CNO Financial Group Reports Strong Earnings Growth and Strategic Outlook for 2026

CNO Financial Group has commenced 2026 on a positive note, demonstrating increased operating earnings, robust sales momentum, and a rise in investment income. CEO Gary Bhojwani and CFO Paul McDonough reported growth in both the consumer and worksite segments, while addressing trends in Medicare Supplement claims, operational expenses, and strategic capital management. Bhojwani highlighted that first-quarter operating earnings per diluted share surged by 33% to $1.05, or a 42% increase when excluding previous period items. This marks the 15th consecutive quarter of sales growth and the 13th quarter for agent count growth, reflecting steady advancement in the firm's market reach. The company's total new annualized premiums rose by 11%, driven by its focus on the middle-income market and a captive agent distribution strategy. Bhojwani emphasized improvements in capital and book value, noting a $77 million return to shareholders and a 5% increase in book value per diluted share (excluding AOCI), reaching $38.98. Within CNO's consumer segment, Life and Health new annualized premium (NAP) grew by 9%, with total Health NAP increasing by 20% for the 15th consecutive quarter. Medicare plans significantly impacted growth, showing a 24% increase in total Medicare policies sold and a 53% rise in Medicare Supplement NAP, attributed to a consumer shift back to Medicare Supplement from Medicare Advantage plans. McDonough reported challenges in Medicare Supplement claims, partially offset by growth strategies, with planned rate increases set for 2026 to manage claims exposures. Two sets of rate increases filed in 2025 are expected to fully manifest by the end of 2026, contingent on ongoing claims assessments and additional filings. CNO's worksite division exhibited strong growth with a 22% increase in life and health NAP, marking the 16th quarter of expansion. Product advancements were notable in life insurance (up 56%), hospital indemnity (up 121%), and accident insurance (up 18%). New client NAP surged by 65%, driven by expanded geographic presence and deeper market penetration. The company's net investment income increased by 6% year-over-year, supported by higher assets linked to growth and improved book yields. McDonough noted consistent new money rates above 6% for 13 quarters, with $1.3 billion in new investments averaging a five-year duration. Looking forward, McDonough reaffirmed a positive outlook for 2026 despite macroeconomic volatility, suggesting potential adjustments to 2027 ROE goals predicated on favorable operational outcomes. CEO Bhojwani reiterated that the current 12% ROE is an interim target as CNO Financial Group continues its trajectory of strategic expansion and market leadership.