CNO Raises 2026 Operating Earnings Guidance

The Tip Desk · July 31, 2026 · 3 min read

The life insurer lifted full-year operating EPS guidance 8% at the midpoint after a 45% jump in second-quarter operating earnings.

CNO Financial Group (CNO) raised its 2026 operating earnings-per-share guidance by 8% at the midpoint after operating EPS growth accelerated to 45% in the second quarter, from 33% in the first quarter and 11% in the fourth quarter of 2025.

The Carmel, Indiana-based life insurer said it was lifting full-year guidance to reflect “strong underlying fundamentals, continued profitability improvement and the consistent, repeatable results we continue to generate across the business.” Chief executive Gary C. Bhojwani said the company delivered a “very strong first half.”

Net operating income was $119.5 million, or $1.26 a share, up from $101.3 million, or $1.05 a share, in the first quarter. GAAP net income was $125.9 million, or $1.33 a share. Operating earnings per share grew 39% year to date. There were no significant items in the quarter.

Income from insurance products was $126.1 million, or $1.33 a share. Investment income not allocated to product lines was $49.4 million, or $0.52 a share. Fee income was a $1.2 million loss, or $0.01 a share.

Total revenues were $1,285.2 million in the three months ended June 30, 2026. Fee revenue and other income fell to $22.2 million from $48.8 million in the first quarter. Insurance policy income was $680.7 million. Net investment income on general account assets was $411.9 million.

Total new annualized premiums rose 7%, slowing from 11% growth in the first quarter and extending the sales streak to 16 consecutive quarters. The company achieved quarterly records in Worksite Division new annualized premiums, annuity collected premiums, and client assets in brokerage and advisory. Consumer and Worksite producing agent counts grew for a 14th and 16th consecutive quarter, respectively.

Trailing-four-quarter operating return on equity, excluding significant items, was 13.1% at June 30, 2026, versus 12.2% at March 31. Return on equity was 10.9%. Book value per diluted share, excluding accumulated other comprehensive loss, was $39.92.

TechMod technology-modernization expense was $9.7 million, versus $3.2 million a year earlier. The three-year project began in the second quarter of 2025. The company recognized a $1.1 million non-operating loss related to exiting the fee-services side of Worksite; beginning in the fourth quarter of 2025, those operating losses are reported in non-operating income rather than fee income.

Net investment losses were $13.6 million, including a $3.4 million unfavorable change in the allowance for credit losses. Changes in the estimated fair value of embedded derivative liabilities and market risk benefits related to fixed indexed annuities increased earnings by $34.6 million.

The consolidated statutory risk-based capital ratio of U.S. insurance subsidiaries was estimated at 377% at June 30, 2026, reflecting an estimated second-quarter statutory operating gain of $35.4 million. Company dividends of $20.0 million were paid to the holding company.

CNO repurchased $60.0 million of common stock in the second quarter, buying 1.3 million shares at an average cost of $46.57 a share, leaving authority for up to $300.4 million more. Dividends paid on common stock totaled $16.8 million. Unrestricted cash and investments held by the holding company were $233.2 million at June 30, 2026. The debt-to-capital ratio was 34.0%.

Weighted average diluted shares outstanding were 95.0 million. Basic shares outstanding were 92.7 million.