BTIG Downgrades CNO Financial Group (CNO) to Neutral
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BTIG downgraded CNO Financial Group (NYSE: CNO) from Buy to Neutral and removed its price target. Yesterday the company announced today that its subsidiaries, Bankers Conseco Life Insurance Company (BCLIC) and Washington National Insurance Company (WNIC), are terminating reinsurance agreements with Beechwood Re (BRe) and recapturing approximately $550 million of closed block long-term care liabilities.
Commenting on developments, analyst Mark Palmer said, "We are downgrading CNO Financial Group (CNO) to Neutral (from Buy) after the company yesterday disclosed through a regulatory filing that two of its subsidiaries would recapture a $550mm long term care (LTC) block reinsured by Beechwood Re (Private) that it expected would result in a $55mm after-tax charge. The action was taken after two state regulators said that many of the assets managed by Beechwood – in particular, its exposures to troubled hedge fund Platinum Partners – did not comply with insurance company guidelines."
Shares of CNO Financial Group closed at $15.55 yesterday.
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