CNO Financial Group (CNO) Q4 2024 earnings summary

Executive summary

• Delivered record sales and earnings growth in 2024, with 10th consecutive quarter of sales momentum and growth across nearly all product categories.

• Operating earnings per diluted share reached $3.97, up 28% year-over-year; excluding significant items, up 40%.

• Returned $349 million to shareholders, a 50% increase over 2023, and raised the quarterly dividend for the 12th consecutive year.

• Strategic focus on sustained profitable growth, ROE expansion, and leveraging technology investments.

• Entering 2025, positioned for continued profitable growth and ROE expansion.

Financial highlights

• Net operating income for 2024 was $429.3 million, up from $356.1 million in 2023; operating EPS $3.97, up from $3.09.

• Book value per diluted share (ex-AOCI) was $37.19, up 10% year-over-year.

• Net investment income allocated to products grew 7% for the quarter; total investment income up 16% for the quarter and 9% for the year.

• Expense ratio excluding significant items was 19.2% for 2024, improved from 19.4% in 2023.

• Insurance product margin up 9% excluding significant items; investment income not allocated to product lines up 70% in 4Q24.

Outlook and guidance

• 2025 operating earnings per share expected between $3.70 and $3.90; run rate operating ROE target of ~10.5%.

• Targeting operating ROE improvement of 150 basis points over three years, reaching 10.5% in 2025 and 11.5% by 2027.

• 2025 expense ratio expected between 19.0% and 19.4%, with $60 million in tech modernization costs included.

• Excess cash flow to holding company projected at $200–250 million for 2025; consolidated RBC ratio target 375%.

• Guidance excludes significant items.