Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Q2 2026 Earnings Presentation
41 slides from Cno Financial's earnings presentation, Jul 31, 2026
Slide 1: Second Quarter 2026
Second Quarter 2026 Financial and operating results for the period ended June 30, 2026 July 30, 2026 Unless otherwise specified, comparisons in this presentation are between 2Q25 and 2Q26. 1
Slide 2: Important Legal Information
IMPORTANT LEGAL INFORMATION Forward-Looking Statements Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future results of operations and capital plans. We ca
Slide 3: Our Purpose and Mission
OUR PURPOSE We secure the future of middle-income America. OUR MISSION We secure the future of middle-income America by providing insurance and financial services that help protect their health, income and retirement needs, while building enduring value for all our stakeholders. 3
Slide 4: Quarter in Review
QUARTER IN REVIEW Strong execution and momentum continues; Raising operating EPS guidance 16th consecutive quarter of strong insurance sales Operational Highlights – Total new annualized premiums (NAP) up 7% – Sales growth in nearly all product categories – Worksite Division NAP Records – Annuity
Slide 5: Growth Scorecard
GROWTH SCORECARD Sustained and repeatable growth 2025 2026 Change 2Q 3Q 4Q FY 1Q 2Q vs 2Q25 1 $119.9 $125.1 $128.5 $479.2 $117.4 $127.7 6.5% New Annualized Premiums Consumer 101.9 106.1 108.7 408.0 99.8 104.4 2.5% Worksite 18.0 19.0 19.8 71.2 17.6 23.3 29.4% PRODUCTION Annuity Collected Premiums $52
Slide 6: Consumer Division Update
CONSUMER DIVISION UPDATE 15 consecutive quarters of sales growth; Multiple records in asset accumulation products Operational Life and Health NAP up 2% Highlights Health NAP up 17% – Medicare Supplement NAP up 52% – Supplemental Health NAP up 5% – LTC NAP up 4% Record Annuity collected premium
Slide 7: Worksite Division Update
WORKSITE DIVISION UPDATE 17 consecutive quarters of sales growth; 7 consecutive quarters of double-digit growth Operational Record Life and Health NAP, up 29% Highlights – Life NAP up 44% – Hospital Indemnity NAP up 33% – Accident NAP up 31% – Critical Illness NAP up 7% Distribution PAC up 6%; 1
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Operating EPS1 up 45%; Year-to-date up 43% excluding significant items1 Earnings Results $2.31 Highlights Operating EPS1 up 45% $1.66 — Strong sales contributing to growth in insurance Net operating $1.26 $1.61 product margin and NII earnings per share1 $0.87 — Favorable under
Slide 9: Insurance Product Margin
INSURANCE PRODUCT MARGIN Sales momentum and favorable experience driving growth in insurance product margins Insurance Product Margin Excluding Significant Items1 Highlights Annuity margin 2Q25 3Q25 4Q25 1Q26 2Q26 Fixed Indexed Annuities (FIA) – growth in the block Annuity $54.8 $56.3 $56.4 $58.5
Slide 10: Investment Results
INVESTMENT RESULTS 11th consecutive quarter of growth in net investment income1 Investment Income Investment Income Not Total Net Allocated to Product Lines Allocated to Product Lines Investment Income1 $327.5 $302.7 $300.0 $278.1 $300.0 $300.0 $268.9 $200.0 $200.0 $200.0 $100.0 $100.0 $100.0 $49.4
Slide 11: Capital and Liquidity Overview
CAPITAL AND LIQUIDITY OVERVIEW Robust total capital position Consolidated Risk Based Capital (RBC) Ratio1 383% 380% 375% 377% Managing RBC Ratio in the range of 360% – 390% RBC ratio variability expected in periods of market volatility 2024 2025 1Q26 2Q26 Holding Company Liquidity $372 $351 Ta
Slide 12: Guidance
GUIDANCE Raising full-year operating EPS guidance Operating Return on Equity 2026 results expected to exceed 2027 target of 12.0% Expect to establish new long-term operating ROE targets in February 2027, in line with our normal planning cadence 2026 Earnings $4.60 – $4.80 operating EPS 18.8%
Slide 13: Why Invest in CNO
WHY INVEST IN CNO Exclusive middle-market focus and “last-mile” captive distribution 1 create a durable competitive moat 2 Significant demographic tailwinds 3 Sustained growth while improving ROE and modernizing the business Proven investment results built on a foundation of strong asset quality and
Slide 14: Questions and Answers
Questions and Answers CNO FINANCIAL GROUP 14
Slide 15: Appendix 1: Quarter in Review
Appendix 1: Quarter in Review Cash Flow Profile Slide 16 Broker-Dealer/Registered Investment Advisor Slide 17 Expense Ratio Slide 18 Portfolio Composition Slide 19 New Money Summary Slide 20 Private Credit Slide 21 Financial Results Seasonality Slide 22 Long-Term Care Insurance Slide
Slide 16: Cash Flow Profile
CASH FLOW PROFILE For the Quarter Trailing Twelve Months 2Q25 2Q26 2Q25 2Q26 Holding Company Cash Flows: Net Dividends (Contributions) from/to Subsidiaries $ 35.7 $ 20.0 $ 108.2 $ 293.8 Management Fees 31.2 31.3 123.0 125.6 Surplus Debenture Interest 15.7 14.6 80.5 73.6 Earnings on Corporate Investm
Slide 17: Broker-Dealer/Registered Investment Advisor
BROKER-DEALER/REGISTERED INVESTMENT ADVISOR Account values up 24% YoY; Registered agent count up 4% 2025 2026 2Q 3Q 4Q 1Q 2Q Net New Client Assets in Brokerage $ 62.0 $ 74.1 $ 67.6 $ 63.1 $ 75.1 1 Brokerage and Advisory Advisory 140.4 124.2 (90.2) 99.2 120.6 Total $ 202.4 $ 198.3 $ (22.6) $ 162.3 $
Slide 18: Expense Ratio
EXPENSE RATIO1 2025 2026 2Q 3Q 4Q 1Q 2Q Allocated & Non Allocated Expenses $ 174.7 $ 173.3 $ 169.5 $ 179.3 $ 176.2 Allocated & Non Allocated Expenses - YTD 356.2 529.5 699.0 179.3 355.5 Significant Items 2 $ - $ - $ - $ - $ - 2 Significant Items - YTD - - - - - Allocated & Non Allocated Expenses Exc
Slide 19: Portfolio Composition
PORTFOLIO COMPOSITION High-quality, liquid portfolio producing solid and consistent results $32 Billion of Invested Assets1 Highlights High degree of liquidity: over 55% of portfolio in corporate and government bonds HY Corporates, 2.2% CMBS, 6.9% Municipals, 9.2% Strong credit risk profile ABS,
Slide 20: New Money Summary
NEW MONEY SUMMARY 2Q26 General Account New Money Purchases $ % GAAP YTM IG Corp BBB 369.8 33.7% 6.07% Municipals 6.7% IG Corp AAA-A 180.1 16.4% 6.04% Residential ABS 173.8 15.9% 5.85% Mortgage CRE Loans 4.9% Loans 9.1% Residential Mortgage Loa 99.1 9.1% 6.15% Rated Notes 3.7% ABS Municipals 73.5 6.7
Slide 21: Private Credit
PRIVATE CREDIT $1.9B of exposure diversified across asset managers, structures, vintages; 2,000+ underlying credits By Asset Class By Rating1 Direct NR Lending 19% Portfolio AA 26% Finance 9% 17% BB 5% BBB Opportunistic 3% 31% B 2% Infrastructure 2% Asset AAA 1% Based A Finance 33% 52% By Structure
Slide 22: Financial Results Seasonality
FINANCIAL RESULTS SEASONALITY 1Q 2Q 3Q 4Q Seasonally highest Medicare Supplement Margin claims and surrenders Seasonally highest Mortality mortality Traditionally highest Traditionally lowest D2C Advertising Quarterly trend similar to 2025 advertising advertising Fee Income ~1/3 income Near breakeve
Slide 23: Long-Term Care Insurance
LONG-TERM CARE INSURANCE Highly differentiated; prudently-managed in-force block New sales focused on short duration products Recent growth due to strong sales in LTC Fundamental product 99% of new sales for policies with 2 years or less in benefits Average benefit period of 13 months for poli
Slide 24: Tax Asset Summary as of June 30, 2026
TAX ASSET SUMMARY AS OF JUNE 30, 2026 $189 million / $2.00 per diluted share value of remaining NOLs Value of NOLs Details $189 Remaining NOLs are expected to be fully utilized and can generally offset 80% of non- life taxable income and 35% of life taxable income Total estimated economic value
Slide 25: Glossary of Terms and Definitions
GLOSSARY OF TERMS AND DEFINITIONS New Annualized Premiums - Measured as 100% of new life and health annualized premiums, except for single premium whole life deposits, which are measured at 10% of annualized premium. Fee Revenue - Represents fee revenue from the sales of third-party insurance produc
Slide 26: Appendix 2: Financial Exhibits
Appendix 2: Financial Exhibits Non-GAAP Financial Measures Slides 27 - 41 26
Slide 27: 2025 Significant Items
2025 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 2025 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Year ended December 31, 2025 Excluding Significant signifi
Slide 28: 3Q25 Significant Items
3Q25 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 3Q25 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Three months ended September 30, 2025 Excluding Significan
Slide 29: 1Q25 Significant Items
1Q25 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 1Q25 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Three months ended March 31, 2025 Excluding Significant si
Slide 30: Quarterly Earnings
QUARTERLY EARNINGS 2Q25 3Q25 4Q25 1Q26 2Q26 Insurance product margin Annuity $ 54.8 $ 72.9 $ 56.4 $ 58.5 $ 60.6 Health 134.0 157.0 139.4 132.6 147.2 Life 63.6 70.6 70.0 65.8 71.2 Total insurance product margin 252.4 300.5 265.8 256.9 279.0 Allocated expenses (149.4) (151.0) (149.7) (159.9) (152.9) I
Slide 31: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes am
Slide 32: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES A reconciliation of net income applicable to common stock to net operating income (and related per-share amounts) is as follows: 2Q25 3Q25 4Q25 1Q26 2Q26 Net income applicable to common stock $ 91.8 $ 23.1 $ 92.9 $ 37.7 $ 125.9 Non-operating
Slide 33: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES A reconciliation of operating income and shares used to calculate basic and diluted operating earnings per share is as follows: 2Q25 3Q25 4Q25 1Q26 2Q26 Net operating income $ 87.5 $ 127.2 $ 143.4 $ 101.3 $ 119.5 Weighted average shares outs
Slide 34: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES Book value per diluted share Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock and performance units were vested, and convertible securities were conve
Slide 35: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES Operating return measures Management believes that an analysis of net income applicable to common stock before: (i) net realized investment gains or losses from disposals, impairments and the change in allowance for credit losses, net of tax
Slide 36: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES The calculations of: (i) Operating return on equity as adjusted to exclude accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) Operating return, excluding significant items,
Slide 37: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income (loss): Net operating Net operating income, income, excluding excluding significant Net inco
Slide 38: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) operating return, excluding significant item, on equity, e
Slide 39: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES 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: 1Q24 2Q24 3Q24 4Q24 Consolid
Slide 40: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES 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: Trailing Four Quarter Averag
Slide 41: Information Related to Certain Non-GAAP Financial Measures
INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES Debt to capital ratio, excluding accumulated other comprehensive income (loss) The debt to capital ratio, excluding accumulated other comprehensive income (loss), differs from the debt to capital ratio because accumulated other comprehensive