1. CNO reported $166.1M net income for Q4 2024, up 357%. 2. Full-year net income increased to $404M, 46% growth from 2023. 3. Operating earnings per share rose 41% for the quarter, 40% for the year. 4. CNO returned $349M to shareholders, reflecting a 50% increase. 5. The company aims for sustained growth, well-positioned for 2025.
Strong earnings and growth signal a positive outlook for CNO's stock.
The significant increase in income and dividends indicates strong financial health and potential stock appreciation.
Consistent sales and earnings growth suggest sustained future performance.
CARMEL, Ind., Feb. 6, 2025 /PRNewswire/ -- CNO Financial Group, Inc. (NYSE: CNO) today announced its financial results for the fourth quarter and full year ended December 31, 2024.
Net income in 4Q24 was $166.1 million, or $1.58 per diluted share, compared to $36.3 million, or $0.32 per diluted share, in 4Q23. Net income for the year ended December 31, 2024 was $404.0 million, or $3.74 per diluted share, compared to $276.5 million, or $2.40 per diluted share, in 2023. Non-economic accounting impacts due to market volatility increased net income in 4Q24 and full year 2024, and decreased net income in 4Q23 and full year 2023.
Net operating income (1), which excludes these non-economic accounting impacts, was $138.0 million, or $1.31 per diluted share, in 4Q24 compared to $133.9 million, or $1.18 per diluted share, in 4Q23. Net operating income (1) for the year ended December 31, 2024 was $429.3 million, or $3.97 per diluted share, compared to $356.1 million, or $3.09 per diluted share, in 2023.
In 4Q24, both net income and net operating income (1) were unfavorably impacted by significant items of $3.1 million, or $0.03 per diluted share, compared to a favorable impact in 4Q23 of $26.4 million, or $0.23 per diluted share. For the year, both net income and net operating income (1) were favorably impacted by significant items of $18.8 million, or $0.17 per diluted share, in 2024 and $43.3 million, or $0.37 per diluted share, in 2023.
"CNO delivered an exceptional quarter and full-year financial performance, demonstrating our ability to grow the franchise while also growing earnings and improving profitability," said Gary C. Bhojwani, chief executive officer. "Building on 10 consecutive quarters of sales growth and strong agent force metrics, 2024 represented one of CNO's best operating performances of the past several years, highlighted by production records across both divisions."
"Operating earnings per share excluding significant items were up 41% for the quarter and 40% for the year, as sustained sales growth continued to translate into earnings growth. Significant improvement in operating earnings per share and operating return on equity reflect ongoing strength in our underwriting margins and net investment income coupled with expense and capital discipline. Our capital position and free cash flow generation remained robust, while returning $349 million to shareholders, a 50% increase from 2023."
"As we enter 2025, CNO continues to be well-positioned to continue profitable growth, capitalize on the favorable macro and demographic environment, and drive long-term ROE expansion."
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.
| Per diluted share | Quarter ended | Quarter ended | % change |
|---|---|---|---|
| Income from insurance products (b) | $ 1.01 | $ 1.19 | (15) |
| Fee income | 0.20 | 0.16 | 25 |
| Investment income not allocated to product lines (c) | 0.62 | 0.34 | 82 |
Net realized investment gains (losses) from sales and change in allowance for credit losses averaged a specific amount in a particular quarter.
This press release may contain forward-looking statements within the meaning of federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to CNO's cautionary statement regarding forward-looking statements.
For more information, visit CNOinc.com.