CNO Financial Group Reports Third Quarter 2025 Results

Core Insights - CNO Financial Group reported a significant increase in net income for Q3 2025, reaching $23.1 million or $0.24 per diluted share, compared to $9.3 million or $0.09 per diluted share in Q3 2024, driven by strong production and solid earnings [1][10][23] - The company has increased its return on equity (ROE) target by 50 basis points, aiming for a total improvement of 200 basis points through 2027, building on a 2024 run rate of 10% [7][10] Financial Performance - Net operating income for Q3 2025 was $127.2 million, or $1.29 per diluted share, up from $119.2 million, or $1.11 per diluted share, in Q3 2024, reflecting a 7% increase [1][10] - Significant items positively impacted net income and net operating income by $32.2 million, or $0.33 per diluted share, in Q3 2025, compared to $21.9 million, or $0.19 per diluted share, in Q3 2024 [2][10] - Total revenues for Q3 2025 were $1,188.7 million, compared to $1,129.6 million in Q3 2024, indicating a growth in revenue [31] Business Strategy and Operations - The company is focusing on its core insurance offerings by exiting the fee services side of its Worksite Division, which is expected to reduce annual fee revenue by approximately $30 million but increase annual pre-tax income by about $20 million [7][10] - CNO executed its second reinsurance transaction with its Bermuda affiliate, reinsuring $1.8 billion of in-force supplemental health statutory reserves, which is expected to enhance financial stability [7][10] Sales and Market Position - Total new annualized premiums (NAP) increased by 26%, with Life NAP up 32% and Health NAP up 20%, indicating strong sales growth across divisions [7][10] - Direct-to-Consumer and Worksite insurance sales reached record levels in Q3 2025, showcasing the effectiveness of the company's business model [3][10] Shareholder Returns - The company returned $76.4 million to shareholders during the quarter, reflecting a commitment to shareholder value [7][10] - Book value per share increased to $27.24, and book value per diluted share, excluding accumulated other comprehensive loss, rose to $38.10, up 6% from the previous year [7][10]