Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based CNO Financial Group Inc. suffered a first-quarter loss of $21.2 million, due mostly to a dismal investment market brought on by the COVID-19 pandemic.
The insurance holding company said the year could be unpredictable, but it was committed to not laying off employees in 2020.
“From the onset of the pandemic, CNO implemented our business continuity plan that transitioned nearly the entire company to remote working arrangements,” CEO Gary C. Bhojwani said in written remarks after earnings were reported Tuesday. “I wish to thank the more than 3,000 associates and 5,000 exclusive agents for their incredible dedication and hard work that has enabled the company to support our clients during these difficult times.”
The company’s loss equated to 15 cents per share, down from a profit of $51.8 million, or 32 cents per share, in the year-ago quarter.
Earnings, adjusted for non-recurring costs, came to 58 cents per share, beating analyst expectations of 40 cents per share.
CNO posted revenue of $717.2 million in the period, down from more than $1 billion a year ago. The revenue figure missed analyst expectations by 24%.
“Sales were disrupted only late in the quarter as consumers and employers paused purchase activity when the pandemic response deepened,” Bhojwani said. “While it is too early to predict the full impact of the COVID-19 crisis on CNO and the country, our financial position remains strong and our business model is resilient. We expect to effectively manage the near-term disruption and to emerge from the crisis even stronger.”
CNO shares fell 7% Wednesday, to $12.53 each. The are down more than 26% since the beginning of the year.
Please enable JavaScript to view this content.
