CNO Financial Group Off to a Solid Start in Q1 2025: Delivering on Growth and Profitability Goals
CNO Financial Group, a leading provider of life insurance and annuities, has reported a strong start to the year with its first quarter 2025 earnings call. The company's CEO, Gary Bhojwani, highlighted the solid performance in various divisions, including consumer, production, distribution, and investments.
According to the conference call transcript, CNO Financial Group's operating earnings per diluted share were $0.79, up 52% from the same period last year, excluding significant items. This growth is attributed to favorable insurance product margins and strong investment results, reflecting expansion of the portfolio book yield. New money rates have exceeded 6% for nine consecutive quarters, demonstrating the company's ability to navigate volatility.
The consumer division, in particular, posted another solid start to the year, with annuity collected premiums up 12%, a seventh consecutive quarter of growth. Account values were up 7%, and premium per policy was up 19%. This strong performance comes on the heels of a record 2024, further solidifying CNO's position as a leader in the life insurance and annuities market.
Additionally, the company's captive distribution and long-term relationships with clients enable stability in its block of business. Brokerage and advisory growth continued for the eighth consecutive quarter, with client assets up 16% for the quarter. New accounts were up 13%, and average account size was up 3%. Persistency remains strong among investment clients, further demonstrating CNO's commitment to delivering value to its customers.
The company also reaffirmed its full-year 2025 and three-year return on equity (ROE) guidance, reinforcing its commitment to grow earnings while improving profitability. Capital and liquidity remain well above target levels after returning $117 million to shareholders. Book value per diluted share, excluding accumulated other comprehensive income (AOCI), was up 6% at $37.03.
Looking ahead to the balance of the year, CNO remains focused on leveraging its business model to enable sustained profitable growth, executing on strategic priorities, and driving ROE expansion. The company's track record demonstrates its ability to navigate volatility, and with all but one of its growth scorecard metrics up for the quarter, CNO is well-positioned to meet its goals.
