CNO Financial Group, Inc. · NYSE:CNO
CNO Financial — Conseco — Q2 2007 Earnings Presentation
68 slides from CNO Financial's earnings presentation, August 2007
Slide 1: Second Quarter 2007 Financial and Operating Results
Second Quarter 2007 Financial and Operating Results For the period ended June 30, 2007 Conseco, Inc.
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 Conseco’s products and trends in Conseco’s operations or financial results, as well as other statements, con
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 diluted share; operating r
Slide 4: Q2 2007 Summary CNO
Q2 2007 Summary CNO Significant increase of $124 million in LTC Runoff block claim reserves • $110 million represents reserve strengthening • This action should reduce earnings volatility from loss experience in future periods Continued strong sales growth at Bankers Life and Colonial Penn, bett
Slide 5: New Business Volumes (NAP) CNO Consolidated
New Business Volumes (NAP) CNO Consolidated Q1 2007 (in millions) $134.2 Q2 2007 $21.0 Q2 2007 NAP up 10% vs Q2 Q2 2006 $98.3 Q3 2006 Q4 2006 $10.4 $108.0 $92.6 2006, driven by increases at $87.8 $20.0 CIG $24.6 Col. Penn Colonial Penn (23%) and $26.3 $24.1 $11.2 $9.1 Bankers (19%) $8.3 $7.5 $102.
Slide 6: Collected Premium CNO Consolidated
Collected Premium CNO Consolidated $1,058.6 $1,044.5 ($ millions) $82.4 $76.2 Run-Off Collected premium in Q2 2007 was essentially flat vs Q2 2006, primarily driven by: • Lower annuity volumes at $627.5 $609.2 Bankers* Bankers • Lower life and Medicare supplement collections at CIG, offset by high
Slide 7: Operating ROE CNO
Operating ROE CNO Conseco has set a long-term goal of improving its Operating ROE – after-tax earnings divided by equity (excluding our NOL deferred tax asset from equity and other adjustments below) – to 11% in 2009 Operating ROE*, Trailing 4 Quarters Operating ROE (excl. proposed litigation sett
Slide 8: Q2 Earnings CNO Consolidated
Q2 Earnings CNO Consolidated ($ millions) Q2 2006 Q2 2007 Bankers Life $63.7 $65.5 Conseco Insurance Group 64.7 43.8 Colonial Penn 6.5 6.7 Other Business in Run-Off 4.4 (133.2) Corporate operations, excluding interest expense (5.0) (8.0) EBIT, excluding costs related to the proposed litigation settl
Slide 9: Operating EPS (Diluted) CNO
Operating EPS (Diluted) CNO Operating EPS* Operating EPS, Before Proposed Litigation Settlement Charges** Q2 2006 Q3 2006 $0.46 $0.35 Q3 2006 $0.35 Q1 2007 Q1 2007 $0.15 Q4 2006 $0.10 Q4 2006 $0.04 $0.04 Q2 2007 Q2 2006 ($0.19) ($0.21) Q2 2007 ($0.32) *Operating earnings per share exclude net **Oper
Slide 10: Q2 Earnings LTC Closed Block
Q2 Earnings LTC Closed Block ($ millions) Q2 2006 Q2 2007 Insurance policy income $82.1 $78.1 Net investment income 44.6 47.6 Fee revenue and other income 0.1 0.1 Total revenues 126.8 125.8 Insurance policy benefits 96.9 231.6 Amortization related to operations 3.5 5.8 Other operating costs and expe
Slide 11: Segment Performance LTC Closed Block
Segment Performance LTC Closed Block Pre-Tax Operating Income* ($ millions) Q2 2006 Q2 2007 reflects $118 million of $4.4 increases to prior-period incurred claims estimates Q3 2006 • Includes $110 million of strengthening -$13.0 adjustments to claim reserve methods and Q1 2007 -$30.9 assumptions
Slide 12: Benefit Detail LTC Closed Block
Benefit Detail LTC Closed Block ($ millions) Total Benefits Incurred claims in all periods Q2 2007 $231.6 reflect volatility due to development of out-of-period incurred claim Q4 2006 estimates $162.7 • Includes reserve strengthening Q1 2007 Q3 2006 $130.0 adjustments of $110 million in Q2 2007 $1
Slide 13: Interest-Adjusted Benefit Ratio LTC Closed Block
Interest-Adjusted Benefit Ratio* LTC Closed Block Q2 2007 Verified basis normalizes all 236.7% periods for impact of claim reserve deficiencies Q4 2006 • Prior period deficiencies 143.5% increased benefit ratio by 152 Q1 2007 105.3% Q3 2006 percentage points in Q2 2007 Q2 2006 83.1% 64.4% Q2 200
Slide 14: Balance Sheet Detail LTC Closed Block
Balance Sheet Detail LTC Closed Block ($ millions) Insurance Liabilities and Intangible Assets, Net of Reinsurance Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Reserve for Future Benefits $2,413.3 $2,413.6 $2,412.7 $2,412.3 $2,409.1 Claim Reserve 731.4 734.8 801.2 816.5 940.4 Insurance Acquisition Costs
Slide 15: Q2 2007 Summary LTC Closed Block
Q2 2007 Summary LTC Closed Block Our program for improvement is having a positive effect on business fundamentals • Premium re-rates • Claims management • Technology and organizational design 15
Slide 16: Premium Re-rates LTC Closed Block
Premium Re-rates LTC Closed Block Re-rates Submitted: 100% of Goal Re-rates Approved: 84% of Goal $55.6 $55.6 $55.6 $41.7 $35.2 $39.4 $ M illions $25.9 $ Millions $26.3 $19.2 $9.9 $8.3 $0.0 $0.0 $0.0 8/31/06 10/31/06 3/1/07 5/1/07 8/3/07 8/31/06 10/31/06 3/1/07 5/1/07 8/3/07 Re-rates Implemented: 81
Slide 17: Program for Improvement: Rate Increase Plan
Program for Improvement LTC Closed Block Rate Increase Plan – Round Two Additional Premium (mil.) Timeline Filings $46 Q2 2007 – Q1 2008 Approvals $28 Q3 2007 – Q4 2008 Implementation $22 Q3 2007 – Q1 2009 Round Two filings have begun 17
Slide 18: Program for Improvement: Claims Management
Program for Improvement LTC Closed Block Claims management • Continued implementation of best practices through use of LTC industry experts • Streamlined claims processes drive improved customer service and compliance • Recertification of active claims has begun; program includes case management r
Slide 19: Program for Improvement: Technology and Organizational Design
Program for Improvement LTC Closed Block Technology and Organizational Design • July 12 - announced study of systems and operational solution from Long Term Care Group, an industry leader • Proposal under consideration would include outsourcing of: • Customer call center • Processing of continuing
Slide 20: Segment Summary LTC Closed Block
Segment Summary LTC Closed Block Financial results impacted by reserve strengthening and recent experience Program for improvement initiatives continue to make good progress • Implemented billing of $28.4 million in approved rate increases, 81% of $35 million program • Studying sourcing of syste
Slide 21: Financial Indicators CNO
Financial Indicators* CNO Book value per diluted share (excluding accumulated other comprehensive loss) • $24.90 at 6/30/07 vs $25.84 a year earlier and $25.64 at YE 2006 Debt and preferred stock to total capital ratio (excluding accumulated other comprehensive loss) • 20.3% at 6/30/07 vs 26.6%
Slide 22: Aggregate Interest-Adjusted Health Benefit Ratio
Aggregate Interest-Adjusted Health Benefit Ratio* CNO Aggregate Health Benefit Ratio – By Quarter Benefit ratios on core products Core (BLC, CIG & CP) Business are very stable and consistent Q3 2006 Q4 2006 Q2 2007 Q2 2006 Q1 2007 with expectations 62.5% 63.3% 65.8% 62.2% 63.8% Increase from Q2
Slide 23: Expenses CNO
Expenses CNO ($ millions) Gross Operating Expenses*, Trailing 4 Quarters Higher legal fees and Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 $578.3 $583.7 $599.2 $573.2 $575.4 settlement costs in Q1 and Q2 2007 Back-office consolidation on track to produce annual cost savings of $25 million beginning
Slide 24: High-Quality Assets CNO
High-Quality Assets CNO Actively Managed Fixed Maturities by Rating at 6/30/07 (Market Value) Excludes investments from a variable interest entity we are BB+ and below required to consolidate, although BBB- 6% 7% such assets are legally isolated AAA Only 6% of total portfolio is in below- 32% in
Slide 25: Sub-prime Home Equity ABS and Structured Credit
Sub-prime Home Equity ABS and Structured Credit CNO No downgraded securities No negative watch securities No ABS CDO investments No hedge fund investments No exposure to substandard servicers Nominal third-party CLO/structured credit exposure Highly developed cashflow and default analy
Slide 26: Sub-prime Home Equity ABS at June 30, 2007 (Vintage)
Sub-prime Home Equity ABS at June 30, 2007 CNO Exposure by Vintage Year (Market Value in mils.) 2003 Pre-2003 $20.3 $0.9 6.5% 0.3% 2007 $74.0 23.8% 2004 2006 $110.6 $6.7 35.6% 2.2% 2005 $98.3 31.6% Only 0.03% of total portfolio exposed to 2006 vintage 26
Slide 27: Sub-prime Home Equity ABS at June 30, 2007 (Rating)
Sub-prime Home Equity ABS at June 30, 2007 CNO Market Book % of % of Original Current Rating Value (mil.) Value (mil.) Subprime Portfolio Support Support AAA – Insured $8.3 $8.5 2.75% 0.03% 100.0% 100.0% AAA $30.7 $31.4 10.12% 0.13% 14.1% 33.5% AA $65.8 $67.4 21.67% 0.27% 10.7% 28.2% A $169.9 $173.1
Slide 28: Q2 2007 Summary Bankers
Q2 2007 Summary Bankers Sales of $76.8 million, 19% ahead of Q2 2006 • Growth driven by 30% improvement in life sales and private fee-for-service sales through our product partnership with Coventry Higher earnings (vs Q2 2006) driven by: • Improved spreads • Higher PDP/PFFS income, offset by inc
Slide 29: Q2 Earnings Bankers
Q2 Earnings Bankers ($ millions) Q2 2006 Q2 2007 Insurance policy income $384.6 $424.0 Net investment income 122.4 155.1 Fee revenue and other income 2.0 2.7 Total revenues 509.0 581.8 Insurance policy benefits 306.8 341.1 Amounts added to policyholder account balances 42.0 58.6 Amortization related
Slide 30: Segment Performance Bankers
Segment Performance Bankers ($ millions) Pre-Tax Operating Income* Higher earnings (vs Q1 2007) Q3 2006 Q4 2006 driven by: Q2 2006 $63.7 $68.4 $69.1 Q2 2007 $65.5 • Higher LTC margins due to favorable Q1 2007 persistency $42.8 • Higher PDP/PFFS income • Q1 2007 included higher Med supp and LTC amo
Slide 31: Benefit Ratio – Medicare Supplement Bankers
Benefit Ratio* – Medicare Supplement Bankers Q2 2006 Q2 2007 Slight improvement in the Q3 2006 Q4 2006 Q1 2007 67.8% 67.4% 65.6% 65.3% 64.6% Med supp benefit ratio in Q2 2007 vs Q2 2006 Trailing 4 Quarter Avg.: 69.4% 67.9% 66.6% 65.8% 65.7% *We calculate benefit ratios by dividing insurance policy
Slide 32: Benefit Ratio – PDP and PFFS Business Bankers
Benefit Ratio* – PDP and PFFS Business Bankers Q1 2007 Higher ratio in Q2 2007 (vs Q2 Q3 2006 93.3% Q2 2007 Q2 2006 2006) 77.6% 82.1% 80.9% Significant amount of seasonality Q4 2006 42.5% *We calculate benefit ratios by dividing insurance policy benefits by insurance policy income. 32
Slide 33: Interest-Adjusted Benefit Ratio – Long Term Care Bankers
Interest-Adjusted Benefit Ratio* – Long Term Care Bankers Q4 2006 Q1 2007 Q3 2006 76.9% 73.8% Q2 2006 Q2 2007 consistent with Q2 68.8% Q2 2007 66.8% 66.0% 2006 Favorable persistency resulted in an improved benefit ratio vs Q1 2007 Trailing 4 Quarter Avg.: 66.4% 67.4% 69.9% 71.6% 71.4% Qtrly. non
Slide 34: Q2 2007 Summary CIG
Q2 2007 Summary CIG Earnings • The decrease in earnings is primarily driven by an increase in death claims and amortization expense on interest-sensitive life products and the continued decline in the Medicare supplement book, offset by improved specified disease results • Sales down 18% from Q2 2
Slide 35: Q2 Earnings CIG
Q2 Earnings CIG ($ millions) Q2 2006 Q2 2007 Insurance policy income $247.4 $236.3 Net investment income 161.3 202.5 Fee revenue and other income (0.1) 0.1 Total revenues 408.6 438.9 Insurance policy benefits 180.2 188.4 Amounts added to policyholder account balances 58.3 87.0 Amortization related t
Slide 36: Segment Performance CIG
Segment Performance CIG ($ millions) Pre-Tax Operating Income* Decrease from Q2 2006 primarily due to: Q2 2006 • $6 million reduction in Med supp earnings due $64.7 Q3 2006 Q1 2007 $58.5 $58.0 to higher benefit ratio and smaller inforce Q2 2007 block $43.8 • $21 million reduction in universal life
Slide 37: Benefit Ratio – Medicare Supplement CIG
Benefit Ratio* – Medicare Supplement CIG Q3 2006 Q4 2006 Q1 2007 Q2 2007 Benefit ratio in Q2 2006 Q2 2006 66.8% 64.1% 66.9% 68.9% benefited from release of 56.9% policy benefit reserves related to increase in policyholder lapses Trailing 4 Quarter Avg.: 59.3% 60.6% 61.9% 63.6% 66.6% *We calculate
Slide 38: Interest-Adjusted Benefit Ratio – Specified Disease CIG
Interest-Adjusted Benefit Ratio* – Specified Disease CIG Q4 2006 reflects correction of valuation errors; without this Q2 2006 Q4 2006 52.5% adjustment, the ratio would 48.2% Q3 2006 Q2 2007 have been 37.7% 41.2% 39.7% Q1 2007 reflects release of Q1 2007 return of premium reserve; 20.4% without
Slide 39: Q2 Earnings Colonial Penn
Q2 Earnings Colonial Penn ($ millions) Q2 2006 Q2 2007 Insurance policy income $25.6 $29.4 Net investment income 9.1 9.4 Fee revenue and other income 0.2 0.1 Total revenues 34.9 38.9 Insurance policy benefits 20.7 23.9 Amounts added to policyholder account balances 0.3 0.3 Amortization related to op
Slide 40: Segment Performance Colonial Penn
Segment Performance Colonial Penn Pre-Tax Operating Income* ($ millions) Q2 2007 Q2 2006 $6.7 $6.5 Q2 2007 sales up 23%, driven by: Q4 2006 • Increased advertising Q3 2006 $5.4 Q1 2007 $4.6 $4.6 • Strong media-based lead activity • Strong and improving direct-mail- based lead programs • Growth in
Slide 41: CNO Summary
CNO Summary Runoff LTC block • Significant steps to reduce claims reserve volatility • Continued progress in business turnaround Core businesses • Sharper focus on driving profitable growth and delivering value Overall: On target to achieve $100 million improvement in pretax earnings run-rate
Slide 42: Questions and Answers
S CONSECO. Questions and Answers 42
Slide 43: Appendix
S CONSECO. Appendix 43
Slide 44: Premiums – Medicare Supplement Bankers
Premiums – Medicare Supplement Bankers Medicare Supplement – First-Year Premiums (in millions) Q4 2006 Q2 2006 Q3 2006 $25.3 $24.5 $23.2 Q1 2007 As expected, decline in $22.2 Q2 2007 $20.0 sales continued in Q2 2007, due to competition from PFFS plans Med. Supp. First-Year Prems.-Tr. 4 Qtrs: $88.1
Slide 45: Premiums – PDP/PFFS Bankers
Premiums – PDP/PFFS Bankers PDP/PFFS – First-Year Premiums (in millions) Q2 2006 Strong sales driven by PFFS $32.1 Q2 2007 Continued strong PFFS NAP $25.9 Q3 2006 enabled by the continued $20.8 Q4 2006 limited open enrollment period $17.8 Q1 2007 $16.0 PFFS VNB 2x Med supp $32.1 $23.8 PFFS L
Slide 46: Premiums – Long-Term Care Bankers
Premiums – Long-Term Care Bankers Long-Term Care – First-Year Premiums ($ millions) First-year premiums and NAP Q2 2006 improved in Q2 2007 $13.1 Q3 2006 $12.0 Q4 2006 $11.9 Q1 2007 Q2 2007 $12.2 $11.6 New sales are meeting our return objectives First-Year Prems.-Tr. 4 Qtrs: $58.5 $54.6 $51.2 $4
Slide 47: Premiums – Life Insurance Bankers
Premiums – Life Insurance Bankers Life – First-Year Premiums ($ millions) Q2 2007 Q3 2006 Q2 2006 $25.3 Growth driven by: $24.4 $23.3 Q4 2006 Q1 2007 $21.9 $21.4 • Continued focus on cross- selling into new PFFS customer base • Broader availability of SPWL LTC rider • Q2 2007 NAP up over 30% vs Q2
Slide 48: Premiums – Annuity Bankers
Premiums – Annuity Bankers Annuity – First-Year Premiums ($ millions) Q3 2006 $277.3 Decline in annuity sales Q4 2006 Q2 2006 $247.5 $237.3 Q1 2007 relates to changes in interest $211.4 Q2 2007 $199.6 rate environment increasing the attractiveness of other products vs annuities First-Year Prems.-T
Slide 49: Premiums – Medicare Supplement CIG
Premiums - Medicare Supplement CIG Medicare Supplement – First-Year Premiums ($ millions) Q2 2006 Q4 2006 $7.9 $7.9 Decline in sales was expected Q3 2006 Q1 2007 Rollout of new product in the $6.5 $6.6 Q2 2007 Amerilife system in September $5.2 2007 Signed LOI with national company to distribu
Slide 50: Premiums – Specified Disease CIG
Premiums – Specified Disease CIG Specified Disease – First-Year Premiums ($ millions) Q2 2007 Q1 2007 $7.7 31% increase in NAP vs Q2 2006 Q2 2006 $7.0 Q3 2006 $6.8 Q4 2006 $7.1 $7.3 Sales continue to gain momentum from refocus of PMA Increased non-PMA recruiting of new IMOs and agents Expand
Slide 51: Premiums – Annuity CIG
Premiums – Annuity CIG ($ millions) Annuity – First-Year Premiums Q3 2006 24% increase in first-year $178.8 premiums vs Q2 2006 Q4 2006 Q1 2007 Significant contributions $118.1 $116.3 Q2 2007 $108.3 Q2 2006 from Legacy and ADS, our $87.0 national partners TSA business is significantly ahead of
Slide 52: Premiums – Life Insurance Colonial Penn
Premiums – Life Insurance Colonial Penn Life – First-Year Premiums ($ millions) Q2 2007 Q1 2007 $7.0 $6.7 Growth driven by: Q2 2006 Q3 2006 $5.8 Q4 2006 $5.9 $5.7 • Increased advertising • Increased lead generation • Growth in direct mail programs First-Year Prems.-Tr. 4 Qtrs: $21.2 $22.0 $22.9 $2
Slide 53: Book Value Per Diluted Share CNO
Book Value Per Diluted Share* CNO Reduction in Q2 2007 reflects Q2 2006 $25.84 Q3 2006 $25.81 Q4 2006 $25.64 Q1 2007 $25.24 Q2 2007 $24.90 the loss for the quarter *Book value excludes accumulated other comprehensive income (loss). Shares outstanding assumes: (1) conversion of convertible securiti
Slide 54: Debt and Preferred Stock to Total Capital Ratio
Debt and Preferred Stock to Total Capital Ratio* CNO Decrease in Q2 2007 reflects Q4 2006 Q1 2007 Q2 2006 Q3 2006 28.8% 28.9% the conversion of preferred 26.6% 26.4% stock into common shares, Q2 2007 20.3% partially offset by the Preferred Stock additional $200 million borrowed in June 2007 20.3%
Slide 55: Consolidated RBC Ratio
Consolidated RBC Ratio* CNO Q4 2006 Q1 2007 Q2 2006 Q3 2006 357% Q2 2007 344% Continued strong capital 331% 324% 330% levels at insurance companies *Risk-Based Capital (“RBC”) requirements provide a tool for insurance regulators to determine the levels of statutory capital and surplus an insurer m
Slide 56: Net Investment Income CNO
Net Investment Income CNO ($ millions) General Account Investment Income, Excluding Corporate Segment Yield remained constant from Q1 2007 Q2 2007 Q2 2006 Q3 2006 Q4 2006 $381.5 Q1 2007, despite reduction in $356.5 $359.5 $364.3 $376.8 prepayment income Yield up 12 bps from Q2 2006 Net investmen
Slide 57: 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
Slide 58: 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 the net operating income, excluding Q2 2006 charge related to proposed litigation settlement and refinements to such estimates recognized in subsequent periods (and related per sha
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, per diluted share This non-GAAP financial measure differs from book value per diluted share because accumulated other comprehensive income has been excluded from the book value us
Slide 60: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation from book value per diluted share to book value per diluted share, excluding accumulated other comprehensive income (loss) is as follows (dollars in millions, except per share amounts): Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Total sh
Slide 61: 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 net realized gains or losses (“net operating income”, a non-GAAP financial measure) is important to evaluate the performance of the Company and is a key measure
Slide 62: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation of return on common equity to operating return (less Q2 2006 charge related to the proposed litigation settlement and refinements to such estimates recognized in subsequent periods) on common equity (excluding accumulated ot
Slide 63: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures (continued from previous page) Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Average common shareholders' equity 3,622.2 3,836.9 4,045.1 4,050.8 4,215.8 Average common shareholder's equity, excluding accumulated other comprehensive income (loss) (a non-GAAP
Slide 64: 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 income (loss) and consolidated net income (loss) for the six months ended June 30, 2007, is as follows (dollars in millions): Other Business CI
Slide 65: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation of common shareholders’ equity, excluding accumulated other comprehensive income (loss), the Q2 2006 charge related to the proposed litigation settlement and refinements to such estimates recognized in subsequent periods, an
Slide 66: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation of average common shareholders’ equity, excluding accumulated other comprehensive income (loss), the Q2 2006 charge related to the proposed litigation settlement and refinements to such estimates recognized in subsequent per
Slide 67: 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 has been excluded from the value of capital
Slide 68: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures Reconciliations of the: (i) debt to capital ratio to debt to capital, excluding accumulated other comprehensive loss; and (ii) debt and preferred stock to capital ratio to debt and preferred stock to capital, excluding accumulated other comp