Many publicly traded insurers are warning of their shareholder vote proxies that the COVID-19 pandemic might power them to skip holding in-person annual conferences this 12 months.
Gary Bhojwani, the chief govt officer of CNO Monetary Group Inc., began the letter on the entrance of his firm’s annual report back to shareholders by noting that, as he was ending the letter, he and most different CNO associates had been working from their properties for at the least the previous week, because of the pandemic.
CNO’s life insurance coverage firm models promote merchandise akin to life insurance coverage, annuities, Medicare complement insurance coverage and long-term care insurance coverage.
“Nothing is extra essential to us than making certain our skill to maintain the guarantees we make with each product we promote,” Bhojwani writes within the letter to shareholders. “We all know the duty that rests with us, and we take it very severely.”
- A duplicate of CNO’s annual report back to shareholders is obtainable right here.
- An article about Aflac’s brush with COVID-19 in Japan is obtainable right here.
Bhojwani says CNO’s portfolio funding managers are managing by a particularly difficult surroundings.
He says the 10-Treasury bond yield began out at 3% on the finish of 2018, fell to 1.8% in late 2019, and sank to 0.5% March 9.
CNO’s funding crew additionally faces geopolitical dangers, such because the oil market turbulence and the COVID-19 pandemic, together with excessive disruption within the inventory and bond markets, Bhojwani says.
However CNO’s funding managers obtained by the Sept. 11, 2001, assaults and the 2007-2009 monetary disaster, and the corporate’s investments have carried out higher than the comparability benchmarks, Bhojwani says.
He says CNO is making an attempt to make up for among the results of low rates of interest by slicing bills.
“We can not predict the challenges that the longer term will carry — new record-low rates of interest, the evolving COVID-19 state of affairs, recession or different disruptions,” Bhojwani says. “Nevertheless, I do know for sure that CNO, our associates and our brokers can be there for our policyholders after they want us most. We’re on this enterprise to assist be certain that our middle-market clients can relaxation simple understanding that their futures are safe. I’m assured that as an organization and a nation, we’ll come out of this stronger.”
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