CNO Financial Group (CNO) Q4 2025 earnings summary

Executive summary

• Delivered record full-year and quarterly results, exceeding or achieving all 2025 guidance metrics, with record-setting production and strong insurance sales across both Consumer and Worksite divisions.

• 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.

• Focused on the underserved middle-income market with a durable captive agent distribution model.

Financial highlights

• Operating earnings per diluted share reached $4.40, up 11% year-over-year; operating ROE (ex significant items) improved to 11.4%.

• Record total new annualized premium (NAP) up 15% for the year, with both Consumer and Worksite divisions contributing equally.

• Book value per diluted share (ex AOCI) was $38.81 at year-end.

• 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.

• Expense ratio (ex significant items) was 18.9%, better than guidance.

Outlook and guidance

• 2026 operating EPS guidance: $4.25–$4.45, an 8% increase at midpoint; expense ratio expected at 18.8%–19.2%.

• Free cash flow guidance of $200–$250 million, net of tech modernization investments; minimum holding company liquidity of $150 million.

• Targeting 200 bps improvement in run-rate operating ROE by 2027 (from 10% in 2024).

• Effective tax rate expected at 22.5%.

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