Ex-Allianz Life Chief to Lead CNO Financial
May 18, 2017 by Greg Shulas
CNO Financial Group CEO Edward Bonach will retire next year after a six-year stint in the executive role, as the insurer’s board has tapped the former head of Allianz Life’s North American business, Gary Bhojwani, to be its next leader.
The Carmel, Ind.-based insurer revealed the succession plan Tuesday, stating in a release that Bhojwani will join CNO’s board immediately and then assume the CEO role on Jan. 1, 2018. CNO hired Bhojwani, 49, to be president in April 2016 after he oversaw Allianz Life Insurance of North America for an eight year-period ending in January 2015, including roles as president/CEO and chairman. He also served as a McKinsey & Co. advisor during the year in between his Allianz Life and CNO positions.
In a statement, Bhojwani pledged to continue CNO Financial’s commitment to the “middle-income market” and said he was “tremendously excited” for the opportunity to lead the firm. As president, Bhojwani has been tasked with overseeing “profitable growth” in CNO’s main business units: Bankers Life, Colonial Penn, and Washington National. He joined CNO at about the same time the board promoted then treasurer and investor relations executive Erik Helding to be CFO and executive VP.
CNO Financial chairman Neal Schneider credited the retiring Bonach, 63, for making “CNO a strong, thriving, focused and profitable insurance enterprise,” and called his achievements “immeasurable.” Bonach will be assisting Bhojwani with the hand over of power during the next seven months. Bonach joined CNO Financial as a CFO in 2007 and became chief executive in 2011. He was previously CFO of the National Life Group.
CNO Financial boasted annual premium collections of roughly $3.6 billion in 2016, an increase from $3.4 in 2015. In its annual report, CNO Financial said 2016 represented the fifth consecutive year of operating earnings per share growth, as the insurer reported operating earnings of $263 million, or $1.47 per diluted share, compared to $1.41 per diluted share the prior year.
The succession plan was publicized after the market closed Tuesday, the Indianapolis Business Journal reported. CNO’s stock increased 15 cents on the day, ending trading hours at $21.45 per share, and with a market capitalization of $3.71 billion.
