CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 25, 2020 09:00 AM (EST)
AM Best has assigned a Long-Term Issue Credit Rating of “bb+” to the $150 million 5.125% subordinated debentures due Nov. 25, 2060, issued by CNO Financial Group, Inc. (Carmel, IN). The outlook assigned to this Credit Rating (rating) is stable.
This issuance aims to provide the company with additional capital diversification and flexibility, as this is its first subordinated debenture offering. The company intends to use the net proceeds for general corporate use. As a result of the new issuance, AM Best expects the company’s financial leverage to increase but remain within tolerable levels. While pro-forma year-end 2019 GAAP coverage is low based, it is expected to increase for 2020, as the first nine months of 2020 of earnings have been more favorable. The company provides an estimated combined risk-based capital ratio of 428% as of third-quarter 2020, an improvement from the end of 2019.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.