Achieved, and in most cases exceeded, all 2025 guidance metrics.
Fourth quarter 2025 net income was $93 million, or $0.95 per diluted share, and net operating income(1) was $143 million, or $1.47 per diluted share.
Full year 2025 net income was $229 million, or $2.30 per diluted share, and net operating income(1) was $439 million, or $4.40 per diluted share.
Return on equity (ROE) of 8.9%; Operating ROE of 11.4%, excluding significant items(5).
Book value per share of $27.92 and book value per diluted share, excluding accumulated other comprehensive loss,(2) of $38.81.
Consistent sales momentum drove meaningful earnings growth as operating earnings per share grew 11%.
Total new annualized premiums (NAP)(4) growth, up 15%, accelerated to a new full-year record for the company.
"CNO once again delivered an excellent quarter and full-year performance, demonstrating the consistent, repeatable results that continue to drive our momentum," said Gary C. Bhojwani, chief executive officer. "We posted our 14th consecutive quarter of strong insurance sales, with total new annualized premiums up 15% for the year, and set multiple production records that underscore the strength of our business model."
"Operating earnings per share grew 11%, supported by strong insurance product margin and investment results, growth in the business, and disciplined expense and capital management. For the year, we returned $386 million to shareholders, an 11% increase from 2024. This reflects the healthy free cash flow generation of the business, bolstered by our second reinsurance transaction with our Bermuda affiliate."
"Our associates and agents continued to execute with focus and dedication, enabling us to grow the franchise while improving profitability and advancing our long-term strategic roadmap. We enter 2026 with a strong capital position and a path to achieving our 2027 ROE target."
FINANCIAL SUMMARYQuarter End(Amounts in millions, except per share data) (Unaudited)
Net operating income, a non-GAAP(a) financial measure, excludes these non-economic accounting impacts as well as other non-operating items. Net operating income is used consistently by CNO's management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes the non-operating items as defined in note (1). Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.
In 4Q25, net income and net operating income(1) were unaffected by significant items, compared to unfavorable impacts in 4Q24 of $3.1 million, or $0.03 per diluted share. Significant items are detailed in note (6).
Per diluted share
Quarter ended December 31,
Quarter ended December 31,
2025
2024
% change
2025
2024
% change
Income from insurance products (b)
$ 1.19
$ 1.01
18 %
$ 116.1
$ 107.0
9 %
Fee income
0.19
0.20
(5)
19.1
20.6
(7)
Investment income not allocated to product lines (c)
0.60
0.62
(3)
58.1
65.3
(11)
Expenses not allocated to product lines
(0.20)
(0.18)
11
(19.8)
(19.0)
4
Operating earnings before taxes
1.78
1.65
173.5
173.9
Income tax expense on operating income
(0.31)
(0.34)
(9)
(30.1)
(35.9)
(16)
Net operating income (1)
1.47
1.31
12
143.4
138.0
4
Net realized investment losses from disposals,impairments and change in allowance for credit losses
(0.26)
(0.33)
(25.2)
(35.1)
Net change in market value of investments recognized in earnings
(0.01)
(0.06)
(1.3)
(6.6)
Changes in fair value of embedded derivativeliabilities and market risk benefits
(0.02)
0.88
(1.5)
92.6
Expenses related to TechMod initiative
(0.10)
—
(9.9)
—
Goodwill and other asset impairment
(0.05)
—
(5.2)
—
Net loss related to divested business
(0.18)
—
(17.3)
—
Other
(0.02)
0.07
(1.7)
7.3
Non-operating income before taxes
(0.64)
0.56
(62.1)
58.2
Income tax expense on non-operating income
0.12
(0.13)
11.6
(13.3)
Net non-operating income
(0.52)
0.43
(50.5)
44.9
Net income
$ 0.95
$ 1.74
$ 92.9
$ 182.9
Weighted average diluted shares outstanding
97.3
105.2
FINANCIAL SUMMARY Year End (Amounts in millions, except per share data) (Unaudited)
Net income decreased in 2025 and increased in 2024 due to non-economic accounting impacts resulting from market volatility. Net income also decreased in 2025 due to a goodwill and intangible asset impairment.
Net operating income, a non-GAAP(a) financial measure, excludes these non-economic accounting impacts as well as other non-operating items including the goodwill and intangible asset impairment. Net operating income is used consistently by CNO's management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes the non-operating items as defined in note (1). Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.
Net income and net operating income(1) were favorably impacted by significant items of $37.5 million, or $0.38 per diluted share, in 2025 and $18.8 million, or $0.17 per diluted share, in 2024. Significant items are detailed in note (6).
Per diluted share
Year ended December 31,
Year ended December 31,
2025
2024
% change
2025
2024
% change
Income from insurance products (b)
$ 4.57
$ 3.93
16 %
$ 456.3
$ 424.7
7 %
Fee income
0.15
0.28
(46)
15.2
30.0
(49)
Investment income not allocated to product lines (c)
1.70
1.55
10
169.4
167.9
1
Expenses not allocated to product lines
(0.88)
(0.67)
31
(87.7)
(71.8)
22
Operating earnings before taxes
5.54
5.09
553.2
550.8
Income tax expense on operating income
(1.14)
(1.12)
2
(114.0)
(121.5)
(6)
Net operating income (1)
4.40
3.97
11
439.2
429.3
2
Net realized investment losses from disposals, impairments and change in allowance for credit losses
(0.69)
(0.67)
(69.0)
(72.7)
Net change in market value of investments recognized in earnings
0.14
0.21
14.3
22.8
Changes in fair value of embedded derivative liabilities and market risk benefits
(0.64)
0.43
(64.0)
46.3
Expenses related to TechMod initiative
(0.20)
—
(20.3)
—
Goodwill and other asset impairment
(1.02)
—
(101.9)
—
Net loss related to divested business
(0.17)
—
(17.3)
—
Other
(0.02)
(0.07)
(1.6)
(7.3)
Non-operating income before taxes
(2.60)
(0.10)
(259.8)
(10.9)
Income tax expense on non-operating income
0.50
0.02
49.9
2.4
Net non-operating income
(2.10)
(0.08)
(209.9)
(8.5)
Net income
$ 2.30
$ 3.89
$ 229.3
$ 420.8
Weighted average diluted shares outstanding
99.8
108.1
____________________
(a) GAAP is defined as accounting principles generally accepted in the United States of America.
(b) Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance product lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Insurance product margin is management's measure of the profitability of its annuity, health and life segments' performance and consists of insurance policy income plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs.
(c) Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing arrangements; (iv) expenses related to the funding agreement-backed notes ("FABN") program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our federal home loan bank ("FHLB") investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from company-owned life insurance ("COLI") and alternative investments income not allocated to product lines), net of interest expense on corporate debt and financing arrangements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program.
FINANCIAL SUMMARY (continued)Management vs. GAAP Measures(Dollars in millions, except per share data)(Unaudited)
Shareholders' equity, excluding accumulated other comprehensive income (loss), and book value per share, excluding accumulated other comprehensive income (loss), are non-GAAP measures that are utilized by management to view the business without the effect of accumulated other comprehensive income (loss) which is primarily attributable to fluctuations in interest rates associated with fixed maturities, available for sale. Management views the business in this manner because the Company has the ability and generally, the intent, to hold investments to maturity and meaningful trends can be more easily identified without the fluctuations. In addition, shareholders' equity excludes net operating loss carryforwards in our non-GAAP return on equity measures as such assets are not discounted and, accordingly, will not provide a return to shareholders until after it is realized as a reduction to taxes that would otherwise be paid. Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns.
___________________________________________________________________________________________________
Year ended
December 31,
2025
2024
Trailing four quarters:
Net Income
$ 229.3
$ 420.8
Net operating income (a non-GAAP financial measure)
439.2
429.3
Net operating income, excluding significant items
401.7
410.5
Average of each of the trailing four quarters average:
Shareholders' equity
$ 2,566.4
$ 2,462.5
Accumulated other comprehensive loss
1,213.4
1,383.7
Shareholders' equity, excluding accumulated other comprehensive loss
3,779.8
3,846.2
Net operating loss carryforwards
(243.1)
(240.0)
Shareholders' equity, excluding accumulated other comprehensive loss and net operating loss carryforwards
$ 3,536.7
$ 3,606.2
Ratios:
