CNO Financial Group, Inc. recorded its 16th consecutive quarter of sales growth in the second quarter of 2026, with insurance policy income rising to $680.7 million from $651.3 million a year earlier. Total new annualized premiums (NAP) for life and health products also jumped 7% in the period - a streak that matters to agents and brokers placing business with CNO's Bankers Life, Colonial Penn, Optavise and Washington National brands, since sustained sales momentum this long typically signals a carrier investing in distribution support and product competitiveness rather than one riding a single strong quarter.
Net income was $125.9 million, or $1.33 per diluted share, compared with $91.8 million, or $0.91 per diluted share, in the same period last year. Net operating income, which excludes investment gains and losses, embedded derivative fair value changes, and other non-recurring items, was $119.5 million, or $1.26 per diluted share, up 37% from $87.5 million a year earlier.
Income from insurance products, which was management's measure of annuity, health, and life line profitability, came in at $1.33 per diluted share, up 29% from $1.03 a year earlier. The company recorded quarterly records in Worksite Division NAP, annuity collected premiums, and client assets in brokerage and advisory. CNO reported agent count growth in both its Consumer and Worksite divisions for the 14th and 16th consecutive quarters, respectively - a detail worth flagging for brokers and agents evaluating carrier partners, since sustained agent-count growth over that many quarters suggests CNO is actively expanding its distribution footprint rather than simply retaining a static force.
The annuity record comes as the broader US market has expanded sharply. US annuity sales rose 6% to $461.3 billion in 2025, a fourth consecutive annual record, according to LIMRA figures, with more than four million Americans entering retirement each year driving demand for protected income products. For advisors and brokers in the retirement-income space, that combination - a growing national market and a carrier setting its own internal records within it - points to where CNO is prioritizing new business development right now.
CNO's consolidated statutory risk-based capital (RBC) ratio was estimated at 377% at June 30, well above the 200% threshold regulators typically consider adequate for US life insurers. The operating return on equity, net of significant items, was 13.1% for the trailing four quarters through June 30, compared to 11.2% a year earlier. Book value per diluted share, net of accumulated other comprehensive loss, was $39.92, up 5%. That capital strength is a relevant data point for brokers assessing counterparty security on longer-duration annuity and life placements, where a carrier's claims-paying ability matters as much to the client relationship as the product's features.
On a GAAP basis, net income rose to $125.9 million from $91.8 million, though costs tied to TechMod, CNO's three-year technology modernization initiative, continue to grow. The program incurred $9.7 million in second-quarter expenses, up from $3.2 million in the prior-year period. TechMod costs are excluded from net operating income and are expected to total roughly $170 million across the full program, with about $75 million slated for 2026 alone. For agents working with CNO's systems day to day, this is the investment that should eventually translate into faster policy issuance and smoother service - the kind of back-end modernization brokers often notice indirectly through fewer processing delays before they see it reflected in reported earnings.
Investment income not allocated to product lines was $49.4 million, up 46% from $33.8 million in the prior-year period. CNO has attributed comparable gains in recent quarters to a combination of higher new money rates on reinvested assets and improved returns from its alternative investments portfolio, though the company did not break out the specific drivers behind this particular quarter's increase.
CNO repurchased $60 million of common stock during the quarter at an average cost of $46.57 per share across 1.3 million shares. As of June 30, the company held authority to repurchase up to an additional $300.4 million of its stock. Dividends paid on common stock totaled $16.8 million.
Unrestricted cash held by the holding company was $233.2 million at June 30, down from $351.4 million at December 31, 2025, a decline consistent with the roughly $60 million in buybacks and ongoing dividend payments during the period, alongside routine capital movements between the holding company and its insurance subsidiaries. The debt-to-capital ratio stood at 34%.
Gary C. Bhojwani, chief executive officer, attributed the results to insurance product performance and sales momentum. "CNO delivered a very strong first half, with second quarter operating earnings per share up 45% and our 16th consecutive quarter of sales growth," he said.
On the guidance upgrade, Bhojwani said the revision reflected continued profitability improvement. "We are raising full-year guidance on operating earnings per share to reflect strong underlying fundamentals, continued profitability improvement, and the consistent, repeatable results we continue to generate across the business," he said.
CNO raised its full-year 2026 operating EPS guidance by 8% at the midpoint from its prior outlook. The company serves approximately 3.3 million policyholders and holds $39.9 billion in total assets across its Bankers Life, Colonial Penn, Optavise, and Washington National brands.
