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CNO Financial Group: Financial Results for Q4 and Full Year 2024

CNO Financial Group, Inc. (NYSE: CNO) recently released its financial results for the fourth quarter and full year ending December 31, 2024, showing significant growth and strong performance metrics. For the fourth quarter of 2024, the company achieved a net income of $166.1 million, or $1.58 per diluted share, a substantial increase compared to $36.3 million or $0.32 per diluted share recorded in the same period last year.

Net income for the full year reached $404.0 million, equating to $3.74 per diluted share, a notable rise from $276.5 million or $2.40 per diluted share in 2023. Despite the favorable changes in net income for Q4 2024, the company experienced some non-economic accounting impacts, primarily due to market fluctuations that affected both quarters.

Key Financial Highlights

In Q4 2024, the net operating income, which adjusts for these non-economic impacts, stood at $138.0 million, or $1.31 per diluted share, compared to $133.9 million, or $1.18 per diluted share from Q4 2023. For the full year, net operating income climbed to $429.3 million, translating to $3.97 per diluted share, up from $356.1 million or $3.09 per diluted share in the prior year.

CNO's CEO, Gary C. Bhojwani, commented on the company's exceptional performance, stating, “CNO delivered an exceptional quarter and full-year financial performance, demonstrating our ability to grow while enhancing earnings and profit margins.” 2024 marked the tenth consecutive quarter of sales growth, indicating robust market positioning and operational efficiency.

Sales Growth and Market Position

The fourth quarter witnessed a 13% increase in total new annualized premiums (NAP), with record NAP in the Worksite Division, which rose by 23%. Additionally, the Consumer Division experienced a 11% uptick. Overall, the record collection of annuity premiums surged by 12%, contributing significantly to CNO’s impressive results.

On a yearly basis, there was a 7% growth in total NAP, with notable improvements in key sectors: Worksite Division NAP increased by 16%, and Consumer Division NAP by 5%. CNO also reported a strong 16.4% return on equity (ROE) for 2024 and an operating ROE of 11.9%, showcasing the company’s stable and sustainable financial foundation.

Shareholder Returns

CNO Financial Group is committed to returning value to its shareholders, having returned $349 million in 2024, marking a 50% increase from the previous year. The book value per share at the end of 2024 was reported at $24.59, reflecting a 10% rise from $20.26 in 2023.

The company’s proactive stance in managing its capital position allowed it to repurchase $91.6 million of common stock during Q4 2024. Furthermore, the steady increase in unrestricted cash and investments helps provide long-term financial stability.

Future Outlook for 2025

As CNO Financial Group progresses into 2025, the outlook remains positive with expectations for continued profitable growth. The company is poised to leverage favorable macroeconomic conditions and demographic trends while driving long-term ROE expansion. With a solid operational framework in place, CNO aims to capitalize on existing strengths while pursuing new growth opportunities.

In summary, CNO Financial’s performance in 2024 highlights its adeptness in navigating market challenges while positioning itself for future successes. Investors and stakeholders can look forward to a promising year ahead as the company takes strategically planned steps to enhance its market footprint and shareholder value.