CNO Financial Group (CNO) Misses Q4 EPS by 14c, Revenues Miss

CNO Financial Group (NYSE: CNO) reported Q4 EPS of $0.36, $0.14 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $616.5 million versus the consensus estimate of $981.9 million.

Fourth Quarter 2018 Highlights:

• First-year collected premiums: $435.3 million, up 22% from 4Q17
• Total collected premiums: $987.3 million, up 5% from 4Q17
• New annualized premium (\"NAP\") (2) for life and health products: $89.6 million, up 5% from 4Q17
• Over 25,000 third party Medicare Advantage policies sold, up 34% from 4Q17
• Annuity collected premiums: $354.5 million, up 30% from 4Q17
• Annuity account values: $8.9 billion, up 5% from 4Q17
• Net income (loss): $28.3 million in 4Q18 compared to $(70.9) million in 4Q17
• Net income (loss) per diluted share: 17 cents in 4Q18 compared to (42) cents in 4Q17
• Net operating income (1) per diluted share: 36 cents in 4Q18 compared to 51 cents in 4Q17
• Book value per common share was $20.78 at December 31, 2018 compared to $29.05 at December 31, 2017
• Book value per diluted share, excluding accumulated other comprehensive income (loss) (3), was $19.52 at December 31, 2018 compared to $21.43 at December 31, 2017
• Unrestricted cash and investments held by our holding company were $220 million at December 31, 2018 compared to $397 million at December 31, 2017
• Common stock repurchases of $40.4 million and common stock dividends of $16.4 million in 4Q18

"CNO reported strong sales and collected premiums in the quarter, as growth initiatives implemented in our operating businesses over the past several quarters continue to yield positive results," said Gary C. Bhojwani, chief executive officer. "Our first-year collected premiums increased 22% to $435.3 million in the quarter, including a 30% increase in annuity collected premiums."

"We remain committed to deploying excess capital to its highest and best use. Even after funding the previously announced long-term care risk reduction transaction in 3Q18, we returned $57 million to shareholders in the form of dividends and share repurchases in 4Q18. During 2018, we returned $166 million to shareholders."

"Financial market volatility, tax reform and the long-term care reinsurance transaction significantly impacted the comparability of the 2018 and 2017 periods. Recurring operating measures remain strong, with all five of our growth scorecard metrics up in 4Q18."

For earnings history and earnings-related data on CNO Financial Group (CNO) click here.

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