CNO Financial Group Reports $37.7 Million Net Income in Q1 2026

CNO Financial Group, Inc. reported a net income of $37.7 million for the first quarter of 2026, a significant increase from $21.5 million in the same period last year. This translates to earnings per diluted share of $0.39, compared to $0.21 in the prior year. Total revenues for the quarter reached $1.03 billion, up from $1.00 billion in the first quarter of 2025, driven primarily by an increase in insurance policy income, which rose to $673.4 million from $650.7 million. Net investment income also saw a rise, totaling $395.0 million, compared to $375.1 million in the previous year.

The company’s total assets increased to $38.96 billion as of March 31, 2026, up from $38.79 billion at the end of 2025. This growth was supported by a rise in cash and cash equivalents, which increased to $1.13 billion from $956.1 million. However, total shareholders' equity decreased to $2.50 billion from $2.64 billion, primarily due to an increase in accumulated other comprehensive loss, which rose to $1.22 billion from $1.12 billion. The company repurchased 1.4 million shares for $60 million during the quarter, leaving a remaining repurchase authority of $360.4 million.

CNO Financial Group has made strategic moves to enhance its market position, including the exit from its fee services business within the Worksite Division, which is expected to be substantially completed by mid-2026. This decision is anticipated to reduce annual fee revenue by approximately $30 million but is expected to increase annual pre-tax income by about $20 million. The company continues to focus on its core insurance business, targeting middle-income pre-retiree and retired Americans.

Operationally, the company reported an insurance product margin of $256.9 million for the first quarter of 2026, an increase from $248.9 million in the same period last year. The health segment contributed significantly to this margin, with a total health margin of $132.6 million, up from $126.2 million. The annuity and life segments also reported margins of $58.5 million and $65.8 million, respectively. The company’s effective tax rate for the quarter was 22.0%, slightly lower than the 22.5% reported in the previous year.

Looking ahead, CNO Financial Group reaffirmed its guidance for operating earnings per diluted share in the range of $4.25 to $4.45 for the year, excluding significant items. The company expects to maintain a consolidated risk-based capital ratio between 360% and 390% and anticipates free cash flows of $200 million to $250 million. The ongoing TechMod initiative, aimed at modernizing technology, is expected to incur costs of approximately $170 million over three years, with $76 million anticipated in 2026.