UPDATE 2-Conseco posts Q1 profit, shares soar

* Q1 EPS $0.13 vs yr-ago loss $0.04/shr

* Oper profit $0.17/shr

* Shares up as much as 45 pct (Adds conference call details, background, updates share movement)

May 11 (Reuters) - Conseco Inc (CNO.N: Quote, Profile, Research), a Midwestern U.S. life and accident insurer, swung to a profit in the first quarter after posting seven consecutive quarterly losses, helped by profitability at all three of its insurance businesses.

Conseco, whose shares soared as much as 45 percent on the news, said first quarter was seasonally low for its earnings.

"Overall you should expect that less than 20 percent of annual operating earnings will occur in the first quarter," Chief Executive Jim Prieur said on a conference call.

The company said its overall liquidity improved during the first quarter with about $104 million at the holding company as of March 31.

"Our bank covenant debt to total capital ratio calculated excluding accumulated other comprehensive loss reduced slightly to 27.9 percent in March 31, compared to 28.3 percent at year end 2008," the company said on the call.

In March, the company had warned of a possible default under its credit facility if auditors raised doubts over its ability to continue as a going concern.