AM Best certifies that CNO Financial Group, Inc.’s Life/Health insurance subsidiary has an A (excellent) financial strength rating (FSR) and an ‘a’ (excellent) long-term issuer credit rating (ICR). Confirmed (headquartered in Carmel, Indiana) [NYSE: CNO]These subsidiaries are collectively referred to as the CNO Financial Group (CNO). At the same time, AM Best confirmed CNO Financial Group, Inc.’s Long-Term ICR (Good) and Long-Term Issue Credit Ratings (Long-Term IR). 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 has observed strong liquidity measures at its group and holding company, with its latest reported cash and cash equivalents for the third quarter of 2022 at $498 million. Financial flexibility, also seen positively by AM Best, is the ability to access capital markets through the group’s member companies affiliated with CNO Financial Group, Inc. and the Federal Home Loan Bank, and the It helps open up 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 affirmed with stable outlooks for the following major Life/Health subsidiaries of 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 Group, Inc. —
— ‘bbb’ (good) on $500 million 5.25% senior unsecured bonds due 2025
— ‘bbb’ (good) on $500 million 5.25% senior unsecured notes due 2029
— ‘bbb-‘ (good) on $150 million 5.125% subordinated notes due 2060
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