CNO Financial Group(US:CNO)2025-07-29 16:00Financial 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]