Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Q3 2025 Earnings Presentation
43 slides from Cno Financial's earnings presentation, Nov 4, 2025
Slide 1: Third Quarter 2025
Third Quarter 2025 Financial and operating results for the period ended September 30, 2025 November 3, 2025 Unless otherwise specified, comparisons in this presentation are between 3Q24 and 3Q25. 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 Continued strong results across the business; Executed Bermuda reinsurance transaction Operational ▪ Distribution model and product portfolio delivering consistent, repeatable results Highlights ▪ 13th consecutive quarter of strong insurance sales – Total new annualized premiums (N
Slide 5: Growth Scorecard
GROWTH SCORECARD Continued robust growth 2024 2025 Change 3Q 4Q FY 1Q 2Q 3Q vs 3Q24 1 New Annualized Premiums $99.4 $108.6 $415.4 $105.7 $119.9 $125.1 25.9% Consumer 83.5 91.0 353.4 91.3 101.9 106.1 27.1% Worksite 15.9 17.6 62.0 14.4 18.0 19.0 19.5% PRODUCTION Annuity Collected Premiums $465.1 $493.
Slide 6: Consumer Division Update
CONSUMER DIVISION UPDATE 12th consecutive quarter of sustained growth; Most products up double-digits for second consecutive quarter ▪ Life and Health NAP up 27% Operational Highlights ▪ Life NAP up 33% – Record D2C NAP, up 56% ▪ Health NAP up 21% – Medicare Supplement NAP up 33%; Supplemental Healt
Slide 7: Worksite Division Update
WORKSITE DIVISION UPDATE 14th consecutive quarter of NAP growth; Double-digit growth in 12 of last 14 quarters Operational ▪ In October, decided to streamline our Worksite Division by exiting the fee services Highlights business, sharpening our focus on the high-growth core insurance offerings ▪ Rec
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS Delivering sustained, profitable growth; Announced 2nd Bermuda reinsurance transaction Earnings Results Highlights ▪ Operating EPS1 of $1.29, up 16% $2.94 — Net favorable results from annual actuarial review Net operating $2.68 earnings per $2.57 ▪ Operating EPS1 excl. significa
Slide 9: Insurance Product Margin
INSURANCE PRODUCT MARGIN Continued strong underwriting margin Insurance Product Margin Excluding Significant Items1 Highlights 3Q24 4Q24 1Q25 2Q25 3Q25 Annuity margin ▪ Fixed Indexed Annuities (FIA) – growth in the Annuity $54.9 $55.0 $54.5 $54.8 $56.3 block ▪ Other Annuities – favorable prior perio
Slide 10: Investment Results
INVESTMENT RESULTS 8th consecutive quarter of growth in net investment income; Continued strong new money rates Investment Income Investment Income Not Total Net Allocated to Product Lines Allocated to Product Lines Investment Income1 $299.5 $310.5 $300.0 $271.0 $300.0 $300.0 $254.0 $200.0 $200.0 $2
Slide 11: Portfolio Composition
PORTFOLIO COMPOSITION High quality, liquid portfolio producing solid and consistent results $30 Billion of Invested Assets1 Highlights ▪ High degree of liquidity: over 55% of portfolio in HY Corporates, 2.2% corporate and government bonds CMBS, 7.2% Municipals, 10.0% ▪ Strong credit risk profile Mor
Slide 12: Capital and Liquidity Overview
CAPITAL AND LIQUIDITY OVERVIEW Capital and liquidity remain above target levels Consolidated Risk Based Capital (RBC) Ratio1 402% 2 383% 379% 378% 380% ◼ Target consolidated RBC ratio of approximately 375% ◼ RBC variability expected in periods of market volatility 2023 2024 1Q25 2Q25 3Q25 Holding Co
Slide 13: Guidance
GUIDANCE Raising guidance for 2027 operating ROE improvement & 2025 excess cash flow to Holdco Return on Equity ▪ Improve run rate operating ROE by 200 basis points through 2027 ▪ Includes 50 basis points of improvement in 2025 ▪ Off 2024 run rate of 10% 2025 Earnings ▪ $3.75 – $3.85 operating EPS ▪
Slide 14: Why Invest in CNO
WHY INVEST IN CNO 1 Exclusive focus on underserved middle-income market 2 Significant demographic tailwinds 3 Diverse and integrated "last mile" in-person and virtual model 4 Delivering growth while improving ROE 5 Strong balance sheet and robust free cash flow resilient against market events 6 Trac
Slide 15: Questions and Answers
Questions and Answers CNO FINANCIAL GROUP. 15
Slide 16: Appendix 1: Quarter in Review
Appendix 1: Quarter in Review ▪ Cash Flow Profile Slide 17 ▪ Broker-Dealer/Registered Investment Advisor Slide 18 ▪ Expense Ratio Slide 19 ▪ Levers To Drive Operating ROE Slide 20 ▪ Financial Results Seasonality Slide 21 ▪ New Money Summary Slide 22 ▪ Long-Term Care Insurance Slide 23 ▪ Glossary of
Slide 17: Cash Flow Profile
CASH FLOW PROFILE (dollars in millions) 1 Cash flows exclude acquisitions, dividend payments, stock repurchases, and financing transactions 17
Slide 18: Broker-Dealer/Registered Investment Advisor
BROKER-DEALER/REGISTERED INVESTMENT ADVISOR Account values up 28% YoY; Registered agent counts up 6% 2024 2025 4 3Q 4Q 1Q 2Q 3Q Net New Client Assets in Brokerage $ 36.6 $ 60.7 $ 61.3 $ 62.0 $ 74.1 1 Brokerage and Advisory Advisory 91.7 94.2 69.4 140.4 124.2 Total $ 128.3 $ 154.9 $ 130.7 $ 202.4 $ 1
Slide 19: Expense Ratio
EXPENSE RATIO1 2024 2025 3Q 4Q 1Q 2Q 3Q Allocated & Non Allocated Expenses $ 171.5 $ 165.1 $ 181.5 $ 174.7 $ 173.3 Allocated & Non Allocated Expenses - YTD 522.0 687.1 181.5 356.2 529.5 2 Significant Items $ 2.9 $ - $ - $ - $ - 2 Significant Items - YTD 2.9 2.9 - - - Allocated & Non Allocated Expens
Slide 20: Levers to Drive Operating ROE
LEVERS TO DRIVE OPERATING ROE Combination of top and bottom-line actions to improve Operating ROE over the long-term ▪ Accelerating brokerage and advisory growth Products ▪ Product introductions (both insurance and services) ▪ New business terms, processing and underwriting ▪ Optimize agent count an
Slide 21: Financial Results Seasonality
FINANCIAL RESULTS SEASONALITY 1Q 2Q 3Q 4Q Seasonally Medicare Supplement Margin highest claims and surrenders Seasonally Mortality highest mortality Traditionally Traditionally D2C Advertising highest advertising lowest advertising Fee Income* ~1/4 income Near breakeven Near breakeven ~3/4 income Ex
Slide 22: New Money Summary
NEW MONEY SUMMARY 3Q25 General Account New Money Purchases $ % GAAP YTM Alternatives IG Corp AAA-A 155.0 19.1% 6.04% 4.1% CRE Loans 150.5 18.5% 5.59% ABS IG Corp 8.7% Municipals 4.0% Residential Mortgage Loans 144.2 17.8% 6.44% BBB 15.8% Rated Notes 3.7% IG Corp BBB 128.4 15.8% 5.48% RMBS 3.2% ABS 7
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: 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 25: Tax Asset Summary as of September 30, 2025
TAX ASSET SUMMARY AS OF SEPTEMBER 30, 2025 $205 million / $2.10 per diluted share value of remaining NOLs Value of NOLs Details $205 ▪ Remaining non-life NOLs with expiration dates ranging from 2028 through 2035 are expected to be fully utilized and can offset 100% of non- life taxable income and 35
Slide 26: Appendix 2: Financial Exhibits
Appendix 2: Financial Exhibits Non-GAAP Financial Measures Slides 27 - 43 26
Slide 27: 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 28: 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 Actual signifi
Slide 29: 2024 Significant Items
2024 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 2024 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Year ended December 31, 2024 Excluding significant Actual
Slide 30: 4Q24 Significant Items
4Q24 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 4Q24 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Three months ended December 31, 2024 Excluding significant
Slide 31: 3Q24 Significant Items
3Q24 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 3Q24 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. Three months ended September 30, 2024 Excluding significan
Slide 32: Quarterly Earnings
QUARTERLY EARNINGS 3Q24 4Q24 1Q25 2Q25 3Q25 Insurance product margin Annuity $ 91.1 $ 55.0 $ 54.5 $ 54.8 $ 72.9 Health 127.8 130.1 126.2 134.0 157.0 Life 63.3 68.0 68.2 63.6 70.6 Total insurance product margin 282.2 253.1 248.9 252.4 300.5 Allocated expenses (153.0) (146.1) (161.2) (149.4) (151.0) I
Slide 33: 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 34: 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: 3Q24 4Q24 1Q25 2Q25 3Q25 Net income applicable to common stock $ 9.3 $ 182.9 $ 21.5 $ 91.8 $ 23.1 Non-operating
Slide 35: 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: 3Q24 4Q24 1Q25 2Q25 3Q25 Operating income $ 119.2 $ 138.0 $ 81.1 $ 87.5 $ 127.2 Weighted average shares outstandi
Slide 36: 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 37: 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 sales, impairments and the change in allowance for credit losses, net of taxes;
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 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 39: 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 40: 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 41: 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: 1Q23 2Q23 3Q23 4Q23 Consolid
Slide 42: 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 43: 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