AM Best Assigns Issue Credit Rating to CNO Financial Group, Inc.'s New Senior Unsecured Notes
May 15, 2024 at 05:59 am EDT
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AM Best has assigned a Long-Term Issue Credit Rating of 'bbb' (Good) to the $700 million, 6.45% senior unsecured notes, due June 15, 2034, of CNO Financial Group, Inc. (CNO) (Carmel, IN) [NYSE: CNO].
The notes are callable at any time prior to March 15, 2034. The outlook assigned to this Credit Rating (rating) is stable. All other ratings of CNO and its subsidiaries are unchanged.
The proceeds from this debt issuance are expected to be used for general corporate purposes, which may include the redemption, repurchase or repayment at or prior to maturity of CNO's $500 million, 5.25% senior notes due 2025 and to pay any fees and expenses associated with its debt retirement and the current offering. AM Best has analyzed the amount of debt leverage and the impact of the new issuance is expected to increase leverage temporarily before returning to target levels upon the maturity of the $500 million notes in 2025. CNO's interest coverage before interest and taxes at year-end 2023 also are within range of AM Best's tolerances for the rating. The company has $566 million of cash and cash equivalents as of March 31, 2024, and in its most recent disclosure, reported a gain on the quarter of $112.3 million.
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.
CNO Financial Group, Inc. is a holding company for a group of insurance companies. The Company develops, markets and administers health insurance, annuity, individual life insurance and other insurance and financial services products. It is focused on serving middle-income pre-retiree and retired Americans. The Company primarily market its insurance products under its three primary brands: Bankers Life, Washington National and Colonial Penn. It markets its products through the Consumer and Worksite Divisions that reflect the customers served by the Company. The Consumer Division serves individual consumers, engaging with them on the phone, virtually, online, face-to-face with agents, or through a combination of sales channels. The Worksite Division focuses on the sale of voluntary benefit life and health insurance products in the workplace for businesses, associations, and other membership groups, interacting with customers at their place of employment and virtually.