CNO Financial Group Inc. consolidated its business into two new divisions from three operating business segments as part of its efforts to reorganize the company toward a more customer-centric structure.
The company appointed Scott Goldberg and Mike Heard presidents of its new consumer division and worksite division, respectively. The consumer division will focus on individual customers, while the worksite division will focus on worksite and group sales for businesses, associations and other membership groups.
CNO Financial will also centralize certain functional areas that were previously under the three business segments, including marketing, business unit finance, sales training and support and agent recruiting.
The company will continue to market its products under its Bankers Life, Washington National and Colonial Penn brands following the reorganization. All policies, contracts and certificate terms, conditions and benefits will also remain unchanged.
Joel Schwartz will also step down as president of Colonial Penn Life Insurance Co. following the reorganization.
CNO Financial expects an approximately $22 million reduction in its gross annual run-rate spending by the end of 2020 through the reorganization. The company intends to invest approximately $11 million of the annual run-rate savings to support various technology and growth initiatives, largely through outsourced services and new positions.
The company will report under a different segment structure starting in the first quarter of 2020.