Download PDF

1. Company Snapshot

1.a. Company Description

CNO Financial Group, Inc., through its subsidiaries, develops, markets, and administers health insurance, annuity, individual life insurance, and other insurance products for senior and middle-income markets in the United States.It offers Medicare supplement, supplemental health, and long-term care insurance policies; life insurance; and annuities, as well as Medicare advantage plans to individuals through phone, online, mail, and face-to-face.The company also focuses on worksite and group sales for businesses, associations, and other membership groups by interacting with customers at their place of employment.


In addition, it provides fixed index annuities; fixed interest annuities, including fixed rate single and flexible premium deferred annuities; single premium immediate annuities; supplemental health products, such as specified disease, accident, and hospital indemnity products; and long-term care plans primarily to retirees and older self-employed individuals in the middle-income market.Further, the company offers universal life and other interest-sensitive life products; and traditional life policies that include whole life, graded benefit life, term life, and single premium whole life products, as well as graded benefit life insurance products.CNO Financial Group, Inc.


markets its products under the Bankers Life, Washington National, and Colonial Penn brand names.The company sells its products through agents, independent producers, and direct marketing.CNO Financial Group, Inc.


was founded in 1979 and is headquartered in Carmel, Indiana.

Show Full description

1.b. Last Insights on CNO

CNO Financial Group's recent performance was driven by strong Q4 2025 earnings, with quarterly earnings of $1.47 per share beating estimates. The company's sales momentum, improving profitability, and strong capital position contributed to its success. CNO's growth is fueled by rising premiums, tech-driven sales gains, and strong capital returns. The company achieved and exceeded its 2025 guidance metrics, including improving operating return. A quarterly dividend of $0.17 per share was declared, and the company has a solid outlook, with a Zacks Rank #2 (Buy) rating.

1.c. Company Highlights

2. CNO Financial Delivers Strong Quarterly Results

CNO Financial reported an impressive quarterly performance, with operating earnings per share (EPS) excluding significant items growing 10% to $1.47, beating analyst estimates of $1.2. Revenue growth was robust, driven by record production across both divisions and multiple product lines, with total new annualized premium up 15% for the full year. The company's operating return on equity (ROE) excluding significant items improved to 11.4%, reflecting significant progress toward its 12% target ROE in 2027. The results demonstrate the company's ability to deliver sustained profitable growth, with a strong focus on the underserved middle-income market.

Publication Date: Feb -14

📋 Highlights

Segment Performance

The Consumer division delivered an exceptional year, capping off 13 consecutive quarters of sales growth. The Worksite Division also performed strongly, with 2025 representing the best production year ever for the worksite business, with record full-year insurance sales up 15%. The company's agent count is expected to grow in 2026, with a focus on productivity rather than agent count, which is expected to drive growth.

Capital Management and Guidance

CNO Financial deployed $320 million of excess capital on share repurchases in 2025, up 14%, and ended the year with a robust total capital position, with a consolidated risk-based capital ratio of 380%. The company expects to operate with a risk-based capital ratio in the range of 360% to 390% in 2026. Guidance for 2026 is aligned with the company's long-term trajectory, with operating EPS expected to be between $4.25 and $4.45, representing an 8% increase at the midpoint from the 2025 result.

Valuation

Using the current stock price and the reported EPS, the Price-to-Earnings (P/E) ratio is 32.34, and the Price-to-Book (P/B) ratio is 1.59. These valuation metrics suggest that the market is pricing in a certain level of growth and profitability for CNO Financial. The Dividend Yield is 1.56%, which may be attractive to income investors. With the company's strong performance and guidance, it remains to be seen whether the current valuation is justified.

3. NewsRoom

Card image cap

Here's Why You Should Add CNO Financial to Your Portfolio Now

Mar -10

Source: zacks.com

Card image cap

Victory Capital Management Inc. Has $24.56 Million Stock Holdings in CNO Financial Group, Inc. $CNO

Mar -10

Source: defenseworld.net

Card image cap

Bankers Life Introduces Enhanced Death Benefit Rider for Guaranteed Lifetime Income Annuity and Guaranteed Lifetime Income Annuity Plus

Mar -04

Source: prnewswire.com

Card image cap

CNO Financial Group Recognizes Associate Stacy Muentzer Oakey as Volunteer of the Year, Donates to 12 Nonprofits through Annual Invested in Giving Back® Program

Feb -23

Source: prnewswire.com

Card image cap

Matthew Zimpfer Sells 23,570 Shares of CNO Financial Group (NYSE:CNO) Stock

Feb -20

Source: defenseworld.net

Card image cap

Matthew Zimpfer Sells 33,800 Shares of CNO Financial Group (NYSE:CNO) Stock

Feb -20

Source: defenseworld.net

Card image cap

Retirement Confidence Among Middle-Income Americans Declines Amid Economic Uncertainty

Feb -18

Source: prnewswire.com

Card image cap

CNO Financial Group (NYSE:CNO) General Counsel Sells $1,329,542.10 in Stock

Feb -15

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.06%)

6. Segments

Health

Expected Growth: 4.83%

CNO Financial Group's Health segment growth of 4.83% is driven by increasing demand for supplemental health insurance, expansion of Medicare Advantage offerings, and strategic partnerships. Additionally, the company's focus on digital transformation, improved customer engagement, and cost savings initiatives have contributed to the growth.

Life

Expected Growth: 4.77%

CNO Financial Group's 4.77% growth in Life segment is driven by increasing demand for whole life insurance, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on middle-income markets, product diversification, and effective expense management have contributed to this growth.

Annuity

Expected Growth: 5.4%

The 5.4% growth of the annuity from CNO Financial Group, Inc. is driven by increasing demand for retirement income solutions, expansion of distribution channels, and competitive product offerings. Additionally, the company's focus on digital transformation and cost savings initiatives have improved operational efficiency, contributing to the growth.

Investments

Expected Growth: 5.4%

CNO Financial Group's 5.4% growth is driven by increasing demand for life insurance and annuity products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and effective risk management have contributed to its growth momentum.

Fee and Other

Expected Growth: 7.42%

The 7.42% growth in Fee and Other revenue from CNO Financial Group, Inc. is driven by increasing demand for advisory services, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on digital transformation and process efficiencies has led to higher margins and revenue growth.

Reconciling Items

Expected Growth: 4.6%

CNO Financial Group's 4.6% growth is driven by increasing demand for life insurance and annuity products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, cost savings initiatives, and effective capital management have contributed to its growth momentum.

7. Detailed Products

Bankers Life

A leading provider of insurance and retirement products to the middle-income market, focusing on the senior market

Washington National

A leading provider of supplemental health and life insurance products to the middle-income market

Colonial Penn

A leading provider of life insurance and other insurance products directly to consumers

8. CNO Financial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

CNO Financial Group, Inc. operates in the insurance industry, where substitutes are limited. However, the company faces competition from other insurance providers, which can be considered as substitutes.

Bargaining Power Of Customers

CNO Financial Group, Inc. has a large customer base, which gives it bargaining power over its customers. However, the company's customers are individuals and small businesses, which have limited bargaining power.

Bargaining Power Of Suppliers

CNO Financial Group, Inc. has a diversified supplier base, which reduces the bargaining power of its suppliers. The company's suppliers are primarily reinsurance companies and other financial institutions.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and capital requirements. This makes it difficult for new entrants to enter the market, reducing the threat of new entrants.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. CNO Financial Group, Inc. faces intense competition from other insurance providers, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.20%
Debt Cost 7.26%
Equity Weight 34.80%
Equity Cost 9.18%
WACC 7.93%
Leverage 187.34%

11. Quality Control: CNO Financial Group, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Jackson Financial

A-Score: 6.6/10

Value: 8.2

Growth: 4.3

Quality: 7.8

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
CNO Financial Group

A-Score: 6.0/10

Value: 6.6

Growth: 6.4

Quality: 4.4

Yield: 4.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Primerica

A-Score: 5.9/10

Value: 5.4

Growth: 7.2

Quality: 6.8

Yield: 3.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Unum

A-Score: 5.8/10

Value: 5.7

Growth: 5.6

Quality: 5.1

Yield: 5.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
F&G Annuities & Life

A-Score: 5.7/10

Value: 8.8

Growth: 8.6

Quality: 5.9

Yield: 5.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
American Equity

A-Score: 5.4/10

Value: 9.5

Growth: 7.3

Quality: 6.2

Yield: 0.0

Momentum: 6.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.74$

Current Price

39.74$

Potential

-0.00%

Expected Cash-Flows