Q4 2024 CNO Financial Group Inc Earnings Call Transcript
Key Points
- CNO Financial Group Inc (CNO) delivered its 10th consecutive quarter of sales growth and its most productive year ever for the banker live field force.
- Operating earnings per diluted share increased by 28%, with a 40% increase when excluding significant items.
- Capital and liquidity were well above target levels, with $349 million returned to shareholders, a 50% increase over 2023.
- The consumer division saw a 5% increase in total new annualized premium, with significant growth in Medicare supplement and Medicare Advantage policies.
- The worksite division achieved record full-year insurance sales, up 16%, and record fourth-quarter insurance sales, up 23%.
- Live production was down for the year, driven by high lead costs in direct-to-consumer television advertising.
- The expense ratio was at the high end of the guided range due to incentive compensation accruals.
- The favorable impact on insurance product margins from reserve releases due to higher mortality is not expected to continue.
- The company is facing pressure on fee income due to a sales mix shift to smaller Medicare Advantage providers.
- The upcoming technology modernization initiative is expected to cost approximately $170 million over three years, which may put pressure on expenses.
Morning all thank you for joining us for the CNO Financial Group fourth quarter 2024 earnings call. My name is [Carley] and I'll be coordinating your call today. (Operator Instructions). And then I turned over to your host, Adam Orville. The floor is yours.
Good morning and thank you for joining us on CNO Financial Group's fourth quarter, 2024 earnings conference call. Today's presentation will include remarks from Gary Bagiwani, Chief Executive Officer and Paul McDonough, Chief Financial Officer. Following the presentation. We will also have other business leaders available for the question and answer period. During this conference call, we will be referring to information contained in yesterday's press release.
You can obtain the release by visiting the media section of our website at cnoinc.com. This morning's presentation is also available in the investors section of our website and was filed in a Form 8-K yesterday. Let me remind you that any forward-looking statements we make today are subject to
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