Exceptional fourth quarter, full-year
earnings and sales; Entering 2025 well-positioned for
sustainable growth and ROE expansion
CARMEL,
Ind., Feb. 6, 2025 /PRNewswire/ -- CNO
Financial Group, Inc. (NYSE: CNO) today announced its financial
results for the fourth quarter and full year ended December 31, 2024. Net income in 4Q24 was
$166.1 million, or $1.58 per diluted share, compared to $36.3 million, or $0.32 per diluted share, in 4Q23. Net income for
the year ended December 31, 2024 was
$404.0 million, or $3.74 per diluted share, compared to $276.5 million, or $2.40 per diluted share, in 2023. Non-economic
accounting impacts due to market volatility increased net income in
4Q24 and full year 2024, and decreased net income in 4Q23 and full
year 2023.
Net operating income (1), which excludes these
non-economic accounting impacts, was $138.0
million, or $1.31 per diluted
share, in 4Q24 compared to $133.9
million, or $1.18 per diluted
share, in 4Q23. Net operating income (1) for the
year ended December 31, 2024
was $429.3 million, or $3.97 per
diluted share, compared to $356.1
million, or $3.09 per diluted
share, in 2023.
In 4Q24, both net income and net operating income (1)
were unfavorably impacted by significant items of $3.1 million, or $0.03 per diluted share, compared to a favorable
impact in 4Q23 of $26.4 million, or
$0.23 per diluted share. For
the year, both net income and net operating income (1)
were favorably impacted by significant items of $18.8 million, or $0.17 per diluted share, in 2024 and $43.3 million, or $0.37 per diluted share, in 2023.
"CNO delivered an exceptional quarter and full-year financial
performance, demonstrating our ability to grow the franchise while
also growing earnings and improving profitability," said
Gary C. Bhojwani, chief executive
officer. "Building on 10 consecutive quarters of sales growth and
strong agent force metrics, 2024 represented one of CNO's best
operating performances of the past several years, highlighted by
production records across both divisions."
"Operating earnings per share excluding significant items were
up 41% for the quarter and 40% for the year, as sustained sales
growth continued to translate into earnings growth. Significant
improvement in operating earnings per share and operating return on
equity reflect ongoing strength in our underwriting margins and net
investment income coupled with expense and capital discipline. Our
capital position and free cash flow generation remained robust,
while returning $349 million to
shareholders, a 50% increase from 2023."
"As we enter 2025, CNO continues to be well-positioned to
continue profitable growth, capitalize on the favorable macro and
demographic environment, and drive long-term ROE expansion."
Full Year 2024 Highlights (as compared to the
corresponding period in the prior year where applicable)
- Total new annualized premiums ("NAP") (4) up 7%
- Record Worksite Division NAP, up 16%; Consumer Division NAP up
5%
- Record Annuity collected premium, up 13%
- Record client assets in brokerage and advisory, up 28%
- Returned $349.3 million to
shareholders
- Return on equity ("ROE") of 16.4%; Operating ROE (5)
of 11.9%
Fourth Quarter 2024 Highlights (as compared to the
corresponding period in the prior year where applicable)
- Total NAP up 13%; Record Worksite Division NAP, up 23%;
Consumer Division up 11%
- Record Annuity collected premium, up 12% - Second consecutive
quarter
- Medicare Supplement NAP up 44%; Medicare Advantage submitted
applications up 39%
- Producing agent counts in the Consumer and Worksite Divisions
both up 8%
- Returned $108.0 million to
shareholders
- Book value per share was $24.59;
Book value per diluted share, excluding accumulated other
comprehensive loss, (2) was $37.19, up 10%
FINANCIAL SUMMARY
Quarter
End
(Amounts in millions, except per share data)
(Unaudited)
Net operating income, a non-GAAP(a) financial measure, 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 certain 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.
|
Per diluted
share
|
|
|
|
|
|
|
|
|
Quarter
ended
|
|
Quarter
ended
|
|
December
31,
|
|
December
31,
|
|
2024
|
|
|
2023
|
|
%
change
|
|
2024
|
|
|
2023
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from insurance
products (b)
|
$
1.01
|
|
|
$
1.19
|
|
(15)
|
|
$ 107.0
|
|
|
$
135.8
|
|
(21)
|
|
Fee income
|
0.20
|
|
|
0.16
|
|
25
|
|
20.6
|
|
|
17.8
|
|
16
|
|
Investment income not
allocated to product lines (c)
|
0.62
|
|
|
0.34
|
|
82
|
|
65.3
|
|
|
38.3
|
|
70
|
|
Expenses not allocated
to product lines
|
(0.18)
|
|
|
(0.18)
|
|
—
|
|
(19.0)
|
|
|
(19.8)
|
|
(4)
|
|
Operating earnings
before taxes
|
1.65
|
|
|
1.51
|
|
|
|
173.9
|
|
|
172.1
|
|
|
|
Income tax expense on
operating income
|
(0.34)
|
|
|
(0.33)
|
|
3
|
|
(35.9)
|
|
|
(38.2)
|
|
(6)
|
|
Net operating income
(1)
|
1.31
|
|
|
1.18
|
|
11
|
|
138.0
|
|
|
133.9
|
|
3
|
|
Net realized investment
gains (losses) from sales and change in allowance for credit
losses
|
(0.33)
|
|
|
0.01
|
|
|
|
(35.1)
|
|
|
1.4
|
|
|
|
Net change in market
value of investments recognized in earnings
|
(0.06)
|
|
|
0.08
|
|
|
|
(6.6)
|
|
|
8.8
|
|
|
|
Changes in fair value
of embedded derivative liabilities and market risk
benefits
|
0.68
|
|
|
(1.10)
|
|
|
|
71.0
|
|
|
(124.6)
|
|
|
|
Other
|
0.06
|
|
|
(0.10)
|
|
|
|
7.3
|
|
|
(11.6)
|
|
|
|
Non-operating income
(loss) before taxes
|
0.35
|
|
|
(1.11)
|
|
|
|
36.6
|
|
|
(126.0)
|
|
|
|
Income tax (expense)
benefit on non-operating income
|
(0.08)
|
|
|
0.25
|
|
|
|
(8.5)
|
|
|
28.4
|
|
|
|
Net non-operating
income (loss)
|
0.27
|
|
|
(0.86)
|
|
|
|
28.1
|
|
|
(97.6)
|
|
|
|
Net
income
|
$
1.58
|
|
|
$
0.32
|
|
|
|
$ 166.1
|
|
|
$
36.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
105.2
|
|
|
113.7
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
SUMMARY
Year
End
(Amounts in millions,
except per share data)
(Unaudited)
|
|
|
Per diluted
share
|
|
|
|
|
|
|
|
|
Year
ended
|
|
Year
ended
|
|
December
31,
|
|
December
31,
|
|
2024
|
|
|
2023
|
|
%
change
|
|
2024
|
|
|
2023
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from insurance
products (b)
|
$
3.93
|
|
|
$
3.13
|
|
26
|
|
$ 424.7
|
|
|
$
360.0
|
|
18
|
|
Fee income
|
0.28
|
|
|
0.27
|
|
4
|
|
30.0
|
|
|
31.0
|
|
(3)
|
|
Investment income not
allocated to product lines (c)
|
1.55
|
|
|
1.04
|
|
49
|
|
167.9
|
|
|
120.2
|
|
40
|
|
Expenses not allocated
to product lines
|
(0.67)
|
|
|
(0.45)
|
|
49
|
|
(71.8)
|
|
|
(51.7)
|
|
39
|
|
Operating earnings
before taxes
|
5.09
|
|
|
3.99
|
|
|
|
550.8
|
|
|
459.5
|
|
|
|
Income tax expense on
operating income
|
(1.12)
|
|
|
(0.90)
|
|
24
|
|
(121.5)
|
|
|
(103.4)
|
|
18
|
|
Net operating income
(1)
|
3.97
|
|
|
3.09
|
|
28
|
|
429.3
|
|
|
356.1
|
|
21
|
|
Net realized investment
losses from sales and change in allowance for credit
losses
|
(0.67)
|
|
|
(0.54)
|
|
|
|
(72.7)
|
|
|
(62.7)
|
|
|
|
Net change in market
value of investments recognized in earnings
|
0.21
|
|
|
(0.06)
|
|
|
|
22.8
|
|
|
(6.3)
|
|
|
|
Changes in fair value
of embedded derivative liabilities and market risk
benefits
|
0.23
|
|
|
(0.26)
|
|
|
|
24.7
|
|
|
(29.9)
|
|
|
|
Other
|
(0.07)
|
|
|
(0.03)
|
|
|
|
(7.3)
|
|
|
(3.8)
|
|
|
|
Non-operating loss
before taxes
|
(0.30)
|
|
|
(0.89)
|
|
|
|
(32.5)
|
|
|
(102.7)
|
|
|
|
Income tax benefit on
non-operating loss
|
0.07
|
|
|
0.20
|
|
|
|
7.2
|
|
|
23.1
|
|
|
|
Net non-operating
loss
|
(0.23)
|
|
|
(0.69)
|
|
|
|
(25.3)
|
|
|
(79.6)
|
|
|
|
Net
income
|
$
3.74
|
|
|
$
2.40
|
|
|
|
$ 404.0
|
|
|
$
276.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares outstanding
|
108.1
|
|
|
115.1
|
|
|
|
|
|
|
|
|
|
|
____________________
|
|
(a)
|
GAAP is defined as
accounting principles generally accepted in the United States of
America.
|
|
(b)
|
Income from insurance
products is the sum of the insurance margins of the annuity, health
and life product lines, less expenses allocated to the insurance
product lines. It excludes the income from our fee income
business, investment income not allocated to product lines, net
expenses not allocated to product lines (primarily holding company
expenses) and income taxes. Insurance margin is management's
measure of the profitability of its annuity, health and life
segments' performance and consists of insurance policy income plus
allocated investment income less insurance policy benefits,
interest credited, commissions, advertising expenses and
amortization of acquisition costs.
|
|
(c)
|
Investment income not
allocated to product lines represents net investment income less:
(i) equity returns credited to policyholder account balances; (ii)
the investment income allocated to our product lines; (iii)
interest expense on notes payable, investment borrowings and
financing arrangements; (iv) expenses related to the funding
agreement-backed notes ("FABN") program; and (v) certain
expenses related to benefit plans that are offset by
special-purpose investment income; plus (vi) the impact of annual
option forfeitures related to fixed indexed annuity
surrenders. Investment income not allocated to product lines
includes investment income on investments in excess of amounts
allocated to product lines, investments held by our holding
companies, the spread we earn from our federal home loan bank
("FHLB") investment borrowing and FABN programs and variable
components of investment income (including call and prepayment
income, adjustments to returns on structured securities due to cash
flow changes, income (loss) from company-owned life insurance
("COLI") and alternative investments income not allocated to
product lines), net of interest expense on corporate debt and
financing arrangements.
|
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.
_____________________________________________________________________________________________________
|
Year
ended
|
|
December
31,
|
|
2024
|
|
2023
|
|
|
|
|
|
Return on equity
(a)
|
16.4 %
|
|
14.0 %
|
|
Operating return on
equity (a non-GAAP financial measure) (5)
|
11.9 %
|
|
9.8 %
|
|
Operating return on
equity, excluding significant items (a non-GAAP
financial measure)
(5)
|
11.4 %
|
|
8.6 %
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
$ 2,498.4
|
|
$
2,215.6
|
|
Accumulated other
comprehensive loss
|
1,371.4
|
|
1,576.8
|
|
|
|
|
|
Shareholders' equity,
excluding accumulated other comprehensive loss
|
3,869.8
|
|
3,792.4
|
|
Net operating loss
carryforwards
|
(76.6)
|
|
(79.6)
|
|
Shareholders' equity,
excluding accumulated other comprehensive loss and net operating
loss carryforwards
|
$ 3,793.2
|
|
$
3,712.8
|
|
|
|
|
|
Book value per diluted
share
|
$
24.01
|
|
$
19.83
|
|
Accumulated other
comprehensive loss
|
13.18
|
|
14.11
|
|
|
|
|
|
Book value per diluted
share, excluding accumulated other comprehensive loss (a non-GAAP
financial measure) (2)
|
$
37.19
|
|
$
33.94
|
|
___________________
|
|
(a) Calculated
using average shareholders' equity for the measurement
period.
|
Non-Operating Items
Net investment losses in 4Q24 were
$35.1 million including the
unfavorable change in the allowance for credit losses of
$7.8 million which was recorded in
earnings. Net investment gains in 4Q23 were $1.4 million including the favorable change in
the allowance for credit losses of $21.8
million which was recorded in earnings.
During 4Q24 and 4Q23, we recognized a (decrease) increase in
earnings of $(6.6) million and
$8.8 million, respectively, due to
the net change in market value of investments recognized in
earnings.
During 4Q24 and 4Q23, we recognized an increase (decrease) in
earnings of $71.0 million and
$(124.6) 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.
Other non-operating items included an increase (decrease) in
earnings of $6.6 million and
$(10.3) million for the
mark-to-market change in the agent deferred compensation plan
liability which was impacted by changes in the underlying actuarial
assumptions used to value the liability in 4Q24 and 4Q23,
respectively. We recognize the mark-to-market change in the
estimated value of this liability through earnings as assumptions
change.
INVESTMENT PORTFOLIO
(Dollars in
millions)
Fixed maturities, available for sale, at amortized cost by asset
class as of December 31, 2024 are as
follows:
|
Investment
grade
|
|
Below investment
grade
|
|
Total
|
|
Corporate
securities
|
$ 13,107.1
|
|
$
678.2
|
|
$ 13,785.3
|
|
Certificate of
deposit
|
470.0
|
|
—
|
|
470.0
|
|
United States Treasury
securities and obligations of the United States government and
agencies
|
214.8
|
|
—
|
|
214.8
|
|
States and political
subdivisions
|
3,238.3
|
|
23.6
|
|
3,261.9
|
|
Foreign
governments
|
107.3
|
|
—
|
|
107.3
|
|
Asset-backed
securities
|
1,475.1
|
|
99.5
|
|
1,574.6
|
|
Agency residential
mortgage-backed securities
|
819.8
|
|
—
|
|
819.8
|
|
Non-agency residential
mortgage-backed securities
|
1,253.4
|
|
382.9
|
(a)
|
1,636.3
|
|
Collateralized loan
obligations
|
1,015.2
|
|
103.8
|
|
1,119.0
|
|
Commercial
mortgage-backed securities
|
2,275.3
|
|
—
|
|
2,275.3
|
|
|
|
|
|
|
|
Total
|
$ 23,976.3
|
|
$
1,288.0
|
|
$ 25,264.3
|
|
____________________
|
|
(a)
|
Certain structured
securities rated below investment grade by Nationally Recognized
Statistical Rating Organizations may be assigned a NAIC 1 or NAIC 2
designation based on the cost basis of the security relative to
estimated recoverable amounts as determined by the National
Association of Insurance Commissioners (NAIC).
|
The fair value of CNO's available for sale fixed maturity
portfolio was $22.8 billion compared
with an amortized cost of $25.3
billion. Net unrealized losses were comprised of gross
unrealized gains of $147.4 million
and gross unrealized losses of $2,534.0
million. The allowance for credit losses was
$37.1 million at December 31, 2024.
Statutory (based on non-GAAP measures) and GAAP Capital
Information
The consolidated statutory risk-based capital
ratio of our U.S. based insurance subsidiaries was estimated at
383% at December 31, 2024, reflecting
estimated 4Q24 statutory operating income of $164.4 million (and $196.9
million during 2024) and the payment of insurance company
dividends, net of capital contributions, to the holding company of
$17.1 million during 4Q24 (and
$129.0 million, net of capital
contributions, during 2024).
During 4Q24, we repurchased $91.6
million of common stock under our securities repurchase
program (including $1.4 million of
repurchases settled in 1Q25). We repurchased 2.5 million
common shares at an average cost of $36.96 per share. As of December 31, 2024, we had 101.6 million shares
outstanding and had authority to repurchase up to an additional
$240.3 million of our common
stock. During 4Q24, we paid dividends on common stock of
$16.4 million.
Unrestricted cash and investments held by our holding company
were $372.5 million at December 31, 2024, compared to $256.0 million at December
31, 2023. In addition, the holding company has invested
$500 million of the proceeds from the
May 2024 issuance of $700.0 million of 6.450% senior notes due 2034
(the "2034 Notes") primarily into certificates of deposit which are
expected to be used for the repayment of $500.0 million of 5.250% senior notes due
May 2025 (the "2025 Notes").
Book value per common share was $24.59 at December 31,
2024 compared to $20.26 at
December 31, 2023. Book value
per diluted share, excluding accumulated other comprehensive income
(loss) (2), was $37.19 at
December 31, 2024, compared to
$33.94 at December 31, 2023.
The debt-to-capital ratio was 42.3% and 34.0% at December 31, 2024 and 2023, respectively.
Our debt-to-total capital ratio, excluding accumulated other
comprehensive income (loss) (3) was 32.1% and 23.1% at
December 31, 2024 and 2023,
respectively. Such ratios reflect the issuance of the 2034
Notes in May 2024. At December 31,
2024, adjusting for the expected repayment of the 2025
Notes, the debt-to-total capital ratio would have been 34.8% and
the debt-to-total capital ratio, excluding accumulated other
comprehensive income (loss), would have been 25.6%.
Return on equity for the years ended December 31, 2024 and 2023, was 16.4% and 14.0%,
respectively. Operating return on equity, excluding
significant items (5) for the years ended December 31, 2024 and 2023, was 11.4% and 8.6%,
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, 2023 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
February 7, 2025 at 11:00 a.m. Eastern Time. During the call,
we will be referring to a presentation that will be available in
the Investors section of the company's website.
To participate by dial-in, please register at
https://www.netroadshow.com/events/login?show=7dd256fb&confId=76554.
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, financial services and workforce benefits
solutions 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 3.2 million
policies and $37.9 billion in total assets. Our 3,500
associates, 4,900 exclusive agents and more than 5,500 independent
partner agents guide individuals, families and businesses through a
lifetime of financial decisions. For more information, visit
CNOinc.com.
|
CNO FINANCIAL GROUP,
INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEET
(Dollars in
millions)
(unaudited)
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
ASSETS
|
|
|
|
|
Investments:
|
|
|
|
|
Fixed maturities,
available for sale, at fair value (net of allowance for credit
losses: 2024 - $37.1 and 2023 - $42.9; amortized cost: 2024 -
$25,264.3 and 2023 - $23,699.2)
|
$
22,840.5
|
|
$
21,506.2
|
|
Equity securities at
fair value
|
162.0
|
|
96.9
|
|
Mortgage loans (net of
allowance for credit losses: 2024 - $13.6 and 2023 -
$15.4)
|
2,506.3
|
|
2,064.1
|
|
Policy
loans
|
135.3
|
|
128.5
|
|
Trading
securities
|
304.2
|
|
222.7
|
|
Investments held by
variable interest entities (net of allowance for credit losses:
2024 - $1.3 and 2023 - $3.1; amortized cost: 2024 - $437.0 and
2023 - $787.6)
|
432.3
|
|
768.6
|
|
Other invested
assets
|
1,491.5
|
|
1,353.4
|
|
Total
investments
|
27,872.1
|
|
26,140.4
|
|
Cash and cash
equivalents - unrestricted
|
1,656.7
|
|
774.5
|
|
Cash and cash
equivalents held by variable interest entities
|
341.0
|
|
114.5
|
|
Accrued investment
income
|
286.4
|
|
251.5
|
|
Present value of future
profits
|
161.0
|
|
180.7
|
|
Deferred acquisition
costs
|
2,158.6
|
|
1,944.4
|
|
Reinsurance receivables
(net of allowance for credit losses: 2024 - $3.0 and 2023 -
$3.0)
|
3,854.7
|
|
4,040.7
|
|
Income tax assets,
net
|
818.9
|
|
936.2
|
|
Assets held in separate
accounts
|
3.3
|
|
3.1
|
|
Other assets
|
699.9
|
|
641.1
|
|
Total assets
(a)
|
$
37,852.6
|
|
$
35,027.1
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Liabilities for
insurance products:
|
|
|
|
|
Policyholder account
balances
|
$
17,615.8
|
|
$
15,222.5
|
|
Future policy
benefits
|
11,705.5
|
|
12,188.4
|
|
Market risk benefit
liability
|
60.0
|
|
117.1
|
|
Liability for life
insurance policy claims
|
61.1
|
|
62.1
|
|
Unearned and advanced
premiums
|
226.8
|
|
218.9
|
|
Liabilities related to
separate accounts
|
3.3
|
|
3.1
|
|
Other
liabilities
|
1,161.8
|
|
848.8
|
|
Investment
borrowings
|
2,188.8
|
|
2,189.3
|
|
Borrowings related to
variable interest entities
|
497.6
|
|
820.8
|
|
Notes payable – direct
corporate obligations
|
1,833.5
|
|
1,140.5
|
|
Total liabilities
(a)
|
35,354.2
|
|
32,811.5
|
|
Commitments and
Contingencies
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common stock ($0.01 par
value, 8,000,000,000 shares authorized, shares issued and
outstanding: 2024 - 101,618,957 and 2023 -
109,357,540)
|
1.0
|
|
1.1
|
|
Additional paid-in
capital
|
1,632.5
|
|
1,891.5
|
|
Accumulated other
comprehensive loss
|
(1,371.4)
|
|
(1,576.8)
|
|
Retained
earnings
|
2,236.3
|
|
1,899.8
|
|
Total shareholders'
equity
|
2,498.4
|
|
2,215.6
|
|
Total liabilities and
shareholders' equity
|
$
37,852.6
|
|
$
35,027.1
|
|
|
___________
(a) The prior
period column has been revised to conform to current year's
presentation for the correction of immaterial errors.
|
|
CNO FINANCIAL GROUP,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENT OF OPERATIONS
(Dollars in millions,
except per share data)
(unaudited)
|
|
|
Three months
ended
|
|
Year ended
|
|
December 31,
|
|
December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Insurance policy
income
|
$
643.6
|
|
$
625.7
|
|
$
2,558.5
|
|
$
2,505.5
|
|
Net investment
income:
|
|
|
|
|
|
|
|
|
General account
assets
|
399.5
|
|
325.1
|
|
1,419.4
|
|
1,250.2
|
|
Policyholder and other
special-purpose portfolios
|
17.1
|
|
140.1
|
|
329.4
|
|
249.5
|
|
Investment gains
(losses):
|
|
|
|
|
|
|
|
|
Realized investment
losses
|
(26.2)
|
|
(11.3)
|
|
(75.6)
|
|
(69.3)
|
|
Other investment gains
(losses)
|
(15.5)
|
|
21.5
|
|
25.7
|
|
0.3
|
|
Total investment gains
(losses)
|
(41.7)
|
|
10.2
|
|
(49.9)
|
|
(69.0)
|
|
Fee revenue and other
income
|
78.7
|
|
69.4
|
|
192.1
|
|
210.6
|
|
Total
revenues
|
1,097.2
|
|
1,170.5
|
|
4,449.5
|
|
4,146.8
|
|
Benefits and
expenses:
|
|
|
|
|
|
|
|
|
Insurance policy
benefits (a)
|
529.9
|
|
747.5
|
|
2,471.9
|
|
2,331.1
|
|
Liability for future
policy benefits remeasurement loss
|
(12.0)
|
|
(30.0)
|
|
(41.1)
|
|
(21.2)
|
|
Change in fair value
of market risk benefits (a)
|
(14.9)
|
|
11.3
|
|
(60.5)
|
|
(34.2)
|
|
Interest
expense
|
62.0
|
|
63.7
|
|
254.4
|
|
238.6
|
|
Amortization of
deferred acquisition costs and present value of future
profits
|
65.3
|
|
58.9
|
|
251.2
|
|
227.4
|
|
Other operating costs
and expenses
|
256.4
|
|
273.0
|
|
1,055.3
|
|
1,048.3
|
|
Total benefits and
expenses
|
886.7
|
|
1,124.4
|
|
3,931.2
|
|
3,790.0
|
|
Income before income
taxes
|
210.5
|
|
46.1
|
|
518.3
|
|
356.8
|
|
Income tax expense on
period income
|
44.4
|
|
9.8
|
|
114.3
|
|
80.3
|
|
Net income
|
$
166.1
|
|
$
36.3
|
|
$
404.0
|
|
$
276.5
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
102,778,000
|
|
111,591,000
|
|
106,144,000
|
|
113,275,000
|
|
Net income
|
$
1.62
|
|
$
.33
|
|
$
3.81
|
|
2.44
|
|
Diluted:
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
105,230,000
|
|
113,657,000
|
|
108,116,000
|
|
115,124,000
|
|
Net income
|
$
1.58
|
|
$
.32
|
|
$
3.74
|
|
2.40
|
|
|
___________
(a) The prior period columns have been revised to conform to
current year's presentation for the correction of immaterial
errors.
|
|
NOTES
|
|
(1)
|
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; (ii)
net change in market value of investments recognized in earnings,
net of taxes; (iii) changes in fair value of embedded derivative
liabilities and market risk benefits related to our fixed
indexed annuities, net of taxes; (iv) fair value changes related to
the agent deferred compensation plan, net of taxes; (v) gains
or losses related to material reinsurance transactions, net of
taxes; (vi) loss on extinguishment of debt, net of taxes;
(vii) changes in the valuation allowance for deferred tax assets
and other tax items; and (viii) other non-operating items
including earnings attributable to variable interest entities, net
of taxes ("net operating income," a non-GAAP financial
measure) is important to evaluate the financial performance of the
company, and is a key measure commonly used in the life insurance
industry. Management uses this measure to evaluate
performance because the items excluded from net operating income
can be affected by events that are unrelated to the company's
underlying fundamentals. A reconciliation of net operating
income to net income applicable to common stock is provided in the
table on page 2. Additional information concerning this
non-GAAP measure is included in our periodic filings with the
Securities and Exchange Commission that are available on CNO's
website, CNOinc.com, in the Investors section under SEC
Filings.
|
|
(2)
|
Book value per diluted
share reflects the potential dilution that could occur if
outstanding stock options were exercised and restricted stock and
performance units were vested. The dilution from options,
restricted shares and performance units is calculated using the
treasury stock method. Under this method, we assume the
proceeds from the exercise of the options (or the unrecognized
compensation expense with respect to restricted stock and
performance units) will be used to purchase shares of our common
stock at the closing market price on the last day of the
period. In addition, the calculation of this non-GAAP measure
differs from the corresponding GAAP measure because accumulated
other comprehensive income (loss) has been excluded from the value
of capital used to determine this measure. Management
believes this non-GAAP measure is useful because it removes the
volatility that arises from changes in the unrealized appreciation
(depreciation) of our investments.
|
|
(3)
|
The calculation of the
debt-to-total capital ratio non-GAAP measure differs from the
corresponding GAAP measure because accumulated other comprehensive
income (loss) has been excluded from the value of capital used to
determine this measure. Management believes this non-GAAP
measure is useful because it removes the volatility that arises
from changes in the unrealized appreciation (depreciation) of our
investments.
|
|
(4)
|
New annualized premiums
are measured by new annualized premiums for life and health
products, which includes 10% of single premium whole life deposits
and 100% of all other premiums (excluding annuities). Sales
of third-party products are excluded.
|
|
(5)
|
The following
summarizes the calculations of: (i) operating return on equity (a
non-GAAP financial measure), which is equal to the trailing four
quarters of net operating income (1) divided by average
shareholders' equity, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards; (ii) operating
return on equity, excluding significant items (a non-GAAP financial
measure), which is equal to the trailing four quarters of net
operating income(1) , excluding significant items,
divided by average shareholders' equity, excluding accumulated
other comprehensive income (loss) and net operating loss
carryforwards; and (iii) return on equity (dollars in
millions):
|
|
|
|
Year ended December
31,
|
|
|
|
2024
|
|
2023
|
|
Net operating income (a
non-GAAP financial measure)
|
$
429.3
|
|
$ 356.1
|
|
|
|
|
|
|
|
Net operating income,
excluding significant items
|
$
410.5
|
|
$ 312.8
|
|
|
|
|
|
|
|
Net income
|
$
404.0
|
|
$ 276.5
|
|
|
|
|
|
|
|
Average common equity,
excluding accumulated other
|
|
|
|
|
comprehensive income
(loss) and net operating loss
|
|
|
|
|
carryforwards (a
non-GAAP financial measure)
|
$ 3,604.1
|
|
$
3,631.5
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
$ 2,460.4
|
|
$
1,977.5
|
|
|
|
|
|
|
|
Operating return on
equity (a non-GAAP financial measure)
|
11.9 %
|
|
9.8 %
|
|
|
|
|
|
|
|
Operating return on
equity, excluding significant items (a non-GAAP financial
measure)
|
11.4 %
|
|
8.6 %
|
|
|
|
|
|
|
|
Return on
equity
|
16.4 %
|
|
14.0 %
|
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):
|
|
|
|
|
|
|
|
Net
operating
|
|
|
|
|
|
|
|
|
|
|
Net
operating
|
|
income,
|
|
|
|
|
|
|
|
|
|
|
income,
|
|
excluding
|
|
|
|
Net
|
|
|
|
|
|
|
excluding
|
|
significant
|
|
|
|
income -
|
|
|
Net
operating
|
|
Significant
|
|
significant
|
|
items -
trailing
|
|
Net
|
|
trailing
|
|
|
income
|
|
items (a)
|
|
items (a)
|
|
four
quarters
|
|
income
(loss)
|
|
four
quarters
|
|
1Q23
|
|
$
58.6
|
|
$
—
|
|
$
58.6
|
|
$
336.6
|
|
$
(0.8)
|
|
$
446.4
|
|
2Q23
|
|
62.3
|
|
—
|
|
62.3
|
|
281.2
|
|
73.7
|
|
286.8
|
|
3Q23
|
|
101.3
|
|
(16.9)
|
(b)
|
84.4
|
|
287.7
|
|
167.3
|
|
278.2
|
|
4Q23
|
|
133.9
|
|
(26.4)
|
(c)
|
107.5
|
|
312.8
|
|
36.3
|
|
276.5
|
|
1Q24
|
|
57.5
|
|
—
|
|
57.5
|
|
311.7
|
|
112.3
|
|
389.6
|
|
2Q24
|
|
114.6
|
|
—
|
|
114.6
|
|
364.0
|
|
116.3
|
|
432.2
|
|
3Q24
|
|
119.2
|
|
(21.9)
|
(d)
|
97.3
|
|
376.9
|
|
9.3
|
|
274.2
|
|
4Q24
|
|
138.0
|
|
3.1
|
(e)
|
141.1
|
|
410.5
|
|
166.1
|
|
404.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See note (6)
for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) Comprised of
$21.7 million of legal recoveries, net of expenses and increased
legal accruals, net of tax expense of $4.8 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Comprised of
$33.9 million of the net favorable impact arising from our
comprehensive annual actuarial review, net of tax expense of $7.5
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Comprised of
$31.2 million of the net favorable impact arising from our
comprehensive annual actuarial review and $2.9 million of the
unfavorable impact related to a fixed asset impairment, net of tax
expense of $6.4 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) Comprised of $3.9
million of the unfavorable impact arising from our comprehensive
annual actuarial review, net of tax expense of $0.8
million.
|
A reconciliation of pre-tax operating earnings (a non-GAAP
financial measure) to net income is as follows (dollars in
millions):
|
|
|
Year ended December
31,
|
|
|
|
2024
|
|
2023
|
|
Pre-tax operating
earnings (a non-GAAP financial measure)
|
$
550.8
|
|
$
459.5
|
|
Income tax
expense
|
(121.5)
|
|
(103.4)
|
|
Net operating
income
|
429.3
|
|
356.1
|
|
Non-operating
items:
|
|
|
|
|
Net realized
investment losses from sales, impairments and change in allowance
for credit losses
|
(72.7)
|
|
(62.7)
|
|
Net change in market
value of investments recognized in earnings
|
22.8
|
|
(6.3)
|
|
Changes in fair value
of embedded derivative liabilities and market risk
benefits
|
24.7
|
|
(29.9)
|
|
Fair value changes
related to the agent deferred compensation plan
|
6.6
|
|
(3.5)
|
|
Other
|
(13.9)
|
|
(.3)
|
|
Non-operating loss
before taxes
|
(32.5)
|
|
(102.7)
|
|
Income tax benefit on non-operating loss
|
7.2
|
|
23.1
|
|
Net non-operating
loss
|
(25.3)
|
|
(79.6)
|
|
Net income
|
$
404.0
|
|
$
276.5
|
|
|
|
|
|
|
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):
|
|
|
1Q22
|
|
2Q22
|
|
3Q22
|
|
4Q22
|
|
Consolidated capital,
excluding accumulated other comprehensive
|
|
|
|
|
|
|
|
|
income (loss) and net
operating loss carryforwards
|
|
|
|
|
|
|
|
|
(a non-GAAP financial
measure)
|
$
3,141.7
|
|
$
3,329.0
|
|
$
3,510.3
|
|
$
3,557.1
|
|
Net operating loss
carryforwards
|
238.2
|
|
214.7
|
|
190.9
|
|
169.0
|
|
Accumulated other
comprehensive loss
|
(561.5)
|
|
(1,415.8)
|
|
(1,837.8)
|
|
(1,957.3)
|
|
Common shareholders'
equity
|
$
2,818.4
|
|
$
2,127.9
|
|
$
1,863.4
|
|
$
1,768.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q23
|
|
2Q23
|
|
3Q23
|
|
4Q23
|
|
Consolidated capital,
excluding accumulated other comprehensive
|
|
|
|
|
|
|
|
|
income (loss) and net
operating loss carryforwards
|
|
|
|
|
|
|
|
|
(a non-GAAP financial
measure)
|
$
3,543.8
|
|
$
3,603.0
|
|
$
3,744.2
|
|
$
3,712.8
|
|
Net operating loss
carryforwards
|
152.4
|
|
126.3
|
|
102.6
|
|
79.6
|
|
Accumulated other
comprehensive loss
|
(1,664.4)
|
|
(1,733.5)
|
|
(1,956.7)
|
|
(1,576.8)
|
|
Common shareholders'
equity
|
$
2,031.8
|
|
$
1,995.8
|
|
$
1,890.1
|
|
$
2,215.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q24
|
|
2Q24
|
|
3Q24
|
|
4Q24
|
|
Consolidated capital,
excluding accumulated other comprehensive
|
|
|
|
|
|
|
|
|
income (loss) and net
operating loss carryforwards
|
|
|
|
|
|
|
|
|
(a non-GAAP financial
measure)
|
$
3,536.8
|
|
$
3,596.7
|
|
$
3,529.9
|
|
$
3,793.2
|
|
Net operating loss
carryforwards
|
311.2
|
|
296.5
|
|
273.9
|
|
76.6
|
|
Accumulated other
comprehensive loss
|
(1,480.3)
|
|
(1,464.3)
|
|
(1,116.0)
|
|
(1,371.4)
|
|
Common shareholders'
equity
|
$
2,367.7
|
|
$
2,428.9
|
|
$
2,687.8
|
|
$
2,498.4
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
Trailing four quarter
average
|
|
|
|
4Q24
|
|
4Q23
|
|
Consolidated capital,
excluding accumulated other comprehensive
|
|
|
|
|
income (loss) and net
operating loss carryforwards
|
|
|
|
|
(a non-GAAP financial
measure)
|
$
3,604.1
|
|
$
3,631.5
|
|
Net operating loss
carryforwards
|
240.0
|
|
126.4
|
|
Accumulated other
comprehensive loss
|
(1,383.7)
|
|
(1,780.4)
|
|
Common shareholders'
equity
|
$
2,460.4
|
|
$
1,977.5
|
|
(6)
|
The tables below
summarize the financial impact of significant items on our net
operating income. Management believes that identifying the
impact of these items enhances the understanding of our operating
results (dollars in millions, except per share data).
|
|
|
Year ended
|
|
|
December 31,
2024
|
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
274.2
|
|
$
(36.2)
|
(a)
|
$
238.0
|
|
Health
margin
|
|
516.8
|
|
8.2
|
(a)
|
525.0
|
|
Life margin
|
|
249.0
|
|
0.7
|
(a)
|
249.7
|
|
Total insurance product
margin
|
|
1,040.0
|
|
(27.3)
|
|
1,012.7
|
|
Allocated
expenses
|
|
(615.3)
|
|
—
|
|
(615.3)
|
|
Income from insurance
products
|
|
424.7
|
|
(27.3)
|
|
397.4
|
|
Fee income
|
|
30.0
|
|
—
|
|
30.0
|
|
Investment income not
allocated to product lines
|
|
167.9
|
|
—
|
|
167.9
|
|
Expenses not allocated
to product lines
|
|
(71.8)
|
|
2.9
|
(b)
|
(68.9)
|
|
Operating earnings
before taxes
|
|
550.8
|
|
(24.4)
|
|
526.4
|
|
Income tax (expense)
benefit on operating income
|
|
(121.5)
|
|
5.6
|
|
(115.9)
|
|
Net operating
income
|
|
$
429.3
|
|
$
(18.8)
|
|
$
410.5
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
3.97
|
|
$
(0.17)
|
|
$
3.80
|
|
___________
|
|
(a)
|
Comprised of $27.3
million of the net favorable impact arising from our comprehensive
annual actuarial review.
|
|
(b)
|
Comprised of $2.9
million of the unfavorable impact related to a fixed asset
impairment.
|
|
|
Three months
ended
|
|
|
December 31,
2024
|
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
55.0
|
|
$
—
|
|
$
55.0
|
|
Health
margin
|
|
130.1
|
|
3.9
|
(a)
|
134.0
|
|
Life margin
|
|
68.0
|
|
—
|
|
68.0
|
|
Total insurance product
margin
|
|
253.1
|
|
3.9
|
|
257.0
|
|
Allocated
expenses
|
|
(146.1)
|
|
—
|
|
(146.1)
|
|
Income from insurance
products
|
|
107.0
|
|
3.9
|
|
110.9
|
|
Fee income
|
|
20.6
|
|
—
|
|
20.6
|
|
Investment income not
allocated to product lines
|
|
65.3
|
|
—
|
|
65.3
|
|
Expenses not allocated
to product lines
|
|
(19.0)
|
|
—
|
|
(19.0)
|
|
Operating earnings
before taxes
|
|
173.9
|
|
3.9
|
|
177.8
|
|
Income tax (expense)
benefit on operating income
|
|
(35.9)
|
|
(0.8)
|
|
(36.7)
|
|
Net operating
income
|
|
$
138.0
|
|
$
3.1
|
|
$
141.1
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
1.31
|
|
$
0.03
|
|
$
1.34
|
|
___________
|
|
(a)
|
Comprised of $3.9
million of the unfavorable impact arising from our comprehensive
annual actuarial review.
|
|
|
Three months
ended
|
|
|
September 30,
2024
|
|
|
Actual
results
|
|
Significant items
(a)
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
91.1
|
|
$
(36.2)
|
(b)
|
$
54.9
|
|
Health
margin
|
|
127.8
|
|
4.3
|
(b)
|
132.1
|
|
Life margin
|
|
63.3
|
|
0.7
|
(b)
|
64.0
|
|
Total insurance product
margin
|
|
282.2
|
|
(31.2)
|
|
251.0
|
|
Allocated
expenses
|
|
(153.0)
|
|
—
|
|
(153.0)
|
|
Income from insurance
products
|
|
129.2
|
|
(31.2)
|
|
98.0
|
|
Fee income
|
|
(2.7)
|
|
—
|
|
(2.7)
|
|
Investment income not
allocated to product lines
|
|
45.5
|
|
—
|
|
45.5
|
|
Expenses not allocated
to product lines
|
|
(18.5)
|
|
2.9
|
(c)
|
(15.6)
|
|
Operating earnings
before taxes
|
|
153.5
|
|
(28.3)
|
|
125.2
|
|
Income tax (expense)
benefit on operating income
|
|
(34.3)
|
|
6.4
|
|
(27.9)
|
|
Net operating
income
|
|
$
119.2
|
|
$
(21.9)
|
|
$
97.3
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
1.11
|
|
$
(0.19)
|
|
$
0.92
|
|
___________
|
|
(a)
|
Significant items
impacting the health margin were revised from $8.2 million reported
at September 30, 2024 to $4.3 million.
|
|
(b)
|
Comprised of $31.2
million of net favorable impact arising from our comprehensive
annual actuarial review.
|
|
(c)
|
Comprised of $2.9
million of the unfavorable impact related to a fixed asset
impairment.
|
|
|
Year ended
|
|
|
December 31,
2023
|
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
235.0
|
|
$
(12.9)
|
(a)
|
$
222.1
|
|
Health
margin
|
|
494.3
|
|
(22.3)
|
(a)
|
472.0
|
|
Life margin
|
|
229.7
|
|
1.3
|
(a)
|
231.0
|
|
Total insurance product
margin
|
|
959.0
|
|
(33.9)
|
|
925.1
|
|
Allocated
expenses
|
|
(599.0)
|
|
—
|
|
(599.0)
|
|
Income from insurance
products
|
|
360.0
|
|
(33.9)
|
|
326.1
|
|
Fee income
|
|
31.0
|
|
—
|
|
31.0
|
|
Investment income not
allocated to product lines
|
|
120.2
|
|
—
|
|
120.2
|
|
Expenses not allocated
to product lines
|
|
(51.7)
|
|
(21.7)
|
(b)
|
(73.4)
|
|
Operating earnings
before taxes
|
|
459.5
|
|
(55.6)
|
|
403.9
|
|
Income tax (expense)
benefit on operating income
|
|
(103.4)
|
|
12.3
|
|
(91.1)
|
|
Net operating
income
|
|
$
356.1
|
|
$
(43.3)
|
|
$
312.8
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
3.09
|
|
$
(0.37)
|
|
$
2.72
|
|
___________
|
|
(a)
|
Comprised of $33.9
million of the net favorable impact arising from our comprehensive
annual actuarial review.
|
|
(b)
|
Comprised of $21.7
million of legal recoveries, net of expenses and increased legal
accruals.
|
|
|
Three months
ended
|
|
|
December 31,
2023
|
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
63.6
|
|
$
(12.9)
|
(a)
|
$
50.7
|
|
Health
margin
|
|
146.4
|
|
(22.3)
|
(a)
|
124.1
|
|
Life margin
|
|
64.6
|
|
1.3
|
(a)
|
65.9
|
|
Total insurance product
margin
|
|
274.6
|
|
(33.9)
|
|
240.7
|
|
Allocated
expenses
|
|
(138.8)
|
|
—
|
|
(138.8)
|
|
Income from insurance
products
|
|
135.8
|
|
(33.9)
|
|
101.9
|
|
Fee income
|
|
17.8
|
|
—
|
|
17.8
|
|
Investment income not
allocated to product lines
|
|
38.3
|
|
—
|
|
38.3
|
|
Expenses not allocated
to product lines
|
|
(19.8)
|
|
—
|
|
(19.8)
|
|
Operating earnings
before taxes
|
|
172.1
|
|
(33.9)
|
|
138.2
|
|
Income tax (expense)
benefit on operating income
|
|
(38.2)
|
|
7.5
|
|
(30.7)
|
|
Net operating
income
|
|
$
133.9
|
|
$
(26.4)
|
|
$
107.5
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
1.18
|
|
$
(0.23)
|
|
$
0.95
|
|
___________
|
|
(a)
|
Comprised of $33.9
million of the net favorable impact arising from our comprehensive
annual actuarial review.
|
|
|
Three months
ended
|
|
|
September 30,
2023
|
|
|
Actual
results
|
|
Significant
items
|
|
Excluding
significant
items
|
|
Insurance product
margin
|
|
|
|
|
|
|
|
Annuity
margin
|
|
$
57.0
|
|
$
—
|
|
$
57.0
|
|
Health
margin
|
|
123.2
|
|
—
|
|
123.2
|
|
Life margin
|
|
59.8
|
|
—
|
|
59.8
|
|
Total insurance product
margin
|
|
240.0
|
|
—
|
|
240.0
|
|
Allocated
expenses
|
|
(153.2)
|
|
—
|
|
(153.2)
|
|
Income from insurance
products
|
|
86.8
|
|
—
|
|
86.8
|
|
Fee income
|
|
(2.9)
|
|
—
|
|
(2.9)
|
|
Investment income not
allocated to product lines
|
|
38.4
|
|
—
|
|
38.4
|
|
Expenses not allocated
to product lines
|
|
7.5
|
|
(21.7)
|
(a)
|
(14.2)
|
|
Operating earnings
before taxes
|
|
129.8
|
|
(21.7)
|
|
108.1
|
|
Income tax (expense)
benefit on operating income
|
|
(28.5)
|
|
4.8
|
|
(23.7)
|
|
Net operating
income
|
|
$
101.3
|
|
$
(16.9)
|
|
$
84.4
|
|
|
|
|
|
|
|
|
Net operating income
per diluted share
|
|
$
0.88
|
|
$
(0.14)
|
|
$
0.74
|
|
___________
|
|
(a)
|
Comprised of $21.7
million of legal recoveries, net of expenses and increased legal
accruals.
|
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SOURCE CNO Financial Group
