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CNO Financial Earnings Soar 47% on Strong Margins
31 Oct
Summary
- Operating EPS surged 47% year-over-year due to favorable insurance margins.
- Medicare Supplement NAP grew 41%, driven by consumer shifts.
- Full-year EPS guidance raised to $5.05-$5.15 range.
- Net investment income increased 13% to $441.5 million.
- Worksite Life and Health NAP rose 18% for eighth quarter of growth.
CNO Financial Group announced a significant third-quarter performance, with operating earnings per diluted share jumping 47% year-over-year. This surge was fueled by robust insurance product margins and strong investment returns, including a 13% increase in net investment income to $441.5 million. The company also raised its full-year operating EPS guidance to a range of $5.05 to $5.15, reflecting its positive outlook.
Key growth areas included a 41% increase in Medicare Supplement New Annual Premium (NAP), attributed to a consumer shift away from Medicare Advantage. The Worksite Life and Health division also demonstrated strong momentum, with an 18% rise in NAP, marking its eighth consecutive quarter of double-digit sales growth.
Management highlighted strategic capital deployment, including a third reinsurance transaction with its Bermuda affiliate to optimize capital efficiency. The company continues to focus on serving middle-income consumers, particularly with the growing demand for Medicare Supplement products amidst disruptions in the Medicare Advantage market.
