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Cno Financial Group, Inc. (CNO) |
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Cno Financial Group Inc's Comment on Competitors and Industry Peers
The markets in which we operate are competitive. Compared to CNO, many companies
in the financial services industry are larger, have greater capital, technological
and marketing resources, have greater access to capital and other sources of liquidity
at a lower cost, offer broader and more diversified product lines, have greater
brand recognition, have larger staffs and higher ratings. Banks, securities brokerage
firms and other financial intermediaries also market insurance products or offer
competing products, such as mutual fund products, traditional bank investments
and other investment and retirement funding alternatives. We also compete with
many of these companies and others in providing services for fees. In most areas,
competition is based on a number of factors including pricing, service provided
to distributors and policyholders and ratings. CNO's subsidiaries must also compete
to attract and retain the allegiance of agents, insurance brokers and marketing
companies.
In the individual health insurance business, companies compete primarily on
the bases of marketing, service and price. Pursuant to federal regulations,
the Medicare supplement products offered by all companies have standardized
policy features. This increases the comparability of such policies and intensifies
competition based on other factors. See "Insurance Underwriting" and
"Governmental Regulation" for additional information. In addition
to competing with the products of other insurance companies, commercial banks,
mutual funds and broker dealers, our insurance products compete with health
maintenance organizations, preferred provider organizations and other health
care-related institutions which provide medical benefits based on contractual
agreements.
Our principal competitors vary by product line. Our main competitors for agent-sold
long-term care insurance products include Genworth, Northwestern Mutual and
John Hancock Financial Services. Our main competitors for agent-sold Medicare
supplement insurance products include Blue Cross and Blue Shield Plans, Mutual
of Omaha and United HealthCare. Our main competitors for life insurance sold
through direct marketing channels include Gerber Life, MetLife, Mutual of Omaha,
New York Life, Massachusetts Mutual Life Insurance Company and subsidiaries
of Torchmark Corporation ("Torchmark"). Our main competitors for supplemental
health products sold through our Washington National segment include AFLAC,
subsidiaries of Allstate, Colonial Life and Accident Company and subsidiaries
of Torchmark.
In some of our product lines, such as life insurance and fixed annuities, we
have a relatively small market share. Even in some of the lines in which we
are one of the top writers, our market share is relatively small.
Most of our major competitors have higher financial strength ratings than we
do. Many of our competitors are larger companies that have greater capital,
technological and marketing resources and have access to capital at a lower
cost. Recent industry consolidation, including business combinations among insurance
and other financial services companies, has resulted in larger competitors with
even greater financial resources. Furthermore, changes in federal law have narrowed
the historical separation between banks and insurance companies, enabling traditional
banking institutions to enter the insurance and annuity markets and further
increase competition. This increased competition may harm our ability to maintain
or improve our profitability.
In addition, because the actual cost of products is unknown when they are sold,
we are subject to competitors who may sell a product at a price that does not
cover its actual cost. Accordingly, if we do not also lower our prices for similar
products, we may lose market share to these competitors. If we lower our prices
to maintain market share, our profitability will decline.
The Colonial Penn segment has faced increased competition from other insurance
companies who also distribute products through direct marketing. In addition,
the demand and cost of television advertising appropriate for Colonial Penn's
campaigns fluctuates from period to period and will impact the average cost
to generate a TV lead.
We must attract and retain sales representatives to sell our insurance and
annuity products. Strong competition exists among insurance and financial services
companies for sales representatives. We compete for sales representatives primarily
on the basis of our financial position, financial strength ratings, support
services, compensation, products and product features. Our competitiveness for
such agents also depends upon the relationships we develop with these agents.
Total Segment Market Share Q2 2019 |
*Market share is not actual measurement, only performance comparison of companies which report and operate within the same segment.
CNO's vs. Competition, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
TICKER |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Cno Financial Group, Inc. |
CNO |
2,843 |
4,262 |
-412 |
3,500 |
Aflac Incorporated |
AFL |
39,416 |
21,832 |
3,048 |
9,235 |
Cigna Corporation |
CI |
75,281 |
129,657 |
4,283 |
37,200 |
Humana Inc |
HUM |
47,154 |
60,726 |
2,505 |
57,000 |
Metlife Inc |
MET |
47,095 |
65,750 |
6,108 |
66,000 |
Principal Financial Group, inc |
PFG |
15,173 |
15,946 |
1,361 |
14,873 |
Unitedhealth Group Incorporated |
UNH |
270,103 |
235,876 |
13,390 |
170,000 |
Unum Group |
UNM |
6,106 |
11,845 |
1,053 |
9,500 |
Wellpoint, Inc. |
WLP |
0 |
71,427 |
2,570 |
0 |
COVENTRY HEALTH CARE, INC. |
CVH |
0 |
0 |
0 |
0 |
Assurant, Inc. |
AIZ |
8,591 |
9,083 |
431 |
17,600 |
Anthem, Inc. |
ANTM |
74,170 |
99,282 |
4,013 |
48,200 |
Investors Heritage Capital Corp |
IHRC |
49 |
63 |
1 |
1 |
Security National Financial Corporation |
SNFCA |
95 |
267 |
9 |
1,271 |
Aetna Inc |
AET |
70,069 |
60,705 |
3,503 |
48,800 |
Centene Corporation |
CNC |
25,609 |
72,335 |
1,348 |
18,200 |
American Independence Corp. |
AMIC |
0 |
0 |
0 |
268 |
Natur International Corp. |
FUTU |
1,784 |
2 |
0 |
150 |
Triple-s Management Corp |
GTS |
463 |
3,201 |
16 |
3,257 |
Health Net Inc |
HNT |
0 |
0 |
0 |
50 |
Molina Healthcare, Inc. |
MOH |
8,483 |
17,219 |
770 |
21,000 |
Universal American Corp. |
UAM |
0 |
0 |
0 |
961 |
Wellcare Health Plans, inc. |
WCG |
16,455 |
26,983 |
631 |
6,900 |
Allstate Corp |
ALL |
36,996 |
42,684 |
2,805 |
38,800 |
American International Group, Inc. |
AIG |
46,457 |
50,491 |
2,740 |
65,000 |
Aon Plc |
AON |
49,252 |
10,898 |
1,544 |
69,000 |
Bb&t Corporation |
BBT |
42,079 |
11,293 |
3,316 |
33,400 |
Cincinnati Financial Corp |
CINF |
17,538 |
8,397 |
919 |
4,305 |
Lincoln National Corporation |
LNC |
11,206 |
17,444 |
853 |
9,627 |
Prudential Financial Inc |
PRU |
38,211 |
64,623 |
3,462 |
48,331 |
Safeco Corporation |
SAFC |
0 |
0 |
0 |
0 |
Ambac Financial Group, Inc. |
ABK |
0 |
0 |
0 |
0 |
Mbia Inc |
MBI |
732 |
224 |
-123 |
252 |
Hartford Financial Services Group Inc |
HIG |
22,146 |
18,955 |
1,801 |
17,500 |
Loews Corp |
L |
15,166 |
14,342 |
449 |
17,510 |
Xl Group Ltd |
XL |
15,041 |
11,388 |
-543 |
4,663 |
Genworth Financial Inc |
GNW |
2,116 |
8,393 |
179 |
5,300 |
BERKSHIRE HATHAWAY INC. |
BRK |
0 |
0 |
0 |
316,000 |
First Midwest Bancorp, Inc. |
FMBI |
2,403 |
663 |
188 |
1,790 |
Firstmerit Corp |
FMER |
0 |
956 |
185 |
4,112 |
Fnb Corp |
FNB |
3,928 |
1,155 |
390 |
2,747 |
International Bancshares Corporation |
IBOC |
2,820 |
570 |
212 |
2,822 |
Mb Financial Inc |
MBFI |
3,598 |
955 |
331 |
2,980 |
Old National Bancorp |
ONB |
3,098 |
788 |
232 |
2,652 |
Renasant Corp |
RNST |
2,095 |
597 |
174 |
1,996 |
Simmons First National Corp |
SFNC |
2,472 |
673 |
479 |
1,946 |
Svb Financial Group |
SIVB |
12,417 |
2,978 |
1,184 |
2,089 |
Santander Holdings Usa, Inc. |
SOVxC |
0 |
7,695 |
1,051 |
15,150 |
South State Corp |
SSB |
2,888 |
631 |
186 |
2,058 |
S&t Bancorp Inc |
STBA |
1,303 |
275 |
103 |
1,067 |
Trustmark Corp |
TRMK |
2,220 |
600 |
153 |
2,941 |
Partnerre Ltd. |
PRE |
0 |
5,590 |
-86 |
1,035 |
Atlantic American Corp |
AAME |
42 |
195 |
-1 |
147 |
American National Insurance Co |
ANAT |
3,142 |
3,651 |
413 |
4,736 |
Citizens, Inc. |
CIA |
353 |
246 |
0 |
620 |
Fbl Financial Group, Inc. |
FFG |
1,397 |
725 |
95 |
1,637 |
Fidelity & Guaranty Life |
FGL |
1,532 |
1,585 |
243 |
220 |
First Trinity Financial Corp. |
FTFC |
0 |
47 |
6 |
9 |
Kansas City Life Insurance Co |
KCLI |
366 |
484 |
30 |
436 |
National Security Group Inc |
NSEC |
32 |
66 |
1 |
1 |
National Western Life Group, Inc. |
NWLI |
866 |
626 |
116 |
261 |
Protective Life Corporation |
PL |
0 |
5,799 |
457 |
2,541 |
Phoenix Companies Inc |
PNX |
0 |
0 |
0 |
630 |
Symetra Financial Corporation |
SYA |
0 |
2,111 |
210 |
1,400 |
Utg Inc |
UTGN |
112 |
27 |
3 |
42 |
Voya Financial, Inc. |
VOYA |
8,330 |
8,962 |
640 |
7,000 |
China United Insurance Service, Inc. |
CUII |
88 |
89 |
8 |
2,239 |
Horace Mann Educators Corporation |
HMN |
1,878 |
1,378 |
131 |
1,350 |
Onebeacon Insurance Group, Ltd. |
OB |
1,734 |
1,242 |
147 |
1,150 |
United Fire Group Inc |
UFCS |
1,096 |
1,154 |
22 |
1,057 |
White Mountains Insurance Group, Ltd |
WTM |
3,452 |
1,292 |
228 |
2,973 |
Axis Capital Holdings Ltd |
AXS |
4,961 |
5,083 |
136 |
1,225 |
Kemper Corporation |
KMPR |
4,940 |
3,328 |
376 |
5,600 |
National General Holdings Corp. |
NGHC |
2,512 |
4,997 |
321 |
4,630 |
Midwest Holding Inc. |
MIDH |
0 |
2 |
-6 |
19 |
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SUBTOTAL |
1,081,956 |
1,232,808 |
70,386 |
1,248,962 |
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