CNO Financial Group (CNO) 2024 KBW Insurance Conference summary

Strategic evolution and growth

• Transitioned from a focus on fixing and stabilizing to positioning as a growth story, with eight to nine quarters of demonstrated progress.

• Unique focus on the middle market, serving consumers with net worths below $100,000, differentiating from competitors.

• Diversified business model with consumer and worksite divisions, and a broad product mix including life, annuities, and Medicare products.

• Integrated captive agent and direct-to-consumer channels, with one-third of agent sales sourced from D2C leads.

• Worksite business enhanced by bolt-on acquisitions, though full potential of technology and advice platforms is still being realized.

Agent productivity and distribution

• Shifted emphasis from agent recruitment to productivity and retention, resulting in higher agent success and lower turnover.

• Increased reliance on personal referrals and support structures for agents, with a growing number holding securities licenses.

• Broker-dealer established, enabling agents to offer broader financial services and annuities, with customer assets reaching $12–15 billion.

• Direct-to-consumer and agent channels work synergistically, with seamless lead handoffs and a growing share of non-TV advertising.

Product strategy and performance

• Medicare Supplement product relaunched in 2022, leading to strong sales growth; now represents 14 Medicare Advantage carriers.

• Short-term care products dominate long-term care offerings, with 90% of policies having benefit periods of one year or less.

• Long-term care risk de-risked via a 2018 reinsurance deal; retained book is low risk, with less than 3% lifetime benefits and high average attained age.

• Continued expansion into retirement products and advisory services, moving upmarket within the middle segment.