CNO Financial Group, Inc. CNO is well-positioned for growth, supported by higher premiums across life, health and annuity products, expanding distribution channels, product innovation and technology investments. Improved sales momentum and disciplined execution further strengthen its growth prospects. Shares of CNO have risen 39.4% over the past year, outperforming the industry’s growth of 12.4%.
With a market cap of $5.3 billion, CNO 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 10.96X is higher than the industry average of 9.30X.
Courtesy of solid prospects, CNO currently carries a Zacks Rank #2 (Buy).
Let’s delve deeper.
Where Do CNO’s Estimates Stand?
The Zacks Consensus Estimate for CNO Financial’s 2026 earnings is pegged at $5.56 per share, implying 36.3% year-over-year growth. The consensus mark for revenues is pegged at $4.1 billion for 2026. Furthermore, it beat earnings estimates in each of the past four quarters, with an average surprise of 41.5%.
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. Price, Consensus and EPS Surprise
CNO Financial Group, Inc. price-consensus-eps-surprise-chart | CNO Financial Group, Inc. Quote
CNO’s Growth Drivers
CNO Financial benefits from its focused presence in the middle-income market, supported by a diversified insurance portfolio and a strong local-agent distribution network. Its career agents help customers access life, health, Medicare Supplement and annuity products, supporting cross-selling and customer retention. The company recorded its 17th consecutive quarter of sales growth in the third quarter of 2026, while its producing agent count increased 4%.
Medicare Supplement is a key growth driver as changes in the Medicare Advantage market create opportunities to attract customers seeking alternative coverage. CNO’s ability to offer both products through its local agents provides a competitive advantage. Medicare Supplement NAP surged 41% in the third quarter, while total Medicare policies sold increased 20%. The company is also benefiting from growing demand for supplemental health coverage.
CNO’s Worksite division is also benefiting from employers’ increasing interest in voluntary benefits that help employees manage rising healthcare expenses. Life and health NAP advanced 18% in the third quarter, marking eight consecutive quarters of double-digit growth. The company is expanding its reach among small and midsize businesses through geographic expansion, stronger employer relationships and a growing agent network. NAP from new Worksite clients surged 168%, reflecting the opportunity to capture additional market share in this segment.
Beyond sales expansion, CNO is investing in technology modernization and capital efficiency to strengthen long-term profitability. The company expects to spend approximately $70 million on technology modernization in 2026, with comparable spending planned for 2027. Its third Bermuda reinsurance transaction, completed in October 2026, transferred approximately $270 million of life insurance reserves to its affiliate, supporting capital optimization. CNO plans further asset and capital optimization initiatives in 2027. Meanwhile, third-quarter net investment income increased 13% year over year. The company also raised its 2026 operating EPS guidance to $5.05-$5.15.
CNO has also demonstrated a strong commitment to shareholder returns through consistent capital distribution. In the third quarter of 2026, the company repurchased $60 million worth of shares and paid $16.5 million in dividends.
Risks for CNO Stock
There are some factors, however, that investors should keep a careful eye on.
CNO’s Medicare Supplement business faces pressure from elevated morbidity and unfavorable mortality experience, which has increased claims and required higher reserves. The company also faces uncertainty in annuity earnings as policyholder surrender rates and guaranteed lifetime withdrawal benefit utilization differ from earlier assumptions.
Additionally, CNO’s balance sheet reflects a relatively high level of leverage. At the end of the third quarter of 2026, its long-term debt-to-capital stood at 66.1%, more than double the industry average of 27.6%. Unrestricted cash and cash equivalents were $1.4 billion at the end of the third quarter, while long-term debt amounted to $4.5 billion. In a high-interest-rate environment, this high leverage translates into heavier interest expenses and reduced financial flexibility.
Other Top-Ranked Players
Some other top-ranked stocks in the insurance space are Universal Insurance Holdings, Inc. UVE, Hamilton Insurance Group, Ltd. HG and Oscar Health, Inc. OSCR, 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 Universal Insurance Holdings’ current-year earnings is pinned at $6.13 per share and has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. UVE beat earnings estimates in each of the trailing four quarters, with the average surprise being 45.9%. The consensus estimate for current-year revenues is pegged at $1.7 billion, implying 2.9% year-over-year growth.
The Zacks Consensus Estimate for Hamilton Insurance Group’s current-year earnings is pinned at $5.48 per share and has witnessed one upward revision in the past seven days against no movement in the opposite direction. HG beat earnings estimates in each of the trailing four quarters, with the average surprise being 107%. The consensus estimate for current-year revenues is pegged at $3.2 billion, implying 8.5% year-over-year growth.
The Zacks Consensus Estimate for Oscar Health’s current-year earnings is pinned at $2.25 per share and has witnessed two upward revisions in the past seven days against no movement in the opposite direction. OSCR beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 181.2%. The consensus estimate for current-year revenues is pegged at $19.2 billion, implying 64.2% year-over-year growth.
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