CNO Financial Group, Inc.
CNO reported second-quarter 2018 adjusted earnings per share of 48 cents, in line with the Zacks Consensus Estimate. Meanwhile, the bottom line dipped 2% year over year, mainly due to lower revenues.
Further, in the quarter under review, CNO Financial’s total revenues declined 6.3% year over year to $980 million, mainly due to lower insurance policy income and net investment income. However, the metric beat the Zacks Consensus Estimate by 6.9%.
Quarterly Operational Update
Total collected premiums were $962.2 million, up 1.5% from the prior-year quarter’s level, mainly driven by Bankers Life segment.
New annualized premiums for life and health products amounted to $85.2 million, up 4.2% from the year-ago period.
First-year collected premiums totaled $421 million, up 22% from the year-earlier quarter’s tally, primarily banking on the contribution by Bankers Life segment.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
Quarterly Segment Update
Total collected premiums were $705.2 million, up 8% year over year, aided by annuity.
New annualized premiums for life and health products increased 1.3% year over year to $39.4 million.
Total collected premiums of $176.9 million were up 4.6% year over year.
New Annualized premiums from life and health products were $26.2 million, up 0.7% from the year-ago figure.
Total collected premiums were $76.7 million, up 4% year over year.
New annualized premiums were $19.6 million, up 16% from the amount recorded in the comparable quarter last year.
Long-Term Care in Run-Off
Total collected premiums were $3.4 million, down 92.8% year over year.
The long-term care business was ceded under a 100% indemnity coinsurance agreement in the third quarter of 2018.
Unrestricted cash and investments held by CNO Financial’s holding company were $264 million as of Jun 30, 2019, up 20% from 2018 end.
Debt-to-capital ratio was 18.9% as of Jun 30, 2019 compared with 21.4% at the end of 2018.
Securities Repurchase and Divided Update
In the second quarter of 2019, the company returned shares worth $72.4 million and dividend worth $17.4 million.
Zacks Rank and Performance of Other Multiline Insurers
CNO Financial carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Of the insurance industry players that have already reported second-quarter results, the bottom-line figures of The Progressive Corporation PGR and RLI Corp. RLI beat the respective Zacks Consensus Estimate. However, The Travelers Companies, Inc.’s TRV earnings missed the same.
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