CNO Financial Group, Inc. · NYSE:CNO
CNO Financial — Conseco — Q1 2009 Earnings Presentation
70 slides from CNO Financial's earnings presentation, May 11, 2009
Slide 1: First Quarter 2009 Financial and Operating Results
First Q Quarter 2009 Financial and Operating Results For the period ended March 31, 2009 Conseco, Inc. May y 11,, 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements C ti Cautionary St Statement t tRRegarding di Forward-Looking F d L ki Statements. St t t Our O statements, t t t trend t d analysesl and d other th information i f ti contained t i d in i th these materials relative to markets for Conseco’s products and trends in Conseco’
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
Slide 4: Q1 2009 Summary
Q1 2009 Summary CNO Continued profitability in all three insurance segments, with total Q1 2009 EBIT of $72.3 million Core sales* of $87.5 million, up 4% over Q1 2008 Trailing four-quarter premium up 12% over a year ago Strong growth in agent recruiting • Bankers • 22% YTD growth th in i new
Slide 5: Q1 2009 Summary
Q1 2009 Summary CNO Net realized investment losses of $6.9 million • Total other other-than-temporary than temporary impairment losses of $108 $108.1 1 million • $92.0 million recorded in earnings • $16.1 million recorded in accumulated other comprehensive p loss Accumulated other comprehensive
Slide 6: Collected Premiums
Collected Premiums CNO ($ millions) Collected Premiums-Trailing 4 Quarters Strong, Strong consistent Q4 2008 Q1 2009 growth in Bankers Q1 2008 Q2 2008 Q3 2008 $4,524.9 $4,549.3 $4,167.3 $4,275.1 and Colonial Penn $4,056.4 Slight decline in CIG due to focus on CIG more profitable CP business BLC
Slide 7: Q1 2009 Summary of Results
Q1 2009 Summary of Results CNO ($ millions, except per-share amounts) Pre-Tax After Tax EPS Bankers Life $44.7 Colonial Penn 5.1 Conseco Insurance Group 31.2 Corporate operations operations, interest e expense pense and expenses related to debt modification (31.9) Income before net realized investme
Slide 8: Q1 Earnings Consolidated
Q1 Earnings CNO Consolidated ($ millions) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Bankers Life $29.1 $34.6 $67.8 $40.0 $44.7 Colonial Penn 3.7 8.3 6.5 6.7 5.1 Conseco Insurance Group 23.3 32.3 34.2 31.5 31.2 Corporate operations, excluding interest expense (6.7) (16.2) (3.7) (0.1) (8.7) Total EBIT*
Slide 9: Operating ROE
Operating ROE CNO Operating ROE*, Trailing 4 Quarters Operating ROE (Before Annuity Coinsurance Transaction)**, Trailing 4 Quarters Q4 2008 Q1 2009 Q4 2008 Q1 2009 Q3 2008 Q1 2008 Q2 2008 Q3 2008 5.3% 6.0% 5.3% 6.0% 4.3% 4.3% 3.8% 4.3% Q1 2008 Q2 2008 1.7% 1.9% *Operating return excludes net realize
Slide 10: Operating EPS
Operating EPS EPS* CNO Q3 2008 $0.31 Q4 2008 $0.26 Q1 2009 Q2 2008 $0.17 Q1 2008 $0.13 $0.11 Seasonality of Q1 Q2 Q3 Q4 Q1 Operating EPS** 17-22% 20-25% 23-28% 26-31% 17-22% *Operating earnings per share exclude net realized investment gains (losses), valuation allowance related to p deferred tax as
Slide 11: Key Debt Covenants
Key Debt Covenants CNO ($ millions) Q4 2008 Q1 2009 Covenant Margins as of 3/31/09 Bank Covenant Debt/Capital Ratio* Covenant Maximum 30.0% 32.5% Reduction to shareholders’ equity of approximately $672 million or Actual 28.3% 27.9% additional debt of $324 million. Interest Coverage Covenant Minimum
Slide 12: Liquidity Projection For Remainder of 2009
Liquidity Projection For Remainder of 2009 CNO ($ millions) Cash Balance 3/31/09 $104.3 Sources Dividends $60.0 Surplus Debenture Interest 34.3 Management and Investment Fees 42.5 Total Sources $136.8 Uses Interest $52.9 Debt Repayments: Revolver (repaid in April 2009) 55.0 Senior Credit Facility 6.
Slide 13: Consolidated RBC Ratio
Consolidated RBC Ratio* Ratio CNO Q1 2009 positive impacts: Q1 2008 Q2 2008 • Q1 statutory operating results (7 282% 271% Q3 2008 Q4 2008 Q1 2009 257% 255% percentage pts) 230% • Termination of group PFFS cases ((6 p pts)) Q1 2009 negative impacts: • Net capital losses (14 pts) • Credit rating m
Slide 14: Consolidated RBC Ratio Changes Over Last Four Quarters
CNO 14 230% Ending RBC -3% hange in Net Ch De eferred Tax Assetss -20% Bon nd Downgrades an nd Impairments -46% Mortgag ge Experience Changes Over Last Four Quarters Adjustm ment Factor -50% Net Statutory Capital Losses C +10% Other, Including Changes in Covaria ance Consolidated RBC Ratio – +4% Con
Slide 15: Q1 Summary Bankers
Q1 Summary Bankers Earnings of $44.7 million, up 54% over Q1 2008: • Higher LTC margins (+$11 million) • Positive impact of rate increases • Higher annuity margins (+$10 million) • Positive FAS 133 impact • Improved persistency • Increase in COLI surrender value (+$3 million) • Lower Med Supp marg
Slide 16: NAP Results Bankers
NAP Results Bankers ($ millions) Quarterly Core NAP (Excludes PFFS) Core NAP up 9% vs Q1 2008 Q4 2008 • Strong sales of annuities Q2 2008 Q3 2008 $71.9 Q1 2009 Q1 2008 $59.8 $61.2 $60.4 (+33%), Med Supp (+8%) and $55.6 life (+8%), partially offset by lower LTC (-20%) sales PFFS sales negatively
Slide 17: Q1 2009 Sales and Distribution Results Bankers
Q1 2009 Sales and Distribution Results Bankers Agent productivity and agent force growth remain strong • 4,987 agents* at 3/31/09, up 5% vs 12/31/08 • 22% YTD growth in new agents; a record quarter for agent recruiting Coventry’s y decision to not file PFFS for 2010 not expected p to disrupt dis
Slide 18: Annuity Sales Bankers
Annuity Sales Bankers ($ millions) Annuities – NAP* Stock market volatility fueling fixed annuity sales Q4 2008 Indexed annuities remain smaller $24.4 percentage of total annuity sales Q3 2008 $19 4 $19.4 Q1 2009 SEC designation of indexed $18.2 annuities as securities (Rule 151A) Q2 2008 Q1 2
Slide 19: Annuity Surrenders Bankers
Annuity Surrenders Bankers EIA Surrenders No significant change in (annualized quarterly rate) Q1 2007 surrender activity: 11.5% Q2 2007 11.2% Q3 2007 10.8% Q4 2007 10.3% Q1 2008 Q3 2008 Q4 2008 10.9% Q1 2009 10.5% 9.0% Q2 2008 9.8% • Q1 2009 surrenders slightly lower 8.6% than Q4 2008 Average a
Slide 20: LTC Update Bankers
LTC Update Bankers Rate increases ahead of schedule (2008 round – policies issued prior to 2002)) • Filed $102.5 million of rate increases = 100% of expected total • Approvals at 3/31/09 = $66.6 million (30 states), 94% of expected total • Projected financial impact = $56.7 $56 7 million million,
Slide 21: Q1 Earnings Bankers
Q1 Earnings Bankers ($ millions) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Insurance policy income $497 0 $497.0 $543 4 $543.4 $537 7 $537.7 $531 8 $531.8 $491 5 $491.5 Net investment income 129.3 135.2 138.3 155.4 142.2 Fee revenue and other income 1.6 2.1 3.1 4.2 1.4 Total revenues 627.9 680.7 679.1
Slide 22: Q1 Summary Colonial Penn
Q1 Summary Colonial Penn Earnings of $5.1 million, up 38% over Q1 2008: • Favorable life claim experience and overall business growth • Lower expense levels • Higher investment income 2009 lead generation efforts intentionally reduced as part of company’s capital management efforts • Life sales
Slide 23: Q1 Earnings Colonial Penn
Q1 Earnings Colonial Penn ($ millions) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Insurance policy income $44.4 $47.5 $46.4 $46.5 $47.1 Net investment income 9.2 10.1 10.1 10.2 9.8 Fee revenue and other income 0.3 0.5 0.5 0.5 0.2 Total revenues 53.9 58.1 57.0 57.2 57.1 Insurance policy benefits 35.0 35
Slide 24: Q1 Summary CIG
Q1 Summary CIG Earnings of $31.2 million, up 34% vs Q1 2008: • Higher margins for specified disease and Med Supp blocks (+$6 ( $6 million) • Unlocking adjustment negatively impacted Q1 2008 (+$8 million) • Partially offset by lower annuity margin due to excess terminations in Q1 2009 (-$3 million)
Slide 25: Q1 2009 Sales and Distribution Results CIG
Q1 2009 Sales and Distribution Results CIG ($ millions) Q1 2008 Specified disease sales up 20% over Q1 2008 Q1 2009 Worksite sales up 27% $11.5 Strong recruiting, with record numbers of new agents in PMA, 52 new IMOs signed for $9.6 CIG Sales, and 61% increase in producing worksite agents De
Slide 26: Q1 Earnings CIG
Q1 Earnings CIG ($ millions) Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Insurance policy income $243.7 $239.1 $237.7 $238.4 $244.2 Net investment income 136.1 138.7 134.0 143.7 134.3 Fee revenue and other income 0.8 0.5 0.1 0.3 0.7 Total revenues 380.6 378.3 371.8 382.4 379.2 Insurance policy benefits
Slide 27: Q1 2009 Net Realized Losses
Q1 2009 Net Realized Losses CNO ($ millions) Amount Recognized through Accumulated Gross Other Comprehensive Amount Recognized Amounts Income through Net Income Net gains on sales $85.1 - $85.1 Losses due to recognition of other- than-temporary impairments (108.1) $(16.1) (92.0) Amortization adjustm
Slide 28: Investment Quality: Fixed Maturities
Investment Quality: Fixed Maturities Maturities* CNO Actively Managed Fixed Maturities by Rating at Investment grade securities 3/31/09 (Market Value) represent p 91% % of total portfolio* <BBB Limited new money allocation 9% AAA 16% to below-investment grade AA 5% securities Increase in below
Slide 29: Q1 2009 Downgrades from Investment Grade to Below Investment Grade
Q1 2009 Downgrades from Investment Grade to Below Investment Grade CNO ($ millions) Effect of Statutory Book Downgrades on Type Value # Issues RBC Ratio* IG Corporates $119.3 9 (1.4) Financials 87 4 87.4 6 (1 6) (1.6) Subprime 10.0 1 (0.1) Alt-A 114.0 5 (2.2) Prime Jumbo 15.0 1 (0.5) CMBS 15.1 5 (0.
Slide 30: Asset Allocation at 3/31/09
Asset sset Allocation ocat o at 3/31/09 3/3 /09 CNO • Overall highly rated • Pressure on ALT-A marks caused by • Overall mark-to-market and fundamentals and market illiquidity credit migration consistent with Cash 4 4.1% 1% • Alt-A Alt A downgrades credit cycle • Low, but rising delinquencies • Pres
Slide 31: Asset Allocation at 3/31/09
Asset Allocation at 3/31/09 CNO ($ millions) $12 324 $12,324 $10,421 MTM in line with expectations, reflecting generally stabilized yields during Q1 2009 M arket Value Book Value $2,354 $2,140 $1,970 $2,050 $1,324 $ , $1,529 $1,013 $877 $454 $670 $1,517 $1 517 $596 $132 $395 $302 $690 $102 $204 er l
Slide 32: CMOs by Type at 3/31/09
CMOs by Type at 3/31/09 CNO ($ millions) Our allocation to CMOs has been reduced over $1,489.6 the last two years to meet our asset/liability management needs $1,069.8 Book Value Market Value $667.4 $642.4 $150.1 $155.6 $72.3 $77.3 Privat e Label FHLMC FNMA GNMA 32
Slide 33: Non-Agency CMOs at 3/31/09
Non-Agency Non Agency CMOs at 3/31/09 CNO Our non-agency CMOs are diversified by vintage 2006 Prime Jumbo 10.9% 2005 Prime Jumbo 27.1% 2007 Prime Jumbo 11.3% 2004 Alt Alt-A A44.0% 0% 2005 Alt-A 0.7% 2006 Alt-A 18.3% 2004 Prime Jumbo 18.3% 2003 & Prior Prime 2007 Alt Alt-A A22.6% 6% Jumbo 6.8% 33
Slide 34: Alt-A at 3/31/09
Alt-A Alt A at 3/31/09 CNO ($ millions) Market Book % of Avg. Avg. Avg. 60+ Avg. Accum. % of Rating Value (mil.) Value (mil.) Alt-A* FICO Support Delinq. Loss Portfolio* AAA $13.1 $18.3 5.0% 692 14.8% 8.1% 0.75% 0.07% AA $43.5 $52.8 16.5% 734 7.7% 5.4% 0.23% 0.23% A $5.1 $10.0 1.9% 691 11.8% 12.9% 0
Slide 35: Sub-Prime Home Equity ABS By Vintage
Sub-Prime Home Equity ABS By Vintage CNO (GAAP book value - $ millions) 3/31/2008 $130.5 3/31/2009 $79.2 $80.7 $49.7 $24.6 $15.2 $10.8 $10.0 $10.0 $8.7 $0.0 $0.0 2003 2004 2005 2006 2007 Exposure reduced by 39% in the last 12 months Represents 0.35% of invested assets at 3/31/09, compared to 0.7
Slide 36: Sub-Prime Home Equity ABS at 3/31/09
Sub-Prime Home Equity ABS at 3/31/09 CNO ($ millions) Market Book % of Avg. Avg. Avg. 60+ % of Rating Value (mil.) Value (mil.) Subprime* FICO Support Delinq. Portfolio* AAA $16.1 $22.2 36.7% 632 34.3% 13.7% 0.09% AA $10.0 $18.2 22.9% 629 23.1% 13.8% 0.05% A $6.0 $ $16.3 $ 13.7% 676 19.7% 6.8% 0.03%
Slide 37: CMBS by Vintage at 3/31/09
CMBS by Vintage at 3/31/09 CNO (GAAP book value - $ millions) Our CMBS exposure is heavily weighted toward higher ratings and older vintages with stronger qualitative characteristics and seasoning 2009 0.4% 2007 5.4% AAA AA A BBB <BBB 2006 10.1% Pre-2004 $206.7 $34.1 $42.5 $12.0 $0.0 Pre-2004 2004 $
Slide 38: CMBS by Collateral Type at 3/31/09
CMBS by Collateral Type at 3/31/09 CNO Our CMBS are backed by a diverse pool of underlying collateral – $90 billion, from more than 7,900 commercial mortgage loans Indus. Hotel 4.2% 5.8% Other 14.8% Office 27.8% 27 8% Retail 32.5% Multi-Family 14.9% 38
Slide 39: CNO Summary
CNO Summary CNO Key differences between Conseco and the rest of the industry: • Our sales are continuing to grow • Our products are simple and straightforward, and entail less product risk than those designed for higher-net-worth customers Strong g franchise in the senior middle market Capital
Slide 40: Questions and Answers
S CONSECO. Questions and Answers 40
Slide 41: Appendix
S CONSECO. Appendix 41
Slide 42: Book Value Per Share
Book Value Per Share* CNO Increase from Q4 2008 due to Q1 2008 Q1 2009 net income $24.48 Q2 2008 $21.83 Q3 2008 $20.86 Q4 2008 Q1 2009 $18.41 $18.57 *Book Book value excludes accumulated other comprehensive income (loss) (loss). Shares outstanding assumes: (1) conversion of convertible securities;
Slide 43: Bank Covenant Debt to Total Capital Ratio
Bank Covenant Debt to Total Capital Ratio Ratio* CNO Change from Q4 2008 Q4 2008 Q1 2009 primarily due to Q1 2009 Q3 2008 28.3% 27.9% Q2 2008 net income Q1 2008 22.9% 23.6% 20.9% *Excludes accumulated other comprehensive income (loss). See Appendix for corresponding GAAP measure. 43
Slide 44: Net Investment Income
Net Investment Income CNO ($ millions) General Account Investment Income Decrease in Q1 2009 primarily due to increase in cash and Q1 2008 $310.0 Q2 2008 $311.9 Q3 2008 $312.8 Q4 2008 $319.8 Q1 2009 $308.6 short-term investment balances compared to prior periods Yield: 5.82% 5.82% 5.91% 5.93% 5.67
Slide 45: Expenses
Expenses CNO ($ millions) Adjusted Operating Expenses* Back-office Back office consolidation complete Q4 2008 Q1 2008 Q2 2008 Q3 2008 • Approximately $20 million in savings $96.5 $95.8 $94.0 $99.2 Q1 2009 $92.8 realized in 2007 and 2008; remaining $5 million expected in 2009 • Q4 2008 expenses ref
Slide 46: Segment Performance Bankers
Segment Performance Bankers ($ millions) Pre-Tax Operating Income* Earnings up 54% vs Q1 2008 Q3 2008 $67.8 Earnings positively affected by: Q1 2009 • Higher LTC margins Q2 2008 Q4 2008 $40.0 $44.7 Q1 2008 $34.6 • Lower DAC/VOBA amortization $29.1 • Change in COLI surrender value • FAS 133 accou
Slide 47: Premiums – Medicare Supplement Bankers
Premiums – Medicare Supplement Bankers Medicare Supplement – First-Year Premiums ($ millions) Q4 2008 $23.0 Q2 2008 Q3 2008 Q1 2009 First-year premiums up 3% Q1 2008 $19.4 $19.8 $19.7 $19.1 vs Q1 2008 Med. Supp. First-Year Prems.-Tr. 4 Qtrs: $79.4 $78.8 $79.3 $81.3 $81.9 Med. Supp. pp Total Premiu
Slide 48: Premiums – Long-Term Care Bankers
Premiums – Long-Term Long Term Care Bankers ($ millions) Long-Term Care – First-Year Premiums* Quarterly Q t l first-year fi t premium i tracks decline in NAP Q1 2008 Q2 2008 Q3 2008 Q1 2009 NAP decline attributable to Q4 2008 $11.0 $10.6 $10.8 (Direct) $10.3 $9.9 three main factors: • Overall i
Slide 49: Premiums – Life Insurance Bankers
Premiums – Life Insurance Bankers ($ millions) Life – First-Year Premiums Fluctuations in first first-year year Q2 2008 $22.5 Q4 2008 premiums primarily reflect Q1 2008 Q3 2008 $20.2 $19.5 variance in sales of single- $18.5 Q1 2009 $16.8 premium policies p p $9.4 $7 5 $7.5 $8.2 SPWL $7.0 Non-SPW
Slide 50: Premiums – Annuity Bankers
Premiums – Annuity Bankers ($ millions) Annuity – First-Year Premiums Q4 2008 Stock market volatility $410.5 fueling fixed annuity sales Q3 2008 $322.4 Q1 2009 Indexed annuities remain $301.1 Q2 2008 $260 1 $260.1 Q1 2008 smaller percentage of total $227.6 annuity sales First-Year Prems.-Tr. 4 Q
Slide 51: Benefit Ratio – PDP Bankers
Benefit Ratio Ratio* – PDP Bankers Down 8% vs Q1 2008 Q1 2008 103.3% Q 2008 Q2 Q1 2009 • Q1 2009 impacted by prior 95.2% Q4 2008 95.5% Q3 2008 contract year IBNR release of 80.9% 84.6% $0.9 million • Q1 2008 impacted by prior contract year IBNR strengthening of $2 million *We calculate benefit rat
Slide 52: Benefit Ratio – PFFS Individual Business Bankers
Benefit Ratio* – PFFS Individual Business Bankers Q4 2008 Q1 2009 vs Q4 2008 Q2 2008 Q3 2008 98.1% 107.5% Q1 2009 96 1% 96.1% 96 2% 96.2% comparison i impacted i t d by b prior i Q1 2008 84.6% contract year reserve releases *We calculate benefit ratios by dividing insurance policy benefits by insu
Slide 53: Interest-Adjusted Benefit Ratio – Long Term Care Bankers
Interest-Adjusted Benefit Ratio* – Long Term Care Bankers Q1 2009 positively impacted by continued stabilization of incurred Q1 2008 Q2 2008 claims and excess terminations 79 0% 79.0% 81.4% Q3 2008 Q4 2008 Q1 2009 68.1% 67.4% 68.6% Completed Round Three re-rates on legacy block; expect $50 milli
Slide 54: Segment Performance Colonial Penn
Segment Performance Colonial Penn ($ millions) Pre-Tax Operating Income* Q Q1 2008 to Q1Q 2009 change g affected by: y Q2 2008 $8.3 • Organic growth initiatives and favorable Q4 2008 mortality, net of DAC amortization Q3 2008 $6.5 $6.7 • Lower net expenses Q1 2009 $5.1 $ • Higher Hi h iinvestment t
Slide 55: Premiums – Life Insurance Colonial Penn
Premiums – Life Insurance Colonial Penn ($ millions) Life – First-Year Premiums Q1 2009 Q2 2008 Q4 2008 NAP: Q1 2008 $ $8.9 Q3 2008 $8.8 $ $8.9 $9 2 $9.2 $8.4 • Trailing 4 quarters relatively flat • 14% growth over most recent quarter Premium: • First year: • Trailing 4 quarters relatively flat
Slide 56: Segment Performance CIG
Segment Performance CIG ($ millions) Pre-Tax Operating Income* Higher specified disease margins Lower expenses Q3 2008 Unlocking adjustment negatively Q2 2008 $32.3 $34.2 Q4 2008 $31.5 Q1 2009 $31.2 impacting interest-sensitive life Q1 2008 block in QQ1 2008 $23.3 Partially offset by • Lower
Slide 57: Premiums - Medicare Supplement CIG
Premiums - Medicare Supplement CIG ($ millions) Medicare Supplement – First-Year Premiums NAP lower l vs Q4 2008: 2008 • We continue to focus on the profitability of this business rather Q1 2008 Q4 2008 $2.8 Q2 2008 than increased sales $2 3 $2.3 Q3 2008 $2.1 $2 4 $2.4 Q1 2009 $1.5 First-Year Prem
Slide 58: Premiums – Specified Disease CIG
Premiums – Specified Disease CIG ($ millions) Specified Disease – First-Year Premiums Q4 2008 NAP up 20% from Q1 2008: Q1 2008 Q2 2008 $9.8 Q3 2008 $10.5 Q1 2009 $10.2 $9.7 $9.4 • New products • Increased PMA focus on specified ifi d disease di products d • Recruitment of Health IMOs • Momentum in
Slide 59: Premiums – Annuity CIG
Premiums – Annuity CIG ($ millions) Annuity – First-Year Premiums First-year collections down Q1 2008 $39.2 Q2 2008 16% from Q4 2008: $34.4 • Discontinuance of products due Q3 2008 $25.1 Q4 2008 t an annuity to it coinsurance i $21.2 Q1 2009 transaction $17.8 • Focus on profitable products First-Y
Slide 60: Benefit Ratio – Medicare Supplement CIG
Benefit Ratio* – Medicare Supplement CIG In line with expectations Q2 2008 Q3 2008 p and Q1 2008 71 9% 71.9% 73.0% Q1 2009 Q4 2008 67.3% recent trends 65.8% 62.8% Trailing 4 Quarter Avg.: 67.4% 68.0% 69.1% 68.4% 68.8% *We calculate benefit ratios by dividing insurance policy benefits by insurance
Slide 61: Interest-Adjusted Benefit Ratio – Specified Disease CIG
Interest-Adjusted Benefit Ratio* – Specified Disease CIG QQ4 2008 included recognition g of deferred ROP adjustment Q1 2008 Q2 2008 Q3 2008 related to prior periods 48.1% 46.7% 48.5% Q1 2009 42.2% Q1 2009 recognized g lower Q 2008 Q4 30.1% incurred claims due to favorable experience in prior peri
Slide 62: 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 63: 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 net operating income (and related per-share amounts) is as follows (dollars in millions, except per-share amounts): Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Net income (loss) applic
Slide 64: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non Non-GAAP 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
Slide 65: 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, discontinued operations and increases to our valuation allowance for deferred tax assets (“net operating income,” a non-GAAP financ
Slide 66: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non Non-GAAP GAAP Financial Measures A reconciliation of return on common equity to operating return on common equity (excluding accumulated other comprehensive income (loss) and net operating loss carryforwards) is as follows (dollars in millions, except per share amo
Slide 67: 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 three months ended March 31, 2009, is as follows (dollars in millions): CIG Bankers Co
Slide 68: 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) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders’ equity at March 31, 2009, is as follows (dol
Slide 69: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation ili ti off average common shareholders’ h h ld ’ equity,it excluding l di accumulated l t d other th comprehensive h i iincome (l(loss)) and d nett operating ti loss l carryforwards (a non-GAAP financial measure) to average
Slide 70: 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