CNO Financial Group (NYSE:CNO), a provider of life and health insurance, released its second quarter results on July 28, 2025, reporting both GAAP revenue and non-GAAP earnings per share that surpassed analyst forecasts. The company posted GAAP revenue of $1,151.5 million, far above the estimated $747.81 million, and non-GAAP earnings per share of $0.87, just beating the expected $0.86. While results marked robust new premiums and continued sales growth across its primary insurance lines, Net income (GAAP) and net operating income (non-GAAP) each fell compared to a strong prior-year period (Q2 2024). Overall, The quarter demonstrated ongoing momentum in premium growth and capital management but included declines in headline profit figures (GAAP net income) and modest fee income.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.87 | $0.86 | $1.05 | (17.1%) |
| EPS (GAAP) | $0.91 | $1.06 | (14.2%) | |
| Revenue (GAAP) | $1,151.5 million | $747.81 million | $1,066.2 million | 8.0% |
| Book Value per Share | $25.92 | $22.80 | 13.7% | |
| Operating Return on Equity | 11.8% | 11.2% | 0.6 pp |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Key Success Factors
CNO Financial Group operates as an insurer focused on middle-income Americans, offering life insurance, health products, annuities (guaranteed income contracts), and retirement solutions. It serves customers through its Consumer Division for individuals and Worksite Division for employers and employees, distributing products via its exclusive and independent agent network as well as direct marketing.
The company’s business depends heavily on the effectiveness of its agent and distribution strategy, prudent investment management, adherence to insurance regulations, and its ability to introduce products that appeal to its core demographic. Continued growth in agent recruitment, sales, and the roll-out of digitally enabled processes are current business focuses. Critical success factors include maintaining investment grade portfolios, operational efficiency, and staying ahead of regulatory changes.
Quarterly Performance and Notable Developments
The quarter showed strong top-line performance, with GAAP revenue of $1,151.5 million compared to $1,066.2 million in Q2 2024.
New annualized premiums (measuring the annualized value of new policy sales) grew 17% overall, driven by a 22% rise in new life insurance premiums compared to Q2 2024 and an 11% increase in new health insurance premiums compared to Q2 2024. Both Consumer and Worksite divisions delivered double-digit gains in new annualized premiums. In the Consumer Division, agent headcount grew for the ninth consecutive quarter as of Q1 2025, while the Worksite Division saw an 8% increase in producing agent count as of Q1 2025. The company highlighted that more than a third of consumer sales now originate from digital channels rather than traditional television advertising, with web and digital accounting for over 36% of direct-to-consumer sales as of Q1 2025.
Despite these gains, Net income (GAAP) and net operating income (non-GAAP) declined compared to an abnormally strong Q2 2024. Non-GAAP earnings per share fell 17%, and GAAP net income decreased 21.1% compared to Q2 2024.
Management attributed these declines to elevated prior-year comparables and non-economic accounting effects tied to market volatility. Fee income from the company’s brokerage and advisory business remained unchanged at $0.8 million. Investment income not tied to product lines decreased by 25% year over year, while expenses not allocated to product lines rose 45% year-over-year.
Book value per share—a measure of net asset value per share—was $25.92 at June 30, 2025, compared to $22.80 at June 30, 2024. As the company bought back 2.6 million shares for a total of $100.0 million. The company’s statutory risk-based capital (RBC) ratio, a key regulatory measure indicating financial stability, stood at 378%, above its target threshold. Dividend payments totaled $16.7 million.
Product innovation continues to play a central role. Notably, indexed annuity products with lifetime income guarantees and new worksite offerings, such as Optavise Clear—a package integrating benefits advocacy, education, and communications for employer clients—contributed to growth. Tech enhancements, including accelerated underwriting for simplified life insurance, helped drive operational gains.
The company’s investment portfolio held $25.2 billion in fixed maturities as of June 30, 2025, 96% of which were investment grade as of March 31, 2025. However, unrealized losses (GAAP) stood at $2.3 billion. The company’s return on equity—a metric showing how efficiently it generates profit from shareholder capital—was 11.9% for the trailing four quarters ended June 30, 2025, but improved on an operating (non-GAAP) basis to 11.8 %.
Outlook and What to Watch Ahead
Management reaffirmed its outlook for fiscal 2025, reiterating targets to improve operating return on equity by 150 basis points from FY2024 through FY2027. It expects to drive further expansion in profitability through balanced business growth, careful investment management, and expense discipline.
No updated quantitative financial guidance was provided for the coming quarter. Leadership noted that economic and market conditions have grown “more volatile” since early in the year, highlighting both the possibility of downside risks and the potential for continued positive growth in favorable scenarios. Investors should monitor sustainability of new premium growth, agent headcount trends, fee income progress, and the impact of interest rate and capital market fluctuations on both investment returns and reported unrealized losses.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
