Group 1 - Piper Sandler raised the price target on CNO Financial to $50 from $46, maintaining an Overweight rating on the shares [1] - The firm is generally above consensus across the board in the life insurance sector [1] - The gradual drop in rates has positively impacted broader capital markets activity, providing a tailwind to fee and spread earnings in CNO's coverage [1]

Group 1 - Trian Fund Management and General Catalyst Group will acquire Janus Henderson Group in an all-cash deal valued at approximately $7.4 billion [2] - Shareholders of Janus Henderson will receive $49 per share, representing an 18% premium from the closing price on October 24, prior to the acquisition announcement [4] - The transaction is expected to close in mid-2026, with the current management team, including CEO Ali Dibadj, remaining in place [4] Group 2 - The acquisition is seen as a strong affirmation of Janus Henderson's long-term strategy, allowing for further investment in product offerings, client services, technology, and talent [5] - Janus Henderson has had a busy year, including managing a $45 billion fixed-income portfolio for Guardian Life Insurance Co. and developing multi-asset solution portfolios for Park Avenue Securities [5] - CNO Financial Group acquired a minority stake in Victory Park Capital, a private credit manager owned by Janus Henderson, for $600 million in capital commitments [6] Group 3 - As of September 30, Janus Henderson managed approximately $484 billion in assets, with 50% from intermediary clients, 30% from institutional clients, and 20% from self-directed investors [7] - Trian has been a shareholder of Janus Henderson since 2020, currently owning 20.6% of its shares, while other significant shareholders include BlackRock and Vanguard [8]

Core Viewpoint - CNO Financial (CNO) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for CNO suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - CNO's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for CNO - For the fiscal year ending December 2025, CNO is expected to earn $4.14 per share, unchanged from the previous year, but analysts have raised their estimates by 0.5% over the past three months [8].

Core Viewpoint - CNO Financial's recent earnings report shows strong performance in Q3 2025, with adjusted EPS beating estimates and revenues exceeding expectations, despite a slight decline in share price over the past month [1][2][16]. Financial Performance - CNO Financial reported Q3 2025 adjusted EPS of 96 cents, surpassing the Zacks Consensus Estimate by 1.1%, and an increase from 92 cents a year ago [2]. - Operating revenues reached $1.2 billion, reflecting a year-over-year growth of 5.3% and exceeding the consensus mark by 26.3% [2]. - Total insurance policy income rose 2.1% year over year to $658.4 million, beating the Zacks Consensus Estimate of $653 million [4]. Premiums and Revenues - Collected premiums from annuity, life, and health products contributed to the revenue growth, with total collected premiums increasing 2.1% year over year to $1.1 billion [6]. - Annuity collected premiums improved 1.6% to $472.5 million, health collected premiums rose 2.4% to $412.6 million, and life product premiums increased 2.5% to $247 million [6]. Expenses and Losses - Total benefits and expenses escalated 3% year over year to $1.2 billion, influenced by higher operating costs [7]. - Net investment losses were reported at $8.8 million, a slight improvement from the previous year's loss of $11.1 million [5]. Financial Position - As of September 30, 2025, CNO Financial had unrestricted cash and cash equivalents of $1.2 billion, down 26.5% from the end of 2024 [8]. - Total assets increased by 1.2% to $38.3 billion, while total shareholders' equity grew 3.8% to $2.6 billion [8]. Shareholder Returns - The company returned $60 million to shareholders through share buybacks and $16.4 million in dividends during Q3 [11]. - CNO Financial has a remaining repurchase capacity of $480.4 million as of September 30, 2025 [11]. Guidance and Estimates - CNO Financial revised its operating EPS guidance for 2025 to a range of $3.75-$3.85, up from the previous range of $3.70-$3.90 [12]. - The company now anticipates excess cash flow of $365-$385 million, an increase from the earlier estimate of $200-$250 million [12]. Industry Context - CNO Financial is part of the Zacks Insurance - Multi line industry, where competitor Prudential reported a revenue decline of 16.6% year over year [17]. - Prudential's EPS for the same period was $4.26, compared to $3.48 a year ago, indicating a different performance trajectory within the industry [17].

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Core Insights - CNO Financial Group, Inc. (CNO) shares increased by 3.5% following the release of its third-quarter 2025 results, driven by strong premium collections from annuity, life, and health products, alongside rising new annualized premiums and higher fee revenues, although partially offset by increased total benefits and expenses [1][10]. Financial Performance - CNO reported adjusted earnings per share (EPS) of 96 cents, exceeding the Zacks Consensus Estimate by 1.1%, and an increase from 92 cents a year ago [2][10]. - Operating revenues reached $1.2 billion, marking a 5.3% year-over-year increase and surpassing the consensus estimate by 26.3% [2][10]. - Total insurance policy income rose 2.1% year over year to $658.4 million, beating the Zacks Consensus Estimate of $653 million [3]. Premiums and Expenses - Collected premiums from annuity, life, and health products totaled $1.1 billion, reflecting a 2.1% year-over-year increase [5]. - New annualized premiums for health products surged by 20.2% year over year, while life products increased by 32.1% [6]. - Total benefits and expenses rose by 3% year over year to $1.2 billion, driven by higher operating costs [6]. Investment and Assets - Net investment losses were reported at $8.8 million, an improvement from the previous year's loss of $11.1 million [4]. - General account assets grew by 4.5% year over year to $382.9 million, while policyholder and other special-purpose portfolios increased by 33.3% to $116.8 million [4]. Shareholder Returns - CNO returned $60 million to shareholders through share buybacks and $16.4 million in dividends during the third quarter, with a remaining repurchase capacity of $480.4 million [11]. Guidance and Projections - For 2025, CNO anticipates operating EPS in the range of $3.75-$3.85, an increase from the previous estimate of $3.70-$3.90 [12]. - The company now estimates excess cash flow to the holding company between $365-$385 million, up from the prior range of $200-$250 million [12]. - The projected expense ratio is around 19%, improved from the previous estimate of 19-19.2% [13].

Core Insights - The CNO Financial Indianapolis Monumental Marathon achieved a record participation of over 17,500 runners, marking its 13th consecutive sellout and establishing itself as a significant event in the national competitive circuit [1][4][11] - Joseph Whelan set a new men's marathon course record with a time of 2:12:29, while Amanda Mosborg won the women's race in 2:32:01, showcasing elite performances [2][6] - The event also saw 14 athletes qualify for the 2028 U.S. Olympic Team Trials, further enhancing its reputation [3] Event Highlights - The marathon featured a new start line on West Street and celebrated the 10th anniversary of CNO Financial Group's title sponsorship [4][10] - Participants represented all 50 states and 22 countries, indicating the event's growing global reach [4][11] - The event included a charity component, with over 240 participants running for various causes, raising funds and awareness [11] Results Overview - Men's Marathon: Joseph Whelan (2:12:29), Ben Decker (2:15:23), Andrew Bowman (2:15:33) [5] - Women's Marathon: Amanda Mosborg (2:32:01), Lucy Dobbs (2:32:42), Anna Benedettini (2:33:12) [6] - Men's Half Marathon: Skylar Stidam (1:02:47), Curtis Eckstein (1:03:06), Alec Basten (1:03:15) [7] - Women's Half Marathon: Carrie Ellwood (1:08:33), Kasandra Parker (1:10:18), Molly Grabill (1:11:00) [8] - Men's 5K: Scott Spaanstra (14:38), Women's 5K: Sammy McClintock (16:17) [8] Future Plans - Plans for the next year's event are already underway, scheduled for November 7, 2026, with registration opening soon [12]

Financial Performance - CNO reported consolidated financial results for the nine months ended September 30, 2025, with a focus on the performance of its insurance product lines: annuity, health, and life[243]. - For the nine months ended September 30, 2025, the total insurance product margin increased to $801.8 million, up from $786.9 million in 2024, representing a growth of 1.1%[263]. - The net operating income for the nine months ended September 30, 2025, was $295.8 million, compared to $291.3 million in 2024, reflecting a slight increase of 1.5%[263]. - The health margin for the nine months ended September 30, 2025, rose to $417.2 million, compared to $386.7 million in 2024, marking an increase of 7.9%[263]. - The annuity margin decreased to $182.2 million for the nine months ended September 30, 2025, down from $219.2 million in 2024, a decline of 16.9%[263]. - The life margin improved to $202.4 million for the nine months ended September 30, 2025, compared to $181.0 million in 2024, an increase of 11.9%[263]. - Operating earnings before taxes for the nine months ended September 30, 2025, were $379.7 million, slightly up from $376.9 million in 2024, an increase of 0.7%[263]. - The net income for the three months ended September 30, 2025, was $23.1 million, compared to $9.3 million in 2024, a significant increase of 148.4%[263]. Investment Performance - The investment segment's profitability is measured by total net investment income not allocated to insurance products, which includes various income sources and expenses related to corporate debt[251]. - Total net investment income increased by 4% to $310.4 million in Q3 2025, compared to $299.5 million in Q3 2024, and by 7% to $911.9 million in the first nine months of 2025, compared to $854.2 million in the same period of 2024[276]. - The investment income not allocated to product lines for the nine months ended September 30, 2025, was $111.3 million, up from $102.6 million in 2024, an increase of 8.5%[263]. - Net realized investment losses from disposals and impairments for the nine months ended September 30, 2025, were $43.8 million, compared to $37.6 million in 2024, an increase of 16.5%[263]. - The company recognized a decrease in pre-tax earnings of $18.1 million in Q3 2025 due to changes in the fair value of embedded derivative liabilities, compared to a decrease of $127.1 million in Q3 2024[307]. Regulatory and Economic Environment - CNO's operations are affected by economic uncertainties, including inflation and market volatility, which may impact financial performance[237]. - Future performance may be influenced by regulatory changes, interest rate risks, and the ability to generate sufficient liquidity for debt obligations[238]. - The company emphasizes the importance of maintaining effective controls over financial reporting and modeling to manage risks[239]. Business Segments - The Consumer Division engages with individual consumers through multiple sales channels, integrating agent sales forces with direct-to-consumer capabilities[249]. - The Worksite Division focuses on selling voluntary benefit life and health insurance products in workplaces, offering services to enhance benefits engagement[250]. Capital Management - The company plans to exit the fee services business, expecting to reduce annual fee revenue by approximately $30 million and increase annual pre-tax income by roughly $20 million[312]. - The expected operating earnings per diluted share for 2025 has been narrowed to a range of $3.75 to $3.85, down from a previous range of $3.70 to $3.90[313]. - The company is increasing its expected excess cash flow to the holding company to a range of $365 million to $385 million, up from $200 million to $250 million[316]. - The run rate operating ROE target is increased to a total improvement of 200 basis points through 2027, with an expected improvement of approximately 50 basis points in 2025[315]. - The company aims to maintain a consolidated RBC ratio of 375 percent for U.S. based insurance subsidiaries and a minimum holding company liquidity of $150 million[317]. Ratings and Financial Strength - Fitch, S&P, Moody's, and AM Best affirmed strong financial strength ratings for the company's primary insurance subsidiaries, indicating stable outlooks[332][333][334][335]. - As of September 30, 2025, the subsidiaries of CLTX reported a deficit of $563.6 million for Colonial Penn and an earned surplus of $1.0 million for Bankers Conseco Life Insurance Company[342]. - Free cash flow generated in the first nine months of 2025 was approximately $131.5 million, with $259.9 million used to repurchase 6.7 million shares of common stock[345]. Investment Portfolio - As of September 30, 2025, the total investment grade fixed maturities available for sale amounted to $22,299.1 million, with gross unrealized losses of $1,972.2 million[354]. - The total fixed maturities available for sale was $23,405.3 million, with an amortized cost of $25,219.3 million as of September 30, 2025[354]. - The company had no amounts outstanding under its $250 million Revolving Credit Agreement as of September 30, 2025, with no scheduled repayments until May 2029[344]. - The carrying value of investments held by VIEs was $296.8 million, with gross unrealized losses of $1.8 million as of September 30, 2025[372]. Expenses and Cost Management - Advertising expenses decreased to $14.8 million in Q3 2025 from $18.5 million in Q3 2024, reflecting a shift to more cost-effective advertising strategies[300]. - Expenses allocated to product lines were $151.0 million in Q3 2025, slightly down from $153.0 million in Q3 2024, while total allocated and unallocated expenses were $173.3 million in Q3 2025 compared to $168.6 million in Q3 2024[278][279].

Core Insights - The company reported strong financial performance with a return of $76 million to shareholders in the quarter and $310 million year to date, alongside a 6% increase in book value per diluted share to $38.1 [1][2][3] - The Consumer division achieved record total new annualized premiums of $125 million, reflecting a 26% increase, and continued strong insurance sales growth across both divisions [2][4] - The company is focused on improving profitability and has taken strategic actions expected to enhance operating return on equity (ROE) by an additional 50 basis points through 2027 [3][17] Financial Performance - Operating earnings per diluted share rose to $1.29, a 16% increase, driven by favorable insurance product margins and solid investment results [2][14] - The expense ratio was reported at 18.6% for the quarter, with a trailing twelve-month basis of 19% [14] - The company anticipates a favorable impact on earnings and ROE from exiting the worksite fee services business, which has not met financial performance expectations [10][16] Sales and Growth Metrics - The Consumer division has seen its life and health new annualized premiums (NAP) grow by 27%, with total life insurance up 33% and direct-to-consumer life insurance sales up 56% [4][11] - The health NAP increased by 21%, marking 13 consecutive quarters of growth, with Medicare Supplement policies up 33% [6][11] - Annuity collected premiums rose by 2% in the quarter, totaling nearly $475 million, and client assets in brokerage and advisory increased by 28% to surpass $5 billion [7][11] Strategic Initiatives - The company is exiting the worksite fee services business to focus on core insurance products, which have shown strong sales growth [10][12] - Investments in technology have enhanced customer experience and operational efficiency, with an 89% instant decision rate on simplified life products [8][11] - The company is exploring additional reinsurance transactions with Bermuda to improve its capital position and support middle-income consumers [13][17] Future Guidance - The company revised its operating return on equity target for 2027 to an improvement of 200 basis points, up from a previous target of 150 basis points [22][24] - The anticipated exit from the fee services business and the new Bermuda treaty are expected to contribute to a 50 basis point increase in operating ROE starting in Q4 2025 [17][22] - The guidance for excess cash flow to the holding company has been raised to a range of $365 million to $385 million, reflecting the impact of the new Bermuda reinsurance transaction [24]

Financial Data and Key Metrics Changes - Operating earnings per diluted share increased by 16% to $1.29, benefiting from favorable insurance product margins and solid investment results [5][14] - Total new annualized premiums reached a record $125 million, up 26%, marking the 13th consecutive quarter of strong insurance sales [4][5] - Book value per diluted share, excluding AOCI, rose by 6% to $38.10 [5] Business Line Data and Key Metrics Changes - Consumer division reported a 27% growth in Life and Health NAP, with total life insurance up 33% and direct-to-consumer life insurance sales up 56% [6][8] - Worksite division achieved record insurance sales with life and health NAP up 20%, marking the 14th consecutive quarter of overall NAP growth [12][13] - Annuity collected premiums increased by 2%, totaling nearly $475 million, with in-force account values exceeding $13 billion for the first time [8][9] Market Data and Key Metrics Changes - Medicare Supplement policies sold increased by 33%, while Medicare Advantage policies sold decreased by 24%, indicating a shift in consumer preferences [8][9] - Client assets in brokerage and advisory grew by 28%, surpassing $5 billion, with total accounts and average account size each up 13% [9] Company Strategy and Development Direction - The company plans to exit the worksite fee services business to focus on core insurance products, expecting this decision to improve earnings and return on equity [11][16] - A second Bermuda treaty was executed to seed approximately $1.8 billion of supplemental health U.S. statutory reserves, enhancing the company's ability to serve middle-income consumers [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth across both divisions, despite tougher comparisons in the consumer segment [75] - The exit from the fee services business is expected to lead to a favorable impact on earnings and return on equity starting in Q4 2025 [16][20] Other Important Information - The company returned $76 million to shareholders in the quarter and $310 million year-to-date [5] - The average yield on allocated investments was 4.91%, up 10 basis points year-over-year, contributing to a 7% increase in net investment income [18] Q&A Session Summary Question: Strong D2C sales contribution from new partnerships - Management noted selective partnerships are contributing to growth, particularly in the Hispanic market, and expects continued growth despite a pull forward in advertising expenses [24][25] Question: Impact of exiting the fee services business - The annual earnings loss from the fee services business will improve the fee income segment by about $20 million [26] Question: Opportunities for additional transactions with Bermuda - Management is exploring opportunities to seed additional business, particularly in life insurance, to enhance diversification [30] Question: Claims trends in Medicare supplement business - Management confirmed that the annual assumption update incorporated current trends, with expectations for a 10% average rate increase in filings for the upcoming year [68][69] Question: Future cash benefits from exiting fee services - Management indicated that the $20 million freed up from the fee services business will have a cash impact, aligning with GAAP accruals [51]