Evercore ISI Upgrades CNO Financial Rating to In Line
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 38 minutes ago
0mins
Source: seekingalpha
- Long-Term Care Performance: Evercore ISI upgraded CNO Financial's rating from Underperform to In Line, primarily due to its long-term care business consistently outperforming industry averages in incurred claims, excluding 2022, indicating strong risk management capabilities.
- Adequacy of Reserves: Analyst Thomas Gallagher noted that CNO's survival ratio stands at 10.8x, slightly below the peer average, yet it has remained stable since 2022 and showed notable improvement in 2025, reflecting the company's resilience in long-term care products.
- Product Strategy Advantage: CNO Financial's focus on shorter-duration products has resulted in 65% of its long-term care policies having benefit periods of one year or less by year-end 2025, which helps mitigate risk and enhance profitability, thereby strengthening its competitive position in the market.
- Market Reaction: Despite the upgrade from Evercore ISI, CNO Financial's stock slipped 0.3% in Monday afternoon trading, indicating a cautious market response to the rating change, possibly reflecting investor concerns about the overall economic environment.
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Analyst Views on CNO
Wall Street analysts forecast CNO stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 45.970
Low
47.00
Averages
48.00
High
50.00
Current: 45.970
Low
47.00
Averages
48.00
High
50.00
About CNO
CNO Financial Group, Inc. is a holding company for a group of insurance companies. It provides life and health insurance, annuities, financial services and workforce benefits solutions through its family of brands, including Bankers Life, Colonial Penn, Optavise and Washington National. It is focused on serving middle-income pre-retiree and retired Americans. It markets its products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations and other membership groups, interacting with customers at their place of employment and virtually. It also offers a suite of voluntary benefits, benefits administration technology and advocacy services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Evercore ISI Upgrades CNO Financial Rating to In Line
- Long-Term Care Performance: Evercore ISI upgraded CNO Financial's rating from Underperform to In Line, primarily due to its long-term care business consistently outperforming industry averages in incurred claims, excluding 2022, indicating strong risk management capabilities.
- Adequacy of Reserves: Analyst Thomas Gallagher noted that CNO's survival ratio stands at 10.8x, slightly below the peer average, yet it has remained stable since 2022 and showed notable improvement in 2025, reflecting the company's resilience in long-term care products.
- Product Strategy Advantage: CNO Financial's focus on shorter-duration products has resulted in 65% of its long-term care policies having benefit periods of one year or less by year-end 2025, which helps mitigate risk and enhance profitability, thereby strengthening its competitive position in the market.
- Market Reaction: Despite the upgrade from Evercore ISI, CNO Financial's stock slipped 0.3% in Monday afternoon trading, indicating a cautious market response to the rating change, possibly reflecting investor concerns about the overall economic environment.
See More
Principal Financial Group Stock Analysis
- Valuation Advantage: Principal Financial's price-to-book ratio stands at 1.88X, significantly lower than the industry average of 2.52X, providing a more attractive entry point for value investors, which may enhance stock demand.
- Earnings Growth Outlook: The consensus estimate for 2026 earnings per share (EPS) indicates a year-over-year increase of 13.2%, with revenues projected at $16.35 billion, reflecting the company's stable growth potential and bolstering market confidence.
- Asset Management Expansion: As of Q1 2026, total assets under management reached $770 billion, marking a 7% year-over-year increase, showcasing the company's strong performance in asset management and further solidifying its market position.
- Dividend Increase: The board raised the second-quarter dividend by 8% to 82 cents per share in April 2026, with a dividend yield of 3.1%, surpassing the industry average of 2.6%, which is likely to attract more income-seeking investors.
See More
CNO Financial Group Annual Meeting Highlights
- Annual Meeting Held: CNO Financial Group convened its annual shareholder meeting on May 13, 2026, to report on company operations and discuss future strategies, thereby enhancing shareholder confidence in the company's growth trajectory.
- Insurance Business Scale: The company currently holds 3.3 million policies and $39 billion in total assets, indicating its strong influence in the middle-income market and robust financial foundation to better meet clients' health and retirement needs.
- Brand Diversity: CNO offers life and health insurance, annuities, and financial services through various brands, including Bankers Life, Colonial Penn, Optavise, and Washington National, ensuring a broad customer reach and enhancing market competitiveness.
- Team Strength: With 3,300 associates, 5,000 exclusive agents, and over 7,500 independent partner agents, CNO Financial Group has built a strong sales and service network capable of effectively guiding clients in financial decisions, thereby improving customer satisfaction and loyalty.
See More
CNO Financial Group Expected to Announce Dividend Increase
- Dividend Growth Expectation: CNO Financial Group is expected to announce a dividend increase this May, continuing its 13-year streak of regular growth, with analysts forecasting an annual dividend of approximately $0.71 per share, translating to a quarterly dividend of about $0.177, which represents a 4.1% increase from the current $0.170.
- Historical Dividend Performance: The last dividend paid by CNO Financial was $0.170 per share in March 2026, yielding 1.49%, and the company increased its dividend by 6.25% last April, from $0.1600 to $0.1700, demonstrating its commitment to consistent dividend growth.
- Dividend Growth Rate: Over the past five years, CNO Financial has achieved a dividend growth rate of approximately 2.60%, with a current payout ratio of 10.90%, indicating a balance between returning value to shareholders and reinvesting in business expansion.
- Dividend Quality Ratings: CNO Financial holds a B+ rating for safety, a C rating for growth, a C⁻ rating for yield, and a B rating for consistency in its dividend quality metrics, reflecting the company's stability and sustainability in dividend payments.
See More
CNO Financial Group Q1 2026 Earnings Call Highlights
- Sustained Sales Growth: CNO Financial Group achieved its 15th consecutive quarter of sales growth in Q1 2026, with total new annualized premiums rising by 11%, demonstrating strong demand in the middle market and a unique agent distribution model that further solidifies its competitive edge.
- Strong Medicare Performance: Total Medicare policies sold increased by 24%, with Medicare Supplement sales soaring by 53%, reflecting a market shift in consumer preferences from Medicare Advantage to Medicare Supplement, thereby enhancing the company's product mix.
- Robust Capital Returns: The company reported operating earnings per share of $1.05 for the quarter, up 33% year-over-year, while returning $77 million to shareholders through share repurchases, showcasing its commitment to shareholder returns and effective capital management.
- Stable Outlook: Despite macroeconomic volatility, CNO affirmed its original guidance for 2026, indicating continued profitability growth, and plans to raise its return on equity (ROE) targets for 2027, reflecting the company's confidence in future performance.
See More
CNO Financial Reports Strong Q1 Earnings Beat
- Earnings Beat: CNO Financial's Q1 non-GAAP EPS of $1.05 exceeded expectations by $0.12, demonstrating robust profitability growth that enhances investor confidence in the company's financial health.
- Revenue Growth: The company reported Q1 revenue of $1.03 billion, a 3.0% year-over-year increase, surpassing market expectations by $30 million, indicating sustained competitive strength in the market.
- Future Outlook: CNO Financial projects an 8% EPS growth for 2026, focusing on momentum in Medicare Supplement plans, which reflects the company's confidence and strategic direction for future growth.
- Market Rating: Seeking Alpha's Quant Rating on CNO Financial shows a positive trend, reflecting analysts' optimistic outlook on the company's future performance, potentially attracting more investor interest.
See More
Evercore ISI Upgrades CNO Financial Rating to In Line
- Long-Term Care Performance: Evercore ISI upgraded CNO Financial's rating from Underperform to In Line, primarily due to its long-term care business consistently outperforming industry averages in incurred claims, excluding 2022, indicating strong risk management capabilities.
- Adequacy of Reserves: Analyst Thomas Gallagher noted that CNO's survival ratio stands at 10.8x, slightly below the peer average, yet it has remained stable since 2022 and showed notable improvement in 2025, reflecting the company's resilience in long-term care products.
- Product Strategy Advantage: CNO Financial's focus on shorter-duration products has resulted in 65% of its long-term care policies having benefit periods of one year or less by year-end 2025, which helps mitigate risk and enhance profitability, thereby strengthening its competitive position in the market.
- Market Reaction: Despite the upgrade from Evercore ISI, CNO Financial's stock slipped 0.3% in Monday afternoon trading, indicating a cautious market response to the rating change, possibly reflecting investor concerns about the overall economic environment.
See More
Principal Financial Group Stock Analysis
- Valuation Advantage: Principal Financial's price-to-book ratio stands at 1.88X, significantly lower than the industry average of 2.52X, providing a more attractive entry point for value investors, which may enhance stock demand.
- Earnings Growth Outlook: The consensus estimate for 2026 earnings per share (EPS) indicates a year-over-year increase of 13.2%, with revenues projected at $16.35 billion, reflecting the company's stable growth potential and bolstering market confidence.
- Asset Management Expansion: As of Q1 2026, total assets under management reached $770 billion, marking a 7% year-over-year increase, showcasing the company's strong performance in asset management and further solidifying its market position.
- Dividend Increase: The board raised the second-quarter dividend by 8% to 82 cents per share in April 2026, with a dividend yield of 3.1%, surpassing the industry average of 2.6%, which is likely to attract more income-seeking investors.
See More
CNO Financial Group Annual Meeting Highlights
- Annual Meeting Held: CNO Financial Group convened its annual shareholder meeting on May 13, 2026, to report on company operations and discuss future strategies, thereby enhancing shareholder confidence in the company's growth trajectory.
- Insurance Business Scale: The company currently holds 3.3 million policies and $39 billion in total assets, indicating its strong influence in the middle-income market and robust financial foundation to better meet clients' health and retirement needs.
- Brand Diversity: CNO offers life and health insurance, annuities, and financial services through various brands, including Bankers Life, Colonial Penn, Optavise, and Washington National, ensuring a broad customer reach and enhancing market competitiveness.
- Team Strength: With 3,300 associates, 5,000 exclusive agents, and over 7,500 independent partner agents, CNO Financial Group has built a strong sales and service network capable of effectively guiding clients in financial decisions, thereby improving customer satisfaction and loyalty.
See More
CNO Financial Group Expected to Announce Dividend Increase
- Dividend Growth Expectation: CNO Financial Group is expected to announce a dividend increase this May, continuing its 13-year streak of regular growth, with analysts forecasting an annual dividend of approximately $0.71 per share, translating to a quarterly dividend of about $0.177, which represents a 4.1% increase from the current $0.170.
- Historical Dividend Performance: The last dividend paid by CNO Financial was $0.170 per share in March 2026, yielding 1.49%, and the company increased its dividend by 6.25% last April, from $0.1600 to $0.1700, demonstrating its commitment to consistent dividend growth.
- Dividend Growth Rate: Over the past five years, CNO Financial has achieved a dividend growth rate of approximately 2.60%, with a current payout ratio of 10.90%, indicating a balance between returning value to shareholders and reinvesting in business expansion.
- Dividend Quality Ratings: CNO Financial holds a B+ rating for safety, a C rating for growth, a C⁻ rating for yield, and a B rating for consistency in its dividend quality metrics, reflecting the company's stability and sustainability in dividend payments.
See More
CNO Financial Group Q1 2026 Earnings Call Highlights
- Sustained Sales Growth: CNO Financial Group achieved its 15th consecutive quarter of sales growth in Q1 2026, with total new annualized premiums rising by 11%, demonstrating strong demand in the middle market and a unique agent distribution model that further solidifies its competitive edge.
- Strong Medicare Performance: Total Medicare policies sold increased by 24%, with Medicare Supplement sales soaring by 53%, reflecting a market shift in consumer preferences from Medicare Advantage to Medicare Supplement, thereby enhancing the company's product mix.
- Robust Capital Returns: The company reported operating earnings per share of $1.05 for the quarter, up 33% year-over-year, while returning $77 million to shareholders through share repurchases, showcasing its commitment to shareholder returns and effective capital management.
- Stable Outlook: Despite macroeconomic volatility, CNO affirmed its original guidance for 2026, indicating continued profitability growth, and plans to raise its return on equity (ROE) targets for 2027, reflecting the company's confidence in future performance.
See More
CNO Financial Reports Strong Q1 Earnings Beat
- Earnings Beat: CNO Financial's Q1 non-GAAP EPS of $1.05 exceeded expectations by $0.12, demonstrating robust profitability growth that enhances investor confidence in the company's financial health.
- Revenue Growth: The company reported Q1 revenue of $1.03 billion, a 3.0% year-over-year increase, surpassing market expectations by $30 million, indicating sustained competitive strength in the market.
- Future Outlook: CNO Financial projects an 8% EPS growth for 2026, focusing on momentum in Medicare Supplement plans, which reflects the company's confidence and strategic direction for future growth.
- Market Rating: Seeking Alpha's Quant Rating on CNO Financial shows a positive trend, reflecting analysts' optimistic outlook on the company's future performance, potentially attracting more investor interest.
See More
