[CNOinc.com].SOURCE CNO Financial Group## 21%[more press release views with Request a Demo]## Also from this source### CNO Financial Group Declares $0.17 Quarterly Dividend and Announces Virtual Annual Meeting Date[CNO Financial Group, Inc. (NYSE: CNO) announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share on the...]### CNO Financial Group Reports Fourth Quarter and Full Year 2025 Results[CNO Financial Group, Inc. (NYSE: CNO) today reported its fourth quarter a ...

Core Insights - CNO Financial Group, Inc. is a significant player in the insurance industry, offering health and life insurance products through subsidiaries like Bankers Life and Casualty Company, Colonial Penn Life Insurance Company, and Washington National Insurance Company [1] - The company competes with major insurance firms such as MetLife and Prudential Financial [1] Financial Metrics - CNO's quarterly cash dividend is set at $0.17 per share, payable on March 24, 2026, to shareholders recorded by March 10, 2026 [2] - The price-to-earnings (P/E) ratio is approximately 32.45, indicating strong investor confidence in the company's earnings potential [2] - The price-to-sales ratio stands at 0.92, suggesting that the market values CNO's sales at less than one times its revenue [2] - The enterprise value to sales ratio is 1.60, reflecting the company's total valuation compared to its sales [2] - The enterprise value to operating cash flow ratio is around 10.71, indicating how CNO's valuation compares to its cash flow from operations [2] - The earnings yield is about 3.08%, providing insight into the return on investment for shareholders [2] Debt and Governance - CNO's debt-to-equity ratio is 1.54, highlighting the company's reliance on debt financing relative to its equity [3] - The annual meeting of shareholders is scheduled for May 12, 2026, and will be held virtually, with participation open to shareholders recorded by March 16, 2026 [3] - Nina Henderson, a long-serving Board member, will retire at the end of her term, concluding with the annual meeting [3]

Core Viewpoint - CNO Financial Group has declared a quarterly cash dividend of $0.17 per share and announced the date for its virtual annual meeting, alongside the retirement of a long-serving board member [1]. Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.17 per share on common shares, payable on March 24, 2026, to shareholders of record as of March 10, 2026 [1]. Annual Meeting Details - The annual meeting of shareholders will be held virtually on May 12, 2026, at 8:00 a.m. ET, with participation available for holders of record as of March 16, 2026 [1]. Board Member Retirement - Nina Henderson will retire from the Board of Directors at the end of her current term, which concludes with the annual meeting. She has served on the Board since 2012 and has been a key figure in various committees [1]. Company Overview - CNO Financial Group, Inc. provides life and health insurance, annuities, and financial services, managing 3.2 million policies and holding total assets of $38.8 billion [1].

Core Viewpoint - CNO Financial Group reported strong financial performance in 2025, exceeding guidance with significant growth in operating earnings, sales, and capital position, while maintaining a focus on agent productivity and navigating macroeconomic uncertainties. Financial Performance - Operating earnings per diluted share were $4.40, reflecting an 11% increase, driven by strong insurance product margins and investment performance [2] - The company returned $386 million to shareholders, including $320 million in share buybacks, while raising its quarterly common stock dividend for the 13th consecutive year [1][6] - Operating return on equity (ROE) improved to 11.4% excluding significant items, up from a 10% run rate in 2024 [13] Sales and Production Growth - CNO achieved record total new annualized premium (NAP) growth of 15%, supported by 14 consecutive quarters of sales growth and an increase in producing agent count [3][7] - In the consumer division, life NAP increased by 10%, with direct-to-consumer life sales up 20%, benefiting from technology-driven productivity enhancements [8] - The worksite division reported record insurance sales up 15% for the full year, marking the second consecutive year of record production [10] Capital Position and Investment Strategy - The company holds a strong capital position with a risk-based capital (RBC) ratio of 380% and $31 billion in invested assets, 97% of which are investment grade [6][19] - CNO plans to continue a three-year technology modernization initiative totaling approximately $170 million, with $75 million expected in 2026 [5][21] - New investments in the quarter totaled about $1.6 billion, with an average rating of single-A and an average duration of six years [17] 2026 Outlook - Management expects operating EPS of $4.25 to $4.45 and free cash flow of $200 million to $250 million for 2026, assuming a stable macro environment [5][20] - The company anticipates continued growth in producing agent count while emphasizing productivity as a primary focus [22] - CNO expects ongoing pressure on the Medicare Advantage market but strength in Medicare Supplement sales [23]

Core Insights - CNO Financial Group, Inc. reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.47, exceeding the Zacks Consensus Estimate by 22.5% and increasing from $1.31 a year ago [1][9] - Operating revenues reached $1.2 billion, a 2.6% year-over-year increase, surpassing the consensus mark by 17.7% [1][9] Financial Performance - Total insurance policy income rose 2.9% year over year to $662.2 million, beating the Zacks Consensus Estimate of $655.4 million, driven by improved collected premiums from annuity, life, and health products [3] - Collected premiums from annuity, health, and life products totaled $1.2 billion, reflecting a 3.4% year-over-year increase, with annuity premiums at $508.3 million (up 3.1%), health premiums at $435.7 million (up 3.8%), and life premiums at $247.6 million (up 3.3%) [5][6] - New annualized premiums for health products surged 30.7% year over year, while life products increased by 0.9% [6] Expenses and Losses - Total benefits and expenses escalated 19.3% year over year to $1 billion, attributed to higher insurance policy benefits and operating costs [6][9] - Net investment losses narrowed to $25.2 million from $35.1 million in the prior-year quarter [4] Financial Position - As of December 31, 2025, CNO Financial had unrestricted cash and cash equivalents of $956.1 million, down 42.3% from the end of 2024 [7] - Total assets increased by 2.5% year over year to $38.8 billion, while total shareholders' equity grew 4.9% to $2.6 billion [7] - Book value per common share rose 12.8% to $27.92 [8] Shareholder Returns - CNO Financial returned $60 million to shareholders through share buybacks and $16.2 million in dividends during the fourth quarter [10] Future Guidance - For 2026, CNO anticipates operating EPS in the range of $4.25-$4.45, indicating a 1.1% decline from the 2025 figure of $4.40 [11] - The company estimates excess cash flow of $200-$250 million and projects an expense ratio between 18.8-19.2% for 2026 [11]

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 ...