This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

CNO Financial Group's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Our key metrics of risk-based capital and debt-to-total-capital improved further during the quarter. Fred will touch on these in more detail later in the presentation.

And finally, we continued to emphasize and focus on profitable organic growth in our three core segments. Reported net operating EPS in the quarter was $.20 per share, up from $.15 per share in the prior year. To enhance the understanding of our operating results, slide seven shows our operating EPS adjusted for one notable item occurring in both this quarter and another in the year-ago. Our second quarter operating earnings and operating EPS were the highest achieved in the last two and half years.

Slide eight shows our trailing four quarters consolidated operating return on equity. Trailing four quarters’ earnings, we’re up 6%, but this is outpaced by the increase in average common shareholders equity of 10%, resulting in ROE being down slightly from the prior year. Our statutory results, free cash flow and excess capital generation provide meaningful insights on CNO’s enterprise value. As we have discussed before, our levers to improve ROE continue to be layering on profitable new business at a minimum 12% unlevered after-tax return, effectively deploying our excess capital, improving OCB margins and continuing to improve efficiencies across the enterprise. While we have made progress in growing earnings, and as important, earnings stability, we have made even more progress in restoring the balance sheet and deleveraging. Having now achieved capital ratios consistent with upgrades, we expect continued earnings growth in capital management to contribute more to increasing our ROE. It’s also worth noting the ROE convention of reporting on a trailing 12-month basis somewhat masks the run rate progress we have been making in advancing ROE. This, of course, will eventually come through as we post continued strong quarters.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs