Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — 2012 FBR Fall Investor Conference
22 slides from Cno Financial's conference presentation, Nov 27, 2012
Slide 1: 2012 FBR Fall Investor Conference
2012 FBR Fall Investor Conference November 27, 2012 Exhibit 99.1
Slide 2: CNO Financial Group
Ec] CNO FINANCIAL GROUP
Slide 3: Forward-Looking Statements
CNO Financial Group 3 Forward-Looking Statements Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future results of operations and capital plans. We caution
Slide 4: Non-GAAP Measures
CNO Financial Group 4 Non-GAAP Measures This presentation contains financial measures that differ from the comparable measures under Generally Accepted Accounting Principles (GAAP). Reconciliations between those non-GAAP measures and the comparable GAAP measures are included in the Appendix. While m
Slide 5: CNO Fundamentals
CNO Financial Group 5 CNO Fundamentals Well positioned in the growing and underserved senior and middle income market Strong risk management Track record of strong execution Building core value drivers Well capitalized and generating significant excess capital
Slide 6: The right products and the right channels for today's middle-market consumer
CNO Financial Group 6 • Fixed and Fixed-Index Life and Annuity Products • Long-Term Care • Medicare Supplement • Whole and Universal life products • Final expense • Supplemental Health CNO can access consumers across multiple channels • With an Agent (Retail) • Bankers Career Force • Washington Nati
Slide 7: We have few competitors and a defensible position
CNO Financial Group 7 AEL AFL AIG Aviva USA DFG Gerber Life GAFRI GNW Guardian HIG ManuLife KCLI LNCMass Mutual MET Mut. Of Omaha NM NYL PFG PL PNX PLFE PRU WNIC SFG TMK UNM BLC CPL CNO PRI SYA Products C us to m er s More Affluent Less Affluent Protection Product Asset Accumulation Relative company
Slide 8: Diversified product mix focused on protection needs
CNO Financial Group 8 Product Level Risk Management Retirement Security Medicare Annuities Supplemental Health Long-Term Care Life Insurance Basic products that fit with exclusive distribution and meet the basic insurance needs of the middle market Attractive and more predictable return characte
Slide 9: CNO – Track Record of Strong Execution
CNO Financial Group 9 Q2 2012 Initiation of dividend program CNO – Track Record of Strong Execution Q4 2008 Separation of Closed Block LTC business 2007/2008 CIG sales & marketing rightsizing, and vacated excess Chicago space - $11 million annual expense reduction Q3 2007 Sale of $3 billion annuity
Slide 10: Growth in the CNO Franchise
CNO Financial Group 10 $12,106.9 $12,765.2 $13,222.5 $2,676.8 $2,637.6 $2,620.9 $704.0 $712.9 $698.0 Growth in the CNO Franchise ($ millions) $16,556.3 Average liabilities on core business segments are increasing, while Other CNO Business (“OCB”) is shrinking $15,481.7 $16,106.8 2010 2011 3Q12 $5,51
Slide 11: CNO's Earnings Engine
CNO Financial Group 11 $65.4 $80.6 $27.2 $33.9 $(18.5) $(2.6)$(1.3) $10.4 $15.8 $3.3 3Q11 3Q12 CP BLC WN OCB Corporate ($ millions) * A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. $125.6 $88.6 42% Segment EBIT - Excluding Significant Items* CNO’s Earnin
Slide 12: Recent Recapitalization
CNO Financial Group 12 Recent Recapitalization Recapitalization Summary New debt structure reflects strong performance and improved credit ratings Lower weighted average cost of capital Improved financial flexibility and debt maturity profile Significantly reduced convertible overhang Raised
Slide 13: Free Cash Flow Sources Building While Recurring Uses Moderating
CNO Financial Group 13 Free Cash Flow Sources Building While Recurring Uses Moderating ($ in millions) Fees and Interest to Holdco Net statutory dividends to Holdco Retained capital for growth and RBC build $358 ($52) ($15) Capital Upstreamed Interest Holdco Free Generated to Holdco Paid Expenses Ca
Slide 14: CNO: Value Proposition
CNO Financial Group 14 Opportunities Capital Management Run-Off Engineering Operational Efficiencies Rapidly Growing Target Market CNO: Value Proposition Stabilized Earnings & Capital Uniquely Positioned Business Model Reinvesting in Business Growth Generating Significant Excess Capital Mana
Slide 15: Q&A
CNO Financial Group 15 Q&A
Slide 16: Appendix
CNO Financial Group 16 Appendix
Slide 17: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group 17 The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are normally excluded or
Slide 18: 3Q12 Significant Items
CNO Financial Group 18 3Q12 Significant Items CNO ($ millions) The table below summarizes the financial impact of significant items on our 3Q12 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results during 3Q12. Net Op
Slide 19: 3Q11 Significant Items
CNO Financial Group 19 3Q11 Significant Items CNO ($ millions) The table below summarizes the financial impact of significant items on our 3Q11 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results during 3Q11. Net Op
Slide 20: Quarterly Earnings
CNO Financial Group 20 Quarterly Earnings CNO *Management believes that an analysis of earnings before net realized investment gains (losses), corporate interest, loss on extinguishment of debt, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabili
Slide 21: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group 21 Information Related to Certain Non-GAAP Financial Measures A reconciliation of net income (loss) applicable to common stock to net operating income (and related per-share amounts) is as follows (dollars in millions, except per-share amounts): 3Q11 3Q12 Net income (loss) applic
Slide 22: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group 22 Information Related to Certain Non-GAAP Financial Measures 3Q12 Corporate notes payable 1,035.1$ Total shareholders' equity 5,252.9 Total capital 6,288.0$ Corporate debt to capital 16.5% Corporate note payable 1,035.1$ Total shareholders' equity 5,252.9 Less accumulated other
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