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CNO Financial's (CNO) Q2 Earnings Beat Estimates, Fall Y/Y
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CNO Financial Group, Inc.’s (CNO - Free Report) second-quarter 2020 adjusted earnings per share of 43 cents beat the Zacks Consensus Estimate by 30.3%. However, the bottom line declined 10.4% year over year on account of fall in annuity collected premiums and lower margin in life insurance products, partly offset by reduced costs.
Nevertheless, the company’s total revenues improved 3.5% year over year to $1.01 billion due to higher insurance policy income, improved income from policyholder and other special-purpose portfolios, and increased fee revenue and other income. The top line also outpaced the consensus mark by 23.4%.
Quarterly Operational Update
Annuity collected premiums plunged 29% year over year to $242.7 million due to pricing discipline.
New annualized premiums for life and health products were $69.4 million, down 19% from the year-ago period.
Total insurance policy income inched up 1% year over year to $625.3 million.
Operating return on equity for the second quarter was 10.5%, contracting 40 basis points (bps) year over year.
Total benefits and expenses fell 2.5% year over year to $908.8 million, primarily on account of lower insurance policy benefits and interest expense.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
Among other insurance industry players, which have reported second-quarter earnings so far, the bottom lines of Arch Capital Group Ltd. (ACGL - Free Report) , Markel Corporation (MKL - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the Zacks Consensus Estimate.
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CNO Financial's (CNO) Q2 Earnings Beat Estimates, Fall Y/Y
CNO Financial Group, Inc.’s (CNO - Free Report) second-quarter 2020 adjusted earnings per share of 43 cents beat the Zacks Consensus Estimate by 30.3%. However, the bottom line declined 10.4% year over year on account of fall in annuity collected premiums and lower margin in life insurance products, partly offset by reduced costs.
Nevertheless, the company’s total revenues improved 3.5% year over year to $1.01 billion due to higher insurance policy income, improved income from policyholder and other special-purpose portfolios, and increased fee revenue and other income. The top line also outpaced the consensus mark by 23.4%.
Quarterly Operational Update
Annuity collected premiums plunged 29% year over year to $242.7 million due to pricing discipline.
New annualized premiums for life and health products were $69.4 million, down 19% from the year-ago period.
Total insurance policy income inched up 1% year over year to $625.3 million.
Operating return on equity for the second quarter was 10.5%, contracting 40 basis points (bps) year over year.
Total benefits and expenses fell 2.5% year over year to $908.8 million, primarily on account of lower insurance policy benefits and interest expense.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
Financial Update
Unrestricted cash and cash equivalents held by CNO Financial were $521.1 million as of Jun 30, 2020, down 10.2% from the level at 2019 end.
As of Jun 30, 2020, total assets were $34 billion, up 1% from the level at 2019 end.
Debt-to-capital was 17.3% as of Jun 30, 2020 compared with 17.5% at 2019 end.
Securities Repurchase and Divided Update
In the second quarter, the company returned $47.4 million in the form of share buybacks and dividends.
Zacks Rank & Performance of Other 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 insurance industry players, which have reported second-quarter earnings so far, the bottom lines of Arch Capital Group Ltd. (ACGL - Free Report) , Markel Corporation (MKL - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) beat the Zacks Consensus Estimate.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>