IBJNews

CNO Financial earnings fall on recapitalization charge

Back to TopCommentsE-mailPrintBookmark and Share

Carmel-based CNO Financial Group on Monday reported a third-quarter loss of $5 million, or 2 cents a share, compared to a $179.5 million, or 61 cent-per-share, profit in the third quarter of 2011.

Earnings were hurt mostly by a $176.4 million after-tax charge related to refinancing of debt earlier this year.

Revenue rose to nearly $1.1 billion, up from $992.3 million in last year's third quarter.

“Our recently completed recapitalization further strengthened our balance sheet, while increasing financial flexibility and lowering our ongoing costs,” said CEO Ed Bonach in a prepared statement.

CNO, the parent of insurers Bankers Life, Washington National and Colonial Penn, had sales of $94 million, as measured in new annualized premiums, in the most recent quarter, an increase of 1 percent from the same time last year.

CNO’s biggest unit, Chicago-based Bankers Life, posted sales of $80.6 million versus $79.4 million in the quarter a year ago. Sales at Washington National grew to $33.9 million, from $21.2 million. Losses widened at Colonial Penn, to a loss of $2.6 million from a $1.3 million loss a year earlier.

Revenue from other CNO business lines, including several being phased out, were down $53.6 million in the third quarter.

CNO posted an after-tax charge of $13.4 million relating to previously settled legal cases.

Earlier this year, CNO recorded a charge of $20 million from the tentative settlement of a legal dispute involving changes made late last year to certain life policies sold by CNO subsidiary Conseco Life Insurance Co.

Under the tentative settlement, the cost-of-insurance increase implemented by Conseco Life beginning in November will be reduced for certain policyholders. Holders whose policies terminated after November can reinstate their policies with the cost reduction or elect to take a cash-settlement option.

Also this year, the company said it agreed to pay $9.9 million to settle allegations by regulators in four states that its Bankers Life subsidiary acted as an investment adviser and broker-dealer without proper licensing. Those states are Maine, New Hampshire, Vermont and Missouri.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. So as I read this the one question that continues to come to me to ask is. Didn't Indiana only have a couple of exchanges for people to opt into which were very high because we really didn't want to expect the plan. So was this study done during that time and if so then I can understand these numbers. I also understand that we have now opened up for more options for hoosiers to choose from. Please correct if I'm wrong and if I'm not why was this not part of the story so that true overview could be taken away and not just parts of it to continue this negative tone against the ACA. I look forward to the clarity.

  2. It's really very simple. All forms of transportation are subsidized. All of them. Your tax money already goes toward every single form of transportation in the state. It is not a bad thing to put tax money toward mass transit. The state spends over 1,000,000,000 (yes billion) on roadway expansions and maintenance every single year. If you want to cry foul over anything cry foul over the overbuilding of highways which only serve people who can afford their own automobile.

  3. So instead of subsidizing a project with a market-driven scope, you suggest we subsidize a project that is way out of line with anything that can be economically sustainable just so we can have a better-looking skyline?

  4. Downtowner, if Cummins isn't getting expedited permitting and tax breaks to "do what they do", then I'd be happy with letting the market decide. But that isn't the case, is it?

  5. Patty, this commuter line provides a way for workers (willing to work lower wages) to get from Marion county to Hamilton county. These people are running your restaurants, hotels, hospitals, and retail stores. I don't see a lot of residents of Carmel working these jobs.

ADVERTISEMENT