Bloomberg News

CNO Extends Gain on ‘Screaming Buy’ Call from CEO Bonach

June 14, 2012

CNO Financial Group Inc. (CNO:US), the insurer that counts John Paulson’s hedge fund as its biggest investor, rose the most this year after the company’s chief executive officer said repurchases are attractive.

CNO jumped 6 percent to close at $7.20 in New York, the biggest gain since Dec. 20. The Carmel, Indiana-based insurer advanced 1.6 percent yesterday after analysts at Goldman Sachs Group Inc. (GS:US) added the company to its “conviction buy” list on the prospect of more stock buybacks.

CEO Edward Bonach said yesterday after the market closed that repurchases are a priority for the company, based on the share price. The insurer trades for less than half its book value, a measure of assets minus liabilities.

“We think it’s a screaming buy from the standpoint of our capital deployment,” Bonach said at an investor conference in New York.

To contact the reporter on this story: Zachary Tracer in New York at Ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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Companies Mentioned

  • CNO
    (CNO Financial Group Inc)
    • $17.55 USD
    • 0.21
    • 1.2%
  • GS
    (Goldman Sachs Group Inc/The)
    • $190.07 USD
    • 0.48
    • 0.25%
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