A solution to bridge the financial protection gap for underserved workers and families 1 LIMRA 2024 Insurance Barometer Study. SOURCE Washington National Insurance Company "With flexible term and death benefit options, and built-in riders for added protection at an affordable price, this product addresses the financial protection needs of individuals and families—ensuring they can secure coverage that fits their budgets and aligns with their unique life stages," added Shaffer. For more information about Ind ...

Company Overview - CNO Financial (CNO) shares have increased by approximately 0.5% over the past month, underperforming the S&P 500 index [1] - The most recent earnings report is essential to understand the key drivers affecting the stock [1] Earnings Estimates - Estimates for CNO have trended downward over the past month, indicating a negative outlook [2][4] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns in the coming months [4] VGM Scores - CNO has an average Growth Score of C, a Momentum Score of F, and a Value Score of A, placing it in the top quintile for value investment strategy [3] - The aggregate VGM Score for CNO is B, which is relevant for investors not focused on a single strategy [3] Industry Comparison - CNO operates within the Zacks Insurance - Multi line industry, where Principal Financial (PFG) has seen a 5.8% increase in shares over the past month [5] - Principal Financial reported revenues of $4.01 billion for the last quarter, reflecting a year-over-year increase of 5.5% [5] - For the current quarter, Principal Financial is expected to post earnings of $2.02 per share, representing a year-over-year change of +23.9% [6]

Group 1 - CNO Financial Group will host a virtual investor briefing on its Investments function on June 10, 2025, from 9:00 a.m. to approximately 10:00 a.m. Eastern Time [1] - The event aims to provide an in-depth look at the company's investment approach and portfolio performance, concluding with a Q&A session featuring key executives [2] - Participants can register for the event through the company's website and are advised to do so at least 15 minutes before the start [3] Group 2 - CNO Financial Group secures the future of middle-income America by providing life and health insurance, annuities, financial services, and workforce benefits solutions [5] - The company manages 3.2 million policies and has total assets amounting to $37.4 billion [5] - CNO employs 3,400 associates, 4,800 exclusive agents, and 5,500 independent partner agents to assist customers with financial decisions [5]

Group 1 - CNO Financial Group, Inc. provides life and health insurance, annuities, financial services, and workforce benefits solutions, focusing on middle-income America [1] - The company manages 3.2 million policies and has total assets amounting to $37.4 billion [1] - CNO employs 3,400 associates, 4,800 exclusive agents, and over 5,500 independent partner agents to assist customers with financial decisions [1] Group 2 - At the annual meeting, nine directors were elected to serve a one-year term [2] - The executive compensation for named executive officers was approved by a non-binding advisory vote [2] - PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025 [2] - The company approved an Amended and Restated Certificate of Incorporation to include a Replacement NOL Protective Amendment [2] - An Amended and Restated Long-Term Incentive Plan was approved [2] - An Amended and Restated Employee Stock Purchase Plan was also approved [2]

Financial Performance - For the three months ended March 31, 2025, the total insurance product margin increased to $248.9 million, up from $229.6 million in the same period of 2024, representing an increase of 8.5%[232] - The annuity margin rose to $54.5 million in Q1 2025, compared to $52.0 million in Q1 2024, reflecting a growth of 4.8%[232] - The health margin increased to $126.2 million in Q1 2025, up from $123.0 million in Q1 2024, marking a growth of 2.6%[232] - The life margin saw a significant increase to $68.2 million in Q1 2025, compared to $54.6 million in Q1 2024, which is a growth of 24.5%[232] - Net operating income for Q1 2025 was $81.1 million, an increase from $57.5 million in Q1 2024, representing a growth of 41.0%[232] - Net income for Q1 2025 decreased to $13.7 million from $112.3 million in Q1 2024, indicating a decline of 87.8%[232] - The diluted net income per share for Q1 2025 was $0.13, down from $1.01 in Q1 2024, reflecting a decrease of 87.9%[232] - Total net investment income rose by 16.0% to $298.7 million in Q1 2025, up from $257.6 million in Q1 2024[249] - Fee revenue decreased to $47.4 million in Q1 2025 from $50.5 million in Q1 2024, leading to a net fee income of $(0.8) million[252] Investment Performance - The company reported net realized investment losses of $13.2 million in Q1 2025, compared to losses of $4.6 million in Q1 2024[232] - Investment income not allocated to product lines increased to $38.0 million in Q1 2025, up from $12.3 million in Q1 2024[232] - Net investment income not allocated to product lines rose to $38.0 million in Q1 2025 from $12.3 million in Q1 2024, primarily due to a loss on alternative investments in the prior year[277] - The company recognized $2.8 million in gross realized losses on sales of $230.3 million of fixed maturity securities during the first three months of 2025[339] - The total gross unrealized losses of fixed maturity securities available for sale amounted to $2,313.6 million as of March 31, 2025[345] Margins and Liabilities - Margin from fixed indexed annuities was $44.5 million in Q1 2025, up from $43.4 million in Q1 2024, driven by business growth and an increase in average net insurance liabilities to $10,085.7 million from $9,636.3 million[256] - Average net insurance liabilities for total annuities reached $12,087.4 million in Q1 2025, compared to $11,664.2 million in Q1 2024, contributing to higher net investment income[256] - Total health margin increased to $126.2 million in Q1 2025 from $123.0 million in Q1 2024, with supplemental health margin at $65.6 million, up from $65.4 million[262] - Medicare supplement margin grew to $28.1 million in Q1 2025 from $26.5 million in Q1 2024, with insurance policy income increasing by 3% to $156.3 million[265] - Long-term care margin increased to $32.5 million in Q1 2025 from $31.1 million in Q1 2024, attributed to business growth and favorable morbidity[267] Operational Efficiency - The expense ratio for Q1 2025 was 19.9%, down from 20.4% in Q1 2024, indicating improved efficiency[251] - Advertising expense decreased to $21.2 million in Q1 2025 from $24.6 million in Q1 2024, reflecting disciplined marketing expenditure management[274] Capital and Liquidity - As of March 31, 2025, the estimated consolidated statutory RBC ratio was 379%, exceeding the targeted 375%[296] - Total capital as of March 31, 2025, was $4,364.7 million, compared to $4,331.9 million at December 31, 2024[288] - CNO Bermuda Re, a wholly owned subsidiary, is subject to Bermuda Monetary Authority regulations and must maintain a statutory economic capital and surplus of at least 150% of its enhanced capital requirement[297] - As of March 31, 2025, CNO and its subsidiaries held $250.3 million in unrestricted cash, exceeding the minimum target of $150 million[309] - In the first three months of 2025, CNO generated $250.3 million in free cash flow and repurchased 2.5 million shares for $99.9 million[317] Ratings and Financial Strength - AM Best affirmed an "A" financial strength rating for CNO's primary insurance subsidiaries, indicating excellent ability to meet obligations[301] - Fitch and S&P affirmed "A" and "A-" ratings respectively for CNO's primary insurance subsidiaries, indicating strong capacity to meet obligations[302][304] - The RBC ratio of Colonial Life Insurance Company was estimated at 325% as of March 31, 2025, allowing for interest payments on surplus debentures without additional approval[311] Future Outlook - The company expects operating earnings per diluted share to be in the range of $3.70 to $3.90 for 2025, with an expense ratio projected between 19.0% and 19.4%[284] - Anticipated excess cash flow to the holding company is estimated to be between $200 million and $250 million[285] - The company plans to initiate a $170 million technology modernization project over three years, with $60 million expected in 2025[287] Investment Strategy and Risks - The company emphasizes careful credit analysis and diversification to mitigate risks associated with below-investment grade securities[334] - The company’s investment strategy focuses on active strategic asset allocation and investment management to enhance projected total returns[346] - Future realized losses may occur, which could materially affect the consolidated financial statements[342] - The company has not reported any material changes in market risks or their management in the first three months of 2025[355]

Core Viewpoint - CNO Financial Group, Inc. reported mixed first-quarter 2025 results, with increased insurance policy income driven by higher collected premiums, but offset by lower investment results and fee revenues [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 79 cents, matching the Zacks Consensus Estimate, and reflecting a year-over-year increase of 51.9% [2]. - Operating revenues decreased by 12.6% year over year to $1 billion, although it exceeded the consensus estimate by 5.2% [2]. - Total insurance policy income rose to $650.7 million from $628.4 million in the prior year, but fell short of the Zacks Consensus Estimate of $651.4 million [3]. Investment Income and Expenses - Net investment income dropped to $311.5 million from $469.2 million year over year [4]. - Total benefits and expenses decreased by 2.4% year over year to $986.4 million, attributed to lower insurance policy benefits and operating costs [6]. Premiums and Collected Income - Total collected premiums increased by 5.5% year over year to $1.1 billion, with annuity premiums at $442 million (up 12%), health premiums at $405.7 million (up 0.2%), and life premiums at $244.4 million (up 3%) [5]. - New annualized premiums for health products rose by 8.8%, while life products saw a decline of 5.3% [6]. Financial Position - As of March 31, 2025, unrestricted cash and cash equivalents were $928.2 million, down from $1.7 billion at the end of 2024 [7]. - Total assets decreased to $37.4 billion from $37.9 billion at the end of 2024, while total shareholders' equity improved by 1.3% to $2.5 billion [7]. - Book value per common share increased by 3% to $25.33, and operating return on equity improved by 340 basis points year over year to 11.9% [8]. Shareholder Returns - CNO Financial returned $99.9 million to shareholders through share buybacks and $16.9 million in dividends during the first quarter [9]. - The company has a remaining repurchase capacity of $640.4 million as of March 31, 2025 [9]. Guidance - CNO Financial reaffirmed its 2025 guidance, projecting operating EPS in the range of $3.70-$3.90 and excess cash flow between $200-$250 million [10]. - The company estimates an expense ratio of 19-19.4% and an effective tax rate around 23% for 2025 [10].

Core Viewpoint - CNO Financial Group, Inc. has announced a $0.01 increase in its quarterly dividend, marking the thirteenth consecutive annual increase, reflecting the company's commitment to returning value to shareholders [1]. Group 1: Dividend Announcement - The Board of Directors declared a quarterly cash dividend of $0.17 per share on the company's common shares [1]. - The dividend will be payable on June 24, 2025, to shareholders of record at the close of business on June 10, 2025 [1]. Group 2: Company Overview - CNO Financial Group, Inc. focuses on securing the future of middle-income America by providing life and health insurance, annuities, financial services, and workforce benefits solutions [2]. - The company operates through various brands, including Bankers Life, Colonial Penn, Optavise, and Washington National [2]. - CNO manages 3.2 million policies and has total assets amounting to $37.4 billion [2]. - The company employs 3,400 associates, 4,800 exclusive agents, and over 5,500 independent partner agents to assist customers with financial decisions [2].

Financial Data and Key Metrics Changes - Operating earnings per diluted share were $0.79, up 52%, and $0.74, up 42%, excluding significant items [5][25] - Book value per diluted share, excluding AOCI, was $37.03, up 6% [7] - Operating return on equity excluding significant items was 11.9% on a trailing twelve-month basis [26] Business Line Data and Key Metrics Changes - Consumer division saw annuity collected premiums up 12%, account values up 7%, and premium per policy up 19% [10] - Health NAP was up 9%, with Medicare Supplement NAP up 24% and Medicare Advantage policies up 42% [13][14] - Worksite insurance sales were up 11%, with critical illness insurance up 37% and life insurance up 17% [19] Market Data and Key Metrics Changes - New money rates exceeded 6% for nine consecutive quarters, with a new money rate of 6.43% [6][28] - Total investment income was up 16% for the quarter, marking the sixth consecutive quarter of growth [29] Company Strategy and Development Direction - The company aims to leverage its business model for sustained profitable growth and drive ROE expansion [8][32] - Focus on reaching the underserved middle-income market through a combination of virtual connections and local agents [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged deteriorating visibility into macroeconomic drivers but expressed confidence in navigating volatility [7][34] - The company reaffirmed its full-year guidance for 2025, despite acknowledging increased risks due to market volatility [31][32] Other Important Information - The company returned $117 million to shareholders, maintaining strong capital and liquidity levels [6] - A new product, Optimize Clear, was introduced to enhance service offerings [23] Q&A Session Summary Question: On buybacks and macro environment - Management indicated a willingness to continue share buybacks, with $100 million deployed in the first quarter [37] Question: Fee revenue and GAAP accounting - Management explained the impact of ASC 606 on revenue recognition, noting potential future reversals [40][41] Question: Outlook for direct-to-consumer life sales - Management expressed optimism for a bounce back in sales, while acknowledging shifts in advertising strategies [58] Question: Medicare business and potential shifts - Management noted strong growth in Medicare Advantage policies and indicated a potential shift back to Medicare Supplement could be beneficial [72][74] Question: Geographic expansion in worksite - Management confirmed ongoing geographic expansion efforts and expected continued growth from new regions [82]

Financial Data and Key Metrics Changes - Operating earnings per diluted share were $0.79, up 52%, and $0.74, up 42% excluding significant items [5][24] - Book value per diluted share, excluding AOCI, was $37.03, up 6% [7] - Capital and liquidity remain well above target levels after returning $117 million to shareholders [6] Business Line Data and Key Metrics Changes - Consumer division saw annuity collected premiums up 12%, account values up 7%, and premium per policy up 19% [10] - Health NAP was up 9%, with Medicare Supplement NAP up 24% and Medicare Advantage policies up 42% [13][14] - Worksite insurance sales were up 11%, with critical illness insurance up 37% and life insurance up 17% [19] Market Data and Key Metrics Changes - New money rates exceeded 6% for nine consecutive quarters [6] - Total investment income was up 16% for the quarter, marking the sixth consecutive quarter of growth [28] - The market value of invested assets grew 11% in the quarter [29] Company Strategy and Development Direction - The company aims to leverage its business model for sustained profitable growth and drive ROE expansion [8] - Focus on reaching the underserved middle-income market remains a key differentiator [9] - Introduction of new products like Optimize Clear to enhance service offerings [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges deteriorating visibility into macroeconomic drivers but expresses confidence in navigating volatility [7][31] - The company reaffirms its full-year guidance despite a more volatile environment [30] - Long-term commitment to improving run rate ROE by 150 basis points from 2025 to 2027 [31] Other Important Information - The company plans to launch a new series of investor briefings starting in June [34] - Fee income was adversely impacted by ASC 606 revenue recognition accounting [24] Q&A Session Summary Question: On buybacks, will the company lean into buybacks in the current macro environment? - Management indicated a willingness to continue elevated buyback levels due to strong cash flow [37] Question: Can you explain the GAAP accounting revenue recognition for Medicare Advantage? - Management provided details on how revenue recognition differs from cash flow, emphasizing the impact of sales mix on fee income [39][40] Question: What is the outlook for PAC in the Consumer division? - Management expects continued growth in PAC, despite potential quarter-to-quarter fluctuations [66] Question: How does the company view the demand for insurance products in a recession? - Management believes demand for products will remain strong due to demographic trends, despite potential economic downturns [70][71] Question: What are the implications of potential shifts from Medicare Advantage to Medicare Supplement? - Management expressed confidence that any shifts would not materially impact the business, as they can benefit from both product lines [76] Question: Can you elaborate on the geographic expansion in the worksite division? - Management confirmed ongoing disciplined geographic expansion contributing to sales growth [85]

First Quarter 2025 Financial and operating results for the period ended March 31, 2025 April 28, 2025 Unless otherwise specified, comparisons in this presentation are between 1Q24 and 1Q25. 1 IMPORTANT LEGAL INFORMATION Forward-Looking Statements OUR PURPOSE We secure the future of middle-income America. OUR MISSION 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 fu ...