CNO Financial Group (NYSE:CNO) outlined growth strategies for its worksite and Medicare businesses during an investor briefing, emphasizing captive distribution, supplemental insurance products and opportunities to expand its agent footprint.
Executives said both businesses support the company’s focus on serving middle-income Americans through in-person agents who help consumers assess insurance needs and enroll in coverage.
Worksite sales outpace broader market growth
The division targets employers with middle-income workforces, including teachers, first responders, union members, transit workers, utility employees and public-sector workers. DeToro said these sectors often need in-person benefits education because employees may not work at computers, may operate on varied shifts, or may be spread among multiple locations.
CNO’s workplace offerings include supplemental health policies such as critical illness, accident and hospital indemnity coverage, as well as supplemental life insurance. The company does not offer major medical, dental or vision insurance, DeToro said, citing its preference for products it can manufacture and service without provider networks.
The products are generally individual policies funded by employees, though payments can be made through payroll deduction or direct billing. Because the coverage is individually issued, policyholders can retain it after leaving an employer, according to DeToro.
DeToro said CNO has paid nearly $5 billion to policyholders since inception through return-of-premium features on certain supplemental health and life products, subject to state rules. The feature generally returns cumulative premiums paid, less benefits received, after 20 to 25 years.
She also pointed to reduced employer-sponsored benefits as a source of demand. In her presentation, DeToro said the share of employers offering major medical coverage declined to 61% from 78% over the last four years, particularly among employers with fewer than 100 workers. She added that 88% of employees with major medical coverage in 2025 were enrolled in a plan with a deductible, with the average annual deductible exceeding $1,800.
Captive agents and expansion support worksite strategy
Richard Shaffer, senior vice president of Worksite Sales, said CNO’s Washington National Insurance Company manufactures the insurance products while its wholly owned Optavise Career Agency distributes them. The company primarily uses captive agents rather than relying heavily on benefits brokers and outside enrollment firms.
Optavise agents are independent contractors compensated through product commissions, creating what Shaffer described as a variable-cost structure. The model gives CNO direct relationships with employers and employees before, during and after enrollment, while providing the company with visibility over training, supervision and compliance standards.
The company is seeking to expand geographically, particularly in areas where it has limited presence. Shaffer said 24% of annual worksite sales, a figure that is increasing, comes from geographic expansion locations.
As an example, Shaffer said CNO had minimal sales activity in Georgia four or five years ago. After supporting a leader and team moving from Florida into the state, annual sales in Georgia grew to between $4 million and $5 million. The company is determining its expansion states for 2027, he said.
CNO is also investing in leadership development, customer relationship management tools, enrollment technology and sales training. Shaffer said a new curriculum designed to help agents open new employer groups helped shift the share of new premium coming from new clients from roughly 10% to several times that level.
DeToro declined to provide a long-term worksite growth target, but said the company sees several sources of opportunity, including geographic expansion, new group development, recruiting and increased agent productivity. She said CNO’s field organization has not indicated that dental coverage is essential to its product lineup, though partnerships could be considered for products the company does not manufacture.
Medicare business combines underwriting and distribution fees
Scott Goldberg, president of CNO’s Consumer Division, said the Medicare market is large and positioned to grow alongside the aging U.S. population. CNO sells and underwrites Medicare Supplement policies while also distributing Medicare Advantage and prescription drug plans from other carriers.
Goldberg said the company has more than 5,000 licensed health insurance professionals, including Bankers Life agents, that distribute CNO products and approved partner plans. CNO has distribution agreements with more than two dozen carriers that collectively represent more than 90% of U.S. Medicare enrollments, he said.
For Medicare Supplement, CNO retains insurance risk. For Medicare Advantage and prescription drug plans, it acts as an agency and receives enrollment commissions and renewal fees while members remain enrolled.
Jeremy Williams, CNO’s chief actuary, said new Medicare Supplement policies sold have increased by more than 18% annually since 2023. In-force policies, which had remained near 200,000 for several years, reached 212,000 in 2026, he said.
Williams said higher healthcare utilization and medical cost trends pressured Medicare Supplement margins across the industry in recent years. However, he said CNO expects benefit ratios to move toward historical levels of 18% in 2026 as rate actions take effect. CNO received average rate-increase approvals of 11.3% in 2026, equal to about 95% of requested increases, according to Williams.
Industry rates have increased by roughly 35% since 2020, Williams said. He added that CNO’s persistency has remained stable and was higher in 2026 than in 2025 despite increased rates.
Executives see share and cross-selling opportunity
Goldberg said CNO represents less than 2% of total Medicare Supplement industry premium and sees room to increase share as it grows its field force. He said total industry earned premium is expected to be 50% larger over the next eight to 10 years.
Total Medicare policies sold by CNO are growing at a CAGR above 9%, Goldberg said. Medicare Advantage sales were slightly lower in the most recent annual election period following plan changes and market exits by some carriers, but total enrollment continued to rise.
Goldberg said Medicare can also open opportunities for broader household relationships. More than one-third of the time, CNO sells a second product to a household after engaging a Medicare customer, he said. Medicare Supplement buyers are more likely than Medicare Advantage buyers to purchase a second product, with roughly one in three Medicare Supplement policyholders doing so, compared with less than half that rate among Medicare Advantage customers.
Executives said CNO remains agnostic between Medicare Supplement and Medicare Advantage from an economic perspective because the products are priced to meet similar long-term return-on-equity targets. Goldberg said the company’s objective is to recommend the coverage that best fits each consumer’s circumstances.
About CNO Financial Group (NYSE:CNO)
CNO Financial Group is an Indiana‐based holding company that offers a range of insurance and retirement solutions through its operating subsidiaries. Its primary business activities include life insurance, annuities, and supplemental health insurance products designed to help individuals plan for retirement and manage health‐related expenses. The company serves middle‐income Americans, with particular emphasis on senior customers seeking guaranteed coverage and reliable income streams.
Originally founded as Conseco in 1979, the company underwent a financial restructuring and rebranded as CNO Financial Group in 2010.
