CNO Financial Group, Inc. The NOC will continue to build on its cost reduction measures, strong investments in advanced technology and strategic initiatives. This multi-line insurer also has an impressive portfolio of capital and investments.
The CNO has seen its profit estimates for 2021 and 2022 move 2% and 0.9% north over the past 60 days.
CNO Financial’s profits have even managed to beat estimates in three of its last four quarters (while missing the mark in one), the average beat being 13.2%.
Now let’s take a look at what makes this company currently Zacks Rank # 2 (Buy) an investor favorite.
CNO Financial is a leading holding company for a group of insurance companies operating in the United States, which develops, administers and markets health insurance, annuity, individual life insurance and other products. insurance products.
In the third quarter of 2021, its sales exceeded pre-pandemic levels in several areas. CNO Financial’s Worksite division is well positioned for growth through higher sales. It regularly benefits from its healthy income stream, deferred care across all healthcare lines, and strong alternative investment performance.
The NOC is also taking cost reduction initiatives. In 2019 and 2020, benefits and expenses decreased 18.3% and 7.1%, respectively, year over year. Despite the increase in spending in the first nine months of 2021, we expect it to decrease thanks to his measures. This, in turn, is likely to improve margins.
It has invested heavily in technology to improve agent productivity as well as sales and advertising. This, in turn, should enrich his online customer experience and improve the productivity of prospects, which is his priority. The CNO also presented its digital health insurance market myHealthPolicy.com, which is expected to strengthen its presence in the online health insurance market. With additional technology, CNO Financial also has access to employer partners.
Earlier this year, CNO Financial completed the acquisition of DirectPath to strengthen its portfolio in the Worksite division. The acquisition was made with the aim of strengthening CNO’s best-in-class employee benefits management services and improving its registration capabilities.
This player, currently Zacks Rank # 2 (Buy), has been increasing its quarterly dividend since 2013. It also deploys capital for share buyback programs. CNO Financial returned $ 131.3 million to its shareholders through a combination of share buybacks and dividends in the third quarter. In May of this year, management increased its dividend by 8%. You can see The full list of today’s Zacks # 1 Rank stocks here.
More upside down to the left?
CNO Financial is also poised to experience long-term growth thanks to a strong performance in alternative investments, product and service launches and strong contributions from its Consumer division.
The stock carries a VGM score of B. Here, V represents the value, G the growth and M the dynamics, the score being a weighted combination of the three factors.
CNO shares gained 8.5% in one year, outperforming its industrygrowth of 4.1%.
Image source: Zacks Investment Research
Other actions to consider
Some other top-ranked stocks in insurance are Aflac Incorporated AFL, International Society of the Former Republic ORI and Brighthouse Financial, Inc. BHF. While ORI sports a Zacks Rank # 1 (strong buy), AFL and BHF currently hold a Zacks Rank # 2 (buy).
Aflac is a general holding company which oversees the operations of its subsidiaries by providing management services and making capital available. The AFL presented a surprise of 18.3% on average over the last four quarters.
Old Republic International Corporation is an insurance holding company. Its subsidiaries actively market, underwrite and provide risk management services for a wide variety of coverages, primarily in the areas of general insurance and title insurance. ORI’s profits have managed to beat estimates in its last four quarters, averaging 54.6%.
Brighthouse Financial is a holding company formed to own the legal entities that historically managed a substantial portion of the former Retail segment of MetLife, Inc. BHF has recorded a surprise of 67.6% on average over the past four quarters.
Shares of AFL, ORI and BHF have each gained 31.7%, 24.8% and 43.8% in the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.