Core Viewpoint - CNO Financial Group, Inc. (CNO) experienced a 2% decline in shares following the release of its second-quarter 2025 results, primarily due to increased total expenses and net investment losses, although strong annuity collected premiums and rising new annualized premiums provided some offset [1][10]. Financial Performance - CNO reported adjusted earnings per share (EPS) of 87 cents, exceeding the Zacks Consensus Estimate by 2.4%, but reflecting a 17% decrease year over year [2][10]. - Operating revenues reached $1.2 billion, marking an 8% year-over-year increase and surpassing the consensus estimate by 19.3% [2]. - Total insurance policy income rose 1.5% year over year to $651.3 million, falling short of the Zacks Consensus Estimate of $653 million [3]. Investment and Premiums - Net investment losses were recorded at $21.8 million, slightly better than the previous year's loss of $21.9 million [4]. - Annuity collected premiums increased by 19% year over year to $520.5 million, while health collected premiums rose 2.3% to $409.5 million [5][10]. - Total collected premiums advanced 8.7% year over year to $1.2 billion [5]. Expense and Financial Ratios - Total benefits and expenses surged 12.9% year over year to $1 billion, driven by higher insurance policy benefits and operating costs [6][10]. - The debt-to-capital ratio improved by 760 basis points to 34.6% at the end of the second quarter [7]. - Book value per common share increased by 4.7% to $25.92, with operating return on equity improving by 120 basis points to 11.2% [8]. Shareholder Returns - CNO returned $100 million to shareholders through share buybacks and $16.7 million in dividends during the second quarter, with a remaining repurchase capacity of $540.4 million [11]. Future Guidance - CNO anticipates operating EPS in the range of $3.70-$3.90 for 2025 and expects excess cash flow between $200-$250 million [12]. - The company projects an expense ratio of 19-19.2%, an improvement from the previous estimate [12].

Financial Data and Key Metrics Changes - CNO Financial Group reported operating earnings per diluted share of $0.87, benefiting from favorable insurance product margins and solid investment results [7][22] - Book value per diluted share, excluding AOCI, increased by 6% to $38.5 [8] - The company returned $117 million to shareholders in the quarter and $234 million year-to-date [8][22] - Operating return on equity was 11.8% to 12.1% on a trailing twelve-month basis, with a target of around 10.5% for the full year 2025 [23][29] Business Line Data and Key Metrics Changes - The Consumer division achieved record total new annualized premiums of $120 million, up 17%, with double-digit growth in both divisions [7][10] - Annuity collected premiums surpassed $500 million for the first time in a single quarter, driven by 19% growth [11] - Life and Health NAP posted double-digit growth of 17%, with total life insurance up 20% and direct-to-consumer life insurance sales up 29% [13][14] - Worksite life and health NAP increased by 16%, with life insurance sales up 54% [17][18] Market Data and Key Metrics Changes - Client assets in brokerage and advisory rose by 27% to $4.6 billion, with new accounts up 13% [12] - The market value of invested assets grew by 5% in the quarter, with 96% of the fixed maturity portfolio rated investment grade [28] Company Strategy and Development Direction - CNO aims to serve the growing needs of the middle-income market with diverse products and distribution channels [31] - The company is focused on improving return on equity and delivering consistent, repeatable results [31][32] - Investments in technology are enhancing customer experience and operational efficiency [17][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained profitable growth and the ability to navigate the evolving economic environment [31][32] - The company anticipates continued strong sales momentum and improved profitability in the second half of the year [31] Other Important Information - CNO reaffirmed its 2025 guidance, lowering the upper bound of the expense ratio range to 19.2% from 19.4% [29] - The company is engaged in discussions with regulators regarding opportunities with its Bermuda operation [97][98] Q&A Session Summary Question: Can you provide more color on the momentum from the web digital piece of direct-to-consumer sales? - Management noted strong growth in direct-to-consumer sales, particularly from web and digital channels, which were up 39% year-over-year [36][37] Question: Can you discuss the expense experience in the quarter and the change in guidance? - Management indicated that expenses were generally in line with expectations, with a better expense ratio reflecting improved operating leverage [52] Question: What is the claims experience for long-term care? - Management reported a continuation of favorable claims experience, with expectations for LTC claims to trend closer to pre-COVID levels [54] Question: How diversified is the mix of carriers for Medicare Advantage? - Management confirmed a diversified mix of about 20 carriers, with no concentration risk, and expressed confidence in the demand for both Medicare Supplement and Medicare Advantage products [66][68] Question: What is the outlook for annuity sales and spreads? - Management indicated that while strong sales are expected to continue, comparable conditions may become tougher, and spreads have remained stable [70][73]

Financial Data and Key Metrics Changes - CNO Financial Group reported operating earnings per diluted share of $0.87, benefiting from favorable insurance product margins and solid investment results [6][22] - Total new annualized premiums reached a record $120 million, up 17% year-over-year, marking the twelfth consecutive quarter of strong sales momentum [6][5] - Book value per diluted share, excluding AOCI, increased by 6% to $38.5 [7] Business Line Data and Key Metrics Changes - The Consumer division experienced double-digit growth across nearly all product lines, with annuity collected premiums surpassing $500 million, driven by 19% growth [10][9] - Life and Health NAP posted a 17% increase, with total life insurance up 20% and direct-to-consumer life insurance sales up 29% [12][13] - Worksite life and health NAP grew by 16%, with life insurance sales up 54% [16][17] Market Data and Key Metrics Changes - Client assets in brokerage and advisory increased by 27% to $4.6 billion, with new accounts up 13% [11] - The market value of invested assets grew by 5%, with 96% of the fixed maturity portfolio rated investment grade [27] Company Strategy and Development Direction - CNO remains focused on serving the middle-income market with diverse products and distribution, aiming for sustained profitable growth [30] - The company is investing in technology to enhance customer experience and operational efficiency, including a new customer relationship management platform [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a return on equity of around 10.5% for 2025 and a target of 11.5% by 2027 [23][30] - The company is well-positioned to navigate the evolving economic environment and improve profitability [30] Other Important Information - CNO returned $117 million to shareholders in the quarter and $234 million year-to-date [7] - The company reaffirmed its 2025 guidance, lowering the upper bound of the expense ratio range to 19.2% from 19.4% [29] Q&A Session Summary Question: Can you provide more color on the momentum from the web digital piece of direct-to-consumer sales? - Management noted strong growth in direct-to-consumer sales, particularly from web and digital channels, which were up 39% year-over-year [34][36] Question: What are the current trends in Medicare Supplement margins? - Management highlighted that Medicare Supplement margins have held up well, with a modest increase in claims experience [38][44] Question: Can you discuss the expense experience in the quarter? - Management indicated that expenses were in line with expectations, with a better expense ratio reflecting improved operating leverage [49][50] Question: How is the competition in the annuity space evolving? - Management acknowledged increased competition in the annuity market but emphasized that CNO targets a different client base, focusing on middle-income consumers [60][61] Question: What is the status of the Bermuda operation? - Management expressed satisfaction with the development of the Bermuda operation and ongoing discussions with regulators [95][96]

Financial Performance - The company's total new annualized premiums (NAP) increased by 17% compared to 2Q24[12] - Annuity collected premiums rose by 19% year-over-year, reaching record levels[12] - Client assets in brokerage and advisory services grew by 27% compared to 2Q24[12] - The operating return on equity (ROE), excluding significant items, was 112%[12] - Book value per diluted share excluding AOCI increased by 6% to $3805[12] Division Updates - Consumer Division annuity collected premiums increased by 19%[15] - Consumer Division client assets in brokerage and advisory increased by 27%[15] - Consumer Division life and health NAP increased by 17%[15] - Worksite Division life and health NAP increased by 16%[16] Investment and Capital - The average yield on allocated investments increased to 492% compared to 481% in 2Q24[36] - The new money rate was 642%[36]

Core Viewpoint - CNO Financial Group reported strong second quarter results for 2025, with revenue and non-GAAP earnings per share exceeding analyst expectations, despite declines in net income compared to the previous year [1][5][7] Financial Performance - GAAP revenue reached $1,151.5 million, significantly higher than the estimated $747.81 million, marking an 8.0% increase year-over-year from $1,066.2 million in Q2 2024 [2][5] - Non-GAAP earnings per share were $0.87, slightly above the expected $0.86, but down 17.1% from $1.05 in Q2 2024 [2][7] - GAAP net income decreased by 21.1% compared to Q2 2024, while non-GAAP net operating income also fell [7][8] Business Overview - CNO Financial Group focuses on providing life and health insurance products primarily to middle-income Americans, operating through its Consumer and Worksite Divisions [3] - The company utilizes a mix of exclusive and independent agents along with direct marketing to distribute its products [3] Key Success Factors - The effectiveness of the agent and distribution strategy, prudent investment management, and product innovation are critical for the company's success [4] - The company is focusing on agent recruitment, sales growth, and the implementation of digital processes [4] Premium Growth - New annualized premiums increased by 17%, driven by a 22% rise in new life insurance premiums and an 11% increase in new health insurance premiums compared to Q2 2024 [6] - Both Consumer and Worksite divisions reported double-digit gains in new annualized premiums, with a notable increase in digital sales channels [6] Investment and Capital Management - Book value per share rose to $25.92, up 13.7% from $22.80 a year earlier, supported by a share buyback of 2.6 million shares totaling $100.0 million [9] - The company's statutory risk-based capital (RBC) ratio was 378%, indicating strong financial stability [9] Product Innovation - The company continues to innovate with new products, including indexed annuities with lifetime income guarantees and enhanced worksite offerings [10] - Technological advancements, such as accelerated underwriting for simplified life insurance, have contributed to operational improvements [10] Outlook - Management reaffirmed its fiscal 2025 outlook, aiming to improve operating return on equity by 150 basis points through 2027 [12] - The company anticipates further profitability growth through balanced business expansion and disciplined expense management [12]

[Consolidated Balance Sheet](index=3&type=section&id=Consolidated%20balance%20sheet) [Consolidated Balance Sheet Overview](index=3&type=section&id=Consolidated%20Balance%20Sheet%20Overview) CNO Financial Group's balance sheet shows a slight decrease in total assets and liabilities, with stable shareholders' equity and increased book value per common share Consolidated Balance Sheet Key Metrics (Dollars in millions) | Metric | Mar-25 | Jun-25 | Change (Mar-25 to Jun-25) | | :----------------------------------- | :------- | :------- | :-------------------------- | | Total assets | $ 37,429.2 | $ 37,329.1 | ($100.1) | | Total liabilities | $ 34,874.1 | $ 34,806.4 | ($67.7) | | Total shareholders' equity | $ 2,555.1 | $ 2,522.7 | ($32.4) | | Book value per common share | $ 25.58 | $ 25.92 | $0.34 | | Book value per common share, excluding AOCI | $ 37.98 | $ 38.79 | $0.81 | | Book value per diluted share, excluding AOCI | $ 37.27 | $ 38.05 | $0.78 | [Consolidated Statement of Operations](index=5&type=section&id=Consolidated%20statement%20of%20operations) [Consolidated Statement of Operations Overview](index=5&type=section&id=Consolidated%20Statement%20of%20Operations%20Overview) CNO Financial Group's total revenues and net income significantly increased in 2Q25, driven by higher insurance policy and investment income Consolidated Statement of Operations (Dollars in millions) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Insurance policy income | $ 650.7 | $ 651.3 | $0.6 | | Net investment income (General account assets) | $ 375.1 | $ 378.3 | $3.2 | | Net investment income (Policyholder portfolios) | $ (63.6) | $ 105.4 | $169.0 | | Total revenues | $ 1,004.1 | $ 1,151.5 | $147.4 | | Total benefits and expenses | $ 976.3 | $ 1,033.5 | $57.2 | | Income before income taxes | $ 27.8 | $ 118.0 | $90.2 | | Net income | $ 21.5 | $ 91.8 | $70.3 | [Financial Summary](index=6&type=section&id=Financial%20summary) [Financial Summary Overview](index=6&type=section&id=Financial%20Summary%20Overview) The financial summary shows increased total insurance product margin and net operating income, with diluted net operating income per share rising to $0.87 Financial Summary Key Metrics (Dollars in millions, except per share data) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Total insurance product margin | $ 248.9 | $ 252.4 | $3.5 | | Income from insurance products | $ 87.7 | $ 103.0 | $15.3 | | Operating earnings before taxes | $ 104.6 | $ 112.3 | $7.7 | | Net operating income | $ 81.1 | $ 87.5 | $6.4 | | Net operating income per diluted share | $ 0.79 | $ 0.87 | $0.08 | | Net income per diluted share | $ 0.21 | $ 0.91 | $0.70 | [Insurance Operations Overview](index=7&type=section&id=Insurance%20operations) [Insurance Product Margins by Segment](index=7&type=section&id=Insurance%20Product%20Margins%20by%20Segment) Total insurance product margin increased in 2Q25, primarily driven by Health products, while Annuity margin remained stable and Life margin slightly decreased Insurance Product Margins (Dollars in millions) | Product Line | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :-------------------------- | :-------- | :-------- | :------------------ | | Annuity margin | $ 54.5 | $ 54.8 | $0.3 | | Health margin | $ 126.2 | $ 134.0 | $7.8 | | Life margin | $ 68.2 | $ 63.6 | ($4.6) | | Total insurance product margin | $ 248.9 | $ 252.4 | $3.5 | | Income from insurance products | $ 87.7 | $ 103.0 | $15.3 | | Net operating income | $ 81.1 | $ 87.5 | $6.4 | [Margin from Insurance Products](index=8&type=section&id=Margin%20from%20insurance%20products) [Margin from Annuity Products](index=8&type=section&id=Margin%20from%20Annuity%20Products) Annuity product margin remained stable in 2Q25, with fixed indexed annuities being the largest contributor despite a slight decrease in margin/average net insurance liabilities Annuity Product Margins (Dollars in millions) | Product Type | 1Q 2025 Margin | 2Q 2025 Margin | 2Q 2025 Margin/Average Net Insurance Liabilities | | :-------------------------- | :------------- | :------------- | :--------------------------------------------- | | Fixed indexed annuities | $ 44.5 | $ 45.4 | 1.72 % | | Fixed interest annuities | $ 8.1 | $ 8.0 | 2.01 % | | Other annuities | $ 1.9 | $ 1.4 | 1.41 % | | Total annuity margin | $ 54.5 | $ 54.8 | 1.75 % | [Margin from Health Products](index=9&type=section&id=Margin%20from%20Health%20Products) Health product margin increased in 2Q25, driven by Long-term care and Supplemental health, with Long-term care showing the highest margin/insurance policy income Health Product Margins (Dollars in millions) | Product Type | 1Q 2025 Margin | 2Q 2025 Margin | 2Q 2025 Margin/Insurance Policy Income | | :-------------------------- | :------------- | :------------- | :------------------------------------- | | Supplemental health | $ 65.6 | $ 68.6 | 37 % | | Medicare supplement | $ 28.1 | $ 28.2 | 18 % | | Long-term care | $ 32.5 | $ 37.2 | 52 % | | Total health margin | $ 126.2 | $ 134.0 | 32 % | [Margin from Life Products](index=10&type=section&id=Margin%20from%20Life%20Products) Life product margin decreased in 2Q25, primarily due to a decline in Interest sensitive life margin, while Traditional life margin remained robust Life Product Margins (Dollars in millions) | Product Type | 1Q 2025 Margin | 2Q 2025 Margin | 2Q 2025 Margin/Insurance Policy Income | | :-------------------------- | :------------- | :------------- | :------------------------------------- | | Interest sensitive life | $ 24.1 | $ 21.9 | 45 % (Underwriting margin) | | Traditional life | $ 44.1 | $ 41.7 | 23 % | | Total life margin | $ 68.2 | $ 63.6 | - | [Collected Premiums and Insurance Policy Income](index=11&type=section&id=Collected%20premiums%20and%20insurance%20policy%20income) [Collected Premiums and Insurance Policy Income Overview](index=11&type=section&id=Collected%20Premiums%20and%20Insurance%20Policy%20Income%20Overview) Total collected premiums and insurance policy income increased in 2Q25, primarily driven by a significant rise in annuity product premiums Collected Premiums and Insurance Policy Income (Dollars in millions) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Total annuity collected premiums | $ 442.0 | $ 520.5 | $78.5 | | Total health collected premiums | $ 405.7 | $ 409.5 | $3.8 | | Total life collected premiums | $ 244.4 | $ 245.5 | $1.1 | | Total collected premiums | $ 1,092.1 | $ 1,175.5 | $83.4 | | Total annuity insurance policy income | $ 9.8 | $ 8.5 | ($1.3) | | Total health insurance policy income | $ 412.0 | $ 412.5 | $0.5 | | Total life insurance policy income | $ 228.9 | $ 230.4 | $1.5 | | Total insurance policy income | $ 650.7 | $ 651.4 | $0.7 | [Health and Life New Annualized Premiums ("NAP")](index=12&type=section&id=Health%20and%20life%20new%20annualized%20premiums) [New Annualized Premiums by Division and Product](index=12&type=section&id=New%20Annualized%20Premiums%20by%20Division%20and%20Product) Total New Annualized Premiums (NAP) increased in 2Q25, with growth across both Consumer and Worksite Divisions and significant increases in life products New Annualized Premiums (Dollars in millions) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Total Consumer Division health NAP | $ 41.7 | $ 44.3 | $2.6 | | Total Consumer Division life NAP | $ 49.6 | $ 57.6 | $8.0 | | Total Consumer Division health and life NAP | $ 91.3 | $ 101.9 | $10.6 | | Total Worksite Division health and life NAP | $ 14.4 | $ 18.0 | $3.6 | | Total health NAP | $ 52.0 | $ 56.0 | $4.0 | | Total life NAP | $ 53.7 | $ 63.9 | $10.2 | | Total NAP | $ 105.7 | $ 119.9 | $14.2 | [Computation of Weighted Average Shares Outstanding](index=13&type=section&id=Computation%20of%20weighted%20average%20shares%20outstanding) [Weighted Average Shares Outstanding Details](index=13&type=section&id=Weighted%20Average%20Shares%20Outstanding%20Details) Weighted average basic and diluted shares outstanding decreased in 2Q25, primarily due to share repurchases Weighted Average Shares Outstanding (Shares in thousands) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Weighted average basic shares outstanding | 100,742.8 | 98,572.2 | (2,170.6) | | Weighted average diluted shares outstanding | 103,069.9 | 100,386.2 | (2,683.7) | | Shares repurchased | (1,106.8) | (1,347.6) | (240.8) | [Annuities - Account Value Rollforwards](index=14&type=section&id=Annuities%20-%20account%20value%20rollforwards) [Annuity Policyholder Account Balances Rollforward](index=14&type=section&id=Annuity%20Policyholder%20Account%20Balances%20Rollforward) Total annuity policyholder account balances increased in 2Q25, driven by new issuances and interest credited, with fixed indexed annuities as the largest component Annuity Policyholder Account Balances (Dollars in millions) | Metric | 1Q 2025 End of Period | 2Q 2025 End of Period | Change (1Q to 2Q) | | :----------------------------------- | :-------------------- | :-------------------- | :------------------ | | Fixed indexed annuities | $ 10,952.1 | $ 11,221.3 | $269.2 | | Fixed interest annuities | $ 1,640.7 | $ 1,634.7 | ($6.0) | | Total annuities | $ 12,592.8 | $ 12,856.0 | $263.2 | | Issuances (funds collected from new business) | $ 434.6 | $ 510.1 | $75.5 | | Interest credited (Total annuities) | $ 109.1 | $ 97.5 | ($11.6) | | Surrenders and withdrawals (Total annuities) | $ (274.7) | $ (262.5) | $12.2 | [Consolidated Statutory Information of U.S. Based Insurance Subsidiaries](index=15&type=section&id=Consolidated%20statutory%20information%20of%20U.S.%20based%20insurance%20subsidiaries) [Statutory Financials and Capital Ratios](index=15&type=section&id=Statutory%20Financials%20and%20Capital%20Ratios) U.S. insurance subsidiaries reported increased net gain from operations and net income in 2Q25, maintaining a strong Risk-based capital ratio of 378% Consolidated Statutory Information (Dollars in millions) | Metric | 1Q 2025 | 2Q 2025 (a) | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :------------ | :------------------ | | Net gain from operations before interest expense and federal income taxes | $ 29.0 | $ 37.7 | $8.7 | | Net gain from operations before federal income taxes | $ 13.5 | $ 22.0 | $8.5 | | Net income (loss) | $ 12.3 | $ 19.4 | $7.1 | | Capital and surplus | $ 1,422.3 | $ 1,417.8 | ($4.5) | | Risk-based capital ratio | 379 % | 378 % | (1) % | - The amounts for 2Q25 are preliminary, as statutory basis financial statements will be filed around August 14, 2025[32](index=32&type=chunk) [Investment Income](index=16&type=section&id=Investment%20income%20not%20allocated%20to%20product%20lines%20and%20investment%20income%20allocated%20to%20product%20lines) [Investment Income Not Allocated to Product Lines](index=16&type=section&id=Investment%20Income%20Not%20Allocated%20to%20Product%20Lines) Investment income not allocated to product lines decreased in 2Q25, reflecting mixed performance in FHLB and FABN programs and various variable components Investment Income Not Allocated to Product Lines (Dollars in millions) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Total investment income not allocated to product lines | $ 38.0 | $ 33.8 | ($4.2) | | Net spread income on FHLB program | $ 9.4 | $ 8.9 | ($0.5) | | Net spread income on FABN program | $ 6.4 | $ 9.2 | $2.8 | | Total excluding variable components | $ 25.8 | $ 22.8 | ($3.0) | | Total variable components | $ 12.2 | $ 11.0 | ($1.2) | [Investment Income Allocated to Product Lines](index=19&type=section&id=Investment%20Income%20Allocated%20to%20Product%20Lines) Total investment income allocated to product lines increased in 2Q25, with annuity products receiving the largest allocation and an average yield of 4.95% Investment Income Allocated to Product Lines (Dollars in millions) | Product Line | 1Q 2025 Allocated Investment Income | 2Q 2025 Allocated Investment Income | 2Q 2025 Average Yield | | :----------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | | Annuity | $ 148.0 | $ 155.2 | 4.95 % | | Health | $ 75.1 | $ 75.9 | 4.90 % | | Life | $ 37.6 | $ 37.8 | 4.85 % | | Total allocated investment income | $ 260.7 | $ 268.9 | 4.92 % | | Total average net insurance liabilities | $ 21,400.0 | $ 21,854.2 | - | [Other Investment Data](index=22&type=section&id=Other%20investment%20data) [Key Investment Metrics](index=22&type=section&id=Key%20Investment%20Metrics) Average book value of invested assets and cash slightly decreased in 2Q25, while the new money rate remained stable and book and earned yields showed minor increases Other Investment Data (Dollars in millions, except rates) | Metric | 1Q 2025 | 2Q 2025 | Change (1Q to 2Q) | | :----------------------------------- | :-------- | :-------- | :------------------ | | Average book value of invested assets and cash | $ 30,755.7 | $ 30,732.5 | ($23.2) | | Net investment income from general account investments | $ 375.1 | $ 378.3 | $3.2 | | New money rate | 6.43 % | 6.42 % | (0.01) % | | Book yield | 4.81 % | 4.83 % | 0.02 % | | Earned yield | 4.71 % | 4.73 % | 0.02 % | | Alternative investment income (loss) | $ 12.9 | $ 11.7 | ($1.2) | [Significant Items](index=23&type=section&id=Significant%20items) [1Q25 Significant Items](index=23&type=section&id=1Q25%20Significant%20Items) A favorable out-of-period adjustment in 1Q25 decreased reserves, positively impacting net operating income and diluted EPS 1Q25 Significant Items Impact (Dollars in millions, except per share amounts) | Metric | Actual Results | Significant Items Impact | Excluding Significant Items | | :----------------------------------- | :------------- | :----------------------- | :-------------------------- | | Life margin | $ 68.2 | $ (6.8) (a) | $ 61.4 | | Total insurance product margin | $ 248.9 | $ (6.8) | $ 242.1 | | Operating earnings before taxes | $ 104.6 | $ (6.8) | $ 97.8 | | Net operating income | $ 81.1 | $ (5.3) | $ 75.8 | | Net operating income per diluted share | $ 0.79 | $ (0.05) | $ 0.74 | - The significant item in 1Q25 was a **$6.8 million favorable out-of-period adjustment** that decreased reserves[49](index=49&type=chunk) [4Q24 Significant Items](index=23&type=section&id=4Q24%20Significant%20Items) An unfavorable actuarial review in 4Q24 impacted Health margin, leading to a positive adjustment to net operating income and diluted EPS when excluded 4Q24 Significant Items Impact (Dollars in millions, except per share amounts) | Metric | Actual Results | Significant Items Impact | Excluding Significant Items | | :----------------------------------- | :------------- | :----------------------- | :-------------------------- | | Health margin | $ 130.1 | $ 3.9 (a) | $ 134.0 | | Total insurance product margin | $ 253.1 | $ 3.9 | $ 257.0 | | Operating earnings before taxes | $ 173.9 | $ 3.9 | $ 177.8 | | Net operating income | $ 138.0 | $ 3.1 | $ 141.1 | | Net operating income per diluted share | $ 1.31 | $ 0.03 | $ 1.34 | - The significant item in 4Q24 was a **$3.9 million unfavorable impact** from a comprehensive annual actuarial review[51](index=51&type=chunk) [3Q24 Significant Items](index=24&type=section&id=3Q24%20Significant%20Items) 3Q24 saw a net favorable actuarial review impact and an unfavorable fixed asset impairment, resulting in a negative impact on net operating income and diluted EPS 3Q24 Significant Items Impact (Dollars in millions, except per share amounts) | Metric | Actual Results | Significant Items Impact | Excluding Significant Items | | :----------------------------------- | :------------- | :----------------------- | :-------------------------- | | Annuity margin | $ 91.1 | $ (36.2) (a) | $ 54.9 | | Health margin | $ 127.8 | $ 4.3 (a) | $ 132.1 | | Life margin | $ 63.3 | $ 0.7 (a) | $ 64.0 | | Total insurance product margin | $ 282.2 | $ (31.2) | $ 251.0 | | Operating earnings before taxes | $ 153.5 | $ (28.3) | $ 125.2 | | Net operating income | $ 119.2 | $ (21.9) | $ 97.3 | | Net operating income per diluted share | $ 1.11 | $ (0.19) | $ 0.92 | - The significant items in 3Q24 included a **$31.2 million net favorable impact** from the comprehensive annual actuarial review and a **$2.9 million unfavorable impact** related to a fixed asset impairment[54](index=54&type=chunk) [Notes](index=24&type=section&id=Notes) [Definitions of Key Financial Measures](index=24&type=section&id=Definitions%20of%20Key%20Financial%20Measures) This section defines key financial measures, including non-GAAP metrics, investment allocation methodologies, and statutory accounting practices, for comprehensive report understanding - **Book value per common share, excluding accumulated other comprehensive income (loss)**, is a non-GAAP measure that removes volatility from unrealized investment appreciation/depreciation[56](index=56&type=chunk) - **Insurance product margin** is a management measure of profitability for annuity, health, and life product lines, comprising insurance policy income plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense, and amortization of acquisition costs[56](index=56&type=chunk) - **Net operating income** is a non-GAAP measure used to evaluate financial performance, excluding various non-recurring or market-related items such as net realized investment gains or losses, changes in fair value of investments, and embedded derivative liabilities[57](index=57&type=chunk) - Investment income is allocated to product lines based on the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period[56](index=56&type=chunk) - The **new money rate** refers to the rate for investments purchased during the period to support insurance products and capital, excluding FHLB, FABN, and variable interest entity investments[57](index=57&type=chunk)

Core Viewpoint - CNO Financial Group reported a decrease in net income for the second quarter of 2025, with net income at $91.8 million or $0.91 per diluted share, down from $116.3 million or $1.06 per diluted share in the same quarter of 2024, primarily due to non-economic accounting impacts from market volatility [1][6][29] Financial Performance - Net operating income for 2Q25 was $87.5 million, or $0.87 per diluted share, compared to $114.6 million, or $1.05 per diluted share in 2Q24, reflecting a 24% decrease [1][3][29] - Total revenues for 2Q25 were $1,151.5 million, up from $1,066.2 million in 2Q24, indicating a year-over-year increase [29] - The company returned $116.7 million to shareholders during the quarter [5] Key Metrics - Book value per share was $25.92, an increase from $24.75 at the end of 2024, while book value per diluted share, excluding accumulated other comprehensive loss, was $38.05, up from $37.35 [20] - Return on equity (ROE) for the trailing four quarters was 11.9%, down from 19.9% in the previous year [22] - Operating ROE for the same period was 11.8%, compared to 11.2% in the prior year [22] Business Growth - Total new annualized premiums (NAP) increased by 17%, with life NAP up 22% and health NAP up 11% [5] - Annuity collected premiums rose by 19%, and client assets in brokerage and advisory increased by 27% [5] Investment Portfolio - As of June 30, 2025, the fair value of CNO's available-for-sale fixed maturity portfolio was $23,047 million, with net unrealized losses of $2,339.8 million [17] - The consolidated statutory risk-based capital ratio of U.S.-based insurance subsidiaries was estimated at 378% [18] Shareholder Actions - During 2Q25, the company repurchased $100 million of common stock, with an average cost of $38.09 per share [19] - Dividends paid on common stock totaled $16.7 million during the quarter [19]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for CNO Financial, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - CNO Financial is expected to report quarterly earnings of $0.85 per share, reflecting a year-over-year decrease of 19.1% [3]. - Revenues are projected to be $965.2 million, down 9.5% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.04% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for CNO is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.77% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from consensus estimates, with predictive power being significant for positive readings only [9][10]. - CNO's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, CNO met the expected earnings of $0.79 per share, resulting in no surprise [13]. - Over the past four quarters, CNO has beaten consensus EPS estimates three times [14]. Conclusion - CNO does not appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Core Viewpoint - CNO Financial Group, Inc. will report its second quarter 2025 results on July 28, 2025, and will host a conference call to discuss these results on July 29, 2025 [1] Group 1: Conference Call Details - The conference call will take place at 11:00 a.m. Eastern Time on July 29, 2025 [1] - Participants can register for the call to receive call details and a registrant ID for attendance tracking [2] - The call will also be available via a live webcast, accessible through the Investors section of the company's website [3] - A replay of the conference call will be available on the company's website after the event [4] Group 2: Company Overview - CNO Financial Group focuses on securing the future of middle-income America by providing life and health insurance, annuities, financial services, and workforce benefits solutions [5] - The company operates under several brands, including Bankers Life, Colonial Penn, Optavise, and Washington National, managing 3.2 million policies and holding total assets of $37.4 billion [5] - CNO employs 3,400 associates, 4,800 exclusive agents, and over 5,500 independent partner agents to assist customers with financial decisions [5]

Core Insights - California Nanotechnologies Corp. reported revenues of US$6,224,738 for the fiscal year ending February 28, 2025, marking an 87% increase from the previous year [1] - The company experienced a net loss of US$158,333, a significant decline from a net income of US$381,678 in the prior fiscal year, primarily due to non-cash charges related to share purchase warrants [2] - Adjusted EBITDA for the fiscal year was US$2,558,515, a substantial increase of 121% compared to US$1,157,141 in the previous year [6][12] Financial Performance - Revenues for the fiscal quarter ended February 28, 2025, were US$1,147,522, representing a 17% increase year-over-year [6] - Gross margin for the fiscal year was 74%, an improvement from 70% in the previous year, attributed to operational efficiencies [5][12] - The company reported cash flow from operations of US$2,923,881, a dramatic increase of 2,704% compared to US$104,284 in the prior year [12] Business Strategy and Outlook - The CEO stated that the company is entering a new phase aimed at creating predictable and scalable revenues through recurring commercial orders [4] - The company has made significant investments in personnel and equipment, totaling over US$2 million in FY2025, to support future growth [8] - The company aims to diversify its revenue streams and reduce reliance on a single customer, particularly in light of reduced activity from its green steel customer [9][10] Operational Highlights - The increase in revenue was primarily driven by manufacturing services, which generated US$5,316,068, and Spark Plasma Sintering (SPS) equipment deliveries, contributing US$908,670 [4] - The company has improved its balance sheet by fully repaying borrowings from Omni-Lite Industries Canada Inc., enhancing its financial flexibility [11] - The company anticipates fluctuations in gross margin based on the mix of manufacturing services and equipment sales [5]