$CNO earnings report

CNO reported a substantially stronger third quarter on both GAAP and operating measures. Net income was $161.1 million, or $1.71 per diluted share, compared with $23.1 million, or $0.24 per diluted share, in 3Q25. Net operating income was $179.1 million, or $1.90 per diluted share, compared with $127.2 million, or $1.29 per diluted share. The company stated that operating EPS grew 47% in the quarter and 43% year-to-date.

Underlying operating results reflected higher income from insurance products and higher investment income not allocated to product lines. Income from insurance products was $172.0 million versus $149.5 million in 3Q25, while investment income not allocated to product lines was $68.1 million versus $39.5 million. The quarter included $44.9 million of significant items that favorably affected both net income and net operating income. Excluding significant items, net operating income was $134.2 million and net operating income per diluted share was $1.42.

GAAP revenue declined to $1,086.0 million from $1,188.7 million. General account net investment income increased to $441.5 million from $382.9 million, but policyholder and other special-purpose portfolios net investment income fell to $6.1 million from $116.8 million, and fee revenue and other income declined to $14.9 million from $33.6 million. Total investment losses were $(64.7) million compared with $(3.0) million, including net realized investment losses of $48.3 million. CNO also recorded a $22.1 million valuation allowance on deferred tax assets associated with capital loss carryforwards.

Capital returns included $60.0 million of share repurchases and $16.5 million of common dividends during 3Q26. The company had $240.4 million of remaining repurchase authority at September 30, 2026. Unrestricted holding-company cash and investments were $230.7 million, compared with $351.4 million at December 31, 2025. The debt-to-capital ratio was 36.5%, while debt-to-total capital excluding accumulated other comprehensive income loss was 25.7%.

CNO raised 2026 operating EPS guidance, stating that the midpoint increased 9% from prior guidance, although it did not disclose the revised range. The company highlighted a 17th consecutive quarter of total new annualized premium growth, continued asset accumulation product growth, and ongoing producer-count growth in Consumer and Worksite. The October 1 internal reinsurance transaction reinsured approximately $270 million of inforce graded benefit life statutory reserves from Colonial Penn.

CNO reported 2Q 2026 total revenues of $ 1,285.2 million, compared with $ 1,029.6 million in 1Q 2026 and $ 1,151.5 million in 2Q 2025. Net income was $ 125.9 million and net income per diluted share was $ 1.33, versus $ 37.7 million and $ 0.39 in 1Q 2026 and $ 91.8 million and $ 0.91 in 2Q 2025. Net operating income was $ 119.5 million, or $ 1.26 per diluted share, compared with $ 101.3 million, or $ 1.05 per diluted share, in 1Q 2026.

Insurance product margin was $ 279.0 million, compared with $ 256.9 million in 1Q 2026 and $ 252.4 million in 2Q 2025. Health margin was $ 147.2 million, life margin was $ 71.2 million, and annuity margin was $ 60.6 million. Health insurance policy income was $ 436.4 million and health insurance policy benefits were $ (322.3) million. Life insurance policy income was $ 234.1 million, while annuity net investment income was $ 163.9 million.

The revenue mix included $ 411.9 million of general account assets net investment income and $ 185.1 million of policyholder and other special-purpose portfolios net investment income. Fee revenue and other income was $ 22.2 million. Benefits and expenses totaled $ 1,125.5 million, including $ 742.5 million of insurance policy benefits, $ 74.9 million of amortization of deferred acquisition costs and present value of future profits, and $ 276.4 million of other operating costs and expenses.

Non-operating items moved to net non-operating income of $ 6.4 million from net non-operating loss of $ (63.6) million in 1Q 2026. The 2Q 2026 figure included $ 34.6 million of changes in fair value of embedded derivative liabilities and market risk benefits, partially offset by $ (13.6) million of net realized investment losses from disposals, impairments and change in allowance for credit losses and $ (9.7) million of expenses related to TechMod initiative.

At Jun-26, total investments were $ 30,742.9 million, unrestricted cash and cash equivalents were $ 1,289.7 million, and total shareholders' equity was $ 2,591.6 million. Investment borrowings were $ 2,941.7 million and notes payable - direct corporate obligations were $ 1,336.3 million. The supplied filing text contains no forward guidance or capital-return disclosure.