CNO Q4 Earnings Beat on Higher Annuity & Health Premiums

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].