On November 6, 2023, CNO Financial Group Inc (CNO, Financial) released its earnings report for the third quarter of 2023. The company reported a net income of $167.3 million, or $1.46 per diluted share, a slight decrease from $175.9 million, or $1.52 per diluted share, in the same quarter of the previous year. However, net operating income saw an increase, standing at $101.3 million, or $0.88 per diluted share, in Q3 2023, compared to $77.9 million, or $0.67 per diluted share, in Q3 2022.
Financial Performance and Highlights
Despite the slight decrease in net income, CNO Financial Group Inc (CNO, Financial) reported solid third-quarter results, with total new annualized premiums up by 13%. The company's CEO, Gary C. Bhojwani, attributed the strong financial performance to robust underwriting margins and net investment income results. He also highlighted the company's successful implementation of new products, programs, and tech-enabled efficiency initiatives, which have driven sustained sales growth and enhanced customer value.
We are pleased with our financial performance in the quarter, led by both strong underwriting margins and net investment income results," said Gary C. Bhojwani, chief executive officer. "New products, programs to increase the number and productivity of our agents, and tech-enabled efficiency initiatives implemented over the last several quarters continue to drive sustained sales growth and enhanced customer value."
Other notable highlights for the third quarter of 2023 include a 14% increase in total Health insurance new annualized premiums and an 11% increase in total Life insurance new annualized premiums. The Consumer Division saw a 9% increase in new annualized premiums and a 9% increase in field producing agent count. The Worksite Division reported a 36% increase in new annualized premiums and a 24% increase in producing agent count.
Investments and Capital Position
CNO Financial Group Inc (CNO, Financial) also announced the launch of its Bermuda affiliate and the implementation of its initial reinsurance transaction. The company returned $56.9 million to shareholders in Q3 2023. The book value per share was $16.85, while the return on equity stood at 14.5%. The operating return on equity, as adjusted, was 8.5%.
Outlook
Despite the slight decrease in net income, CNO Financial Group Inc (CNO, Financial) remains well-positioned to execute its strategy to serve middle-income America and deliver shareholder value. The company's strong underwriting margins, net investment income results, and sustained sales growth indicate a positive trend moving forward.
Explore the complete 8-K earnings release (here) from CNO Financial Group Inc for further details.
