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CNO Financial Approves $400 Million Increase in Buybacks

In order to return more to its shareholders, the board of directors of CNO Financial Group, Inc.CNO approved an increase in its share buyback program by $400 million. This is in addition to the existing buyback program that had $110 million remaining as of Sep 30, 2015. Thus, including the latest authorization, the company now has shares worth $510 million outstanding for repurchase.

Additionally, the company's board of directors declared a quarterly cash dividend of 7 cents per share, which will be paid on Dec 24 to shareholders on record as of Dec 10.

CNO Financial remains focused on enhancing its shareholders' value, while maintaining adequate liquidity for its business strategies. The company has enough liquidity to support its share buybacks and dividend payouts without compromising its financial strength and credit ratings.

CNO Financial boasts strong cash flows and capital base. Cash and investments increased 2.6% while book value was up 3.4% as of Sep 30, 2015.

Earlier, the company's strong organic growth and excess capital generation allowed a $400-million increase in its share repurchase program in Nov 2014. The company deployed $319.1 million in total for the repurchase of shares in 2014. In the first nine months of 2015, CNO Financial bought back shares worth $311.2 million, thereby nearing the company guided range of $350-$425 million for 2015.

While the increased repurchase authorization will boost investor confidence, its execution will reduce share count and therefore should spur bottom-line growth.

CNO Financial currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the insurance space are Old Republic International Corporation ORI , Allianz SE AZSEY and FBL Financial Group Inc. FFG . While Old Republic sports a Zacks Rank #1 (Strong Buy), both Allianz SE and FBL Financial hold a Zacks Rank #2 (Buy).

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CNO FINL GRP (CNO): Free Stock Analysis Report

FBL FINL GRP-A (FFG): Free Stock Analysis Report

ALLIANZ AG-ADR (AZSEY): Free Stock Analysis Report

OLD REP INTL (ORI): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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