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CNO Financial (CNO) Q1 Earnings Lag Estimates, Down Y/Y

CNO Financial Group, Inc.’s CNO reported first-quarter 2019 adjusted earnings per share of 41 cents missed the Zacks Consensus Estimate by 12.8%. Also, the bottom line declined 6.8% year over year. The company’s performance was negatively impacted by its Long-term care segment.

However, in the quarter under review, CNO Financial’s total revenues increased 1.5% year over year to $1023 million. Moreover, the bottom line surpassed the Zacks Consensus Estimate by 6.8%, mainly owing to total realized gain as well as fee revenues and other income.

Quarterly Operational Update

Total collected premiums were $945 million, up 1.4% from the prior-year quarter’s level, mainly driven by Bankers Life segment.

New annualized premiums for life and health products amounted to $79.8 million, up 2.2% from the year-ago period.

First-year collected premiums totaled $391.5 million, up 18% from the year-earlier quarter’s tally, primarily banking on the contribution from Bankers Life segment.

CNO Financial Group, Inc. Price, Consensus and EPS Surprise

Quarterly Segment Update

Bankers Life

Total collected premiums were $683.9 million, up 9% year over year, mainly aided by annuity.

New annualized premiums for life and health products decreased 6.2% year over year to $33.5 million.

In the third quarter of 2018, the company ceded the Bankers Life legacy long-term care business under a 100% indemnity coinsurance agreement.

Washington National

Total collected premiums of $176.8 million were up marginally 0.3% year over year.

New Annualized premiums from life and health products were $23.9 million, up 0.4% from the year-ago quarter’s figure.

Colonial Penn

Total collected premiums were $77.2 million, up 2.5% year over year.

New annualized premiums were $22.4 million, up 20.4% from the amount recorded in the comparable quarter last year.

Long-Term Care in Run-Off

Total collected premiums were $3.6 million, down 92.7% year over year.
Deteriorating Financial Position

Unrestricted cash and investments held by CNO Financial’s holding company were $243 million as of Mar 31, 2019, up 3% from the level at 2018 end.

Debt-to-capital ratio was 19.3% as of Mar 31, 2019compared with 21.4% at 2018 end.

Acquisition Update

During the quarter under review, the company completed the buyout of Web Benefits Design.

Securities Repurchase and Divided Update

During the first quarter, the company bought back shares worth $47 million.
Dividends paid on common stock totaled $16.4 million in the same period.

Zacks Rank and Performance of Other Players

CNO Financial carries a Zacks Rank #4 (Sell).

You can see _1link">the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the insurance industry having reported first-quarter earnings so far, the bottom-line numbers of The Travelers Companies, Inc. TRV, Cincinnati Financial Corporation CINF and The Progressive Corporation PGR surpassed the respective Zacks Consensus Estimate.

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