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CNO Financial's (CNO) Q1 Earnings Beat Estimates, Fall Y/Y

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CNO Financial Group, Inc.’s (CNO - Free Report) first-quarter 2021 adjusted earnings per share of 55 cents beat the Zacks Consensus Estimate of 49 cents by 12.2% on the back of better revenues. However, the bottom line declined 5.2% year over year.

The company’s total revenues soared 40.3% year over year to $1 billion, driven by higher insurance policy income, change in allowance for credit losses and other-than-temporary impairment losses, etc. The top line also outpaced the consensus mark by 18.4%.

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

Annuity collected premiums increased 11% year over year to $325.4 million.

New annualized premiums for life and health products were $88.7 million, up 4% from the year-ago period.

Net investment income for the first quarter was up 99% year over year.
Total insurance policy income inched up 1% year over year to $632.4 million.

Total benefits and expenses rose 3.5% year over year to $816 million, primarily due to operating costs and expenses and amortization costs.

Financial Update

Unrestricted cash and cash equivalents were $324 million as of Mar 31, 2021, down 16.5% from the level at 2020 end.

As of Mar 31, 2021, total assets were $34.6 billion, down 1.9% from the level at 2020 end.

Total shareholders’ equity of $4.8 billion as of Mar 31, 2021 decreased 11.4% from the 2020-end level.

Debt-to-capital was 19% as of Mar 31, 2021 compared with 17.2% at 2020 end.

Securities Repurchase and Dividend Update

In the first quarter, the company returned $116.3 million in the form of share buybacks worth $100 million and dividends of $16.3 million.

Business Update

The company closed its buyout of DirectPath, LLC, which is a leading national provider of employee benefits management services to both employers and employees.

Zacks Rank and Performance of Other Insurers

CNO Financial carries a Zacks Rank #3 (Hold), currently. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Of the insurance industry players that have reported first-quarter results so far, earnings of  The Travelers Companies, Inc.  (TRV - Free Report) ,  W.R. Berkley Corporation  (WRB - Free Report) and  Brown & Brown, Inc.  (BRO - Free Report) beat the respective Zacks Consensus Estimate.

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