Key Takeaways CNO delivered Q4 EPS of $1.47, beating estimates by 22.5% as earnings rose from the prior year.CNO's operating revenues grew 2.6% year over year, driven by higher collected premiums and fee income.CNO faced margin pressure as total benefits and expenses jumped 19.3% on higher policy benefits and costs.CNO Financial Group, Inc. (CNO) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.47, which beat the Zacks Consensus Estimate by 22.5%. The bottom line rose from $1.31 a year a ...

Financial Data and Key Metrics Changes - CNO Financial Group achieved an operating return on equity of 11.4% for 2025, an improvement from 10% in 2024, and is on track to reach a target of 12% by 2027 [14][19] - Operating earnings per diluted share increased by 11% to $4.40, with a full-year operating earnings per share of $4.02, exceeding the high end of original guidance [5][14] - The company returned $386 million to shareholders, marking an 11% increase over 2024, and raised its quarterly common stock dividend for the 13th consecutive year [6][24] Business Line Data and Key Metrics Changes - The consumer division reported a record total new annualized premium (NAP) growth of 15%, with life NAP up 10% and Medicare supplement NAP up 49% for the year [8][9] - The worksite division also achieved record insurance sales, up 15% for the full year, with life insurance sales increasing by 36% [11][12] - Overall, the company experienced its 14th consecutive quarter of sales growth and 12th consecutive quarter of growth in producing agent count [4][8] Market Data and Key Metrics Changes - Total health NAP increased by 22%, marking 14 consecutive quarters of growth, while Medicare Advantage policies sold decreased by 3% for the year [9][10] - The company holds over $18 billion in client assets, up 11% from 2024, reflecting strong growth in brokerage and advisory channels [10][11] - The investment portfolio remains high quality, with 97% rated investment grade and an average rating of single A [18] Company Strategy and Development Direction - CNO Financial Group focuses on the underserved middle-income market, leveraging a last-mile captive agent distribution model as a competitive advantage [5][6] - The company is investing in technology modernization with an expected investment of approximately $170 million over three years, with $20 million deployed in 2025 and $75 million expected in 2026 [22] - The strategic exit from the fee services business within the worksite division is progressing on schedule, expected to be largely complete in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the lack of visibility in the operating environment due to economic factors such as layoffs and job numbers, which could impact consumer behavior [28][31] - Despite potential headwinds, the company remains optimistic about the demand for Medicare products, with 11,000 Americans turning 65 each day [10][32] - The outlook for 2026 includes expected operating earnings per share between $4.25 and $4.45, reflecting an 8% increase at the midpoint from 2025 results [20][22] Other Important Information - The effective tax rate on operating income was 20.6% for the year, below the guidance of 22%-22.5%, due to tax strategies implemented in the fourth quarter [14][15] - The consolidated risk-based capital ratio was 380%, within the target range of 360%-390%, providing flexibility for growth and capital deployment [19] Q&A Session Summary Question: Earnings emergence and target returns - Management indicated that the time to hit target returns varies by product, but confidence remains in meeting ROE targets due to strong sales momentum [26][27] Question: Environment impact on recruiting and agent count growth - Management expects to grow producing agent count in 2026, emphasizing productivity over sheer numbers, while acknowledging economic pressures on discretionary purchases [28][30] Question: Sustainability of growth levels - Management believes that while Medicare Advantage sales may decline, Medicare supplement sales will continue to rise due to demographic trends [39][40] Question: Impact of Medicare Advantage distribution fees - Management has reflected expected pressures in Medicare Advantage in their projections, focusing more on Medicare supplement products [42][43] Question: Capital deployment strategy - Management plans to return excess capital to shareholders through share repurchases while being measured in capital deployment [46][47] Question: Investment portfolio exposure to software - The company has a small exposure to software in its investment portfolio, with a focus on mission-critical software [69][70]

Financial Data and Key Metrics Changes - CNO Financial Group achieved an operating return on equity of 11.4%, an improvement from 10% in 2024, and is on track to reach a target of 12% by 2027 [13][19] - Operating earnings per diluted share increased to $4.40, reflecting an 11% growth, with full-year operating earnings per share exceeding guidance at $4.02 [5][13] - The company returned $386 million to shareholders, marking an 11% increase over 2024, and raised its quarterly common stock dividend for the 13th consecutive year [7][23] Business Line Data and Key Metrics Changes - The consumer division reported a record total new annualized premium (NAP) growth of 15%, with life NAP up 10% and Medicare Supplement NAP up 49% for the year [8][9] - The worksite division also saw record insurance sales, up 15% for the full year, with life insurance sales increasing by 36% [11][12] - Overall, the company experienced its 14th consecutive quarter of sales growth across both divisions [4][11] Market Data and Key Metrics Changes - Total health NAP increased by 22%, marking 14 consecutive quarters of growth, while Medicare Advantage policies sold decreased by 3% for the year [9][10] - The company holds over $18 billion in client assets, reflecting an 11% increase from 2024, with brokerage and advisory client assets up 24% [10][11] Company Strategy and Development Direction - CNO Financial Group focuses on the underserved middle-income market, leveraging a last-mile captive agent distribution model as a competitive advantage [5][8] - The company is investing in technology modernization with a planned investment of approximately $170 million over three years, with $20 million deployed in 2025 and $75 million expected in 2026 [21][22] - The strategic exit from the fee services business within the worksite division is progressing on schedule, expected to be completed in the first half of 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the lack of visibility in the economic environment, citing potential challenges from layoffs and job market conditions affecting consumer behavior [30][31] - Despite economic pressures, the company remains optimistic about the demand for Medicare products, with 11,000 Americans turning 65 daily, presenting ongoing opportunities [10][32] - The company anticipates continued growth in producing agent count and productivity, emphasizing the importance of agent productivity over mere count [28][29] Other Important Information - The effective tax rate on operating income was 20.6%, below the guidance range, due to tax strategies implemented in the fourth quarter [14] - The company ended the year with a consolidated risk-based capital ratio of 380%, within the target range of 360%-390% [17][18] Q&A Session Summary Question: Earnings emergence and target returns - Management indicated that the time to hit target returns varies by product, but confidence remains high due to strong sales trends [25][26] Question: Environment outlook and agent count growth - Management expects to grow producing agent count in 2026, emphasizing productivity as the primary focus [28][29] Question: Sustainability of growth levels - Management acknowledged potential headwinds but remains comfortable with guidance, expecting continued growth in Medicare Supplement sales [40][42] Question: Impact of Medicare Advantage distribution fees - Management reflected expectations of pressure on Medicare Advantage, focusing more on Medicare Supplement [44] Question: Capital deployment strategy - Management plans to return excess capital to shareholders through share repurchases while being measured in capital deployment [47][48] Question: Investment portfolio exposure to software - Management reported a small exposure to software in the investment portfolio, with a focus on mission-critical software [72][73] Question: Dynamics of turning 65 and product positioning - Management expects the number of individuals turning 65 to remain stable until around 2030, presenting ongoing opportunities for the company [79][81]

Financial Data and Key Metrics Changes - CNO Financial Group achieved an operating return on equity of 11.4% for 2025, up from 10% in 2024, reflecting strong operational momentum [12][21] - Operating earnings per diluted share increased by 11% to $4.40, with full-year operating earnings per share exceeding guidance at $4.02 [5][12] - The company returned $386 million to shareholders, marking an 11% increase over 2024, and raised its quarterly common stock dividend for the 13th consecutive year [6][12] Business Line Data and Key Metrics Changes - The consumer division reported a record total new annualized premium (NAP) growth of 15%, with life NAP up 10% and Medicare supplement NAP up 49% for the year [7][8] - The worksite division also saw record insurance sales, with a 15% increase for the full year and 13% for the fourth quarter, driven by life insurance sales up 36% and hospital indemnity insurance up 41% [10][11] Market Data and Key Metrics Changes - Total health NAP increased by 22%, marking 14 consecutive quarters of growth, while Medicare Advantage policies sold decreased by 3% for the year [8][9] - The company expects overall demand for Medicare products to grow, with approximately 11,000 Americans turning 65 each day, indicating a stable market opportunity [9][29] Company Strategy and Development Direction - CNO Financial Group focuses on the underserved middle-income market, leveraging a last-mile captive agent distribution model as a competitive advantage [5][6] - The company is investing in technology modernization with a planned investment of approximately $170 million over three years, with $20 million deployed in 2025 and $75 million expected in 2026 [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about economic visibility due to layoffs and job market challenges, which could impact discretionary purchases but noted the ongoing opportunity from the aging population [28][29] - The company anticipates continued growth in producing agent count and productivity, emphasizing that agent productivity is a primary focus for 2026 [26][27] Other Important Information - CNO Financial Group's consolidated risk-based capital ratio was 380%, within the target range of 360%-390%, indicating a strong capital position [16][17] - The company issued $400 million of fixed-rate bonds in the fourth quarter, contributing to disciplined portfolio management and strong earnings fundamentals [15][16] Q&A Session Summary Question: Earnings emergence and target returns - Management indicated that the time to hit target returns varies by product, but confidence remains in meeting ROE targets due to strong sales momentum [23][24] Question: Environment impact on recruiting and agent count growth - Management expects to grow producing agent count in 2026, emphasizing productivity over sheer numbers, while acknowledging economic pressures on consumer spending [25][26] Question: Sustainability of growth levels - Management believes growth is sustainable, with Medicare supplement sales expected to rise while Medicare Advantage sales may decline due to market conditions [37][38] Question: Impact of Medicare Advantage distribution fees - Management has reflected expected pressures in Medicare Advantage in their projections, focusing more on Medicare supplement products [40][41] Question: Capital deployment strategy - Management plans to return excess capital to shareholders through share repurchases while being measured in capital deployment [44][46] Question: Investment portfolio exposure to software - The company has limited exposure to software in its investment portfolio, focusing on mission-critical software and maintaining a cautious approach to risk [72][73]

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Fourth Quarter 2025 Financial and operating results for the period ended December 31, 2025 February 5, 2026 Unless otherwise specified, comparisons in this presentation are between 4Q24 and 4Q25. 1 IMPORTANT LEGAL INFORMATION Forward-Looking Statements Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future results of operations and capital plans. We caution investor ...

CNO Financial (CNO) came out with quarterly earnings of $1.47 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.31 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +22.50%. A quarter ago, it was expected that this insurance holding company would post earnings of $0.95 per share when it actually produced earnings of $0.96, delivering a surprise of +1.05%.Over the last four quarter ...

Financial Position - Total assets increased to $38,790.6 million in Q4 2025, up from $37,429.2 million in Q1 2025, reflecting a growth of 3.6%[5] - Total liabilities rose to $36,152.4 million in Q4 2025, compared to $34,874.1 million in Q1 2025, marking an increase of 3.7%[5] - Total shareholders' equity was $2,638.2 million in Q4 2025, slightly up from $2,555.1 million in Q1 2025, indicating an increase of 3.2%[5] - Cash and cash equivalents decreased to $956.1 million in Q4 2025 from $1,656.7 million in Q1 2025, a decline of 42.2%[5] Policyholder Accounts - Policyholder account balances reached $18,912.6 million in Q4 2025, up from $17,314.3 million in Q1 2025, representing a growth of 9.2%[5] - Future policy benefits were $11,898.0 million in Q4 2025, slightly down from $11,773.0 million in Q1 2025, a decrease of 1.1%[5] Revenue and Income - Total revenues for 2024 YTD reached $4,449.5 million, with Q4 2024 revenues at $1,097.2 million, a decrease of 4.5% compared to Q4 2023[8] - Net income for 2024 YTD was $420.8 million, with Q4 2024 net income at $182.9 million, reflecting a significant increase from $9.3 million in Q3 2024[9] - Insurance policy income for Q4 2024 was $643.6 million, showing a slight increase from $645.0 million in Q3 2024[8] - The total insurance product margin for 2024 YTD was $1,040.0 million, with Q4 2024 margin at $253.1 million, down from $282.2 million in Q3 2024[9] - Operating earnings before taxes for 2024 YTD were $550.8 million, with Q4 2024 earnings at $173.9 million, an increase from $153.5 million in Q3 2024[9] Expenses and Losses - Total benefits and expenses for 2024 YTD were $3,909.6 million, with Q4 2024 expenses at $976.3 million, reflecting an increase from $1,118.6 million in Q3 2024[8] - The company reported realized investment losses of $26.2 million for 2024 YTD, with Q4 losses at $21.6 million, compared to $12.9 million in Q3 2024[8] Market Expansion and Strategy - The company is focusing on expanding its market presence and enhancing product offerings, with new strategies expected to be discussed in future reports[3] - The company plans to continue focusing on market expansion and new product development to enhance future growth prospects[10] Investment Income - Investment income allocated to product lines showed a positive trend, contributing to overall financial stability and growth[3] - Net investment income for annuity products increased to $621.3 million YTD 2024, with Q4 2024 projected at $160.3 million[11] - Total investment income not allocated to product lines reached $167.9 million in Q4 2023, with a year-to-date total of $169.4 million[30] Insurance Product Performance - Insurance policy income for annuity products reached $35.5 million YTD 2024, with a quarterly increase to $11.2 million in Q3 2024[11] - Health insurance policy income totaled $1,661.4 million YTD 2024, with Q4 2024 expected to be $420.9 million[11] - Total insurance product margin for the year ended December 31, 2025, was $1,067.6 million, a decrease of 4.5% from $1,119.0 million in the previous year[39] Shareholder Information - Basic shares outstanding at the end of Q4 2024 were 101,619.0 thousand, down from 103,923.0 thousand in Q3 2024[23] - The company repurchased 1,233.7 thousand shares in Q4 2024, totaling 3,958.1 thousand shares repurchased YTD[23] Capital and Reserves - Total statutory capital, surplus, AVR & IMR was $2,199.4 million as of Q4 2024[27] - Risk-based capital ratio was 383% in Q4 2024, consistent with the previous quarter[27] - Capital and surplus totaled $1,865.2 million in Q4 2024, reflecting a slight increase from $1,839.8 million in Q3 2024[27] Yield and Investment Performance - Average yield on investments allocated to annuities rose from 4.61% in Q1 2024 to 4.89% in Q4 2024, indicating an increase of 0.28 percentage points[34] - Total average yield across all investments was 4.91% in Q4 2024, an increase from 4.70% in Q1 2024, representing a growth of 0.21 percentage points[34] Future Projections - The company plans to enhance its operational results by identifying the impact of significant items on net operating income for 2025[38] - The annuity margin for the year ended December 31, 2025, was $238.6 million, a decrease of 6.5% from $254.0 million in 2024[39]

CARMEL, Ind., Feb. 5, 2026 /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) today reported its fourth quarter and full year 2025 financial results: "CNO once again delivered an excellent quarter and full-year performance, demonstrating the consistent, repeatable results that continue to drive our momentum," said Gary C. Bhojwani, chief executive officer. "We posted our 14th consecutive quarter of strong insurance sales, with total new annualized premiums up 15% for the year, and set multiple production ...

Steve Janoson promoted to Senior Vice President, Direct and Independent Distribution;Rachel Spehler promoted to Senior Vice President, Deputy General Counsel and SecretaryCARMEL, Ind., Jan. 21, 2026 /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) announced today the promotions of Steve Janoson to Senior Vice President, Direct and Independent Distribution and Rachel Spehler to Senior Vice President, Deputy General Counsel and Secretary. Both promotions are effective immediately.Janoson most recently s ...