CNO Financial Group (CNO) Q2 2025 earnings summary

Executive summary

• Achieved record new annualized premiums of $120 million, up 17% year-over-year, with double-digit insurance sales growth and multiple product line sales records; 12th consecutive quarter of strong sales momentum.

• Operating earnings per diluted share were $0.87, with operating ROE (excluding significant items) at 11.2% for 2Q25; book value per diluted share (ex-AOCI) rose 6% to $38.05.

• Net income for Q2 2025 was $91.8 million, down from $116.3 million in Q2 2024, with both periods affected by non-economic accounting impacts from market volatility.

• Returned $117 million to shareholders in the quarter and $234 million year to date; share repurchases reduced weighted average diluted shares outstanding by 8% over the trailing 12 months.

• Business fundamentals remain strong, with consistent execution of the strategic plan and sustained sales momentum.

Financial highlights

• Total revenues for Q2 2025 were $1.15 billion, up from $1.07 billion in Q2 2024; net investment income for Q2 2025 was $483.7 million, up from $409.1 million in Q2 2024.

• Net operating income for Q2 2025 was $87.5 million, compared to $114.6 million in Q2 2024; insurance product margin for Q2 2025 was $252.4 million, down from $275.1 million in Q2 2024.

• Book value per diluted share (ex-AOCI) at $38.05, up 6% year-over-year; book value per common share as of June 30, 2025 was $25.92.

• Debt to capital ratio improved to 26.1% at June 30, 2025, down from 32.1% at year-end 2024.

• Operating return on equity was 11.8% (trailing 12 months) and 11.2% excluding significant items.

Outlook and guidance

• Reaffirmed 2025 guidance, targeting $3.70–$3.90 operating EPS and a narrowed expense ratio range of 19.0%–19.2% due to better operating leverage.

• On track to achieve a 10.5% operating ROE for 2025 and a three-year target of 11.5% by 2027, with a 150 basis point improvement in run rate operating ROE by 2027.

• Expecting $200–$250 million excess cash flow to holding company and maintaining a 375% consolidated RBC ratio.

• Effective tax rate expected to remain around 23% for 2025.

• Guidance does not reflect any new treaties with the Bermuda company; ongoing discussions with regulators continue.