purchase  5,529,469 and 298,544  shares are excluded from the  computation of
  diluted earnings per common share because of their anti-dilutive  effect, as the
  exercise  price of the option  exceeds  the average  market  price of the Common
  Stock for the three months ended March 31, 1998 and 1997, respectively.
  
                                    Three months ended March 31,
                                    ---------------------------
                                        1998           1997
                                    ------------   ------------
  
  Net Earnings                      $ 63,473,000   $ 91,803,000
                                    ============   ============
  Weighted average Common Stock
     outstanding                     134,236,605    138,511,310
   Effect of dilutive securities:
     Options                           1,463,317      3,708,253
     Warrants                            119,981           --
                                    ------------   ------------
   Diluted Common Stock              135,819,903    142,219,563
                                    ============   ============
  
   Earnings per common share:
     Basic                          $        .47   $        .66
     Diluted                        $        .47   $        .65
  
                                          13
  F. STOCKHOLDERS' EQUITY
  
  STOCK OPTION PLANS
  
  The Company has three stock option plans: two employee stock option plans and an
  outside  director plan. In 1992, the Board of Directors  approved a supplemental
  stock option plan for its outside directors. In 1995, the Company's stockholders
  approved  an  Employee  Stock  Incentive  Plan.  In 1998 the Board of  Directors
  approved a Company  Stock  Option Plan for  issuances  of stock  options to non-
  officer employees.
  
  Options for 864,520  shares were  available  for future grant under these plans.
  The  Company's  Board of  Directors  has reserved  11,149,252  shares for future
  issuance under all plans as of March 31, 1998.
  
  A summary of the stock option plan activity is as follows:
  
                                       Number of   Weighted Average
                                        Shares      Exercise Price
                                      ----------   -----------------
  
  Outstanding at December 31, 1997     9,910,465      $25.98
    Granted                              835,500       23.00
    Exercised                           (303,333)      12.87
    Expired                             (156,900)      30.92
                                      ----------
  
  Outstanding at March 31, 1998       10,285,732      $23.04
                                      ==========
  
  Of the  10,285,732  options  outstanding at March 31, 1998,  10,145,732  options
  relate to the  employee  and chief  executive  stock  option  plans and  140,000
  options relate to the outside director plan.
  
  On March 1, 1998, the Company offered to reprice certain  employee stock options
  to the current  market price on March 1, 1998. The offer was not extended to the
  six most senior executive  officers.  Employees accepting this offer agreed to a
  revised  vesting  schedule  and an exercise  price of $23.00,  representing  the
  market price at March 1, 1998. Approximately 2.8 million options were repriced.
  
                                         14
  A summary of stock options  outstanding  and exercisable at March 31, 1998 is as
  follows:
  
  Options Outstanding:
  
      Range of           Number            Remaining          Weighted Average
   Exercise Prices     Outstanding      Contractual Life        Exercise Price
  - -----------------   -------------     ----------------     -------------------
  
     $  2.97-22.50       1,714,332          4.17                 $  6.46
       23.00-23.00       3,639,500          9.92                   23.00
       23.38-30.50       2,350,300          7.68                   25.52
       30.88-33.38       2,323,000          7.90                   31.21
       33.50-47.00         258,600          9.17                   37.61
       -----------       ---------          ----                 -------        
     $  2.97-47.00      10,285,732          7.97                 $ 23.04
  
  Options Exercisable:
  
      Range of             Number        Weighted Average
  Exercise Prices        Exercisable      Exercise Price
  - -------------------    -----------     -----------------
  
       $  2.97-22.50       1,563,665         $ 5.45
         23.00-23.00               0           0.00
         23.38-30.50         824,300          25.01
         30.88-33.38         493,000          31.31
         33.50-47.00          57,600          38.10
       --------------      ----------       -------
  
       $  2.97-47.00       2,938,565        $ 15.92
  
  WARRANTS
  
  On February 13, 1998, the Company issued warrants to purchase 2.7 million common
  shares at $22.75 per share to the provider of a credit  facility  secured by the
  Company's interest only securities. The warrant expires on the later of February
  13, 2000 or 90 days after the credit facility has been paid in full. The Company
  has the option to call and  repurchase  the warrant for $15.00 per warrant share
  regardless of the closing price of the common shares at the call date.
  
                                         15
  ITEM 7(a).  FINANCIAL STATEMENTS AND EXHIBITS, continued
  
              The  Audited   Consolidated   Financial  Statements  of  Green  Tree
              Financial  Corporation required to be filed pursuant to Item 7(a) of
              this  Current   Report  on  Form  8-K  will  be  filed  as  soon  as
              practicable,  but in no event later than September 13, 1998, 60 days
              after the date this Form 8-K is required to be filed.
  
                                         16
  ITEM 7(b).  FINANCIAL STATEMENTS AND EXHIBITS, Continued
  
              Pro  Forma  Combined  Financial  Statements  of  Conseco,  Inc . and
              Subsidiaries.
  
                                         17
  UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS OF CONSECO, INC.
  
         On April 6, 1998,  Conseco,  Inc.  ("Conseco")  and Green Tree  Financial
  Corporation ("Green Tree") entered into an Agreement and Plan of Merger pursuant
  to which  Green Tree would  become a wholly  owned  subsidiary  of Conseco  (the
  "Merger").  The following unaudited pro forma combined balance sheet as of March
  31, 1998,  combines the historical  combined balance sheets of Conseco and Green
  Tree as if the Merger had been effective on March 31, 1998,  after giving effect
  to certain adjustments  described in the accompanying notes to the unaudited pro
  forma combined financial information.
  
         The unaudited pro forma  combined  statements of operations for the three
  months  ended  March 31,  1998 and 1997,  and for each of the three  years ended
  December 31, 1997,  present the combined  results of  operations  of Conseco and
  Green Tree as if the Merger had been effective at the earliest period presented.
  
         The unaudited pro forma combined  financial  information and accompanying
  notes reflect the  application of the pooling of interests  method of accounting
  for  the  Merger.  Under  this  method  of  accounting,   the  recorded  assets,
  liabilities,  shareholders' equity, income and expense of Conseco and Green Tree
  are combined and reflected at their historical amounts.
  
         The unaudited pro forma  combined  financial  statements are based on the
  historical  financial  statements of Conseco and Green Tree and are qualified in
  their  entirety  by, and should be read in  conjunction  with,  these  financial
  statements  and the notes thereto.  The unaudited pro forma  combined  financial
  statements  are not  necessarily  indicative of the results of operations or the
  combined  financial  position  that would  have  resulted  had the  Merger  been
  consummated at the beginning of the period  indicated,  nor are they necessarily
  indicative of future results of operations or financial position.
  
                                         18
  CONSECO, INC. AND SUBSIDIARIES
  
                     UNAUDITED PRO FORMA COMBINED BALANCE SHEET
                                   March 31, 1998
                                (Dollars in millions)
  
                                       ASSETS
  
                                                                                                                            PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      ----------
  Investments:
      Actively managed fixed maturities at fair value..................      $22,968.9      $    -         $  -              $22,968.9
      Equity securities at fair value..................................          263.4           -            -                  263.4
      Interest only securities.........................................            -         1,412.3          -                1,412.3
      Finance receivables..............................................            -         2,154.6          -                2,154.6
      Mortgage loans...................................................          474.2           -            -                  474.2
      Credit-tenant loans..............................................          596.6           -            -                  596.6
      Policy loans.....................................................          691.7           -            -                  691.7
      Other invested assets ...........................................          534.8          19.1          -                  553.9
      Short-term investments...........................................          837.7         888.7          -                1,726.4
      Assets held in separate accounts.................................          675.2           -            -                  675.2
                                                                             ---------      --------       ------            ---------
  
            Total investments..........................................       27,042.5       4,474.7          -               31,517.2
            
  Accrued investment income............................................          399.9           -            -                  399.9
  Other receivables....................................................            -           228.5          -                  228.5
  Servicing rights.....................................................            -           111.8          -                  111.8
  Cost of policies purchased...........................................        2,442.6           -            -                2,442.6
  Cost of policies produced............................................        1,022.5           -            -                1,022.5
  Reinsurance receivables..............................................          761.8           -            -                  761.8
  Income tax assets....................................................           42.4           -          (42.4) (2)             - 
  Goodwill.............................................................        3,604.9          55.4          -                3,660.3
  Property and equipment...............................................          176.0         121.2          -                  297.2
  Cash deposits, restricted............................................            -           234.2          -                  234.2
  Other assets.........................................................          431.3          29.4          -                  460.7
                                                                             ---------      --------       ------            ---------
  
            Total assets...............................................      $35,923.9      $5,255.2       $(42.4)           $41,136.7
                                                                             =========      ========       ======            =========
  
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  19
  CONSECO, INC. AND SUBSIDIARIES
  
               UNAUDITED PRO FORMA COMBINED BALANCE SHEET (Continued)
                                   March 31, 1998
                                (Dollars in millions)
  
                        LIABILITIES AND SHAREHOLDERS' EQUITY
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      ---------
  Liabilities:
      Insurance liabilities:
         Interest sensitive products...................................      $17,320.6      $    -         $   -            $17,320.6
         Traditional products..........................................        5,758.0           -             -              5,758.0
         Claims payable and other policyholder funds...................        1,617.3           -             -              1,617.3 
         Unearned premiums.............................................          409.1           -             -                409.1
         Liabilities related to separate accounts......................          675.2           -             -                675.2
      Investment borrowings............................................        1,196.1           -             -              1,196.1
      Investor payables................................................            -           653.3           -                653.3
      Other liabilities................................................        1,223.4         556.2         240.0  (3)       2,019.6
      Income tax liabilities...........................................            -           637.4         (42.4) (2)         595.0
      Notes payable and commercial paper: 
        Corporate......................................................        2,435.1           -             -              2,435.1
        Related to finance receivables.................................            -         2,059.1           -              2,059.1
                                                                             ---------      --------       -------          --------- 
  
            Total liabilities..........................................       30,634.8       3,906.0         197.6           34,738.4 
                                                                             ---------      --------       -------          --------- 
  
  Minority interest:
      Company-obligated mandatorily redeemable
         preferred securities of subsidiary trust......................        1,388.1           -             -              1,388.1
      Common stock of subsidiary.......................................             .7           -             -                   .7
  
  Shareholders' equity:
      Preferred stock..................................................          115.8           -             -                115.8
      Common stock and additional paid-in capital......................        2,397.0         446.6        (222.6) (4)       2,621.0
      Accumulated other comprehensive income:
         Unrealized appreciation of fixed maturity investments.........          159.0           -             -                159.0
         Unrealized appreciation of other investments..................           10.9            .9           -                 11.8
         Minimum pension liability adjustment..........................            -            (3.1)          -                 (3.1)
      Less treasury shares at cost.....................................            -          (222.6)        222.6  (4)           - 
      Retained earnings................................................        1,217.6       1,127.4        (240.0) (3)       2,105.0
                                                                             ---------      --------       -------          --------- 
            Total shareholders' equity.................................        3,900.3       1,349.2        (240.0)           5,009.5
                                                                             ---------      --------       -------          --------- 
  
            Total liabilities and shareholders' equity.................      $35,923.9      $5,255.2       $ (42.4)         $41,136.7 
                                                                             =========      ========       =======          ========= 
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  20
  CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED  STATEMENT OF OPERATIONS
                      for the three months ended March 31, 1998
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $  859.4          $  -                            $  859.4
         Interest sensitive products......................................     130.7             -                               130.7
      Net investment income...............................................     583.3           101.0                             684.3
      Gain on sale of receivables.........................................       -             129.1                             129.1
      Net investment gains................................................     104.8             -                               104.8
      Fee revenue and other income........................................      20.8            55.7                              76.5
                                                                            --------          ------                          --------
  
              Total revenues..............................................   1,699.0           285.8                           1,984.8
                                                                            --------          ------                          --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................     680.4             -                               680.4
      Amounts  added  to  annuity  and  financial  product
         policyholder account balances:
            Interest......................................................     188.4             -                               188.4
            Other amounts added to variable and equity-indexed
               annuity products...........................................      85.6             -                                85.6
      Interest expense on notes payable...................................      39.0            48.5                              87.5
      Interest expense on short-term investment borrowings................      18.9             -                                18.9
      Amortization related to operations..................................     117.1             -                               117.1
      Amortization related to investment gains............................      86.4             -                                86.4
      Other operating costs and expenses..................................     165.0           134.9                             299.9
                                                                            --------          ------                          --------
  
            Total benefits and expenses...................................   1,380.8           183.4                           1,564.2
                                                                            --------          ------                          --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     318.2           102.4                             420.6
  
  Income tax expense......................................................     131.3            38.9                             170.2
                                                                            --------          ------                          --------
  
            Income before minority interest and
                extraordinary charge .....................................     186.9            63.5                             250.4
  
  Minority interest - distributions on Company-obligated mandatorily 
      redeemable preferred securities of subsidiary trusts, net of 
      income taxes........................................................      19.4             -                                19.4
                                                                            --------          ------                          --------
  
            Income before extraordinary charge .........................       167.5            63.5                             231.0
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................      16.4             -                                16.4
                                                                            --------          ------                          --------
  
            Net income..................................................       151.1            63.5                             214.6
  
  Less preferred stock dividends..........................................       2.0             -                                 2.0
                                                                            --------          ------                          --------
  
            Net income applicable to common stock.......................    $  149.1          $ 63.5                          $  212.6
                                                                            ========          ======                          ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  21
  CONSECO, INC. AND SUBSIDIARIES
  
           UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                      for the three months ended March 31, 1998
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE     ADJUSTMENTS      COMBINED
                                                                              -------      ----------     -----------      --------
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  185,941,000      134,237,000    (11,209,000) (4) 308,969,000
         Net income before extraordinary charge ........................         $.89             $.47                            $.74
         Extraordinary charge ..........................................          .09               -                              .05
                                                                                 ----             ----                            ----
  
              Net income................................................         $.80             $.47                            $.69
                                                                                 ====             ====                            ====
  
      Diluted:
         Weighted average shares outstanding...........................   207,930,000      135,820,000    (11,341,000) (4) 332,409,000
         Net income before extraordinary charge ........................         $.81             $.47                            $.70
         Extraordinary charge...........................................          .08               -                              .05
                                                                                 ----             ----                            ----
  
              Net income................................................         $.73             $.47                            $.65
                                                                                 ====             ====                            ====
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  22
  CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED  STATEMENT OF OPERATIONS
                      for the three months ended March 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $  566.2          $  -                            $  566.2
         Interest sensitive products......................................     103.9             -                               103.9
      Net investment income...............................................     409.2            75.4                             484.6
      Gain on sale of receivables.........................................       -             153.4                             153.4
      Net investment gains................................................       5.1             -                                 5.1
      Fee revenue and other income........................................      14.6            38.4                              53.0
                                                                            --------          ------                          --------
  
              Total revenues..............................................   1,099.0           267.2                           1,366.2
                                                                            --------          ------                          --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................     455.3             -                               455.3
      Amounts  added  to  annuity  and  financial  product
         policyholder account balances:
            Interest......................................................     173.7             -                               173.7
            Other amounts added to variable and equity-indexed
               annuity products...........................................      16.2             -                                16.2
      Interest expense on notes payable...................................      25.8            29.8                              55.6
      Interest expense on short-term investment borrowings................       2.8             -                                 2.8
      Amortization related to operations..................................     103.6             -                               103.6
      Amortization related to investment gains............................      11.8             -                                11.8
      Other operating costs and expenses..................................     114.4            89.3                             203.7
                                                                            --------          ------                          --------
  
            Total benefits and expenses...................................     903.6           119.1                           1,022.7
                                                                            --------          ------                          --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     195.4           148.1                             343.5
  
  Income tax expense......................................................      70.6            56.3                             126.9
                                                                            --------          ------                          --------
  
            Income before minority interest and
                extraordinary charge .....................................     124.8            91.8                             216.6
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
        preferred securities of subsidiary trusts, net of income taxes....       8.7             -                                 8.7
      Dividends on preferred stock of subsidiaries........................       1.3             -                                 1.3
                                                                            --------          ------                          --------
  
            Income before extraordinary charge ...........................     114.8            91.8                             206.6
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       3.3             -                                 3.3
                                                                            --------          ------                          --------
  
            Net income....................................................     111.5            91.8                             203.3
  
  Less amounts applicable to preferred stock:
      Charge related to induced conversions...............................      12.3             -                                12.3
      Preferred stock dividends...........................................       2.3             -                                 2.3
                                                                            --------          ------                          --------
  
            Net income applicable to common stock.......................    $   96.9          $ 91.8                          $  188.7
                                                                            ========          ======                          ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  23
  CONSECO, INC. AND SUBSIDIARIES
  
           UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                      for the three months ended March 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA
                                                                              CONSECO      GREEN TREE     ADJUSTMENTS      COMBINED
                                                                              -------      ----------     -----------      --------
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  177,670,000      138,511,000    (11,566,000) (4) 304,615,000
         Net income before extraordinary charge ........................         $.57             $.66                            $.63
         Extraordinary charge ..........................................          .02               -                              .01
                                                                                 ----             ----                            ----
  
              Net income................................................         $.55             $.66                            $.62
                                                                                 ====             ====                            ====
  
      Diluted:
         Weighted average shares outstanding...........................   203,620,000      142,220,000    (11,875,000) (4) 333,965,000
         Net income before extraordinary charge ........................         $.51             $.65                            $.58
         Extraordinary charge...........................................          .02               -                              .01
                                                                                 ----             ----                            ----
  
              Net income................................................         $.49             $.65                            $.57
                                                                                 ====             ====                            ====
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  24
  CONSECO, INC. AND SUBSIDIARIES
  
                UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $2,954.1         $    -                           $2,954.1
         Interest sensitive products......................................     456.7              -                              456.7
      Net investment income...............................................   1,825.3            370.6                          2,195.9
      Gain on sale of receivables.........................................       -              546.8                            546.8
      Net investment gains................................................     266.5              -                              266.5
      Fee revenue and other income........................................      65.8            174.1                            239.9
                                                                            --------         --------                         --------
  
              Total revenues..............................................   5,568.4          1,091.5                          6,659.9
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   2,368.3              -                            2,368.3
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     697.1              -                              697.1
            Other amounts added to variable and equity-indexed
               annuity products...........................................     109.6                                             109.6
      Interest expense on notes payable...................................     109.4            160.9                            270.3
      Interest expense on short-term investment borrowings................      42.0              -                               42.0
      Amortization related to operations..................................     408.8              -                              408.8
      Amortization related to investment gains............................     181.2              -                              181.2
      Nonrecurring charges................................................      71.7              -                               71.7
      Other operating costs and expenses..................................     577.2            444.5                          1,021.7
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   4,565.3            605.4                          5,170.7
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................   1,003.1            486.1                          1,489.2
  
  Income tax expense......................................................     376.6            184.7                            561.3
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     626.5            301.4                            927.9
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
         preferred securities of subsidiary trusts, net of income taxes...      49.0               -                              49.0
      Dividends on preferred stock of subsidiaries........................       3.3               -                               3.3
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     574.2            301.4                            875.6
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       6.9              -                                6.9
                                                                            --------         --------                         --------
  
              Net income..................................................     567.3            301.4                            868.7
  
  Less amounts applicable to preferred stock:
      Charge related to induced conversions...............................      13.2               -                              13.2
      Preferred stock dividends...........................................       8.7               -                               8.7
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  545.4         $  301.4                         $  846.8
                                                                            ========         ========                         ========
                              (continued on next page)
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  25
  CONSECO, INC. AND SUBSIDIARIES
  
          UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1997
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  185,751,000     136,715,000      (11,416,000)(4) 311,050,000
         Net income before extraordinary charge ........................        $2.98           $2.20                            $2.74
         Extraordinary charge ..........................................          .04             -                                .02
                                                                                -----           -----                            -----
  
              Net income................................................        $2.94           $2.20                            $2.72
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  210,179,000     140,254,000      (11,711,000)(4) 338,722,000
         Net income before extraordinary charge ........................        $2.67           $2.15                            $2.55
         Extraordinary charge...........................................          .03             -                                .02
                                                                                -----           -----                            -----
  
              Net income................................................        $2.64           $2.15                            $2.53
                                                                                =====           =====                            =====
  
                       The accompanying notes are an integral
                 part of the unaudited pro forma combined financial
                                     statements.
  26
  CONSECO, INC. AND SUBSIDIARIES
  
                     PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1996
                    (Dollars in millions, except per share data)
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $1,384.3         $    -                           $1,384.3
         Interest sensitive products......................................     269.9              -                              269.9
      Net investment income...............................................   1,302.5            215.3                          1,517.8
      Gain on sale of receivables.........................................       -              389.7                            389.7
      Net investment gains................................................      60.8              -                               60.8
      Fee revenue and other income........................................      49.8            119.1                            168.9
                                                                            --------         --------                         --------
  
              Total revenues..............................................   3,067.3            724.1                          3,791.4
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   1,195.0              -                            1,195.0
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     620.2              -                              620.2
            Other amounts added to variable and equity-indexed
               annuity products...........................................      48.4              -                               48.4
      Interest expense on notes payable...................................     108.1             70.1                            178.2
      Interest expense on short-term investment borrowings................      22.0              -                               22.0
      Amortization related to operations..................................     240.0              -                              240.0
      Amortization related to investment gains............................      36.0              -                               36.0
      Other operating costs and expenses..................................     304.0            330.2                            634.2
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   2,573.7            400.3                          2,974.0
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     493.6            323.8                            817.4
  
  Income tax expense......................................................     179.8            123.0                            302.8
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     313.8            200.8                            514.6
  
  Minority interest:
      Distributions on Company-obligated mandatorily redeemable
         preferred securities of subsidiary trusts, net of income taxes...       3.6               -                               3.6
      Dividends on preferred stock of subsidiaries........................       8.9               -                               8.9
      Equity in earnings of subsidiaries..................................      22.4               -                              22.4
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     278.9            200.8                            479.7
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................      26.5               -                              26.5
                                                                            --------         --------                         --------
  
              Net income..................................................     252.4            200.8                            453.2
  
  Less preferred stock dividends..........................................      27.4               -                              27.4
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  225.0         $  200.8                         $  425.8
                                                                            ========         ========                         ========
  
                                                   (continued on next page)
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  27
  CONSECO, INC. AND SUBSIDIARIES
  
               PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1996
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................  104,584,000     136,996,000      (11,439,000)(4) 230,141,000
         Net income before extraordinary charge ........................        $2.40           $1.47                            $1.96
         Extraordinary charge ..........................................          .25             -                                .11
                                                                                -----           -----                            -----
  
              Net income................................................        $2.15           $1.47                            $1.85
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  138,860,000     140,562,000      (11,737,000)(4) 267,685,000
         Net income before extraordinary charge ........................        $2.01           $1.43                            $1.79
         Extraordinary charge...........................................          .19             -                                .10
                                                                                -----           -----                            -----
  
              Net income................................................        $1.82           $1.43                            $1.69
                                                                                =====           =====                            =====
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  28
  CONSECO, INC. AND SUBSIDIARIES
  
                     PRO FORMA COMBINED STATEMENT OF OPERATIONS
                        for the year ended December 31, 1995
                    (Dollars in millions, except per share data)
  
                                                                                                                          PRO FORMA
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS     COMBINED
                                                                              -------      ----------      -----------     --------
  Revenues:
      Insurance policy income:
         Traditional products.............................................  $1,355.6         $    -                           $1,355.6
         Interest sensitive products......................................     109.4              -                              109.4
      Net investment income...............................................   1,142.6            176.0                          1,318.6
      Gain on sale of receivables.........................................       -              448.7                            448.7
      Net investment gains................................................     204.1              -                              204.1
      Fee revenue and other income........................................      43.6             86.6                            130.2
                                                                            --------         --------                         --------
  
              Total revenues..............................................   2,855.3            711.3                          3,566.6
                                                                            --------         --------                         --------
  
  Benefits and expenses:
      Insurance policy benefits...........................................   1,107.5              -                            1,107.5
      Amounts  added  to  annuity  and  financial  product   
         policyholder  account balances:
            Interest......................................................     556.6              -                              556.6
            Other amounts added to variable and equity-indexed
               annuity products...........................................      28.8              -                               28.8
      Interest expense on notes payable...................................     119.4             57.3                            176.7
      Interest expense on short-term investment borrowings................      22.2              -                               22.2
      Amortization related to operations..................................     203.6              -                              203.6
      Amortization related to investment gains............................     126.6              -                              126.6
      Other operating costs and expenses..................................     272.1            244.4                            516.5
                                                                            --------         --------                         --------
  
            Total benefits and expenses...................................   2,436.8            301.7                          2,738.5
                                                                            --------         --------                         --------
  
            Income before income taxes, minority interest
                and extraordinary charge .................................     418.5            409.6                            828.1
  
  Income tax expense......................................................      87.0            155.6                            242.6
                                                                            --------         --------                         --------
  
            Income before minority interest and
                extraordinary charge .....................................     331.5            254.0                            585.5
  
  Minority interest:
      Dividends on preferred stock of subsidiaries........................      11.9               -                              11.9
      Equity in earnings of subsidiaries..................................      97.1               -                              97.1
                                                                            --------         --------                         --------
  
              Income before extraordinary charge .........................     222.5            254.0                            476.5
  
  Extraordinary charge on extinguishment of
      debt, net of taxes and minority interest............................       2.1              -                                2.1
                                                                            --------         --------                         --------
  
              Net income..................................................     220.4            254.0                            474.4
  
  Less preferred stock dividends..........................................      18.4               -                              18.4
                                                                            --------         --------                         --------
  
              Net income applicable to common stock.......................  $  202.0         $  254.0                         $  456.0
                                                                            ========         ========                         ========
  
                              (continued on next page)
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  29
  CONSECO, INC. AND SUBSIDIARIES
  
               PRO FORMA COMBINED STATEMENT OF OPERATIONS (Continued)
                        for the year ended December 31, 1995
                    (Dollars in millions, except per share data)
  
                                                                                                                           PRO FORMA  
                                                                              CONSECO      GREEN TREE      ADJUSTMENTS      COMBINED
                                                                              -------      ----------      -----------      --------
  Earnings per common share:
      Basic:
         Weighted average shares outstanding............................   81,405,000     136,644,000      (11,410,000)(4) 206,639,000
         Net income before extraordinary charge ........................        $2.51           $1.86                            $2.22
         Extraordinary charge ..........................................          .03             -                                .01
                                                                                -----           -----                            -----
  
              Net income................................................        $2.48           $1.86                            $2.21
                                                                                =====           =====                            =====
  
      Diluted:
         Weighted average shares outstanding............................  103,881,000     140,090,000      (11,698,000)(4) 232,273,000
         Net income before extraordinary charge ........................        $2.14           $1.81                            $2.05
         Extraordinary charge...........................................          .02             -                                .01
                                                                                -----           -----                            -----
  
              Net income................................................        $2.12           $1.81                            $2.04
                                                                                =====           =====                            =====
  
                       The accompanying notes are an integral
                      part of the pro forma combined financial
                                     statements.
  30
  NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
  
  1.     BASIS OF PRESENTATION
  
         The unaudited pro forma combined financial  statements have been prepared
         assuming  that the  Merger  will be  accounted  for under the  pooling of
         interests method and are based on the historical  consolidated  financial
         statements of Conseco and Green Tree.  Certain  amounts in the historical
         financial statements of Green Tree have been reclassified to conform with
         Conseco's historical financial statement presentation.
  
         Conseco  and  Green  Tree are still in the  process  of  reviewing  their
         respective  accounting  policies  relative to those followed by the other
         entity.  As a result of this  review,  it might be  necessary  to restate
         certain  amounts in  Conseco's or Green Tree's  financial  statements  to
         conform  to those  accounting  policies  that are  most  appropriate.  In
         management's opinion, any such restatements will not be material.
  
         Green Tree pools and securitizes  substantially all of the loan contracts
         it originates,  retaining:  (i) investments in  interest-only  securities
         that are  subordinated  to the  rights of other  investors;  and (ii) the
         servicing on the contracts. The valuation of interest-only securities and
         servicing  rights is determined by  discounting  the projected cash flows
         over the expected life of the finance  receivables sold using prepayment,
         default,  loss, servicing cost and discount rate assumptions.  Impairment
         in the value of interest-only  securities considered other than temporary
         is  recognized  as a reduction  to  earnings,  while  impairment  that is
         temporary  is  recognized  as  a  reduction  to   shareholders'   equity.
         Impairment in the value of servicing  rights is recognized as a reduction
         in  earnings.   The   assumptions   used  in  calculating  the  value  of
         interest-only  securities and servicing rights are subject to volatility.
         Prepayments  resulting from competition,  obligor  mobility,  general and
         regional economic  conditions,  and prevailing interest rates, as well as
         actual losses incurred, may vary from the performance projected in future
         periods.  Assumptions  with  respect  to  future  prepayments,  defaults,
         losses, servicing costs and discount rates are reviewed periodically.  As
         disclosed  in its  Quarterly  Report on Form 10-Q for the  quarter  ended
         March 31, 1998, Green Tree realized a material writedown of its interest-
         only securities due to higher than expected prepayments. Prepayments have
         continued to exceed  expectations in April 1998. If prepayments  continue
         above expectations, or upon review certain other assumptions are revised,
         it is likely that there will be a further material writedown in the value
         of the  interest-only  securities and servicing rights and this reduction
         in value could materially affect operating results. Any adjustments to be
         made in future  periods  will  depend on  circumstances  existing at that
         time.
  
         The unaudited pro forma consolidated financial information should be read
         in conjunction with the historical  consolidated  financial statements of
         Conseco and Green Tree and the notes thereto.
  
  2.     INCOME TAX LIABILITIES
  
         The  income  tax assets of  Conseco  are  netted  against  the income tax
         liabilities of Green Tree.
  
  3.     MERGER AND INTEGRATION COSTS
  
         In connection with the Merger,  Conseco  expects to incur  Merger-related
         costs of  approximately  $240 million,  net of income  taxes.  Such costs
         include  investment  banking,  accounting,  legal  and  regulatory  fees,
         severance and retention costs and other costs associated with the Merger.
         These expenses  (including the related tax effect) have been reflected in
         the unaudited pro forma combined balance sheet financial information, but
         are not  reflected in the  unaudited  pro forma  statement of  operations
         financial  information  since such  expenses  are not  expected to have a
         continuing impact on the combined company.
  
  4.     SHAREHOLDERS' EQUITY AND WEIGHTED AVERAGE SHARES OUTSTANDING
  
         Weighted  average  shares  outstanding  have been adjusted to reflect the
         issuance of .9165 shares of Conseco  common stock for each share of Green
         Tree  common  stock or  equivalent.  The  following  shares of Green Tree
         common  stock or  equivalents  were  outstanding  at April 6,  1998:  (i)
         134,012,054  shares of Green Tree common stock;  (ii) 10,297,132  options
         outstanding  to purchase  Green Tree common stock at an average  price of
         $23.12 per share (such  options are  equivalent  to  6,174,713  shares of
         Conseco common stock, based on the last reported sale price of a share of
         Conseco  common stock on April 6, 1998);  and (iii)  warrants to purchase
         2,735,688  shares of Green Tree  common  stock at $22.75 per share  (such
         warrants are equivalent to 710,568 shares of Conseco common stock,  based
         on the last  reported  sale price of a share of Conseco  common  stock on
         April 6, 1998 based on Green  Tree's right to call the warrant by issuing
         stock  equivalents at $15 per warrant).  The treasury stock held by Green
         Tree  prior to the  Merger  has been  reclassified  to  common  stock and
         additional paid-in capital to conform to Conseco's presentation.
  
  5.     OPERATING COST SAVINGS
  
         No adjustment  has been included in the unaudited pro forma  consolidated
         financial  information  for the anticipated  operating cost savings.  The
         combined  company  expects to achieve  operating cost savings through the
         reduction of certain  borrowing costs as well as potentially  through the
         elimination of redundant  staff  functions,  data  processing,  marketing
         synergies  and  certain  back  office  operations  and the  reduction  of
         corporate overhead.  There can be no assurance that anticipated operating
         cost savings will be achieved.
  
                                         31
  ITEM 7(c).  FINANCIAL STATEMENTS AND EXHIBITS, Continued
  
              Exhibits - None
  
                                         32
  SIGNATURE
  
            Pursuant to the  requirements of the Securities  Exchange Act of 1934,
  the  registrant  has duly  caused  this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  
                                        CONSECO, INC.
  
  DATE:  July 13, 1998                  By:  /s/ ROLLIN M. DICK
                                             ----------------------------------
                                             Name:  Rollin M. Dick
                                             Title: Executive Vice President
                                                    and Chief Financial Officer
  
                                         33