CNO Financial Group Reports 2025 Success with Record Insurance Growth
CNO Financial Group, Inc. (NYSE: CNO) announced its financial highlights for the fourth quarter and full year of 2025, showcasing a promising trajectory in the insurance industry. With 14 consecutive quarters of substantial insurance sales growth, CNO reported a 15% increase in new annualized premiums and reached several production records. CEO Gary C. Bhojwani attributed this success to favorable insurance product margins, positive investment returns, and effective cost management, resulting in an 11% growth in operating earnings per share. Furthermore, CNO returned $386 million to shareholders, marking an 11% increase from the prior year, driven by robust cash flow and a significant reinsurance transaction.
CNO's strong financial performance is backed by a solid capital position, positioning it well to meet its 2027 return on equity objectives. The 2025 results highlighted differences between net operating income and GAAP net income due to the exclusion of non-operating items like goodwill impairment and investment market value fluctuations. In the fourth quarter of 2025, CNO reported insurance product income of $1.19 per diluted share, an 18% rise from 4Q24. However, net investment income not allocated to product lines fell by 3%, impacted by market interest rate changes and credit losses.
Strategic Initiatives and Financial Stability
Operational improvements highlight CNO's commitment to strategic initiatives, such as the technology modernization effort "TechMod," initiated in the second quarter of 2025, with a $9.9 million non-operating expense recorded in 4Q25. CNO also incurred a $5.2 million impairment charge due to the discontinuation of a business segment, refocusing efforts on core operations. The insurer's investment portfolio included $24.7 billion in fixed maturities at amortized cost, with unrealized losses mainly attributed to interest rate volatility.
By the end of 2025, CNO's statutory risk-based capital ratio for its U.S. insurance subsidiaries was estimated at 380%. The company maintained liquidity with $351.4 million in unrestricted cash and investments at year-end, slightly down from $372.5 million at the end of 2024. CNO's strategy to enhance shareholder value included the repurchase of 1.5 million shares during 4Q25, with $420.4 million remaining under the stock repurchase authorization.
Focus on Sustained Growth and Technology Modernization
CNO's book value per share increased to $27.92 from $24.75 year-over-year, due to a significant reduction in its debt-to-capital ratio following the repayment of 2025 Notes. The insurer remains focused on sustaining growth through disciplined management of expenses, maintaining strong margins on insurance products, and executing strategic initiatives for technology and market competitiveness. Analysts and stakeholders can access detailed financial and non-GAAP information in CNO's SEC filings available on their website.