Cigna earnings beat by $0.04, revenue topped estimates
NEW YORK - CNO Financial Group (NYSE:CNO) reported second-quarter adjusted earnings that slightly exceeded analyst expectations, as the company continues to make progress toward its 2025-2027 return on equity targets. Shares edged up 0.5% following the announcement.
The middle-income focused insurer posted adjusted earnings of $0.87 per share for the quarter, beating the analyst consensus of $0.86. Revenue came in at $1.15 billion, significantly above the consensus estimate of $747.79 million. However, earnings declined compared to the same period last year when the company reported adjusted earnings of $1.05 per share.
Total (EPA:TTEF) new annualized premiums grew 17% year-over-year, with life insurance premiums up 22% and health insurance premiums increasing 11%. Annuity collected premiums rose 19%, while client assets in brokerage and advisory services jumped 27%.
"Our consistent, repeatable results demonstrate the steady execution of our strategic plan and continue to position us for sustained, profitable growth," said Gary C. Bhojwani, CEO of CNO Financial Group. "Second quarter 2024 earnings were elevated relative to our typical run rate, thereby impacting 2025 comparables. Operating earnings per share are up 6% year-to-date, in line with expectations."
The company returned $116.7 million to shareholders during the quarter, including $100 million in share repurchases and $16.7 million in dividends. CNO maintained a solid capital position with a consolidated statutory risk-based capital ratio estimated at 378%.
Book value per diluted share, excluding accumulated other comprehensive loss, was $38.05 at the end of the quarter, up 6% from $36.00 a year earlier. Operating return on equity for the trailing twelve months was 11.8%, compared to 11.2% in the prior-year period.
The company’s debt-to-capital ratio improved to 34.6% from 42.2% at the end of 2024, primarily due to the repayment of the 2025 Notes in the second quarter.
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