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CNO Financial's (CNO) Q1 Earnings Beat Estimates, Fall Y/Y

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CNO Financial Group, Inc.’s CNO first-quarter 2021 adjusted earnings per share of 55 cents beat the Zacks Consensus Estimate of 49 cents by 12.2% on the back of better revenues. However, the bottom line declined 5.2% year over year.

The company’s total revenues soared 40.3% year over year to $1 billion, driven by higher insurance policy income, change in allowance for credit losses and other-than-temporary impairment losses, etc. The top line also outpaced the consensus mark by 18.4%.

CNO Financial Group, Inc. Price, Consensus and EPS Surprise

CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. Price, Consensus and EPS Surprise

CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote

Quarterly Operational Update

Annuity collected premiums increased 11% year over year to $325.4 million.

New annualized premiums for life and health products were $88.7 million, up 4% from the year-ago period.

Net investment income for the first quarter was up 99% year over year.
Total insurance policy income inched up 1% year over year to $632.4 million.

Total benefits and expenses rose 3.5% year over year to $816 million, primarily due to operating costs and expenses and amortization costs.

Financial Update

Unrestricted cash and cash equivalents were $324 million as of Mar 31, 2021, down 16.5% from the level at 2020 end.

As of Mar 31, 2021, total assets were $34.6 billion, down 1.9% from the level at 2020 end.

Total shareholders’ equity of $4.8 billion as of Mar 31, 2021 decreased 11.4% from the 2020-end level.

Debt-to-capital was 19% as of Mar 31, 2021 compared with 17.2% at 2020 end.

Securities Repurchase and Dividend Update

In the first quarter, the company returned $116.3 million in the form of share buybacks worth $100 million and dividends of $16.3 million.

Business Update

The company closed its buyout of DirectPath, LLC, which is a leading national provider of employee benefits management services to both employers and employees.

Zacks Rank and Performance of Other Insurers

CNO Financial carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the insurance industry players that have reported first-quarter results so far, earnings of The Travelers Companies, Inc. TRV, W.R. Berkley Corporation WRB and Brown & Brown, Inc. BRO beat the respective Zacks Consensus Estimate.

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