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CNO Financial's (CNO) Q3 Earnings Beat, Revenues Up Y/Y
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CNO Financial Group, Inc.’s (CNO - Free Report) third-quarter 2020 adjusted earnings per share of 79 cents beat the Zacks Consensus Estimate by 71.7%. The bottom line also improved 76% year over year.
The company’s results have benefited from higher revenues, reduced costs and improved margin in health insurance products, partly offset by fall in annuity collected premiums.
Moreover, the company’s total revenues increased 7.4% year over year to $1.01 billion driven by higher insurance policy income, improved income from policyholder and other special-purpose portfolios, and enhanced fee revenue and other income. The top line also outpaced the consensus mark by 18%.
Quarterly Operational Update
Annuity collected premiums declined 12% year over year to $285.1 million due to pricing discipline.
New annualized premiums for life and health products were $83.7 million, down 0.4% from the year-ago period.
Total insurance policy income inched up 1% year over year to $628.3 million.
Adjusted operating return on equity for the third quarter was 11.9%, expanding 130 basis points (bps) year over year.
Total benefits and expenses fell 4.9% year over year to $847.1 million, primarily on account of lower insurance policy benefits, interest expense, and other operating costs and expenses.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
Of the insurance industry players, which have reported third-quarter results so far, earnings of Old Republic International Corporation (ORI - Free Report) , W. R. Berkley Corporation (WRB - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate.
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CNO Financial's (CNO) Q3 Earnings Beat, Revenues Up Y/Y
CNO Financial Group, Inc.’s (CNO - Free Report) third-quarter 2020 adjusted earnings per share of 79 cents beat the Zacks Consensus Estimate by 71.7%. The bottom line also improved 76% year over year.
The company’s results have benefited from higher revenues, reduced costs and improved margin in health insurance products, partly offset by fall in annuity collected premiums.
Moreover, the company’s total revenues increased 7.4% year over year to $1.01 billion driven by higher insurance policy income, improved income from policyholder and other special-purpose portfolios, and enhanced fee revenue and other income. The top line also outpaced the consensus mark by 18%.
Quarterly Operational Update
Annuity collected premiums declined 12% year over year to $285.1 million due to pricing discipline.
New annualized premiums for life and health products were $83.7 million, down 0.4% from the year-ago period.
Total insurance policy income inched up 1% year over year to $628.3 million.
Adjusted operating return on equity for the third quarter was 11.9%, expanding 130 basis points (bps) year over year.
Total benefits and expenses fell 4.9% year over year to $847.1 million, primarily on account of lower insurance policy benefits, interest expense, and other operating costs and expenses.
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 $735.6 million as of Sep 30, 2020, up 26.8% from the level at 2019 end.
As of Sep 30, 2020, total assets were $34.6 billion, up 2.8% from the level at 2019 end.
Total shareholders’ equity of $5.1 billion as of Sep 30, 2020 increased 8.7% from the 2019-end level.
Debt-to-capital was 16.3% as of Sep 30, 2020 compared with 17.5% at 2019 end.
Securities Repurchase and Dividend Update
In the third quarter, the company returned $66.8 million in the form of share buybacks worth $50 million and dividends of $16.8 million.
Zacks Rank
CNO Financial 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, which have reported third-quarter results so far, earnings of Old Republic International Corporation (ORI - Free Report) , W. R. Berkley Corporation (WRB - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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