CNO

Property and casualty insurer The Allstate Corporation ALL appears well positioned for growth, supported by improving underwriting profitability, rising investment income, solid policy growth and increased capital returns. Its shares have gained 23.6% year to date, comfortably outperforming the industry’s 2.4% increase and the S&P 500’s 11.7% rise, signaling investor confidence. Image Source: Zacks Investment Research The rising frequency and severity of natural catastrophes are increasing claims costs but also creating growth opportunities for the property and casualty insurance industry. Greater exposure to weather-related risks is raising awareness among households and businesses, supporting demand for broader and more tailored insurance coverage. For Allstate, this environment can drive premium growth, improve pricing adequacy and encourage product innovation as the company adjusts coverage and rates to better reflect evolving risk. Allstate is growing without sacrificing margins. Policies in force reached roughly 216 million in the second quarter. Auto and homeowners policies continued to increase, while issued applications rose 9.9%. It is steadily scaling its Protection Services business, creating a complementary growth engine beyond traditional insurance. Auto’s first-half underlying combined ratio was 88.5, down from the year-ago level of 89.5, substantially better than the roughly mid-90s level Allstate has historically viewed. Management will likely trade some margin for profitable growth where appropriate. Investment income has become another meaningful earnings engine. Net investment income increased 9.8% in the first quarter and then 33.8% in the second quarter to $1 billion, benefiting from a larger portfolio, higher fixed-income yields and stronger performance-based investment returns. Allstate had about $9.5 billion of deployable holding-company capital following the second quarter and repurchased $1 billion of stock during the quarter, along with paying $280 million in dividends. Over the past decade, ALL repurchased 39% of its outstanding shares. It still has $2.6 billion left under its buyback authorization. The Zacks Consensus Estimate for 2026 adjusted earnings for Allstate is currently pegged at $34.45 per share, which has witnessed 12 upward revisions against no downward movement over the past month. During this time, the consensus mark for 2027 earnings improved 4%. The consensus estimate for 2026 and 2027 revenues suggests 4.4% and 4% year-over-year increases, respectively. It beat earnings estimates in each of the past four quarters, with an average surprise of 45.3%. The Allstate Corporation price-consensus-eps-surprise-chart | The Allstate Corporation Quote ALL is trading comparatively cheap at the moment from a valuation standpoint. Its forward earnings multiple of 8.73X is lower than its five-year median of 10.90X and the industry average of 26.85X. Allstate now has a Value Score of A. Allstate currently sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader insurance space are Horace Mann Educators Corporation HMN, CNO Financial Group, Inc. CNO and Assurant, Inc. AIZ. While Horace Mann Educators also has a Zacks Rank #1, CNO Financial and Assurant are carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Horace Mann Educators’ current-year earnings is pegged at $4.78 per share, which has witnessed two upward revisions over the past 30 days and no movement in the opposite direction. Furthermore, the consensus estimate for HMN’s 2026 revenues indicates a 3.9% year-over-year increase. The consensus mark for CNO Financial’s current-year earnings is pegged at $4.74 per share, which indicates 16.2% year-over-year growth. It has witnessed two upward estimate revisions against none in the opposite direction in the past 30 days. CNO beat earnings estimates in each of the last four quarters, with an average surprise of 23.2%. The Zacks Consensus Estimate for Assurant’s current year earnings is pegged at $22.05 per share, which indicates 11.5% year-over-year growth. It has witnessed five upward estimate revisions against none in the opposite direction in the past month. AIZ beat earnings estimates in each of the last four quarters, with an average surprise of 17.7%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Allstate Corporation (ALL) : Free Stock Analysis Report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Globe Life Inc. GL is benefiting from strong momentum in its health insurance business. Rising healthcare spending, strong Medicare Supplement demand, rate increases and expanding distribution are driving growth and creating a foundation for higher earnings. Health premium revenues increased 16% year over year in the second quarter of 2026. United American's health premiums rose 29%, while Family Heritage's increased 9%. Health insurance accounted for 34% of total premium revenues, up from 31% a year earlier, highlighting its growing contribution to Globe Life's business. Rising healthcare spending could further support demand for supplemental health coverage. The Centers for Medicare & Medicaid Services projects national health expenditures to grow 5.4% annually through 2034. Strong Medicare Supplement sales are supporting Globe Life's health premium growth, while approved rate increases on individual health products are expected to generate approximately $65 million of additional premium. Globe Life's distribution network provides another growth driver. In the second quarter of 2026, Family Heritage's average producing agent count increased 7%, supporting broader customer reach and health sales. However, medical inflation remains a challenge for Accident & Health insurers. Higher medical costs can pressure claims and underwriting margins, although Globe Life's rate increases should help offset some of this pressure. Overall, strong demand, favorable rates and expanding distribution should support Globe Life's health business. The Health Insurance segment is becoming an important contributor to GL's premium growth, underwriting profitability and earnings momentum. Aflac Incorporated's AFL supplemental health business remains a key driver of its growth, with products designed to help customers cover expenses not fully paid by major medical insurance. The company is benefiting from demand for supplemental coverage as healthcare costs rise, while its broad distribution network supports policy sales and premium growth. Net earned premiums increased 2.3% in the second quarter of 2026. CNO Financial Group's CNO health business provides supplemental health and Medicare Supplement products to middle-income Americans. Health collected premiums increased 5.5% year over year to $432 million in the second quarter of 2026. Its health business benefits from demand for products that help customers manage healthcare expenses and financial protection needs. Shares of GL have gained 22.7% in the past year compared with the industry’s growth of 10.9%. Image Source: Zacks Investment Research The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings value multiple of 10.54, lower than the industry average of 13.13X. It has a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Globe Life’s 2026 earnings per share (EPS) indicates a year-over-year increase of 8.2%. The consensus estimate for revenues is pegged at $6.40 billion, implying a year-over-year improvement of 6.3%. The consensus estimate for 2027 EPS and revenues indicates an increase of 5.1% and 6.1%, respectively, from the corresponding 2026 estimates. The Zacks Consensus Estimate for 2026 earnings moved 0.4% north, while 2027 earnings have moved 0.6% south over the last 30 days. Image Source: Zacks Investment Research GL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Globe Life Inc. (GL) : Free Stock Analysis Report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report Aflac Incorporated (AFL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, July 31, 2026 at 11:00 a.m. ET Chief Executive Officer - Gary Chandru Bhojwani Chief Financial Officer - Paul Harrington McDonough Chief Investment Officer - Eric Ronald Johnson Investor Relations - Adam Auvil Operator: Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome you to CNO Financial Group's second quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. [Operator Instructions] I would now like to turn the conference over to Adam Auvil. I would now like to turn the conference over to Adam Auvil. Please go ahead. Adam Auvil: Good morning, and thank you for joining us on CNO Financial second quarter 2026 earnings conference call. Today's presentation will include remarks from Gary Bhojwani, Chief Executive Officer and Paul McDonough, Chief Financial Officer. Following the presentation, we will also have other business leaders available for the question and answer period. During this conference call, we will be referring to information contained in yesterday's press release. You can obtain the release by visiting our website at cnoinc.com. This morning's presentation is also available on the Investors section of our website and was filed in a Form 8-K yesterday. Let me remind you that any forward looking statements we make today are subject to a number of factors, which may cause actual results to be materially different than those contemplated by the forward looking statements. Today's presentation contains a number of non GAAP measures, which should not be considered as substitutes for the most directly comparable GAAP measures. You will find a reconciliation of the non GAAP measures to the corresponding GAAP measures in the appendix. Throughout the presentation, we will be making performance comparisons, and unless otherwise specified, any comparisons made will refer to changes between the second quarter 2026 and the second quarter 2025. And with that, I will turn the call over to Gary. Gary Chandru Bhojwani: Thanks, Adam. Good morning, everyone, and thank you for joining us. CNO delivered a very strong quarter and first half of the year. Operating earnings per diluted share were up 45% in the second quarter and up 43% year to date excluding significant items. We delivered our 16th consecutive quarter of sales growth and our 14th consecutive quarter of producing agent count growth. As a result, we are raising our full year operating earnings per share guidance and either improving or reaffirming all other 2026 guidance. We remain pleased with the consistent results we are generating and we remain focused on growing earnings, improving profitability, and reinvesting in the business. Our business model continues to perform well as we navigate a dynamic macroeconomic environment. Sales results in the quarter were strong across both divisions. Total new annualized premiums were up 7% and we set multiple sales records. Our exclusive middle market focus and our last mile captive agent distribution model are the foundation of our durable, competitive moat. This difficult to replicate model remains a key competitive advantage that drives consistent sales performance and profitable growth. Earnings benefited from strong insurance product margin and investment results reflecting growth in the business and expansion of the portfolio book yield. We maintained a robust capital position while returning $77 million to shareholders. Book value per diluted share excluding AOCI was $39.92 up 5%. Turning to slide 5 and our growth scorecard. Nearly all of our growth scorecard metrics were up for the quarter with strong performance across production, distribution, and investments in capital. Turning to Slide 6 in our Consumer division. We delivered our 15th consecutive quarter of sustained sales growth. Including records in annuities, and brokerage and advisory. Total Health NAP was up 17% marking 16 consecutive quarters of growth. Supplemental health was up 5%, Long term care was up 4%. Our Medicare business continued to perform well. Medicare Supplement NAP was up 52%. Marking the third consecutive quarter of growth over 50%. Our results benefit from the shift in consumer preferences away from Medicare Advantage and towards Medicare supplements. This trend underscores the value of offering Medicare Supplement and Medicare Advantage through our local agent distribution model. Medicare remains a flagship door-opening product for CNO, supporting our ability to expand the total number of households we serve. Total Medicare policies sold were up 12%. The baby boomer generation is moving through its peak retirement years with more than 11 thousand Americans turning 65 each day. Rising retirement health care costs also continue to pressure household finances. In 2026, the amount that a typical retired couple needs to save for health care increased nearly 8%. Compared with annual increases of 2% to 3% in recent years. For these reasons, we expect durable demand for all our health care products. Life NAP was down 9% for the quarter against the strong comparable. Results were primarily driven by lower direct to consumer sales. We take a measured approach to managing our D2C channel. We invest where we see productive opportunities and optimize performance over time. This quarter, nontelevision marketing channels web, digital, and third party partners, generated nearly 72% of all D2C life sales. As consumer media habits evolve, we continue to reduce our reliance on television advertising and shift more towards efficient marketing channels. While this transition may create some quarterly variability, we remain comfortable with the business and its long term prospects. In general, demand for life insurance remains healthy, However, we do not expect sales to go in a straight line. Our broad product portfolio allows us to meet shifting customer needs across protection, health, and retirement income solutions. We set multiple records in our asset accumulation business during the quarter reflecting the demand for retirement income solutions among middle-income consumers. Annuity collected premiums reached a new record of $536 million, up 3%. Account values were up 7%. We also delivered our third consecutive quarter of brokerage and advisory growth. Client assets were up 24% to a new record, and total accounts were up 13%. When combined with our annuity account values, our clients entrust us with more than $19 billion of their assets, up 11%. Strong agent productivity and retention fueled our sales momentum. Producing agent count was up 3% our 14th consecutive quarter of growth. Registered agent count grew 4%. Next, slide 7 and our worksite division performance. We delivered our 17th consecutive quarter of sustained sales growth. Record life and health NAP was up 29% for the quarter. This represents our seventh consecutive quarter of double digit insurance sales growth. Highlights from the quarter include life, up 44%, hospital indemnity, up 33%. Accident, up 31%. And critical illness, up 7%. Our focus on small to midsized businesses and associations drives meaningful sales growth. Employers invest heavily in employee benefits, but the mix is shifting. To control costs, many are reducing traditional Medicare coverage while increasing the availability of employee paid voluntary benefits. Our products are designed to address these protection needs. And our career agents and partners are well positioned to help employees understand and address potential gaps in coverage. NAP from new clients increased 84% This growth is well balanced between geographic expansion and further penetration into existing markets. Life sales continue to experience a significant uptick from these new client relationships. Producing agent count was up 6% our 16th consecutive quarter of growth. Productivity remained robust across all agent cohorts. Importantly, our optimized career agency remains a growth engine for the division generating approximately 90% of our total worksite insurance sales. Given its strong performance and long term potential, we will continue to invest in expanding this channel. Across both divisions, our results highlight the value of a diversified product portfolio built around customer needs rather than individual products. We think about our product diversification in 3 simple ways. First, we serve a broad range of customer needs with health, wealth, and income protection solutions. Second, our products play different roles in the customer life cycle. Medicare products help us initiate new customer relationships while annuities deepen existing relationships and support long term customer value. And third, our product portfolio balances risk across mortality, morbidity, and longevity. This combination is a unique strength in the marketplace. It enables us to build lasting customer relationships while delivering consistent performance over time. And with that, I will turn it over to Paul. Paul Harrington McDonough: Thanks, Gary, and good morning, everyone. Turning to the financial highlights on Slide 8. We delivered a very strong quarter generating operating earnings per share of $1.26 up 45% from the prior year. The quarter reflects continued strong earnings fundamentals, including the compounding of sustained sales momentum contributing to growth in insurance product margin and net investment income. Favorable underwriting across nearly all products, and improvement in net investment income not allocated to products, led by alternative investment returns. Fee income results were generally on plan through the first half of the year and we remain on track to achieve our full year outlook. The expense ratio was 18.4% reflecting another quarter of favorable expense performance. We continue to view this as a timing difference and expect expenses to normalize over the remainder of the year. We maintained our disciplined and balanced approach to capital management, deploying $60 million on share repurchases in the quarter contributing to a 5% reduction in weighted average diluted shares outstanding. On a trailing 12 month basis, operating return on equity was 14.1%, 13.1% excluding significant items. Reflecting steady progress on improving the profitability of the business. Overall, the results demonstrate the strength of our business model and consistent execution over the last several years. Turning to Slide 9. Sales momentum, combined with broadly favorable claims experience, drove growth in insurance product margin across all 3 major product categories. Fixed indexed annuities continue to benefit from growth in the block. Other annuities benefited from favorable reserve releases due to higher mortality on closed block policies. Supplemental health benefited from growth in the block partially offset by a handful of large claims on older policies. We view these claims as isolated events and do not believe they represent the change in the underlying trends. Medicare supplement benefited from growth in the block, favorable morbidity, and rate increases implemented earlier this year. The favorable morbidity resulted in a reserve release from better than expected first quarter claims development which we do not expect to recur. Long term care benefited from growth in the block, and lower morbidity. Life margins reflected growth in the block, and lower mortality across both intrasensitive life and traditional life. Traditional life also benefited from lower nondeferrable advertising expense. Turning to Slide 10. Net investment income remained a meaningful contributor to earnings growth, increasing 8% year-over-year and marking the 11th consecutive quarter of growth in total net investment income. The new money rate was 6.16% in the quarter, representing the fourteenth consecutive quarter above 6%. Investment income allocated to product lines increased 3% supported by growth in average net insurance liabilities which were up 4%. Net investment income not allocated to products improved significantly increasing 46% year over year. The improvement was driven by higher alternative investment income growth in our FHLB and FABN programs, including a $300 million FABN issuance in the second quarter, and a higher level of gains on option forfeitures from annuity surrenders. Turning to slide 11. At quarter end, our consolidated risk based capital ratio was 377% Holding company liquidity was $233 million and debt to capital was 26.1%. All above or within our target levels. The underlying capital generation of the business continues to enable thoughtful reinvestment in the business to support growth and manage risk while also returning capital to shareholders in a disciplined and sustainable manner. Turning to our 2026 guidance on Slide 12. Given our strong first half results, and confidence in the underlying performance of the business, we are increasing our full year operating earnings per share guidance to a range of between $4.60 and $4.80 an 8% increase at the midpoint from our prior 2026 guidance. We are narrowing the expense ratio to a range of 18.8% to 19.0% reducing the upper end by 20 basis points reflecting improved operating leverage from continued strong sales results. As mentioned earlier, we expect expense dollars for the full year to be consistent with our original guidance. Notwithstanding some lower expense in the first half of the year. We are lowering our effective tax rate assumption to approximately 21.5% and we are reaffirming all remaining 2026 guidance metrics. So no change to our target RBC ratio holdco liquidity, or leverage targets. And no change to our full year free cash flow expectations. We are expecting to get closer to target capital levels across our operating subsidiaries including in Bermuda, which will contribute to free cash flow generation in the second half of the year subject to customary regulatory approvals. Turning to return on equity. Our 2026 operating return on equity is expected to exceed the 3-year target of 12% we had previously established for year-end 2027. We have been clear that 12% return on equity was not the destination but rather a waypoint in our journey of continued improvement. Our intention is to improve ROE each year including in 2027 and beyond, as compared to 2026, with the ultimate goal of achieving top quartile ROE relative to our peer group. We expect to establish new ROE targets in February 2027 in line with our normal planning cadence. And with that, I will turn it back to Gary. Gary Chandru Bhojwani: Thanks, Paul. Turning to Slide 13. P and O delivered a very strong quarter and first half of the year. Consistent, repeatable results continue to drive our momentum as we grow earnings improve profitability, and reinvest in the business. Our performance reflects the strength of our diversified business model and the consistent execution of our team. As we enter the second half of the year, we remain confident in our ability to deliver sustainable growth and long term value. Before we open up the line for Q&A, we have 1 calendar announcement. Our next CNO investor briefing is planned for early September. This 1-hour virtual session will feature both our worksite division and a detailed review of our Medicare business. Followed by time for questions with members of our management team. Program registration will start in August, so please ensure that you are signed up to receive our email alerts. Thank you for your support of and interest in CNO Financial Group. We will now open it up for questions. Operator? Operator: Thank you. If you would like to ask a question, please press 1 on your telephone keypad to raise your hand and join the queue. And if you would like to withdraw that question, again, press 1. Your first question comes from Ryan Krueger with KBW. Please go ahead. Ryan Krueger: Hey, thanks. Good morning. My first question was on Long Term Care. The margins there have been quite strong and seemingly keep improving for a number of years. I guess as you study the claim experience, I think in the past, you have just said that, been trending better than you expected. But as you study the underlying drivers, did you I guess, are you getting closer to the point of thinking this could be more of a long term level that is sustainable? Paul Harrington McDonough: Hey, Ryan. it is Paul. it is something that we look at every quarter. it is something that we look at in more detail every year. As you know, we switch to the third quarter for an annual review So we will be looking at, you know, the recent trends as we go through that exercise in the third quarter. We certainly have observed modestly lower claims versus our expectations. On the favorable end of the range of current assumptions. So I do not want to get ahead of the annual exercise, but yeah, we will certainly be reporting that on our third quarter call. Ryan Krueger: Thank you. And then on the worksite business, I guess, on the life sales, can you talk you have had quite a lot of growth in the interest sensitive life sales within WorkSight. Can you give a little bit more color on kind of what you are seeing there and what you think has been leading to that? Gary Chandru Bhojwani: Yeah. Ryan, this is Gary. Thanks for the question. We are obviously very pleased with how the worksite business is growing. As we mentioned, the success we continue to have there is a combination of both geographic expansion as well as penetration in existing areas. What we are seeing and remember, selling life insurance into the worksite space and really emphasizing it, that is been a project going on for the last several years. I think we are seeing a combination of good market demand Excuse me. We are seeing encouragement by employers. And we are seeing, frankly, a maturity of our own Salesforce in understanding and really using these products to their fullest. So I think we are benefiting from a number of different what I would describe as just small tactical things that we have been doing over the years. You know, as we have talked about in many of our calls. there is been no major strategic shift. No major changes to products, nothing like that. it is just the continued blocking and tackling. And, you know, we have frankly, a wonderful team out there that is doing a great job. And we expect it to continue. Ryan Krueger: Thank you. Operator: Your next question comes from the line of Suneet Kamath with Jefferies. Please go ahead. Suneet Kamath: Great. Thanks. Good morning. I wanted to start with MedSup. It looked like the margin had been traveling in the mid-20s on a quarterly basis, and now it is mid-30s. Paul, I think you would mentioned a reserve release there. So I was wondering if you could size that for us and maybe give us a sense of where you think on a go forward basis, this margin should be traveling. Thanks. Paul Harrington McDonough: Sure. Hey, Suneet. Yes. We saw some favorable claims reserve development, and, you know, this is a product where the claims reserves develop quickly. And that was around $4 million. So if you are looking to kind of run-rate, the margin, you should adjust for that. I think with that adjustment, kind of looking at the first half together should give you a decent indication of run rate. Suneet Kamath: Okay. that is helpful. And then I guess Gary, and I know we talked about this last quarter, I can guess what your answer is going be. But if we just look at consumer NAP, it just looks like it is been decelerating. I guess, the past couple of quarters. And as I look out over the next 2, I think the comps get pretty difficult. So just curious if you think you can keep this kind of growth engine going, or could we see a decline at least over the next couple of quarters given the comps? Gary Chandru Bhojwani: Yeah. Suneet, the short answer is, I do not know. But let me give you a few factors to think about. First of all, we have had 16, 17 quarters of consecutive growth. On the 1 hand, life never goes in a straight line, and there is gonna be some point when that streak breaks. I had no idea when that is gonna be. But I would also tell you I would not bet against this team. The field leadership in the consumer division is spectacular. They have been doing a fantastic job We have got a tremendous tailwind in terms of the consumer need. You know, you see still 11 thousand folks retiring every day. Every single 1 of them needs help with Medicare. Every single 1 of them wants to talk about long term care and guaranteed lifetime income with annuities. I do not see any of those trends changing anytime soon. If you ask me, you know, how does our future look over a 3 to 5 year horizon, I would say extremely bright. Can I tell you if Q3 will be above Q2 and by how much? I cannot. But if I look out over the long term, we have favorable demographics. An excellent product portfolio, field leadership that is second to none, and it is growing. Look at our productivity numbers. So I would not bet against these results over the long term. In any given quarter, I have no idea. Suneet Kamath: Yep. Okay. Makes sense. Thanks. Operator: You would like to ask a question, please press 1 on your telephone keypad. Next question comes from the line of Joel Hurwitz with Dowling and Partners. Please go ahead. Joel Hurwitz: First 1, can you just provide an update on capital deployment priorities? And I guess, specifically, how are you thinking about share repurchases at this point with the stock now trading well above book value? Paul Harrington McDonough: Hey, Joel. I will take a first crack, and Gary, you may want to jump in. I would say that the way we think about capital has not changed. You know? So we generate a fair amount of capital to support continued growth. We are reinvesting in the business You know, the biggest example of that is the Tech Mod initiative that we are kind of still in their early innings on, but you know, that is a significant reinvestment in the business to you know, update our core applications and infrastructure and reduce risk and position us for growth? After all that, sort of solving for our target capital levels and holdco liquidity, we generate a fair amount of excess capital. And, you know, we look for inorganic growth opportunities. We are very selective. We have not done much of that. And the rest, we return to shareholders, you know, through the ordinary dividend. On a quarterly basis and through share repurchases. So nothing you have not heard before. Really no change to that. Gary Chandru Bhojwani: Yeah. If I could just add a couple things So first of all, I would emphasize Paul's main point which is we have made no changes to how we think about capital deployment. We see opportunities in the marketplace. We see needs to develop the business for the long term. Think about our Tech Mod initiative that we have talked about. When we see opportunity to lead Bermuda, we will continue to take those. But beyond that, there is really been no change. Final comment I would make, it is absolutely true that when we trade above book value, the accounting treatment of share purchases is not as obviously advantageous as when we are trading below book value. However, I am hopeful that no 1 would be surprised to hear the CEO believe that I still think this company is undervalued even above this level or at this level of what we are trading. I think we have got an incredibly bright future. And we will continue to execute the way we have been executing. So I think there is a lot more upside here. Joel Hurwitz: Got it. that is helpful. Thank you. And then and then, Paul, just wanted to see if you could provide an update on Bermuda and where you stand with potentially moving other blocks like your business or a block of your life business to Bermuda? Paul Harrington McDonough: Sure. So, you know, consistent with our past practice, we are not gonna provide details, and we do not want to get ahead of regulatory approval processes. But there are opportunities for us to seed more of our liabilities and you know, that is something that we are focused on and, you know, we will keep you posted as that evolves. As I mentioned in my prepared remarks, we are looking to get closer to target levels capital across our operating subsidiaries, including in Bermuda, And in the close to 3 years now that we have been operating there, we have built up some excess capital. And so we are looking to solve for that subject, of course, to regulatory approvals A third treaty could be a part of that because, you know, that you know, as you sort of solve for that, you can address some of the excess capital that is been built up. So that is where we are. You know, that is as much as we can tell you at this stage, but stay tuned as that evolves. Joel Hurwitz: Okay. I guess just any color on how much excess capital has been built up in the entity? Paul Harrington McDonough: Okay. I would, you know, I would rather not be specific again just not to get ahead of the process and particularly the regulatory review and approval. But I will say that as you think about free cash flow in the year, you know, that process would, you know, as we had addressed capital that is been built up over you know, a couple of 3 years, you know, that will be sort of a 1 off favorable item in the year. We also have the Tech Mod investment that is consuming capital that is also you know, 1 off in nature. So you net those things together and you know, the free cash flow guidance is pretty close to run rate at, you know, currently. Joel Hurwitz: Okay. Thank you. Yep. Operator: Your next question comes from the line of Wilma Burdis with Raymond James. Please go ahead. Wilma Burdis: Hi. This is Wilma on for Wilma. I was wondering if you could talk about what you are seeing in the market that led to more corporate bonds this quarter? And what are some other asset classes that are currently attracting investment for CNO? We saw that. RMLs have continued to be attractive. Eric Ronald Johnson: I will take that. This is Eric Ronald Johnson. I am the chief investment officer here. So during the quarter, we had a fairly active quarter. In continuing to try to optimize from a return on asset perspective, and that involved a fair amount of activity in corporate bonds. You know, swapping durations as well as some industry sector reallocations. Interestingly enough, we really have not been adding aggressively to our RML portfolio over the period. While they screen pretty well from a return perspective. You know, we feel we have a sufficient allocation there. And in fact, we have been working pretty hard in this interest rate environment to manage lower the convexity profile of our portfolio. So we really have been a little less active than historically it was the case generally in prepayable securities. We have been leaning for the other direction, actually. I think I would not you know, I would say that our allocation to corporates is probably in line with what we think our expectation would be there. In terms of the kind of the ratings breakdown of it. We continue to focus pretty heavily on the single A category as being a little better value for us than the BBB category. So it was a very constructive quarter. We did a lot of good things, put some income on the books. Continued to protect the quality of the portfolio, and, you know, feel good about how the quarter went. Wilma Burdis: Hey, thanks. This is Wilma. Thanks, Wilma. Just jumping in for the follow-up question. Can you talk a little bit about the annuity spread dynamics? Are you seeing relatively stable crediting rates in the market? Has there been any pressure there? Maybe just give us a little bit of color on what you are seeing. Thanks. Paul Harrington McDonough: Wilma. it is Paul. I am not sure I can provide a whole lot beyond, you know, what you would expect, which is we manage our annuities to a target spread You know, we are pretty good at doing that in various interest rate environments. And we continue to, you know, apply that level of discipline in the current environment. Gary Chandru Bhojwani: Yeah. Let me just supplement Paul's comments a little bit. I think it is important to remind everybody of a few key factors that make our annuity book different. And I will not say immune, but I will say less subject to some of the other pressures we are seeing in the marketplace. We have absolutely seen new entrants come in. We have absolutely seen a bit of an arms race. there is no question about that. You have seen that in some of the sales figures. But remember, number 1, we sell our annuities only through captive distribution. And so our people are not regularly spreadsheet-ing our products. And then number 2, and this is a key thing, the products that we sell are to the dedicated to the middle income market. They are fair. They are reasonable. They provide a good value, But when our captive distribution force is in there talking to these customers, they are not competing against everybody and their brother because most folks are not calling on this customer base. As often as anything, our competition is a bank CD. So it is important to remember that we are not immune to these competitive pressures. But we are significantly insulated because of the difference in our distribution model and the focus we have on that middle income market. That does not attract a lot of attention for most big financial players. Wilma Burdis: Thanks for the color, and, congrats on a great quarter. Paul Harrington McDonough: Thanks. Operator: And that concludes our question and answer session. I will now turn it back over to Adam Auvil for closing comments. Adam Auvil: Thank you, operator, and thank you all for participating in today's call. Please reach out to the Investor Relations team if you have any further questions. Have a great rest of the day. Operator: Ladies and gentlemen, this does conclude today's conference call. Thank you for your Before you buy stock in CNO Financial Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CNO Financial Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* Now, it’s worth noting Stock Advisor’s total average return is 953% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CNO Financial (CNO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

CNO Financial Group, Inc. recently reported that for the second quarter of 2026, revenue rose to US$1,285.2 million and net income increased to US$125.9 million, while also completing US$60 million of share repurchases under its long-running buyback program. On the same day, the company lifted its full‑year 2026 operating EPS guidance by 8% at the midpoint, highlighting what management described as strong underlying fundamentals and profitability improvements driven by record annuity and Medicare Supplement sales. With this upgraded earnings outlook now in place, we’ll examine how stronger‑than‑expected operating performance may influence CNO Financial Group’s investment narrative. Find 52 companies with promising cash flow potential yet trading below their fair value. To own CNO Financial Group, you need to believe the company can keep converting its niche in middle‑income and senior markets into steady earnings while managing interest rate and regulatory pressures. The stronger‑than‑expected Q2 2026 results and higher full‑year EPS guidance sharpen the near‑term focus on sustaining annuity and Medicare Supplement momentum, while the biggest current risk remains how future healthcare and Medicare policy changes could affect these core product lines. The most directly relevant update is CNO’s decision to raise its 2026 operating EPS guidance by 8% at the midpoint on the same day it reported Q2 numbers. That guidance increase sits alongside record annuity and Medicare Supplement sales, reinforcing the importance of these businesses as the key earnings driver, but it also heightens the stakes if competitive pressures in annuities or regulatory shifts in senior health products start to bite. Yet investors also need to be aware that if regulatory scrutiny around Medicare products intensifies, then ... Read the full narrative on CNO Financial Group (it's free!) CNO Financial Group's narrative projects $4.4 billion revenue and $483.3 million earnings by 2029. Uncover how CNO Financial Group's forecasts yield a $51.75 fair value, a 7% downside to its current price. One member of the Simply Wall St Community currently pegs CNO’s fair value at US$51.75, giving you just a single retail view to compare. Against the backdrop of raised 2026 EPS guidance, this is a reminder that individual fair value opinions can differ from how the market responds to improving operating performance, so it is worth weighing several viewpoints before forming your own. Explore another fair value estimate on CNO Financial Group - why the stock might be worth 7% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your CNO Financial Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free CNO Financial Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate CNO Financial Group's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: The future of work is here. Discover the 36 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CNO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

CNO Financial Group, Inc. CNO reported second-quarter 2026 adjusted earnings per share (EPS) of $1.26, which beat the Zacks Consensus Estimate by 27.3%. The bottom line rose from 87 cents a year ago. Operating revenues of $1.3 billion advanced 13% year over year. The top line surpassed the consensus mark by 32%. The strong quarterly results were supported by strong collected premiums from annuity, life and health products along with a notable rise in net investment income. Nevertheless, the upside was partly offset by a rise in total benefits and expenses as a result of higher insurance policy benefits. CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote Total insurance policy income rose 4.5% year over year to $680.7 million, higher than the Zacks Consensus Estimate of $660 million. The metric was aided by improved collected premiums from annuity, life and health products. Net investment income was $597 million, which improved from the year-ago period of $483.7 million. General account assets grew 8.9% year over year to $411.9 million. Policyholder and other special-purpose portfolios totaled $185.1 million compared with the prior-year quarter’s $105.4 million. Fee revenues and other income declined 36.4% year over year to $22.2 million. Annuity collected premiums of $536 million rose 3% year over year, while health collected premiums increased 5.5% to $432 million. Collected premiums from life products totaled $249.3 million, which rose 1.5% year over year. The total collected premiums advanced 3.6% year over year to $1.2 billion. New annualized premiums for health products rose 18.2% year over year, while the same for life products declined 3.8%. Annuity, Health and Life products accounted for 21.7%, 52.8% and 25.5%, respectively, of CNO's insurance margin. Total benefits and expenses rose 8.9% year over year to $1.1 billion due to higher insurance policy benefits. CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $1.3 billion, which rose 68.4% from the 2025-end level. Total assets of $39.9 billion rose 6.8% from the figure at 2025-end. The debt-to-capital was 34% at the second-quarter end, which deteriorated 40 basis points (bps) from the 2025-end figure. Total shareholders’ equity declined 1.8% from the 2025-end level to $2.6 billion. Book value per common share was $27.96, which increased 0.1% from the figure at 2025-end. Operating return on equity, excluding significant items, improved 190 bps year over year to 13.1% at the second-quarter end. CNO Financial rewarded its shareholders with $60 million in the form of share buybacks and $16.8 million in dividends during the second quarter. As of June 30, 2026, the company had a leftover repurchase capacity of $300.4 million. CNO Financial raised its full-year 2026 guidance, indicating confidence in the current operating trajectory. The company now expects operating EPS to be in the range of $4.60-$4.80, up from the previously guided range of $4.25-$4.45. The mid-point of which now indicates a 6.8% increase from the 2025 reported figure of $4.40. For 2026, management still anticipates excess cash flow of $200-$250 million to the holding company. The company now projects the expense ratio to be in the band of 18.8-19% for 2026. It estimates the effective tax rate to be around 21.5%. Management still aims to achieve leverage within the band of 25-28%. CNO currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader finance space that have also reported their quarterly results: RenaissanceRe Holdings Ltd. RNR, Aon plc AON and The Hartford Insurance Group, Inc. HIG. Here's how they have performed: RenaissanceRe reported second-quarter 2026 operating income of $12.92 per share, which surpassed the Zacks Consensus Estimate by 12.9%.  The bottom line also improved 5.1% year over year. Total operating revenues declined 6.7% year over year to $2.64 billion. The quarterly earnings benefited from lower expenses, higher net investment income and an improved total combined ratio. However, RNR’s upside was partly offset by lower net premiums earned, weaker underwriting results in the Casualty & Specialty segment and lower fee income. Aon reported second-quarter 2026 adjusted earnings of $3.81 per share, which surpassed the Zacks Consensus Estimate by 1.1%. The bottom line advanced 9% year over year. Total revenues of $4.2 billion grew 2% year over year. AON’s quarterly results were supported by strong organic revenue growth, healthy client retention, operating margin expansion and disciplined execution. Solid performance across the Commercial Risk, Reinsurance and Health Solutions businesses was partly offset by weakness in Wealth Solutions. Hartford delivered second-quarter fiscal 2026 earnings per share of $3.42, up 6% year over year and above the Zacks Consensus Estimate of $3.12 by 9.6%. Revenues came in at $5.23 billion, which improved 6.8% year over year. HIG’s quarterly results benefited from higher investment income, premium growth in Business Insurance and improving Personal Insurance profitability. Strong new business expansion in Small Business and favorable pricing trends supported results. However, the upside was partly offset by an increased expense level, higher catastrophe losses and weaker Employee Benefits profitability. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report The Hartford Insurance Group, Inc. (HIG) : Free Stock Analysis Report RenaissanceRe Holdings Ltd. (RNR) : Free Stock Analysis Report Aon plc (AON) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Insurance services company CNO Financial Group (NYSE:CNO) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 5.5% year on year to $1.01 billion. Its non-GAAP profit of $1.26 per share was 29.9% above analysts’ consensus estimates. Is now the time to buy CNO? Find out in our full research report (it’s free). Revenue: $1.01 billion vs analyst estimates of $993.1 million (5.5% year-on-year growth, 1.4% beat) Adjusted EPS: $1.26 vs analyst estimates of $0.97 (29.9% beat) Operating Margin: 15%, up from 11.8% in the same quarter last year Market Capitalization: $5.14 billion CNO Financial Group’s second quarter was marked by strong sales growth and margin expansion, leading to a positive market reaction. Management attributed the outperformance to record annuity and Medicare Supplement sales, as well as continued success in the company’s captive agent distribution model. CEO Gary Bhojwani highlighted, “Our exclusive middle market focus and last-mile captive agent distribution remain key competitive advantages.” The quarter also benefited from favorable underwriting and investment results, while targeted marketing shifts in the life insurance business allowed for more efficient acquisition channels. Looking ahead, CNO’s guidance is shaped by confidence in sustained demand for its health and retirement products, particularly due to demographic tailwinds from the baby boomer cohort entering retirement. Management expects continued growth in Medicare Supplement and annuity products, supported by its diversified product portfolio and multi-channel distribution. CFO Paul McDonough noted, “Our intention is to improve ROE each year, including in 2027 and beyond, with the ultimate goal of achieving top quartile ROE relative to our peer group.” The company also anticipates ongoing investments in technology modernization and disciplined capital deployment to further support growth. Management pointed to the company’s diversified product portfolio, agent productivity, and shifting consumer preferences as the main drivers behind CNO’s robust quarter and improved outlook. Agent distribution model strength: CNO’s captive agent force, which focuses on the middle-income market, was cited as a major contributor to sales growth and resilience against competitive pressures. Management believes this model is difficult for competitors to replicate and allows for consistent customer engagement. Medicare Supplement tailwinds: The company achieved a 52% increase in Medicare Supplement new annualized premiums, driven by a shift in consumer preference away from Medicare Advantage plans. This product acts as a “door opener” for broader customer relationships and supports cross-selling other retirement and health products. Worksite channel momentum: The worksite division saw a 29% jump in life and health new annualized premiums, benefiting from both geographic expansion and deeper penetration within existing markets. Employers are increasingly offering employee-paid voluntary benefits, and CNO’s product suite is designed to meet these needs. Investment income contribution: CNO’s investment portfolio generated 8% growth in net investment income, helped by higher yields and alternative investment returns. The portfolio’s allocation to corporate bonds and a continued focus on asset quality were highlighted by Chief Investment Officer Eric Johnson. Expense discipline and capital deployment: The expense ratio remained favorable, partly due to timing, and capital was allocated toward technology modernization, share repurchases, and maintaining liquidity. Management indicated continued focus on reinvestment and selective inorganic growth opportunities. CNO’s full-year outlook is supported by favorable industry demographics, continued sales momentum in Medicare and annuities, and ongoing investments in distribution and technology. Favorable demographic trends: The company expects the retirement of thousands of baby boomers daily to sustain demand for Medicare and annuity products. Management views this demographic shift as a durable, long-term growth driver, with 11,000 Americans turning 65 each day. Technology and operational investments: Ongoing investments in technology modernization initiatives—especially upgrading core applications and infrastructure—are intended to improve efficiency and reduce operational risk, with management expecting these efforts to enhance sales productivity and customer service. Capital management and risk balancing: Management is focused on maintaining a strong capital position, deploying excess capital through disciplined share repurchases, and seeking selective inorganic growth. Continued attention to product risk balancing across mortality, morbidity, and longevity aims to ensure consistent profitability. In the coming quarters, the StockStory team will monitor (1) the pace and sustainability of Medicare Supplement and annuity sales growth, (2) execution of technology modernization and its impact on agent productivity, and (3) capital deployment decisions, especially regarding share repurchases and potential inorganic growth. Any regulatory developments affecting capital management or retirement product offerings will also be closely watched. CNO Financial Group currently trades at $55.24, up from $53.49 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved 16 consecutive quarters of sales growth and 14 quarters of agent growth, validating the 'durable competitive moat' of the last-mile captive agent model. Performance was driven by strong insurance product margins and investment results, specifically the expansion of portfolio book yield in a favorable interest rate environment. Consumer division growth benefited from a structural shift in consumer preference away from Medicare Advantage toward Medicare Supplement products. Worksite division success is attributed to geographic expansion and deeper penetration into small-to-midsized businesses seeking voluntary benefits to offset rising healthcare costs. Management is actively transitioning Direct-to-Consumer marketing from traditional television to more efficient digital and third-party channels to optimize acquisition costs. The product portfolio is strategically balanced across mortality, morbidity, and longevity risks to ensure consistent performance across different economic cycles. Operational leverage improved as strong sales results allowed the company to narrow its expense ratio while continuing to fund long-term technology modernization. Increased full-year operating EPS guidance to $4.60–$4.80, reflecting confidence in underlying business fundamentals and first-half outperformance. Expects durable demand for healthcare products driven by the 'peak retirement' of the baby boomer generation and an 8% increase in retired healthcare savings requirements. Anticipates achieving top-quartile ROE relative to peers, with 2026 performance expected to exceed the previously set 12% target for 2027. Free cash flow generation in the second half of 2026 is expected to benefit from moving closer to target capital levels in operating subsidiaries, including the Bermuda entity. Management assumes expense dollars will normalize over the remainder of the year despite favorable timing differences observed in the first half. Identified a $4 million favorable reserve release in Medicare Supplement due to better-than-expected claims development, which is not expected to recur. Supplemental health margins were partially offset by a handful of large claims on older policies, though management characterized these as isolated events rather than a trend shift. The 'Tech Mod' initiative remains a significant ongoing capital consumer, representing a one-off reinvestment in core applications and infrastructure to reduce long-term risk. Bermuda operations have built up excess capital over three years; management is exploring a third treaty to optimize this capital, subject to regulatory approvals. Management observed claims trending at the favorable end of current assumptions but deferred a definitive sustainability claim until the formal annual review in Q3. The company continues to monitor recent trends quarterly to determine if current outperformance warrants a long-term assumption change. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is attributed to 'tactical blocking and tackling' rather than a strategic pivot, specifically the maturity of the salesforce in utilizing existing products. Increased employer encouragement for voluntary life products has created a tailwind for the division's career agents. Management maintains that capital priorities remain unchanged: supporting growth, reinvesting in tech, and returning excess to shareholders. The CEO explicitly stated the company remains 'undervalued' even when trading above book value, justifying continued disciplined share repurchases. CNO is 'significantly insulated' from the industry's annuity 'arms race' because its captive agents do not 'spreadsheet' products against competitors. The primary competition for their middle-market customer base is often a bank CD rather than other large financial players. The company is focusing on single-A rated corporate bonds over BBB categories to protect portfolio quality while optimizing returns. Management is actively working to lower the convexity profile of the portfolio by being less active in prepayable securities like Residential Mortgage Loans (RMLs).

Interested in CNO Financial Group, Inc.? Here are five stocks we like better. CNO Financial Group raised its 2026 operating earnings guidance to $4.60–$4.80 per diluted share, an 8% midpoint increase, after second-quarter operating EPS climbed 45% year over year to $1.26. Sales growth was broad-based: total new annualized premiums rose 7%, driven by a 52% increase in Medicare Supplement sales and 29% growth in Worksite life and health premiums. Annuity and brokerage assets also reached record levels. Favorable underwriting, higher investment income and disciplined capital management supported results. CNO returned $77 million to shareholders, including $60 million in buybacks, while maintaining a strong 377% risk-based capital ratio. CNO Financial Group (NYSE:CNO) reported stronger second-quarter results, citing broad sales growth, favorable underwriting and higher investment income, while raising its full-year operating earnings outlook. Operating earnings per diluted share rose 45% year over year to $1.26, excluding significant items, Chief Executive Officer Gary Bhojwani said on the company’s second-quarter 2026 earnings call. Year-to-date operating earnings per share increased 43%, excluding significant items. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The insurer raised its 2026 operating earnings per share guidance to a range of $4.60 to $4.80, an 8% increase at the midpoint from its prior outlook. Chief Financial Officer Paul McDonough said the company also narrowed its projected expense ratio range to 18.8% to 19.0%, lowering the high end by 20 basis points, while reaffirming its other full-year guidance measures. Total new annualized premiums increased 7% during the quarter, and Bhojwani said the company recorded multiple sales records. CNO marked its 16th consecutive quarter of sales growth and its 14th consecutive quarter of growth in producing agent count. → Microsoft Just Flipped the AI Spending Narrative Overnight In the Consumer Division, total health new annualized premiums, or NAP, climbed 17%. Supplemental health NAP rose 5%, long-term care increased 4%, and Medicare Supplement NAP jumped 52%, marking the third straight quarter of growth above 50% in that category. Bhojwani said results have benefited from a shift in consumer preferences from Medicare Advantage plans toward Medicare Supplement coverage. Total Medicare policies sold increased 12%. → Carrier Earnings Could Send the Stock to a New All-Time High “Medicare remains a flagship door-opening product for CNO,” Bhojwani said, adding that it supports efforts to expand the number of households served by the company. Life NAP in the Consumer Division declined 9%, primarily due to lower direct-to-consumer sales against a strong prior-year comparison. Bhojwani said CNO is taking a measured approach to its direct-to-consumer channel and continues to shift away from television advertising. Web, digital and third-party partner channels accounted for nearly 72% of direct-to-consumer life sales during the quarter. Meanwhile, annuity collected premiums reached a record $536 million, up 3%, while annuity account values rose 7%. Brokerage and advisory client assets increased 24% to a record level, and total accounts rose 13%. Combined annuity account values and brokerage and advisory client assets exceeded $19 billion, up 11%. In the Worksite Division, life and health NAP reached a record and increased 29%. Life sales rose 44%, hospital indemnity sales increased 33%, accident sales gained 31%, and critical illness sales rose 7%. NAP from new Worksite clients increased 84%, with growth balanced between geographic expansion and deeper penetration of existing markets, according to Bhojwani. Producing agent count in the division rose 6%, its 16th consecutive quarter of growth. The company’s career agency distribution channel generated about 90% of Worksite insurance sales. McDonough said insurance product margin grew across CNO’s three major product categories as sales momentum combined with broadly favorable claims experience. Medicare Supplement margins benefited from block growth, favorable morbidity and rate increases implemented earlier in the year. The results also included roughly $4 million of favorable claims-reserve development, McDonough said in response to an analyst question. He said investors assessing the product’s run-rate margin should adjust for that item. Long-term care results benefited from block growth and lower morbidity. McDonough said the company has observed modestly lower claims than expected, toward the favorable end of its existing assumptions, but said management would review the trends further during its annual third-quarter review. Supplemental health margins reflected block growth, partly offset by several large claims on older policies. McDonough characterized those claims as isolated events rather than evidence of a change in underlying trends. Net investment income increased 8% from a year earlier, marking CNO’s 11th consecutive quarter of growth in total net investment income. The company’s new-money rate was 6.16%, its 14th straight quarter above 6%. Investment income allocated to product lines rose 3%, supported by a 4% increase in average net insurance liabilities. Net investment income not allocated to products increased 46%, driven by alternative-investment income, growth in the company’s FHLB and FABN programs, including a $300 million FABN issuance during the quarter, and higher gains on option forfeitures from annuity surrenders. CNO returned $77 million to shareholders during the quarter, including $60 million of share repurchases. Repurchases contributed to a 5% reduction in weighted average diluted shares outstanding, McDonough said. Book value per diluted share, excluding accumulated other comprehensive income, was $39.92, up 5%. The company reported a consolidated risk-based capital ratio of 377%, holding-company liquidity of $233 million and debt-to-capital of 26.1% at quarter-end. Trailing 12-month operating return on equity was 14.1%, or 13.1% excluding significant items. McDonough said CNO now expects its 2026 operating return on equity to exceed its previously established 12% target for year-end 2027. Management intends to set new return-on-equity targets in February 2027. On capital deployment, McDonough said the company’s priorities have not changed: reinvesting to support growth, maintaining target capital and liquidity levels, considering selective inorganic opportunities, and returning excess capital through dividends and share repurchases. He cited the company’s TechMod modernization initiative as a significant ongoing reinvestment effort. CNO also said it expects to move closer to target capital levels at its operating subsidiaries, including Bermuda, during the second half of the year, subject to regulatory approvals. McDonough said potential additional reinsurance activity could be part of that process, but did not provide details. CNO Financial Group is an Indiana‐based holding company that offers a range of insurance and retirement solutions through its operating subsidiaries. Its primary business activities include life insurance, annuities, and supplemental health insurance products designed to help individuals plan for retirement and manage health‐related expenses. The company serves middle‐income Americans, with particular emphasis on senior customers seeking guaranteed coverage and reliable income streams. Originally founded as Conseco in 1979, the company underwent a financial restructuring and rebranded as CNO Financial Group in 2010. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "CNO Financial Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Operating Earnings Per Share: $1.26, up 45% year-over-year. Operating Earnings Per Share (Excluding Significant Items): Up 45% in Q2 and 43% year-to-date. Total New Annualized Premiums: Up 7%. Book Value Per Diluted Share (Excluding AOCI): $39.92, up 5%. Capital Returned to Shareholders: $77 million in the quarter, including $60 million on share repurchases. Expense Ratio: 18.4% for the quarter. Operating Return on Equity: 14.1%; 13.1% excluding significant items. Net Investment Income: Increased 8% year-over-year. New Money Rate: 6.16% in the quarter. Consolidated Risk-Based Capital Ratio: 377%. Holding Company Liquidity: $233 million. Debt to Capital: 26.1%. 2026 Operating EPS Guidance: Raised to a range of $4.60 to $4.80. 2026 Expense Ratio Guidance: Narrowed to a range of 18.8% to 19.0%. Annuity Collected Premiums: Record $536 million, up 3%. Annuity Account Values: Up 7%. Client Assets (Brokerage and Advisory): Up 24% to a new record. Total Client Assets (Annuities and Brokerage/Advisory): More than $19 billion, up 11%. Medicare Supplement NAP: Up 52%. Total Medicare Policies Sold: Up 12%. Total Health Sales: Up 17%. Supplemental Health Sales: Up 5%. Long-Term Care Sales: Up 4%. Life Sales (Consumer Division): Down 9%. Worksite Life and Health NAP: Up 29%. Worksite Life and Hospital Indemnity Sales: Up 33%. Worksite Accident Sales: Up 31%. Worksite Critical Illness Sales: Up 7%. Producing Agent Count: Up 3% in Consumer division; up 6% in Worksite division. Warning! GuruFocus has detected 8 Warning Sign with CNO. Is CNO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. CNO Financial Group Inc (NYSE:CNO) delivered a very strong quarter with operating earnings per diluted share up 45% in Q2 2026 and 43% year-to-date, excluding significant items. The company achieved its 16th consecutive quarter of sales growth and its fourth consecutive quarter of producing agent income growth, demonstrating consistent business momentum. Sales results were strong across both divisions, with total new annualized premiums up 7% and multiple sales records set, including records in annuities and brokerage and advisory. The company raised its full-year 2026 operating earnings per share guidance to a range of $4.60 to $4.80, an 8% increase at the midpoint from prior guidance, reflecting confidence in the business. CNO Financial Group Inc (NYSE:CNO) maintained a robust capital position with a consolidated risk-based capital ratio of 377%, holding company liquidity of $233 million, and returned $77 million to shareholders in the quarter. The company's investment portfolio continues to perform well, with the new money rate at 6.16% for the 14th consecutive quarter above 6%, and total net investment income up 8% year-over-year. The worksite division delivered its 17th consecutive quarter of sustained sales growth, with record life and health new annualized premiums up 29% and new clients up 84%. The company's Medicare supplement business benefited from favorable morbidity and rate increases, and the shift in consumer preferences away from Medicare Advantage towards Medicare supplement is a positive trend for the company. Life new annualized premiums in the consumer division were down 9% for the quarter against a strong comparable, primarily driven by lower direct-to-consumer sales. The company acknowledged that the transition in marketing channels away from television advertising towards more efficient channels may create some quarterly variability in B2C life sales. The favorable morbidity in the Medicare supplement business resulted in a reserve release from better-than-expected first-quarter claims development, which the company does not expect to recur. The company noted that the expense ratio of 18.4% reflects favorable expense performance that is viewed as a timing difference, and expenses are expected to normalize over the remainder of the year. The company faces competitive pressures in the annuity market, with new entrants and an 'arms race' in crediting rates, although it is somewhat insulated by its captive distribution model and middle-market focus. The company's long-term care margins have been strong, but the CFO noted that the favorable claims experience is on the favorable end of current assumptions and will be reviewed in the third quarter, indicating uncertainty about sustainability. The company's CEO acknowledged that the streak of consecutive sales growth quarters will eventually break, and he could not predict whether Q3 will be above Q2, indicating potential for deceleration in the consumer division. Q: Can you provide an update on capital deployment priorities, specifically how you are thinking about share repurchases with the stock now trading well above book value?A: Paul McDonough (CFO) stated that the company's approach to capital management has not changed. They generate capital to support growth, reinvest in the business (notably the tech modernization initiative), and return excess capital to shareholders through dividends and share repurchases. Gary Bhojwani (CEO) added that while the accounting treatment of buybacks is less advantageous above book value, he still believes the company is undervalued and will continue executing its strategy. Q: Can you provide an update on Bermuda and the potential to move other blocks of business there?A: Paul McDonough (CFO) said they will not provide details ahead of regulatory approvals but confirmed there are opportunities to feed more liabilities into Bermuda. He noted that after nearly three years of operating there, they have built up excess capital and are looking to solve for that, subject to regulatory approvals. A third treaty could be part of that process, which would be a one-off favorable item for free cash flow this year. Q: With MedSupp margins traveling in the mid-30s versus the mid-20s previously, can you size the reserve release and give a sense of the go-forward run rate?A: Paul McDonough (CFO) confirmed there was favorable claims reserve development of approximately $4 million, which is a one-time item. He advised that adjusting for this, the first half of the year provides a decent indication of the underlying run-rate margin for the product. Q: On long-term care, margins have been strong and improving for years. Are you getting closer to thinking this could be a more sustainable long-term level?A: Paul McDonough (CFO) said they review this quarterly and in more detail annually in the third quarter. He noted they have observed modestly lower claims versus expectations, on the favorable end of the range of current assumptions, but did not want to get ahead of the annual exercise. They will report findings on the third-quarter call. Q: On the Worksite business, can you provide more color on the significant growth in interest-sensitive life sales?A: Gary Bhojwani (CEO) attributed the growth to a combination of geographic expansion, penetration into existing markets, good market demand, employer encouragement, and the maturity of their sales force. He emphasized there have been no major strategic shifts or product changes, just continued execution and "blocking and tackling" by the team. Q: Consumer MAP has been decelerating, and comps get more difficult. Can you keep this growth engine going, or could we see a decline?A: Gary Bhojwani (CEO) acknowledged sales never go in a straight line and the streak will eventually break, but he would not bet against the team. He cited favorable demographics (11,000 people turning 65 daily), a strong product portfolio, and excellent field leadership as tailwinds. While he cannot predict quarterly results, he is extremely confident in the 3-5 year outlook. Q: What are you seeing in the market that led to more corporate bond investments this quarter, and what other asset classes are attractive?A: Eric Johnson (Chief Investment Officer) said the quarter was active in optimizing the portfolio, involving corporate bond swaps and sector reallocations. They have not been aggressively adding to the RML portfolio, feeling they have sufficient allocation, and have been working to lower the convexity profile. They continue to focus on single-A rated corporates, which offer better value than triple-B. Q: Can you talk about annuity spread dynamics and whether you are seeing pressure on crediting rates?A: Paul McDonough (CFO) said they manage annuities to a target spread and continue to apply discipline. Gary Bhojwani (CEO) added that while there is an "arms race" with new entrants, CNO is insulated because they sell exclusively through captive distribution and focus on the middle-income market, where their primary competition is bank CDs rather than other insurance carriers. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

CARMEL, Ind., July 30, 2026 /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) today reported its second quarter 2026 financial results: Strong execution and momentum continues; Raising 2026 operating earnings per share (EPS) guidance by 8% at the midpoint from our prior guidance. Net income was $126 million, or $1.33 per diluted share, and net operating income(1) was $120 million, or $1.26 per diluted share. Operating EPS grew 45% in the quarter and 39% year-to-date. Return on equity (ROE) of 10.9%; Operating ROE(5) of 13.1%, excluding significant items(5). Book value per share of $27.96 and book value per diluted share, excluding accumulated other comprehensive loss,(2) of $39.92, up 5%. Total new annualized premiums (NAP)(4) up 7%, extending our track record of insurance sales growth to 16 consecutive quarters. Achieved quarterly records in Worksite Division NAP, Annuity collected premiums and client assets in brokerage and advisory. Consumer and Worksite delivered their 14th and 16th consecutive quarters of producing agent count growth, respectively. "CNO delivered a very strong first half, with second quarter operating earnings per share up 45% and our 16th consecutive quarter of sales growth," said Gary C. Bhojwani, chief executive officer. "We are raising full-year guidance on operating earnings per share to reflect strong underlying fundamentals, continued profitability improvement and the consistent, repeatable results we continue to generate across the business." FINANCIAL SUMMARYQuarter End(Amounts in millions, except per share data)(Unaudited) Net income in 2Q26 and 2Q25 was higher than operating income primarily driven by non-economic accounting impacts from market volatility, partially offset by investment losses that are treated as non-operating income. Net operating income, a non-GAAP(a) financial measure, excludes these non-economic accounting impacts as well as other non-operating items. Net operating income is used consistently by CNO's management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes the non-operating items as defined in note (1). Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure. In 2Q26 and 2Q25, net income and net operating income(1) were unaffected by significant items. Significant items are detailed in note (6). FINANCIAL SUMMARY (continued)Management vs. GAAP Measures(Dollars in millions, except per share data)(Unaudited) Shareholders' equity, excluding accumulated other comprehensive income (loss), and book value per share, excluding accumulated other comprehensive income (loss), are non-GAAP measures that are utilized by management to view the business without the effect of accumulated other comprehensive income (loss) which is primarily attributable to fluctuations in interest rates associated with fixed maturities, available for sale. Management views the business in this manner because the Company has the ability and generally, the intent, to hold investments to maturity and meaningful trends can be more easily identified without the fluctuations. In addition, shareholders' equity excludes net operating loss carryforwards in our non-GAAP return on equity measures as such assets are not discounted and, accordingly, will not provide a return to shareholders until after it is realized as a reduction to taxes that would otherwise be paid. Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns. Non-Operating ItemsNet investment losses in 2Q26 were $13.6 million, including the unfavorable change in the allowance for credit losses of $3.4 million. Net investment losses in 2Q25 were $21.8 million, including the unfavorable change in the allowance for credit losses of $1.0 million. During 2Q26 and 2Q25, we recognized a decrease in earnings of $1.1 million and an increase of $3.4 million, respectively, due to the net change in market value of investments. During 2Q26 and 2Q25, we recognized an increase in earnings of $34.6 million and $25.2 million, respectively, resulting from changes in the estimated fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities. Such amounts include the impacts of changes in market interest rates and equity impacts used to determine the estimated fair values of the embedded derivatives and market risk benefits, and changes in equity volatility. During 2Q26 and 2Q25, we incurred $9.7 million and $3.2 million, respectively, of expense related to TechMod, our technology modernization initiative. This three-year project began in the second quarter of 2025 to modernize certain elements of our technology. We recognized a $1.1 million non-operating loss related to our previously announced exit from the fee services side of the Worksite business during 2Q26. Beginning in 4Q25, operating losses, including costs to exit this business, are reported in non-operating income. These operating losses were previously reported in operating income as a component of fee income. Statutory (based on non-GAAP measures) and GAAP Capital InformationThe consolidated statutory risk-based capital ratio of our U.S. based insurance subsidiaries was estimated at 377% at June 30, 2026, reflecting estimated 2Q26 statutory operating gain of $35.4 million. There were $20.0 million of company dividends paid to the holding company during 2Q26. During 2Q26, we repurchased $60.0 million of common stock under our securities repurchase program. We repurchased 1.3 million common shares at an average cost of $46.57 per share. As of June 30, 2026, we had 92.7 million shares outstanding and had authority to repurchase up to an additional $300.4 million of our common stock. During 2Q26, dividends paid on common stock totaled $16.8 million. Unrestricted cash and investments held by our holding company were $233.2 million at June 30, 2026 compared to $351.4 million at December 31, 2025. Book value per common share was $27.96 at June 30, 2026 compared to $27.92 at December 31, 2025. Book value per diluted share, excluding accumulated other comprehensive income (loss) (2), was $39.92 at June 30, 2026 compared to $38.81 at December 31, 2025. The debt-to-capital ratio was 34.0% and 33.6% at June 30, 2026 and December 31, 2025, respectively. Our debt-to-total capital ratio, excluding accumulated other comprehensive income (loss)(3), was 26.1% and 26.2% at June 30, 2026 and December 31, 2025, respectively. Return on equity for the trailing four quarters ended June 30, 2026 and 2025 was 10.9% and 11.9%, respectively. Operating return on equity, excluding significant items(5), for the trailing four quarters ended June 30, 2026 and 2025 was 13.1% and 11.2%, respectively. In this news release, CNO includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing a broader perspective. CNO's definitions of non-GAAP measures may differ from other companies' definitions. More detailed information including various GAAP and non-GAAP measurements are located at CNOinc.com in the Investors section under SEC Filings. CAUTION REGARDING FORWARD-LOOKING STATEMENTS: This press release may contain forward-looking statements within the meaning of federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to CNO's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the year ended December 31, 2025 and any subsequent Form 10-Q or Form 10-K on file with the Securities and Exchange Commission and on the Company's website at CNOinc.com in the Investors section. CNO specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise. EARNINGS RELEASE CONFERENCE CALL WEBCAST: The Company will host a conference call to discuss results on July 31, 2026 at 11:00 a.m. Eastern Time. During the call, we will be referring to a presentation that will be available at the Investors section of the company's website. To participate by dial-in, please register at https://events.q4inc.com/attendee/121613442. Upon registering, you will be provided with call details and a registrant ID used to track attendance on the conference call. Reminders will also be sent to registered participants via email. For those investors who prefer to listen to the call online, we will be broadcasting the call live via webcast. The event can be accessed through the Investors section of the company's website: ir.CNOinc.com. Participants should go to the website at least 15 minutes before the event to register and download any necessary audio software. ABOUT CNO FINANCIAL GROUP CNO Financial Group, Inc. (NYSE: CNO) secures the future of middle-income America. CNO provides life and health insurance, annuities and financial services through our family of brands, including Bankers Life, Colonial Penn, Optavise and Washington National. Our customers work hard to save for the future, and we help protect their health, income and retirement needs with 3.3 million policies and $39.9 billion in total assets. Our 3,200 associates, 5,100 exclusive agents and more than 6,500 independent partner agents guide individuals, families and businesses through a lifetime of financial decisions. For more information, visit CNOinc.com. The following summarizes: (i) net operating income; (ii) significant items; (iii) net operating income, excluding significant items; and (iv) net income (loss) (dollars in millions): A reconciliation of pre-tax operating earnings (a non-GAAP financial measure) to net income is as follows (dollars in millions): 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 (dollars in millions): A reconciliation of consolidated capital, excluding accumulated other comprehensive loss and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions): View original content to download multimedia:https://www.prnewswire.com/news-releases/cno-financial-group-reports-second-quarter-2026-results-302839444.html