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CNO Financial's (CNO) Q3 Earnings Surpass Estimates, Drop Y/Y

CNO Financial's (CNO) third-quarter earnings gain from lower expenses, offset by weak revenues.

This story originally appeared on Zacks

CNO Financial Group, Inc. CNO reported third-quarter 2021 adjusted earnings per share of 72 cents, which outpaced the Zacks Consensus Estimate by 20% owing to lower expenses. The bottom line declined 8.9% year over year due to lower revenues.

Total revenues of $968 million declined 4.5% year over year in the quarter under review due to policyholder and other special-purpose portfolios and net realized investment gains.

- Zacks

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 Operational Update

Total insurance policy income inched up 0.4% year over year to $630.6 million in the third quarter.

Net investment income dropped 10.2% year over year.

Annuity collected premiums climbed 17% year over year to $333.3 million in the quarter under review.

New annualized premiums for life and health products of $84.6 million rose 1% from the year-ago period’s level.

Total benefits and expenses decreased 0.8% year over year to $840.3 million, primarily on the back of lower insurance policy benefits.

Financial Update

CNO Financial exited the third quarter with unrestricted cash and cash equivalents of $742.1 million, which declined 20.9% from the 2020-end level.

Total assets as of Sep 30, 2021 came in at $35.7 billion, which inched up 1.1% from the figure as of Dec 31, 2020.

At September-end, total shareholders’ equity dipped 4.6% from the 2020-end level to $5.2 billion.

Book value per share increased 15% year over year to $42.11 in the third quarter.

As of Sep 30, 2021, debt-to-capital ratio of 17.8% was higher than the 2020-end figure of 17.2%.

Share Repurchase and Dividend Update

The company rewarded its shareholders with share buybacks to the tune of $115 million and dividends worth $16.3 million during the third quarter.

Zacks Rank

CNO Financial currently 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 that have reported third-quarter results so far, the bottom-line results of The Travelers Companies, Inc. TRV, First American Financial Corporation FAF and RLI Corp. RLI beat the respective Zacks Consensus Estimate.


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