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Continued strong production and solid earnings; Increasing 2027 ROE target by 50 basis points CARMEL, Ind., Nov. 3, 2025 /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) today reported net income of $23.1 million, or $0.24 per diluted share, in 3Q25 compared to $9.3 million or $0.09 per diluted share, in 3Q24. Non-economic accounting impacts due to market volatility decreased net income in both 3Q25 and 3Q24. Net operating income,(1) which excludes these non-economic accounting impacts as well as other non-operating items, principally a goodwill and intangible impairment, was $127.2 million, or $1.29 per diluted share, in 3Q25 compared to $119.2 million, or $1.11 per diluted share, in 3Q24. Significant items(6) positively impacted both net income and net operating income(1) by $32.2 million, or $0.33 per diluted share, in 3Q25 compared to $21.9 million, or $0.19 per diluted share, in 3Q24. "Results in the quarter demonstrate the strength of the CNO business model," said Gary C. Bhojwani, chief executive officer. "Continued sales growth and expanding underwriting margins underscore our momentum. We're generating consistent, repeatable results across both our Consumer and Worksite Divisions, with record Direct-to-Consumer and Worksite insurance sales in the third quarter." "We continue to advance our strategic roadmap, highlighted by executing our second reinsurance transaction with our Bermuda affiliate. In October, we also made the decision to streamline our Worksite Division operations by exiting the fee services side of this business. This step enables us to sharpen our focus on our high-growth insurance offerings. We expect these actions will accelerate ROE improvement through 2027. CNO enters the fourth quarter with considerable momentum and a strong financial position." Third Quarter 2025 Highlights (as compared to the corresponding period in the prior year unless otherwise stated) Total new annualized premiums ("NAP")(4) up 26%; Total Life NAP up 32%; Total Health NAP up 20%Consumer Division NAP up 27%; Worksite Division NAP up 20%Annuity account value up 8%; Client assets in brokerage and advisory up 28%Increasing run rate operating return on equity ("ROE") target by 50 basis points for 200 basis points of total improvement through 2027 (off 2024 run rate of 10%)Returned $76.4 million to shareholdersBook value per share was $27.24; Book value per diluted share, excluding accumulated other comprehensive loss,(2) was $38.10, up 6%ROE of 12.5%; Operating ROE(5) of 12.1% Other Announcements The company recognized third quarter non-cash goodwill and other asset impairments in non-operating income that relate to the acquisitions of Web Benefits Design and DirectPath in 2019 and 2021, respectively.CNO's wholly-owned Bermuda reinsurance company executed its second transaction, reinsuring $1.8 billion of inforce supplemental health statutory reserves from Washington National Insurance Company ("Washington National"), a CNO subsidiary, effective October 1, 2025. Additionally, 50% of new supplemental health business written by Washington National will be ceded to the Bermuda company as part of the agreement.In October 2025, the company decided to streamline its Worksite Division operations and sharpen its focus on the Division's core insurance business by exiting the fee services side of the Worksite business, which includes services acquired in the Web Benefits Design and DirectPath acquisitions. The exit is expected to be substantially complete in the first half of 2026. Once complete, the company expects the exit from this business to reduce annual fee revenue by roughly $30 million (<1% of total revenue) and increase annual pre-tax income by roughly $20 million. FINANCIAL SUMMARY Quarter End (Amounts in millions, except per share data) (Unaudited) Net operating income, a non-GAAP(a) financial measure, 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 certain 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.
