CNO Financial Group reported a net income of $13.7 million, or $0.13 per diluted share, for the first quarter of 2025, down from $112.3 million, or $1.01 per diluted share, in the first quarter of 2024.
The company said that non-economic accounting impacts from market volatility reduced net income in the current quarter and had increased it in the same period last year.
Net operating income, which excludes non-economic accounting impacts, rose to $81.1 million, or $0.79 per diluted share, in the first quarter of 2025, compared to $57.5 million, or $0.52 per diluted share, in the first quarter of 2024.
CNO said that significant items positively impacted both net income and net operating income by $5.3 million, or $0.05 per diluted share, during the quarter.
Comparatively, the group posted higher earnings for 2024, driven by sustained sales growth, increased investment income, and disciplined expense management.
CNO also returned a record $349.3 million to shareholders in 2024, marking a 50% increase from the previous year.
"Our first quarter results enable us to reaffirm our full-year 2025 and three-year return on equity guidance," said Gary C. Bhojwani (pictured above), chief executive officer. "CNO is off to a solid start to the year, building on our strong 2024 performance.”
CNO reported net investment losses of $13.2 million in the first quarter of 2025, which included a $9.6 million unfavorable change in the allowance for credit losses. In comparison, net investment losses were $4.6 million in the first quarter of 2024, including a $1.5 million favorable change in the allowance for credit losses.
The company recognized an increase in earnings of $6.4 million during the first quarter of 2025 from changes in the market value of investments, compared to an increase of $12.4 million during the same quarter in 2024.
CNO also reported a decrease in earnings of $79.7 million in the first quarter of 2025, compared to an increase of $64.0 million in the first quarter of 2024, stemming from changes in the estimated fair value of embedded derivative liabilities and market risk benefits related to its fixed indexed annuities.
These results reflect the impact of market interest rates and equity market movements used to assess the fair values of embedded derivatives and market risk benefits.
The company’s US-based insurance subsidiaries had an estimated consolidated statutory risk-based capital ratio of 379% as of March 31, 2025. This reflects estimated statutory operating earnings of $13.5 million and the payment of $8.9 million in net insurance company dividends to the holding company during the first quarter.
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