Slide 1: CNO to Sell Closed Block Life Insurance Subsidiary to Wilton Re
CNO to Sell Closed Block Life Insurance Subsidiary to Wilton Re March 3, 2014 Exhibit 99.2
Slide 2: Forward-Looking Statements
CNO Financial Group | OCB Solutions | March 3, 2014 2 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 operation
Slide 3: Non-GAAP Measures
CNO Financial Group | OCB Solutions | March 3, 2014 3 Non-GAAP Measures This presentation contains certain financial measures that differ from the comparable measures under Generally Accepted Accounting Principles (GAAP). Reconciliations between non-GAAP measures and the comparable GAAP measures are
Slide 4: Today's Announcements
CNO Financial Group | OCB Solutions | March 3, 2014 4 Today’s Announcements CNO announced the sale of Conseco Life Insurance Company (“CLIC”) to Wilton Reassurance Company (“Wilton Re”) The transaction is expected to result in net proceeds of approximately $237* million and encompasses ~$3.4 bil
Slide 5: Sale of CLIC – Strategic Rationale
CNO Financial Group | OCB Solutions | March 3, 2014 5 Sale of CLIC – Strategic Rationale An Economic Exit Favorable pro forma economic impact unlocking “trapped capital” for reinvestment Reduce “Beta” Reduces exposure to low-for-long rates and natural asset leverage Streamline & Simplify Reduces com
Slide 6: OCB Solutions For $4bn in Run-Off Reserves
CNO Financial Group | OCB Solutions | March 3, 2014 6 Annuities & Deposits $705** Interest- Sensitive Life $2,232 LTC $525* Traditional Life $424 Annuities & Deposits $788 Other Health $7 Interest- Sensitive Life $166 OCB Solutions For $4bn in Run-Off Reserves 12/31/13 OCB Net Statutory Reserves Ret
Slide 7: Sale of CLIC Subsidiary – Transaction Detail
CNO Financial Group | OCB Solutions | March 3, 2014 7 Sale of CLIC Subsidiary – Transaction Detail Washington National Insurance Company (WNIC) Sale & Transition Intercompany transactions to move A&H business out of CLIC to WNIC, increasing CLIC capital by $36mm Wilton Re purchases CLIC legal en
Slide 8: Pro Forma Estimates
CNO Financial Group | OCB Solutions | March 3, 2014 8 Pro Forma Estimates Financial Metric Pro Forma Estimates Purchase Price (1) $237mm Price to Statutory Capital & Surplus (1) 1.5x Estimated Increase to Holding Company Liquidity (2) $125mm Pro Forma GAAP Loss on Sale (3) $(303)mm Pro Forma GAAP Bo
Slide 9: OCB Solutions Reduce Capital-at-Risk
CNO Financial Group | OCB Solutions | March 3, 2014 9 OCB Solutions Reduce Capital-at-Risk OCB Reserve Margins: Thin aggregate Loss Recognition Testing and Cash Flow Testing margins for OCB ISL and LTC (~1%) ISL and LTC blocks ($2.8bn in reserves) have experienced loss recognition charges and ha
Slide 10: Capital Targets & Excess Capital Deployment
CNO Financial Group | OCB Solutions | March 3, 2014 10 Capital Targets & Excess Capital Deployment 2013 2014 Outlook (Revised) RBC 410% ~ 400% Liquidity $309mm ~ $434mm Leverage* 16.9% ~16% Investment-grade ratings dialed in while maintaining our tactical approach to deployment … 2014 Share Repurcha
Slide 11: CNO Moving Forward
CNO Financial Group | OCB Solutions | March 3, 2014 11 CNO Moving Forward Financial Strength – Transactions improve CNO’s overall financial profile, reinforce our investment grade capital position and drive a higher quality ROE Clears the Way for Accelerated Platform Investment – Transitions com
Slide 12: Questions
CNO Financial Group | OCB Solutions | March 3, 2014 12 Questions
Slide 13: Appendix
CNO Financial Group | OCB Solutions | March 3, 2014 13 Appendix
Slide 14: Additional information on non-GAAP measures
CNO Financial Group | OCB Solutions | March 3, 2014 14 The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amount
Slide 15: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | OCB Solutions | March 3, 2014 15 Information Related to Certain Non-GAAP Financial Measures 4Q13 Corporate notes payable 856.4$ Total shareholders' equity 4,955.2 Total capital 5,811.6$ orporate debt to capital 14.7% Corporate notes payable 856.4$ Total shareholders' equity 4,9
Slide 16: Pro forma net loss
CNO Financial Group | OCB Solutions | March 3, 2014 16 Pro forma net loss Loss on sale of CLIC: Cash proceeds received (a) 237$ Net assets sold (527)$ Subtotal (290)$ Reinsurance recapture: Amount paid by Bankers Life (28)$ Net assets received 29$ Subtotal 1$ Transaction expenses and other (9)$ Loss
Slide 17: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | OCB Solutions | March 3, 2014 17 Information Related to Certain Non-GAAP Financial Measures Pro forma impacts The following presents the pro forma impact on our operating earnings measures as if the sale of CLIC and the recapture of a traditional life block by Bankers Life had
Slide 18: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | OCB Solutions | March 3, 2014 18 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): Year ende