CNO Financial trims 2026 expense outlook and returns $77 million to shareholders

what happened

CNO Financial lowered its 2026 expense ratio forecast to a range of 18.6% to 18.8%, according to a summary published by TradingView. The company now expects an effective tax rate of about 20.5%, fee income near $25 million and free cash flow between $220 million and $240 million. It attributes the revisions to Bermuda-related effects and higher technology spending.

In health, new annual premiums (NAP) rose 7%, marking the 17th consecutive quarter of growth. Medicare Supplement NAP jumped 41% and the number of Medicare policies sold climbed 20%. Life NAP declined after a third-party pilot ended, but excluding that pilot it grew 20%.

During the quarter the company paid out $77 million to shareholders, of which $60 million went to repurchases, lowering the share count on a diluted basis by 4%. Book value per share on a diluted basis, excluding AOCI, grew 8% to $41.29.

why it matters

For investors, the mix of larger buybacks and a smaller share count supports per-share metrics, while the lower expense guidance points to tighter cost assumptions for 2026. A live earnings call for the third quarter of 2026 is scheduled.

market impact

CNO Financial: buybacks and a smaller share count support per-share metrics

• ▲CNO Financial shares pressure up — large buybacks reduce the number of shares outstanding

tags

instruments