CNO Financial Group, Inc.’s CNO brand, Washington National Insurance Company, recently unveiled its enhanced Hospital Indemnity Insurance product in a bid to provide additional benefits to consumer and worksite customers. This move by CNO Financial enhances its offerings for middle-income Americans, who are increasingly vulnerable to rising healthcare costs.
This move bodes well, as by adding coverage for mental illness and offering cash benefits for both inpatient and outpatient care, the product is designed to address the growing need for healthcare coverage. With nearly half of U.S. adults unable to cover unexpected medical bills of $500 without resorting to debt, this product would provide financial relief. Optional riders on top of base coverage enable customization, making it an attractive option for consumers seeking flexibility.
This enhanced product positions CNO to capture additional market share within the worksite and individual customer divisions. CNO is undertaking initiatives such as enhancing offerings and rolling out new products to deliver solid sales growth. Increased adoption of the plan could lead to higher premiums earned and customer retention. Benefits of the enhanced product include portability, renewability, consistency and flexibility.
This is a time-opportune move on the part of CNO, as the demand for supplemental insurance grows in response to rising healthcare costs. Moves like these should aid CNO achieve its 2024 earnings per share target in the range of $3.30-$3.50. CNO is resorting to programs to drive sales growth like adding new products and geographic expansions.
CNO’s Zacks Rank & Price Performance
CNO Financial currently carries a Zacks Rank #3 (Hold).
Shares of the company have gained 26.5% in the past three months compared with the industry’s 5.8% rise.
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Stocks to Consider
Investors interested in the broader Finance space may look at some better-ranked players like MGIC Investment Corporation MTG, Jackson Financial Inc. JXN and WisdomTree, Inc. WT. While MGIC Investment currently sports a Zacks Rank #1 (Strong Buy), Jackson Financial and WisdomTree carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MGIC Investment’s current-year earnings suggests a 9.1% year-over-year increase. During the past month, MTG has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for current-year revenues is pegged at $1.2 billion, indicating a 4.7% increase from a year ago.
The Zacks Consensus Estimate for Jackson Financial’s current-year earnings is pegged at $18.49 per share, which indicates 44% year-over-year growth. It witnessed two upward estimate revisions in the past 60 days against no downward movement. The consensus mark for JXN’s current-year revenues suggests a 116.7% surge from a year ago.
The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 67.6% year-over-year growth. During the past month, WT has witnessed two upward estimate revisions against none in the opposite direction. It beat earnings estimates twice in the past four quarters and met on the other occasions, with an average surprise of 5.9%.
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