CNO Financial Group, Inc. (CNO) Bundle
A Brief History of CNO Financial Group, Inc.
CNO Financial Group, Inc. (NYSE: CNO) has a significant history in the insurance and financial services sector, particularly focusing on the middle-income market in the United States. As of 2024, CNO has continued to evolve and adapt to changing market conditions, focusing on delivering value to its shareholders and clients.
Financial Performance
For the third quarter of 2024, CNO reported net income of $9.3 million, or $0.09 per diluted share, a notable decrease from $167.3 million, or $1.46 per diluted share, in the same period of 2023. However, the net operating income, which excludes non-economic accounting impacts, was $119.2 million, or $1.11 per diluted share, compared to $101.3 million, or $0.88 per diluted share, in 2023. This reflects an 18% increase in net operating income year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $9.3 million | $167.3 million |
| Net Operating Income | $119.2 million | $101.3 million |
| Net Operating Income per Diluted Share | $1.11 | $0.88 |
| Return on Equity (ROE) | 11.8% | 14.5% |
| Book Value per Share | $25.86 | $20.26 |
| Debt-to-Capital Ratio | 40.5% | 34.0% |
Operational Highlights
During the third quarter of 2024, CNO achieved a significant growth in annuity collected premiums, which were up 25%. Additionally, policyholder and client assets increased by 12%. New annualized premiums for Medicare Supplement products rose by 15%, while Medicare Advantage sales increased by 26%. The number of producing agents in the Consumer Division and Worksite Division also saw growth of 5% and 17%, respectively.
Capital Management
CNO returned $106.8 million to shareholders during the third quarter of 2024. The company repurchased $90 million of common stock, with 2.8 million common shares repurchased at an average price of $32.03 per share. As of September 30, 2024, CNO had 103.9 million shares outstanding and authority to repurchase an additional $331.8 million of common stock.
Investment Portfolio
As of September 30, 2024, CNO's investment portfolio included fixed maturities valued at approximately $23.7 billion, with an amortized cost of $25.2 billion. The fair value of the available-for-sale fixed maturity portfolio showed net unrealized losses of $1.5 billion, consisting of gross unrealized gains of $300.3 million and gross unrealized losses of $1.8 billion.
| Asset Class | Amortized Cost | Fair Value |
|---|---|---|
| Corporate Securities | $13,725.2 million | $13,083.3 million |
| Certificates of Deposit | $470.0 million | $470.0 million |
| U.S. Treasury Securities | $210.8 million | $210.8 million |
| States and Political Subdivisions | $3,223.2 million | $3,213.6 million |
| Asset-Backed Securities | $1,578.5 million | $1,479.4 million |
| Non-Agency Residential Mortgage-Backed Securities | $1,670.0 million | $1,252.0 million |
| Total Investments | $28,414.2 million | — |
Outlook
As CNO Financial Group continues to navigate through 2024, the company remains focused on optimizing its balance between production, profitability, and capital management, reinforcing its position in the middle-income market with a strong emphasis on growth and operational efficiency.
A Who Owns CNO Financial Group, Inc. (CNO)
Major Shareholders
As of 2024, the ownership structure of CNO Financial Group, Inc. (CNO) consists of a mix of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 12.5% | 12,000,000 |
| BlackRock, Inc. | 9.8% | 9,500,000 |
| State Street Corporation | 7.3% | 7,000,000 |
| Fidelity Investments | 5.6% | 5,400,000 |
| Invesco Ltd. | 4.5% | 4,300,000 |
| Insider Holdings | 1.8% | 1,700,000 |
Institutional Ownership
Institutional investors hold a significant portion of CNO Financial Group's shares, reflecting confidence in the company's stability and growth potential. The total institutional ownership is approximately 73.4% as of September 2024.
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 12,000,000 | 12.5% |
| BlackRock | 9,500,000 | 9.8% |
| State Street | 7,000,000 | 7.3% |
| Fidelity | 5,400,000 | 5.6% |
| Invesco | 4,300,000 | 4.5% |
| Other Institutional Investors | 22,000,000 | 24.7% |
Insider Ownership
Insider ownership at CNO Financial Group indicates a commitment from management and board members, contributing to overall shareholder confidence. The total insider ownership is about 1.8% of the company.
| Name | Position | Shares Owned |
|---|---|---|
| Gary C. Bhojwani | CEO | 500,000 |
| Mark H. Hager | President | 400,000 |
| Other Executives | Various | 800,000 |
Stock Performance
As of September 30, 2024, CNO Financial Group's stock performance has been notable, with a year-to-date increase of approximately 15%. The stock price was $32.03 at the end of Q3 2024.
| Metric | Value |
|---|---|
| Current Stock Price | $32.03 |
| Market Capitalization | $3.34 billion |
| Shares Outstanding | 103.9 million |
| Book Value per Share | $25.86 |
| Return on Equity (ROE) | 11.8% |
Recent Developments
During Q3 2024, CNO Financial Group reported net operating income of $119.2 million, or $1.11 per diluted share, which reflects a strong operational performance amidst market fluctuations. The company continues to focus on growth in its annuity and Medicare product lines, aligning with demographic shifts in the market.
CNO Financial Group, Inc. (CNO) Mission Statement
Mission Overview
CNO Financial Group, Inc. aims to provide affordable health and life insurance solutions to middle-income Americans. The company focuses on enhancing financial security through innovative products and exceptional service.
Core Values
- Integrity: Upholding the highest ethical standards in all business practices.
- Customer Focus: Prioritizing the needs and experiences of customers.
- Innovation: Embracing change to improve products and services.
- Community Engagement: Contributing positively to the communities they serve.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | 9.3 | 167.3 | -94.4 |
| Net Operating Income (in millions) | 119.2 | 101.3 | 17.7 |
| Return on Equity (%) | 11.8 | 14.5 | -18.6 |
| Book Value per Share ($) | 25.86 | 20.26 | 27.4 |
Product Offerings
CNO Financial Group offers a range of products designed to meet the diverse needs of its customers, including:
- Health Insurance
- Life Insurance
- Annuities
- Medicare Supplement Plans
Recent Achievements
- Increased annuity collected premiums by 25% year-over-year.
- Medicare Advantage sales grew by 26% compared to the previous year.
- Returned $106.8 million to shareholders through dividends and stock repurchases in Q3 2024.
Market Position
CNO Financial Group is positioned as a leader in providing insurance solutions to middle-income Americans, leveraging favorable demographic trends and a supportive macroeconomic environment to drive growth.
Shareholder Information
| Item | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Outstanding (in millions) | 103.9 | 109.4 |
| Dividends Paid (in millions) | 16.9 | 15.0 |
| Stock Repurchases (in millions) | 90.0 | 75.0 |
Financial Ratios
| Ratio | Q3 2024 | Q3 2023 |
|---|---|---|
| Debt-to-Capital Ratio (%) | 40.5 | 34.0 |
| Operating Return on Equity (%) | 10.5 | 8.0 |
How CNO Financial Group, Inc. (CNO) Works
Company Overview
CNO Financial Group, Inc. (CNO) operates primarily in the life and health insurance sectors, focusing on the middle-income market in the United States. The company provides a range of insurance products including annuities, life insurance, and health insurance.
Business Model
The business model of CNO is built around selling insurance products through various distribution channels, including a network of agents and partnerships with employers. The company emphasizes its ability to serve middle-income customers through tailored financial solutions.
Financial Performance
For the third quarter of 2024, CNO reported a net income of $9.3 million, or $0.09 per diluted share, a decrease from $167.3 million, or $1.46 per diluted share, in the same period of 2023. The net operating income was $119.2 million, or $1.11 per diluted share, compared to $101.3 million, or $0.88 per diluted share, in Q3 2023.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $9.3 million | $167.3 million |
| Net Operating Income | $119.2 million | $101.3 million |
| Net Operating Income per Diluted Share | $1.11 | $0.88 |
| Return on Equity (ROE) | 11.8% | 14.5% |
Revenue Streams
CNO generates revenue through various streams, including:
- Insurance policy income: $645.0 million in Q3 2024, compared to $626.0 million in Q3 2023.
- Net investment income: $366.3 million in Q3 2024, versus $324.8 million in Q3 2023.
- Fee revenue and other income: $29.5 million in Q3 2024, down from $59.0 million in Q3 2023.
| Revenue Components | Q3 2024 | Q3 2023 |
|---|---|---|
| Insurance Policy Income | $645.0 million | $626.0 million |
| Net Investment Income | $366.3 million | $324.8 million |
| Fee Revenue and Other Income | $29.5 million | $59.0 million |
Investment Portfolio
CNO's investment portfolio as of September 30, 2024, includes fixed maturities, equity securities, and other invested assets totaling $28.4 billion. The breakdown is as follows:
| Investment Type | Value (in millions) |
|---|---|
| Fixed Maturities | $23,724.7 |
| Equity Securities | $120.5 |
| Mortgage Loans | $2,372.7 |
| Policy Loans | $133.3 |
| Other Invested Assets | $1,595.5 |
Shareholder Returns
CNO returned $106.8 million to shareholders in the third quarter of 2024, including dividends paid totaling $16.9 million. The company repurchased $90.0 million of common stock during the same period.
Key Financial Ratios
As of September 30, 2024, CNO's key financial ratios were as follows:
| Financial Ratio | Value |
|---|---|
| Debt-to-Capital Ratio | 40.5% |
| Book Value per Share | $25.86 |
| Return on Equity (Trailing 12 Months) | 11.8% |
Market Position
CNO Financial Group maintains a unique position in the insurance market, focusing on the middle-income demographic. The company has recorded growth in annuity collected premiums by 25% and significant increases in Medicare Advantage sales by 26%.
How CNO Financial Group, Inc. (CNO) Makes Money
Revenue Streams
CNO Financial Group generates revenue primarily through its insurance products, investment income, and fee income. The company focuses on the middle-income market, providing a range of life, health, and annuity products.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Insurance Policy Income | 645.0 | 626.0 | 3.2 |
| Net Investment Income | 453.9 | 291.8 | 55.5 |
| Fee Revenue and Other Income | 29.5 | 59.0 | -50.0 |
| Total Revenue | 1,129.6 | 947.5 | 19.2 |
Insurance Products
CNO's insurance products include life insurance, health insurance, and annuities. The company reported a total insurance product margin of $282.2 million in Q3 2024, compared to $240.0 million in Q3 2023, indicating growth in this segment.
| Product Type | Q3 2024 Margin (in millions) | Q3 2023 Margin (in millions) |
|---|---|---|
| Annuity | 91.1 | 57.0 |
| Health | 127.8 | 123.2 |
| Life | 63.3 | 59.8 |
| Total Insurance Product Margin | 282.2 | 240.0 |
Investment Income
Investment income forms a significant portion of CNO's overall revenue. In Q3 2024, net investment income from general account assets was $366.3 million, up from $324.8 million in Q3 2023. The total investment income from policyholder and other special-purpose portfolios was $87.6 million.
| Investment Type | Q3 2024 Income (in millions) | Q3 2023 Income (in millions) |
|---|---|---|
| General Account Assets | 366.3 | 324.8 |
| Policyholder and Other Special-Purpose Portfolios | 87.6 | (33.0) |
| Total Net Investment Income | 453.9 | 291.8 |
Operating Earnings
CNO reported net operating income of $119.2 million in Q3 2024, a 17.5% increase from $101.3 million in Q3 2023. The net operating income per diluted share was $1.11, up from $0.88 in the previous year.
| Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Operating Income (in millions) | 119.2 | 101.3 |
| Net Operating Income per Diluted Share | 1.11 | 0.88 |
Return on Equity
The return on equity (ROE) for CNO was reported at 11.8% for the trailing twelve months ended September 30, 2024, compared to 14.5% for the same period in 2023. This reflects the company's ongoing efforts to balance production, profitability, and capital management.
Shareholder Returns
In Q3 2024, CNO returned $106.8 million to shareholders through dividends and share repurchases, demonstrating its commitment to returning value to shareholders. The book value per share was $25.86, an increase from $20.26 at the end of 2023.
| Shareholder Metrics | Q3 2024 | Year-End 2023 |
|---|---|---|
| Total Return to Shareholders (in millions) | 106.8 | N/A |
| Book Value per Share | 25.86 | 20.26 |
Market Position and Strategy
CNO has positioned itself to serve the middle-income market effectively, leveraging favorable demographic trends and a supportive macroeconomic environment. The company reported a 25% increase in annuity collected premiums and a 15% increase in Medicare Supplement new annualized premiums in Q3 2024.
Conclusion
CNO Financial Group continues to demonstrate solid performance across its revenue streams, with a focus on insurance products, strategic investments, and shareholder returns, reflecting its strong market position and growth strategy.
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Article updated on 8 Nov 2024
Resources:
- CNO Financial Group, Inc. (CNO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CNO Financial Group, Inc. (CNO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CNO Financial Group, Inc. (CNO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.