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CNO Financial (CNO) Unit Upgrades Medicare Supplement Plans

CNO Financial Group, Inc.’s CNO unit Bankers Life recently unveiled a suite of Medicare Supplement insurance plans to enable consumers to address their varied health needs, avoid unanticipated expenses and alleviate their financial burden. Underwritten by Washington National Insurance Company, the Medicare Supplement Plans A, F, G, High-G and N can be presently availed across 26 states.

Among the newly offered Medicare Supplement plans by the subsidiary of CNO Financial, Plan G and Plan N are the most popular ones. While Plan G is an all-inclusive plan extended to new Medicare beneficiaries, co-pays are linked with the alluring substitute to Medicare Advantage plans — Plan N.

The new plans can be issued to people aged 65 and more or to disabled individuals. The same can be availed by not only present beneficiaries but also by newly qualified Medicare individuals. However, in this regard, Plan F, which can only be availed by those who had qualified for Medicare before Jan 1, 2020, is an exception. Meanwhile, the plan rates will be quoted by the agents of Bankers Life through the online health insurance marketplace (myHealthPolicy.com) launched by CNO Financial back in 2020.

Apart from offering diversified health benefits, the plans will provide consumers an opportunity to utilize the traditional Medicare system for selecting doctors, specialists and hospitals of one’s own choice. It has to be noted that policy benefits might vary from state to state.

Initiatives similar to the latest one reinforce CNO Financial’s sincere efforts to extend upgraded and cost-effective Medicare Supplement plans for delivering the much-needed healthcare services. Simultaneously, the move intends to take care of the financial position of the members amid escalating healthcare costs.

With Bankers Life agents distributing such enhanced Medicare Supplement offerings, it is expected to boost the fee income of the parent company CNO Financial. Fee income is usually received by CNO Financial from the plans sold via distribution channels, and better performance of the metric, which contributes to the top line, is likely to bolster revenues of the multiline insurer.

CNO Financial boasts of a well-diversified product portfolio comprising life, fixed annuities, Medicare supplement, supplemental health and limited benefit duration long-term care. A diversified portfolio allows CNO to manage risks effectively. The products usually bear the low risk and provide assurance of addressing the insurance needs of Americans as they near or attain the age of retirement. CNO Financial keeps on launching solutions that tend to grow the asset value of clients and simultaneously take care of their escalating healthcare costs.

Shares of CNO Financial have lost 14.8% in the past six months against the industry’s rally of 2.2%.

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CNO currently has a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Some better-ranked stocks in the insurance space include United Fire Group, Inc. UFCS, Kinsale Capital Group, Inc. KNSL and W. R. Berkley Corporation WRB. While United Fire Group sports a Zacks Rank #1 (Strong Buy), Kinsale Capital and W.R. Berkley carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

United Fire Group’s earnings surpassed estimates in three of the trailing four quarters and met once, the average surprise being 270.83%. The Zacks Consensus Estimate for UFCS’s 2022 earnings suggests 46.2% year-over-year growth. The consensus mark for United Fire Group’s 2022 earnings has moved north by 23.5% in the past 30 days.

The bottom line of Kinsale Capital outpaced earnings estimates in each of the last four quarters, the average surprise being 26.43%. The Zacks Consensus Estimate for KNSL’s 2022 earnings suggests 18.3% year-over-year growth, while the same for revenues indicates an improvement of 24.8%. The consensus mark for Kinsale Capital’s 2022 earnings indicates a 2.6% north in the past 60 days.

W.R. Berkley’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.08%. The Zacks Consensus Estimate for WRB’s 2022 earnings and revenues suggests a rise of 15% and 14.4%, respectively, from the prior-year reported figures. The consensus mark for W.R. Berkley’s 2022 earnings has moved 8% north in the past 60 days.

Shares of United Fire Group, Kinsale Capital and W.R. Berkley have gained 45.3%, 10.8%, and 31.9%, respectively, over the past six months.

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