CNO Financial Group Reports $13.7 Million Net Income in Q1 2025, Down from $112.3 Million

CNO Financial Group, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $13.7 million, a significant decrease from $112.3 million in the same period last year. This decline is attributed to a combination of lower investment income and increased losses from investments. Total revenues for the quarter were $1.004 billion, down from $1.157 billion in the prior year, primarily driven by a decrease in net investment income, which rose to $375.1 million from $301.9 million, but was offset by realized investment losses of $6.8 million compared to gains of $7.8 million in the previous year.

In terms of operational metrics, CNO's insurance policy income increased to $650.7 million from $628.4 million year-over-year. However, the company experienced a rise in insurance policy benefits, which totaled $580.1 million, down from $636.6 million in the prior year. The overall insurance product margin improved to $248.9 million from $229.6 million, reflecting growth in the annuity and health segments. The annuity margin increased to $54.5 million, while the health margin rose to $126.2 million, indicating strong performance in these areas.

CNO Financial also made strategic moves during the quarter, repurchasing 2.5 million shares of common stock for $99.9 million, with a remaining repurchase authority of $640.4 million. The company declared dividends totaling $16.4 million, maintaining a quarterly dividend of $0.16 per share, which is set to increase to $0.17 in May 2025. The company’s total assets decreased to $37.436 billion from $37.853 billion at the end of 2024, with total liabilities also declining to $34.906 billion from $35.354 billion.

Looking ahead, CNO Financial reaffirmed its guidance for 2025, expecting operating earnings per diluted share to range between $3.70 and $3.90. The company anticipates an improvement in net investment income not allocated to product lines, driven by higher returns on alternative investments. CNO also plans to initiate a three-year technology modernization project, expected to cost approximately $170 million, which will be expensed as incurred. The company remains focused on maintaining a strong capital position, with a consolidated risk-based capital ratio of 379% as of March 31, 2025, exceeding its target of 375%.