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.