Key Highlights

  • Net income was $161 million, or $1.71 per diluted share, compared with $23.1 million, or $0.24, a year earlier.
  • Net Operating Income totaled $179.1 million, or $1.90 per diluted share, up 47% per share.
  • The full-year 2026 operating EPS guidance now stands at $5.05 to $5.15, with the midpoint up 9%.
  • Operating Return on Equity was 14.1% excluding significant items.
  • The company bought back $60.0 million of common stock at an average price of $54.52 per share.

Operating Earnings climb on stronger Investment income

CNO Financial Group (NYSE:CNO) is an insurance Holding Company based in Carmel, Indiana, that sells annuity, health and life products aimed mainly at middle-income households. It reported results for the quarter ended September 30, 2026 on October 29, 2026.

Net operating income reached $179.1 million, or $1.90 per diluted share, up from $127.2 million, or $1.29, in the prior year quarter.

Net income came in at $161.1 million, or $1.71 per diluted share, against $23.1 million, or $0.24, a year earlier. That earlier period included a $96.7 million Goodwill and other asset impairment.

Actuarial review and one-time items shape the quarter

Significant items linked to the comprehensive annual actuarial review had a net favorable effect of $44.9 million, or $0.48 per diluted share, on both Net Income and net operating income. In the prior year quarter the figure was $32.2 million, or $0.33.

On a calculated basis, excluding those items, operating EPS would have been about $1.42, which still exceeds the $0.96 implied for last year's quarter.

Non-operating results included a $22.1 million charge for a valuation allowance on deferred tax Assets and $10.1 million of expense for the TechMod technology initiative.

Insurance margins and investment income Supply the gain

Income from insurance products rose 15% to $172.0 million from $149.5 million. Annuity Margin was $87.9 million, compared with $72.9 million, life margin reached $96.0 million versus $70.6 million, and health margin came to $149.1 million against $157.0 million.

Investment income not allocated to product lines jumped 72% to $68.1 million, or $0.72 per share. Net investment income from general account assets was $441.5 million, compared with $382.9 million, an increase of about 15% on a calculated basis.

Insurance policy income grew to $688.2 million from $658.4 million. Total revenues were $1.086 billion, down from $1.189 billion a year earlier.

New sales, Reinsurance and Capital position

Total new annualized premiums increased for a 17th consecutive quarter, and asset accumulation products kept expanding.

On October 1, 2026, the company completed its third reinsurance transaction with its wholly owned Bermuda affiliate, covering about $270 million of inforce graded benefit life Statutory Reserves from Colonial Penn. CEO Gary Bhojwani said the deal supports the company's focus on serving middle-income households.

The consolidated statutory risk-based capital ratio was estimated at 374%. The company repurchased 1.1 million shares for $60.0 million and still holds authority for another $240.4 million.

Guidance and Book Value draw attention

The 2026 operating EPS range of $5.05 to $5.15 assumes an effective tax rate near 20.5% and free Cash Flow of $220 million to $240 million. Management expects 2026 operating ROE to exceed its 2027 target of 12.0%, and it plans to set new long-term targets in February 2027.

Book value per share was $25.34, down from $27.92 at December 31, 2025, reflecting a larger accumulated other comprehensive loss. Book value per diluted share excluding that loss was $41.29, up 8%. Investors may watch whether sales momentum holds and how capital gets deployed within the 360% to 390% risk-based capital target range.