Have a modest but stable income? Graying at the temples? CNO Financial Group finds that especially attractive, and has life insurance and related products targeted toward you and 4 million other customers. The holding company's primary units include Bankers Life & Casualty, which provides Medicare supplement, life, annuities, and long-term care insurance sold through its own agents; Colonial Penn, which offers life insurance to consumers through direct selling; and Washington National which offers specified disease insurance, accident insurance, life insurance, and annuities through its business and independent agents and worksite marketing. CNO Financial operates nationwide.
CNO Financial Group's 2011 sales increased by just 1% vs. 2010, while net income was up 34%. Indeed, the firm's sales have been relatively flat for the past several years. Bankers Life, which accounts for more than 50% of the company's premiums, has outperformed Washington National and Colonial Penn in terms of income growth in recent years.
CNO's target customer is less affluent, but determined to hang on to what they've earned. Assorted supplemental health insurance products account for over half of the company's collected premiums. Medicare supplement products account for half of the premiums collected for its health products, with long-term care products accounting for 40%. Less than 10% of collected premiums are from a segment that consists of closed blocks of life insurance products that are no longer sold but are maintained in "run-off".
CNO's target market, seniors, is often overlooked by all kinds of marketers. However, it's one of the fastest-growing demographic groups in the nation and a potential source of growth for the insurance firm.
In 2010 the company changed its name from Conseco to CNO Financial Group to reflect a broader identity. (The firm also sought to distance itself from historical financial instabilities associated with the Conseco brand.) The name change came after several years' worth of management efforts to conserve capital, reduce complexity and debt, and sequester or divest less profitable operations. – less