CNO Financial Group(CNO) ZACKS·2025-02-05 16:00Industry Overview - The insurance industry is expected to benefit from improved pricing, strong retention rates, an active M&A environment, product redesign, and reinsurance agreements [1] - Rising expenses and interest rate cuts are likely to negatively impact performance [1] Earnings Expectations - Total earnings for finance companies in Q4 2024 are anticipated to rise by 22.6% year-over-year, with revenues expected to improve by 6.2% [2] - Rising premiums are expected to contribute positively to top-line growth for insurance companies in Q4 [3] Investment Strategies - Insurers are likely to seek alternative investments such as private equity, hedge funds, and real estate due to interest rate cuts [4] - M&A activity is expected to increase as lower interest rates encourage insurers to seek loans for expansion [4] Market Trends - The growing middle class in emerging markets and declining pension provisions are expected to drive growth in savings products [5] - The bundling of products and redesigning to meet consumer needs are changing the insurance landscape, enhancing product demand and retention [6] Technology Investments - Significant technology investments are anticipated to automate processes and improve operational efficiencies, potentially curbing costs and aiding margins [7] Company-Specific Insights - Reinsurance Group of America (RGA) is expected to report a 10.4% rise in earnings per share (EPS) to 5.8 billion, reflecting an 11.5% growth [10] - CNO Financial's EPS is estimated at 949.7 million [12] - Lincoln National's EPS is projected to improve by 20.7% to 4.7 billion, more than doubling from the previous year [15] - Principal Financial's EPS is estimated at 4 billion [17]