Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Investor Day (June 2014)
83 slides from Cno Financial's investor day presentation, Jun 26, 2014
Slide 1: 2014 CNO Investor Day
2014 CNO Investor Day June 26, 2014 Exhibit 99.1
Slide 2: Agenda
2 Agenda Time Topic Speaker 12:15 Introductions Erik Helding – SVP, Treasury & Investor Relations 12:20 CNO Video 12:25 Strategy – Opportunities in the Middle Market Ed Bonach – CEO 12:45 Investments in Business Growth & Infrastructure Scott Perry – Chief Business Officer Bruce Baude – Chief Operati
Slide 3: Forward-Looking Statements
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 investors that these
Slide 4: Non-GAAP Measures
4 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; operating return measures; earnings before the earnings of CLIC being sold, loss on reinsurance
Slide 5: CNO Financial Group
EJ CNO FINANCIAL GROUP GROWEDELIVER -
Slide 6: Strategy: Opportunities in the Middle Market
6 Strategy: Opportunities in the Middle Market Ed Bonach - CEO
Slide 7: Ed Bonach – Chief Executive Officer
7 Ed Bonach – Chief Executive Officer Ed Bonach (60) was appointed chief executive officer and a director of CNO Financial Group effective October 1, 2011. Ed formerly served as executive vice president and chief financial officer of CNO from May 2007 through September 2011. His areas of responsibil
Slide 8: The Opportunity: CNO – Invested in Middle-Income America
8 65mm Households in the Middle-Income Market The Opportunity CNO – Invested in Middle-Income America ~30% Uninsured* Large Middle market consumers comprise approximately 53% of the U.S. population – US Census Data and LIMRA 2014 Underserved & Unprepared Half those near and in retirement receive no
Slide 9: How to Succeed in the Middle-Market
9 How to Succeed in the Middle-Market Strategic alignment required to succeed in the middle market Distribution Products & Advice Operations & Administration 72% of middle-market consumers want to speak with professionals about at least one financial product or service - LIMRA Retirement healthcare
Slide 10: Track Record of Execution
10 Track Record of Execution Above industry sales growth rates OCB transactions reduce exposure to higher risk business Maintaining investment grade ratios while returning nearly $940mm in buybacks and dividends Reached targeted dividend payout ratio of 20% Achieved ROE run-rate of 9% Growth Versus
Slide 11: Capital Allocation Priorities
11 Capital Allocation Priorities Maintain capital ratios that advance ratings and defend our franchise Investing in the business model driving growth and efficiencies Continue securities repurchase when compelling compared to other alternatives Common stock dividends in line with earnings Discipline
Slide 12: Building on Momentum to Grow and Deliver
12 CNO positioned as a strong growth and stable company allowing us to focus on GROWING the Business and DELIVERING value to Shareholders Build on investment in the business Focus on sustainable profitable growth Accelerate operating effectiveness Tactically deploy excess capital Enhance the custome
Slide 13: Investments in Business Growth & Infrastructure
13 Investments in Business Growth & Infrastructure Scott Perry – Chief Business Officer Bruce Baude – Chief Operations and Technology Officer Scott Goldberg – President, Bankers Life Gerardo Monroy – President, Colonial Penn Barb Stewart – President, Washington National
Slide 14: Scott Perry – Chief Business Officer
14 Scott Perry – Chief Business Officer Scott Perry (51) is chief business officer of CNO Financial Group, Inc. Perry joined CNO's subsidiary Bankers Life and Casualty Company as a field vice president and went on to hold the titles of senior vice president of distribution, chief operating officer a
Slide 15: Bruce Baude – Chief Operations and Technology Officer
15 Bruce Baude – Chief Operations and Technology Officer Bruce Baude (49) was appointed EVP, Chief Operations and Technology Officer on July 23, 2012. In this role he provides strategic leadership over both CNO’s Operations and IT functions. Baude was previously chief operating officer at Univita He
Slide 16: Scott Goldberg – President, Bankers Life
16 Scott Goldberg – President, Bankers Life Scott Goldberg (43) is President of Bankers Life and Casualty Company. Goldberg began his career with CNO in 2004 as vice president of strategic planning. In 2007, he joined Bankers as vice president of strategy and marketing. In 2011, he was named vice pr
Slide 17: Barb Stewart – President, Washington National
17 Barb Stewart – President, Washington National Barb Stewart (56) was named president of Washington National in March 2013. She joined the company in 2006 as vice president of strategy and business, responsible for strategic planning and business development, marketing, products, agent recruiting a
Slide 18: Gerardo Monroy – President, Colonial Penn
18 Gerardo Monroy – President, Colonial Penn Gerardo Monroy (47) was named president of CNO’s Colonial Penn business segment in August 2012, after serving as the vice president of long-term care for CNO’s Bankers Life business segment since 2008. Monroy began his career with CNO in 2001 as a vice pr
Slide 19: Investments in Growth and Infrastructure
19 $1,000 $1,500 $2,000 $2,500 $3,000 $200 $300 $400 $500 $600 2011 2012 2013 2016F NAP Collected Premium* Investments in Growth and Infrastructure 2014 Investment Breakdown Sales and Collected Premium Growth Back Office Efficiencies and Capabilities Agent Growth and Expansion Customer Experience an
Slide 20: Bankers Life Investments
20 Bankers Life Investments The Opportunity Agent mobile tools and CRM New commissions systems; upgrading branch infrastructure Location expansion Financial planning Distribution Products & Advice Operations & Administration Key Initiatives Large, growing, underserved market ‒ Concerned about future
Slide 21: Bankers Life Outlook
21 Bankers Life Outlook Key Drivers and Expected Results * Calculated as Bankers Life NAP divided by average agent force 2014 Outlook 2014 Outlook Revised 2014-2016 Outlook Growth in agent productivity* 2% - 5% 3% - 6% 3% - 6% Growth in average agent force 2% - 4% Flat 1% - 3% Net new locations 15 1
Slide 22: Washington National Investments
22 Washington National Investments The Opportunity Supplemental health -- increasing need; largely untapped market Expanding the worksite model to offer a private exchange, and participate in others Increase size and geographic coverage of owned agency (PMA) “One Source” technology platform Group pr
Slide 23: Washington National Outlook
23 Washington National Outlook 2014 Outlook (unchanged) 2014-2016 Outlook Growth in PMA agency force 8% -10% 8% - 10% Growth in sales* 7% - 9% 7% - 10% Growth in Worksite sales 7% - 9% 7% - 12% Growth in collected premium* 5% - 7% 5% - 7% * Sales and collected premium for supplemental health Key Dri
Slide 24: Colonial Penn Investments
24 Colonial Penn Investments The Opportunity The Challenge Increased direct competition TV advertising cyclicality Growing direct market Evolving consumer preferences New term & whole life growth (Patriot Program) Web/digital strategy Sales generation diversification Telesales productivity Key Initi
Slide 25: Colonial Penn Outlook
25 Colonial Penn Outlook 2014 Outlook 2014 Outlook Revised 2014-2016 Outlook Marketing Cost to NAP 1.05 – 1.10 1.05 – 1.10 1.00 – 1.10 Inforce EBIT $45 - $50mm $45 - $50mm $45 - $55mm Growth in sales 6% - 9% 5% - 7% 5% - 10% Growth in collected premium 7% - 9% 7% - 9% 7% - 9% Driving Economic Value
Slide 26: Technology and Operations – Identifying the Gap
26 Technology and Operations – Identifying the Gap The Current Challenge How to Effectively Serve the Middle-Income Market Highly efficient back office – Smaller dollar policies – Price sensitivity Streamlined and scalable administration systems Service culture focused on consistency, accuracy, simp
Slide 27: Technology and Operations – Closing the Gap
27 Technology and Operations – Closing the Gap Meaningful momentum has been established through fairly modest, run-rate investment to date – Per policy call volumes down over 10% since 2Q12, reflecting better customer experience and resulting in lower costs. – Productivity management system deployed
Slide 28: Investing in Alignment - The Office of the Future
28 Investing in Alignment - The “Office of the Future” Marketing & Prospecting Agent Management Meetings & Presentations Illustrations & Applications Underwriting Customer Service Printed Lists, Manual Dialing, Direct-Mail Dependent, Post- Mortem Analysis Monday Staff Meetings, Whiteboards, Email Up
Slide 29: Business Investments
29 Business Investments Investments expected to yield annual sales growth of 8% - 10% by the end of 2016
Slide 30: Q&A
Q&A GROWEDELIVER ~
Slide 31: Investments: Search for Risk-Adjusted Yields
31 Investments: Search for Risk-Adjusted Yields Eric Johnson – Chief Investment Officer and President 40|86
Slide 32: Eric Johnson – Chief Investment Officer and President, 40|86 Advisors
32 Eric Johnson – Chief Investment Officer and President, 40|86 Advisors Eric Johnson (53) has been the President of 40|86 Advisors (CNO’s registered investment adviser subsidiary) for 9 years. He has more than 20 years of financial markets and investment experience, beginning with a predecessor ban
Slide 33: Investment Strategy Tied to Enterprise Needs
33 Investment Strategy Tied to Enterprise Needs Internal core competencies for mainstream asset classes, supplemented with third party talent for more specialized allocations Active strategic asset allocation process Post crisis allocation shifts have focused on income and book yield but not excludi
Slide 34: Actively Balanced Portfolio
34 (March, 31, 2014 GAAP Book Value, $ millions) *Other includes policy loans and schedule BA Actively Balanced Portfolio Average Rating: BBB+ Diversified by risk factors Substantial liquidity Allocation changes related to relative value Equities $185 0.7% Municipals $2,168 8.7% IG Corporates $13,49
Slide 35: Maintaining Stable Key Portfolio Risk Metrics
35 Maintaining Stable Key Portfolio Risk Metrics NAIC 2009 2010 2011 2012 2013 1 52.79% 51.08% 48.75% 46.86% 46.73% 2 40.58% 42.46% 45.84% 47.67% 46.96% 3 4.48% 4.77% 4.03% 3.93% 4.81% 4-6 2.15% 1.68% 1.38% 1.55% 1.50% 100.00% 100.00% 100.00% 100.00% 100.00% IG (1&2) 93.37% 93.55% 94.59% 94.53% 93.6
Slide 36: Strong Credit Performance with Low Impairment Trend
36 Strong Credit Performance with Low Impairment Trend ($ millions) Impairments % of Invested Assets 0.81% 0.97% 0.66% 0.14% 0.14% 0.04% $162.3 $195.4 $149.8 $34.6 $37.8 $11.6 2008 2009 2010 2011 2012 2013
Slide 37: Consistently Improving Pattern of Gains and Losses
37 Consistently Improving Pattern of Gains and Losses ($ millions) $110.3 $383.1 $352.1 $189.6 $138.9 $64.8 ($372.7) ($443.6) ($321.9) ($127.8) ($57.8) ($31.4) 2008 2009 2010 2011 2012 2013 Gross Realized Gains Gross Realized Losses and Impairments
Slide 38: Successfully Maintained Portfolio Yield Despite Low Market Rates
38 Successfully Maintained Portfolio Yield Despite Low Market Rates Actions to maintain portfolio yield consistent with boundaries for risk 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 GAAP New Money Rate Portfolio Earned Yield 10 Year UST
Slide 39: Our View of the Landscape
39 Our capital position allows flexibility in risk taking We have a portfolio with solid credit performance We have stable investable cash flows Broad credit/fixed income toolkit No significant known legacy issues in portfolio Persistent low rates Supply/demand dynamic in various credit markets Decl
Slide 40: Tactical Views
40 Tactical Views AAA CLO’s – U.S. recovery continues to improve credit quality and policy still is stimulative. Regulatory issues have created incremental spread which far exceeds underlying loss content. CRE Loans, recent vintage CMBS – Constructive outlook supported by capital flows, strengthenin
Slide 41: Modest Layering Into Alternatives
41 Modest Layering Into Alternatives % Invested Assets 0.09% 0.20% 0.40% 0.72% 0.86% ($ millions) Hedge fund and private equity exposures diversified by market factors Diversified pro-cyclical strategic (vs. tactical) exposure to equity markets At 0.86% of invested assets, well within industry norms
Slide 42: Balanced Holding Company Investment Strategy
42 Balanced Holding Company Investment Strategy • $65mm invested in core and core plus strategies • 2013 Investment Income: $1.8mm • 2013 Return: 0.17% Core Plus $65 21% Alternatives $53 17% Corporate Liquidity $85 28% Equity $103 34% • $85mm invested in cash equivalents • 2013 Investment Income: $0
Slide 43: Solid ALM Discipline is Part of our Investing Process
43 Solid ALM Discipline is Part of our Investing Process Y ie ld Ye ars 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 New Mone
Slide 44: Key Takeaways on Investments
44 Key Takeaways on Investments We have a clear and transparent approach We are maintaining our portfolio yield Credit performance has been strong Stringent asset liability standards
Slide 45: Q&A
Q&A GROWEDELIVER «
Slide 46: Managing Our Long-Term Care Business
46 Managing Our Long-Term Care Business Chris Nickele – EVP, Product Management Tim Bischof – SVP, Corporate Actuary & ERM Loretta Jacobs – VP, LTC
Slide 47: Chris Nickele – EVP, Product Management
47 Chris Nickele – EVP, Product Management Chris Nickele (57) joined CNO in October 2005 as executive vice president, product management, and was named additionally to head a new business segment - Other CNO Business - in April 2010. Nickele is responsible for the development, pricing and management
Slide 48: Tim Bischof – SVP, Corporate Actuary & ERM
48 Tim Bischof – SVP, Corporate Actuary & ERM Tim Bischof (42) was named Senior Vice President, Corporate Actuary & Enterprise Risk Management for CNO Financial Group, Inc., on January 7, 2013. Bischof joined CNO in 2001, and has steadily progressed through a wide variety of actuarial and finance ro
Slide 49: Loretta Jacobs – VP, LTC
49 Loretta Jacobs – VP, LTC Loretta Jacobs (49) joined Bankers Life in May 2013 as Vice-President of the company’s Long Term Care (LTC) business. In this role, she directly oversees the LTC claims and policyholder service departments and partners with product and valuation actuaries. Jacobs joined B
Slide 50: Panel Session - LTC Working Group
50 Panel Session - LTC Working Group LTC Working Group Product Management & Pricing Enterprise Risk Management Operational Management Actuarial Valuation Improving the Health of LTC Focused Expertise Product Management & Pricing Tactical rate actions Pro-active product mix shift Operational Manageme
Slide 51: LTC – Action Oriented Risk Management
51 LTC – Action Oriented Risk Management 2006 2014 LTC Business Unit Developed 1st Through 3rd Rounds of Rate Actions Divestiture of SHIP to Independent Trust Quota Share Reinsurance with RGA 4th Round of Rate Actions Formalized LTC Working Group Divestiture of OCB LTC Block to Beechwood Re 2008 201
Slide 52: Driving Toward Improved Risk Profile
52 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 In fo rc e YE 19 98 In fo rc e YE 20 13 STC HHC LTC Driving Toward Improved Risk Profile …But current mix has a better risk profile Material shift to STC Shorter b
Slide 53: Improving LTC Claims Trends
53 Improving LTC Claims Trends Focus on claims lifecycle to improve LTC performance… Upon Claim Initiation During the Claim Both targeted and broad based Longitudinal study required to prove savings Examples: ‒ Health screenings ‒ Fall prevention ‒ Diet, exercise and fitness education Expanded claim
Slide 54: LTC - Financial Analysis & Sensitivity Testing
54 LTC - Financial Analysis & Sensitivity Testing GAAP Statutory Risk Key Variable Sensitivity Test* LRT Margin Impact Asset Adequacy Impact Lapse Rate +/- 10% +/- $55mm +/- $40mm Morbidity +/- 1% -/+ $60mm -/+ $45mm Mortality +/- 1% +/- $25mm N/A Asset Adequacy Testing and Premium Deficiency Adequa
Slide 55: LTC – Low-For-Long Rate Stress Tests
55 Mild : NMR held flat for 5 years then recovering over 4 additional years Moderate: NMR reduced 50 bps in all years, recovering to a lower ultimate Severe: NMR reduced 100 basis points and held flat indefinitely No mitigating management actions assumed LTC – “Low-For-Long” Rate Stress Tests Expand
Slide 56: LTC – Low-For-Long Rates Sensitivity Observations
56 LTC – “Low-For-Long” Rates Sensitivity Observations Reserve and capital impacts emerge under severe scenario as margins are exhausted Mild and Moderate Scenarios: ‒ No material impact for GAAP or Stat ‒ Additional accruals for earnings pattern in the tail for GAAP Severe Scenario: ‒ GAAP immediat
Slide 57: LTC - Important Takeaways
57 LTC - Important Takeaways Rate actions when supported by adverse experience Actively engaged with the reinsurance community Mix of new business drives a better risk profile in time Several initiatives to improve care and “bend the claims curve” Capital ratios dialed-in to withstand LTC stress sce
Slide 58: Q&A
Q&A GROWEDELIVER =
Slide 59: A Look Inside Our Financial Plan
59 A Look Inside Our Financial Plan “Building on the Momentum” Fred Crawford - CFO
Slide 60: Fred Crawford – Chief Financial Officer
60 Fred Crawford – Chief Financial Officer Fred Crawford (50) was named executive vice president and chief financial officer for CNO Financial Group, Inc., effective January 2012. Crawford formerly served as executive vice president and head of Corporate Development and Investments for Lincoln Finan
Slide 61: CNO's Financial Plan Foundation
61 CNO’s Financial Plan Foundation Strategic Planning & Investment Sales (NAP) & VNB plan Capital Planning Key Earnings Drivers Key Underpinnings Driving Growth & Maintaining Diversity ‒ Accelerating growth investments ‒ Active In-force management Disciplined Capital Management ‒ Lowering our cost o
Slide 62: Earnings Outlook – Plan Expectations
62 $0.79 $1.02 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 2012 2013 2016 Earnings Outlook – Plan Expectations Favorable health benefit ratios Stable annuity persistency & spreads Excess capital deployed for repurchase Strong capital & continued deleveraging Plan Drivers Plan Variables New mo
Slide 63: Capital Targets and Recapitalization
63 0% 5% 10% 15% 20% 25% 325% 350% 375% 400% 425% 2012 2013 1Q2014 2016F RBC Leverage Capital Targets and Recapitalization Key Capital & Liquidity Metrics Recapitalization Considerations “Not a matter of if we will recapitalize.... a matter of when and to what degree” Bond Dynamics Ratings Trajector
Slide 64: Ratings Activity Since 2012 – Clear Momentum
64 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Fitch S&P Moody's Ratings Activity Since 2012 – Clear Momentum BB BB+ BBB- BBB BB- B+ B Moody’s 8/29/12 Fitch 3/12/13 S&P 5/3/13 S&P 7/24/13 Moody’s 3/27/14 Fitch 2/3/12 Fitch 5/2/14 Debt Ratings 8 upgrades since the beginning of 2012 S&
Slide 65: 2014 Excess Capital & Deployment Plans
65 2014 Excess Capital & Deployment Plans 1Q 2014 2014 Outlook (Revised) RBC 427% ~ 415% Liquidity $306mm ~ $400mm* Leverage** 17.6% ~17% Investment-grade ratings dialed-in while maintaining our tactical approach to deployment … v Guidance increased to $350mm to $400mm range for full year 2014 Commo
Slide 66: Tax Assets & Economic Value
66 Tax Assets & Economic Value Observations Projected Utilization of Tax Assets 2013 was an active tax planning year and generated nearly $100 million of economic benefits Annual cash tax savings expected to be ~$50 million lower beginning in 2016 as life NOL’s are fully utilized Opportunity to incr
Slide 67: Risk Reduction & Operating Effectiveness
67 Life 52% Life 49% Annuity 8% Annuity 8% Supp Health 12% Supp Health 24% LTC 12% LTC 9% MS & Other 16% MS & Other 12% 06/30/07 03/31/14 Risk Reduction & Operating Effectiveness v Cost Structure Opportunity Reduced “beta” and increased focus Decline in policies requires careful management of expens
Slide 68: ROE Target & Catalysts Driving Valuation
68 7.0% 7.6% 8.8% 11.0% 2012 2013 2013 PF 2016F ROE Target & Catalysts Driving Valuation Valuation Catalysts Recapitalization “The Sequel” ‒ Leveraged recap adds 75 -100 bps ‒ Logical timing – bond call date Back-Office Transformation ‒ Planning stages with more to come ‒ Long-term contribution to R
Slide 69: Q&A
Q&A GROWEDELIVER ©
Slide 70: Closing Statements
70 Closing Statements Ed Bonach - CEO
Slide 71: Building on Momentum to Grow and Deliver
71 CNO positioned as a strong growth and stable company allowing us to focus on GROWING the Business and DELIVERING value to Shareholders Build on investment in the business Focus on sustainable profitable growth Accelerate operating effectiveness Tactically deploy excess capital Enhance the custome
Slide 72: Why CNO?
72 Significant opportunity in the middle market Well positioned to capitalize on the opportunity with our unique business model Investing in the business model to continue to drive above industry sales growth and improved efficiencies Catalysts driving future valuation are compelling Strong track re
Slide 73: Appendix
Appendix GROWEDELIVER ~
Slide 74: Significant Items Impact on 2012 Net Operating Income
74 The table below summarizes the financial impact of significant items on our 2012 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions). Net Operating Income: Bankers Life $ 300.9 $ (10.6) (1)
Slide 75: Significant Items Impact on 2013 Net Operating Income
75 The table below summarizes the financial impact of significant items on our 2013 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions). Net Operating Income: Bankers Life $ 310.5 $ (2.2) (1) $
Slide 76: Information Related to Certain Non-GAAP Financial Measures
76 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 included in the most
Slide 77: Reconciliation of Net Income to Net Operating Income
77 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): 2012 2013 Net income applicable to common stock 221.0$ 478.0$
Slide 78: Operating Earnings per Diluted Share Reconciliation
78 2012 2013 Operating income 206.9$ 248.4$ Add: interest expense on 7.0% Convertible Senior Debentures due 2016, net of income taxes 12.2 1.6 Total adjusted operating income 219.1$ 250.0$ Weighted average shares outstanding for basic earnings per share 233,685 221,628 Effect of dilutive securities
Slide 79: Operating Return Measures
79 Information Related to Certain Non-GAAP Financial Measures Operating return measures Management believes that an analysis of net income applicable to common stock before the earnings of CLIC being sold, loss on reinsurance transaction, net realized gains or losses, fair value changes due to fluct
Slide 80: Operating Return on Equity Calculations
80 Information Related to Certain Non-GAAP Financial Measures The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) operating return, excluding significant items, on equit
Slide 81: Consolidated Capital Reconciliation
81 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): 4Q1
Slide 82: Pro Forma Operating Return on Equity
82 Year ended December 31, 2013 Operating income, excluding significant items 236.0$ Operating results of the traditional life block to be recaptured 4.9 Increase in net investment income to reflect the assumed higher invested assets resulting from the proceeds of the sale of CLIC, net of the recapt
Slide 83: Debt to Capital Ratio Reconciliation
83 Information Related to Certain Non-GAAP Financial Measures 1Q14 Corporate notes payable 844.1$ Total shareholders' equity 4,710.2 Total capital 5,554.3$ Corporate debt to capital 15.2% Corporate notes payable 844.1$ Total shareholders' equity 4,710.2 Less accumulated other comprehensive income (7