NEW YORK (AP) -- Shares in Conseco Inc. fell sharply Wednesday after Credit Suisse downgraded the insurer on concerns it faces higher risks and lower equity returns.

Conseco shares fell 57 cents, or 4.7 percent, to $11.45. The stock has traded between $9.79 and $21.25 in the past year.

Analyst Thomas Gallagher cut the stock to "neutral" and lowered his price target to $14 from $20.50. He said the company's health insurance faces a greater likelihood of increased claims because it serves an aging group of customers. There has also been an increase in claims related to cognitive diseases such as Alzheimer's.

"The trend of earlier diagnosis of Alzheimer's disease, increased longevity, and a substantial increase in incidence at older ages should all serve to elevate cognitive claim costs," he wrote in a note.

He also pointed out that the turbulent stock markets, which have fallen sharply so far in 2008, will cut into investment earnings.

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