Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Q3 2026 Earnings Presentation
42 slides from Cno Financial's earnings presentation, Oct 29, 2026
Slide 1: Third Quarter 2026 Financial and Operating Results
1 Unless otherwise specified, comparisons in this presentation are between 3Q25 and 3Q26. Third Quarter 2026 Financial and operating results for the period ended September 30, 2026 October 29, 2026
Slide 2: Forward-Looking Statements and Non-GAAP Measures
2 Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future results of operations and capital plans. We caution investors that these forward-looking statements
Slide 3: Our Purpose and Mission
3 OUR PURPOSE We secure the future of middle-income America. OUR MISSION We secure the future of middle-income America by providing insurance and financial services that help protect their health, income and retirement needs, while building enduring value for all our stakeholders.
Slide 4: Quarter in Review
4 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Operational Highlights Financial Highlights QUARTER IN REVIEW Strong results continue; Raising full-year operating EPS guidance Operating earnings per share (EPS)1 up 47%; Year-to-date up 43% – Sales m
Slide 5: Key Financial and Operating Metrics
5 2026 3Q 4Q FY 1Q 2Q 3Q vs 3Q25 New Annualized Premiums1 $125.1 $128.5 $479.2 $117.4 $127.7 $126.7 1.3% Consumer 106.1 108.7 408.0 99.8 104.4 104.3 -1.7% Worksite 19.0 19.8 71.2 17.6 23.3 22.4 17.9% Annuity Collected Premiums $472.5 $508.3 $1,943.3 $433.8 $536.0 $514.0 8.8% Fee Revenue1,2 $33.0 $71
Slide 6: Consumer Division Update
6 CONSUMER DIVISION UPDATE 16th consecutive quarter of sales growth1; Continued strength in career field agent channel PAC up 4%; 15th consecutive quarter of growth – Strong agent productivity and retention – Registered agents up 4% Total Medicare policies sold up 20% NAP generated from non-TV
Slide 7: Worksite Division Update
7 WORKSITE DIVISION UPDATE 18th consecutive quarter of sales growth1; 8th consecutive quarter of double-digit growth Career field agent NAP up 29% Life and Health NAP up 18% – Life NAP up 59% – Hospital Indemnity NAP up 16% – Accident NAP up 16% Record PAC, up 6%; 17th consecutive quarter of g
Slide 8: Financial Highlights: Earnings Results
8 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Net operating earnings per share1 (dollars in millions, except per share amounts); TTM = trailing twelve months Earnings Results FINANCIAL HIGHLIGHTS Excluding significant items Operating EPS excluding s
Slide 9: Insurance Product Margin
9 (dollars in millions) Insurance Product Margin Excluding Significant Items1 1 Excludes impacts from the annual actuarial review. See the Appendix for a reconciliation to the corresponding GAAP measure and a breakdown of impacts by major product category. INSURANCE PRODUCT MARGIN Total margin up 7%
Slide 10: Net Investment Income
10 1 Reflects sum of allocated and non-allocated investment income. Refer to pages 15-17 of the financial supplement for more information on the components of net investment income. 2 Net insurance liabilities for the purpose of allocating investment income to product lines are equal to: (i) policyh
Slide 11: Capital and Liquidity
11 Debt to Capital2 Consolidated Risk Based Capital (RBC) Ratio1 Holding Company Liquidity 1 The ratio of the combined capital of the insurance companies to the minimum amount of capital appropriate to support the overall business operations, as determined based on the methodology developed by the N
Slide 12: Guidance
12 GUIDANCE Guidance excludes significant items Raising full-year operating EPS guidance 9% at the midpoint 2026 Operating Earnings 2026 Free Cash Flow / Excess Capital $5.05 – $5.15 operating EPS 18.6% – 18.8% expense ratio ~20.5% effective tax rate $220 – $240 million free cash flow 360%
Slide 13: Why Invest in CNO
13 4 5 3 2 1 Exclusive middle-market focus and “last-mile” captive distribution create a durable competitive moat Significant demographic tailwinds Proven investment results built on a foundation of strong asset quality and disciplined management Strong balance sheet and robust free cash flow resili
Slide 14: Questions and Answers
Questions and Answers CNO FINANCIAL GROUP 14
Slide 15: Appendix 1: Quarter in Review
15 Cash Flow Profile Slide 16 Broker-Dealer/Registered Investment Advisor Slide 17 Expense Ratio Slide 18 Portfolio Composition Slide 19 New Money Summary Slide 20 Private Credit Slide 21 Financial Results Seasonality Slide 22 Long-Term Care Insurance Slide 23 Tax Asset Summary Sli
Slide 16: Cash Flow Profile
16 1 Cash flows exclude acquisitions, dividend payments, stock repurchases, and financing transactions. CASH FLOW PROFILE 3Q25 3Q26 3Q25 3Q26 Holding Company Cash Flows: Net Dividends (Contributions) from/to Subsidiaries -$ -$ 69.3$ 293.8$ Management Fees 31.5 34.5 125.1 128.6 Surplus Debenture Inte
Slide 17: Broker-Dealer and Registered Investment Advisor
17 Record client assets in brokerage and advisory; Registered agent count up 4% 1 Client assets include cash and securities in brokerage, broker-dealer customer account assets custodied directly at fund companies and insurance carriers, and assets under management in advisory accounts. Bankers Life
Slide 18: Expense Ratio
18 1 Expense ratio calculation = expenses allocated to products plus not allocated to products, divided by the sum of insurance policy income and net investment income allocated to products. Results exclude significant items. 2 See pages 27-30 for a reconciliation of the significant items. EXPENSE R
Slide 19: Portfolio Composition
19 1 Fair Value as of 9/30/2026. PORTFOLIO COMPOSITION High-quality, liquid portfolio producing solid and consistent results Highlights General Approach $31 Billion of Invested Assets1 High degree of liquidity: over 57% of portfolio in corporate and government bonds Strong credit risk profile —
Slide 20: New Money Summary
20 3Q26 General Account New Money Purchases NEW MONEY SUMMARY (dollars in millions) $ % GAAP YTM IG Corp AAA-A 496.2 29.9% 6.12% ABS 335.4 20.2% 6.00% IG Corp BBB 335.4 20.2% 6.05% Residential Mortgage Loans 153.8 9.3% 6.34% Municipals 97.7 5.9% 5.82% CRE Loans 89.6 5.4% 5.37% Alternatives 58.1 3.5%
Slide 21: Private Credit
21 PRIVATE CREDIT $2.3B of exposure diversified across asset managers, structures, vintages; 2,000+ underlying credits 1 Non-rated (NR) holdings primarily consist of LPs, residuals, and interval funds, all of which are part of our Alternatives allocation but included here because they have private c
Slide 22: Financial Results Seasonality
22 FINANCIAL RESULTS SEASONALITY 1Q 2Q 3Q 4Q Medicare Supplement Margin Seasonally highest claims and surrenders Mortality Seasonally highest mortality D2C Advertising Traditionally highest advertising Traditionally lowest advertising Fee Income ~1/3 income Near breakeven Near breakeven ~2/3 income
Slide 23: Long-Term Care Insurance
23 New sales focused on short duration products Recent growth due to strong sales in LTC Fundamental product 99% of new sales for policies with 2 years or less in benefits Average benefit period of 13 months for policies sold in 2026 Reserve assumptions informed by historical experience No m
Slide 24: Tax Asset Summary
24 NOLs with no Expiration Date $176 Value of NOLs Details Remaining NOLs are expected to be fully utilized and can generally offset 80% of non- life taxable income and 35% of life taxable income Total estimated economic value of tax assets related to our NOLs of approximately $147 million @ 10%
Slide 25: Glossary of Terms and Definitions
25 GLOSSARY OF TERMS AND DEFINITIONS New Annualized Premiums – Measured as 100% of new Life and Health annualized premiums and 10% of Single Premium Whole Life deposits. Fee Revenue – Represents fee revenue from the sales of third-party insurance products, fees generated by our broker-dealer and reg
Slide 26: Appendix 2: Financial Exhibits
26 Appendix 2: Financial Exhibits Non-GAAP Financial Measures Slides 27 - 42
Slide 27: 3Q26 Significant Items
27 (dollars in millions, except per-share amounts) The table below summarizes the financial impact of significant items on our 3Q26 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 3Q26 SIGNIFICANT ITEMS (a) Com
Slide 28: 2025 Significant Items
28 2025 SIGNIFICANT ITEMS The table below summarizes the financial impact of significant items on our 2025 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. (dollars in millions, except per-share amounts) Insuran
Slide 29: 3Q25 Significant Items
29 (dollars in millions, except per-share amounts) The table below summarizes the financial impact of significant items on our 3Q25 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 3Q25 SIGNIFICANT ITEMS (a) Com
Slide 30: 1Q25 Significant Items
30 (dollars in millions, except per-share amounts) The table below summarizes the financial impact of significant items on our 1Q25 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 1Q25 SIGNIFICANT ITEMS (a) Com
Slide 31: Quarterly Operating Earnings Summary
31 3Q25 4Q25 1Q26 2Q26 3Q26 Insurance product margin Annuity 72.9$ 56.4$ 58.5$ 60.6$ 87.9$ Health 157.0 139.4 132.6 147.2 149.1 Life 70.6 70.0 65.8 71.2 96.0 Total insurance product margin 300.5 265.8 256.9 279.0 333.0 Allocated expenses (151.0) (149.7) (159.9) (152.9) (161.0) Income from insurance
Slide 32: Non-GAAP Measures Information
32 The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are normally excluded or included in the most
Slide 33: Net Income to Net Operating Income Reconciliation
33 (dollars in millions, except per-share amounts) INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES 3Q25 4Q25 1Q26 2Q26 3Q26 Net income applicable to common stock 23.1$ 92.9$ 37.7$ 125.9$ 161.1$ Non-operating items: Net realized investment (gains) losses from sales and impairments 8.8 25.2
Slide 34: Operating Income and Per-Share Reconciliation
34 A reconciliation of operating income and shares used to calculate basic and diluted operating earnings per share is as follows: (dollars in millions, except per-share amounts, and shares in thousands) INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES 3Q25 4Q25 1Q26 2Q26 3Q26 Net operatin
Slide 35: Book Value per Diluted Share
35 Book value per diluted share Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the
Slide 36: Operating Return Measures
36 Operating return measures Management believes that an analysis of net income applicable to common stock before the following items (each net of tax, except as noted) is important to evaluate the financial performance of the Company, and is a key measure commonly used in the life insurance industr
Slide 37: Operating Return on Equity Calculations
37 The calculations of: (i) Operating return on equity (a non-GAAP financial measure); (ii) Operating return, excluding significant items, on equity (a non-GAAP financial measure); and (iii) return on equity are as follows: (dollars in millions) (Continued on next page) Trailing four quarters averag
Slide 38: Operating Earnings and Significant Items Summary
38 The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income (loss): (dollars in millions) (a) The significant items have been discussed in either the current or prior press releases. (Continued on next page)
Slide 39: Operating ROE Excluding AOCI and NOLs
39 The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) operating return, excluding significant item, on equity, excluding accumulated other comprehensive income (loss) a
Slide 40: Consolidated Capital Reconciliation
40 A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders’ equity, is as follows: (dollars in millions) 1Q24 2Q24 3Q24 4Q24 Consolidated capital, excluding accumulate
Slide 41: Consolidated Capital Reconciliation
41 A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders’ equity, is as follows: (dollars in millions) INFORMATION RELATED TO CERTAIN NON-GAAP FINANCIAL MEASURES 3Q2
Slide 42: Debt to Capital Reconciliation
42 2024 2025 1Q26 2Q26 3Q26 Corporate notes payable 1,833.5$ 1,335.6$ 1,336.0$ 1,336.3$ 1,336.7$ Total shareholders' equity 2,515.2 2,638.2 2,498.4 2,591.6 2,323.7 Total capital 4,348.7$ 3,973.8$ 3,834.4$ 3,927.9$ 3,660.4$ Corporate debt to capital 42.2% 33.6% 34.8% 34.0% 36.5% Corporate notes payab