CNO Stock Forecast & Price Target

CNO Financial Group Inc. reported a year-over-year increase in life policy income of 3.2% to $226.5 million, aligning closely with estimates, while overall policy income rose 2.7% to $409.4 million, surpassing forecasts. The company experienced an 8.3% increase in agent count year-over-year, reaching 4,952 agents, indicating strong agent recruitment and retention efforts. Additionally, collected premiums for annuities increased significantly to $493.1 million, up from $438.3 million in the previous year, bolstering the positive outlook by demonstrating growth in a core revenue segment.

CNO Financial Group's RBC ratio decreased slightly to 383% in FY’24, indicating pressure on its capital position, although it remains above the long-run target of 375%. The company has experienced declining fee income for the second consecutive year due to shifts in its product portfolio, while annuity profitability and supplemental health margins have also softened year-over-year. Additionally, the target for excess cash flow has been reduced to $200 to $250 million, with holding company liquidity declining to $372 million, raising concerns about the overall financial stability and growth potential.