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CNO Reports Higher Annuity Sales

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CNO Financial Services Group Inc. is reporting higher annuity sales, but lower Medicare supplement and long-term care insurance sales, for the second quarter.

(Related: Annuity Players Continue to Fight Low Rates)

The Carmel, Indiana-based company posted the following first-year collected premium results for its Bankers Life unit:

  • Annuities: Sales increased to $262 million, from $205 million.

  • Medicare supplement insurance: Sales fell to $18 million, from $19 million.

  • Long-term care insurance: Sales fell to $4.1 million, from $4.4 million.

New annualized premium from life insurance sales was soft at all three of CNO’s major divisions.

Sales fell 16% at Bankers Life, to $18 million; 5.6% at Washington National, to $1.7 million; and 16% at the Colonial Penn direct sales unit, to $16 million.

The average number of agents with three or more years experience held steady at about 1,900 at Bankers Life and about 300 at Washington National.

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CNO as a whole is reporting $83 million in net income for the second quarter on $1.1 billion in revenue, compared with $60 million in net income on $1 billion in revenue for the second quarter of 2016. 

The company’s averge rate on newly invested money fell to 4.64% from 5.5%, but the overall earned yield increased to 5.54%, from 5.52%. The new money rate fell partly because efforts to minimize cash float.

Earnings on alternative investments increased to $6.1 million, from $4.6 million.

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