CNO Q3 Earnings Top on Strong Life Collected Premiums, Stock Up 4%

Core Insights - CNO Financial Group, Inc. (CNO) shares increased by 3.5% following the release of its third-quarter 2025 results, driven by strong premium collections from annuity, life, and health products, alongside rising new annualized premiums and higher fee revenues, although partially offset by increased total benefits and expenses [1][10]. Financial Performance - CNO reported adjusted earnings per share (EPS) of 96 cents, exceeding the Zacks Consensus Estimate by 1.1%, and an increase from 92 cents a year ago [2][10]. - Operating revenues reached $1.2 billion, marking a 5.3% year-over-year increase and surpassing the consensus estimate by 26.3% [2][10]. - Total insurance policy income rose 2.1% year over year to $658.4 million, beating the Zacks Consensus Estimate of $653 million [3]. Premiums and Expenses - Collected premiums from annuity, life, and health products totaled $1.1 billion, reflecting a 2.1% year-over-year increase [5]. - New annualized premiums for health products surged by 20.2% year over year, while life products increased by 32.1% [6]. - Total benefits and expenses rose by 3% year over year to $1.2 billion, driven by higher operating costs [6]. Investment and Assets - Net investment losses were reported at $8.8 million, an improvement from the previous year's loss of $11.1 million [4]. - General account assets grew by 4.5% year over year to $382.9 million, while policyholder and other special-purpose portfolios increased by 33.3% to $116.8 million [4]. Shareholder Returns - CNO returned $60 million to shareholders through share buybacks and $16.4 million in dividends during the third quarter, with a remaining repurchase capacity of $480.4 million [11]. Guidance and Projections - For 2025, CNO anticipates operating EPS in the range of $3.75-$3.85, an increase from the previous estimate of $3.70-$3.90 [12]. - The company now estimates excess cash flow to the holding company between $365-$385 million, up from the prior range of $200-$250 million [12]. - The projected expense ratio is around 19%, improved from the previous estimate of 19-19.2% [13].