CNO Financial Group(CNO) - 2024 Q4 - Annual Results

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].