CNO Financial's 2025 Q2 Earnings Call: Navigating Contradictions in D2C Growth, LTC Claims, and Medicare Strategy

Strong Financial Performance:
- CNO Financial Group reported record total new annualized premiums of $120 million in Q2 2025, up 17%.
- The growth was driven by double-digit insurance sales growth in both divisions and record sales in multiple product lines.
- The company's operating earnings per diluted share was $0.87, benefiting from favorable insurance product margins and solid investment results.

Annuity and Brokerage Growth:
- Annuity collected premiums reached a record $500 million, up 19%, marking the eighth consecutive quarter of growth.
- Brokerage and advisory client assets grew by 27% to $4.6 million, with new accounts up 13% and average account size up 12%.
- This growth reflects a critical need among middle-income consumers for professional guidance in retirement products.

Worksite Division Performance:
- The Worksite division achieved record insurance sales, with NAP up 16%, marking the sixth consecutive quarter of record growth.
- Highlights included record life insurance sales up 54% and hospital indemnity insurance up 22%.
- Growth was attributed to geographic expansion, new group clients, and strong agent productivity.

Investment and Capital Management:
- The company returned $117 million to shareholders in Q2 and $234 million year-to-date, with book value per diluted share excluding AOCI at $38.05, up 6%.
- The trailing 12-month operating return on equity was 11.8%, aligning with expectations despite lower yields from alternative investments.