Ashleigh Rogers
Long/short equity, growth at reasonable price, value, banks

CNO Financial Group Needs A Younger Policyholder Base

CNO Financial Group (NYSE:CNO) is the holding company behind Colonial Penn, Bankers life and other firms that develop, market, and administer individual life insurance, and to a lesser extent health insurance and annuities. The company has a well-respected somewhat diverse product portfolio and should earn about $1.09/share this year. With a stock price around $14.50 or so, you might think the company is a buy, after all based on these earnings expectations, that gives the stock a P/E of ~13.3x (ttm P/E of 18.3x based on ttm EPS of $0.80).

Exhibit 1: CNO Stock Price Performance Over the Last Year

(click to enlarge)


Despite this valuation, I believe CNO is hold and faces considerable risk from several...

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