Here's Why CNO Financial Shares Are Attracting Prudent Investors Now

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 $4.74 per share. 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 23.2%.

CNO’s Growth Drivers

CNO Financial’s growth continues to be supported by its focus on middle-income consumers and its captive-agent distribution model. The company delivered its 16th consecutive quarter of sales growth in the second quarter of 2026, with total new annualized premiums rising 6.5% year over year. The model is helping CNO maintain consistent sales momentum while expanding its customer relationships across health, life and retirement products. The total collected premiums advanced 3.6% year over year to $1.2 billion, along with 4.5% growth in the insurance policy income.

The Consumer division remains an important growth engine, particularly as demand shifts toward Medicare Supplement and retirement-income products. Medicare Supplement NAP jumped 52% in the second quarter of 2026, while total Medicare policies sold increased 12%.

CNO is also leaning into its Worksite business, where growth is being driven by geographic expansion, deeper penetration of existing markets and continued investment in its career-agent channel. Worksite NAP increased 29.4% in the quarter, while NAP from new clients rose 84%. The optimized career agency generated roughly 90% of Worksite insurance sales, prompting CNO to continue investing in the channel as it expands its reach among small and midsized businesses.

Technology and distribution efficiency are additional areas of focus. CNO is progressing with its three-year TechMod initiative to modernize parts of its technology infrastructure while shifting its direct-to-consumer life marketing mix toward web, digital and third-party channels. It is also focused on improving cost efficiency, with its second-quarter expense ratio at 18.4%, improved from 19% a year earlier, reflecting continued progress in managing expenses. Meanwhile, the company raised its 2026 operating EPS guidance to $4.60-$4.80 from the previously guided range of $4.25-$4.45.

CNO has also demonstrated a strong commitment to shareholder returns through consistent capital distribution. In second-quarter 2026, the company repurchased $60 million worth of shares and paid $16.8 million in dividends.

Risks for CNO Stock

There are some factors, however, that investors should keep a careful eye on.

CNO Financial’s balance sheet reflects a relatively high level of leverage. At the end of second-quarter 2026, its long-term debt-to-capital stood at 62.3%, more than double the industry average of 28.5%. Unrestricted cash and cash equivalents were $1.3 billion at the end of the quarter, while long-term debt amounted to $4.3 billion.

Other Top-Ranked Players

Some other top-ranked stocks in the insurance space are Hippo Holdings Inc. HIPO, Slide Insurance Holdings, Inc. SLDE 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 Hippo Holdings’ current-year earnings is pinned at $2.46 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. HIPO beat earnings estimates in each of the trailing four quarters, with the average surprise being 521.8%. The consensus estimate for current-year revenues is pegged at $581.9 million, implying 24.2% year-over-year growth.

The Zacks Consensus Estimate for Slide Insurance Holdings’ current-year earnings is pinned at $3.91 per share and has witnessed two upward revisions in the past 30 days against one movement in the opposite direction. SLDE beat earnings estimates in each of the trailing four quarters, with the average surprise being 36.9%. The consensus estimate for current-year revenues is pegged at $1.5 billion, implying 33% year-over-year growth.

The Zacks Consensus Estimate for Hanover Insurance Group’s current-year earnings is pinned at $20.15 per share and has witnessed two upward revisions in the past seven days against no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for current-year revenues is pegged at $7 billion, implying 4.6% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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