AM Best Affirms Credit Ratings of CNO Financial Group, Inc. and Its Life/Health Subsidiaries

Rhea-AI Summary

AM Best has reaffirmed the Financial Strength Rating (FSR) of A (Excellent) and Long-Term Issuer Credit Ratings (ICR) of 'a' (Excellent) for CNO Financial Group's life/health insurance subsidiaries. The outlook for these ratings is stable. The ratings reflect CNO's strong balance sheet, consistent operating performance, and robust risk management. CNO's diversified product offerings across its brands, like Washington National and Bankers Life, contribute to its stability, supported by solid liquidity measures with $498 million in cash as of Q3 2022. This affirmation underscores CNO's strong position amidst competitive pressures, including challenges posed by the COVID-19 pandemic.

Positive

• FSR of A (Excellent) and ICR of 'a' (Excellent) reaffirmed by AM Best.
• Strong balance sheet assessed as very strong.
• Consistent operating gains driven by diversified product offerings.
• Strong liquidity with $498 million cash reported in Q3 2022.
• Access to capital markets enhances financial flexibility.

Negative

• None.

OLDWICK, N.J.--(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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005973/en/

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

Source: AM Best

FAQ

What is CNO's current Financial Strength Rating as per AM Best?

CNO Financial Group has a Financial Strength Rating of A (Excellent) affirmed by AM Best.

What factors contributed to CNO's strong ratings by AM Best?

CNO's strong ratings are based on its solid balance sheet strength, consistent operational performance, and effective enterprise risk management.

What is the outlook for CNO's credit ratings?

The outlook for CNO's credit ratings is stable according to AM Best.

How much cash does CNO Financial Group have as of Q3 2022?

CNO Financial Group reported $498 million in cash and cash equivalents as of Q3 2022.

Which insurance brands are included under CNO Financial Group?

CNO's insurance brands include Bankers Life, Colonial Penn, and Washington National.