CNO Financial Group Reports First Quarter 2026 Results
Rhea-AI Summary
CNO Financial (NYSE: CNO) reported Q1 2026 results: net income $38M ($0.39 diluted) and net operating income $101M ($1.05 diluted). Trailing four-quarter ROE was 9.5% and operating ROE excluding significant items 12.2%. Book value per share was $26.64 and book value per diluted share excluding AOCI $38.98. Total new annualized premiums rose 11% and Medicare policies sold increased 24%. The quarter included $13.7M of TechMod expenses and $15.2M of net investment losses. The company repurchased $60M of common stock (1.4M shares).
AI-generated analysis. Not financial advice.
Positive
- Operating EPS +33% in Q1 2026
- Net operating income of $101.3M in Q1 2026
- Total new annualized premiums (NAP) +11% year-over-year
- Medicare policies sold +24% in Q1 2026
- Share repurchases of $60.0M (1.4M shares) in Q1 2026
Negative
- Net income of $38M impacted by market volatility and investment losses
- TechMod initiative expenses of $13.7M in Q1 2026
- Available-for-sale fixed maturities: $2,273.2M gross unrealized losses
- Unfavorable net investment losses of $15.2M in Q1 2026
News Market Reaction – CNO
On the day this news was published, CNO gained 0.40%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CNO gained 0.2% while key peers were mixed: GNW (-0.44%), FG (-0.7%), BHF (+0.23%), JXN (+0.05%), PRI (-0.16%). With no peers in momentum scanners and no same-day peer headlines, the reaction appears stock-specific.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 05 | Q4 2025 earnings | Positive | +5.5% | Strong Q4 and full-year 2025 results with operating EPS and ROE growth. |
| Nov 03 | Q3 2025 earnings | Positive | +4.3% | Higher net operating income, strong NAP growth, and capital return to shareholders. |
| Jul 28 | Q2 2025 earnings | Negative | -1.6% | Net and operating income down versus prior year despite strong premium growth. |
| Apr 28 | Q1 2025 earnings | Neutral | -4.8% | Mixed quarter with net income down but operating income and premiums improving. |
| Feb 06 | Q4 2024 earnings | Positive | +2.6% | Strong Q4 and full-year 2024 net income, premium growth, and higher ROE. |
Earnings releases have generally produced positive reactions, with four of the last five tagged earnings events seeing price gains or moves consistent with the underlying results; the main exception was a sharp selloff on mixed Q1 2025 numbers.
Over the last five earnings releases, CNO has highlighted rising operating earnings, strong new annualized premiums, and consistent capital return. Events on Feb 06, 2025 and Nov 03, 2025 featured higher net operating income and premium growth, with positive price reactions. Q1 2025 results on Apr 28, 2025 were mixed, with net income down but operating income up, and the stock sold off. The latest Q4 2025 report on Feb 05, 2026 showed continued operating EPS growth and solid ROE, which the market rewarded.
Historical Comparison
In the last five earnings releases, CNO’s average one-day move was 1.22%, usually positive when operating earnings and premiums grew, suggesting markets often reward solid execution but can punish mixed results.
The earnings history shows a progression of growing operating EPS, rising new annualized premiums, and solid ROE from 2024 through 2025. Capital returns to shareholders have been consistent, and management has emphasized ROE targets and reinsurance optimization across successive quarters.
Market Pulse Summary
This announcement reports higher net operating income of $101 million, a 33% increase in operating EPS, and double-digit growth in new annualized premiums and Medicare policies. It also details capital strength, including a 375% statutory risk-based capital ratio and active share repurchases. In context of prior earnings, investors may focus on the balance between GAAP net income, non-operating volatility, and continued execution on sales growth and ROE targets.
Key Terms
net operating income financial
return on equity financial
accumulated other comprehensive income (loss) financial
allowance for credit losses financial
embedded derivative liabilities financial
market risk benefits financial
statutory risk-based capital ratio financial
collateralized loan obligations financial
AI-generated analysis. Not financial advice.
- First quarter performance reflects disciplined execution and the strength of our diversified products and distribution.
- Net income was
$38 million $0.39 $101 million $1.05 - Return on equity (ROE) of
9.5% ; Operating ROE(5) of12.2% , excluding significant items(5). - Book value per share of
$26.64 $38.98 - Operating earnings per share grew
33% , as continued sales momentum drove earnings growth. - Total new annualized premiums (NAP)(4) up
11% , demonstrating consistent, sustained growth following a strong 2025. - Total Medicare policies sold increased
24% , underscoring the strength of these products in expanding our household reach. - Consumer and Worksite continued their producing agent count growth streak to 13 and 15 consecutive quarters, respectively.
"CNO is off to a strong start to 2026, building on the momentum from our excellent performance in 2025," said Gary C. Bhojwani, chief executive officer. "With 15 consecutive quarters of sales growth, we're pleased with the consistent results we're generating as we continue to grow earnings, improve profitability and reinvest in the business."
"Operating earnings per share grew
FINANCIAL SUMMARY
Quarter End
(Amounts in millions, except per share data)
(Unaudited)
Net income decreased in 1Q26 and 1Q25, primarily due to non-economic accounting impacts resulting from market volatility and investment losses. Additionally, 1Q26 net income was impacted by expenses related to our TechMod initiative.
Net operating income, a non-GAAP(a) financial measure, excludes these non-economic accounting impacts as well as other non-operating items. Net operating income is used consistently by CNO's management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes the non-operating items as defined in note (1). Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company's business. Net income is the most directly comparable GAAP measure.
In 1Q26, net income and net operating income(1) were unaffected by significant items, compared to favorable impacts in 1Q25 of
Per diluted share | |||||||||||||
Quarter ended | Quarter ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2026 | 2025 | % | 2026 | 2025 | % | ||||||||
Income from insurance products (b) | $ 1.01 | $ 0.85 | 19 % | $ 97.0 | $ 87.7 | 11 % | |||||||
Fee income | 0.11 | (0.01) | n/m | 10.6 | (0.8) | n/m | |||||||
Investment income not allocated to product lines (c) | 0.43 | 0.37 | 16 | 41.7 | 38.0 | 10 | |||||||
Expenses not allocated to product lines | (0.20) | (0.20) | — | (19.4) | (20.3) | (4) | |||||||
Operating earnings before taxes | 1.35 | 1.01 | 129.9 | 104.6 | |||||||||
Income tax expense on operating income | (0.30) | (0.23) | 30 | (28.6) | (23.5) | 22 | |||||||
Net operating income (1) | 1.05 | 0.79 | 33 | 101.3 | 81.1 | 25 | |||||||
Net realized investment losses from disposals, | (0.16) | (0.13) | (15.2) | (13.2) | |||||||||
Net change in market value of investments | (0.08) | 0.06 | (7.5) | 6.4 | |||||||||
Changes in fair value of embedded derivative | (0.44) | (0.68) | (42.4) | (69.6) | |||||||||
Expenses related to TechMod initiative | (0.14) | — | (13.7) | — | |||||||||
Net loss related to divested business | (0.02) | — | (1.9) | — | |||||||||
Other | (0.01) | — | (0.8) | (0.4) | |||||||||
Non-operating income before taxes | (0.85) | (0.75) | (81.5) | (76.8) | |||||||||
Income tax expense on non-operating income | 0.19 | 0.17 | 17.9 | 17.2 | |||||||||
Net non-operating income | (0.66) | (0.58) | (63.6) | (59.6) | |||||||||
Net income | $ 0.39 | $ 0.21 | $ 37.7 | $ 21.5 | |||||||||
Weighted average diluted shares outstanding | 96.1 | 103.1 | |||||||||||
(a) | GAAP is defined as accounting principles generally accepted in | ||||
(b) | Income from insurance products is the sum of the insurance product margins of the annuity, health and life product lines, less expenses allocated to the insurance product lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Insurance product margin is management's measure of the profitability of its annuity, health and life product lines' performance and consists of insurance policy income plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs. | ||||
(c) | Investment income not allocated to product lines represents net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable, investment borrowings and financing arrangements; (iv) expenses related to the funding agreement-backed notes ("FABN") program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income; plus (vi) the impact of annual option forfeitures related to fixed indexed annuity surrenders. Investment income not allocated to product lines includes investment income on investments in excess of amounts allocated to product lines, investments held by our holding companies, the spread we earn from our federal home loan bank ("FHLB") investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income (loss) from company-owned life insurance ("COLI") and alternative investment income not allocated to product lines), net of interest expense on corporate debt and financing arrangements. The spread earned from our FHLB investment borrowing and FABN programs includes the investment income on the matched assets less: (i) interest on investment borrowings related to the FHLB investment borrowing program; (ii) interest credited on funding agreements; and (iii) amortization of deferred acquisition costs related to the FABN program. | ||||
FINANCIAL SUMMARY (continued)
Management vs. GAAP Measures
(Dollars in millions, except per share data)
(Unaudited)
Shareholders' equity, excluding accumulated other comprehensive income (loss), and book value per share, excluding accumulated other comprehensive income (loss), are non-GAAP measures that are utilized by management to view the business without the effect of accumulated other comprehensive income (loss) which is primarily attributable to fluctuations in interest rates associated with fixed maturities, available for sale. Management views the business in this manner because the Company has the ability and generally, the intent, to hold investments to maturity and meaningful trends can be more easily identified without the fluctuations. In addition, shareholders' equity excludes net operating loss carryforwards in our non-GAAP return on equity measures as such assets are not discounted and, accordingly, will not provide a return to shareholders until after it is realized as a reduction to taxes that would otherwise be paid. Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns.
Quarter ended | |||
March 31, | |||
2026 | 2025 | ||
Trailing four quarters: | |||
Net Income | $ 245.5 | $ 330.0 | |
Net operating income (a non-GAAP financial measure) | 459.4 | 452.9 | |
Net operating income, excluding significant items | 427.2 | 428.8 | |
Average of each of the trailing four quarters average: | |||
Shareholders' equity | $ 2,574.7 | $ 2,523.3 | |
Accumulated other comprehensive loss | 1,178.7 | 1,327.9 | |
Shareholders' equity, excluding accumulated other comprehensive loss | 3,753.4 | 3,851.2 | |
Net operating loss carryforwards | (258.9) | (237.6) | |
Shareholders' equity, excluding accumulated other comprehensive loss and net operating loss | $ 3,494.5 | $ 3,613.6 | |
Ratios: | |||
Return on equity | 9.5 % | 13.1 % | |
Operating return on equity (a non-GAAP financial measure) (5) | 13.1 % | 12.5 % | |
Operating return on equity, excluding significant items (a non-GAAP financial measure) (5) | 12.2 % | 11.9 % | |
Shareholders' equity | $ 2,498.4 | $ 2,555.1 | |
Accumulated other comprehensive loss | 1,217.6 | 1,239.1 | |
Shareholders' equity, excluding accumulated other comprehensive loss | $ 3,716.0 | $ 3,794.2 | |
Basic shares outstanding | 93,795,306 | 99,893,923 | |
Diluted shares outstanding | 95,323,466 | 101,796,131 | |
Book value per share | $ 26.64 | $ 25.58 | |
Book value per diluted share | $ 26.21 | $ 25.10 | |
Accumulated other comprehensive loss per diluted share | 12.77 | 12.17 | |
Book value per diluted share, excluding accumulated other comprehensive loss (a non-GAAP financial | $ 38.98 | $ 37.27 | |
Non-Operating Items
Net investment losses in 1Q26 were
During 1Q26 and 1Q25, we recognized a decrease in earnings of
During 1Q26 and 1Q25, we recognized a decrease in earnings of
During 1Q26, we incurred
We recognized a
INVESTMENT PORTFOLIO
(Dollars in millions)
Fixed maturities, available for sale, at amortized cost by asset class as of March 31, 2026 are as follows:
Investment | Below | Total | |||
Corporate securities | $ 13,878.7 | $ 679.9 | $ 14,558.6 | ||
United States Treasury securities and obligations of | 208.9 | — | 208.9 | ||
States and political subdivisions | 3,228.4 | 22.4 | 3,250.8 | ||
Foreign governments | 134.8 | — | 134.8 | ||
Asset-backed securities | 1,800.3 | 43.8 | 1,844.1 | ||
Agency residential mortgage-backed securities | 810.6 | — | 810.6 | ||
Non-agency residential mortgage-backed securities | 1,332.5 | 223.7 | (a) | 1,556.2 | |
Collateralized loan obligations | 1,466.5 | — | 1,466.5 | ||
Commercial mortgage-backed securities | 2,162.4 | 88.5 | 2,250.9 | ||
Total | $ 25,023.1 | $ 1,058.3 | $ 26,081.4 |
(a) | Certain structured securities rated below investment grade by Nationally Recognized Statistical Rating Organizations may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the National Association of Insurance Commissioners (NAIC). | ||||
As of March 31, 2026, the fair value of CNO's available for sale fixed maturity portfolio was
Statutory (based on non-GAAP measures) and GAAP Capital Information
The consolidated statutory risk-based capital ratio of our
During 1Q26, we repurchased
Unrestricted cash and investments held by our holding company were
Book value per common share was
The debt-to-capital ratio was
Return on equity for the trailing four quarters ended March 31, 2026 and 2025 was
In this news release, CNO includes non-GAAP measures to enhance investors' understanding of management's view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing a broader perspective. CNO's definitions of non-GAAP measures may differ from other companies' definitions. More detailed information including various GAAP and non-GAAP measurements are located at CNOinc.com in the Investors section under SEC Filings.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking statements within the meaning of federal securities laws. These prospective statements reflect management's current expectations, but are not guarantees of future performance. Accordingly, please refer to CNO's cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company's Form 10-K for the year ended December 31, 2025 and any subsequent Form 10-Q or Form 10-K on file with the Securities and Exchange Commission and on the Company's website at CNOinc.com in the Investors section. CNO specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.
EARNINGS RELEASE CONFERENCE CALL WEBCAST:
The Company will host a conference call to discuss results on May 1, 2026 at 11:00 a.m. Eastern Time. During the call, we will be referring to a presentation that will be available at the Investors section of the company's website.
To participate by dial-in, please register at https://events.q4inc.com/attendee/401757742. Upon registering, you will be provided with call details and a registrant ID used to track attendance on the conference call. Reminders will also be sent to registered participants via email.
For those investors who prefer to listen to the call online, we will be broadcasting the call live via webcast. The event can be accessed through the Investors section of the company's website: ir.CNOinc.com. Participants should go to the website at least 15 minutes before the event to register and download any necessary audio software.
ABOUT CNO FINANCIAL GROUP
CNO Financial Group, Inc. (NYSE: CNO) secures the future of middle-income America. CNO provides life and health insurance, annuities, financial services and workforce benefits solutions through our family of brands, including Bankers Life, Colonial Penn, Optavise and Washington National. Our customers work hard to save for the future, and we help protect their health, income and retirement needs with 3.3 million policies and
CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES | |||
CONSOLIDATED STATEMENT OF OPERATIONS | |||
(Dollars in millions, except per share data) | |||
(unaudited) | |||
Three months ended | |||
March 31, | |||
2026 | 2025 | ||
Revenues: | |||
Insurance policy income | $ 673.4 | $ 650.7 | |
Net investment income: | |||
General account assets | 395.0 | 375.1 | |
Policyholder and other special-purpose portfolios | (64.9) | (63.6) | |
Investment gains (losses): | |||
Realized investment losses | (7.8) | (3.8) | |
Other investment losses | (14.9) | (3.0) | |
Total investment losses | (22.7) | (6.8) | |
Fee revenue and other income | 48.8 | 48.7 | |
Total revenues | 1,029.6 | 1,004.1 | |
Benefits and expenses: | |||
Insurance policy benefits | 576.6 | 570.0 | |
Liability for future policy benefits remeasurement gain | (6.5) | (12.2) | |
Change in fair value of market risk benefits | 10.7 | 15.3 | |
Interest expense | 50.9 | 62.0 | |
Amortization of deferred acquisition costs and present value of future | 74.2 | 67.4 | |
Gain on extinguishment of borrowings related to variable interest | — | (1.5) | |
Other operating costs and expenses | 275.3 | 275.3 | |
Total benefits and expenses | 981.2 | 976.3 | |
Income before income taxes | 48.4 | 27.8 | |
Income tax expense | 10.7 | 6.3 | |
Net income | $ 37.7 | $ 21.5 | |
Earnings per common share: | |||
Basic: | |||
Weighted average shares outstanding | 94,078,000 | 100,743,000 | |
Net income | $ 0.40 | $ 0.21 | |
Diluted: | |||
Weighted average shares outstanding | 96,139,000 | 103,070,000 | |
Net income | $ 0.39 | $ 0.21 | |
NOTES | |||||
(1) | Management believes that an analysis of net income applicable to common stock before: (i) net realized investment gains or losses from disposals, impairments and the change in allowance for credit losses, net of taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) changes in fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities, net of taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) gains or losses related to material reinsurance transactions, net of taxes; (vi) loss on extinguishment of debt, net of taxes; (vii) changes in the valuation allowance for deferred tax assets and other tax items; (viii) costs related to our three-year project to modernize certain elements of our technology ("TechMod") that are incremental to normal spend and will not recur following implementation, net of taxes; (ix) goodwill and other asset impairment expenses, net of taxes; (x) gains or losses related to divested business, net of taxes; and (xi) other non-operating items including earnings attributable to variable interest entities, net of taxes ("net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. The income tax expense or benefit allocated to the items included in net non-operating income (loss) represents the current and deferred income tax expense or benefit allocated to the items included in non-operating earnings. Management believes this information provides a better understanding of the business and a more meaningful analysis of results of our insurance product lines. A reconciliation of net operating income to net income applicable to common stock is provided in the table on page 2. Additional information concerning this non-GAAP measure is included in our periodic filings with the Securities and Exchange Commission that are available on CNO's website, CNOinc.com, in the Investors section under SEC Filings. | ||||
(2) | Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. | ||||
(3) | The calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. | ||||
(4) | Measured by new annualized premiums for life and health products, which includes | ||||
(5) | Operating return on equity and operating return on equity, excluding significant items are calculated as follows: (i) operating return on equity is equal to the trailing four quarters of net operating income(1) divided by average shareholders' equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards; and (ii) operating return on equity, excluding significant items is equal to the trailing four quarters of net operating income(1), excluding significant items, divided by average shareholders' equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards, for the trailing four quarters. | ||||
The following summarizes: (i) net operating income; (ii) significant items; (iii) net operating income, excluding significant items; and (iv) net income (loss) (dollars in millions):
Net operating | ||||||||||||
Net operating | income, | |||||||||||
income, | excluding | Net | ||||||||||
excluding | significant | income - | ||||||||||
Net operating | Significant | significant | items - trailing | Net | trailing | |||||||
income | items | items (a) | four quarters | income (loss) | four quarters | |||||||
2Q24 | $ 114.6 | $ — | $ 114.6 | $ 364.0 | $ 116.3 | $ 432.2 | ||||||
3Q24 | 119.2 | (21.9) | (b) | 97.3 | 376.9 | 9.3 | 274.2 | |||||
4Q24 | 138.0 | 3.1 | (c) | 141.1 | 410.5 | 182.9 | 420.8 | |||||
1Q25 | 81.1 | (5.3) | (d) | 75.8 | 428.8 | 21.5 | 330.0 | |||||
2Q25 | 87.5 | — | 87.5 | 401.7 | 91.8 | 305.5 | ||||||
3Q25 | 127.2 | (32.2) | (e) | 95.0 | 399.4 | 23.1 | 319.3 | |||||
4Q25 | 143.4 | — | 143.4 | 401.7 | 92.9 | 229.3 | ||||||
1Q26 | 101.3 | — | 101.3 | 427.2 | 37.7 | 245.5 |
(a) | See note (6) for additional information. | ||||||||||||
(b) | Comprised of | ||||||||||||
(c) | Comprised of | ||||||||||||
(d) | Comprised of | ||||||||||||
(e) | Comprised of | ||||||||||||
A reconciliation of pre-tax operating earnings (a non-GAAP financial measure) to net income is as follows (dollars in millions):
Trailing four quarters | |||||
1Q26 | 1Q25 | ||||
Pre-tax operating earnings (a non-GAAP financial measure) | $ 578.5 | $ 580.6 | |||
Income tax expense | (119.1) | (127.7) | |||
Net operating income | 459.4 | 452.9 | |||
Non-operating items: | |||||
Net realized investment losses from disposals, impairments and change in allowance for credit | (71.0) | (81.3) | |||
Net change in market value of investments recognized in earnings | 0.4 | 16.8 | |||
Changes in fair value of embedded derivative liabilities and market risk benefits | (36.8) | (87.3) | |||
Fair value changes related to the agent deferred compensation plan | (1.7) | 6.6 | |||
Expenses related to TechMod initiative | (34.0) | — | |||
Goodwill and other asset impairment | (101.9) | — | |||
Net loss related to divested business | (19.2) | — | |||
Other | (0.3) | (13.9) | |||
Non-operating loss before taxes | (264.5) | (159.1) | |||
Income tax benefit on non-operating loss | 50.6 | 36.2 | |||
Net non-operating loss | (213.9) | (122.9) | |||
Net income | $ 245.5 | $ 330.0 | |||
A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):
1Q24 | 2Q24 | 3Q24 | 4Q24 | ||||||
Consolidated capital, excluding accumulated other comprehensive | |||||||||
income (loss) and net operating loss carryforwards | |||||||||
(a non-GAAP financial measure) | $ 3,536.8 | $ 3,596.7 | $ 3,529.9 | $ 3,810.0 | |||||
Net operating loss carryforwards | 311.2 | 296.5 | 273.9 | 76.6 | |||||
Accumulated other comprehensive loss | (1,480.3) | (1,464.3) | (1,116.0) | (1,371.4) | |||||
Common shareholders' equity | $ 2,367.7 | $ 2,428.9 | $ 2,687.8 | $ 2,515.2 | |||||
1Q25 | 2Q25 | 3Q25 | 4Q25 | ||||||
Consolidated capital, excluding accumulated other comprehensive | |||||||||
income (loss) and net operating loss carryforwards | |||||||||
(a non-GAAP financial measure) | $ 3,498.9 | $ 3,504.3 | $ 3,483.6 | $ 3,510.2 | |||||
Net operating loss carryforwards | 295.3 | 271.1 | 246.3 | 243.0 | |||||
Accumulated other comprehensive loss | (1,239.1) | (1,252.7) | (1,118.9) | (1,115.0) | |||||
Common shareholders' equity | $ 2,555.1 | $ 2,522.7 | $ 2,611.0 | $ 2,638.2 | |||||
1Q26 | |||||||||
Consolidated capital, excluding accumulated other comprehensive | |||||||||
income (loss) and net operating loss carryforwards | |||||||||
(a non-GAAP financial measure) | $ 3,461.2 | ||||||||
Net operating loss carryforwards | 254.8 | ||||||||
Accumulated other comprehensive loss | (1,217.6) | ||||||||
Common shareholders' equity | $ 2,498.4 | ||||||||
A reconciliation of consolidated capital, excluding accumulated other comprehensive loss and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):
Trailing four quarter average | ||||
1Q26 | 1Q25 | |||
Consolidated capital, excluding accumulated other comprehensive | ||||
income (loss) and net operating loss carryforwards | ||||
(a non-GAAP financial measure) | $ 3,494.5 | $ 3,613.6 | ||
Net operating loss carryforwards | 258.9 | 237.6 | ||
Accumulated other comprehensive loss | (1,178.7) | (1,327.9) | ||
Common shareholders' equity | $ 2,574.7 | $ 2,523.3 | ||
(6) | The tables below summarize the financial impact of significant items on our net operating income for the quarters during the year ended December 31, 2025 that had significant items impacting our net operating income. There were no significant items on our net operating income during the three months ended March 31, 2026. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions, except per share data). |
Three months ended | ||||||
September 30, 2025 | ||||||
Actual | Significant | Excluding items | ||||
Insurance product margin | ||||||
Annuity margin | $ 72.9 | $ (16.6) | (a) | $ 56.3 | ||
Health margin | 157.0 | (21.1) | (a) | 135.9 | ||
Life margin | 70.6 | (3.6) | (a) | 67.0 | ||
Total insurance product margin | 300.5 | (41.3) | 259.2 | |||
Allocated expenses | (151.0) | — | (151.0) | |||
Income from insurance products | 149.5 | (41.3) | 108.2 | |||
Fee income | (3.9) | — | (3.9) | |||
Investment income not allocated to product lines | 39.5 | — | 39.5 | |||
Expenses not allocated to product lines | (22.3) | — | (22.3) | |||
Operating earnings before taxes | 162.8 | (41.3) | 121.5 | |||
Income tax (expense) benefit on operating income | (35.6) | 9.1 | (26.5) | |||
Net operating income | $ 127.2 | $ (32.2) | $ 95.0 | |||
Net operating income per diluted share | $ 1.29 | $ (0.33) | $ 0.96 | |||
(a) | Comprised of | ||||
Three months ended | ||||||
March 31, 2025 | ||||||
Actual | Significant | Excluding items | ||||
Insurance product margin | ||||||
Annuity margin | $ 54.5 | $ — | $ 54.5 | |||
Health margin | 126.2 | — | 126.2 | |||
Life margin | 68.2 | (6.8) | (a) | 61.4 | ||
Total insurance product margin | 248.9 | (6.8) | 242.1 | |||
Allocated expenses | (161.2) | — | (161.2) | |||
Income from insurance products | 87.7 | (6.8) | 80.9 | |||
Fee income | (0.8) | — | (0.8) | |||
Investment income not allocated to product lines | 38.0 | — | 38.0 | |||
Expenses not allocated to product lines | (20.3) | — | (20.3) | |||
Operating earnings before taxes | 104.6 | (6.8) | 97.8 | |||
Income tax (expense) benefit on operating income | (23.5) | 1.5 | (22.0) | |||
Net operating income | $ 81.1 | $ (5.3) | $ 75.8 | |||
Net operating income per diluted share | $ 0.79 | $ (0.05) | $ 0.74 | |||
(a) | Comprised of | ||||
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SOURCE CNO Financial Group