IBJNews

UPDATE: CNO shares soar after quarterly profit rises

Back to TopCommentsE-mailPrintBookmark and Share

CNO Financial Group Inc. shares jumped 11 percent Wednesday morning after the Carmel-based life and health insurer reported better-than-expected quarterly financial results.

CNO shares hit $7.15 each, a rise of 79 cents over yesterday's close.

The company formerly known as Conseco Inc. boosted its operating profits 62 percent in the fourth quarter, besting analysts’ estimates by two cents per share.

The insurer, in an after-markets announcement, said it earned $168.2 million in the final three months of last year, a big jump from the $18.2 million profit it posted in the same quarter the prior year.

Most of the increase in the most recent quarter came from investment gains. Excluding those, as well as special accounting and debt charges, CNO had an operating profit of $51.7 million in the quarter, or 18 cents per common share.

On that same basis, Wall Street analysts were expecting CNO to earn 16 cents per share, according to a survey by Thomson Reuters. A year ago, CNO’s operating profit was $32 million, or 15 cents per share.

Revenue for the quarter rose nearly 2 percent, to $1.08 billion.

“We also were pleased that our core businesses continued to perform well, and key measures of financial strength, including our risk-based capital ratio and our debt-to-total-capital ratio, also improved,” said CNO CEO Jim Prieur in a statement.

The main improvement came on policies that CNO still holds but is no longer actively selling. That division, called “Other CNO Business,” recorded a fourth-quarter  profit of $6 million, compared with a nearly $30 million loss in the same quarter last year.

That helped mask a drop in profit at CNO’s main Bankers Life unit, based in Chicago. It earned $71.4 million in the quarter, a fall of 16 percent.

CNO’s Carmel-based unit, Washington National, boosted profit by 25 percent in the fourth quarter, to $28.7 million.

For all of 2010, CNO earned $284.6 million, more than triple its 2009 profit, even though revenue declined by 6 percent, to $4.08 billion.

CNO shares closed Tuesday before the earnings announcement at $6.36 apiece, down 2 percent for the day. Before Wednesday morning, CNO shares had fallen 6.2 percent this year, even as the Standard & Poor’s 500 has risen 4.6 percent.

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. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

  2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

  3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

  4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

ADVERTISEMENT