CNO Financial Group reported higher third-quarter earnings and raised its full-year 2026 operating earnings-per-share guidance, lifting the midpoint by 9% from its prior outlook. The insurer also completed a reinsurance transaction involving Colonial Penn life policies and a wholly owned Bermuda affiliate.
Key details
- Third-quarter earnings: Net income was $161 million, or $1.71 per diluted share. Net operating income was $179 million, or $1.90 per diluted share.
- Actuarial review effect: Items related to CNO’s annual actuarial review had a net favorable impact of $44.9 million on both net income and operating income.
- Operating earnings growth: Operating EPS rose 47% from a year earlier in the quarter and 43% year to date. CNO did not provide the revised guidance range in the results highlights.
- Returns and book value: Return on equity was 16.4%; operating return on equity, excluding significant items, was 14.1%. Book value was $25.34 per share. Book value per diluted share excluding accumulated other comprehensive loss was $41.29, up 8%.
- Sales and distribution: New annualized premiums increased for the 17th consecutive quarter, with continued growth in asset accumulation products. Agent counts grew for the 15th consecutive quarter in Consumer and the 17th in Worksite.
- Reinsurance transaction: Effective October 1, CNO’s Bermuda affiliate assumed about $270 million of statutory reserves for in-force graded-benefit life policies from Colonial Penn. It was the third such transaction with the affiliate.
The results show continued growth in operating earnings and premiums, while the favorable actuarial-review items contributed to reported income. The reinsurance transaction shifts a portion of Colonial Penn’s policy reserves to CNO’s Bermuda affiliate; the results highlights do not specify its financial impact.