AM Best Affirms Credit Ratings of CNO Financial Group, Inc. and Its Life/Health Subsidiaries
February 01 2023 - 2:53PM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” (Excellent) of the life/health insurance subsidiaries
of CNO Financial Group, Inc. (headquartered in Carmel, IN) [NYSE:
CNO]. These subsidiaries are referred to collectively as CNO
Financial Group (CNO). Concurrently, AM Best has affirmed the
Long-Term ICR of “bbb” (Good) and the Long-Term Issue Credit
Ratings (Long-Term IR) of CNO Financial Group, Inc. The outlook of
these Credit Ratings (ratings) is stable. (See below for a detailed
listing of the companies and Long-Term IRs.)
The ratings reflect CNO’s balance sheet strength, which AM Best
assesses as very strong, as well as its strong operating
performance, neutral business profile and appropriate enterprise
risk management.
The affirmation of the ratings is based on the strong assessment
of CNO’s favorable and consistent operating gains, which draw upon
the diversification of its product line offerings across its
insurance brands of Washington National, Bankers Life and Colonial
Penn. Additionally, the returns from investment income are a strong
contributor to the stability of earnings since 2018. These gains
have supported a strong assessment 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 in the group and holding company, where the latest
reported cash and cash equivalents at third-quarter 2022 was $498
million. The financial flexibility, also viewed positively by AM
Best, is nimble with access to the capital markets through CNO
Financial Group, Inc. and the member companies of the group having
membership in the Federal Home Loan Banks, which has lent itself to
spread lending opportunities.
CNO’s business profile is diversified across retirement, life
and accident and health insurance offerings. Product sales and
distribution are well positioned through CNO’s diversified
distribution channels including direct-to-consumer, exclusive
agents and worksite opportunities. All of this has been
accomplished despite CNO operating in a landscape of formidable
competition and external pressures that include the strains of
selling products during the COVID-19 pandemic. CNO has managed its
risks well and has operated and maintained its position within its
target markets over the past few years.
The FSR of A (Excellent) and the Long-Term ICRs of “a”
(Excellent) have been affirmed with stable outlooks for the
following key 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 affirmed with stable
outlooks.
CNO Financial Group, Inc.— --“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 debentures, due 2060
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent
Rating Activity web page. For additional information
regarding the use and limitations of Credit Rating opinions, please
view Guide to Best's Credit Ratings. For information
on the proper use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Wayne Kaminski Senior Financial Analyst +1 908
439 2200, ext.5061 anthony.mcswieney@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Edward Kohlberg Director +1 908 439 2200,
ext.5664 edward.kohlberg@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 439 2200, ext. 5098 al.slavin@ambest.com
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