CNO Lifts 2026 Operating Earnings Guidance Again

The Tip Desk · November 1, 2026 · 2 min read

The insurer posted $1.90 a share of net operating income and raised the midpoint of its 2026 operating EPS outlook 9%.

CNO Financial Group (CNO) raised its 2026 operating earnings-per-share guidance for a second consecutive quarter, lifting the midpoint 9% from prior guidance after net operating income reached $179.1 million, or $1.90 a share, in the third quarter.

The life insurer said operating EPS grew 47% in the quarter and 43% year-to-date. A year earlier, GAAP net income was $23.1 million, or $0.24 a share. Net income in the latest quarter was $161.1 million, or $1.71 a share.

Significant items tied to the comprehensive annual actuarial review had a $44.9 million net favorable impact on both net income and net operating income, or $0.48 a share. Net operating income excluding those items was $134.2 million. Chief executive Gary C. Bhojwani said the company raised full-year operating EPS guidance based on the results.

Income from insurance products was $172.0 million, or $1.83 a share. Investment income not allocated to product lines was $68.1 million, or $0.72 a share. Operating earnings before taxes were $220.2 million.

Total new annualized premiums rose for a 17th consecutive quarter. Consumer and Worksite producing agent counts grew for a 15th and 17th consecutive quarter, respectively. The company said it continued to see growth in asset accumulation products.

On October 1, 2026, CNO closed a third reinsurance transaction with its wholly owned Bermuda affiliate, reinsuring approximately $270 million of inforce graded benefit life statutory reserves from Colonial Penn. Bhojwani said the transaction supports the company’s focus on serving middle-income households.

Non-operating items included $48.3 million of net realized investment losses, including a $5.4 million unfavorable change in the allowance for credit losses. The company recognized a $22.1 million valuation allowance on deferred tax assets associated with capital loss carryforwards, which it said reflected realized capital losses generated primarily from asset sales in anticipation of the October 1 internal reinsurance, portfolio optimization, and capital loss allocations from partnership investments. TechMod expense was $10.1 million.

Trailing-four-quarter return on equity was 16.4%. Operating return on equity excluding significant items was 14.1%. Book value per diluted share excluding accumulated other comprehensive loss was $41.29, up 8% from $38.10 a year earlier.

CNO repurchased $60.0 million of common stock in the quarter, buying 1.1 million shares at an average $54.52 a share. Remaining repurchase authority was $240.4 million. Unrestricted cash and investments at the holding company were $230.7 million at September 30, 2026. The debt-to-capital ratio was 36.5%. The consolidated statutory risk-based capital ratio of U.S. insurance subsidiaries was estimated at 374%, reflecting estimated third-quarter statutory operating gain of $21.9 million.