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CNO Financial sees quarterly profit soar, beating expectations

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Profit soared 80 percent at CNO Financial Group Inc. in its second quarter and topped the expectations of Wall Street analysts, the company announced Wednesday.

The Carmel-based life and health insurer earned $59.5 million in the three months ended June 30, up from $33.1 million the same period a year ago.

Those results translated to earnings of 21 cents per share, up from 12 cents per share a year ago.

Excluding investment gains, CNO earned 20 cents per share, 2 cents higher than the 18 cents analysts were expecting, according to a survey by Thomson Reuters.

CNO’s revenue rose 8 percent, to $1.03 billion, squeaking past analysts’ predictions of $1.02 billion.

“We are also pleased that CNO's capital strength continued to grow, primarily fueled by our earnings, allowing us to buy back shares and continue to pay down debt," said CNO Chief Financial Officer Ed Bonach in a prepared statement. Bonach will become the company’s CEO at the end of September when current chief Jim Prieur retires.

CNO’s profit growth was driven by its two largest units. Chicago-based Bankers life boosted its earnings before interest and taxes by 32 percent, to nearly $85 million. The Carmel-based Washington National unit saw 7-percent growth in earnings before interest and taxes, to $22.7 million.

Profit at CNO’s other unit, Philadelphia-based Colonial Penn, was flat.

CNO announced its financial results after the market closed. Its shares fell 4 percent on the day to close at $7.42 apiece. They are still up by more than 9 percent for the year.

 

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  1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

  2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

  3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  4. If you only knew....

  5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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