Key Points
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CNO Financial’s third-quarter operating EPS rose 47% to $1.90, prompting the company to raise its full-year 2026 operating EPS guidance to $5.05–$5.15.
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Sales momentum remained broad-based, with the company reporting its 17th consecutive quarter of overall sales growth. Medicare Supplement, annuity, brokerage, advisory and worksite businesses all posted notable gains, while producing-agent counts also increased.
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CNO benefited from stronger insurance margins, 13% growth in net investment income and improved expense leverage. It returned $77 million to shareholders, including $60 million in share repurchases, and completed a $270 million life-reserve transfer to its Bermuda reinsurance affiliate.
CNO Financial Group (NYSE:CNO) reported third-quarter operating earnings per diluted share of $1.90, up 47% from the prior-year period, as insurance product margins and investment income increased. The company raised its full-year operating EPS guidance to a range of $5.05 to $5.15, a 9% increase at the midpoint from its previous outlook.
Chief Executive Officer Gary Bhojwani said the insurer recorded its 17th consecutive quarter of sales growth and its 15th consecutive quarter of producing-agent-count growth. Producing agent count increased 4% during the quarter.
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“Our performance remains consistent and repeatable, underpinned by strong execution and our focus on the underserved middle-income market,” Bhojwani said.
Consumer and Worksite Sales Growth
In the consumer division, CNO posted its 16th consecutive quarter of sustained sales growth, with continued strength in health products, annuities, brokerage and advisory services. Total health net annualized premiums, or NAP, rose 7%, marking the company’s 17th straight quarter of growth in the category.
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Medicare Supplement NAP increased 41%, while total Medicare policies sold, including Medicare Advantage policies, rose 20%. Bhojwani said the results reflect a continuing consumer shift from Medicare Advantage toward Medicare Supplement coverage.
He noted that more than 3 million Medicare Advantage members will need to choose new coverage for 2027 as carriers exit plans, reduce benefits or scale back service areas. CNO offers both Medicare Supplement and Medicare Advantage products through its local agent network.
