We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Key Highlights From CNO Financial's (CNO) Optavise Report
Read MoreHide Full Article
CNO Financial Group, Inc.’s (CNO - Free Report) worksite brand, Optavise, released its 2024 Annual Benefits Broker Report. Per the report titled Government Mandates Take Center Stage: Unveiling the Dominant Market Force for Benefits Brokers, employers are consistent in obtaining aid from broker partners for innovative ideas, managing rising healthcare costs and compliance, and regulatory issues.
Optavise surveyed 70 U.S. health insurance brokers, wherein most brokers (81%) serve in the mid-market space. Per the report, 69% of brokers mentioned the constantly changing state and federal mandates, leading them to innovate new products and offerings. 44% of brokers pointed out that compliance issues are the top requirement of employers who request their services.
Optavise provides compliance communications, benefits administration and voluntary benefits services among others. The increasing reliance on benefits companies, for the above-mentioned requirements, bodes well for CNO’s Optavise business. Growing fee income from these services is expected to drive earnings growth for CNO in the future. CNO expects that there is a huge opportunity to extract more value in its worksite fee business.
77% of employers are interested in managing their healthcare costs through prescription drug management programs. Employers are also relying on brokers for shifting to or from self-insured coverage, applying point solutions and adding clinical advocacy. Voluntary benefits provide significant value to employers and help in retaining and attracting talent. The number of employers who added voluntary benefits is continuing to increase, from 64% in 2023 to 73%. Top voluntary products include accident, critical illness and hospital indemnity among others.
57% of clients seek support from their brokers regarding benefits communications, up from 49% in 2023. 96% of brokers offer enrollment guides and brochures, 91% offer virtual communications support, 94% offer communication related to compliance and 90% give in-person support. Better engagement of employees in benefits programs will lead to increased satisfaction for employees and reduced employer costs. Rising demand for such services should lead to improved business of CNO’s worksite brand Optavise.
Zacks Rank & Price Performance
CNO Financial currently sports a Zacks Rank #1 (Strong Buy). CNO shares have gained 13.4% in the past six months compared with the industry’s 17.3% rise.
Image Source: Zacks Investment Research
Stocks to Consider
Some other top-ranked stocks in the insurance space are Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) , Erie Indemnity Company (ERIE - Free Report) and Assurant, Inc. (AIZ - Free Report) . Skyward Specialty sports a Zacks Rank #1 (Strong Buy), and Erie Indemnity and Assurant carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skyward Specialty’s earnings surpassed estimates in each of the last four quarters, the average surprise being 32.04%. The Zacks Consensus Estimate for SKWD’s 2024 earnings indicates a 24.6% rise, while the consensus mark for revenues suggests an improvement of 20.4% from the respective prior-year tallies.
The consensus mark for SKWD’s 2024 earnings has moved 8.2% north in the past 30 days.
Erie Indemnity’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests an improvement of 11.4% from the respective prior-year reported figures.
The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.
Assurant’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates a 3.4% rise, while the same for revenues suggests an improvement of 4.1% from the respective prior-year reported figures.
The consensus mark for AIZ’s 2024 earnings has moved up 1.4% in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Key Highlights From CNO Financial's (CNO) Optavise Report
CNO Financial Group, Inc.’s (CNO - Free Report) worksite brand, Optavise, released its 2024 Annual Benefits Broker Report. Per the report titled Government Mandates Take Center Stage: Unveiling the Dominant Market Force for Benefits Brokers, employers are consistent in obtaining aid from broker partners for innovative ideas, managing rising healthcare costs and compliance, and regulatory issues.
Optavise surveyed 70 U.S. health insurance brokers, wherein most brokers (81%) serve in the mid-market space. Per the report, 69% of brokers mentioned the constantly changing state and federal mandates, leading them to innovate new products and offerings. 44% of brokers pointed out that compliance issues are the top requirement of employers who request their services.
Optavise provides compliance communications, benefits administration and voluntary benefits services among others. The increasing reliance on benefits companies, for the above-mentioned requirements, bodes well for CNO’s Optavise business. Growing fee income from these services is expected to drive earnings growth for CNO in the future. CNO expects that there is a huge opportunity to extract more value in its worksite fee business.
77% of employers are interested in managing their healthcare costs through prescription drug management programs. Employers are also relying on brokers for shifting to or from self-insured coverage, applying point solutions and adding clinical advocacy. Voluntary benefits provide significant value to employers and help in retaining and attracting talent. The number of employers who added voluntary benefits is continuing to increase, from 64% in 2023 to 73%. Top voluntary products include accident, critical illness and hospital indemnity among others.
57% of clients seek support from their brokers regarding benefits communications, up from 49% in 2023. 96% of brokers offer enrollment guides and brochures, 91% offer virtual communications support, 94% offer communication related to compliance and 90% give in-person support. Better engagement of employees in benefits programs will lead to increased satisfaction for employees and reduced employer costs. Rising demand for such services should lead to improved business of CNO’s worksite brand Optavise.
Zacks Rank & Price Performance
CNO Financial currently sports a Zacks Rank #1 (Strong Buy). CNO shares have gained 13.4% in the past six months compared with the industry’s 17.3% rise.
Image Source: Zacks Investment Research
Stocks to Consider
Some other top-ranked stocks in the insurance space are Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) , Erie Indemnity Company (ERIE - Free Report) and Assurant, Inc. (AIZ - Free Report) . Skyward Specialty sports a Zacks Rank #1 (Strong Buy), and Erie Indemnity and Assurant carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skyward Specialty’s earnings surpassed estimates in each of the last four quarters, the average surprise being 32.04%. The Zacks Consensus Estimate for SKWD’s 2024 earnings indicates a 24.6% rise, while the consensus mark for revenues suggests an improvement of 20.4% from the respective prior-year tallies.
The consensus mark for SKWD’s 2024 earnings has moved 8.2% north in the past 30 days.
Erie Indemnity’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 11.24%. The Zacks Consensus Estimate for ERIE’s 2024 earnings indicates an 18.3% rise, while the same for revenues suggests an improvement of 11.4% from the respective prior-year reported figures.
The consensus mark for ERIE’s 2024 earnings has moved 2.4% north in the past 30 days.
Assurant’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 42.15%. The Zacks Consensus Estimate for AIZ’s 2024 earnings indicates a 3.4% rise, while the same for revenues suggests an improvement of 4.1% from the respective prior-year reported figures.
The consensus mark for AIZ’s 2024 earnings has moved up 1.4% in the past 30 days.