Financial Data and Key Metrics Changes - CNO Financial Group reported operating earnings per diluted share of $0.87, benefiting from favorable insurance product margins and solid investment results [7][22] - Book value per diluted share, excluding AOCI, increased by 6% to $38.5 [8] - The company returned $117 million to shareholders in the quarter and $234 million year-to-date [8][22] - Operating return on equity was 11.8% to 12.1% on a trailing twelve-month basis, with a target of around 10.5% for the full year 2025 [23][29] Business Line Data and Key Metrics Changes - The Consumer division achieved record total new annualized premiums of $120 million, up 17%, with double-digit growth in both divisions [7][10] - Annuity collected premiums surpassed $500 million for the first time in a single quarter, driven by 19% growth [11] - Life and Health NAP posted double-digit growth of 17%, with total life insurance up 20% and direct-to-consumer life insurance sales up 29% [13][14] - Worksite life and health NAP increased by 16%, with life insurance sales up 54% [17][18] Market Data and Key Metrics Changes - Client assets in brokerage and advisory rose by 27% to $4.6 billion, with new accounts up 13% [12] - The market value of invested assets grew by 5% in the quarter, with 96% of the fixed maturity portfolio rated investment grade [28] Company Strategy and Development Direction - CNO aims to serve the growing needs of the middle-income market with diverse products and distribution channels [31] - The company is focused on improving return on equity and delivering consistent, repeatable results [31][32] - Investments in technology are enhancing customer experience and operational efficiency [17][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained profitable growth and the ability to navigate the evolving economic environment [31][32] - The company anticipates continued strong sales momentum and improved profitability in the second half of the year [31] Other Important Information - CNO reaffirmed its 2025 guidance, lowering the upper bound of the expense ratio range to 19.2% from 19.4% [29] - The company is engaged in discussions with regulators regarding opportunities with its Bermuda operation [97][98] Q&A Session Summary Question: Can you provide more color on the momentum from the web digital piece of direct-to-consumer sales? - Management noted strong growth in direct-to-consumer sales, particularly from web and digital channels, which were up 39% year-over-year [36][37] Question: Can you discuss the expense experience in the quarter and the change in guidance? - Management indicated that expenses were generally in line with expectations, with a better expense ratio reflecting improved operating leverage [52] Question: What is the claims experience for long-term care? - Management reported a continuation of favorable claims experience, with expectations for LTC claims to trend closer to pre-COVID levels [54] Question: How diversified is the mix of carriers for Medicare Advantage? - Management confirmed a diversified mix of about 20 carriers, with no concentration risk, and expressed confidence in the demand for both Medicare Supplement and Medicare Advantage products [66][68] Question: What is the outlook for annuity sales and spreads? - Management indicated that while strong sales are expected to continue, comparable conditions may become tougher, and spreads have remained stable [70][73]

Financial Data and Key Metrics Changes - CNO Financial Group reported operating earnings per diluted share of $0.87, benefiting from favorable insurance product margins and solid investment results [6][22] - Total new annualized premiums reached a record $120 million, up 17% year-over-year, marking the twelfth consecutive quarter of strong sales momentum [6][5] - Book value per diluted share, excluding AOCI, increased by 6% to $38.5 [7] Business Line Data and Key Metrics Changes - The Consumer division experienced double-digit growth across nearly all product lines, with annuity collected premiums surpassing $500 million, driven by 19% growth [10][9] - Life and Health NAP posted a 17% increase, with total life insurance up 20% and direct-to-consumer life insurance sales up 29% [12][13] - Worksite life and health NAP grew by 16%, with life insurance sales up 54% [16][17] Market Data and Key Metrics Changes - Client assets in brokerage and advisory increased by 27% to $4.6 billion, with new accounts up 13% [11] - The market value of invested assets grew by 5%, with 96% of the fixed maturity portfolio rated investment grade [27] Company Strategy and Development Direction - CNO remains focused on serving the middle-income market with diverse products and distribution, aiming for sustained profitable growth [30] - The company is investing in technology to enhance customer experience and operational efficiency, including a new customer relationship management platform [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a return on equity of around 10.5% for 2025 and a target of 11.5% by 2027 [23][30] - The company is well-positioned to navigate the evolving economic environment and improve profitability [30] Other Important Information - CNO returned $117 million to shareholders in the quarter and $234 million year-to-date [7] - The company reaffirmed its 2025 guidance, lowering the upper bound of the expense ratio range to 19.2% from 19.4% [29] Q&A Session Summary Question: Can you provide more color on the momentum from the web digital piece of direct-to-consumer sales? - Management noted strong growth in direct-to-consumer sales, particularly from web and digital channels, which were up 39% year-over-year [34][36] Question: What are the current trends in Medicare Supplement margins? - Management highlighted that Medicare Supplement margins have held up well, with a modest increase in claims experience [38][44] Question: Can you discuss the expense experience in the quarter? - Management indicated that expenses were in line with expectations, with a better expense ratio reflecting improved operating leverage [49][50] Question: How is the competition in the annuity space evolving? - Management acknowledged increased competition in the annuity market but emphasized that CNO targets a different client base, focusing on middle-income consumers [60][61] Question: What is the status of the Bermuda operation? - Management expressed satisfaction with the development of the Bermuda operation and ongoing discussions with regulators [95][96]

Financial Data and Key Metrics Changes - Operating earnings per diluted share were $0.79, up 52%, and $0.74, up 42%, excluding significant items [5][25] - Book value per diluted share, excluding AOCI, was $37.03, up 6% [7] - Operating return on equity excluding significant items was 11.9% on a trailing twelve-month basis [26] Business Line Data and Key Metrics Changes - Consumer division saw annuity collected premiums up 12%, account values up 7%, and premium per policy up 19% [10] - Health NAP was up 9%, with Medicare Supplement NAP up 24% and Medicare Advantage policies up 42% [13][14] - Worksite insurance sales were up 11%, with critical illness insurance up 37% and life insurance up 17% [19] Market Data and Key Metrics Changes - New money rates exceeded 6% for nine consecutive quarters, with a new money rate of 6.43% [6][28] - Total investment income was up 16% for the quarter, marking the sixth consecutive quarter of growth [29] Company Strategy and Development Direction - The company aims to leverage its business model for sustained profitable growth and drive ROE expansion [8][32] - Focus on reaching the underserved middle-income market through a combination of virtual connections and local agents [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged deteriorating visibility into macroeconomic drivers but expressed confidence in navigating volatility [7][34] - The company reaffirmed its full-year guidance for 2025, despite acknowledging increased risks due to market volatility [31][32] Other Important Information - The company returned $117 million to shareholders, maintaining strong capital and liquidity levels [6] - A new product, Optimize Clear, was introduced to enhance service offerings [23] Q&A Session Summary Question: On buybacks and macro environment - Management indicated a willingness to continue share buybacks, with $100 million deployed in the first quarter [37] Question: Fee revenue and GAAP accounting - Management explained the impact of ASC 606 on revenue recognition, noting potential future reversals [40][41] Question: Outlook for direct-to-consumer life sales - Management expressed optimism for a bounce back in sales, while acknowledging shifts in advertising strategies [58] Question: Medicare business and potential shifts - Management noted strong growth in Medicare Advantage policies and indicated a potential shift back to Medicare Supplement could be beneficial [72][74] Question: Geographic expansion in worksite - Management confirmed ongoing geographic expansion efforts and expected continued growth from new regions [82]

Financial Data and Key Metrics Changes - Operating earnings per diluted share were $0.79, up 52%, and $0.74, up 42% excluding significant items [5][24] - Book value per diluted share, excluding AOCI, was $37.03, up 6% [7] - Capital and liquidity remain well above target levels after returning $117 million to shareholders [6] Business Line Data and Key Metrics Changes - Consumer division saw annuity collected premiums up 12%, account values up 7%, and premium per policy up 19% [10] - Health NAP was up 9%, with Medicare Supplement NAP up 24% and Medicare Advantage policies up 42% [13][14] - Worksite insurance sales were up 11%, with critical illness insurance up 37% and life insurance up 17% [19] Market Data and Key Metrics Changes - New money rates exceeded 6% for nine consecutive quarters [6] - Total investment income was up 16% for the quarter, marking the sixth consecutive quarter of growth [28] - The market value of invested assets grew 11% in the quarter [29] Company Strategy and Development Direction - The company aims to leverage its business model for sustained profitable growth and drive ROE expansion [8] - Focus on reaching the underserved middle-income market remains a key differentiator [9] - Introduction of new products like Optimize Clear to enhance service offerings [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges deteriorating visibility into macroeconomic drivers but expresses confidence in navigating volatility [7][31] - The company reaffirms its full-year guidance despite a more volatile environment [30] - Long-term commitment to improving run rate ROE by 150 basis points from 2025 to 2027 [31] Other Important Information - The company plans to launch a new series of investor briefings starting in June [34] - Fee income was adversely impacted by ASC 606 revenue recognition accounting [24] Q&A Session Summary Question: On buybacks, will the company lean into buybacks in the current macro environment? - Management indicated a willingness to continue elevated buyback levels due to strong cash flow [37] Question: Can you explain the GAAP accounting revenue recognition for Medicare Advantage? - Management provided details on how revenue recognition differs from cash flow, emphasizing the impact of sales mix on fee income [39][40] Question: What is the outlook for PAC in the Consumer division? - Management expects continued growth in PAC, despite potential quarter-to-quarter fluctuations [66] Question: How does the company view the demand for insurance products in a recession? - Management believes demand for products will remain strong due to demographic trends, despite potential economic downturns [70][71] Question: What are the implications of potential shifts from Medicare Advantage to Medicare Supplement? - Management expressed confidence that any shifts would not materially impact the business, as they can benefit from both product lines [76] Question: Can you elaborate on the geographic expansion in the worksite division? - Management confirmed ongoing disciplined geographic expansion contributing to sales growth [85]