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.