Insurance services company CNO Financial Group (NYSE: CNO) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 2.4% year on year to $1.01 billion. Its non-GAAP profit of $1.47 per share was 21.9% above analysts’ consensus estimates.

Is now the time to buy CNO? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

CNO Financial Group’s fourth quarter was marked by performance that exceeded Wall Street’s expectations, leading to a significant positive market reaction. The company’s growth was anchored by continued sales momentum across key insurance product lines, strong agent productivity, and effective diversification in product distribution channels. CEO Gary Bhojwani cited record new annualized premium, stating, “Our exclusive middle market focus and our last mile captive agent distribution model create our durable competitive moat.” Management emphasized that these operational strengths, along with disciplined investment portfolio management, underpinned both profitability and capital flexibility during the quarter.

Looking forward, CNO’s guidance is shaped by demographic trends and ongoing investments in technology and distribution. Management expects continued sales momentum—particularly in Medicare Supplement policies—while acknowledging headwinds from macroeconomic uncertainty and shifts in consumer discretionary spending. CEO Gary Bhojwani noted, “We expect agent count to grow in 2026, but our primary focus is on productivity.” The company also plans to invest in tech modernization and maintain disciplined risk management, with CFO Paul McDonough highlighting expectations for “continued progress on capital deployment while maintaining a strong balance sheet.”

Key Insights from Management’s Remarks

CNO’s management attributed the quarter’s outperformance to robust insurance sales, agent productivity gains, and effective product channel diversification, while capital discipline and investment results further strengthened fundamentals.

• Sales momentum across divisions: The company achieved its 14th consecutive quarter of sales growth, driven by record new annualized premium in both the Consumer and Worksite divisions. This was supported by double-digit increases in life, supplemental health, and annuities, as well as a 49% annual jump in Medicare Supplement sales.
• Agent productivity and distribution: CNO’s producing agent count grew for the 12th straight quarter, with a focus on improving productivity over sheer agent numbers. Management highlighted the value of its captive agent distribution model, which it describes as a “difficult-to-replicate competitive advantage.”
• Channel and product diversification: The company expanded its direct-to-consumer (D2C) channel, with over 70% of D2C life sales coming from non-television sources such as web, digital, and third-party channels. This shift contributed to record direct-to-consumer life sales, which grew 20% for the year.
• Shifting Medicare dynamics: There was a notable shift from Medicare Advantage to Medicare Supplement products, attributed to industry-wide benefit reductions by leading MA carriers. Management expects this trend to continue, supporting future sales in Medicare Supplement products.
• Capital and investment discipline: CNO maintained a strong capital position, returning $386 million to shareholders and raising its dividend for the 13th consecutive year. Its investment portfolio remained high quality and liquid, with new investments maintaining a yield above 6% for twelve consecutive quarters.

Drivers of Future Performance

CNO’s outlook is driven by demographic tailwinds, continued technology investment, and shifting product mix—balanced against macroeconomic uncertainty and evolving consumer preferences.

• Demographic-driven growth: The company is positioned to benefit from the rising number of Americans turning 65 each day, which supports ongoing demand for Medicare-related products. Management believes this secular trend will help offset potential macroeconomic headwinds affecting discretionary insurance purchases.
• Technology and productivity investment: Ongoing investment in tech modernization—projected at $75 million for the year—is expected to enhance agent productivity and operational efficiency. Management emphasizes that productivity gains, rather than just agent count growth, are the primary focus for driving future earnings.
• Product mix and market uncertainty: While Medicare Supplement sales are expected to rise amid industry changes, management is cautious about the potential impact of job market instability on discretionary products like annuities and life insurance. CEO Gary Bhojwani described the current environment as one of “significant lack of visibility,” noting heightened uncertainty around interest rates and consumer sentiment.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) whether Medicare Supplement sales sustain momentum as industry trends shift away from Medicare Advantage, (2) the impact of technology modernization investments on agent productivity and operating leverage, and (3) how macroeconomic factors influence discretionary product sales and agent recruitment. Progress on capital deployment and sustained investment portfolio performance will also be important markers of execution.

CNO Financial Group currently trades at $44.69, up from $42.31 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).

Now Could Be The Perfect Time To Invest In These Stocks

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.