AM Best Confirms Credit Ratings of CNO Financial Group, Inc. and Its Life/Health Subsidiaries – InsuranceNewsNet

oldwick, new jersey–(BUSINESS WIRE)–
AM Best affirmed its Life and Health Insurance Subsidiary Financial Rating (FSR) of A (Excellent) and Long-Term ICR (Long-Term ICR) of ‘a’ (Excellent). CNO Financial Group, Inc. (Head office is Carmel, Indiana) [NYSE: CNO]Collectively, these subsidiaries are CNO Financial Group (CNO). At the same time, AM Best estimates a long-term ICR of ‘bbb’ (good) and CNO Financial Group, Inc. The outlook for these credit ratings is stable. (See below for a detailed list of companies and long-term IRs.)

The rating reflects the strength of the CNO’s balance sheet, which AM Best assesses as very strong, strong operating results, a neutral business profile and good corporate risk management.

The rating confirmation is based on CNO’s strong assessment of favorable and consistent operating margins, leveraging the diversification of its product line offerings across the Washington National, Bankers Life and Colonial Pen insurance brands. Additionally, returns from investment income have contributed significantly to earnings stability since 2018. These gains underpin the strong valuation of the Group’s risk-adjusted capital as measured by AM Best’s Capital Adequacy Ratio (BCAR) and its regulatory capital. AM Best announced that its latest reported cash and cash equivalents for the third quarter of 2022 were $498 millionFinancial flexibility, also viewed positively by AM Best, CNO Financial Group, Inc. Group member companies affiliated with the Federal Home Loan Bank help expand financing opportunities.

CNO’s business profile is diversified across providing retirement, life, accident and health insurance. Product sales and distribution are well-positioned through CNO’s diverse distribution channels, including direct-to-consumer sales, exclusive distributors, and workplace opportunities. All of this was achieved despite CNOs operating in an environment of formidable competition and external pressures, including product sales strains during the COVID-19 pandemic. CNOs have managed their risks well and have maintained their positions within their target markets over the past few years.

An A (excellent) FSR and an ‘a’ (excellent) long-term ICR are confirmed with stable outlooks for the following major life/health subsidiaries: CNO Financial Group, Inc.:

• Bankers Life and Casualty Company
• Colonial Penn Life Insurance Company
• Bankers Conseco Life Insurance Company
• Washington National Insurance Company

The following long-term IRs have been confirmed with a stable outlook.

CNO Financial GroupLtd-

— “bbb” (good) on $500 million 5.25% Senior Unsecured Notes Due 2025

— “bbb” (good) on $500 million 5.25% Senior Unsecured Notes Due 2029

–“bbb-” (good) on $150 million 5.125% subordinated debt maturity 2060

This press release relates to credit ratings posted on AM Best’s website. For all rating information related to the release and related disclosures, including details of the office responsible for issuing the individual ratings referenced in this release, please visit AM Best’s. Recent Ratings Activity web page. See below for additional information regarding the use and limitations of Credit Rating Opinions. Best credit rating guideInformation regarding the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases can be found here. Guide to Correct Use of Best Ratings and Ratings.

AM Best is a global credit rating agency, news publisher and data analytics provider dedicated to the insurance industry.Head office location usathe company operates in more than 100 countries and its regional offices are: London, Amsterdam, dubai, Hong Kong, Singapore When Mexico City. For more information, see: www.ambest.com.

Copyright © 2023 AM Best Rating Services, Inc. and/or its affiliates. all rights reserved.

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Wayne Kaminsky
Senior Financial Analyst

+1 908 439 2200, ext. 5061

[email protected]

Christopher Sharkey
manager, public relations

+1 908 439 2200, ext. 5159

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Edward Kohlberg
directed by

+1 908 439 2200, ext. 5664

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Al Surabin
Senior Public Relations Specialist

+1 908 439 2200, ext. 5098

[email protected]

Source: AM Best