CNO Cuts 2026 Expense Ratio Guidance, Returns $77M as Medicare Supplement Sales Jump 41%
CNO sits 48% above its 52-week low of $38.99.
Summary
CNO trimmed its 2026 expense ratio guidance to 18.6%-18.8% and now guides to an effective tax rate of about 20.5%, fee income of roughly $25M, and free cash flow of $220M-$240M, citing Bermuda effects and technology spend. Health new annualized premium rose 7%, the 17th straight quarter of growth, with Medicare Supplement NAP up 41% and Medicare policies sold up 20%; life NAP fell on the end of a third-party pilot, but was up 20% excluding it. The company returned $77M to shareholders this quarter, including $60M of buybacks that cut diluted shares by 4%, and book value per diluted share excluding AOCI rose 8% to $41.29. This builds on the 8-K filed October 29 reporting third-quarter net operating income of $179.1M ($1.90 per diluted share), up 47%, and a raised full-year 2026 operating EPS outlook. The stock is trading near its 52-week high, so the expense guidance and capital return detail are the incremental items that matter.
At the time of this announcement, CNO was trading at $57.67 on NYSE in the Finance sector, with a market capitalization of approximately $5.3B. The 52-week trading range was $38.99 to $57.70. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Wiseek News.