CNO Financial Group Inc. wrote less long-term care insurance (LTCI) in the second quarter, and it collected less premium revenue on in-force business, but the profitability of the in-force business looked a little better.
Executives at CNO (NYSE:CNO) touched on the LTCI business today when going over second-quarter earnings during a conference call with securities analysts. CNO as a whole is reporting $78 million in net income for the quarter on $1.1 billion in revenue, up from $77 million in net income on $1.1 billion in revenue for the comparable quarter in 2013.
The Bankers Life unit generated $4.7 million in new sales on $126 million in collected premiums, down from $6.5 million in new sales on $133 million in collected premiums. But the interest-adjusted ratio of benefits payments to earned premiums fell to 79.2 percent, from 81.4 percent.
The underwriting margin — earned premium, plus imputed interest income on reserves, less policy benefits — improved to 26.5 percent, from 25 percent.
Fred Crawford, CNO’s chief financial officer, said earning the conference call that CNO was happy to see the improvement.
“Note that premium continues to reduce as we run off the more comprehensive, older business, and replace it with shorter-term and more limited-benefit long-term care products,” Crawford said.
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