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CNO Financial (CNO)
NYSE:CNO
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CNO Financial (CNO) AI Stock Analysis

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CNO

CNO Financial

(NYSE:CNO)

Rating:73Outperform
Price Target:
$42.00
▲(3.93% Upside)
CNO Financial's overall stock score reflects strong earnings performance and strategic execution, offset by high leverage and mixed technical indicators. The company's valuation is fair, and recent corporate events have positively influenced investor sentiment.
Positive Factors
Business Growth
New business growth remained solid and underwriting margins were stable.
Cash Flow Management
CNO's buybacks significantly exceeded estimates, indicating strong cash flow management.
Demand
Total Life / Health NAP rose significantly, reflecting robust demand in these segments.
Earnings
CNO's operating EPS exceeded expectations, indicating strong financial performance.
Negative Factors
Cash Flow Yield
CNO currently trades at an estimated 2025 FCF yield of ~6.5%, which is modestly lower/less attractive versus the Life peer median of ~6.9%.
Valuation
CNO screens as fairly valued on BMO's FCF regression framework, without a significant near-term improvement in ROE and free cash flow run-rates.

CNO Financial (CNO) vs. SPDR S&P 500 ETF (SPY)

CNO Financial Business Overview & Revenue Model

Company DescriptionCNO Financial Group, Inc. is a leading provider of insurance and financial services in the United States, primarily serving middle-income Americans. The company operates through three main segments: Life Insurance, Health Insurance, and Annuities. CNO offers a range of products including life insurance, supplemental health insurance, and retirement solutions, catering to the needs of its diverse customer base.
How the Company Makes MoneyCNO Financial generates revenue primarily through the sale of insurance products and annuities. The company earns premiums from its life and health insurance policies, which are collected regularly from policyholders. Additionally, CNO generates income from investment returns on the reserves held to back its insurance liabilities. The company also receives fees from the management of its annuity products and investment portfolios. Significant partnerships with agents and brokers enhance its distribution channels, allowing CNO to reach a wider audience. Furthermore, the company's focus on middle-income consumers often leads to stable demand for its insurance products, contributing to consistent revenue streams.

CNO Financial Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlights CNO Financial Group's strong performance in premiums, investments, and sales growth across various segments. However, there were challenges such as underperformance in Medicare Advantage sales and alternative investments. Overall, the positive results in sales and investments suggest a continued strong performance with some areas needing attention.
Q2-2025 Updates
Positive Updates
Record New Annualized Premiums
CNO reported record total new annualized premiums of $120 million, a 17% increase from the previous year, with double-digit insurance sales growth across both divisions and multiple product line sales records.
Steady Annuity Growth
Annuity collected premiums reached a new record, surpassing $500 million for the first time in a single quarter, driven by 19% growth, marking the eighth consecutive quarter of annuity growth.
Consistent Brokerage and Advisory Growth
Brokerage and advisory client assets rose 27% to $4.6 million, setting a new record. New accounts increased by 13% and average account size by 12%, with total client assets surpassing $17 billion, up 13%.
Strong Life and Health Insurance Sales
Life and health new annualized premiums (NAP) grew by 17%, with total life insurance up 20%, direct-to-consumer life insurance sales up 29%, and field agents sold life insurance up 4%.
Worksite Division Performance
The Worksite division achieved a record second quarter performance with insurance sales up 16%, and significant contributions from strategic growth initiatives.
Investment Portfolio Growth
Total net investment income grew for the seventh consecutive quarter with a 7% increase in net investment income allocated to products.
Negative Updates
Medicare Advantage Sales Decline
Medicare Advantage policies sold were down in the quarter, although up 4% for the year.
Alternative Investments Yield
The yield on alternative investments remained below long-term expectations, creating a partial offset in overall investment income growth.
Statutory Income and RBC Ratio
Statutory income was below expectations, driven by alternative investments and resulting in a flat RBC ratio quarter-over-quarter.
Company Guidance
During the CNO Financial Group's second quarter 2025 earnings call, the company highlighted several key metrics demonstrating its strong performance and favorable outlook. CNO reported record total new annualized premiums of $120 million, marking a 17% increase, with double-digit insurance sales growth in both divisions and multiple product line sales records. Operating earnings per diluted share were $0.87, benefiting from favorable insurance product margins and robust investment results, with new money rates exceeding 6% for ten consecutive quarters. The company returned $117 million to shareholders in the quarter, contributing to a year-to-date total of $234 million. Additionally, book value per diluted share, excluding AOCI, rose by 6%, reaching $38.05. CNO maintained a high level of capital and liquidity, with a consolidated RBC ratio of 378% and Holdco liquidity of $187 million. The guidance for the year was reaffirmed, with a slight adjustment lowering the upper bound of the expense ratio range to 19.2%. The company expects to achieve a 10.5% operating return on equity for the full year 2025 and a 3-year target of 11.5% by 2027.

CNO Financial Financial Statement Overview

Summary
CNO Financial demonstrates solid revenue growth and improved profitability, yet faces significant balance sheet challenges with negative equity and limited cash flow visibility. The lack of EBIT and EBITDA data for 2024 enhances uncertainty regarding operational efficiency. The company needs to address equity deficiencies and improve cash flow transparency to ensure financial stability.
Income Statement
68
Positive
CNO Financial shows a notable revenue growth trajectory, with an increase from $4.15 billion in 2023 to $4.45 billion in 2024, marking a 7.29% growth. The net profit margin improved, reaching 9.08% in 2024 from 6.67% in 2023. However, EBIT and EBITDA margins are not available for 2024, indicating potential variability in operating efficiency.
Balance Sheet
45
Neutral
The balance sheet indicates a concerning financial position with negative stockholders' equity of $58.1 million in 2024, suggesting potential insolvency risks. The company shows no debt as of 2024, which reduces leverage risks, but the negative equity ratio and weakened return on equity, which was 12.48% in 2023 but cannot be calculated for 2024, are significant red flags.
Cash Flow
50
Neutral
CNO Financial's cash flow statements reveal a lack of operating cash flow data for 2024, complicating analysis. The free cash flow to net income ratio cannot be calculated for 2024, but the operating cash flow to net income ratio was 2.11 in 2023, indicating strong cash conversion. The absence of free cash flow data in 2024 limits insight into cash generation capabilities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.30B4.45B4.15B3.58B4.12B3.82B
Gross Profit1.70B1.82B4.15B3.58B4.12B3.82B
EBITDA945.80M1.07B862.80M1.20B1.07B757.00M
Net Income305.40M404.00M276.50M630.60M441.00M301.80M
Balance Sheet
Total Assets37.44B37.85B35.03B33.13B36.20B35.34B
Cash, Cash Equivalents and Short-Term Investments8.84B341.00M22.28B20.42B24.91B23.44B
Total Debt4.40B4.52B4.15B3.88B4.00B3.93B
Total Liabilities34.91B35.35B32.81B31.36B30.94B29.86B
Stockholders Equity2.53B2.50B2.22B1.77B5.26B5.48B
Cash Flow
Free Cash Flow669.80M627.70M582.90M495.40M598.30M735.50M
Operating Cash Flow669.80M627.70M582.90M495.40M598.30M735.50M
Investing Cash Flow-2.00B-1.49B-872.30M-1.78B-1.53B-608.40M
Financing Cash Flow1.71B1.97B533.50M1.20B667.60M210.10M

CNO Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price40.41
Price Trends
50DMA
37.69
Positive
100DMA
37.77
Positive
200DMA
38.41
Positive
Market Momentum
MACD
0.64
Negative
RSI
62.48
Neutral
STOCH
79.63
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNO, the sentiment is Positive. The current price of 40.41 is above the 20-day moving average (MA) of 38.32, above the 50-day MA of 37.69, and above the 200-day MA of 38.41, indicating a bullish trend. The MACD of 0.64 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CNO.

CNO Financial Risk Analysis

CNO Financial disclosed 33 risk factors in its most recent earnings report. CNO Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CNO Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.75B14.298.40%2.52%1.78%0.77%
73
Outperform
$3.79B14.4311.35%1.63%0.82%-29.29%
71
Outperform
$8.09B7.4512.97%4.16%11.33%-38.17%
68
Neutral
$18.05B11.7310.24%3.73%9.66%1.70%
67
Neutral
$3.47B19.322.42%2.61%465.03%
63
Neutral
$2.64B4.8313.53%59.27%
63
Neutral
$6.77B82.500.30%3.10%27.18%-100.02%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CNO
CNO Financial
40.41
8.05
24.88%
GNW
Genworth Financial
8.66
1.94
28.87%
LNC
Lincoln National
43.22
15.36
55.13%
BHF
Brighthouse Financial
44.23
1.97
4.66%
JXN
Jackson Financial Incorporation
98.16
19.09
24.14%
FG
F&G Annuities & Life Inc
35.31
-4.11
-10.43%

CNO Financial Corporate Events

Business Operations and Strategy
CNO Financial Highlights Investment Strategy in Latest Briefing
Positive
Jun 10, 2025

On June 10, 2025, CNO Financial Group released an Investments Briefing presentation, highlighting its proven investment approach and solid track record. The briefing emphasized the company’s strong asset quality, disciplined management, and competitive advantages, which are expected to drive improvements in operating return on equity. The presentation also detailed CNO’s strategic investments and asset management strategies, underscoring its commitment to enhancing financial stability and stakeholder value.

The most recent analyst rating on (CNO) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on CNO Financial stock, see the CNO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 13, 2025