Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Barclays High Yield Bond and Syndicated Loan Conference 2012
21 slides from Cno Financial's conference presentation, Mar 22, 2012
Slide 1: Barclays High Yield Bond and Syndicated Loan Conference
Barclays High Yield Bond and Syndicated Loan Conference March 26, 2012 Exhibit 99.1
Slide 2: CNO Financial Group
E 3 CNO FINANCIAL GROUP CNO Financial Group
Slide 3: Forward-Looking Statements
CNO Financial Group 3 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
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 these 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 market Track record of strong execution Building core value drivers Well capitalized and generating significant excess capital Strong risk management
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: Few competitors in our target space
CNO Financial Group 7 Few competitors in our target space 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
Slide 8: CNO – Track Record of Strong Execution
CNO Financial Group 8 CNO – Track Record of Strong Execution Q4 2008 Separation of Closed Block LTC business Q4 2006 VNB introduced 2007/2008 CIG sales & marketing rightsizing - $6 million annual expense reduction 2008 Excess Chicago space vacated - $5 million annual expense save Q4 2007 Recapture o
Slide 9: Growth in the CNO Franchise
CNO Financial Group 9 $11,478.0 $12,106.9 $12,765.2 $2,894.9 $2,676.8 $2,637.6 $698.0 $704.0 $693.6 Growth in the CNO Franchise ($ millions) $16,106.8 Average liabilities on core business segments are increasing, while OCB is shrinking $15,066.5 $15,481.7 $5,799.2 $5,511.5 $5,286.1 2009 2010 2011
Slide 10: Pre/After Tax GAAP Operating Income
CNO Financial Group 10 Pre/After Tax GAAP Operating Income CNO ($ millions) $164.6 $181.9 $216.0 $87.7 $99.7 $127.1 $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 2009 2010 2011 Net Operating Income Tax Expense on Operating Income $252.3 $343.1 $281.6
Slide 11: Statutory Earnings Power and Cash Generation
CNO Financial Group 11 $128.2 $137.7 $209.0 $180.5 $154.1 $128.2 $137.7 $209.0 $81.0 $81.0 $346.7 $209.2 Statutory Earnings Power Inflows to Holding Co Statutory Earnings Power Inflows to Holding Co Fees and Interest to Holding Company Net Dividends to Holding Company Net Gain From Operations Retain
Slide 12: Corporate Liquidity Trend
CNO Financial Group 12 $209.2 $346.7 $145.5$139.1 2010 2011 Corporate Liquidity Trend Recurring Sources and Uses Including Dividends and Scheduled Debt Payments ($ in millions) Recurring Sources Net Dividends Recurring Uses** Scheduled Debt Payments Made*** $128.2 $114.1 $137.7 $90.5 $209.0 * Amount
Slide 13: Excess Capital
CNO Financial Group 13 4Q11 358% 3Q11 359% 2Q11 351% 1Q11 341% 4Q10 332% 4Q10 $161.1 1Q11 $169.0 2Q11 $234.0 3Q11 $168.9 4Q11 $202.8 Excess Capital Consolidated RBC Ratio Liquidity ($ millions) Approximately $37 million in excess of management target $102.8 million in excess of management target 350
Slide 14: Excess Capital Utilization Opportunities
CNO Financial Group 14 Excess Capital Utilization Opportunities Share Buybacks Debt Prepayments Investing in Business for Additional Growth – Growth and expansion of distribution channels – Recapture reinsurance blocks Common Stock Dividend
Slide 15: LTC and STC Sales Mix
CNO Financial Group 15 LTC (LTC and HHC) and STC Sales Mix 19% 29% 33% 36% 41% 48% 81% 71% 67% 64% 59% 52% 2006 2007 2008 2009 2010 2011 STC (Short Term Care) LTC (Long Term Care and Home Health Care) Long Term Care Bankers business model utilizing exclusive distribution, and a focus on middle inc
Slide 16: CNO Value Proposition
CNO Financial Group 16 CNO Value Proposition Competitive Advantage Exclusive, growing distribution Target market focus, with growth as Baby Boomers turn 65 Sustainable with barriers to entry Products Diversified product suite focused on protection needs Actively managed inforce block Foc
Slide 17: Questions and Answers
Ei CNO FINANCIAL GROUP Questions and Answers
Slide 18: Appendix
Ei CNO FINANCIAL GROUP Appendix
Slide 19: Additional information on non-GAAP measures
CNO Financial Group 19 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 20: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group 20 Information Related to Certain Non-GAAP Financial Measures A reconciliation of earnings before net realized investment gains (losses), fair value changes in embedded derivatives, corporate interest, loss on extinguishment of debt and taxes (“EBIT”) to net income is as follows
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 the debt to capital ratio to debt to capital, as defined in our Senior Secured Agreement is as follows (dollars in millions) Debt to capital ratio, excluding accumulated other comprehensive income (
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