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CNO Beats Q4 Earnings Estimates on Higher Collected Premiums
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Key Takeaways
CNO delivered Q4 EPS of $1.47, beating estimates by 22.5% as earnings rose from the prior year.
CNO's operating revenues grew 2.6% year over year, driven by higher collected premiums and fee income.
CNO faced margin pressure as total benefits and expenses jumped 19.3% on higher policy benefits and costs.
CNO Financial Group, Inc. (CNO - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.47, which beat the Zacks Consensus Estimate by 22.5%. The bottom line rose from $1.31 a year ago.
Operating revenues of $1.2 billion advanced 2.6% year over year. The top line surpassed the consensus mark by 17.7%.
The strong quarterly results were supported by strong collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues. Nevertheless, the upside was partly offset by a rise in total benefits and expenses as a result of higher insurance policy benefits, and other operating costs and expenses.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
Total insurance policy income rose 2.9% year over year to $662.2 million and beat the Zacks Consensus Estimate of $655.4 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $25.2 million, narrower than the prior-year quarter’s loss of $35.1 million. General account assets grew 1.7% year over year to $406.1 million. Policyholder and other special-purpose portfolios of $22.4 million advanced 31% year over year in the quarter under review.
Fee revenues and other income rose 0.3% year over year to $78.9 million.
Annuity collected premiums of $508.3 million, improved 3.1% year over year, while health collected premiums increased 3.8% to $435.7 million. Collected premiums from life products totaled $247.6 million, which rose 3.3% year over year. The total collected premiums advanced 3.4% year over year to $1.2 billion.
New annualized premiums for health products rose 30.7% year over year, while the same for life products climbed 0.9%. Annuity, Health and Life products accounted for 21.2%, 52.4% and 26.4%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 19.3% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of Dec. 31, 2025)
CNO Financial exited the fourth quarter with unrestricted cash and cash equivalents of $956.1 million, which plunged 42.3% from the 2024-end level.
Total assets of $38.8 billion rose 2.5% from the figure at 2024-end.
The debt-to-capital was 33.6% at the fourth-quarter end, which improved 860 basis points (bps) from the 2024-end figure.
Total shareholders’ equity grew 4.9% from the 2024-end level to $2.6 billion.
Book value per common share was $27.92, which increased 12.8% from the figure at 2024-end.
Operating return on equity, excluding significant items, remained in line year over year at 11.4% at the fourth-quarter end.
CNO Financial rewarded its shareholders with $60 million in the form of share buybacks and $16.2 million in dividends during the fourth quarter.
As of Dec. 31, 2025, the company had a leftover repurchase capacity of $420.4 million.
CNO’s 2026 Guidance
CNO Financial anticipates operating EPS to be in the range of $4.25-$4.45, the mid-point of which indicates a 1.1% decline from the 2025 reported figure of $4.40.
For 2026, management estimates excess cash flow of $200-$250 million to the holding company.
The company projects the expense ratio to be in the band of 18.8-19.2% for 2026. It estimates the effective tax rate to be around 22.5%. Management aims to achieve leverage within the band of 25-28%.
The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s current-year earnings of $3.80 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. Skyward Specialty Insurance Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.6%. The consensus estimate for current-year revenues is pegged at $1.4 billion, calling for 22.7% year-over-year growth.
The Zacks Consensus Estimate for Hagerty’s current-year earnings of 37 cents per share has remained stable over the past 60 days against none in the opposite direction. Hagerty beat earnings estimates in each of the trailing four quarters, with the average surprise being 115.7%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 16.3% year-over-year growth.
The Zacks Consensus Estimate for Trupanion’s current-year earnings is pegged at 48 cents per share, implying 308.7% year-over-year growth. In the past 60 days, Trupanion has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $1.4 billion, calling for 11.9% year-over-year growth.
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CNO Beats Q4 Earnings Estimates on Higher Collected Premiums
Key Takeaways
CNO Financial Group, Inc. (CNO - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.47, which beat the Zacks Consensus Estimate by 22.5%. The bottom line rose from $1.31 a year ago.
Operating revenues of $1.2 billion advanced 2.6% year over year. The top line surpassed the consensus mark by 17.7%.
The strong quarterly results were supported by strong collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues. Nevertheless, the upside was partly offset by a rise in total benefits and expenses as a result of higher insurance policy benefits, and other operating costs and expenses.
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 Q4 Performance
Total insurance policy income rose 2.9% year over year to $662.2 million and beat the Zacks Consensus Estimate of $655.4 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $25.2 million, narrower than the prior-year quarter’s loss of $35.1 million. General account assets grew 1.7% year over year to $406.1 million. Policyholder and other special-purpose portfolios of $22.4 million advanced 31% year over year in the quarter under review.
Fee revenues and other income rose 0.3% year over year to $78.9 million.
Annuity collected premiums of $508.3 million, improved 3.1% year over year, while health collected premiums increased 3.8% to $435.7 million. Collected premiums from life products totaled $247.6 million, which rose 3.3% year over year. The total collected premiums advanced 3.4% year over year to $1.2 billion.
New annualized premiums for health products rose 30.7% year over year, while the same for life products climbed 0.9%. Annuity, Health and Life products accounted for 21.2%, 52.4% and 26.4%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 19.3% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of Dec. 31, 2025)
CNO Financial exited the fourth quarter with unrestricted cash and cash equivalents of $956.1 million, which plunged 42.3% from the 2024-end level.
Total assets of $38.8 billion rose 2.5% from the figure at 2024-end.
The debt-to-capital was 33.6% at the fourth-quarter end, which improved 860 basis points (bps) from the 2024-end figure.
Total shareholders’ equity grew 4.9% from the 2024-end level to $2.6 billion.
Book value per common share was $27.92, which increased 12.8% from the figure at 2024-end.
Operating return on equity, excluding significant items, remained in line year over year at 11.4% at the fourth-quarter end.
CNO Financial’s Share Repurchase & Dividend Update
CNO Financial rewarded its shareholders with $60 million in the form of share buybacks and $16.2 million in dividends during the fourth quarter.
As of Dec. 31, 2025, the company had a leftover repurchase capacity of $420.4 million.
CNO’s 2026 Guidance
CNO Financial anticipates operating EPS to be in the range of $4.25-$4.45, the mid-point of which indicates a 1.1% decline from the 2025 reported figure of $4.40.
For 2026, management estimates excess cash flow of $200-$250 million to the holding company.
The company projects the expense ratio to be in the band of 18.8-19.2% for 2026. It estimates the effective tax rate to be around 22.5%. Management aims to achieve leverage within the band of 25-28%.
CNO’s Zacks Rank & Key Picks
CNO currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader finance space are Skyward Specialty Insurance Group, Inc. (SKWD - Free Report) , Hagerty, Inc. (HGTY - Free Report) and Trupanion, Inc. (TRUP - Free Report) . While SKWD sports a Zacks Rank #1 (Strong Buy) at present, HGTY and TRUP carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s current-year earnings of $3.80 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. Skyward Specialty Insurance Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.6%. The consensus estimate for current-year revenues is pegged at $1.4 billion, calling for 22.7% year-over-year growth.
The Zacks Consensus Estimate for Hagerty’s current-year earnings of 37 cents per share has remained stable over the past 60 days against none in the opposite direction. Hagerty beat earnings estimates in each of the trailing four quarters, with the average surprise being 115.7%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 16.3% year-over-year growth.
The Zacks Consensus Estimate for Trupanion’s current-year earnings is pegged at 48 cents per share, implying 308.7% year-over-year growth. In the past 60 days, Trupanion has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $1.4 billion, calling for 11.9% year-over-year growth.