Cno Financial Group . 5.125 Stock Earnings Reports

CNO Financial reported a strong start to 2026: operating earnings per diluted share were $1.05, up 33% year-over-year (42% excluding prior-period significant items). The company delivered its 15th consecutive quarter of sales growth and 13th consecutive quarter of producing agent count growth. Total new annualized premiums (NAP) were up 11%, with Consumer Life & Health NAP +9% and Worksite Life & Health NAP +22%. Medicare remains a strong growth driver (Medicare policies sold +24%, Medicare supplement NAP +53%), benefiting from market disruption in Medicare Advantage. Annuity collected premiums were $434 million (down 2% on a strong comp) while account values increased 7%; total client assets (including brokerage) reached a record and combined client assets exceed $18 billion (+12%). Net investment income rose 6% YoY (10th consecutive quarter of growth), supported by asset growth and higher new-money rates (13 consecutive quarters >6%); $1.3 billion of new investments in Q1 with ~5-year average duration. Insurance product margins were generally favorable (benefits from block growth, favorable LTC morbidity, favorable life mortality), with Medicare Supplement facing modest adverse claims that management is addressing via rate filings. Capital and liquidity remain robust: holding company liquidity $280 million, consolidated RBC managed in a 360–390% target range, and debt-to-capital 26.4%; the company returned $77 million to shareholders in the quarter, including $60 million of buybacks. Management affirmed 2026 guidance and said it is likely to raise its 2027 ROE ambition (12% was a waypoint), but will update multi-year ROE targets no later than early next year. Key near-term items for investors: timing/impact of Medicare Supplement rate increases (effective 1/1/26 and 7/1/26 with most impact by Q4), expected normalization of the expense ratio over the remainder of the year (Q1 expense ratio benefited from lower-than-planned spending), continued favorable long-term care experience, and disciplined investment and capital deployment (no pressure to issue funding agreements unless economics meet targets).