CNO Financial Group recently held its Second Quarter 2024 Earnings Call, highlighting a robust financial performance across the enterprise. The company reported operating earnings per diluted share of $1.05, marking a 94% increase from the previous year. This performance was driven by strong sales growth, favorable insurance product margins, and investment results.

Operating Performance and Growth

CNO's financial performance was broad-based, with significant growth across earnings, production, and capital. The company saw an eighth consecutive quarter of sales production growth and a sixth consecutive quarter of growth in producing agent counts. Total new annualized premium increased by 4% across the enterprise, reflecting the company's consistent and repeatable results.

The Consumer division, in particular, showed solid sales momentum, with sales up 2% and a 8% increase in new money rate for the sixth consecutive quarter. The Medicare portfolio, a key focus for CNO, experienced strong sales growth, with Medicare Supplement NAP up 16% and Medicare Advantage sales up 78%. The company's Long-Term Care products also showed notable growth, with an 88% increase in Long-Term Care NAP, underscoring the growing demand for practical long-term care solutions.

The Worksite division also performed exceptionally well, posting a second-highest quarter ever for Life and Health NAP with sales up 18%. Fee sales were up 24%, reflecting the annual contract value of benefit services sold in the quarter, and a leading indicator of fee revenue growth. Producing agent count was up 25%, marking the ninth consecutive quarter of growth.

Financial Highlights and Capital Position

CNO's financial highlights were equally impressive, with net operating income up 84% and hold dollars up 94% on a per share basis. The company's capital position remains strong, with a consolidated RBC ratio of 394% and available Holdco liquidity of $429 million. The company's investment income was up 12%, driven by the new money rate of 6.41% and a larger-than-trend increase due to portfolio optimization trades.

Future Outlook and Guidance

Looking ahead, CNO raised its guidance on operating earnings per share to $3.30 to $3.50 for the full year, excluding significant items. This reflects the strong second quarter results and a modest improvement in the outlook for the second half of the year. The company also raised its guidance on excess cash flow to the holding company to $200 million to $250 million, primarily driven by higher statutory earnings and refined expectations on capital consumption within the operating companies.

Conclusion

CNO Financial Group's Second Quarter 2024 Earnings Call underscored the company's strong financial performance and growth across all divisions. The company's focus on production, distribution, and investments in capital, combined with a robust capital position and strong liquidity, positions CNO well for continued success in the future. With a solid foundation of consistent and repeatable results, CNO remains committed to delivering value to its clients and shareholders.