CNO Financial Group Inc. says it will be changing the structure it uses to run its business, and changing the way how it tells shareholders about its performance.
The Carmel, Indiana-based insurer announced Tuesday that, starting with the first quarter of 2020, it will have just two business divisions: a consumer division, and the rest in a worksite division.
In recent years, the company has had three operating segments: the Bankers Life segment, the Washington National segment, and the Colonial Penn segment.
CNO sells products such as life insurance, Medicare supplement insurance, annuities, and supplemental health insurance products. Its Bankers Life unit continues to write some long-term care insurance and short-term care insurance.
CNO will keep the Bankers Life, Washington National and Colonial Penn brands, policies and contracts the same, but, inside the company, CNO will consolidate operations in ways that could cut spending by about $22 million per year, the company says.
CNO says Joel Schwartz, the president of Colonial Penn, will leave the company April 10 as a result of the changes.
Gary Bhojwani, CNO’s chief executive officer, said in a comment on Joel Schwartz’s departure, which was included in the realignment announcement, that Schwartz is a highly respected and valuable business leader who has contributed significantly to the growth and success of CNO.
“He was a driving force in developing our direct-to-consumer business and building our web and digital platform,” Bhojwani said. “We thank him for his many contributions and wish him continued success in his future endeavors.”