Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Citi 2013 US Financial Services Conference
25 slides from Cno Financial's conference presentation, Mar 6, 2013
Slide 1: Citi 2013 US Financial Services Conference
Citi 2013 US Financial Services Conference March 6, 2013 Exhibit 99.1
Slide 2: Services Conference | March 6, 2013
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 2
Slide 3: Forward-Looking Statements
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 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 abou
Slide 4: Non-GAAP Measures
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 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 c
Slide 5: CNO Fundamentals
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 5 Well positioned in the growing and underserved senior and middle income market Track record of strong execution Building core value drivers Strong risk management Well capitalized and generating significant exces
Slide 6: What Differentiates CNO?
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 6 What Differentiates CNO? Focus on serving the needs of our middle-income target market, a market that is fast growing and underserved Exclusive distribution ‒ Consistent with market focus ‒ We have “pricing” influen
Slide 7: Track Record of Execution
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 7 88% 16% 26% CNO Peer Group S&P Insurance Track Record of Execution Total Return Since YE2009* *As of market close on 12/31/12 Reset Business Mix Financial Foundation Return Value To Shareholders Invest in Growth Peers
Slide 8: Investment in the Business
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 8 Investment in the Business CNO Investing in productivity and growth of the agent force Expanding presence by adding new locations and geographies Developing and launching new products to meet the needs of our ta
Slide 9: Growth in the CNO Franchise
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 9 $12,106.9 $12,765.2 $13,329.2 $2,676.8 $2,637.6 $2,618.8 $698.0 $704.0 $714.8 BLC WN CP OCB ($ millions) $16,662.8 $15,481.7 $16,106.8 2010 2011 2012 $5,511.5 Growth in the CNO Franchise $5,286.1 $5,005.1 Investing
Slide 10: Segment Earnings Trend - Stable & Growing
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 10 ($ millions) * A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Segment Earnings Trend - Stable & Growing Headwinds Segment EBIT Excluding Significant Items* Favorable he
Slide 11: Product Level Risk Management
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 11 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
Slide 12: Capital Strategy
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 12 $175 $294 $347 $423 $146 $161 $203 $294 309% 332% 358% 367% 2009 2010 2011 2012 Capital to Holding Company from Insurance Subs Holding Company Liquidity RBC Debt to Cap xAOCI* 23.8% 21.9% 18.3% 20.7% ($ millions) Cap
Slide 13: 2012 Capital Generation – Free Cash Flow
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 13 2012 Capital Generation – Free Cash Flow Building ($ millions) 2013 Guidance: • $50-$75mm of capital retained to support growth • Statutory dividend range $250-$300mm • Securities* repurchase of $250-$300mm *Common s
Slide 14: CNO: Near Term Goals Lead to Long Term Value
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 14 Grow sales, distribution and product portfolio Increase operational effectiveness Build economic value by growing EPS and ROE Achieve BB/BB debt rating Continue balanced approach to capital deployment Inv
Slide 15: Q&A
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 15 Q&A
Slide 16: Appendix
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 16 Appendix
Slide 17: The right products and the right channels for today's middle-market consumer
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 17 • 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 • W
Slide 18: Loss Recognition & Cash Flow Testing
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 18 Loss Recognition & Cash Flow Testing 2012 Statutory Cash Flow Testing 2012 GAAP Loss Recognition Testing Aggregate testing margins remain strong Testing margin Increased in 2012 ↑ - ASU 2010-26 ↑ - Net Growth fro
Slide 19: "Low-For-Long" Rates – Reserve Sensitivity
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 19 • Moderate Stress: 4.75% NMR held flat for 5 years then recovering • Severe Stress: 50 basis point drop in NMR to 4.25% held flat indefinitely • 3Q assumption change: OCB interest sensitive life reserve charge - $28m
Slide 20: Information Related to Certain Non-GAAP Measures
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 20 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 tha
Slide 21: Non-GAAP Financial Measures: 2010 Net Operating Income
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 21 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our 2010 net operating income. Management believes that identifying the impact of the
Slide 22: Non-GAAP Financial Measures: 2011 Net Operating Income
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 22 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our 2011 net operating income. Management believes that identifying the impact of the
Slide 23: Non-GAAP Financial Measures: 2012 Net Operating Income
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 23 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our 2012 net operating income. Management believes that identifying the impact of the
Slide 24: Non-GAAP Financial Measures: EBIT
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 24 Information Related to Certain Non-GAAP Financial Measures Management believes that an analysis of earnings before net realized investment gains (losses), corporate interest, loss on extinguishment of debt, fair valu
Slide 25: Non-GAAP Financial Measures: Debt to Capital Ratio
CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 25 Information Related to Certain Non-GAAP Financial Measures 4Q09 4Q10 4Q11 4Q12 Corporate notes payable 1,037.4$ 998.5$ 857.9$ 1,004.2$ Total shareholders' equity 3,038.6 3,811.6 4,613.8 5,049.3 Total capital 4,076.0$
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