CNO Financial Group's Q4 2024: Unpacking Contradictions on Interest Rates, Bermuda Growth, and Cash Flow Guidance

These are the key contradictions discussed in CNO Financial Group's latest 2024Q4 earnings call, specifically including: Interest Rate Impact on Net Interest Income, Bermuda Opportunities, Free Cash Flow Guidance, and Surrender Trends:



Strong Financial Performance:
- CNO Financial Group reported operating earnings per diluted share of $3.97, an increase of 28%, with a non-GAAP increase of 40%.
- This growth was supported by strong sales records, insurance product margins, and disciplined expense management.

Consumer Division Growth:
- The Consumer Division saw a 5% increase in total NAP for the full year, with field agent NAP growing by 10%.
- Medicare Supplement NAP was up 26%, and Medicare Advantage policies sold increased by 14%, driven by strong agent productivity and new product offerings.

Worksite Division Expansion:
- Worksite Division insurance sales grew by 16% for the full year and 23% in Q4, marking the 11th consecutive quarter of growth.
- This growth was due to new insurance products, geographic expansion, and increased NAP from new group clients.

Investment and Capital Management:
- New money rates exceeded 6% for eight consecutive quarters, with the average yield on allocated investments at 4.87%, up 19 basis points year-over-year.
- The company deployed $282 million in share repurchases, with a free cash flow of $284 million to the holding company, demonstrating strong capital management and return of excess capital to shareholders.