Core Viewpoint - CNO Financial Group, Inc. reported strong fourth-quarter 2024 results, driven by increased collected premiums across various insurance products, despite facing challenges in investment income [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $1.31, exceeding the Zacks Consensus Estimate by 22.4% and reflecting an 11% year-over-year increase [2]. - Total operating revenues decreased by 2.7% year over year to $1.1 billion, but still surpassed the consensus estimate by 19.9% [2]. - Total insurance policy income rose by 2.9% year over year to $643.6 million, exceeding the Zacks Consensus Estimate of $641.1 million [3]. Investment Income and Expenses - Net investment income fell by 10.4% year over year to $416.6 million [4]. - Total benefits and expenses decreased by 21.1% year over year to $886.7 million, attributed to lower insurance policy benefits and operating costs [5]. Premiums and Revenue Breakdown - Annuity collected premiums increased by 13% year over year to $493.1 million [5]. - New annualized premiums for health products rose by 21.6% year over year, while life products grew by 2.7% year over year [5]. - Fee revenues and other income increased by 13.4% year over year to $78.7 million [4]. Financial Position - As of December 31, 2024, unrestricted cash and cash equivalents stood at $1.7 billion, more than doubling from the end of 2023 [6]. - Total assets increased by 8.1% year over year to $37.9 billion [6]. - Total shareholders' equity improved by 12.8% from the end of 2023 to $2.5 billion [6]. Shareholder Returns - CNO Financial returned $91.6 million to shareholders through share buybacks and $16.4 million in dividends during Q4 2024 [8]. - The company had a remaining repurchase capacity of $240.3 million as of December 31, 2024 [8]. Future Guidance - For 2025, CNO anticipates operating EPS in the range of $3.70-$3.90, indicating a 4.3% decline from the 2024 figure of $3.97 [9]. - Management estimates excess cash flow of $200-$250 million for the holding company in 2025 [9]. - The projected expense ratio for 2025 is between 19-19.4%, with an effective tax rate around 23% [9].

Core Insights - Bankers Life announced its Top Women Financial Advisors (TWFA) for 2025, recognizing the top-performing women in its financial advisory services [1][3] - The 2025 class includes 37 women financial advisors, marking the largest group since the program's inception in 2022 [2] Company Initiatives - Bankers Life emphasizes the recruitment, retention, and advancement of women in the financial services industry, supporting initiatives like the Women's Leadership and Networking Committee (WLNC) [3][4] - The WLNC offers various programs aimed at personal and professional growth for women, including Advancing Financial Advisors, the Superwoman Summit, and the Making Mentors program [4] Company Overview - Bankers Life focuses on the insurance and investment needs of middle-income Americans nearing or in retirement and is part of CNO Financial Group, Inc. [5] - The company operates with approximately 4,900 exclusive agents, including 700 financial representatives across more than 220 U.S. sales offices [5]

Financial Data and Key Metrics Changes - CNO Financial Group reported operating earnings per diluted share of $3.97, an increase of 28% year-over-year, with a 40% increase when excluding significant items [10][32] - Total new annualized premium was up 7% across the enterprise, marking the tenth consecutive quarter of sales growth [9][10] - Book value per diluted share, excluding AOCI, was $37.19, up 10% [12] - Capital and liquidity were well above target levels, with $349 million returned to shareholders, a 50% increase over 2023 [12][32] Business Line Data and Key Metrics Changes Consumer Division - Total NAP in the Consumer Division was up 5% for the full year, with health NAP up 18% and Medicare Supplement NAP up 26% [15][16] - Long-term Care NAP increased by 35% for the year, reflecting growing demand [18] - Annuity collected premiums were up 13% for the year, with record sales in the last two quarters [20][21] Worksite Division - Worksite Division insurance sales were up 16% for the full year and 23% for the fourth quarter, marking the 11th consecutive quarter of insurance growth [25] - New insurance products in the Worksite Division saw double-digit sales growth, with critical illness up 24% and accident insurance up 13% [25][26] - Producing agent count in the Worksite Division was up 8% for the year, continuing a trend of growth [29] Market Data and Key Metrics Changes - Client assets in brokerage and advisory were up 28% to a record $4.1 billion, with new accounts up 13% [21] - The market value of invested assets grew 12% from the prior year, with 96% of the fixed maturity portfolio rated investment-grade [41] Company Strategy and Development Direction - CNO is focused on expanding return on equity (ROE) and has set a target to improve ROE by 150 basis points over the next three years [55] - The company is investing in technology modernization to enhance operational efficiency and support long-term growth [49][58] - CNO aims to leverage its strong sales momentum and agent distribution to drive future growth [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for annuities due to demographic trends and a lack of alternatives for lifetime income [75] - The company anticipates challenges in matching previous quarters' performance due to tougher comparisons but remains optimistic about long-term growth [76] - Management highlighted the importance of maintaining expense discipline while pursuing growth opportunities [66][108] Other Important Information - The new money rate was reported at 6.72%, marking the eighth consecutive quarter above 6% [38] - CNO's consolidated risk-based capital ratio was 383%, indicating a strong capital position [42] Q&A Session Summary Question: Thoughts on buybacks and excess free cash flow guidance - Management indicated that free cash flow guidance should be considered alongside excess cash position relative to minimum liquidity [63] Question: Geographic expansion opportunities - Management believes there is significant potential for geographic expansion, particularly in the Worksite Division [66] Question: Additional Bermuda opportunities - Management is evaluating opportunities in Bermuda but did not provide specifics, focusing on establishing relationships and team capabilities [70] Question: Surrender rates and sales activity in fixed indexed annuities - Surrender rates have moderated, and management is optimistic about continued strong sales activity in annuities [72][74] Question: Breakdown of tech investments - The technology investment focuses on converting legacy systems to cloud-based solutions to enhance flexibility and efficiency [80][81] Question: Confidence in ROE improvement - Management emphasized a cautious approach to guidance, highlighting a strong track record and various initiatives to support ROE growth [90][94] Question: Drivers of excess cash flow outlook - The outlook for excess cash flow is influenced by organic growth pace, economic conditions, and investment portfolio risk [108] Question: Long-term expense ratio expectations - Management expects the expense ratio to improve over time as the company grows and develops operating leverage [112]

Fourth Quarter 2024 Financial and operating results for the period ended December 31, 2024 February 6, 2025 Unless otherwise specified, comparisons in this presentation are between 4Q23 and 4Q24. 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 ...

Core Insights - CNO Financial reported a revenue of $1.14 billion for the quarter ended December 2024, reflecting a decrease of 2.7% year-over-year, while EPS increased to $1.31 from $1.18 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $949.73 million by 19.92%, and the EPS also surpassed the consensus estimate of $1.07 by 22.43% [1] Financial Performance Metrics - Insurance policy income was reported at $643.60 million, slightly above the estimated $641.13 million, marking a year-over-year increase of 2.9% [4] - The Insurance Product Margin for Annuity was $55 million, below the average estimate of $62.07 million from two analysts [4] - The Insurance Product Margin for Life was reported at $68 million, exceeding the average estimate of $57.02 million [4] - The Insurance Product Margin for Health was $130.10 million, slightly above the estimated $129.10 million [4] Stock Performance - CNO shares have returned +7.9% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - CNO Financial reported quarterly earnings of $1.31 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and showing an increase from $1.18 per share a year ago, resulting in an earnings surprise of 22.43% [1] - The company generated revenues of $1.14 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 19.92%, although this represents a slight decrease from $1.17 billion in the same quarter last year [2] - CNO has outperformed the S&P 500, with shares increasing by approximately 7.7% since the beginning of the year compared to the S&P 500's gain of 3.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $943.95 million, while for the current fiscal year, the estimate is $3.79 on revenues of $3.88 billion [7] - The estimate revisions trend for CNO is favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperformance in the near future [6] Industry Context - The Insurance - Multi line industry, to which CNO belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Hamilton Insurance, another company in the same industry, is expected to report a quarterly earnings decline of 33.9% year-over-year, with revenues projected to be $571.22 million, reflecting a 15.4% increase from the previous year [9][10]

Financial Performance - Total revenues for 2023 reached $4,146.8 million, with a year-to-date (YTD) total of $4,449.5 million for 2024[9]. - Net income for 2023 was $276.5 million, while the YTD net income for 2024 stands at $404.0 million[9]. - The company experienced a significant increase in income before income taxes, reaching $356.8 million in 2023 and $518.3 million in 2024[9]. - Net operating income for Q4 2023 was $138.0 million, compared to $133.9 million in Q4 2022, reflecting a growth of about 3.1%[12]. - Net income for 2023 reached $404.0 million, compared to $276.5 million in 2022, which is an increase of approximately 46.1%[12]. - The company reported a net operating income of $356.1 million for the full year 2023, which is $3.09 per diluted share[56]. Assets and Liabilities - Total assets increased from $33,957.2 million in Mar-23 to $37,852.6 million in Dec-24, reflecting a growth of approximately 11.3%[6]. - Total liabilities rose from $31,925.4 million in Mar-23 to $35,354.2 million in Dec-24, an increase of about 10.4%[6]. - Shareholders' equity decreased from $2,031.8 million in Mar-23 to $2,498.4 million in Dec-24, showing a decline of approximately 22.5%[6]. - Cash and cash equivalents increased significantly from $425.0 million in Mar-23 to $1,656.7 million in Dec-24, a rise of approximately 289.5%[6]. Insurance Products and Premiums - The company reported an increase in collected premiums and insurance policy income, indicating a positive trend in revenue generation[6]. - New annualized premiums for health and life insurance products showed a significant increase, contributing to overall growth in the insurance segment[6]. - Total collected premiums for 2023 reached $4,098.0 million, with a quarterly increase to $1,068.1 million in Q4[22]. - Total insurance policy income for 2023 was $2,505.5 million, with Q4 income at $625.7 million[22]. - Insurance policy income for the year-to-date (YTD) reached $1,618.3 million, showing a steady increase from $1,594.6 million in the previous year[14]. Investment Income - The company reported a net investment income of $1,250.2 million for 2023, increasing to $1,419.4 million in 2024[9]. - Net investment income for 2023 totaled $1,499.7 million, with a quarterly breakdown of $343.0 million in Q1, $399.7 million in Q2, $291.8 million in Q3, and $465.2 million in Q4[35]. - The total net investment income for 2024 is projected to be $1,748.8 million, indicating a growth trajectory from 2023[35]. - Investment income allocated to product lines is based on the book yield of investments backing the business, applied to average net insurance liabilities[65]. Margins and Expenses - Total insurance product margin for 2023 was $1,040.0 million, up from $959.0 million in 2022, representing an increase of approximately 8.5%[12]. - The annuity margin increased to $91.1 million in Q4 2023 from $63.6 million in Q4 2022, marking a significant rise of approximately 43.3%[12]. - Total expenses for the year amounted to $64.0 million, with consistent quarterly expenses of $7.6 million in the first three quarters[38]. - Allocated expenses for 2023 totaled $615.3 million, slightly higher than $599.0 million in 2022, reflecting an increase of about 2.2%[12]. Future Projections - The company anticipates continued growth in 2024, with preliminary amounts indicating a potential increase in net gain from operations[32]. - The forecast for insurance policy income in Q1 2024 is $182.0 million, increasing to $183.3 million in Q4 2024[18]. - The company aims to maintain a consistent growth trajectory in net investment income, targeting $39.6 million in Q1 2024[18]. - The total insurance product margin for 2024 is projected at $1,012.7 million, excluding significant items[48]. Shareholder Information - The weighted average basic shares outstanding decreased from 114,343.1 thousand at the beginning of 2023 to 109,357.5 thousand by the end of 2023[26]. - The diluted shares outstanding at the end of 2023 were 111,750.3 thousand, down from 116,176.0 thousand at the beginning of 2023[26]. - The company repurchased a total of 2,201.3 thousand shares in 2023, with significant repurchases occurring in each quarter[26]. Market Strategy - The company is focusing on market expansion and new product development to enhance its competitive position in the industry[6]. - The company anticipates continued growth in policyholder account balances and new business issuances in the upcoming quarters, driven by market expansion strategies[29].

Exceptional fourth quarter, full-year earnings and sales; Entering 2025 well-positioned for sustainable growth and ROE expansionCARMEL, Ind., Feb. 6, 2025  /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) today announced its financial results for the fourth quarter and full year ended December 31, 2024.  Net income in 4Q24 was $166.1 million, or $1.58 per diluted share, compared to $36.3 million, or $0.32 per diluted share, in 4Q23. Net income for the year ended December 31, 2024 was $404.0 million, or ...

Industry Overview - The insurance industry is expected to benefit from improved pricing, strong retention rates, an active M&A environment, product redesign, and reinsurance agreements [1] - Rising expenses and interest rate cuts are likely to negatively impact performance [1] Earnings Expectations - Total earnings for finance companies in Q4 2024 are anticipated to rise by 22.6% year-over-year, with revenues expected to improve by 6.2% [2] - Rising premiums are expected to contribute positively to top-line growth for insurance companies in Q4 [3] Investment Strategies - Insurers are likely to seek alternative investments such as private equity, hedge funds, and real estate due to interest rate cuts [4] - M&A activity is expected to increase as lower interest rates encourage insurers to seek loans for expansion [4] Market Trends - The growing middle class in emerging markets and declining pension provisions are expected to drive growth in savings products [5] - The bundling of products and redesigning to meet consumer needs are changing the insurance landscape, enhancing product demand and retention [6] Technology Investments - Significant technology investments are anticipated to automate processes and improve operational efficiencies, potentially curbing costs and aiding margins [7] Company-Specific Insights - Reinsurance Group of America (RGA) is expected to report a 10.4% rise in earnings per share (EPS) to $5.22, with revenues of $5.8 billion, reflecting an 11.5% growth [10] - CNO Financial's EPS is estimated at $1.07, indicating a 9.3% decline, while revenues are expected to grow by 18.9% to $949.7 million [12] - Lincoln National's EPS is projected to improve by 20.7% to $1.75, with revenues expected to exceed $4.7 billion, more than doubling from the previous year [15] - Principal Financial's EPS is estimated at $1.95, reflecting a 6.6% growth, while revenues are expected to decline by 5% to $4 billion [17]

Core Viewpoint - CNO Financial (CNO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for CNO is projected at $3.73 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 20.7% [9]. - Over the past three months, the Zacks Consensus Estimate for CNO has risen by 3.9%, indicating a trend of increasing earnings estimates [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, making it a reliable tool for investors to gauge stock performance [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - CNO's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term [11]. Market Dynamics - The correlation between earnings estimate revisions and stock price movements is strong, with institutional investors often driving price changes based on these revisions [5][6]. - Rising earnings estimates for CNO imply an improvement in the company's underlying business, which could lead to increased buying pressure and a higher stock price [6].