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CNO Q1 Earnings Meet Estimates on Higher Collected Premiums
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Shares of CNO Financial Group, Inc. (CNO - Free Report) have fallen 4.3% since it reported first-quarter 2025 results on April 28. The quarterly results benefited from increased collected premiums across annuity, life and health products, driving an increase in total insurance policy income. A decline in the overall expense level also contributed to the upside. However, the positives were partly offset by softer investment results and lower fee revenues.
CNO Financial reported first-quarter adjusted earnings per share (EPS) of 79 cents, which was in line with the Zacks Consensus Estimate. The bottom line advanced 51.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Operating revenues slipped 12.6% year over year to $1 billion. Yet, the top line outpaced the consensus mark by 5.2%.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
Total insurance policy income of $650.7 million improved from the year-ago period of $628.4 million but was lower than the Zacks Consensus Estimate of $651.4 million. The metric gained from increased collected premiums from annuity, life and health products.
Net investment income decreased to $311.5 million from the year-ago figure of $469.2 million. General account assets of $375.1 million climbed 24.2% year over year and beat the consensus mark of $328 million. Policyholder and other special-purpose portfolios totaled negative $63.6 million, which deteriorated from the prior-year quarter’s $167.3 million. Fee revenues and other income were $48.7 million, which decreased 4.7% year over year.
Annuity collected premiums of $442 million improved 12% year over year. The same for health collected premiums was $405.7 million, up 0.2% year over year, and for life products was at $244.4 million, 3% growth. The total collected premiums grew 5.5% year over year to $1.1 billion.
New annualized premiums for health products increased 8.8% year over year, while the same for life products decreased 5.3% year over year. Annuity, Health and Life products accounted for 22.5%, 52.1% and 25.4%, respectively, of CNO’s insurance margin.
Total benefits and expenses of $986.4 million decreased 2.4% year over year due to lower insurance policy benefits, interest expenses, and other operating costs and expenses.
CNO’s Financial Update (As of March 31, 2025)
CNO Financial exited the first quarter with unrestricted cash and cash equivalents of $928.2 million, which declined from the 2024-end level of $1.7 billion.
Total assets of $37.4 billion decreased from $37.9 billion as of the 2024-end.
The debt-to-capital ratio was 42% at the first-quarter end, which improved 30 basis points (bps) from the 2024-end figure.
Total shareholders’ equity of $2.5 billion improved 1.3% from the 2024-end level.
Book value per common share was $25.33, which rose 3% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 340 bps year over year to 11.9% at the first-quarter end.
CNO Financial rewarded its shareholders with $99.9 million in the form of share buybacks and $16.9 million in dividends during the first quarter.
As of March 31, 2025, the company had a leftover repurchase capacity of $640.4 million.
CNO’s 2025 Guidance Reaffirmed
CNO Financial anticipates operating EPS to be in the range of $3.70-$3.90.
For 2025, management estimates excess cash flow in the band of $200-$250 million to the holding company.
The company projects the expense ratio to be in the band of 19-19.4% for 2025. It estimates the effective tax rate to be around 23%. Management aims to achieve leverage within the band of 25-28%.
The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.29 billion, implying 9.2% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.20 per share. It has remained stable over the past week. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 160.7%. The consensus estimate for current-year revenues is pegged at $626.2 million, suggesting 25.2% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.
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CNO Q1 Earnings Meet Estimates on Higher Collected Premiums
Shares of CNO Financial Group, Inc. (CNO - Free Report) have fallen 4.3% since it reported first-quarter 2025 results on April 28. The quarterly results benefited from increased collected premiums across annuity, life and health products, driving an increase in total insurance policy income. A decline in the overall expense level also contributed to the upside. However, the positives were partly offset by softer investment results and lower fee revenues.
CNO Financial reported first-quarter adjusted earnings per share (EPS) of 79 cents, which was in line with the Zacks Consensus Estimate. The bottom line advanced 51.9% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Operating revenues slipped 12.6% year over year to $1 billion. Yet, the top line outpaced the consensus mark by 5.2%.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
CNO’s Q1 Performance
Total insurance policy income of $650.7 million improved from the year-ago period of $628.4 million but was lower than the Zacks Consensus Estimate of $651.4 million. The metric gained from increased collected premiums from annuity, life and health products.
Net investment income decreased to $311.5 million from the year-ago figure of $469.2 million. General account assets of $375.1 million climbed 24.2% year over year and beat the consensus mark of $328 million. Policyholder and other special-purpose portfolios totaled negative $63.6 million, which deteriorated from the prior-year quarter’s $167.3 million. Fee revenues and other income were $48.7 million, which decreased 4.7% year over year.
Annuity collected premiums of $442 million improved 12% year over year. The same for health collected premiums was $405.7 million, up 0.2% year over year, and for life products was at $244.4 million, 3% growth. The total collected premiums grew 5.5% year over year to $1.1 billion.
New annualized premiums for health products increased 8.8% year over year, while the same for life products decreased 5.3% year over year. Annuity, Health and Life products accounted for 22.5%, 52.1% and 25.4%, respectively, of CNO’s insurance margin.
Total benefits and expenses of $986.4 million decreased 2.4% year over year due to lower insurance policy benefits, interest expenses, and other operating costs and expenses.
CNO’s Financial Update (As of March 31, 2025)
CNO Financial exited the first quarter with unrestricted cash and cash equivalents of $928.2 million, which declined from the 2024-end level of $1.7 billion.
Total assets of $37.4 billion decreased from $37.9 billion as of the 2024-end.
The debt-to-capital ratio was 42% at the first-quarter end, which improved 30 basis points (bps) from the 2024-end figure.
Total shareholders’ equity of $2.5 billion improved 1.3% from the 2024-end level.
Book value per common share was $25.33, which rose 3% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 340 bps year over year to 11.9% at the first-quarter end.
CNO Financial’s Share Repurchase & Dividend Update
CNO Financial rewarded its shareholders with $99.9 million in the form of share buybacks and $16.9 million in dividends during the first quarter.
As of March 31, 2025, the company had a leftover repurchase capacity of $640.4 million.
CNO’s 2025 Guidance Reaffirmed
CNO Financial anticipates operating EPS to be in the range of $3.70-$3.90.
For 2025, management estimates excess cash flow in the band of $200-$250 million to the holding company.
The company projects the expense ratio to be in the band of 19-19.4% for 2025. It estimates the effective tax rate to be around 23%. Management aims to achieve leverage within the band of 25-28%.
CNO’s Zacks Rank & Key Picks
CNO currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Finance space are Root Inc. (ROOT - Free Report) , EverQuote Inc. (EVER - Free Report) and Heritage Insurance Holdings Inc. (HRTG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Root’s current-year earnings of 18 cents per share has witnessed one upward revision in the past month against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 195.3%. The consensus estimate for current-year revenues is pegged at $1.29 billion, implying 9.2% year-over-year growth.
The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.20 per share. It has remained stable over the past week. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 160.7%. The consensus estimate for current-year revenues is pegged at $626.2 million, suggesting 25.2% year-over-year growth.
The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $2.43 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 328.6%. The consensus estimate for current-year revenues is pegged at $870.2 million, calling for 6.5% year-over-year growth.