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CNO Financial's (CNO) Q3 Earnings Lag Estimates, Fall Y/Y

Zacks Equity Research

CNO Financial Group, Inc.’s CNO reported third-quarter 2019 adjusted earnings per share of 45 cents, missing the Zacks Consensus Estimate of 47 cents by 4.3%. The bottom line also declined 15.1% year over year, mainly due to lower revenues.

In the quarter under review, CNO Financial’s total revenues plunged 36.3% year over year to $944 million, mainly due to lower net investment income and no realized investment gains. However, the same beat the Zacks Consensus Estimate by 6.9%.

Quarterly Operational Update

Total collected premiums of $949.3 million were up 2.9% from the prior-year quarter’s level, mainly driven by Bankers Life segment.

New annualized premiums for life and health products amounted to $84 million, up 2.8% from the year-ago period.

First-year collected premiums of $405.3 million rose 16% from the year-earlier quarter, primarily banking on the contribution from Bankers Life segment.

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 Segment Update

Bankers Life


Total collected premiums of $692.8 million were up 9% year over year, aided by annuity.

New annualized premiums for life and health products were unchanged at $37.3 million.

Washington National

Total collected premiums of $176.1 million were up 5.1% year over year.

New Annualized premiums from life and health products were $27.5 million, up 8.7% from the year-ago quarter’s figure.

Colonial Penn

Total collected premiums were $77.1 million, up 4.2% year over year.

New annualized premiums from life and health products were $19.2 million, up 0.5% from the amount recorded in the comparable quarter last year.

Long-Term Care in Run-Off

Total collected premiums were $3.3 million, down 92.7% year over year.

The long-term care business was ceded under a 100% indemnity coinsurance agreement in the third quarter of 2018.

Financial Update

Unrestricted cash and investments held by CNO Financial’s holding company were $260 million as of Sep 30, 2019, up 18.2% from 2018 end.

Debt-to-capital ratio was 17.8% as of Sep 30, 2019 compared with 21.4% at the end of 2018.

Securities Repurchase and Divided Update

In the third quarter of 2019, the company returned shares worth $75.3 million and dividend payout of $16.8 million.

Zacks Rank and Performance of Other Insurers

CNO Financial carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the insurance industry, having reported third-quarter earnings so far, the bottom-line results of The Progressive Corporation PGR, MGIC Investment Corporation MTG and RLI Corp. RLI outpaced the respective Zacks Consensus Estimate.   

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CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
 
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