CNO Financial Group(US:CNO)2025-04-29 15:00Financial 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]