CNO Financial Group (CNO) investor relations material

Executive summary

• Delivered record full-year results, exceeding or meeting all 2025 guidance metrics, with strong sales momentum and record new annualized premiums up 15% year-over-year.

• Achieved 14th consecutive quarter of sales growth and 12th consecutive quarter of producing agent count growth.

• Operating EPS rose 11% year-over-year to $4.40, or 6% to $4.02 excluding significant items; operating ROE reached 11.4% excluding significant items.

• Returned $386 million to shareholders, up 11% from the prior year, and executed a second reinsurance transaction with a Bermuda affiliate.

• Maintained focus on the underserved middle-income market, leveraging a captive agent distribution model for competitive advantage.

Financial highlights

• Operating earnings per diluted share rose 11% to $4.40; full-year operating EPS excluding significant items was $4.02, above guidance.

• Book value per diluted share, excluding AOCI, reached $38.81, a 7% CAGR over three years.

• Expense ratio for the year was 18.9%, better than guidance.

• Annuity collected premium rose 9%, and client assets in brokerage/advisory grew 24% year-over-year.

• Net operating income for 2025 was $439.2 million, up from $429.3 million in 2024; net income was $229.3 million, down from $420.8 million due to non-operating items.

Outlook and guidance

• 2026 operating EPS expected between $4.25 and $4.45, an 8% increase at midpoint.

• Targeting 200 bps improvement in run rate ROE by 2027, with 2026 guidance aligned to this trajectory.

• Expense ratio expected between 18.8%-19.2%; effective tax rate around 22.5%.

• Free cash flow guidance of $200–$250 million, net of tech modernization investments.

• Entering 2026 with a strong capital position and a clear path to achieving the 2027 ROE target.