CNO Financial Group (CNO) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded all 2025 guidance metrics, delivering record-setting production, strong insurance sales, and robust operating performance across both Consumer and Worksite divisions.

• Operating EPS rose 11% year-over-year to $4.40, or $4.02 excluding significant items; operating ROE reached 11.4% excluding significant items.

• Returned $386 million to shareholders, up 11% from 2024, and completed a second reinsurance transaction with a Bermuda affiliate.

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

Financial highlights

• Total new annualized premium (NAP) up 15% year-over-year, with both Consumer and Worksite divisions contributing equally.

• Book value per diluted share (ex AOCI) reached $38.81 at year-end; book value per share at year-end was $27.92.

• Net operating income for 2025 was $439.2 million ($4.40 per diluted share); net income was $229.3 million ($2.30 per diluted share), impacted by non-operating items.

• Expense ratio (ex significant items) improved to 18.9%, below guidance.

• Annuity collected premiums up 9% for the year; brokerage/advisory client assets up 24%.

Outlook and guidance

• 2026 operating EPS guidance: $4.25–$4.45, with an 8% increase at midpoint; expense ratio expected at 18.8%–19.2%; effective tax rate at 22.5%.

• 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).

• RBC ratio targeted at 360%–390%; debt to total capital ratio of 25%–28%.

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