Carmel-based CNO Financial sees profit soar in third quarter

  • Comments
  • Print
Listen to this story

Subscriber Benefit

As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
This audio file is brought to you by
0:00
0:00
Loading audio file, please wait.
  • 0.25
  • 0.50
  • 0.75
  • 1.00
  • 1.25
  • 1.50
  • 1.75
  • 2.00

Carmel-based CNO Financial Group Inc. saw a sharp increase in profit during the third quarter, partly because its customers deferred seeking medical care and, as a result, submitted fewer health insurance claims.

CNO sells health and life insurance products through its three insurance brands: Bankers Life, Colonial Penn and Washington National.

The company this week reported a quarterly profit of $129.2 million, or 91 cents per share, up from $42 million, or 27 cents per  share, during the same period a year ago.

Quarterly net operating income, a metric that excludes certain items including investment gains and losses, was a record $112.6 million, or 79 cents per share, up from $69.2 million, or 45 cents per share, a year earlier.

“CNO generated record operating earnings in the third quarter, driven by fewer health claims due to the deferral of care, strong investment results and continued expense discipline,” CEO Gary C. Bhojwani said in a written statement.

The company said it expects claims activity to increase during the fourth quarter.

CNO’s financial performance has gone up and down since the pandemic first arrived earlier this year.

The company posted a $21.2 million loss during the first quarter, mostly because COVID-19 caused its investments to plunge in value. The company returned to profitability in the second quarter, posting a profit of $82 million.

Shares of CNO were trading at $19.07 late Thursday morning, up 54 cents from Wednesday’s close. Shares in the company have traded between $8.79 and $20.93 over the past 52 weeks.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our comment policy that will govern how comments are moderated.

One thought on “Carmel-based CNO Financial sees profit soar in third quarter

  1. What a truly wonderful system we have in our country for administering health care! Our beloved companies get to keep hundreds of millions of dollars in profit because people AREN’T getting the care they need. Good thing no socialist big government is standing between me and access to health care!
    Does anyone know how I can give even more of my money to my insurance company? They do so much for me, it just seems right.

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news. ONLY $1/week Subscribe Now

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In

Get the best of Indiana business news.

Limited-time introductory offer for new subscribers

ONLY $1/week

Cancel anytime

Subscribe Now

Already a paid subscriber? Log In