CNO Financial Group (CNO) Q1 2026 earnings summary

Executive summary

• Operating earnings per diluted share rose 33% year-over-year to $1.05, and 42% excluding significant items, with net income for Q1 2026 at $37.7 million, up from $21.5 million, driven by higher insurance product margins and investment income.

• Achieved 15 consecutive quarters of sales growth and 13 consecutive quarters of producing agent count growth, with total new annualized premiums up 11% year-over-year and strong Medicare policy sales growth.

• Maintained a robust capital position, returning $77 million to shareholders and repurchasing $60 million in shares, reducing weighted average diluted shares by 7%.

• Continued investment in technology and agent productivity, supporting growth across consumer and worksite divisions.

Financial highlights

• Book value per diluted share excluding AOCI increased to $38.98, with total revenues for Q1 2026 at $1,029.6 million, up from $1,004.1 million.

• Net operating income rose to $101.3 million from $81.1 million, and net investment income increased 6% to $315.2 million.

• Life and Health NAP up 9%, Total Health NAP up 20%, Supplemental Health up 10%, and Medicare Supplement NAP up 53%.

• Annuity collected premiums down 2%, but account values up 7%; client assets in brokerage/advisory up 27%.

• Operating ROE was 13.1% (12.2% excluding significant items); expense ratio improved to 18.9%.

Outlook and guidance

• Affirmed 2026 guidance: operating EPS of $4.25–$4.45, expense ratio of 18.8%–19.2%, effective tax rate ~22.5%, and free cash flow of $200–$250 million.

• RBC ratio targeted at 360%–390%, minimum holding company liquidity of $150 million, and operating ROE improvement targeted by 2027.

• Exit from Worksite Division fee services business expected by mid-2026, reducing annual fee revenue by ~$30 million but increasing pre-tax income by ~$20 million.