CNO Financial Group (CNO) Q2 2024 earnings summary

Executive summary

• Net operating income rose to $114.6 million in Q2 2024, up 84%–94% year-over-year, with operating EPS at $1.05 and net income at $116.3 million.

• Achieved eighth consecutive quarter of sales growth and sixth consecutive quarter of producing agent count growth.

• Book value per diluted share excluding AOCI increased 11% to $36.00.

• Returned $77 million to shareholders in Q2 2024, including $60 million in share repurchases.

• Raised full-year 2024 guidance for operating EPS to $3.30–$3.50 and excess cash flow to $200–$250 million.

Financial highlights

• Operating earnings per diluted share rose 94% year-over-year to $1.05; net operating income up 84%.

• Net income for Q2 2024 was $116.3 million ($1.06 per share), up from $73.7 million ($0.64 per share) in Q2 2023.

• Book value per diluted share (ex-AOCI) was $36.00–$36.55, up 11% year-over-year.

• Expense ratio improved to 19.31% (trailing 12 months), with 2Q24 at 19.3%.

• Free cash flow and holdco liquidity were strong, with unrestricted holding company cash and investments at $429 million.

Outlook and guidance

• Raised 2024 operating EPS guidance to $3.30–$3.50, excluding significant items.

• Increased excess cash flow guidance to $200M–$250M, driven by higher statutory earnings and stable economic conditions.

• Expense ratio range narrowed to 19.0%–19.2%; effective tax rate ~23%.

• Expect to maintain a consolidated RBC ratio of 375%–394% and minimum holdco liquidity of $150M.

• Target leverage range of 25%–28% (ex-AOCI, adjusted for 2025 notes repayment).