CNO Financial Group, Inc. CNO is strategically positioned for growth, supported by strong collected premiums from life and health products, rising new annualized premiums and higher fee revenues. A diversified product portfolio, technological advancements and improved insurance policy income drive further momentum. Shares of CNO have risen 22% in the past year against the industry’s decline of 1.2%.
CNO — with a market cap of $4.4 billion — operates throughout the United States to develop, administer and market annuity, supplemental health and individual life insurance and other insurance products. Its forward 12-month P/E ratio of 10.45X is higher than the industry average of 9X.
Courtesy of solid prospects, this presently Zacks Rank #3 (Hold) stock is worth retaining at the moment.
Let’s delve deeper.
CNO’s Growth Drivers
CNO Financial continues to benefit from its focused strategy around middle-income customers, supported by its captive agent distribution network and diversified insurance portfolio. The company delivered its 15th consecutive quarter of sales growth, with strong momentum in Medicare Supplement, supplemental health and worksite products.
Total collected premiums rose 1.8% year over year in the first quarter of 2026, along with 3.5% growth in total insurance policy income, aided by improved performance from life and health products. In the same quarter, total new annualized premiums rose 11.1% year over year and total Medicare policies sold increased 24%, reflecting continued consumer focus on Medicare offerings. Demographic trends, including the growing senior population and rising healthcare protection needs, continue to support long-term demand for its offerings.
Technology investments are also becoming a bigger part of CNO’s strategy. The company is investing in data analytics and artificial intelligence to improve customer experience and agent productivity. For instance, Colonial Penn’s call center is using AI-powered tools to route customer inquiries more efficiently, helping reduce wait times and improve sales conversions. At the same time, CNO continues expanding its recruiting efforts, geographic reach and digital marketing capabilities, particularly in direct-to-consumer life insurance channels, where non-television lead sources are driving a larger share of sales.
CNO Financial has demonstrated a strong commitment to shareholder returns through consistent capital distribution. In first-quarter 2026, the company repurchased $60 million worth of shares and paid $17.1 million in dividends.
Estimates for CNO
The Zacks Consensus Estimate for CNO Financial’s 2026 earnings is pegged at $4.36 per share, indicating a 6.9% year-over-year increase. The consensus mark for revenues is pegged at $4 billion for 2026. Furthermore, it beat earnings estimates in each of the past four quarters, with an average surprise of 16.9%.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
Risks for CNO Stock
There are some factors, however, that investors should keep a careful eye on.
The company faces escalating expenses due to higher insurance policy benefits. Total benefits and expenses increased 3.7% year over year in 2024, 7.3% in 2025 and 0.5% in the first three months of 2026. CNO Financial’s balance sheet reflects a relatively high level of leverage. At the end of first-quarter 2026, its long-term debt-to-capital ratio stood at 61.7%, more than double the industry average of 28.7%. Unrestricted cash and cash equivalents were $1.2 billion at the end of the first quarter, while long-term debt amounted to $4 billion.
Better-Ranked Players
Some better-ranked stocks in the broader insurance space are Octave Specialty Group, Inc. OSG, First American Financial Corporation FAF and The Hanover Insurance Group, Inc. THG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Octave Specialty Group’s current-year earnings of 40 cents per share has witnessed one upward revision in the past seven days against none in the opposite direction. OSG’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 464.4%. The consensus estimate for current-year revenues is pegged at $358.9 million.
The consensus estimate for First American Financial’s current-year earnings is pegged at $6.72, which signals 11.1% year-over-year growth. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 22%. The consensus mark for FAF’s current-year revenues of $8 billion implies a 7.8% year-over-year jump.
The consensus estimate for Hanover Insurance’s current-year earnings is pegged at $18.45 per share, which has witnessed four upward revisions in the past 30 days against none in the opposite direction. Its earnings beat estimates in each of the trailing four quarters, with the average surprise being 28.5%. The consensus estimate for THG’s current-year revenues is pegged at $7 billion, which implies a 4.7% year-over-year jump.
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CNO Financial Group, Inc. (CNO): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).