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CNO Financial's (CNO) Q2 Earnings Miss Estimates, Up Y/Y
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CNO Financial Group, Inc.’s (CNO - Free Report) second-quarter 2018 adjusted earnings of 49 cents per share missed the Zacks Consensus Estimate of 51 cents. However, the bottom line improved 8.9% year over year, mainly driven by the Bankers Life segment.
CNO Financial’s total revenues slipped 1% year over year to $1,046.3 million in the reported quarter. However, the top line slightly surpassed the Zacks Consensus Estimate by 1.5%.
Quarterly Operational Update
Total collected premiums were $947.6 million, up 2% from the prior-year quarter’s level mainly driven by Bankers Life segment.
New annualized premiums for life and health products amounted to $81.8 million, down 0.1% from the year-ago period.
First-year collected premiums totaled $369 million, up 5% from the year-earlier quarter’s tally, primarily because of the contribution by Bankers Life segment.
Quarterly Segment Update
Bankers Life
Total collected premiums were $697 million, up 2% year over year, driven by strong sales and persistency.
New annualized premiums for life and health products decreased 3% year over year to $38.9 million.
Washington National
Total collected premiums of $172.8 were up 3% year over year.
New Annualized premiums from life and health products were $26 million, up 2% from the year-ago quarter’s figure.
Pretax operating earnings were up 8% compared with the prior-year quarter’s count.
Colonial Penn
Total collected premiums were $73.8 million, up 1% year over year.
New annualized premiums were $16.9 million, up 5% from the amount recorded in the comparable quarter last year.
The pretax earnings were $5.4 million, lower than $8 million in the year-ago period, reflecting higher market expenditure in the second quarter of 2018.
Long-Term Care in Run-Off
Total collected premiums were $4 million, down 9% year over year.
The long-term care business was recaptured in September 2016 and the segment recognized pretax earnings of $3.1 million in the quarter under review. Meanwhile, the figure soared 82% year over year.
The company expects this segment to report normalized earnings before net realized investment gains (losses) of approximately breakeven over the long term. However, this segment’s quarterly results can be volatile.
Corporate Operations
The segment includes performance of the investment advisory subsidiary and corporate expenses.
Pretax loss of $14 million in the second quarter was wider than $13.2 million incurred in the year-ago quarter, mainly due to lower investment returns, offset by lower expenses.
Financial Update
Unrestricted cash and investments held by CNO Financial’s holding company were $376 million as of Jun 30, 2018, down 5.2% from the level at year-end 2017.
Debt-to-capital ratio was 17.1% as of Jun 30, 2018 compared with 15.9% at the end of 2017.
Securities Repurchase and Divided Update
During the second quarter, the company bought back common stock worth $60.5 million under authorization program. Additionally, it repurchased 3 million common shares at an average cost of $20.18 per share.
Dividends paid on common stock totaled $16.5 million in the same period.
Zacks Rank and Performance of Other Multiline Insurers
Among other players from the insurance industry having reported second-quarter earnings so far, earnings of MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate while the bottom line of Brown & Brown, Inc. (BRO - Free Report) missed the same.
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CNO Financial's (CNO) Q2 Earnings Miss Estimates, Up Y/Y
CNO Financial Group, Inc.’s (CNO - Free Report) second-quarter 2018 adjusted earnings of 49 cents per share missed the Zacks Consensus Estimate of 51 cents. However, the bottom line improved 8.9% year over year, mainly driven by the Bankers Life segment.
CNO Financial Group, Inc. Price and EPS Surprise
CNO Financial Group, Inc. Price and EPS Surprise | CNO Financial Group, Inc. Quote
CNO Financial’s total revenues slipped 1% year over year to $1,046.3 million in the reported quarter. However, the top line slightly surpassed the Zacks Consensus Estimate by 1.5%.
Quarterly Operational Update
Total collected premiums were $947.6 million, up 2% from the prior-year quarter’s level mainly driven by Bankers Life segment.
New annualized premiums for life and health products amounted to $81.8 million, down 0.1% from the year-ago period.
First-year collected premiums totaled $369 million, up 5% from the year-earlier quarter’s tally, primarily because of the contribution by Bankers Life segment.
Quarterly Segment Update
Bankers Life
Total collected premiums were $697 million, up 2% year over year, driven by strong sales and persistency.
New annualized premiums for life and health products decreased 3% year over year to $38.9 million.
Washington National
Total collected premiums of $172.8 were up 3% year over year.
New Annualized premiums from life and health products were $26 million, up 2% from the year-ago quarter’s figure.
Pretax operating earnings were up 8% compared with the prior-year quarter’s count.
Colonial Penn
Total collected premiums were $73.8 million, up 1% year over year.
New annualized premiums were $16.9 million, up 5% from the amount recorded in the comparable quarter last year.
The pretax earnings were $5.4 million, lower than $8 million in the year-ago period, reflecting higher market expenditure in the second quarter of 2018.
Long-Term Care in Run-Off
Total collected premiums were $4 million, down 9% year over year.
The long-term care business was recaptured in September 2016 and the segment recognized pretax earnings of $3.1 million in the quarter under review. Meanwhile, the figure soared 82% year over year.
The company expects this segment to report normalized earnings before net realized investment gains (losses) of approximately breakeven over the long term. However, this segment’s quarterly results can be volatile.
Corporate Operations
The segment includes performance of the investment advisory subsidiary and corporate expenses.
Pretax loss of $14 million in the second quarter was wider than $13.2 million incurred in the year-ago quarter, mainly due to lower investment returns, offset by lower expenses.
Financial Update
Unrestricted cash and investments held by CNO Financial’s holding company were $376 million as of Jun 30, 2018, down 5.2% from the level at year-end 2017.
Debt-to-capital ratio was 17.1% as of Jun 30, 2018 compared with 15.9% at the end of 2017.
Securities Repurchase and Divided Update
During the second quarter, the company bought back common stock worth $60.5 million under authorization program. Additionally, it repurchased 3 million common shares at an average cost of $20.18 per share.
Dividends paid on common stock totaled $16.5 million in the same period.
Zacks Rank and Performance of Other Multiline Insurers
CNO Financial carries a Zacks Rank #3 (Hold). 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 second-quarter earnings so far, earnings of MGIC Investment Corporation (MTG - Free Report) and The Progressive Corporation (PGR - Free Report) beat the respective Zacks Consensus Estimate while the bottom line of Brown & Brown, Inc. (BRO - Free Report) missed the same.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>