Skip to main content

Market Overview

CNO Financial Downgraded At BTIG Following Reveal Of Long-Term Care Recapture

Share:

CNO Financial Group, Inc. (NYSE: CNO) received a downgrade from Buy to Neutral from BTIG analyst Mark Palmer.

The bearish rating came after CNO's disclosure that two of its subsidiaries are recapturing a $550 million long-term care block and severing ties with private reinsurer Beechwood Re. These actions come after regulators in two states said the reinsurer didn't comply with insurance company guidelines, and is expected to result in a $55 million after-tax charge, according to Palmer.

With the recapture, SNO is contributing $200 million to the two subsidiaries absorbing the recapture and suspending its share repurchase program for the remainder of the year.

"CNO's ability to buy back its shares combined with its discount valuation – the stock trades at 0.62x the company's book value ex. accumulated other comprehensive income (AOCI) as of June 30 – had been a key aspect of our thesis," said Palmer.

Latest Ratings for CNO

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsEqual-Weight
Mar 2021Piper SandlerDowngradesOverweightNeutral
Feb 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for CNO
View the Latest Analyst Ratings

 

Related Articles (CNO)

View Comments and Join the Discussion!

Posted-In: btig Mark PalmerAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
QSRNorthcoast ResearchInitiates Coverage On
DQGLJ ResearchInitiates Coverage On22.1
TCMaxim GroupDowngrades
GLNGB of A SecuritiesDowngrades
LMNXPiper SandlerDowngrades37.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com