Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Investor Day (December 2012)
88 slides from Cno Financial's investor day presentation, Dec 13, 2012
Slide 1: 2012 CNO Investor Day
2012 CNO Investor Day December 13, 2012 Exhibit 99.2
Slide 2: Agenda
CNO Financial Group | Investor Day | December 13, 2012 2 Agenda Time Topic Speaker 12:15 Introductions Erik Helding – SVP Investor Relations & Treasury 12:20 CNO Strategy Ed Bonach – CEO 12:50 Segment Growth Strategy Scott Perry – CBO 1:05 Target Market & Distribution Scott Perry – CBO & President,
Slide 3: 13, 2012
CNO Financial Group | Investor Day | December 13, 2012 3
Slide 4: Forward-Looking Statements
CNO Financial Group | Investor Day | December 13, 2012 4 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 operat
Slide 5: Non-GAAP Measures
CNO Financial Group | Investor Day | December 13, 2012 5 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 ar
Slide 6: CNO Strategy
CNO Financial Group | Investor Day | December 13, 2012 6 CNO Strategy Ed Bonach - CEO
Slide 7: Ed Bonach – Chief Executive Officer
CNO Financial Group | Investor Day | December 13, 2012 7 Ed Bonach – Chief Executive Officer Ed Bonach (58) 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 Ma
Slide 8: Track Record of Execution
CNO Financial Group | Investor Day | December 13, 2012 8 86% 15% 26% CNO Peers S&P Insurance Track Record of Execution Stock Performance Since YE2009* *As of market close on 12/07/12 Reset Business Mix Financial Foundation Return Value To Shareholders Invest in Growth Peers - AFL, AIZ, AMP, GNW, HIG
Slide 9: What Differentiates CNO?
CNO Financial Group | Investor Day | December 13, 2012 9 What Differentiates CNO? Focus on serving the needs of our middle-income target market Exclusive distribution ‒ Consistent with market focus ‒ We have “pricing” influence ‒ Track record of stable customer base Alignment Distribution Product
Slide 10: CNO's Target Market
CNO Financial Group | Investor Day | December 13, 2012 10 CNO’s Target Market Source: Census Data and Center for a Secure Retirement Population Growth in Our Market We enrich lives by providing financial security to middle-income American working families and retirees. The Opportunity Fast Growing
Slide 11: Investing in our business segments
CNO Financial Group | Investor Day | December 13, 2012 11 Investing in our business segments Investing in the Customer Experience and operational efficiency ‒ Hired Bruce Baude to head IT & Operations Agent Growth and Development Office Locations Distribution Growth Worksite Platform New Mark
Slide 12: Focused on Customer Service and Operational Effectiveness
CNO Financial Group | Investor Day | December 13, 2012 12 Sourcing Rationalization Additional Platform Consolidation/Optimization Leveraging Customer Data Process Efficiency Advancing a Service Culture Service Quality Measurement Where We Have Opportunity... Focused On Customer Service and Operation
Slide 13: CNO: Value Proposition
CNO Financial Group | Investor Day | December 13, 2012 13 Opportunities Capital Management Run-Off Engineering Operational Efficiencies Rapidly Growing Target Market Distribution Expansion CNO: Value Proposition Stabilized Earnings & Capital Uniquely Positioned Business Model Reinvesting in
Slide 14: Next Steps – Continue to Drive Shareholder Value
CNO Financial Group | Investor Day | December 13, 2012 14 Next Steps – Continue to Drive Shareholder Value Invest $80-$85mm in strategic business initiatives 2015 Milestones Capitalize on Opportunities Accelerate run-on and run-off Target dividend payout ratio of 20% Drive to investment grad
Slide 15: Q&A
CNO Financial Group | Investor Day | December 13, 2012 15 Q&A
Slide 16: Segment Growth Strategy
CNO Financial Group | Investor Day | December 13, 2012 16 Segment Growth Strategy Scott Perry - CBO
Slide 17: Scott Perry – Chief Business Officer
CNO Financial Group | Investor Day | December 13, 2012 17 Scott Perry (50) is chief business officer of CNO Financial Group, Inc. and continues to hold the title of president for Bankers Life and Casualty Company. Perry joined Bankers as a field vice president and has held the titles of senior vice
Slide 18: CNO: Distribution Strategy to Reach Middle Market
CNO Financial Group | Investor Day | December 13, 2012 18 CNO: Distribution Strategy to Reach Middle Market
Slide 19: Bankers Life Growth Levers
CNO Financial Group | Investor Day | December 13, 2012 19 Medicare Supplement Life Insurance Medicare Partnerships Medium-Term Care Satellite Expansion Manager Trainee Program Agent Recruiting Agent Retention/ Productivity Cross-Sales Prospecting Brand Building Affinity Marketing Bankers Life Growth
Slide 20: Washington National Growth Levers
CNO Financial Group | Investor Day | December 13, 2012 20 Increase Recruiting Capacity Expand Sales Management & State Expansion Worksite Agencies Active Care WNezApp2.0SM WNezBillSM Workplace Solutions Enhance Claims Processing Award-winning Website Washington National Institute for Health and Well
Slide 21: Colonial Penn Growth Levers
CNO Financial Group | Investor Day | December 13, 2012 21 Lead Mix (higher % non-TV) Sales Productivity Additional Sales / Cross-Sell (CRM & Others) New Whole Life Product New Term Life Product Hispanic Market Younger Web Expansion Colonial Penn Growth Levers Direct to Consumer
Slide 22: LTC Strategy
CNO Financial Group | Investor Day | December 13, 2012 22 LTC Strategy Conservative and affordable product design Ability to underwrite Pricing, re-pricing and ALM discipline Active risk management and stable reinsurance partnerships Business model affords ability to strike this balance wi
Slide 23: Healthcare Reform - CNO Well Positioned
CNO Financial Group | Investor Day | December 13, 2012 23 Healthcare Reform - CNO Well Positioned Healthcare Reform CNO Impact Does not apply to “Excepted Benefits” Attempts to reduce fraud and waste and promote wellness in Medicare Reduces funding and raises minimum loss ratios for Medicare Advanta
Slide 24: Target Market & Distribution
CNO Financial Group | Investor Day | December 13, 2012 24 Target Market & Distribution Scott Perry – CBO, President, Bankers Life Mike Buckley – SVP Sales, Bankers Life Steve Stecher – President, Washington National Gerardo Monroy – President, Colonial Penn
Slide 25: Three distinct franchises with unique value propositions
CNO Financial Group | Investor Day | December 13, 2012 25 • Focuses on middle-income Boomers and retirees • Offers Medicare Supplement, life, annuity, LTC, Medicare Part D and Medicare Advantage products • Employs “kitchen-table” sales model • Over 5,600 career agents and sales managers • Over 275 l
Slide 26: Michael Buckley
CNO Financial Group | Investor Day | December 13, 2012 26 Michael Buckley (61) joined Bankers Life in 2004 as territory vice president, responsible for the company's northeast sales territory. Since 2009, he has served as senior vice president of sales, leading the company's entire sales organizatio
Slide 27: Bankers Life – Target Market and Alignment
CNO Financial Group | Investor Day | December 13, 2012 27 Bankers Life – Target Market and Alignment Target Market Customer Needs Product Offering Life, Health and Annuities Personalized Advice at Home • Retirement Planning • Medicare Planning • Final Expenses • Legacy Giving Middle Market • Near an
Slide 28: Bankers Life – Distribution Model
CNO Financial Group | Investor Day | December 13, 2012 28 Bankers Life Customer Managers Agents Sales Locations Branch and Satellite Expansion Manager Development Successful New Agents Bankers Life – Distribution Model • Management Employees • Career Agents • Customer Access Processes • Face-to-Face
Slide 29: Bankers Life Key Value Drivers
CNO Financial Group | Investor Day | December 13, 2012 29 Bankers Life Key Value Drivers CAGR: +4% CAGR: -1% +15 points CAGR: +3% 223 275 0 50 100 150 200 250 300 2007 2008 2009 2010 2011 YTD2012 52 additional locations over five years Selling Locations Agents 4,482 5,200 - 1,000 2,000 3,000 4,000 5
Slide 30: Steven Stecher
CNO Financial Group | Investor Day | December 13, 2012 30 Steven M. Stecher (52) joined CNO as executive vice president of operations and information technology for the Conseco Insurance Group in September 2004. He became chief operating officer for the company's Carmel-based insurance companies in
Slide 31: Washington National – Target Market and Distribution
CNO Financial Group | Investor Day | December 13, 2012 31 *Source: Eastbridge Consulting Washington National – Target Market and Distribution
Slide 32: Washington National Key Value Drivers
CNO Financial Group | Investor Day | December 13, 2012 32 Washington National Key Value Drivers Distribution Growth • New producing WN Independent Partners increased 29% over prior year through October • PMA producing agent count increased 6% over prior year through October Back Office Efficiency—El
Slide 33: Gerardo Monroy
CNO Financial Group | Investor Day | December 13, 2012 33 Gerardo Monroy (45) 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
Slide 34: Colonial Penn – Target Market and Alignment
CNO Financial Group | Investor Day | December 13, 2012 34 Colonial Penn – Target Market and Alignment Target Market Customer Needs Product Offering Life Insurance • Final Expense Insurance • Term Life • Whole Life • Life Products Pipeline Middle – Low-Mid Market • Seniors • Average 65 years old • Ur
Slide 35: Colonial Penn Integrated Marketing and Sales Process
CNO Financial Group | Investor Day | December 13, 2012 35 5% 8% 12% 15% 60% Agent & Test Sales Service Sales Customer Reactiv. Prospect Reactiv. Prospect Identif. New Sales Sales CPL Customer Prospects Leads Campaigns Buyers Additional Sales Re a c ti v a te Referrals Service Non-Buyers Reactivate (
Slide 36: Colonial Penn Key Value Drivers
CNO Financial Group | Investor Day | December 13, 2012 36 Colonial Penn Key Value Drivers Increasing investment in lead generation Higher phone contact rates = Higher conversion rates Acquisition cost / NAP ratios are higher when investing in growth; new markets and/or new products Achieving
Slide 37: Executing on Strategies Projected to Lead to 8-10% Growth in Sales
CNO Financial Group | Investor Day | December 13, 2012 37 $245.4 $245.9 $245.7 2010 2011 LTM 3Q2012 Executing on Strategies Projected to Lead to 8-10% Growth in Sales 4% CAGR* 9% CAGR** 14% CAGR * * Excluding Annuities ** Core Products (Supplemental Health and Life) Sales - 7% CAGR* Across All Segme
Slide 38: Q&A
CNO Financial Group | Investor Day | December 13, 2012 38 Q&A
Slide 39: Investments
CNO Financial Group | Investor Day | December 13, 2012 39 Investments Eric Johnson – CIO & President, 40|86
Slide 40: Eric R. Johnson
CNO Financial Group | Investor Day | December 13, 2012 40 Eric R. Johnson President, 40|86 Advisors, Inc. Chief Investment Officer, CNO Financial Group, INC Eric Johnson (52) has been the President of 40|86 Advisors (CNO’s registered investment adviser subsidiary) for 9 years. He has more than 20 ye
Slide 41: Key Takeaways
CNO Financial Group | Investor Day | December 13, 2012 41 Key Takeaways Disciplined approach to investing and asset-liability management Emphasis on stable and predictable investment performance meeting corporate objectives Current tactical priority: sustaining book yield and investment income
Slide 42: Active Management Culture
CNO Financial Group | Investor Day | December 13, 2012 42 Active Management Culture Culture Leads to Quality and Competency Breadth of capabilities Tested risk controls Strong alignment with business strategies Disciplined approach to investing and asset- liability management Experience and track re
Slide 43: Cycle of Low Yields
CNO Financial Group | Investor Day | December 13, 2012 43 The Fed is likely to continue to provide substantial liquidity The choices in the bond market are more about relative value rather than absolute returns Probably a credit compression trade, or intermediate term maturities offer the best risk/
Slide 44: Strategic Insights
CNO Financial Group | Investor Day | December 13, 2012 44 Modestly increase risk – “Compression Trade” Emphasize U.S. domestic sectors Transition from macro (correlated) to micro market Call on housing market bottom Energy as a beneficiary of global demand Strategic Insights
Slide 45: Our Outlook
CNO Financial Group | Investor Day | December 13, 2012 45 Our Outlook Risky credit has outperformed as Fed policy has diminished returns on risk-free assets and pushed investors out on the risk curve An environment of modest growth with household and business deleveraging is not inhospitable to
Slide 46: Our Asset Allocation
CNO Financial Group | Investor Day | December 13, 2012 46 Our Asset Allocation Highly diversified 90% investment grade < 0.72% equity Integrated with Asset-Liability Management discipline (i.e. duration, convexity, key rate duration) ($ millions) Recent Allocation Changes * Book value as of
Slide 47: Investment Ratings Profile
CNO Financial Group | Investor Day | December 13, 2012 47 90% investment grade Yields successfully defended while overall quality sustained Investment Ratings Profile * ‘High Risk’ assets defined as high yield assets, real estate, equity and alternatives ** BIG based on Moody’s Allocation to ‘Hi
Slide 48: Corporate Securities Allocation
CNO Financial Group | Investor Day | December 13, 2012 48 14.8% 11.8% 9.2% 9.0% 7.4% 7.1% 6.9% 5.6% 5.6% 4.8% 4.2% 4.1% 4.1% 2.8% 2.6% 10.5% 7.9% 5.7% 10.3% 5.2% 7.3% 24.5% 11.1% 2.1% 4.8% 3.7% 3.9% 1.8% 0.3% 1.1% Energy/Pipelines Utilities Insurance Telecom & Media Food/Beverage Healthcare & Pharma
Slide 49: Structured Securities
CNO Financial Group | Investor Day | December 13, 2012 49 $4,260 $3,460 $4,762 $5,232 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 IG BIG 76% investment grade 91% NAIC 1 rated Strong analytical disciplines around collateral and cash flow Structured Securities Sources: Goldman Sachs Portfo
Slide 50: RMBS
CNO Financial Group | Investor Day | December 13, 2012 50 8.2% of invested assets 98% NAIC 1 rated 61% BIG NRSRO ratings; purchased at significant discount to opportunistically capture yield Stable collateral performance trends Strong analytical process to stress test collateral, using mar
Slide 51: CMBS
CNO Financial Group | Investor Day | December 13, 2012 51 Stable, highly rated portfolio 100% investment grade: 87% AAA/AA 98% NAIC 1 Long-term buy and hold strategy based on property fundamentals Very strong collateral performance Average delinquency rate of 7% compared to market averag
Slide 52: CLOs Are a Significant Commitment & Opportunity
CNO Financial Group | Investor Day | December 13, 2012 52 AAA 9% AA 61% A 6% BBB 3% BB 1% B 1% CCC 3% NR 16% Stable and highly-rated 79% Investment grade; 70% AAA/AA 81% NAIC 1 Strong credit support CLOs Are a Significant Commitment & Opportunity * Book value as of 9/30/12 $0.4bn of Owned As
Slide 53: Commercial Mortgage Loans
CNO Financial Group | Investor Day | December 13, 2012 53 LTV >1.25 1.00x-1.25x <1.00 Total <65% $602 $40 $ - $642 65% - 75% 253 15 - 268 75% - 80% 100 8 - 108 >80% - 170 40 210 Total $955 $233 $40 $1,228 Multi-Family 6% Mixed Use 3% Industrial 17% Office 33% Retail 37% Other 4% Commercial Mortgage
Slide 54: Peripheral Europe
CNO Financial Group | Investor Day | December 13, 2012 54 Peripheral Europe* ($ millions) Financials $ - $59.8 $27.9 $87.7 $94.9 Utilities - 30.1 - 30.1 29.6 Industrials - 61.1 - 61.1 66.0 Telephone 26.1 - 64.6 90.7 82.3 Total $26.1 $151.0 $92.5 $269.6 $272.8 Book Value Fair Value Total * As of 9/30
Slide 55: Declining Impairment Losses
CNO Financial Group | Investor Day | December 13, 2012 55 $162.3 $195.4 $79.2 $23.1 $8.5 2008 2009 2010 2011 YTD - 3Q12 Corporates Structured Securities Commercial Real Estate Other Declining Impairment Losses* *Excludes net investment income losses and impairments related to IGA legacy investments
Slide 56: Dealing with Low Interest Rates
CNO Financial Group | Investor Day | December 13, 2012 56 5.96% 5.60% 5.24% 5.55% 5.29% 5.32% 5.25% 4.71% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Dealing with Low Interest Rates Credit at short end of curve (includes CLOs, Non-Agency RMBS, Esoteric ABS, selected High Yield) Quality at long end o
Slide 57: Our HoldCo Investment Strategy
CNO Financial Group | Investor Day | December 13, 2012 57 HoldCo 3 CLO structures in place totaling $829mm AUM Returns on alternative investments Returns on corporate liquidity Investment advisory and success fees $47mm invested in CLO equity, liquid equity, private equity Cash equivalents, core and
Slide 58: Q&A
CNO Financial Group | Investor Day | December 13, 2012 58 Q&A
Slide 59: Financial Overview
CNO Financial Group | Investor Day | December 13, 2012 59 Financial Overview Fred Crawford – CFO
Slide 60: Frederick J. Crawford
CNO Financial Group | Investor Day | December 13, 2012 60 Frederick J. Crawford EVP and Chief Financial Officer Fred Crawford (49) was named executive vice president and chief financial officer for CNO Financial Group, Inc., effective January 23, 2012. Crawford formerly served as executive vice pres
Slide 61: CNO's Financial Strategy
CNO Financial Group | Investor Day | December 13, 2012 61 CNO’s Financial Strategy • Investments in distribution and product expansion • Diverse margins drive stable growth • Active in-force management Grow Earnings & ROE • Balanced mix of protection business with disciplined return hurdles • Maximi
Slide 62: Segment Earnings Trend - Stable & Growing
CNO Financial Group | Investor Day | December 13, 2012 62 Diluted Share Count (mm) Average 301.9 304.1 306.1 293.0 EOP 306.7 296.6 299.0 250.8 $4.2 $(4.7) $(6.5) $(11.8) $17.8 $28.3 $28.3 $30.0 $221.0 $250.2 $184.0 $212.6 $100.4 $106.6 $73.3 $92.5 $(34.0) $(36.1) $(30.3) $(0.6) 2010 2011 YTD 3Q2011
Slide 63: Diverse Health Underwriting Margins
CNO Financial Group | Investor Day | December 13, 2012 63 $401 $429 $449 49.2% 51.3% 50.3% 2010 2011 LTM 3Q2012 Premium Reported Benefit Ratio $713 $718 $731 70.9% 69.0% 68.7% 2010 2011 LTM 3Q2012 ($ millions) Diverse Health Underwriting Margins Conditions & Outlook Conditions: • 1% change in benefi
Slide 64: Long Term Care – In Force Dynamics & Outlook
CNO Financial Group | Investor Day | December 13, 2012 64 BLC LTC $3,770.3 BLC HHC $403.7 BLC STC $165.2 OCB $466.4 $586 $571 $560 73.0% 68.8% 70.7% 2010 2011 LTM 3Q2012 Premium Reported Benefit Ratio Life $4,919.1 Annuity $9,076.5 Health $2,813.5 Long Term Care $4,805.6 ($ millions) Long Term Care
Slide 65: Interest Spreads - Management Actions to Defend Yields
CNO Financial Group | Investor Day | December 13, 2012 65 $9,974 $10,114 $10,082 $10,139 5.66% 5.67% 5.69% 5.60% 3.57% 3.32% 3.34% 3.18% $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2010 2011 Q3 2011 Q3 2012 A c c ount V a lue ( in $ m i
Slide 66: Low-For-Long Rates – Reserve Sensitivity
CNO Financial Group | Investor Day | December 13, 2012 66 • 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 - $28mm (after-tax) • Stress tes
Slide 67: Colonial Penn - Building Long-Term Value
CNO Financial Group | Investor Day | December 13, 2012 67 $44 $53 $58 $40 $43 $55 $- $10 $20 $30 $40 $50 $60 2011A 2012F 2015F New Business EBIT - Losses In-Force EBIT ($ millions) Colonial Penn - Building Long-Term Value Considerations & Outlook • GAAP accounting distorts true value • Developing ne
Slide 68: OCB – Optimizing Run-Off Insurance Blocks
CNO Financial Group | Investor Day | December 13, 2012 68 Traditional Life $782.1 Interest Sensitive Life $2,329.1 Annuities $1,383.2 LTC $466.4 Other A&H $13.2 OCB – Optimizing Run-Off Insurance Blocks Earnings Profile & Outlook 3 Q 2 0 1 2 A v e ra ge G A A P Re s e rv e s * ($ mill io n s ) A v e
Slide 69: Tax Asset Valuation
CNO Financial Group | Investor Day | December 13, 2012 69 Valuation Allowance $474 Valuation Allowance $305 Net $275 Net $618 Capital Non-Life Life Valuation Allowance for Loss Carryforwards Net Loss Carryforwards in Deferred Tax Asset Gross $275 Gross $305 Gross $1,092 Strategy for Maximizing Tax A
Slide 70: Recapitalization & Capital Strategy
CNO Financial Group | Investor Day | December 13, 2012 70 $175 $294 $347 $313 $146 $161 $203 $314 309% 332% 358% 361% 2009 2010 2011 YTD 3Q2012 Capital to Holding Company Holding Company Liquidity RBC ($ millions) Recapitalization & Capital Strategy Forward Capital Plan • Leverage of 20% • Risk-base
Slide 71: Stable Capital Generation – Free Cash Flow
CNO Financial Group | Investor Day | December 13, 2012 71 Debt Payments $111.7 Stock Buybacks $180.0 Common Stock Dividend $13.7 Financing Costs $24.0 Stable Capital Generation – Free Cash Flow Building ($ millions) 2013 Guidance: • $50-$75mm of capital retained to support growth • Statutory dividen
Slide 72: Driving Shareholder Value
CNO Financial Group | Investor Day | December 13, 2012 72 Driving Shareholder Value Additional Potential ROE Catalysts • Run-on / Run-off business engineering Impacts ROE, BV and “Beta” • Recapitalization “The Sequel” 2015 leverage in the 16% range • Operating effectiveness CBA-supported IRR’s
Slide 73: Q&A
CNO Financial Group | Investor Day | December 13, 2012 73 Q&A
Slide 74: Concluding Remarks
CNO Financial Group | Investor Day | December 13, 2012 74 Concluding Remarks Ed Bonach - CEO
Slide 75: CNO: Value Proposition
CNO Financial Group | Investor Day | December 13, 2012 75 Opportunities Capital Management Run-Off Engineering Operational Efficiencies Rapidly Growing Target Market Distribution Expansion CNO: Value Proposition Stabilized Earnings & Capital Uniquely Positioned Business Model Reinvesting in
Slide 76: Next Steps – Continue to Drive Shareholder Value
CNO Financial Group | Investor Day | December 13, 2012 76 Next Steps – Continue to Drive Shareholder Value Invest $80-$85mm in strategic business initiatives Accelerate run-on and run-off Enhance customer experience and operational efficiency ROE run-rate of 9% Drive to investment grade
Slide 77: Appendix
CNO Financial Group | Investor Day | December 13, 2012 77 Appendix
Slide 78: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Investor Day | December 13, 2012 78 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, fina
Slide 79: Non-GAAP Measures – 2010 Net Operating Income
CNO Financial Group | Investor Day | December 13, 2012 79 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 these items enhances the unde
Slide 80: Non-GAAP Measures – 2011 Net Operating Income
CNO Financial Group | Investor Day | December 13, 2012 80 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 these items enhances the unde
Slide 81: Non-GAAP Measures – YTD 3Q11 Net Operating Income
CNO Financial Group | Investor Day | December 13, 2012 81 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our YTD 3Q11 net operating income. Management believes that identifying the impact of these items enhances the
Slide 82: Non-GAAP Measures – YTD 3Q12 Net Operating Income
CNO Financial Group | Investor Day | December 13, 2012 82 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our YTD 3Q12 net operating income. Management believes that identifying the impact of these items enhances the
Slide 83: Non-GAAP Measures – Twelve Months Ended 3Q12
CNO Financial Group | Investor Day | December 13, 2012 83 Information Related to Certain Non-GAAP Financial Measures The table below summarizes the financial impact of significant items on our twelve months ended 3Q12 net operating income. Management believes that identifying the impact of these ite
Slide 84: Non-GAAP Measures – EBIT Reconciliation
CNO Financial Group | Investor Day | December 13, 2012 84 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 value changes due to fluctuati
Slide 85: Non-GAAP Measures – Interest-Adjusted Benefit Ratio
CNO Financial Group | Investor Day | December 13, 2012 85 Information Related to Certain Non-GAAP Financial Measures The interest-adjusted benefit ratio (a non-GAAP measure) is calculated by dividing the product's insurance policy benefits less imputed interest income on the accumulated assets backi
Slide 86: Non-GAAP Measures – Operating Return Measures
CNO Financial Group | Investor Day | December 13, 2012 86 Information Related to Certain Non-GAAP Financial Measures Operating return measures Management believes that an analysis of return before loss on extinguishment of debt, net realized gains or losses, fair value changes due to fluctuations in
Slide 87: Non-GAAP Measures – Operating Return on Equity
CNO Financial Group | Investor Day | December 13, 2012 87 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); and (
Slide 88: Non-GAAP Measures – Consolidated Capital Reconciliation
CNO Financial Group | Investor Day | December 13, 2012 88 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 shareho