Complete Guide to CNO Financial Group
CNO Financial Group, Inc. (NYSE: CNO) stands as a significant player in the U.S. insurance market, specializing in serving middle-income Americans through its portfolio of life insurance, annuities, and supplemental health products. Headquartered in Carmel, Indiana, the company has evolved through several transformations to become a focused provider of insurance solutions for the "mass middle market" and senior citizens.
Corporate Overview
Key facts about CNO Financial Group:
Essential Company Data:
- Founded: 1979 (as Security National of Indiana)
- Headquarters: Carmel, Indiana
- Employees: Approximately 3,300
- NYSE Symbol: CNO
- Market Cap: $3.2 billion (as of 2023)
- Customers Served: Over 4 million policyholders
Historical Evolution
CNO's journey through key transformations:
Early Years (1979-1990s)
- Founded by Stephen Hilbert as Security National of Indiana
- Acquired Consolidated National Life Insurance (1982)
- Renamed Conseco (from CONsolidated and SEcurity COrporation)
- Went public in 1985 (NASDAQ initially, later NYSE)
Expansion Era (1990s-2000)
- Aggressive acquisition strategy including Colonial Penn and Bankers Life
- Purchased Green Tree Financial (1998) - later proved problematic
- Reached Fortune 500 status at peak
- Faced financial difficulties leading to Chapter 11 bankruptcy (2002)
Restructuring and Rebirth (2003-Present)
- Emergence from bankruptcy as Conseco (2003)
- Divested non-core assets including Green Tree
- Rebranded as CNO Financial Group (2010)
- Focused strategy on core insurance businesses
Business Segments
CNO operates through three primary business segments:
Bankers Life
The company's largest subsidiary focuses on senior market:
- Founded in 1879 in Chicago
- Acquired by Conseco in 1982
- Specializes in Medicare supplements and senior life insurance
- Distributed through 4,000+ career agents
- Generates approximately 50% of CNO's revenue
Washington National
Middle-market supplemental health and life products:
- Founded in 1885
- Focus on accident, critical illness, and hospital indemnity
- Distributed through independent agents
- Known for "Premier Choice" fixed whole life product
Colonial Penn
Direct-to-consumer insurance provider:
- Acquired in 1997
- Specializes in simplified-issue life insurance
- Heavily marketed through TV (Alex Trebek era ads)
- "Guaranteed Acceptance" whole life product
- Targets customers aged 50-85
Financial Performance
Recent financial highlights (2022 annual report):
| Metric | 2022 | 2021 | Change |
|---|---|---|---|
| Total Revenue | $4.1B | $4.0B | +2.5% |
| Net Income | $407M | $379M | +7.4% |
| Adjusted EBIT | $622M | $600M | +3.7% |
| Total Assets | $33.9B | $35.2B | -3.7% |
Leadership and Governance
Current executive team and governance:
Executive Leadership
- Gary C. Bhojwani: CEO since 2018 (former Allstate executive)
- Paul H. McDonough: CFO since 2019
- Scott L. Goldberg: President of Bankers Life
- Yvonne M. Franzese: General Counsel
Board of Directors
- 11-member board with majority independence
- Edward Bonach serves as Chairman
- Includes financial services and insurance veterans
Product Portfolio
CNO's insurance offerings by category:
Life Insurance Products
- Term Life: Temporary coverage (Bankers Life)
- Whole Life: Permanent coverage with cash value
- Final Expense: Simplified-issue (Colonial Penn)
- Universal Life: Flexible premium products
Annuities
- Fixed Annuities: Guaranteed interest rates
- Indexed Annuities: Market-linked growth
- Immediate Annuities: Income stream products
Supplemental Health
- Medicare Supplements: Gap coverage for seniors
- Critical Illness: Lump-sum benefit policies
- Accident Insurance: Injury-related benefits
- Hospital Indemnity: Fixed daily benefits
Distribution Channels
How CNO products reach customers:
Career Agency System
- Bankers Life's network of 4,000+ exclusive agents
- Local offices in major markets nationwide
- Focus on face-to-face senior market sales
Independent Agents
- Washington National products sold through brokers
- Works with 30,000+ independent agents
- Online portal for agent support
Direct Response
- Colonial Penn's TV and direct mail marketing
- 1-800 number and online enrollment
- No medical exam products for seniors
Market Position and Competitors
CNO's competitive landscape:
Target Market
- Primary focus on middle-income Americans
- Strong presence in senior insurance market
- Emphasis on supplemental health products
Major Competitors
- Aflac: Supplemental health leader
- Mutual of Omaha: Senior market competitor
- Globe Life: Direct-to-consumer rival
- Lincoln Financial: Annuity competition
Corporate Social Responsibility
CNO's community and sustainability initiatives:
Philanthropy
- CNO Foundation supports local Indiana charities
- Employee volunteer programs
- Disaster relief contributions
Diversity and Inclusion
- Employee resource groups
- Supplier diversity program
- Inclusive leadership training
Environmental Initiatives
- Energy-efficient headquarters
- Paperless policy options
- Corporate sustainability reporting
Recent Developments
Notable company news and initiatives:
- 2023 expansion of digital capabilities
- New product launches in supplemental health
- Strategic review of business segments
- Continued focus on middle-market growth
Challenges and Controversies
Issues the company has faced:
- 2002 bankruptcy restructuring
- Past regulatory settlements
- Market challenges from insurtech competitors
- Interest rate sensitivity of annuity business