Cno Financial Group, Inc. · NYSE:CNO
Cno Financial — Macquarie Small & Mid Cap Conference 2010
20 slides from Cno Financial's conference presentation, Jun 14, 2010
Slide 1: Macquarie Small & Mid Cap Conference
Exhibit 99.1 Macquarie Small & Mid Cap Conference June 16, 2010
Slide 2: Forward-looking statements
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 Group’s products and trends in CNO Financial Group’s operations or financial results, as well
Slide 3: Yesterday & Today
Yesterday & Today Conseco • Pursued roll-up strategy of insurance • Focused provider of supplemental companies health, protection and accumulation • 19 acquisitions for combined products to underserved senior middle consideration $6B through 1997 market; 3.9 million policies in force • Made “diversi
Slide 4: How we have changed…Fix, Focus & Grow
How we have changed…Fix, Focus & Grow • Strengthened CNO’s leadership team • Reinsured $3 billion block of annuities, reducing risk and raising cash • Moved 250 back-office jobs from Chicago to Carmel, reducing costs, creating single back office, freeing up real estate • Changed management incentive
Slide 5: CNO at a glance
CNO at a glance Target Market • Defined and differentiated by focus on senior and middle-income markets • Diversified, small risk amount protection products (3.9 million policies in force) Products • Not ratings dependent • Virtually no variable business (no sales since 2002) • Bankers: “kitchen tab
Slide 6: CNO: The right products and the right channels for today's middle-market consumer
CNO: The right products and the right channels for today’s middle-market consumer CNO has expertise CNO can access Strong trends are driving across important middle consumers across middle-market consumers - -market products multiple channels • Rising medical costs • Equity-Indexed Life and • With a
Slide 7: Broad distribution reach
Broad distribution reach Captive Independent Direct • Focused on middle-income senior • Focused on middle-income • Focused on lower middle-income market with Medicare supplement, working Americans in farm/rural retirees with simple, low-cost life life, annuity, LTC, Medicare Part D markets and retir
Slide 8: Few competitors in our target space
Few competitors in our target space National CNO Financial Group 8
Slide 9: Recent results demonstrate CNO's potential
Recent results demonstrate CNO’s potential • Q1 2010 marks fifth consecutive quarter of GAAP net income • 2009 Statutory Operating Earnings (net of tax) of $264 million • RBC up to 319% at 3/31/2010 • Continued focus on profitable growth in all three insurance segments • 2009 EBIT* up 16% over 2008
Slide 10: CNO: selling protection products through controlled distribution
CNO: selling protection products through controlled distribution 2009 Collected Premiums by Distribution Channel 2009 Collected Premiums by Product CIG CIG 22% CIG 5% PMA Medicare Life 17.0% Supplement 15.9% Colonial 20.4% Penn Bankers 5% 73% LTC Annuities 2009 Pre-Tax Operating Earnings by 15.4% 27
Slide 11: Total New Sales Across Business Units
Total New Sales Across Business Units (NAP - $ in millions) (a) Bankers 319.0 Colonial CIG (b) 306.5 Penn 294.3 268.6 233.5 218.0 99.2 78.4 68.8 71.8 72.0 56.4 (a) Measured by new annualized premium, which includes 6% of annuity and 10% of single premium whole life deposits and 100% of all other pre
Slide 12: Segmenting CIG's business for greater transparency, accountability and focus
Segmenting CIG’s business for greater transparency, accountability and focus • CIG is splitting into two segments: • Washington National • Other CNO Business • Other CNO Business comprised primarily of CIG’s closed blocks • Will be separately managed from current/growing business • Accounts for abou
Slide 13: Q1 2010 summary
Q1 2010 summary • Core sales and lead generation continued to be strong • Impact of health care reform • Medicare Supplement and Medicare Advantage • Potential opportunities in Supplemental Health market • Launched CNO Financial Group investor brand on May 12 • Future focus: • Improve results of und
Slide 14: CNO Financial Group: the road ahead
CNO Financial Group: the road ahead • A turnaround story • Strategic separation of most of LTC run-off • Progress on improving profitability • Strategic focus on senior middle-market • Defined by our markets, not our products • Little competition in target segment • Attractive growth and profit pote
Slide 15: Questions and Answers
io CNO FINANCIAL GROUP Questions and Answers 44 »
Slide 16: Appendix
Appendix Certain Non-GAAP Financial Measures
Slide 17: 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 18: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures
Slide 19: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures Book value, excluding accumulated other comprehensive income, per share This non-GAAP financial measure differs from book value per share because accumulated other comprehensive income has been excluded from the book value used to determine
Slide 20: Slide 20
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