CNO Financial Group(US:CNO)2023-11-07 20:57Financial Data and Key Metrics Changes - Operating earnings per share increased to $0.88, up 31% year-over-year, and up 10% excluding significant items [7][52] - Total new annualized premium was up 13%, with strong sales growth across nearly all product categories [67] - Book value per diluted share, excluding AOCI, was $33.75, up 6% [68] Business Line Data and Key Metrics Changes - Worksite life and health insurance sales were up a record 36%, exceeding pre-pandemic sales levels by 14% [1] - Life and health NAP increased by 9%, with life production up 8% and health NAP up 11% [25][26] - Long-term care NAP surged by 48% following the launch of a new product [26] Market Data and Key Metrics Changes - Client assets in brokerage and advisory rose 18% year-over-year to $2.9 billion, with total accounts up 7% [34] - Producing agent counts increased by 24%, with agent productivity up 5% [38] - The average yield on allocated investments increased to 4.69%, up 12 basis points year-over-year [15] Company Strategy and Development Direction - The company is focused on three strategic growth priorities: integrating worksite capabilities under the Optavise brand, expanding distribution through new broker relationships, and accelerating agent recruiting [4] - The establishment of a Bermuda affiliate aims to enhance capital management and support new business opportunities [6][68] - The company is committed to serving middle-income America and enhancing customer value while driving profitable growth [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in ending the year strong, particularly during the critical Medicare annual enrollment period [24] - The company anticipates continued strong performance in the fourth quarter, supported by strategic investments and product enhancements [69] - Management noted that the economic environment may open more career opportunities in insurance sales, contributing to recruitment success [60][94] Other Important Information - The company completed $40 million in share repurchases during the quarter and maintained capital and liquidity above target levels [10][54] - The new accident insurance product introduced in June generated over $4 million in sales [3] Q&A Session Summary Question: How does the company plan to deploy excess capital following the Bermuda reinsurance treaty? - The company indicated that the Bermuda treaty increases excess capital at the Holdco, enhancing share repurchase capacity, but the overall deployment strategy remains unchanged [57] Question: What trends are observed in health claims experience for the fourth quarter? - Management noted that health claims moderated as expected and trends from Q3 are anticipated to continue into Q4 [92] Question: How is the company addressing agent recruitment and geographic expansion? - The company has implemented numerous support and training programs to attract talent, and is expanding its worksite business into new geographies [60][76] Question: What is the outlook for annuity collected premiums moving into 2024? - Management expects annuity business to remain healthy and attractive to middle-income consumers, despite fluctuations in interest and market conditions [85][86] Question: How does the company view the impact of new health medications on its business? - Management believes that anything improving consumer health is beneficial, as it leads to fewer claims and longer life insurance premium payments [98]