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CNO Financial's (CNO) Q4 Earnings Miss Estimates, Rise Y/Y

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CNO Financial Group, Inc.’s CNO fourth-quarter 2020 adjusted earnings per share of 57 cents missed the Zacks Consensus Estimate of 58 cents by 1.7%. Nevertheless, the bottom line improved 21.3% year over year.

The company’s results benefited from higher revenues and reduced costs.

Moreover, the company’s total revenues inched up 0.7% year over year to $1.07 billion, driven by higher insurance policy income, improved general account sales, etc. The top line also outpaced the consensus mark by 26.7%.

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 6% year over year to $345 million.

New annualized premiums for life and health products were $86.2 million, down 12% from the year-ago period.

Net investment income for the fourth quarter was up 13% year over year.

Total insurance policy income inched up 0.9% year over year to $629 million.

Total benefits and expenses fell 3% year over year to $932.7 million, primarily on account of lower insurance policy benefits, interest expense.

Financial Update

Unrestricted cash and cash equivalents were $937.8 million as of Dec 31, 2020, up 61.7% from the level at 2019 end.

As of Dec 31, 2020, total assets were $35.4 billion, up 5.1% from the level at 2019 end.

Total shareholders’ equity of $5.4 billion as of Dec 31, 2020 increased 17.3% from the 2019-end level.

Debt-to-capital was 17.2% as of Dec 31, 2020 compared with 17.5% at 2019 end.

Securities Repurchase and Dividend Update

In the fourth quarter, the company returned $116.6 million in the form of share buybacks worth $100 million and dividends of $16.6 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.

Full-Year Update

For 2020, net operating income came in at $2.53, up 37% year over year. The figure also compared favorably with the Zacks Consensus Estimate of $2.51.

Total revenues for 2020 stood at $3.8 billion, down 4.8% year over year.
Operating ROE for 2020 was 12.9%.

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 fourth-quarter results so far, The Travelers Companies, Inc. TRV, W.R. Berkley Corporation WRB and Brown & Brown, Inc. BRO beat on earnings.

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