CNO Financial Group Shatters Records and Delivers Exceptional Quarter with Sustained Profitable Growth
CNO Financial Group, a leading provider of life insurance and annuities, has made headlines with its outstanding fourth-quarter performance in 2024. The company's latest conference call transcript highlights an exceptional quarter, marked by sustained profitable growth, record sales, and impressive financial results.
According to Gary Bhojwani, Chief Executive Officer of CNO Financial Group, the company delivered a standout year, highlighted by sales records in both the Consumer and Worksite divisions. This year's performance demonstrates the company's proven commitment to leverage its business model to enable sustained profitable growth, execute on strategic priorities, and drive Return on Equity (ROE) expansion.
One of the most notable achievements was the delivery of the tenth consecutive quarter of sales growth, with total new annualized premium rising by 7% across the enterprise. The company's strong results were broad-based, encompassing earnings, production, investment results, and capital. This was further accentuated by the eighth consecutive quarter in producing agent counts and the most productive year ever for the Bankers Life field force.
The Consumer division, specifically, delivered an outstanding performance, with record sales across multiple product categories. The total new annualized premium (NAP) in the Consumer division rose by 5% for the full year, led by 10% sales growth in field agent NAP. Health NAP was up 18% for the year, driven by the continued strength of new and enhanced products, while Medicare Supplement NAP increased by 26%, and Medicare Advantage policies sold were up 14%. The company also achieved a record number of MA policies submitted during the quarter, with a 39% increase.
Paul McDonough, Chief Financial Officer, further highlighted the company's financial prowess, citing strong underwriting margins, favorable net investment income, and expense discipline. Operating earnings per diluted share rose to $3.97, an increase of 28%, or 40% excluding significant items. The company's capital and liquidity were well above target levels, with a return of $349 million to shareholders this year, representing a 50% increase over the previous year.
The company also demonstrated its commitment to shareholder value by raising its quarterly common stock dividend for the 12th consecutive year. Book value per diluted share, excluding Accumulated Other Comprehensive Income (AOCI), stood at $37.19, up 10%. This outstanding performance was reflected in an all-time high share price and impressive growth in nearly all product categories.
CNO Financial Group's exceptional quarter has solidified its position as a leader in the life insurance and annuities industry. The company's ability to deliver sustained profitable growth, execute on strategic priorities, and drive ROE expansion sets it apart from its peers. As the company continues to push boundaries and achieve new heights, investors and analysts alike will be watching with great interest to see what the future holds for this dynamic organization.
