CNO Financial Group, Inc. posted higher earnings for 2024, driven by sustained sales growth, increased investment income, and disciplined expense management.
The company also returned a record $349.3 million to shareholders, marking a 50% increase from the previous year.
For the fourth quarter of 2024, net income reached $166.1 million, or $1.58 per diluted share, an increase from $36.3 million, or $0.32 per diluted share, in the same period of 2023.
The full-year net income for 2024 was $404.0 million, or $3.74 per diluted share, compared to $276.5 million, or $2.40 per diluted share, in 2023.
Net operating income, which excludes certain accounting impacts, stood at $138.0 million, or $1.31 per diluted share, for the fourth quarter of 2024, up from $133.9 million, or $1.18 per diluted share, in the prior-year quarter.
For the full year, net operating income was $429.3 million, or $3.97 per diluted share, compared to $356.1 million, or $3.09 per diluted share, in 2023.
The company noted that non-economic accounting factors contributed to higher net income in 2024 while reducing net income in 2023.
CNO Financial reported total new annualized premiums (NAP) increased by 7% for the year, with the Worksite Division seeing a 16% rise and the Consumer Division a 5% increase. Annuity collected premiums grew by 13%, while client assets in brokerage and advisory increased by 28%.
For the fourth quarter, total NAP was up 13%, driven by a 23% rise in the Worksite Division and an 11% increase in the Consumer Division. Medicare Supplement NAP rose by 44%, and submitted Medicare Advantage applications increased by 39%.
The company returned $349.3 million to shareholders in 2024, marking a 50% increase from 2023. In the fourth quarter alone, shareholder returns amounted to $108.0 million.
"CNO delivered an exceptional quarter and full-year financial performance, demonstrating our ability to grow the franchise while also growing earnings and improving profitability," said Gary C. Bhojwani, CNO’s chief executive officer.
Bhojwani said that this achievement is supported by 10 consecutive quarters of sales growth. He said that excluding significant items, operating earnings per share rose by 41% for the quarter and 40% for the year. He attributed the earnings growth to improved underwriting margins, higher net investment income, and cost management.
Bhojwani also emphasized the company’s financial position, pointing to a robust capital structure and free cash flow generation. He indicated that the company remains positioned for continued growth in 2025.
CNO’s return on equity for 2024 was 16.4%, compared to 14.0% in 2023. Operating return on equity, excluding significant items, was 11.4% in 2024, up from 8.6% in 2023.
The company ended 2024 with a book value per diluted share of $24.59, while book value per diluted share, excluding accumulated other comprehensive loss, stood at $37.19, reflecting a 10% increase.
CNO Financial signaled confidence in its growth strategy heading into 2025, citing favorable macroeconomic and demographic trends. With its focus on profitable expansion and return on equity improvement, the company anticipates continued momentum in its core businesses.
What are your thoughts on CNO Financial’s performance? Do you think the company’s growth trends will continue in 2025? Share your comments below.
