CNO Q1 Earnings Meet Estimates on Higher Collected Premiums

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].