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NEW YORK (TheStreet) -- Shares of CNO Financial (CNO) - Get CNO Financial Group, Inc. Report were sliding on heavy trading volume early Friday afternoon after the company said late yesterday that it would terminate its agreements with reinsurance provider Beechwood Re, prompting analysts to downgrade the stock. 

Regulators in New York and Indiana said that many assets Beechwood managed did not follow insurance company guidelines, Reuters reported.

Beechwood has been placing CNO's money in investments run by troubled hedge fund manager Platinum Partners. Platinum is currently liquidating its main funds amid federal investigations and an associate's arrest in June.

CNO said it could lose about $55 million, pending an audit of assets that it said Beechwood incorrectly priced, according to Reuters.

Two subsidiaries of the Carmel, IN-based financial services company Bankers Conseco Life Insurance and Washington National Insurance will recapture about $550 million of long-term closed block care liabilities from Beechwood, according to an SEC filing.

This will bring the risk from the assets back under CNO's roof, Reuters noted.

CNO's share repurchase program will also be halted for the remainder of 2016, the company said.

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Goldman Sachs cut its rating on the stock to "neutral" from "buy" following the announcement. The firm also lowered its price target to $17 from $21, the Fly reports.

The firm said that CNO's long-term care clean-up and deployment plans are no longer catalysts for the stock.

BTIG also downgraded the stock to "neutral" from "buy" today.

More than 4.8 million shares of CNO have traded so far today vs. its 30-day average volume of about 1.58 million shares.

Separately, TheStreet Ratings objectively rated CNO stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.

The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: CNO

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