Solid start to 2025; Continuing track record of growth and improved profitability
CNO Financial Group, Inc. (NYSE: CNO) today reported net income of $13.7 million, or $0.13 per diluted share, in 1Q25 compared to $112.3 million or $1.01 per diluted share, in 1Q24. Non-economic accounting impacts due to market volatility reduced net income in 1Q25 and increased it in 1Q24. Net operating income,(1) which excludes these non-economic accounting impacts, was $81.1 million, or $0.79 per diluted share, in 1Q25 compared to $57.5 million, or $0.52 per diluted share, in 1Q24. Significant items(6) positively impacted both net income and net operating income(1) by $5.3 million, or $0.05 per diluted share, in 1Q25.
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“Our first quarter results enable us to reaffirm our full-year 2025 and three-year return on equity guidance,” said Gary C. Bhojwani, chief executive officer. “CNO is off to a solid start to the year, building on our strong 2024 performance. Operating earnings per share excluding significant items were up 42% for the quarter, reinforcing our commitment to grow earnings while improving profitability.”
“Most importantly, the core areas of our business continue to perform well, including production, agent force metrics, policyholder persistency, underwriting margin, capital management, and overall investment management. While visibility into macroeconomic drivers–such as interest rates–is deteriorating, our track record demonstrates the resilience of our differentiated business model and our ability to navigate volatility. Demographic tailwinds are in our favor. We remain confident in our capabilities to deliver growth and improve profitability.”
FirstQuarter 2025 Highlights (as compared to the corresponding period in the prior year unless otherwise stated)
— Reaffirm full-year 2025 and three-year return on equity (“ROE”) guidance
— Annuity collected premiums up 12%; Client assets in brokerage and advisory up 16%
— Consumer Division Health new annualized premiums (“NAP”)(4) up 9%; Medicare Supplement NAP up 24%
— Worksite Division NAP up 11%; Producing agent count up 8%
— Returned $116.8 million to shareholders
— Book value per share was $25.33; Book value per diluted share, excluding accumulated other comprehensive loss,(2) was $37.03, up 6%
— ROE of 12.1%; Operating ROE(5) of 12.6%
FINANCIAL SUMMARY Quarter End (Amounts in millions, except per share data) (Unaudited)
Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO's management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items as defined in note (1). Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.
Per diluted share Quarter ended Quarter ended March 31, March 31, 2025 2024 % 2025 2024 % change changeIncome from insurance products (b) 0.85 $ 0.61 39 $ 87.7 $ 68.0 29Fee income (0.01) 0.10 (110) (0.8) 11.3 (107)Investment income not allocated to product lines (c) 0.37 0.11 236 38.0 12.3 209Expenses not allocated to product lines (0.20) (0.15) 33 (20.3) (16.8) 21Operating earnings before taxes 1.01 0.67 104.6 74.8Income tax expense on operating income (0.23) (0.15) 53 (23.5) (17.3) 36Net operating income (1) 0.79 0.52 52 81.1 57.5 41Net realized investment losses from sales, (0.13) (0.04) (13.2) (4.6)impairments and change in allowance for creditlossesNet change in market value of investments 0.06 0.11 6.4 12.4recognized in earningsChanges in fair value of embedded derivative (0.77) 0.57 (79.7) 64.0liabilities and market risk benefitsOther – – (0.4) (0.4)Non-operating income (loss) before taxes (0.84) 0.64 (86.9) 71.4Income tax benefit (expense) on non-operating 0.19 (0.15) 19.5 (16.6)incomeNet non-operating income (loss) (0.65) 0.49 (67.4) 54.8Net income $ 0.13 $ 1.01 $ 13.7 $ 112.3Weighted average diluted shares outstanding 103.1 110.8
(a) GAAP is defined as accounting principles generally accepted in the United States of America.(b) Income from insurance products is the sum of the insurance margins of the annuity, health and life product lines, less expenses allocated to the insurance product lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Insurance margin is management's measure of the profitability of its annuity, health and life segments' performance and consists of insurance policy income plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs.(c) Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing arrangements; (iv) expenses related to the funding agreement-backed notes (“FABN”) program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our federal home loan bank (“FHLB”) investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from company-owned life insurance (“COLI”) and alternative investments income not allocated to product lines), net of interest expense on corporate debt and financing arrangements.
FINANCIAL SUMMARY (continued) Management vs. GAAP Measures (Dollars in millions, except per share data) (Unaudited)
Shareholders' equity, excluding accumulated other comprehensive income (loss), and book value per share, excluding accumulated other comprehensive income (loss), are non-GAAP measures that are utilized by management to view the business without the effect of accumulated other comprehensive income (loss) which is primarily attributable to fluctuations in interest rates associated with fixed maturities, available for sale. Management views the business in this manner because the Company has the ability and generally, the intent, to hold investments to maturity and meaningful trends can be more easily identified without the fluctuations. In addition, shareholders' equity excludes net operating loss carryforwards in our non-GAAP return on equity measures as such assets are not discounted and, accordingly, will not provide a return to shareholders until after it is realized as a reduction to taxes that would otherwise be paid. Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns.
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Quarter ended March 31, 2025 2024Trailing four quarters:Net Income $ 305.4 $ 389.6Net operating income (a non-GAAP financial measure) 452.9 355.0Net operating income, excluding significant items 428.8 311.7Average of each of the trailing four quarters average:Shareholders' equity $ 2,516.0 $ 2,075.3Accumulated other comprehensive loss 1,327.9 1,709.8Shareholders' equity, excluding accumulated other comprehensive loss 3,843.9 3,785.1Net operating loss carryforwards (237.6) (135.1)Shareholders' equity, excluding accumulated other comprehensive loss and net operating loss $ 3,606.3 $ 3,650.0carryforwardsRatios:Return on equity 12.1% 18.8%Operating return on equity (a non-GAAP financial measure) (5) 12.6% 9.7%Operating return on equity, excluding significant items (a non-GAAP financial measure) (5) 11.9% 8.5%Shareholders' equity $ 2,530.5 $ 2,367.7Accumulated other comprehensive loss 1,239.1 1,480.3Shareholders' equity, excluding accumulated other comprehensive loss 3,769.6 3,848.0Basic shares outstanding 99,893,923 108,568,594Diluted shares outstanding 101,796,131 110,036,495Book value per share $ 25.33 $ 21.81Book value per diluted share $ 24.86 $ 21.52Accumulated other comprehensive loss per diluted share 12.17 13.45Book value per diluted share, excluding accumulated other comprehensive loss (a non-GAAP financial $ 37.03 $ 34.97measure) (2)
Non-Operating Items Net investment losses in 1Q25 were $13.2 million, including the unfavorable change in the allowance for credit losses of $9.6 million. Net investment losses in 1Q24 were $(4.6) million, including the favorable change in the allowance for credit losses of $1.5 million.
During 1Q25 and 1Q24, we recognized an increase in earnings of $6.4 million and $12.4 million, respectively, due to the net change in market value of investments.
During 1Q25 and 1Q24, we recognized an increase (decrease) in earnings of $(79.7) million and $64.0 million, respectively, resulting from changes in the estimated fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities. Such amounts include the impacts of changes in market interest rates and equity impacts used to determine the estimated fair values of the embedded derivatives and market risk benefits.
INVESTMENT PORTFOLIO (Dollars in millions)
Fixed maturities, available for sale, at amortized cost by asset class as of March31, 2025 are as follows:
Investment Below Total grade investment gradeCorporate securities 13,299.1 $ 642.9 $ 13,942.0Certificates of deposit 470.0 – 470.0United States Treasury securities and obligations of the United States government and 216.3 – 216.3agenciesStates and political subdivisions 3,274.1 23.5 3,297.6Foreign governments 109.0 – 109.0Asset-backed securities 1,524.5 101.2 1,625.7Agency residential mortgage-backed securities 812.1 – 812.1Non-agency residential mortgage-backed securities 1,296.6 368.4 (a) 1,665.0Collateralized loan obligations 1,009.2 – 1,009.2Commercial mortgage-backed securities 2,230.0 94.2 2,324.2Total $ 24,240.9 $ 1,230.2 $ 25,471.1
(a) Certain structured securities rated below investment grade by Nationally Recognized Statistical Rating Organizations may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the National Association of Insurance Commissioners (NAIC).
The fair value of CNO's available for sale fixed maturity portfolio was $23.3 billion compared with an amortized cost of $25.5 billion. Net unrealized losses were comprised of gross unrealized gains of $164.5 million and gross unrealized losses of $2.3 billion. The allowance for credit losses was $38.9 million at March31, 2025.
Statutory (based on non-GAAP measures) and GAAP Capital Information The consolidated statutory risk-based capital ratio of our U.S. based insurance subsidiaries was estimated at 379% at March31, 2025, reflecting estimated 1Q25 statutory operating earnings of $13.5 million and the payment of insurance company dividends (net of capital contributions) to the holding company of $8.9 million during 1Q25.
During 1Q25, we repurchased $99.9 million of common stock under our securities repurchase program (including $1.9 million of repurchases settled in 2Q25). We repurchased 2.5 million common shares at an average cost of $40.24 per share. As of March31, 2025, we had 99.9million shares outstanding and had authority to repurchase up to an additional $640.4million of our common stock. During 1Q25, dividends paid on common stock totaled $16.9 million.
Unrestricted cash and investments held by our holding company were $250.3 million at March31, 2025 compared to $372.5 million at December31, 2024. In addition, the holding company has invested $500.0 million of the proceeds from the previously announced May 2024 issuance of $700.0 million of 6.450% senior notes due 2034 (the “2034 Notes”) primarily into certificates of deposit, which are expected to be used for the repayment of $500.0 million of 5.250% senior notes due May 2025 (the “2025 Notes”).
Book value per common share was $25.33 at March31, 2025 compared to $24.59 at December31, 2024. Book value per diluted share, excluding accumulated other comprehensive income (loss) (2), was $37.03 at March31, 2025 compared to $37.19 at December31, 2024.
The debt-to-capital ratio was 42.0% and 42.3% at March31, 2025 and December31, 2024, respectively. Our debt-to-total capital ratio, excluding accumulated other comprehensive income (loss)(3), was 32.7% and 32.1% at March31, 2025 and December31, 2024, respectively.Such ratios reflect the issuance of the 2034 Notes in May 2024. At March31, 2025, adjusting for the expected repayment of the 2025 Notes, the debt-to-total capital ratio would have been34.5% and the debt-to-total capital ratio, excluding accumulated other comprehensive income (loss), would have been 26.1%.
Return on equity for the trailing four quarters ended March31, 2025 and 2024 was 12.1% and 18.8%, respectively. Operating return on equity, excluding significant items(5), for the trailing four quarters ended March31, 2025 and 2024 was 11.9% and 8.5%, respectively.
In this news release, CNO includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing a broader perspective. CNO's definitions of non-GAAP measures may differ from other companies' definitions. More detailed information including various GAAP and non-GAAP measurements are located at CNOinc.com in the Investors section under SEC Filings.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to CNO's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the year ended December31, 2024 and any subsequent Form 10-Q or Form 10-K on file with the Securities and Exchange Commission and on the Company's website at CNOinc.com in the Investors section. CNO specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
The Company will host a conference call to discuss results on April29, 2025 at 11:00 a.m. Eastern Time. During the call, we will be referring to a presentation that will be available at the Investors section of the company's website.
To participate by dial-in, please register at https://www.netroadshow.com/events/login?show=61afe4fc&confId=79513. Upon registering, you will be provided with call details and a registrant ID used to track attendance on the conference call. Reminders will also be sent to registered participants via email.
For those investors who prefer to listen to the call online, we will be broadcasting the call live via webcast. The event can be accessed through the Investors section of the company's website: ir.CNOinc.com. Participants should go to the website at least 15 minutes before the event to register and download any necessary audio software.
ABOUT CNO FINANCIAL GROUP
CNO Financial Group, Inc. (NYSE: CNO) secures the future of middle-income America. CNO provides life and health insurance, annuities, financial services, and workforce benefits solutions through our family of brands, including Bankers Life, Colonial Penn, Optavise and Washington National. Our customers work hard to save for the future, and we help protect their health, income, and retirement needs with3.2 million policies and $37.4 billion in total assets. Our 3,400 associates, 4,800 exclusive agents and more than 5,500 independent partner agents guide individuals, families, and businesses through a lifetime of financial decisions. For more information, visit CNOinc.com.
CNO FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENT OF OPERATIONS(Dollars in millions, except per share data)(unaudited) Three months ended March 31, 2025 2024Revenues:Insurance policy income $ 650.7 $ 628.4Net investment income: General account assets 375.1 301.9 Policyholder and other special-purpose portfolios (63.6) 167.3Investment gains (losses): Realized investment losses (3.8) (10.0) Other investment gains (losses) (3.0) 17.8Total investment gains (losses) (6.8) 7.8Fee revenue and other income 48.7 51.1Total revenues 1,004.1 1,156.5Benefits and expenses:Insurance policy benefits 580.1 636.6Liability for future policy benefits remeasurement (gain) loss (12.2) (6.4)Change in fair value of market risk benefits 15.3 (18.9)Interest expense 62.0 60.2Amortization of deferred acquisition costs and present value of future profits 67.4 60.5Loss on extinguishment of borrowings related to variable interest entities (1.5) -Other operating costs and expenses 275.3 278.3Total benefits and expenses 986.4 1,010.3Income before income taxes 17.7 146.2Income tax expense 4.0 33.9Net income $ 13.7 $ 112.3Earnings per common share:Basic:Weighted average shares outstanding 100,743,000 108,964,000Net income $ 0.14 $ 1.03Diluted:Weighted average shares outstanding 103,070,000 110,845,000Net income $ 0.13 $ 1.01
NOTES(1) Management believes that an analysis of net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and the change in allowance for credit losses, net of taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) changes in fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities, net of taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) gains or losses related to material reinsurance transactions, net of taxes; (vi) loss on extinguishment of debt, net of taxes; (vii) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items including earnings attributable to variable interest entities, net of taxes (“net operating income,” a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals. A reconciliation of net operating income to net income applicable to common stock is provided in the table on page 2. Additional information concerning this non-GAAP measure is included in our periodic filings with the Securities and Exchange Commission that are available on CNO's website, CNOinc.com, in the Investors section under SEC Filings.(2) Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.(3) The calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.(4) Measured by new annualized premiums for life and health products, which includes 10% of single premium whole life deposits and 100% of all other premiums (excluding annuities). Sales of third-party products are excluded.(5) Operating return on equity and operating return on equity, excluding significant items are calculated as follows: (i) operating return on equity is equal to the trailing four quarters of net operating income(1) divided by average shareholders' equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards, for the trailing four quarters; and (ii) operating return on equity, excluding significant items is equal to the trailing four quarters of net operating income(1), excluding significant items, divided by average shareholders' equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards, for the trailing four quarters.
The following summarizes: (i) net operating income; (ii) significant items; (iii) net operating income, excluding significant items; and (iv) net income (loss) (dollars in millions):
Net operating Net operating income, income, excluding Net excluding significant income – Net operating Significant significant items – trailing Net trailing income items items (a) four quarters income (loss) four quarters2Q23 $ 62.3 $ – $ 62.3 $ 281.2 $ 73.7 $ 286.83Q23 101.3 (16.9) (b) 84.4 287.7 167.3 278.24Q23 133.9 (26.4) (c) 107.5 312.8 36.3 276.51Q24 57.5 – 57.5 311.7 112.3 389.62Q24 114.6 – 114.6 364.0 116.3 432.23Q24 119.2 (21.9) (d) 97.3 376.9 9.3 274.24Q24 138.0 3.1 (e) 141.1 410.5 166.1 404.01Q25 81.1 (5.3) (f) 75.8 428.8 13.7 305.4
(a) See note (6) for additional information.(b) Comprised of $21.7 million of legal recoveries, net of expenses and increased legal accruals, net of tax expense of $4.8 million.(c) Comprised of $33.9 million of the net favorable impact arising from our comprehensive annual actuarial review, net of tax expense of $7.5 million.(d) Comprised of $31.2 million of the net favorable impact arising from our comprehensive annual actuarial review and $2.9 million of the unfavorable impact related to a fixed asset impairment, net of tax expense of $6.4 million.(e) Comprised of $3.9 million of the unfavorable impact arising from our comprehensive annual actuarial review, net of tax expense of $0.8 million.(f) Comprised of $6.8 million of the favorable impact of an out-of-period adjustment which decreased reserves, net of tax expense of $1.5 million.
A reconciliation of pre-tax operating earnings (a non-GAAP financial measure) to net income is as follows (dollars in millions):
Trailing four quarters 1Q25 1Q24Pre-tax operating earnings (a non-GAAP financial measure) $ 580.6 $ 457.9Income tax expense (127.7) (102.9)Net operating income 452.9 355.0Non-operating items:Net realized investment losses from sales, impairments and change in allowance for credit losses (81.3) (54.6)Net change in market value of investments recognized in earnings 16.8 8.0Changes in fair value of embedded derivative liabilities and market risk benefits (119.0) 99.2Fair value changes related to the agent deferred compensation plan 6.6 (3.5)Other (13.9) (3.0)Non-operating loss before taxes (190.8) 46.1Income tax benefit on non-operating loss 43.3 (11.5)Net non-operating loss (147.5) 34.6Net income $ 305.4 $ 389.6
A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):
1Q23 2Q23 3Q23 4Q23Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) $ 3,543.8 $ 3,603.0 $ 3,744.2 $ 3,712.8Net operating loss carryforwards 152.4 126.3 102.6 79.6Accumulated other comprehensive loss (1,664.4) (1,733.5) (1,956.7) (1,576.8)Common shareholders' equity $ 2,031.8 $ 1,995.8 $ 1,890.1 $ 2,215.6 1Q24 2Q24 3Q24 4Q24Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) $ 3,536.8 $ 3,596.7 $ 3,529.9 $ 3,793.2Net operating loss carryforwards 311.2 296.5 273.9 76.6Accumulated other comprehensive loss (1,480.3) (1,464.3) (1,116.0) (1,371.4)Common shareholders' equity $ 2,367.7 $ 2,428.9 $ 2,687.8 $ 2,498.4 1Q25Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) $ 3,474.3Net operating loss carryforwards 295.3Accumulated other comprehensive loss (1,239.1)Common shareholders' equity $ 2,530.5
A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):
Trailing four quarter average 1Q25 1Q24Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) $ 3,606.3 $ 3,650.0Net operating loss carryforwards 237.6 135.1Accumulated other comprehensive loss (1,327.9) (1,709.8)Common shareholders' equity $ 2,516.0 $ 2,075.3
(6) The tables below summarize the financial impact of significant items on our net operating income for the three months ended March 31, 2025 and the quarters during the year ended December 31, 2024 that had significant items impacting our net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions, except per share data).
Three months ended March 31, 2025 Actual Significant Excluding results items significant itemsInsurance product marginAnnuity margin $ 54.5 $ – $ 54.5Health margin 126.2 – 126.2Life margin 68.2 (6.8) (a) 61.4Total insurance product margin 248.9 (6.8) 242.1Allocated expenses (161.2) – (161.2)Income from insurance products 87.7 (6.8) 80.9Fee income (0.8) – (0.8)Investment income not allocated to product lines 38.0 – 38.0Expenses not allocated to product lines (20.3) – (20.3)Operating earnings before taxes 104.6 (6.8) 97.8Income tax (expense) benefit on operating income (23.5) 1.5 (22.0)Net operating income $ 81.1 $ (5.3) $ 75.8Net operating income per diluted share $ 0.79 $ (0.05) $ 0.74
(a) Comprised of $6.8 million of the favorable impact of an out-of-period adjustment which decreased reserves.
Three months ended December 31, 2024 Actual Significant Excluding results items significant itemsInsurance product marginAnnuity margin $ 55.0 $ – $ 55.0Health margin 130.1 3.9 (a) 134.0Life margin 68.0 – 68.0Total insurance product margin 253.1 3.9 257.0Allocated expenses (146.1) – (146.1)Income from insurance products 107.0 3.9 110.9Fee income 20.6 – 20.6Investment income not allocated to product lines 65.3 – 65.3Expenses not allocated to product lines (19.0) – (19.0)Operating earnings before taxes 173.9 3.9 177.8Income tax (expense) benefit on operating income (35.9) (0.8) (36.7)Net operating income $ 138.0 $ 3.1 $ 141.1Net operating income per diluted share $ 1.31 $ 0.03 $ 1.34
(a) Comprised of $3.9 million of the unfavorable impact arising from our comprehensive annual actuarial review.
Three months ended September 30, 2024 Actual Significant Excluding results items (a) significant itemsInsurance product marginAnnuity margin $ 91.1 $ (36.2) (b) $ 54.9Health margin 127.8 4.3 (b) 132.1Life margin 63.3 0.7 (b) 64.0Total insurance product margin 282.2 (31.2) 251.0Allocated expenses (153.0) – (153.0)Income from insurance products 129.2 (31.2) 98.0Fee income (2.7) – (2.7)Investment income not allocated to product lines 45.5 – 45.5Expenses not allocated to product lines (18.5) 2.9 (c) (15.6)Operating earnings before taxes 153.5 (28.3) 125.2Income tax (expense) benefit on operating income (34.3) 6.4 (27.9)Net operating income $ 119.2 $ (21.9) $ 97.3Net operating income per diluted share $ 1.11 $ (0.19) $ 0.92
(a) Significant items impacting the health margin were revised from $8.2 million reported in September 30, 2024 to $4.3 million.(b) Comprised of $31.2 million of net favorable impact arising from our comprehensive annual actuarial review.(c) Comprised of $2.9 million of the unfavorable impact related to a fixed asset impairment.
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