CNO Financial Group, Inc. · NYSE:CNO

CNO Financial — Q1 2011 Earnings Presentation

65 slides from CNO Financial's earnings presentation, May 3, 2011

1. Slide 1: 1Q11 Financial and operating results

   1Q11 Financial and operating results for the period ended March 31, 2011 May 3, 2011 Unless otherwise specified, comparisons in this presentation are between 1Q11 and 1Q10.

2. Slide 2: Forward-Looking Statements

   Forward-Looking Statements Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in these materials relative to markets for CNO Financial’s products and trends in CNO Financial’s operations or financial results, as well as other sta

3. Slide 3: Non-GAAP Measures

   Non-GAAP Measures This presentation contains the following financial measures that differ from the comparable measures under Generally Accepted Accounting Principles (GAAP): operating earnings measures; book value, excluding accumulated other comprehensive income (loss) per share; operating return m

4. Slide 4: CNO Financial Group

   o CNO FINANCIAL GROUP CNO Financial Group

5. Slide 5: 1Q11: Summary CNO

   1Q11: Summary CNO  Net income of $53.9 million, compared to $33.9 million  Net operating income* up 36% to $51.9 million, or 18 cents per diluted share  Consolidated RBC at 341%, up 9 percentage points from 12/31/10 – Driven by statutory earnings of $101 million – Partially offset by $60 million

6. Slide 6: 1Q11 Summary of Results

   1Q11 Summary of Results CNO ($ millions, except per-share amounts) Pre-Tax After Tax EPS Bankers Life $63.9 Washington National 25.2 Colonial Penn 5.4 Other CNO Business 7.1 Corporate operations and interest expense (21.1) Operating income* 80.5 $51.9 $0.18 Loss on extinguishment of debt (1.4) (0.9)

7. Slide 7: Quarterly Earnings

   Quarterly Earnings CNO ($ millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Bankers Life $ 53.2 $ 64.0 $ 95.5 $ 71.4 $ 63.9 Washington National 27.6 21.1 27.2 28.7 25.2 Colonial Penn 5.3 7.6 7.8 5.8 5.4 Other CNO Business (1.9) 8.8 (24.4) 6.0 7.1 Corporate operations, excluding interest expense (5.0) (11.8) (12.3)

8. Slide 8: Operating ROE

   Operating ROE CNO ($ millions) Operating ROE*, Trailing 4 Quarters 1Q10 2Q10 3Q10 4Q10 1Q11 6.2% 6.0% 5.5% 6.0% 6.3% Average common shareholders’ equity, excluding AOCI/L and net operating loss $2,679.2 $2,808.3 $2,942.8 $3,048.5 $3,129.7 carryforwards, trailing 4 quarters: *Operating return exclude

9. Slide 9: Operating EPS (Diluted)

   Operating EPS* (Diluted) CNO  Increased EPS despite dilution 4Q10 1Q11 2Q10 3Q10 $0.18 $0.18 $0.16 $0.16 1Q10 $0.14 Weighted average diluted shares (in millions)**: 292.1 302.6 306.0 306.7 307.5 * Operating earnings per share exclude loss on extinguishment of debt, net realized investment gains (lo

10. Slide 10: Book Value

    Book Value CNO ($ millions, except per-share amounts) 03/31/10 06/30/10 09/30/10 12/31/10 03/31/11 Shareholders' Equity (Excluding AOCI/L) $3,823.1 $3,864.0 $3,916.2 $4,087.0 $4,142.8 Accumulated Other Comprehensive Income (Loss) (103.0) 318.8 688.1 238.3 257.6 Total Shareholders' Equity $3,720.1 $4

11. Slide 11: Pre/After Tax GAAP Operating Income

    Pre/After Tax GAAP Operating Income CNO ($ millions) $350.0 $302.4 $300.0 $281.6 $252.3 $250.0 $106.8 $99.7 $87.7 $200.0 $150.0 $100.0 $195.6 $181.9 $164.6 $50.0 $0.0 2009 2010 LTM as of 3/31/2011 Net Operating Income Tax Accounting Expense on Operating Income CNO Financial Group 11

12. Slide 12: Statutory Earnings Power

    Statutory Earnings Power CNO ($ millions) $500.0 $472.0 $450.0 $406.6 $411.6 $400.0 $134.4 $350.0 $132.4 $137.1 $300.0 $250.0 $200.0 $337.6 $150.0 $269.5 $279.2 $100.0 $50.0 $0.0 2009 2010 LTM as of 3/31/2011 Pre-Tax Operating Income Fees and Interest to Holding Company CNO Financial Group 12

13. Slide 13: Financial Strength

    Financial ($ millions) Strength CNO Consolidated RBC Ratio* 1Q11 Liquidity 341% 3Q10 $190.1 1Q11 4Q10 4Q10 $169.0 332% $161.1 1Q10 2Q10 $131.2 $129.9 1Q10 3Q10 2Q10 320% 319% 318% Debt to Total Capital Ratio**  RBC increased to 341% in 1Q11 21.6% 21.3% 21.2% 20.0% 19.2% – Positive impact primarily

14. Slide 14: 1Q Summary Bankers Life

    1Q Summary Bankers Life  Earnings of $63.9 million, up 20% – Results were favorably impacted by: • $14 million from improved spreads and growth in the annuity block • $11 million due to favorable reserve impacts in long-term care • $7 million due to favorable claim development in Medicare supplemen

15. Slide 15: Bankers Life Sales and Distribution Results

    Sales and Distribution Results Bankers Life ($ millions) Quarterly NAP*  Mixed sales results – Continued strong life sales, up 5% 2Q10 4Q10 – Lower Med supp sales, down 5%, 1Q10 $64.0 3Q10 $68.5 1Q11 $57.5 $55.3 $55.2 and LTC sales, down 19%, impacted by consumer preference for lower cost products

16. Slide 16: Medicare Supplement Update

    Medicare Supplement Update Bankers Life  Industry and Competition – Leading competitor pulling Plan N and significantly increasing rate on in- force and new business – Bankers plans to take no pricing actions this year, as product is performing to profit expectations  1Q11 Highlights – 5% decline

17. Slide 17: LTC Update

    LTC Update Bankers Life  Stable financial results – Continued claims management improvements contributed to $11 million favorable reserve development in 1Q11  Rate increase filings continue – Filing for increases on most plans sold between 2002 and 2005 – Filing for increases on inflationary plans

18. Slide 18: Bankers Life Quarterly Earnings

    Quarterly Earnings Bankers Life ($ millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Insurance policy income $396.2 $400.7 $405.1 $394.2 $400.0 Net investment income: General account assets 172.2 177.0 182.4 187.7 191.3 Other portfolios 13.7 (16.5) 26.1 16.3 18.3 Fee revenue and other income 2.3 2.7 3.6 4.2 2.3 To

19. Slide 19: 1Q Summary Washington National

    1Q Summary Washington National  Earnings of $25.2 million, down $2.4 million primarily from favorable reserve refinements related to our life products in 1Q10  Sales (NAP) of $17 million, up 3% – Supplemental health NAP of $15.7 million, up 7%  Solid recruiting results for the WNIC Independent ch

20. Slide 20: 1Q11 Sales Results Washington National

    1Q11 ($ millions) Sales Results Washington National  Supplemental health sales up 7% $15.7 $14.6  Life sales up 7% 1Q10 NAP 1Q11 NAP $0.8 $1.1 $0.7 $0.5 Life Medicare Supplement Supplemental Health CNO Financial Group 20

21. Slide 21: Quarterly Earnings Washington National

    Quarterly Earnings ($ millions) Washington National 1Q10 2Q10 3Q10 4Q10 1Q11 Insurance policy income $145.4 $144.7 $144.9 $146.0 $145.4 Net investment income: General account assets 45.5 45.8 46.2 46.7 46.3 Other portfolios (0.1) 0.1 0.2 1.0 - Fee revenue and other income 0.3 0.2 0.3 0.3 0.3 Total r

22. Slide 22: 1Q Summary Colonial Penn

    1Q Summary Colonial Penn  Earnings of $5.4 million, compared to $5.3 million  Sales growth continues, NAP up 4% CNO Financial Group 22

23. Slide 23: Quarterly Earnings Colonial Penn

    Quarterly ($ millions) Earnings Colonial Penn 1Q10 2Q10 3Q10 4Q10 1Q11 Insurance policy income $48.2 $49.3 $48.8 $48.6 $50.3 Net investment income 9.7 9.7 9.9 10.0 10.3 Fee revenue and other income 0.2 0.1 0.2 0.2 0.2 Total revenues 58.1 59.1 58.9 58.8 60.8 Insurance policy benefits 36.4 35.2 36.1 3

24. Slide 24: 1Q Summary Other CNO Business

    1Q Summary Other CNO Business  Earnings of $7.1 million, compared to loss of $1.9 million – Favorable mortality in 1Q11 – Results in 1Q10 were unfavorably impacted by changes in assumptions related to when certain non-guaranteed elements will be implemented CNO Financial Group 24

25. Slide 25: Quarterly Earnings (Losses) Other CNO Business

    Quarterly ($ millions) Earnings (Losses) Other CNO Business 1Q10 2Q10 3Q10 4Q10 1Q11 Insurance policy income $74.8 $73.2 $75.7 $74.2 $71.5 Net investment income: General account assets 87.8 88.5 88.0 87.8 88.2 Other portfolios 4.8 (8.1) 8.5 7.3 6.5 Total revenues 167.4 153.6 172.2 169.3 166.2 Insura

26. Slide 26: Summary of Proposed Amendments to Senior Secured Credit Facility

    Summary of Proposed Amendments to CNO Senior Secured Credit Facility*  Reduce spread by 100 bps to L+500 bps and reduce the LIBOR floor by 25 bps to 1.25%  Introduce step downs for mandatory prepayments due to Restricted Payments – Requirement steps down to $0.50 prepayment for every $1 of Restric

27. Slide 27: Excess Capital Utilization Opportunities

    Excess Capital Utilization Opportunities CNO  Debt Prepayment  Share Buybacks  Common Stock Dividends  Investing in Business for Additional Growth  Build Holding Company Investment Portfolio – Utilize non-life operating loss carryforward CNO Financial Group 27

28. Slide 28: GAAP Balances for Deferred Tax Asset: Loss Carryforwards

    GAAP Balances for Deferred Tax Asset as of 3/31/11: Loss Carryforwards – Gross1 vs. Net2 CNO ($ millions) $1,000.0 Gross Totals $877.0 Net Gross Loss Carryforwards $1,889.5 $800.0 Gross $160.0 Valuation Allowance (1,060.4) $669.1 Net Loss Carryforwards $829.1 $600.0 Valuation Gross $400.0 Allowance

29. Slide 29: Net Investment Income

    Net Investment Income ($ millions) CNO General Account Investment Income New Money Rate (excluding floating rate FHLB): 6.21% 6.26% 6.00% 5.96% 5.60% 1Q11  Increase in investment income 4Q10 $336.1 3Q10 $332.2 2Q10 $326.5 primarily due to growth in assets 1Q10 $315.2 $321.1  Implemented $750mm FHL

30. Slide 30: Realized Gains/Losses Recognized through Net Income

    Realized Gains/Losses Recognized through Net Income CNO ($ millions) 1Q10 2Q10 3Q10 4Q10 1Q11 Gross Gains $50.9 $60.9 $101.5 $138.8 $43.5 Gross Losses (35.5) (49.7) (73.4) (13.5) (25.1) Losses due to recognition of other-than-temporary impairments recognized in earnings (20.3) (27.9) (24.5) (77.1) (

31. Slide 31: Unrealized Gain/Loss

    Unrealized Gain/Loss* CNO ($ millions) Unrealized Gain/Loss % of Invested Assets $1,600 8.0% $1,400 Unrealized Gain/Loss $1,200 6.0% $1,000 % of Invested Assets $800 4.0% $600 $400 2.0% $200 $0 0.0% ($200) 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 ($400) -2.0% *Includes debt and equity securities clas

32. Slide 32: 1Q11 Impairments

    1Q11 ($ millions) Impairments CNO Amount Amount Recognized Recognized Gross through through Net Amounts AOCI/L Income Corporates - IGA $ 6.4 $ - $ 6.4 Corporates - Other 3.2 - 3.2 RMBS/ABS 0.1 - 0.1 Commercial Mortgage Loans 3.5 - 3.5 Other 0.1 - 0.1 Total $ 13.3 $ - $ 13.3 CNO Financial Group 32

33. Slide 33: Asset Allocation at 3/31/11

    Asset Allocation at 3/31/11* CNO ($ millions) MTM reflects low market yields in $13,310 most credit sectors $12,831 Market Value Book Value $2,050 $2,047 $1,836 $1,751 $1,762 $1,176 $1,173 $1,410 $1,336 $1,768 $722 $707 $1,257 $1,270 $621 $619 IG Corporates CMOs Mortgage HY Corporates CMBS Municipal

34. Slide 34: Investment Quality: Fixed Maturities

    Investment Quality: Fixed Maturities* CNO Fixed Maturities, available for sale, by Rating  90% investment grade at 3/31/11 (Market Value)  Favorable corporate bond ratings <BBB AAA trends 10% 13% AA  RMBS Ratings erosion due to 9% seasoning effect (no NAIC RBC BBB impact) 45% A 23% 3/31/10 6/30/1

35. Slide 35: Alt-A at 3/31/11

    Alt-A at 3/31/11 CNO ($ millions) Market Value Book Value Avg. 60+ Avg. Accum. % of Rating (mil.) (mil.) % of Alt-A* Avg. FICO Avg. Support Delinq. Loss Portfolio* AAA $50.6 $49.9 16.5% 719 43.1% 20.5% 3.7% 0.21% AA 44.2 43.7 14.4% 707 31.8% 17.5% 2.1% 0.18% A 32.1 31.0 10.5% 712 37.3% 25.8% 4.3% 0.

36. Slide 36: Prime Jumbo at 3/31/11

    Prime Jumbo at 3/31/11 CNO ($ millions) Market Value Book Value % of Prime Avg. 60+ Avg. Accum. % of Rating (mil.) (mil.) Jumbo* Avg. FICO Avg. Support Delinq. Loss Portfolio* AAA $137.8 $134.4 12.5% 734 7.4% 3.5% 0.08% 0.57% AA 86.2 83.7 7.8% 739 18.2% 8.1% 0.79% 0.36% A 165.8 164.7 15.1% 737 23.7%

37. Slide 37: CMBS at 3/31/11

    CMBS at 3/31/11 CNO ($ millions) 2009 2010 2011 Our CMBS exposure is heavily weighted towards AAA-rated 3.7% 1.4% .5% securities with substantial credit support, and seasoned vintages with relatively stronger qualitative characteristics. Pre-2004 18.8% 2007 AAA AA A BBB <BBB 21.9% 2004 Pre-2004 $ 18

38. Slide 38: CMBS at 3/31/11

    CMBS at 3/31/11 CNO ($ millions) Market Value Book Value Avg. 60+ Avg. Accum. % of Rating (mil.) (mil.) % of CMBS* Avg. Support Delinq. Loss Portfolio* AAA $1,197.5 $1,124.8 85.0% 27.7% 5.3% 0.8% 4.98% AA 129.6 123.6 9.2% 21.6% 3.8% 1.2% 0.54% A 58.2 58.9 4.1% 11.2% 1.6% 0.4% 0.24% BBB 21.6 24.7 1.5

39. Slide 39: Commercial Mortgage Loans at 3/31/11

    Commercial Mortgage Loans at 3/31/11 CNO By Vintage By Property Type 2010 2011 4.7% 0.8% 2009 0.4% Other Industry 0.2% 2004 and 18.0% 2008 Prior 18.8% Office 27.0% 36.9% 2005 2007 9.5% Retail 20.4% 40.1% 2006 18.4% Multi- Family 4.8%  Current LTV of approximately 59.2%  Trailing debt service cover

40. Slide 40: Summary

    Summary CNO  Solid earnings continued in 1Q  Capital generation creates unique opportunities – Generating significant amounts of excess capital – Retaining more capital in holding company to generate more non-life income and utilize operating loss carryforwards  Continued emphasis on profitable g

41. Slide 41: Questions and Answers

    Questions and Answers CNO Financial Group 41

42. Slide 42: Appendix

    Appendix CNO Financial Group 42

43. Slide 43: Covenant Metrics

    Covenant Metrics CNO Covenants levels per agreement Debt to Capital* Interest Coverage Ratio 35% 4.0 30% 30.0% 3.6 25% 21.6% 21.3% 21.2% 3.0 20.0% 19.2% 20% 2.0 2.0 15% 10% 1.0 5% 0% ** ** ** ** 0.0 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 3/31/10 6/30/10 9/30/10 12/31/10 3/31/11 2,000 Statutory Sur

44. Slide 44: 1Q11 Holding Company Liquidity

    1Q11 Holding Company Liquidity CNO ($ millions) Cash Balance 12/31/2010 $161.1 Sources Dividends from Insurance Subsidiaries 60.0 Surplus Debenture Interest 12.0 Service and Investment Fees, Net 3.4 Total Sources 75.4 Uses Interest 8.0 Debt Repayments 50.0 Holding Company Expenses and Other 9.5 Tota

45. Slide 45: Debt Maturity Profile

    Debt ($ millions) Maturity Profile CNO Maturity Profile Prior to 4Q10 Refinancing Current Maturity Profile 2011 – 2018 2011 – 2018 $700 $700 $602 $600 $600 $500 $500 $400 $400 $383 $577 $293 $300 $300 $275 $293 (1) $200 $200 $293 $275 $80 $85 $100 $65 $100 $75 $60 $45 $40 $25 $55 $35 $20 $75 $85 $90

46. Slide 46: Operating Return on Allocated Capital Computation

    Operating Return on Allocated Capital Computation* ($ millions) Adjusted operating earnings for the purpose of calculating operating return on allocated capital is determined as follows: Washington Colonial Other CNO Bankers Life National Penn Business Corporate Total For twelve months ended March 3

47. Slide 47: Commercial Mortgage Loans at 3/31/11

    Commercial Mortgage Loans at 3/31/11 CNO Geographic Distribution New England 8.9% Pacific Middle 9.8% West North Atlantic Central East North 8.4% 13.8% Central Mountain 15.8% 10.2% East South South Central Atlantic 3.1% 23.8% West South Central 6.2% CNO Financial Group 47

48. Slide 48: Commercial Mortgage Loans at 3/31/11

    Commercial Mortgage Loans at 3/31/11 CNO ($ millions) Remaining Principal Balance By Maturity Post 2025 $312 2018 2017 $283 $266 2013 $157 2016 2015 $122 $137 2014 2022 $88 $103 2012 2019 2025 2023 2011 $39 $54 2020 $59 $47 2024 $22 $38 2021 $24 $11 CNO Financial Group 48

49. Slide 49: Premiums Collected

    Premiums Collected CNO ($ millions) Collected Premiums -Trailing 4 Quarters  Trailing 4 quarters down 9% 1Q10 2Q10 $3,937.2 3Q10 4Q10 1Q11 – Stable results at Bankers Life $3,819.6 $3,651.1 $3,590.1 $3,586.7 BLC PFFS (excluding PFFS), Washington National, and Colonial Penn – Decline at OCB primaril

50. Slide 50: Premiums Collected – Med Supp Bankers Life

    Premiums ($ millions) Collected – Med Supp Bankers Life Med Supp – First-Year Premiums 2Q10 3Q10 4Q10 1Q10 $29.4 $29.3 $30.5  First-year premiums down 8% $27.2 1Q11 $25.1 Med Supp First-Year Prems.-Tr. 4 Qtrs: $99.2 $107.5 $114.1 $116.4 $114.3 Med Supp Total Premiums-Quarterly: $176.6 $168.8 $170.1

51. Slide 51: Premiums Collected – LTC Bankers Life

    Premiums Collected – LTC Bankers Life ($ millions) Long-Term Care – First-Year Premiums*  Net first-year premiums up 27%, reflecting reduction in new 1Q10 2Q10 (Direct) 3Q10 business reinsurance $9.1 (Direct) $9.2 (Direct) 4Q10 (Direct) 1Q11 $8.5 (Direct) $8.2 $7.6 (Net) (Net) (Net) (Net) (Net) $4.

52. Slide 52: Premiums Collected – Life Bankers Life

    Premiums ($ millions) Collected – Life Bankers Life Life – First-Year Premiums 4Q10  First-year premiums up 22% 2Q10 3Q10 $25.8 $26.9 1Q11 $24.8 $24.7 1Q10 $20.2 $12.3 $11.9 $11.0 $12.4 SPWL $9.6 Non- $13.9 $14.6 $13.7 $12.4 SPWL $10.6 First-Year Prems.-Tr. 4 Qtrs: $86.0 $91.4 $93.8 $97.7 $102.2 To

53. Slide 53: Premiums Collected – Annuity Bankers Life

    Premiums ($ millions) Collected – Annuity Bankers Life Annuity – First-Year Premiums  First-year premiums down 1% 2Q10 $280.0 3Q10 $264.7 4Q10 1Q10 1Q11 $233.4 $223.1 $221.3 First-Year Prems.-Tr. 4 Qtrs: $979.1 $984.4 $965.1 $1,001.2 $999.4 Total Premiums-Quarterly: $224.4 $281.1 $265.8 $234.4 $222

54. Slide 54: Premiums Collected – Supplemental Health Washington National

    Premiums Collected – Supplemental Health Washington National ($ millions) Supplemental Health – First-Year Premiums  First-year premiums up 6% 1Q10 2Q10 3Q10 4Q10 1Q11 $13.1 $13.0 $13.4 $13.2 – Increased focus on supplemental $12.5 health products First-Year Prems.-Tr. 4 Qtrs: $47.7 $49.7 $50.9 $52

55. Slide 55: Premiums Collected – Life Colonial Penn

    Premiums ($ millions) Collected – Life Colonial Penn Life – First-Year Premiums  First-year premiums up 10% 1Q11 2Q10 3Q10 4Q10 1Q10 $8.7 $8.1 $8.1 $8.2 $7.9 First-Year Prems.-Tr. 4 Qtrs: $31.7 $31.4 $31.6 $32.3 $33.1 Total Premiums-Quarterly: $47.3 $46.7 $46.9 $46.8 $49.4 NAP-Quarterly: $13.1 $12.

56. Slide 56: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes am

57. Slide 57: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures A reconciliation of net income applicable to common stock to net operating income (and related per-share amounts) is as follows (dollars in millions, except per-share amounts): 1Q10 2Q10 3Q10 4Q10 1Q11 Net income applicable to common stock $

58. Slide 58: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures A reconciliation of operating income and shares used to calculate basic and diluted operations earnings per share is as follows (dollars in millions, except per-share amounts, and shares in thousands): 1Q10 2Q10 3Q10 4Q10 1Q11 Operating inco

59. Slide 59: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures Book value, excluding accumulated other comprehensive income (loss), per share This non-GAAP financial measure differs from book value per share because accumulated other comprehensive income (loss) has been excluded from the book value used

60. Slide 60: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures Operating return measures Management believes that an analysis of return before loss on extinguishment of debt, net realized gains or losses, and increases or decreases to our valuation allowance for deferred tax assets (“net operating incom

61. Slide 61: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures The calculations of: (i) operating return on allocated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (ii) return on equity, for the twelve months end

62. Slide 62: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures A reconciliation of pretax operating earnings (a non-GAAP financial measure) to segment operating return (loss) and consolidated net income (loss) for the twelve months ended March 31, 2011, is as follows (dollars in millions): Bankers Washi

63. Slide 63: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures A reconciliation of average allocated capital (for the purpose of determining return on allocated capital), excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to averag

64. Slide 64: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non- GAAP financial measure) to common shareholders’ equity, is as follows (dollars in millions): (Cont

65. Slide 65: Information Related to Certain Non-GAAP Financial Measures

    Information Related to Certain Non-GAAP Financial Measures Debt to capital ratio, excluding accumulated other comprehensive income (loss) This non-GAAP financial measure differs from the debt to capital ratio because accumulated other comprehensive (income) loss has been excluded from the value of c

CNO Financial Group — Q1 2011 Earnings Presentation on 6ix