This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

A.M. Best Upgrades Ratings Of CNO Financial Group, Inc. And Its Key Life/Health Subsidiaries

A.M. Best Co. has upgraded the financial strength rating (FSR) to B++ (Good) from B+ (Good) and issuer credit ratings (ICR) to “bbb” from “bbb-” for the key life/health subsidiaries of CNO Financial Group, Inc. (CNO Financial) (Carmel, IN) [NYSE: CNO]. Concurrently, A.M. Best has upgraded the ICR and existing senior debt ratings to “bb” from “bb-” of CNO Financial. The outlook for these ratings is stable.

Additionally, A.M. Best has assigned a debt rating of “bb” to CNO Financial’s forthcoming issuance of $250 million senior secured notes due 2020. The assigned outlook is stable. (See below for a detailed listing of companies and ratings.)

The upgrades reflect the favorable trends in CNO Financial’s operating earnings, core product sales and risk-adjusted capitalization. In addition, A.M. Best acknowledges the significant progress made by CNO Financial’s management in executing its strategic business plan. The growth in earnings has been attributable to CNO Financial’s diverse revenue streams from its insurance subsidiaries. Improved revenue across several business segments—driven by agent growth, timely rate increases and the addition of new products—also have contributed to the group’s higher profitability. CNO Financial’s enhanced operating results, combined with its better investment performance, have facilitated growth in the insurance subsidiaries’ risk-adjusted capitalization. A.M. Best notes that Bankers Life and Casualty Company, the group’s lead operating entity, has seen considerable improvement in its capitalization over the past 12 to 18 months.

The rating actions also reflect the success CNO Financial has had in focusing on markets where true competitive advantages are achievable while, at the same time, actively managing risk. This strategy included exiting/de-emphasizing non-core product lines through divestiture and/or reinsurance, considerable expense reductions and, most recently, initiating a recapitalization plan. A.M. Best views favorably CNO Financial’s planned debt restructuring, which will enhance financial flexibility by reducing its cost of capital and improving its debt maturity profile. Moreover, A.M. Best believes the company’s ability to maintain solid profitability and foster capital growth has better positioned CNO Financial with respect to its credit agreement.

1 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!


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

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