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CNO Financial's (CNO) Q3 Earnings Surpass Estimates, Drop Y/Y

CNO Financial Group, Inc. CNO reported third-quarter 2021 adjusted earnings per share of 72 cents, which outpaced the Zacks Consensus Estimate by 20% owing to lower expenses. The bottom line declined 8.9% year over year due to lower revenues.

Total revenues of $968 million declined 4.5% year over year in the quarter under review due to policyholder and other special-purpose portfolios and net realized investment gains.

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

Total insurance policy income inched up 0.4% year over year to $630.6 million in the third quarter.

Net investment income dropped 10.2% year over year.

Annuity collected premiums climbed 17% year over year to $333.3 million in the quarter under review.

New annualized premiums for life and health products of $84.6 million rose 1% from the year-ago period’s level.

Total benefits and expenses decreased 0.8% year over year to $840.3 million, primarily on the back of lower insurance policy benefits.

Financial Update

CNO Financial exited the third quarter with unrestricted cash and cash equivalents of $742.1 million, which declined 20.9% from the 2020-end level.
Total assets as of Sep 30, 2021 came in at $35.7 billion, which inched up 1.1% from the figure as of Dec 31, 2020.

At September-end, total shareholders’ equity dipped 4.6% from the 2020-end level to $5.2 billion.

Book value per share increased 15% year over year to $42.11 in the third quarter.

As of Sep 30, 2021, debt-to-capital ratio of 17.8% was higher than the 2020-end figure of 17.2%.

Share Repurchase and Dividend Update

The company rewarded its shareholders with share buybacks to the tune of $115 million and dividends worth $16.3 million during the third quarter.

Zacks Rank

CNO Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Of the insurance industry players that have reported third-quarter results so far, the bottom-line results of The Travelers Companies, Inc. TRV, First American Financial Corporation FAF and RLI Corp. RLI beat the respective Zacks Consensus Estimate.

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