CNO Financial Group, Inc. (CNO) 2026 Q1 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to CNO Financial Group's first quarter 2026 earnings results. (Operator Instructions)

各位好。感謝各位加入我們，歡迎參加 CNO Financial Group 2026 年第一季財報結果說明會。（接線員指示）

I will now hand the call over to Adam Auvil, VP of Investor Relations for opening remarks. Please go ahead.

現在我將把電話會議交給投資人關係副總裁 Adam Auvil 進行開場致詞。請開始。

Good morning, and thank you for joining us on CNO Financial Group's first quarter 2026 earnings conference call. Today's presentation will include remarks from Gary Bhojwani, Chief Executive Officer; and Paul McDonough, Chief Financial Officer. Following the presentation, we will also have other business leaders available for the question-and-answer period.

各位早安，感謝各位參加 CNO Financial Group 2026 年第一季財報電話會議。今天的簡報將由執行長 Gary Bhojwani 與財務長 Paul McDonough 發表談話。簡報結束後，我們也將安排其他業務主管出席問答時段。

During this conference call, we will be referring to information contained in yesterday's press release. You can obtain the release by visiting the Media section of our website at cnoinc.com. This morning's presentation is also available in the Investors section of the website and was filed in a Form 8-K yesterday. Let me remind you that any forward-looking statements we make today are subject to a number of factors, which may cause actual results to be materially different than those contemplated by the forward-looking statements.

在本次電話會議中，我們將引用昨日新聞稿中的資訊。您可至 cnoinc.com 網站的 Media（媒體）專區取得該新聞稿。今天上午的簡報亦已公布於網站的 Investors（投資人）專區，並已於昨日以 Form 8-K 形式提交。提醒各位，我們今天所作的任何前瞻性陳述均受多項因素影響，可能導致實際結果與前瞻性陳述所預期者存在重大差異。

Today's presentation contains a number of non-GAAP measures, which should not be considered as substitutes for the most directly comparable GAAP measures. You'll find a reconciliation of the non-GAAP measures to the corresponding GAAP measures in the appendix. Throughout the presentation, we will be making performance comparisons and, unless otherwise specified, any comparisons made will refer to changes between first quarter 2026 and first quarter 2025.

今天的簡報包含多項非 GAAP 衡量指標，不應視為最直接可比 GAAP 指標的替代。您可在附錄中找到非 GAAP 指標與相對應 GAAP 指標之調節表。在整個簡報中，我們將進行績效比較；除非另有說明，所有比較均指 2026 年第一季相較於 2025 年第一季的變動。

And with that, I'll turn the call over to Gary.

接下來，我把電話會議交給 Gary。

Thanks, Adam. Good morning, everyone, and thank you for joining us. CNO is off to a strong start to the year, building on our excellent 2025 performance. First quarter operating earnings per diluted share were up 33% to $1.05 and up 42%, excluding significant items. We also delivered our 15th consecutive quarter of sales growth and our 13th consecutive quarter of producing agent count growth.

謝謝你，Adam。各位早安，感謝各位加入我們。CNO 今年開局強勁，延續我們 2025 年的優異表現。第一季稀釋後每股營運盈餘成長 33% 至 1.05 美元；若排除重大項目，則成長 42%。我們也達成連續第 15 季銷售成長，以及連續第 13 季具產能代理人人數成長。

We remain pleased with the consistent results we're generating, and we remain focused on growing earnings, improving profitability and reinvesting in the business. Our performance in the quarter once again illustrates the strength and resilience of our business model. We continue to perform well through economic uncertainty as we help middle-income households achieve greater financial security and protection.

我們對所創造的穩健且一致的成果感到滿意，並持續專注於提升盈餘、改善獲利能力並再投資於業務。本季表現再次展現我們商業模式的強度與韌性。當我們協助中等收入家庭提升財務安全與保障時，即使面對經濟不確定性，我們仍持續表現良好。

Sales results in the quarter were strong across both divisions with total new annualized premiums up 11%. Our exclusive middle market focus and our last mile captive agent distribution model create our durable competitive moat. This difficult to replicate model is a clear advantage and a catalyst for profitable growth. Earnings continue to benefit from strong insurance product margin and investment results, reflecting growth in the business and expansion of the portfolio book yield. We maintained a robust capital position while returning $77 million to shareholders. Book value per diluted share, excluding AOCI, was $38.98, up 5%.

本季兩大事業部門的銷售表現皆強勁，總新承保年化保費（NAP）成長 11%。我們專注中端市場的定位，以及「最後一哩」的專屬（自有）專職代理人通路模式，形成持久的競爭護城河。這種難以複製的模式是明確優勢，也是帶動獲利成長的催化劑。盈餘持續受惠於強勁的保險產品利差與投資成果，反映業務成長與投資組合帳面殖利率的提升。我們在維持穩健資本水位的同時，向股東回饋 7,700 萬美元。每股稀釋後帳面價值（不含 AOCI）為 38.98 美元，成長 5%。

Turning to slide 5 and our growth scorecard. Nearly all of our growth scorecard metrics were up for the quarter with strong performance across production, distribution and investments in capital.

接著看第 5 頁，我們的成長記分卡。本季成長記分卡中幾乎所有指標皆上升，在產能、通路與資本投資方面均有強勁表現。

Turning to slide 6 and our Consumer division. The Consumer business delivered a strong start to the year. This marks our 14th consecutive quarter of sustained sales growth and includes a 9% three-year compound annual growth rate for Life and Health NAP. Consistent execution and our focus on the middle-income market continue to drive our results. Life and Health NAP was up 9% for the quarter. Total Health NAP was up 20%, marking 15 consecutive quarters of growth.

接著看第 6 頁，我們的 Consumer（消費者）事業部。Consumer 業務今年開局強勁。這是我們連續第 14 季維持銷售成長，且壽險與健康險 NAP 的三年複合年成長率達 9%。穩定的執行力與我們對中等收入市場的聚焦持續推動成果。本季壽險與健康險 NAP 成長 9%。健康險 NAP 總額成長 20%，達成連續第 15 季成長。

Supplemental health was up 10%. Our Medicare business continues to perform well, building on the strong results our field leaders delivered during the fourth quarter 2025 annual enrollment period. Total Medicare policies sold were up 24% with Medicare Supplement NAP up 53%. Our results continue to reflect the shift in consumer preferences away from Medicare Advantage and toward Medicare Supplement. During the 2025 AEP, industry-wide MA enrollment growth slowed to about 3%, the weakest pace in 20 years.

補充型健康險成長 10%。我們的 Medicare（聯邦醫療保險）業務持續表現良好，延續 2025 年第四季年度投保期（AEP）期間前線主管所帶來的強勁成果。Medicare 保單總銷量成長 24%，其中 Medicare Supplement（補充保險，Med Supp）NAP 成長 53%。我們的結果持續反映消費者偏好從 Medicare Advantage（MA，優勢計畫）轉向 Medicare Supplement。在 2025 年 AEP 期間，全產業 MA 投保人數成長放緩至約 3%，為 20 年來最弱增速。

The broader MA market also continued to experience significant disruption as many leading carriers pared back plans and benefits over the last 18 months. Approximately 3 million MA members had their plans terminated for the 2026 plan year, requiring them to find new coverage. About one in five people with Medicare switched plans or carriers, the highest rate ever recorded for an annual enrollment period. This environment underscores the value of offering both Med Supp and Medicare Advantage through our national agent distribution model.

更廣泛的 MA 市場在過去 18 個月也持續出現顯著動盪，許多主要保險公司縮減方案與給付。約有 300 萬名 MA 會員的方案在 2026 計畫年度被終止，必須另尋新保障。約每 5 位 Medicare 受益人就有 1 位在年度投保期更換方案或承保公司，為有紀錄以來最高比率。此一環境凸顯透過我們的全國代理人通路模式，同時提供 Med Supp 與 Medicare Advantage 的價值。

Medicare remains a flagship door opening product for CNO, supporting our ability to expand the total number of households we serve. Life NAP was up 1% for the quarter with more than half of our life production being generated from direct sales. Our approach to the D2C life channel continued to benefit from technology-driven productivity enhancement and diversifying our direct marketing away from television to include more web, digital and third-party channels.

Medicare 仍是 CNO 的旗艦「開門」產品，有助於我們擴大所服務的家庭總數。本季壽險 NAP 成長 1%，且我們超過一半的壽險產能來自直銷。我們在 D2C（直面消費者）壽險通路的策略持續受惠於科技驅動的生產力提升，並將直效行銷從以電視為主，分散至更多網路、數位與第三方通路。

These non-television lead sources generated nearly 65% of all D2C life sales for the quarter. Annuity collected premiums of $434 million were down 2% on a strong comparable. Account values were up 7% over the prior year. We delivered our 12th consecutive quarter of brokerage and advisory growth. Client assets were up 27% to a new record and total accounts were up 13%. When combined with our annuity account values, our clients now entrust us with more than $18 billion of their assets, up 12%.

本季這些非電視的名單來源貢獻了近 65% 的所有 D2C 壽險銷售。年金實收保費 4.34 億美元，因比較基期強勁而下滑 2%。帳戶價值較去年成長 7%。我們達成連續第 12 季經紀與顧問業務成長。客戶資產成長 27% 至新高紀錄，總帳戶數成長 13%。若加計年金帳戶價值，客戶目前託付我們管理的資產已超過 180 億美元，成長 12%。

Strong agent productivity and retention continue to fuel our sustained sales momentum. Agent recruiting is also up as our career path continues to resonate with applicants seeking financial stability and a career of purpose. Producing agent count was up 3%, our 13th consecutive quarter of growth. Registered agent count grew 7%.

強勁的代理人生產力與留任率持續推動我們穩健的銷售動能。隨著我們的職涯路徑持續引起尋求財務穩定與具使命感職涯的應徵者共鳴，代理人招募亦有所提升。具產能代理人人數成長 3%，為連續第 13 季成長。註冊代理人人數成長 7%。

Investments in technology, data and artificial intelligence are woven into our strategy to drive greater efficiency and agent productivity and to enhance our customer experience. One example is our Colonial Penn call center, where we are using AI to help answer and intelligently route customer calls to live agents. The early results are very encouraging. We're seeing shorter customer wait times and higher quality sales conversions. We have multiple initiatives underway across the company to advance our technology and AI road map. As these programs move from pilot to execution, we will continue to share examples of the value they deliver.

對科技、數據與人工智慧的投資已融入我們的策略，用以提升效率與代理人生產力，並強化客戶體驗。其中一個例子是我們的 Colonial Penn 客服中心，我們運用 AI 協助回覆並智慧分流客戶來電至真人客服。初步結果非常令人鼓舞：我們看到客戶等待時間縮短，以及更高品質的銷售轉換率。我們在公司各處同時推進多項計畫，以推動科技與 AI 藍圖。隨著這些專案從試點走向落地執行，我們將持續分享其所帶來的價值案例。

Next, slide 7 and our Worksite division performance. The Worksite business also started the year strong with Life and Health NAP up 22%. This represents our 16th consecutive quarter of sales growth with a 20% four-year compound annual growth rate. Highlights from the quarter included life insurance, up 56%; hospital indemnity insurance, up 121% and accident insurance, up 18%.

接著看第 7 頁，我們的 Worksite（職場）事業部表現。Worksite 業務同樣在年初展現強勁動能，壽險與健康險 NAP 成長 22%。這代表我們連續第 16 季銷售成長，且四年複合年成長率達 20%。本季亮點包括：壽險成長 56%；住院定額給付保險成長 121%；意外險成長 18%。

Our focus on small to midsized businesses and associations, combined with our career agent model continues to drive meaningful sales growth. NAP from new clients increased 65%, largely driven by geographic expansion and further penetration into existing markets. Life sales, in particular, experienced a significant uptick from these new client relationships.

我們聚焦小型至中型企業與協會，再加上我們的職涯型代理人模式，持續帶動具意義的銷售成長。新客戶帶來的 NAP 成長 65%，主要由地理版圖擴張及在既有市場的進一步滲透所驅動。尤其是壽險銷售，因這些新客戶關係而出現顯著提升。

Our sales performance in the quarter was driven by strong agent productivity. Producing agent count was up for the 15th quarter and agent recruiting was up 8%. Across both divisions, we're pleased with the solid start to 2026. We're executing well and expect that momentum to carry through the remainder of the year.

本季銷售表現主要由強勁的代理人生產力所帶動。具產能代理人人數連續第 15 季成長，代理人招募成長 8%。在兩大事業部門方面，我們對 2026 年的穩健開局感到滿意。我們執行到位，並預期這股動能將延續至今年剩餘期間。

And with that, I'll turn it over to Paul.

接下來，我把時間交給 Paul。

Thank you, Gary, and good morning, everyone. Turning to the financial highlights on slide 8. Operating earnings per share were $1.05 for the quarter, up 33% and up 42%, excluding significant items in the prior period. The increase reflects continued profitable sales growth, strength in underwriting results, growth in net investment income driven by growth in assets, together with higher yields, and ongoing discipline in expense and capital management.

謝謝你，Gary，各位早安。接著看第 8 頁投影片的財務重點。本季每股營運盈餘為 1.05 美元，年增 33%；若排除前期重大項目，則年增 42%。成長主要反映持續的獲利性銷售成長、核保結果強勁、在資產成長與殖利率上升帶動下的淨投資收益增加，以及我們在費用與資本管理上的持續紀律。

Fee income was in line with expectations in the quarter. The expense ratio was 18.9%, reflecting lower-than-planned spending in the quarter, which we expect to normalize over the balance of the year. During the quarter, we deployed $60 million of excess capital on share repurchases, contributing to a 7% reduction in weighted average diluted shares outstanding. We continue to take a measured, disciplined approach to expense and capital management, reinvesting in the business to support growth while also generating a healthy level of free cash flow, which we return to shareholders through dividends and share repurchases. On a trailing 12-month basis, operating return on equity was 13.1% and 12.2%, excluding significant items.

本季手續費收入符合預期。費用率為 18.9%，反映本季支出低於原先規劃；我們預期在今年剩餘期間將回歸常態。本季我們運用 6,000 萬美元的超額資本進行庫藏股回購，使加權平均稀釋流通股數減少 7%。我們持續以審慎且有紀律的方式管理費用與資本，一方面再投資於業務以支持成長，同時也產生健康水準的自由現金流，並透過股利與庫藏股回購回饋股東。以過去 12 個月計，營運股東權益報酬率（ROE）為 13.1%；若排除重大項目則為 12.2%。

Turning to slide 9. Outstanding sales performance over the last several years continues to drive growth in insurance product margins across each major product category. As a reminder, the first quarter is typically the lowest insurance product margin quarter of the year, reflecting seasonality across several of our products. Against that backdrop, our first quarter '26 results were solid, reflecting the strength of the underlying business.

接著看第 9 頁投影片。過去數年卓越的銷售表現，持續推動各主要產品類別的保險產品利差成長。提醒一下，第一季通常是全年保險產品利差最低的一季，反映我們多項產品的季節性。在此背景下，我們 2026 年第一季的結果仍屬穩健，展現基礎業務的強勁。

Fixed index annuities benefited from growth in the block. Supplemental health and long-term care both also benefited from growth in the block with long-term care margin also reflecting favorable morbidity. Medicare Supplement faced modestly adverse claims experience, partially offset by the favorable impact of continued growth. We expect rate increases over the course of 2026 to help address the recent claims experience.

固定指數型年金受惠於保單存量（block）成長。補充健康險與長期照護險也同樣受惠於保單存量成長，其中長期照護利差亦反映有利的罹病率（morbidity）表現。Medicare 補充保險（Medicare Supplement）則面臨略為不利的理賠經驗，部分被持續成長帶來的有利影響所抵銷。我們預期在 2026 年期間的調漲保費將有助於因應近期的理賠經驗。

Our traditional life margins benefited from growth in the block, favorable mortality and lower nondeferrable advertising expense. Overall, these results again demonstrate the value of our diversified product portfolio, where individual puts and takes across product lines typically net to stable and growing total margin over time.

我們的傳統壽險利差受惠於保單存量成長、有利的死亡率（mortality）以及較低的不可遞延廣告費用。整體而言，這些結果再次展現我們多元化產品組合的價值：各產品線之間的增減通常會相互抵銷，使總利差隨時間維持穩定並持續成長。

Turning to slide 10. Net investment income increased 6% year-over-year, marking the 10th consecutive quarter of growth in total net investment income. The growth was driven by two key factors: growth in net insurance liabilities and related assets, which increased 4.8% in the quarter, and continued improvement in book yields supported by 13 consecutive quarters of new money rates above 6%.

接著看第 10 頁投影片。淨投資收益年增 6%，為總淨投資收益連續第 10 季成長。成長主要由兩項關鍵因素帶動：其一，淨保險負債及相關資產成長，本季增加 4.8%；其二，帳面殖利率持續改善，並受惠於新投入資金利率連續 13 季維持在 6% 以上。

Net investment income not allocated to products increased year-over-year, reflecting growth in the FHLB and FABN programs, while alternative investment income improved over the prior year but was slightly below expectations. Importantly, our portfolio continues to remain high quality and liquid. The average book value of invested assets increased 4.2% year-over-year, reflecting growth in the business.

未分配至產品的淨投資收益年增，反映 FHLB 與 FABN 計畫規模成長；另類投資收益較去年改善，但略低於預期。重要的是，我們的投資組合仍維持高品質與高流動性。投資資產的平均帳面價值年增 4.2%，反映業務成長。

Our investment posture remains disciplined, supporting durable income generation while maintaining flexibility in a volatile market. Our new investments in the quarter comprised approximately $1.3 billion of assets with an average duration of five years. Our new investments are summarized in more detail on slide 20 of the presentation.

我們的投資策略仍維持紀律，在保有市場波動下的彈性同時，支持可持續的收益創造。本季新增投資約 13 億美元資產，平均存續期間為 5 年。我們在本簡報第 20 頁投影片對新增投資有更詳細的摘要。

Turning to slide 11. Our total capital position remains robust. The consolidated risk-based capital ratio remains well within our target range, which we manage between 360% and 390%, recognizing that some variability is expected quarter-to-quarter. Holding company liquidity ended the quarter at $280 million, well above our $150 million minimum target. Debt to capital was 26.4%, remaining comfortably within our 25% to 28% target range. Overall, our capital and liquidity position provides flexibility to support growth, manage risk and deploy capital thoughtfully over time.

接著看第 11 頁投影片。我們的總資本水位仍然穩健。合併風險資本比率（RBC）仍明顯落在我們的目標區間內；我們的管理目標為 360% 至 390%，並認知季度之間可能會有一定波動。控股公司流動性於季末為 2.8 億美元，遠高於我們 1.5 億美元的最低目標。負債對資本比率為 26.4%，仍舒適地落在 25% 至 28% 的目標區間。整體而言，我們的資本與流動性部位提供彈性，以支持成長、管理風險並在時間推移中審慎部署資本。

Turning to our 2026 guidance on slide 12. We're pleased with our first quarter results and the momentum we're carrying into the balance of the year. We feel good about the variables within our control and the underlying performance of the business. However, given the volatile macroeconomic environment and the simple fact that we have three quarters yet to go in 2026, we are affirming our original guidance at this time and consistent with our historical practice, we will refine our projections later in the year.

接著看第 12 頁投影片的 2026 年指引。我們對第一季結果以及延續至今年剩餘期間的動能感到滿意。我們對可控變數與業務的基礎表現有信心。然而，考量宏觀環境波動，以及 2026 年仍有三個季度尚未走完，我們目前維持原先指引不變；並依循我們一貫作法，將在今年稍晚再精進我們的預測。

Regarding our three-year operating return on equity target, we have been clear that 12% ROE was not the destination, but rather a waypoint in the journey of our continued improvement. Our recent ROE results make it likely that we will increase our 2027 ROE ambitions. However, just as with our annual guidance, we don't believe it would be appropriate to update our '27 ROE target less than halfway through the three-year cycle. We believe credibility is built through delivery, not through frequent recasting of long-term targets, and we intend to update our ROE objectives for '27 and beyond no later than early next year.

關於我們三年期的營運股東權益報酬率目標，我們一直很清楚：12% 的 ROE 不是終點，而是持續改善旅程中的一個里程碑。近期 ROE 表現使我們更可能提高 2027 年的 ROE 企圖心。不過，如同年度指引一樣，我們認為在三年週期尚未過半就更新 2027 年 ROE 目標並不合適。我們相信，可信度來自於交付成果，而非頻繁重塑長期目標；我們計畫最晚在明年年初更新 2027 年及之後的 ROE 目標。

And with that, I'll turn it back to Gary.

以上，我把時間交回給 Gary。

Thanks, Paul. Turning to slide 13. Consistent, repeatable results continue to drive our momentum as we grow earnings, improve profitability and reinvest in the business. Our results reflect the resilience of our business model and the strength of our diversified products and distribution. Disciplined execution will continue to drive our growth and create meaningful value for customers, associates and shareholders in 2026 and beyond. Thank you for your support of and interest in CNO Financial Group.

謝謝，Paul。接著看第 13 頁投影片。隨著我們擴大盈餘、提升獲利能力並再投資於業務，一致且可重複的成果持續推動我們的動能。我們的結果反映商業模式的韌性，以及多元化產品與通路的強勁。嚴謹的執行將持續推動成長，並在 2026 年及未來為客戶、同仁與股東創造具意義的價值。感謝各位對 CNO Financial Group 的支持與關注。

We will now open the call for questions. Operator?

我們現在開放提問。接線員？

(Operator Instructions) Suneet Kamath, Jefferies.

（接線員指示）Suneet Kamath，Jefferies。

I wanted to start with the Med Supp business. Paul, I think you talked about in your prepared remarks some pricing plans. Can you flesh that out a little bit and give a sense of the timing of when you'd expect those premiums to sort of kick in?

我想先從 Med Supp 業務談起。Paul，我記得你在事先準備的講稿中提到一些定價計畫。你能否再多說一點，並說明你預期這些保費大概何時會開始反映？

Sure. So we started seeing some increase in our Med Supp claims last year translating to higher benefit ratios. As you know, as you just mentioned, we have the opportunity to file rate increases annually, allowing us to address emerging experience and maintain profitability of the book over time with a bit of a lag.

當然。我們從去年開始看到 Med Supp 理賠有所上升，進而使給付率提高。如你所知、也如你剛提到的，我們每年都有機會申請調漲費率，讓我們能在出現新的經驗趨勢時加以因應，並在略有時間落差的情況下，維持該保單組合長期的獲利性。

So in '25, we filed for rate increases in two buckets. The closed block with a January 1, '26 effective date asking for an increase of 10.5%, and we received approvals for 10.2%. And then the closed block with July 1, '26 effective dates, we filed for 16.8%, and we're expecting approvals for around 14.5%.

因此在 2025 年，我們針對兩個區塊申請調漲費率。第一個是封閉保單組合（closed block），生效日為 2026 年 1 月 1 日，我們申請調漲 10.5%，並已獲核准 10.2%。第二個是封閉保單組合，生效日為 2026 年 7 月 1 日，我們申請調漲 16.8%，預期核准幅度約為 14.5%。

These rate increases earn in over time with the full quarterly impact over these two blocks evident by fourth quarter of this year, which should translate to improved benefit ratios, depending a little bit on claims experience in '26, which we would then address with 2027 rate filings. In the long run, over time, Med Supp is a good product for us, meeting our target returns.

這些調漲會隨時間逐步反映，對這兩個區塊而言，完整的單季影響將在今年第四季顯現，並應可轉化為較佳的給付率；當然仍會部分取決於 2026 年的理賠經驗，而我們會透過 2027 年的費率申請來因應。長期來看，Med Supp 對我們而言仍是個好產品，能達成我們的目標報酬。

The good news is that Med Supp is not our only product. And I think this illustrates the strength and the resiliency of our business model, including its product diversity, which typically translates to puts and takes in product margin across our product portfolio, but relatively stable and growing margin in total, and you certainly see that in our first quarter results.

好消息是，Med Supp 並不是我們唯一的產品。我認為這也說明了我們商業模式的強度與韌性，包括產品多元化；這通常會使我們產品組合中各產品利差出現此消彼長，但整體利差相對穩定且持續成長，而你也確實在我們第一季結果中看到了這點。

Got it. And are those two buckets that you mentioned similarly sized? Or is one bigger than the other?

了解。那你提到的這兩個區塊規模相近嗎？還是其中一個比較大？

The closed block, I'd say, is maybe 2/3 in the open block, about 1/3 roughly.

封閉保單組合我會說大概占 2/3，開放保單組合（open block）大約占 1/3，差不多是這樣。

Okay. And then maybe for Gary, just focusing on the Consumer segment. At the product level, it looked like Health NAP was quite strong, but life, D2C and annuities less so. And I think you had mentioned in annuities, some tough comps. So maybe just give us some color in terms of what you expect there. Are we getting to the point where the comps are getting just too difficult to grow? Or was there something anomalous in the first quarter?

好的。接著可能想請教 Gary，聚焦在消費者（Consumer）事業部。從產品層面來看，Health NAP 似乎相當強勁，但壽險、D2C 和年金相對弱一些。而且我記得你提到年金有一些比較基期很硬（tough comps）。所以能否請你補充一些背景，談談你對那邊的預期？我們是否已經到了比較基期變得太困難、以致於很難再成長的程度？還是第一季有什麼異常因素？

So Suneet, thanks for the question, and thanks for the continued interest in CNO. I didn't see any particular anomalies in the first quarter. And if anything, I would argue that all of the forces that have continued to allow us to grow are still there.

Suneet，謝謝你的提問，也謝謝你持續關注 CNO。我在第一季沒有看到任何特別的異常。若要說的話，我會認為，所有那些一直以來讓我們得以成長的力量仍然存在。

You still got the population. You still got 11,000 folks turning 65 every day. You still got the absence of alternatives. You still got longer lifespans. You've still got the fact that the government can't solve this problem.

人口因素仍在。每天仍有 11,000 人滿 65 歲。替代方案仍然不足。壽命仍在延長。政府仍然無法解決這個問題。

We expect demand for these products to continue to be very robust. You're right in citing the fact that we had tough comparables or strong comparables, I guess, I should say. Frankly, I would kill to have that problem every quarter.

我們預期這些產品的需求將持續非常強勁。你提到我們面臨較難的比較基期或我應該說是很強的比較基期，這點沒錯。坦白說，我巴不得每一季都有這種「問題」。

And even the 2% that we cited, I really regarded that as nothing more than just quarter-to-quarter fluctuation. I mean, remember, if the selling season in one quarter is one or two days shorter than another quarter, you're going to see variance. There's all kinds of stuff that goes on every quarter, to be really blunt, I don't pay that much attention to volume from quarter-to-quarter. I'm way more focused on the one- and three-year trends.

而且即便是我們提到的 2%，我也把它視為單純的季度間波動而已。你想想，如果某一季的銷售季比另一季少一兩天，就會看到差異。每一季都有各種因素在發生；老實說，我不會那麼在意季度對季度的量。我更關注的是一年期與三年期的趨勢。

And everything I see points me to strong demand, and more importantly or at least as importantly, a really strong ability on our product portfolio and distribution network to be able to execute and meet those demands. So I am extremely bullish, and I wouldn't pay any attention to minor fluctuations of 1% or 2% here or there. It's, in my mind, irrelevant.

我看到的一切都指向需求強勁；更重要的是，或至少同樣重要的是，我們的產品組合與通路網路具備非常強的執行能力，能夠落地並滿足這些需求。所以我非常看多，我不會去在意這裡或那裡 1% 或 2% 的小幅波動；在我看來，那無關緊要。

Ryan Krueger, KBW.

Ryan Krueger，KBW。

First question was just on expenses. I know you mentioned normalization during the rest of the year. But I mean, would you consider this all timing related in terms of the abnormally favorable expenses this quarter? Or do you think we are actually seeing some favorability maybe to what you had originally expected?

第一個問題是關於費用。我知道你提到今年其餘時間會回歸常態。但我的意思是，你會把本季異常有利的費用表現完全視為時點因素嗎？還是你認為我們實際上看到了一些超出你們原先預期的有利因素？

Ryan, it's Paul. I'm not sure I'm totally following the question. But just to offer some thoughts, and please give me a follow-up if I'm not answering the question. So there's always some variability across quarters. It's somewhat difficult to plan each quarter exactly.

Ryan，我是 Paul。我不確定我是否完全理解你的問題。不過我先分享一些想法；如果我沒有回答到點上，請你再追問。每個季度之間總會有一些波動，要把每一季都精準規劃其實有點困難。

Typically, in the first quarter of the year, we have higher expenses, which translates to a higher expense ratio, and that grades down over time. That's been pretty consistent over the last several years.

通常一年第一季費用會比較高，這會反映為較高的費用率，之後會逐步下降。過去幾年這個模式相當一致。

Honestly, that was our expectation this year. It hasn't played out that way. But we expect that the expenses for the full year will still come in around where we had originally planned, and that should translate to the expense ratio when you do the math. Having said that, the growth we're seeing in the business will drive likely some favorability in the denominator of the ratio. And I think that points to the continued leverage that we're getting in the business from the growth that we're seeing.

老實說，這也是我們今年的預期，但實際並沒有那樣發展。不過我們預期全年費用仍會大致落在我們原先規劃的水準，換算下來費用率也應該如此。話雖如此，我們看到的業務成長，可能會讓費用率分母端出現一些有利影響。我認為這也顯示出，隨著我們看到的成長，業務持續產生槓桿效益。

So Ryan, let me know if that did not answer your question.

所以 Ryan，如果這沒有回答到你的問題，請告訴我。

No, that was exactly what I was getting at. And then I just had one for Eric Johnson. There's certainly been a lot of volatility and, I guess, concern fluctuation in the credit markets these days. Just curious about your perspective on what you're seeing in the credit markets and also where you're seeing good opportunities to deploy new money right now.

不，這正是我想問的。接著我還有一題想問 Eric Johnson。最近信貸市場波動很大，我想也有不少擔憂與起伏。想請教你對目前信貸市場的觀察，以及你現在在哪些地方看到部署新增資金（new money）的好機會？

We've always taken the point of view that we wanted to have a stable and consistent investment performance at CNO. And so our asset allocation model over the last couple of years has really been predicated on being capital efficient and storing up dry powder for a more favorable environment where you could really make some money at lower levels of risk versus making very little bits of money at maybe higher levels of risk.

我們一直以來的觀點是，希望 CNO 的投資績效能夠穩定且一致。因此，過去幾年我們的資產配置模型，主要是以資本效率為前提，並保留「乾粉」（dry powder），等待更有利的環境：在較低風險水準下真正賺到一些錢，而不是在可能較高風險下只賺到很少的報酬。

And so as we got into this year and you had some vol in the first quarter, you saw a lot of rate vol. I mean, treasury curve moved up 30, 40 basis points. But credit spreads were actually pretty flat, kind of traveled in a 5- to -- in IG, maybe a 5-, 7-basis-point channel, high yield, maybe 30-, 40-basis-point channel. So you didn't really get the credit market was pretty well behaved largely because there was a lot of demand for product at higher rate levels.

因此進入今年後，第一季出現一些波動，你看到很多利率波動。公債殖利率曲線上移了 30、40 個基點。但信用利差其實相當平穩；投資級（IG）大概在 5 到 7 個基點的區間內波動，高收益可能在 30 到 40 個基點的區間。也就是說，信貸市場表現相當有秩序，主要因為在較高利率水準下，市場對產品的需求很強。

Investors were willing to buy stuff. And you saw that in oversubscriptions and continued good executions on new issues. So through the quarter, we pretty much stuck to our knitting, as you can see, it's in the earnings deck. We worked shorter on the curve largely because that was our ALM need, and we want to keep that in check. And then secondly, we just didn't -- there was not an extreme opportunity to make big money.

投資人願意買進，你也從超額認購以及新券發行持續良好的定價與成交中看得到。因此整個季度我們基本上按部就班；你可以在財報簡報（earnings deck）裡看到。我們在曲線上偏向較短天期，主要是因為這符合我們的資產負債管理（ALM）需求，我們希望把這點控制好。其次，我們也沒有——市場上並沒有出現那種可以賺大錢的極端機會。

So that's reflected in new money rate, which is around a little higher than 6%, consistent with prior quarters. We didn't launch at the market. We're going to let it come to us. Don't think this story is in the ninth inning. And as the economy evolves and the impact of higher energy costs and other things happen, there'll be better entry points for a real change in strategy. We're not there yet.

所以這反映在新增資金利率（new money rate）上，大約略高於 6%，與前幾季一致。我們沒有追著市場跑；我們會讓機會自己來找我們。我不認為這個故事已經進入第九局（ninth inning）。隨著經濟演變，以及更高能源成本與其他因素的影響逐步顯現，會出現更好的進場點，屆時才可能真正改變策略。我們現在還沒到那一步。

Joel Hurwitz, Dowling & Partners.

Joel Hurwitz，Dowling & Partners。

I wanted to start on the ROE target, and good to hear that will likely increase. I guess what do you think are the biggest drivers of the recent outperformance that you guys think is sustainable moving forward? Is it growth, expenses, experience?

我想先從 ROE 目標談起，也很高興聽到這個目標可能會上調。我想問的是，你們認為近期表現超預期的最大驅動因素是什麼，而且哪些是未來可持續的？是成長、費用，還是經驗（experience）？

Joel, I think it's all of the above. As we've said, as we've been saying for a couple of years, there aren't really any silver bullets here, but it's really a combination of things, actions taken across the value chain of the business that is driving earnings growth. And some of it's earnings, of course, but we're also taking actions in the denominator of the calculation. So being as efficient as possible in capital, we continue to focus on that.

Joel，我認為以上皆是。正如我們所說、也已經說了好幾年，這裡沒有什麼「銀彈」，而是多項因素的組合：我們在整個價值鏈上採取的行動共同推動了獲利成長。其中一部分當然是盈餘端，但我們也在計算式的分母端採取行動。因此我們持續聚焦於資本的最高效率使用。

So it's -- again, I feel like a little bit of a broken record on this question, but the answer hasn't changed, and that is that we are focusing on the entire business, and there are things that we are doing to improve effectiveness and efficiency and to drive growth and to drive risk-adjusted returns in the investment portfolio and to optimize capital. You add all that up and, sort of on a compounding basis, it has been driving ROE improvement, and we expect will continue to do so.

所以——我覺得我在這題上有點像壞掉的唱片，但答案沒有變：我們聚焦於整個業務，並且在做一些事情來提升效能與效率、推動成長、提升投資組合的風險調整後報酬，並最佳化資本。把這些加總起來，以某種複利的方式，已經推動 ROE 改善，我們也預期會持續如此。

Got it. That's helpful. And then shifting to long-term care. Can you just sort of unpack the experience and maybe expectations moving forward, right? Results have been favorable, and they look to improve further this quarter. I guess, is a margin around 50% sort of the new normal for that business?

了解，這很有幫助。接著轉到長期照護（long-term care）。你能否拆解一下目前的經驗表現，以及未來的預期？結果一直很有利，而且本季看起來還進一步改善。我想問的是，約 50% 的利潤率是否會成為這項業務的「新常態」？

Yes. So long-term care continues to perform exceptionally well. It continues to surprise us a bit to the upside, including in this quarter. We revised assumptions a bit last third quarter. We'll do that again this year in the third quarter. And we'll see how things evolve, but the claims experience has been reasonably stable and favorable. It continues to be a great business for us. It's a product that our customers need, and it's designed and priced in a way that generates good returns and stable results.

是的。長期照護持續表現得非常好，且持續在某種程度上帶來上行驚喜，包括本季。我們在去年第三季稍微調整了假設；今年第三季也會再做一次。我們會觀察後續發展，但理賠經驗一直相對穩定且有利。這對我們而言仍是一門很好的業務。這是客戶需要的產品，而且其設計與定價方式能帶來良好報酬與穩定結果。

Jack Matten, BMO Capital Markets.

Jack Matten，BMO 資本市場。

Just one follow-up on the ROE target. And given that the CNO is currently at 12.2%, there's still, I think, some meaningful benefits to emerge from actions you've taken in recent quarters. I'm just wondering if there are any, like, partial offsets or places where there could be some normalization as we think about that overall trajectory because it just seems like there could be some meaningful upside versus the original 12% target based on where things are currently running.

就 ROE 目標再追問一點。鑑於 CNO 目前為 12.2%，我認為你們在最近幾季採取的行動，仍有一些相當可觀的效益會逐步顯現。我想請教的是，當我們思考整體走勢時，是否存在任何例如部分抵銷或可能出現某種常態化的地方？因為就目前的運行狀況來看，相較於原先 12% 的目標，似乎可能有相當明顯的上行空間。

Yes, Jack, I can provide some initial thoughts, and Gary may want to jump in. I guess, two points. Number one, the operating earnings, we continue to drive and within a sort of a reasonable range, we expect to be able to continue to drive growth in operating earnings. We'll continue to focus on capital to drive improvement on that side of the equation.

是的，Jack，我可以先提供一些初步想法，Gary 也可能會補充。我想有兩點。第一，營運盈餘方面，我們會持續推動；在合理的區間內，我們預期能夠持續帶動營運盈餘成長。我們也會持續聚焦資本，以推動等式另一端的改善。

The other comment that I would make is that the denominator is shareholders' equity. And so it is impacted by nonoperating income, which, as you know, is volatile. So that can create some noise, plus or minus in the ratio over time. But over long periods of time, that tends to even out. So I'll leave it there.

另外我想補充的是，分母是股東權益。因此它會受到非營運收入的影響，而如你所知，非營運收入波動性很大。這會讓該比率在一段時間內出現正負方向的雜訊。但拉長時間來看，通常會趨於平衡。所以我先說到這裡。

I don't know, Gary, if you want to offer some higher-level comments.

我不確定，Gary，你是否想提供一些更高層次的評論。

Yes. Yes. Thanks, Paul. Jack, thanks for the question, and thanks for the interest. I think an important perspective to remember, 12%, we started out at the end of 2024 and said we wanted to improve our ROE by 200 basis points in three years.

是的。是的。謝謝你，Paul。Jack，謝謝你的提問，也謝謝你的關注。我認為需要記住的一個重要觀點是：12% 這個目標，我們是在 2024 年底提出的，當時我們說希望在三年內把 ROE 提升 200 個基點。

But we have, from the outset, been clear externally and internally that 12% number is not the destination, not even close. We have to continue to improve. We will continue to improve. So you should absolutely count on the fact that we're going to do everything we can to drive that above 12%. Really, the only question is by when and by how much. So whether we get to 12% in 2026 or 2027 or whatever it is, our aim is to continue to improve upon that. That's not good enough. We can get better, and that's within our reach. The only thing we're stopping short of doing is communicating by how much and by when. But you should absolutely take certainty in the fact that we are driven to improve that beyond 12%. 12% is nothing more than a way point.

但我們從一開始就對外、對內都很清楚地說明：12% 這個數字不是終點，甚至差得很遠。我們必須持續改善。我們也會持續改善。所以你完全可以預期，我們會盡一切努力把它推升到 12% 以上。真正的問題只有：何時、以及能到多高。因此，不論我們是在 2026 年或 2027 年或其他時間達到 12%，我們的目標都是在此基礎上持續改善。那還不夠好。我們可以做得更好，而且這在我們能力範圍之內。我們唯一暫時不做的是對外溝通：能提高多少、以及何時達成。但你可以非常確定的是，我們有強烈動力把它提升到 12% 以上。12% 只是一個里程碑。

That's helpful. And my other question is just on the RBC ratio and cons of that CNO is right in the middle of your target range right now. I guess sequentially this quarter, was there any kind of movement or impact from lower equity markets on hedges, kind of like what you had last year? And I guess if that is the case, would it be fair to think there's been likely a recovery on a mark-to-market basis given what's happened in April? Just curious any sensitivity you can provide around those movements.

這很有幫助。我另一個問題是關於 RBC 比率，以及該 CNO 的利弊：目前它正好在你們目標區間的中間。我想問的是，本季相較前一季，是否有任何因股市走低而對避險造成的變動或影響，類似你們去年遇到的情況？如果是這樣，是否可以合理推論，鑑於 4 月發生的情況，按市價評價（mark-to-market）基礎可能已出現回升？想請教你們能否提供一些對這些變動的敏感度說明。

Sure. The answer to those questions or comments, Jack, are yes and yes. We did have an impact from the S&P being down about 5% in the quarter. As you know from your question, that drives the reserves for FIAs and interest-sensitive life down. Economically, it drives the call option assets down by roughly the same amount.

當然。對你這些問題或評論的答案，Jack，是「是」以及「是」。本季 S&P 約下跌 5%，確實對我們造成影響。如你在問題中提到的，這會使 FIA 與利率敏感型壽險（interest-sensitive life）的準備金下降。從經濟角度看，這也會使買權（call option）資產大致以相同幅度下降。

But because there's a prescribed flooring in the statutory reserves of the FIAs and the ISLs, you end up with some noise, meaning lower surplus, lower RBC, lower dividend capacity. But as the equity markets recover, as they've done already in the quarter-to-date, that unwinds. From a planning perspective, we assume that this is a neutral impact in the year and over time.

但由於 FIA 與 ISL 的法定準備金有規定的下限（flooring），因此會產生一些雜訊，也就是盈餘（surplus）較低、RBC 較低、可分配股利能力較低。但當股市回升時——而且截至本季目前為止已經回升——這些影響就會回轉。從規劃角度，我們假設這在年度內以及長期而言是中性的影響。

Wilma Burdis, Raymond James.

Wilma Burdis，Raymond James。

Can you talk a little bit about the FABN market this year? Our understanding is that just the spread environment is a little bit less favorable. Just interested to hear what you're seeing there.

你能談談今年 FABN 市場的情況嗎？我們的理解是，利差環境稍微不那麼有利。想聽聽你們看到的狀況。

Thanks, Wilma. I'd invite you to take that, Eric.

謝謝你，Wilma。我想請你來回答，Eric。

If you look at what spreads in the market did during the first quarter of the year, financials actually widened out relative to, let's say, industrials, financials, including insurance and banks, widened out relative to industrial. So if you want to think about it as kind of on an arbitrage basis, that's negative to the kind of the basic arb of a funding agreement transaction, which is to be a financial -- an insurance company that issues and then you take the money and invest it, hopefully in high-quality industrials and utilities and things like that.

如果你看今年第一季市場利差的變化，金融類其實相對於——比如說——工業類是擴大的；金融類（包含保險與銀行）相對於工業類利差擴大。所以如果你用某種套利的角度來看，這對資金協議（funding agreement）交易的基本套利是不利的；其基本套利是：作為一家金融機構——一家發行資金協議的保險公司——發行後取得資金，再把資金投資到高品質的工業、公用事業等標的，希望能賺取利差。

So because of that negative arb during the quarter, I think we run our program on a pretty strict high-quality basis and a pretty high we have a pretty high target return on equity. And so I think had we tried to do an offering during the quarter, it would have perhaps produced a marginal contribution and not the one that we try to run the program around. That I think is -- that circumstance is moderating a bit since quarter end, financials have come in a little bit more, rates are a little bit higher.

因此，由於本季出現這種負套利（negative arb），我認為我們的計畫是以相當嚴格的高品質標準運作，而且我們對股東權益報酬率有相當高的目標。所以我想，如果我們在本季嘗試發行，可能只會帶來邊際性的貢獻，而不是我們希望用來運作該計畫的那種貢獻。我認為——這種情況在季末之後有所緩和，金融類利差收斂了一些，利率也稍微高了一點。

So we've had some relief in that tension, and we'll continue to reassess that as we get into our next window, which will probably be in June. We have meeting about it this morning actually, and we're keeping a close eye on it. I would also say that we don't have to issue unless the time is right for us and we can make achieve our targets without doing violence to our sense of risk and quality. So under no pressure to do anything. We'd like to because it's a good way to make money. We have a nice program. We're good at it and all that stuff. But we're not going to break the bank.

所以這種拉扯已獲得一些緩解；當我們進入下一個窗口期（可能在 6 月）時，會持續重新評估。其實我們今天早上就為此開會，我們也在密切關注。我也想說，我們不必在時機不對時發行；我們可以在不違背我們對風險與品質的判斷下達成目標。所以我們沒有任何壓力必須做什麼。我們希望發行，因為這是一個不錯的賺錢方式；我們有一個很好的計畫，我們也很擅長等等。但我們不會不計代價。

Makes sense. Sounds like a thoughtful approach. And could you talk a little bit more about your mortality expectations for the year? Seems like there was some favorability in the quarter. But is that just kind of a one-off? Like what are you seeing there? Just any color you can give for the rest of the year would be helpful.

了解。聽起來是很審慎的做法。你也能再多談一些你們今年對死亡率的預期嗎？看起來本季有一些有利因素。但那只是一次性的嗎？你們目前看到的是什麼？如果能提供一些對今年剩餘期間的看法會很有幫助。

Wilma, it's Paul. So yes, we saw some a bit of favorable mortality in our Trad life business. I'd say, kind of, within the normal range of expectations. And so we'll continue to monitor that and, again, revisit our assumptions in the third quarter.

Wilma，我是 Paul。所以是的，我們在傳統壽險（Trad life）業務看到一些較有利的死亡率表現。我會說，大致在正常的預期範圍內。因此我們會持續監測，並且同樣會在第三季重新檢視我們的假設。

There are no further questions at this time. I will now turn the call back to Adam Auvil, VP of Investor Relations, for closing remarks. Please go ahead.

目前沒有其他問題。我現在把電話交回給投資人關係副總裁 Adam Auvil 作結語。請開始。

Thank you, operator, and thank you all for participating in today's call. Please reach out to the Investor Relations team if you have any further questions. Have a great rest of your day.

謝謝接線員，也謝謝各位參與今天的電話會議。如有任何進一步問題，請聯絡投資人關係團隊。祝各位今天剩餘時間愉快。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位出席。您現在可以掛線。