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CNO Q2 Earnings Beat Estimates on Strong Annuity Collected Premiums
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Key Takeaways
CNO posted Q2 adjusted EPS of 87 cents, topping estimates but down 17% year over year.
Annuity collected premiums surged 19% year over year to $520.5 million in Q2.
Total expenses rose 12.9% on higher insurance policy benefits and operating costs.
Shares of CNO Financial Group, Inc. (CNO - Free Report) have lost 2% since it reported second-quarter 2025 results on July 28. The quarterly results were hurt by a rise in total expenses as a result of higher insurance policy benefits and operating costs. Net investment losses pressured margins. Nevertheless, the downside was partly offset by strong annuity collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues.
CNO reported second-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 2.4%. However, the bottom line tumbled 17% year over year.
Operating revenues of $1.2 billion advanced 8% year over year. The top line outpaced the consensus mark by 19.3%.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
Total insurance policy income inched up 1.5% year over year to $651.3 million but missed the Zacks Consensus Estimate of $653 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $21.8 million, slightly narrower than the prior-year quarter’s loss of $21.9 million. General account assets grew 7.6% year over year to $378.3 million, higher than the consensus mark of $321 million. Policyholder and other special-purpose portfolios of $105.4 million surged 83.6% year over year in the quarter under review. Fee revenues and other income rose 6.4% year over year to $34.9 million.
Annuity collected premiums of $520.5 million improved 19% year over year, while health collected premiums increased 2.3% year over year to $409.5 million. Collected premiums from life products totaled $245.5 million, which inched up 1.3% year over year. The total collected premiums advanced 8.7% year over year to $1.2 billion.
New annualized premiums for health products rose 10.7% year over year, while the same for life products climbed 22.2% year over year. Annuity, Health and Life products accounted for 21.7%, 53.1% and 25.2%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 12.9% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of June 30, 2025)
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $766 million, which plunged 53.8% from the 2024-end level.
Total assets of $37.3 billion dipped 1.4% from the figure at 2024-end.
The debt-to-capital ratio was 34.6% at the second-quarter end, which improved 760 basis points (bps) from the 2024-end figure.
Total shareholders’ equity inched up 0.3% from the 2024-end level to $2.5 billion.
Book value per common share was $25.92, which increased 4.7% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 120 bps year over year to 11.2% at the second-quarter end.
CNO Financial rewarded its shareholders with $100 million in the form of share buybacks and $16.7 million in dividends during the second quarter.
As of June 30, 2025, the company had a leftover repurchase capacity of $540.4 million.
CNO’s 2025 Guidance
CNO Financial continues to anticipate operating EPS in the range of $3.70-$3.90.
For 2025, management still estimates excess cash flow in the band of $200-$250 million to the holding company.
The company currently projects the expense ratio to be in the band of 19-19.2%, narrower than the prior view of 19-19.4%. It still estimates the effective tax rate to be around 23%. Management continues to target achieving leverage within the band of 25-28%.
Of the insurance industry players that have reported second-quarter 2025 results so far, the bottom-line results of AXIS Capital Holdings Limited (AXS - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) beat the respective Zacks Consensus Estimate.
AXIS Capital posted second-quarter 2025 operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 14.2%. The bottom line increased 12.2% year over year. Total operating revenues of $1.6 billion missed the Zacks Consensus Estimate by 3.2%. The top line, however, rose 5.6% year over year. Net premiums written increased 4% to $1.6 billion. Net investment income decreased 2% year over year to $187 million.
AXIS Capital’s underwriting income of $189.2 million increased 17.4% year over year. The combined ratio improved 150 bps to 88.9%. In the Insurance segment, net premiums written increased 8.1% year over year to $1.3 billion. The combined ratio improved 260 bps to 85.3. The Reinsurance segment’s net premiums written decreased 9.1% year over year to $344.9 million. Underwriting income of $37.5 million increased 17.5% year over year.
Arch Capital’s second-quarter 2025 operating income of $2.58 per share beat the Zacks Consensus Estimate by 11.7%. The bottom line increased 0.49% year over year. Gross premiums written improved 15.1% year over year to $6.2 billion. Net premiums written climbed 15% year over year to $4.3 billion on higher premiums written across its Insurance and Reinsurance segments. Pre-tax net investment income increased 11.3% year over year to $405 million.
Operating revenues of $4.8 billion rose 20.9% year over year. It beat the Zacks Consensus Estimate by 2.62%. Arch Capital’s underwriting income increased 7.3% year over year to $818 million. The combined ratio, the percentage of premiums paid out as claims and expenses, deteriorated 250 bps to 81.2. In the Insurance unit, net premiums written climbed 30.7% year over year to $2 billion. Underwriting income of $129 million was 18.3% higher than the year-ago number
Kinsale Capital delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Revenues beat the Zacks Consensus Estimate of $434 million. Gross written premiums of $555.5 million rose 4.9% year over year.
Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Kinsale Capital’s underwriting income was $95.5 million, which grew 25.5% year over year. The combined ratio improved 190 bps to 75.8 in the quarter under review. The expense ratio improved 40 bps to 20.7 in the quarter. The loss ratio improved 150 bps to 55.1.
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CNO Q2 Earnings Beat Estimates on Strong Annuity Collected Premiums
Key Takeaways
Shares of CNO Financial Group, Inc. (CNO - Free Report) have lost 2% since it reported second-quarter 2025 results on July 28. The quarterly results were hurt by a rise in total expenses as a result of higher insurance policy benefits and operating costs. Net investment losses pressured margins. Nevertheless, the downside was partly offset by strong annuity collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues.
CNO reported second-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 2.4%. However, the bottom line tumbled 17% year over year.
Operating revenues of $1.2 billion advanced 8% year over year. The top line outpaced the consensus mark by 19.3%.
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 Q2 Performance
Total insurance policy income inched up 1.5% year over year to $651.3 million but missed the Zacks Consensus Estimate of $653 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $21.8 million, slightly narrower than the prior-year quarter’s loss of $21.9 million. General account assets grew 7.6% year over year to $378.3 million, higher than the consensus mark of $321 million. Policyholder and other special-purpose portfolios of $105.4 million surged 83.6% year over year in the quarter under review. Fee revenues and other income rose 6.4% year over year to $34.9 million.
Annuity collected premiums of $520.5 million improved 19% year over year, while health collected premiums increased 2.3% year over year to $409.5 million. Collected premiums from life products totaled $245.5 million, which inched up 1.3% year over year. The total collected premiums advanced 8.7% year over year to $1.2 billion.
New annualized premiums for health products rose 10.7% year over year, while the same for life products climbed 22.2% year over year. Annuity, Health and Life products accounted for 21.7%, 53.1% and 25.2%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 12.9% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of June 30, 2025)
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $766 million, which plunged 53.8% from the 2024-end level.
Total assets of $37.3 billion dipped 1.4% from the figure at 2024-end.
The debt-to-capital ratio was 34.6% at the second-quarter end, which improved 760 basis points (bps) from the 2024-end figure.
Total shareholders’ equity inched up 0.3% from the 2024-end level to $2.5 billion.
Book value per common share was $25.92, which increased 4.7% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 120 bps year over year to 11.2% at the second-quarter end.
CNO Financial’s Share Repurchase & Dividend Update
CNO Financial rewarded its shareholders with $100 million in the form of share buybacks and $16.7 million in dividends during the second quarter.
As of June 30, 2025, the company had a leftover repurchase capacity of $540.4 million.
CNO’s 2025 Guidance
CNO Financial continues to anticipate operating EPS in the range of $3.70-$3.90.
For 2025, management still estimates excess cash flow in the band of $200-$250 million to the holding company.
The company currently projects the expense ratio to be in the band of 19-19.2%, narrower than the prior view of 19-19.4%. It still estimates the effective tax rate to be around 23%. Management continues to target achieving leverage within the band of 25-28%.
CNO Financial’s Zacks Rank
CNO Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Of the insurance industry players that have reported second-quarter 2025 results so far, the bottom-line results of AXIS Capital Holdings Limited (AXS - Free Report) , Arch Capital Group Ltd. (ACGL - Free Report) and Kinsale Capital Group, Inc. (KNSL - Free Report) beat the respective Zacks Consensus Estimate.
AXIS Capital posted second-quarter 2025 operating income of $3.29 per share, which beat the Zacks Consensus Estimate by 14.2%. The bottom line increased 12.2% year over year. Total operating revenues of $1.6 billion missed the Zacks Consensus Estimate by 3.2%. The top line, however, rose 5.6% year over year. Net premiums written increased 4% to $1.6 billion. Net investment income decreased 2% year over year to $187 million.
AXIS Capital’s underwriting income of $189.2 million increased 17.4% year over year. The combined ratio improved 150 bps to 88.9%. In the Insurance segment, net premiums written increased 8.1% year over year to $1.3 billion. The combined ratio improved 260 bps to 85.3. The Reinsurance segment’s net premiums written decreased 9.1% year over year to $344.9 million. Underwriting income of $37.5 million increased 17.5% year over year.
Arch Capital’s second-quarter 2025 operating income of $2.58 per share beat the Zacks Consensus Estimate by 11.7%. The bottom line increased 0.49% year over year. Gross premiums written improved 15.1% year over year to $6.2 billion. Net premiums written climbed 15% year over year to $4.3 billion on higher premiums written across its Insurance and Reinsurance segments. Pre-tax net investment income increased 11.3% year over year to $405 million.
Operating revenues of $4.8 billion rose 20.9% year over year. It beat the Zacks Consensus Estimate by 2.62%. Arch Capital’s underwriting income increased 7.3% year over year to $818 million. The combined ratio, the percentage of premiums paid out as claims and expenses, deteriorated 250 bps to 81.2. In the Insurance unit, net premiums written climbed 30.7% year over year to $2 billion. Underwriting income of $129 million was 18.3% higher than the year-ago number
Kinsale Capital delivered second-quarter 2025 net operating earnings of $4.78 per share, which outpaced the Zacks Consensus Estimate by 8.4%. The bottom line increased 27.5% year over year. Operating revenues increased 22.2% year over year to $470 million. Revenues beat the Zacks Consensus Estimate of $434 million. Gross written premiums of $555.5 million rose 4.9% year over year.
Net written premiums climbed 6.6% year over year to $458.7 million in the quarter. Net investment income increased 29.6% year over year to $46.5 million in the quarter. Kinsale Capital’s underwriting income was $95.5 million, which grew 25.5% year over year. The combined ratio improved 190 bps to 75.8 in the quarter under review. The expense ratio improved 40 bps to 20.7 in the quarter. The loss ratio improved 150 bps to 55.1.