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CNO Financial's (CNO) Q2 Earnings Meet Estimates, Fall Y/Y

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CNO Financial Group, Inc. (CNO - Free Report) reported second-quarter 2018 adjusted earnings per share of 48 cents, in line with the Zacks Consensus Estimate. Meanwhile, the bottom line dipped 2% year over year, mainly due to lower revenues.

Further, in the quarter under review, CNO Financial’s total revenues declined 6.3% year over year to $980 million, mainly due to lower insurance policy income and net investment income. However, the metric beat the Zacks Consensus Estimate by 6.9%.

Quarterly Operational Update

Total collected premiums were $962.2 million, up 1.5% from the prior-year quarter’s level, mainly driven by Bankers Life segment.

New annualized premiums for life and health products amounted to $85.2 million, up 4.2% from the year-ago period.

First-year collected premiums totaled $421 million, up 22% from the year-earlier quarter’s tally, primarily banking on the contribution by Bankers Life segment.

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 Segment Update

Bankers Life


Total collected premiums were $705.2 million, up 8% year over year, aided by annuity.

New annualized premiums for life and health products increased 1.3% year over year to $39.4 million.

Washington National

Total collected premiums of $176.9 million were up 4.6% year over year.

New Annualized premiums from life and health products were $26.2 million, up 0.7% from the year-ago figure.

Colonial Penn

Total collected premiums were $76.7 million, up 4% year over year.

New annualized premiums were $19.6 million, up 16% from the amount recorded in the comparable quarter last year.

Long-Term Care in Run-Off

Total collected premiums were $3.4 million, down 92.8% year over year.

The long-term care business was ceded under a 100% indemnity coinsurance agreement in the third quarter of 2018.

Financial Update

Unrestricted cash and investments held by CNO Financial’s holding company were $264 million as of Jun 30, 2019, up 20% from 2018 end.

Debt-to-capital ratio was 18.9% as of Jun 30, 2019 compared with 21.4% at the end of 2018.

Securities Repurchase and Divided Update

In the second quarter of 2019, the company returned shares worth $72.4 million and dividend worth $17.4 million.

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.

Of the insurance industry players that have already reported second-quarter results, the bottom-line figures of The Progressive Corporation (PGR - Free Report) and RLI Corp. (RLI - Free Report) beat the respective Zacks Consensus Estimate. However, The Travelers Companies, Inc.’s (TRV - Free Report) earnings missed the same.

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