CNO Financial Group — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income was $161.1 million ($1.71 per diluted share), compared to $23.1 million ($0.24 per diluted share) in the prior year quarter.
• Net operating income was $179.1 million ($1.90 per diluted share), a 41% increase from $127.2 million ($1.29 per diluted share) in the prior year quarter.
• Operating earnings per share grew 47% year-over-year for the quarter and 43% year-to-date.
• Significant items related to a comprehensive annual actuarial review provided a $44.9 million net favorable impact on both net income and net operating income, compared to a $32.2 million favorable impact in the prior year quarter.
• Return on equity was 16.4% for the trailing four quarters, up from 12.5% in the prior year period.
• Operating return on equity, excluding significant items, was 14.1% for the trailing four quarters, up from 11.2% in the prior year period.
• Book value per share was $25.34 at September 30, 2026, down from $27.24 at the same time in 2025.
• Book value per diluted share, excluding accumulated other comprehensive loss, was $41.29, up 8% from $38.10 in the prior year quarter.
• Total revenues were $1,086.0 million for the quarter, down from $1,188.7 million in the prior year quarter.
• Insurance policy income was $688.2 million for the quarter, up 4.5% from $658.4 million in the prior year quarter.
• Net investment income from general account assets was $441.5 million, up 15.3% from $382.9 million in the prior year quarter.
• Total benefits and expenses were $859.6 million for the quarter, down from $1,152.5 million in the prior year quarter.
• Income before income taxes was $226.4 million for the quarter, compared to $36.2 million in the prior year quarter.
• Net realized investment losses were $48.3 million for the quarter, compared to $8.8 million in the prior year quarter.
• The debt-to-capital ratio was 36.5% at September 30, 2026, compared to 33.6% at December 31, 2025.
• Unrestricted cash and investments held by the holding company were $230.7 million at September 30, 2026, compared to $351.4 million at December 31, 2025.

Guidance and Future Outlook:

• CNO raised its 2026 operating earnings per share guidance, with the midpoint up 9% from the prior guidance.
• Management cited disciplined execution and continued improvement in profitability as drivers for the guidance increase.
• The company remains committed to driving sustained, profitable growth and creating long-term value for shareholders.

Business Segments and Product Lines:

• Total new annualized premiums (NAP) increased for the 17th consecutive quarter.
• Continued growth was reported in asset accumulation products.
• The Consumer segment delivered its 15th consecutive quarter of producing agent count growth.
• The Worksite segment delivered its 17th consecutive quarter of producing agent count growth.
• On October 1, 2026, the company closed a third reinsurance transaction with its Bermuda affiliate, reinsuring approximately $270 million of inforce graded benefit life statutory reserves from Colonial Penn.
• Significant items impacting net operating income included a $56.3 million net favorable impact from the comprehensive annual actuarial review, affecting annuity, health, and life margins.

Market and Competitive Landscape:

• The company focuses on serving middle-income households.
• The consolidated statutory risk-based capital ratio of U.S. based insurance subsidiaries was estimated at 374% at September 30, 2026.
• Estimated 3Q26 statutory operating gain was $21.9 million.

Risks and Challenges:

• Non-operating items included a $22.1 million valuation allowance on deferred tax assets associated with capital loss carryforwards, driven by realized capital losses from asset sales, portfolio optimization, and partnership investments, alongside a reduction in unrealized capital gains due to rising interest rates.
• TechMod initiative expenses totaled $10.1 million for the quarter, compared to $7.2 million in the prior year quarter.
• Net realized investment losses included an unfavorable change in the allowance for credit losses of $5.4 million.
• Changes in fair value of embedded derivative liabilities and market risk benefits resulted in a $69.7 million increase in earnings, influenced by changes in market interest rates and equity impacts.

Management Commentary and Tone:

• Gary C. Bhojwani, Chief Executive Officer, stated the company delivered an "excellent quarter" with operating earnings per share up 47% and 17 consecutive quarters of sales growth.
• Management highlighted momentum reflecting disciplined execution and continued improvement in profitability.
• The tone was confident, emphasizing a commitment to sustained, profitable growth and shareholder value creation.

Other Key Points:

• The company repurchased $60.0 million of common stock during the quarter, acquiring 1.1 million shares at an average cost of $54.52 per share.
• As of September 30, 2026, the company had 91.7 million shares outstanding and authority to repurchase up to an additional $240.4 million of common stock.
• Dividends paid on common stock totaled $16.5 million during the quarter.
• No company dividends were paid to the holding company during the quarter.
• The company has 3.3 million policies and $39.3 billion in total assets.
• The company operates with 3,200 associates, 5,100 exclusive agents, and more than 6,500 independent partner agents.