CNO Financial Group, Inc. · NYSE:CNO
CNO Financial — Investor Day (June 2014)
83 slides from CNO Financial's investor day presentation, Jun 26, 2014
Slide 1: 2014 CNO Investor Day
2014 CNO Investor Day June 26, 2014
Slide 2: Agenda
Agenda Time Topic Speaker 12:15 Introductions Erik Helding – SVP, Treasury & Investor Relations 12:20 CNO Video 12:25 Strategy – Opportunities in the Middle Ed Bonach – CEO Market 12:45 Investments in Business Growth & Scott Perry – Chief Business Officer Infrastructure Bruce Baude – Chief Operation
Slide 3: Forward-Looking Statements
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 operations and capital plans. We caution investors that these f
Slide 4: 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; operating return measures; earnings before the earnings of CLIC being sold, loss on reinsurance t
Slide 5: CNO Financial Group
o CNO FINANCIAL GROUP ¢cNO GROW&DELIVER >
Slide 6: Strategy: Opportunities in the Middle Market
Strategy: Opportunities in the Middle Market Ed Bonach - CEO 6
Slide 7: Ed Bonach – Chief Executive Officer
Ed Bonach – Chief Executive Officer Ed Bonach (60) was appointed chief executive officer and a director of CNO Financial Group effective October 1, 2011. Ed formerlyy served as executive vice p president and chief financial officer of CNO from May 2007 through September 2011. His areas of responsibi
Slide 8: CNO – Invested in Middle-Income America
CNO – Invested in Middle-Income America The Opportunity 65mm Households in the Middle-Income Market Large Middle market consumers comprise approximately 53% of the U.S. population – US Census Data and LIMRA 2014 Underserved & Unprepared Half those near and in retirement receive no ~30% professio
Slide 9: How to Succeed in the Middle-Market
How to Succeed in the Middle-Market Know Your Customer… 72% of middle-market consumers want to CNO takes a proactive approach to speak with professionals about at least one understanding our customers financial product or service - LIMRA Customer needs analysis and agent/customer relationships
Slide 10: Track Record of Execution
Track Record of Execution Growth Versus the Industry Above industry sales growth rates 5-Yr CAGR Individual Life Sales OCB transactions reduce exposure to higher risk business 10% Maintaining investment grade ratios while returning nearly $940mm in buybacks and dividends Reached targeted dividend pa
Slide 11: Capital Allocation Priorities
Capital Allocation Priorities Maintain capital p ratios that advance ratings g and defend our franchise Investing in the business model driving growth and efficiencies Continue securities repurchase when compelling compared to other alternatives Common stock dividends in line with earnings
Slide 12: Building on Momentum to Grow and Deliver
Building on Momentum to Grow and Deliver Build on investment in the business Focus on sustainable profitable growth g effectiveness Accelerate operating Tactically deploy excess capital Enhance the customer experience Invest in and develop talent Grow quality ROE CNO positioned as a st
Slide 13: Investments in Business Growth & Infrastructure
Investments in Business Growth & Infrastructure Scott Perry – Chief Business Officer Bruce Baude – Chief Operations and Technology Officer Scott Goldberg – President, Bankers Life Gerardo Monroy – President, Colonial Penn Barb Stewart – President, Washington National 13
Slide 14: Scott Perry – Chief Business Officer
Scott Perry – Chief Business Officer Scott Perry (51) is chief business officer of CNO Financial Group, Inc. Perry joined CNO's subsidiary Bankers Life and Casualty Company as a field vice president and went on to hold the titles of senior vice president of distribution, chief operating officer and
Slide 15: Bruce Baude – Chief Operations and Technology Officer
Bruce Baude – Chief Operations and Technology Officer Bruce Baude (49) was appointed EVP, Chief Operations and Technology Officer on July 23, 2012. In this role he provides strategic leadership over both CNO’s Operations and IT functions. Baude was previously chief operating officer at Univita Healt
Slide 16: Scott Goldberg – President, Bankers Life
Scott Goldberg – President, Bankers Life Scott Goldberg (43) is President of Bankers Life and Casualty Company. Goldberg began his career with CNO in 2004 as vice president of strategic planning. In 2007 2007, he joined Bankers as vice president of strategy and marketing marketing. In 2011, 2011 he
Slide 17: Barb Stewart – President, Washington National
Barb Stewart – President, Washington National Barb Stewart (56) was named president of Washington National in March 2013. She jjoined the company y in 2006 as vice president of strategy gy and business, responsible for strategic planning and business development, marketing, products, agent recruitin
Slide 18: Gerardo Monroy – President, Colonial Penn
Gerardo Monroy – President, Colonial Penn Gerardo Monroy (47) 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 g since 2008. Monroy began his career with CNO in 2001 as a vice pre
Slide 19: Investments in Growth and Infrastructure
Investments in Growth and Infrastructure 2014 Investment Breakdown Sales and Collected Premium Growth ($ millions) y Initiatives $45 - $55 million in Key NAP Collected Premium Customer Experience $600 NAP * $3,000 Agent and Brand Growth and Collected Premium* * Awareness Expansion $500 $2,500 New $4
Slide 20: Bankers Life Investments
Bankers Life Investments The Opportunity Key Initiatives Large, growing, underserved market Agent mobile tools and CRM ‒ Concerned about future ‒ Prefer face-to-face advice New commissions systems; upgrading branch infrastructure Multiple health & financial needs ‒ Cross-sales Location exp
Slide 21: Bankers Life Outlook
Bankers Life Outlook Key Drivers and Expected Results 2014 2014 2014-2016 Outlook Outlook Outlook Revised Growth in agent 2% - 5% 3% - 6% 3% - 6% productivity* Growth in average agent 2% - 4% Flat 1% - 3% force Net new locations 15 15 15-20 15 20 / Yr Growth in sales 6% - 8% 6% - 8% 6% - 10% Growth
Slide 22: Washington National Investments
Washington National Investments The Opportunity Key Initiatives Supplemental health -- increasing “One Source” technology platform need; largely untapped market Group product portfolio Expanding the worksite model to offer a private exchange, and PMA recruiting and geographic participate i
Slide 23: Washington National Outlook
Washington National Outlook Key Drivers and Expected Results 2014 Outlook 2014-2016 (unchanged) Outlook Growth in PMA agency force 8% -10% 8% - 10% Growth in sales* 7% - 9% 7% - 10% Growth in Worksite sales 7% - 9% 7% - 12% Growth in collected premium* 5% - 7% 5% - 7% Driving gggrowth o through oug
Slide 24: Colonial Penn Investments
Colonial Penn Investments The Opportunity Key Initiatives Growing direct market New term & whole life growth Evolving consumer preferences (Patriot Program) Web/digital strategy The Challenge Sales generation diversification Increased direct competition Telesales productivity TV adve
Slide 25: Colonial Penn Outlook
Colonial Penn Outlook Key Drivers and Expected Results 2014 2014 Outlook 2014-2016 Outlook Revised Outlook Marketing Cost to NAP 1 05 – 1.10 1.05 1 10 1 05 – 1.10 1.05 1 10 1 00 – 1.10 1.00 1 10 Inforce EBIT $45 - $50mm $45 - $50mm $45 - $55mm Growth in sales 6% - 9% 5% - 7% 5% - 10% Growth in colle
Slide 26: Technology and Operations – Identifying the Gap
Technology and Operations – Identifying the Gap How to Effectively Serve the The Current Challenge Middle-Income Market Highly efficient back office Diversity of platforms and data – Smaller dollar policies complexity as a result of legacy – Price sensitivity acquisitions q Streamlined and sca
Slide 27: Technology and Operations – Closing the Gap
Technology and Operations – Closing the Gap Current and future investments designed to improve cost structure, support growth and lead to a better customer experience Meaningful momentum has been established through fairly modest, run-rate investment to date – Per policy call volumes down over 10%
Slide 28: Investing in Alignment - The “Office of the Future”
Investing in Alignment - The “Office of the Future” Marketing & Agent Meetings & Illustrations & Customer Underwriting Prospecting Management Presentations Applications Service Calendar Books, Mailed Printed Lists, Laptop-based Monday Staff Paper Fact Keyed Communications, Where Manual Dialing, Quot
Slide 29: Business Investments
Business Investments Investments expected to yield annual sales growth of 8% - 10% by the end of 2016 29
Slide 30: Q&A
Q&A ¢cNO GROW&DELIVER <
Slide 31: Investments: Search for Risk-Adjusted Yields
Investments: Search for Risk-Adjusted Yields Eric Johnson – Chief Investment Officer and President 40|86 31
Slide 32: Eric Johnson – Chief Investment Officer and President, 40|86 Advisors
Eric Johnson – Chief Investment Officer and President, 40|86 0|86 Advisors Eric Johnson (53) has been the President of 40|86 Advisors (CNO’s registered investment adviser subsidiary) for 9 years. He has more than 20 years of financial markets and investment experience, beginning with a predecessor b
Slide 33: Investment Strategy Tied to Enterprise Needs
Investment Strategy Tied to Enterprise Needs Internal core competencies for mainstream asset classes, supplemented with third party talent for more specialized allocations Active strategic asset allocation process Post crisis allocation shifts have focused on income and book yield but not excl
Slide 34: Actively Balanced Portfolio
Actively Balanced Portfolio (March, 31, 2014 GAAP Book Value, $ millions) HY Corporates $1,312 5.3% Agency CMO $442 Average Rating: BBB+ Non-Agency 1.8% RMBS $2,129 ABS 8.5% $335 1.3% Diversified Di ifi d by b risk i k ffactors t IG Corporates $13,491 CMBS 54.0% $1,589 6.4% US Government & Agenc
Slide 35: Maintaining Stable Key Portfolio Risk Metrics
Maintaining Stable Key Portfolio Risk Metrics NAIC 2009 2010 2011 2012 2013 1 52.79% 51.08% 48.75% 46.86% 46.73% 2 40.58% 42.46% 45.84% 47.67% 46.96% 3 4 48% 4.48% 4 77% 4.77% 4 03% 4.03% 3 93% 3.93% 4 81% 4.81% 4-6 2.15% 1.68% 1.38% 1.55% 1.50% 100.00% 100.00% 100.00% 100.00% 100.00% IG (1&2) 93.37
Slide 36: Strong Credit Performance with Low Impairment Trend
Strong Credit Performance with Low Impairment Trend ($ millions) 2008 2009 2010 2011 2012 2013 $195.4 $162.3 $ $149.8 $34.6 $37 8 $37.8 $11.6 Impairments I i t 0.81% 0.97% 0.66% 0.14% 0.14% 0.04% % of Invested Assets 36
Slide 37: Consistently Improving Pattern of Gains and Losses
Consistently Improving Pattern of Gains and Losses ($ millions) $383 $383.1 1 $352.1 $189.6 $138.9 $110.3 $64.8 ($31.4) ($57 8) ($57.8) ($127.8) ($321.9) $ Gross Realized Gains ($372.7) Gross Realized Losses and Impairments ($443.6) 2008 2009 2010 2011 2012 2013 37
Slide 38: Successfully Maintained Portfolio Yield Despite Low Market Rates
Successfully Maintained Portfolio Yield Despite Low Market Rates 8.0% 7 0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% GAAP New Money Rate 1.0% Portfolio Earned Yield 10 Year UST 0.0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Actions to maintain portfolio yield consistent with boundaries for risk 38
Slide 39: Our View of the Landscape
Our View of the Landscape Persistent low rates Our capital position allows Tactical flexibility in risk taking Supply/demand dynamic in Strategies various credit markets We have a portfolio with Up in quality - solid credit performance Declining market liquidity down in structure We ha
Slide 40: Tactical Views
Tactical Views CRE Loans, recent vintage CMBS – Constructive outlook supported by capital flows, strengthening labor markets, and housing formation trends. Municipals – Fundamentals generally favorable including tax collection, budget and ratings trends in most segments. Limited event risk. Es
Slide 41: Modest Layering Into Alternatives
Modest Layering Into Alternatives ($ millions) $232 Hedge fund and private equity exposures diversified di ifi d b by market k t $195 factors Diversified pro-cyclical strategic (vs. tactical) t ti l) exposure tot equityit markets k t Private Equity Hedge Fund $111 At 0.86% of invested assets,
Slide 42: Balanced Holding Company Investment Strategy
Balanced Holding Company Investment Strategy (March 31, 2014 Market Value, $ millions) • $103mm invested in Exchange Traded • $85mm invested in cash equivalents Funds • 2013 Investment Income: $0.2mm • 2013 Dividends: $1.3mm • 2013 Return: 0.20% • 2013 Return: 31.46% Equity $103 Corporate Liquidity
Slide 43: Solid ALM Discipline is Part of our Investing Process
Solid ALM Discipline is Part of our Investing Process 7.0% 12.0 6.5% 11.0 6.0% 10.0 5.5% 9.0 Years Yield 5.0% 8.0 4.5% 7.0 4.0% 6.0 3.5% 5.0 3.0% 4.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 New Money Rate
Slide 44: Key Takeaways on Investments
Key Takeaways on Investments We have a clear and transparent approach We are maintaining our portfolio yield Credit performance has been strong Stringent asset liability standards 44
Slide 45: Q&A
Q&A ¢cNO GROW&DELIVER «
Slide 46: Managing Our Long-Term Care Business
Managing Our Long-Term Care Business Chris Nickele – EVP, EVP Product Management Tim Bischof – SVP, Corporate Actuary & ERM Loretta Jacobs – VP, LTC 46
Slide 47: Chris Nickele – EVP, Product Management
Chris Nickele – EVP, Product Management Chris Nickele ((57)) jjoined CNO in October 2005 as executive vice ppresident,, p product management, and was named additionally to head a new business segment - Other CNO Business - in April 2010. Nickele is responsible for the development, pricing and manage
Slide 48: Tim Bischof – SVP, Corporate Actuary & ERM
Tim Bischof – SVP, Corporate Actuary & ERM Tim Bischof (42) was named Senior Vice President, Corporate Actuary & Enterprise Risk Management for CNO Financial Group, Group Inc., Inc on January 7 7, 2013 2013. Bischof joined CNO in 2001, and has steadily progressed through a wide variety of actuarial
Slide 49: Loretta Jacobs – VP, LTC
Loretta Jacobs – VP, LTC Loretta Jacobs (49) joined Bankers Life in May 2013 as Vice-President of the company’s Long Term Care (LTC) business. In this role, she directly oversees the LTC claims and policyholder service departments and partners with product and valuation actuaries. JJacobs b jjoined
Slide 50: Panel Session - LTC Working Group
Panel Session - LTC Working Group Improving the Health of LTC Product Management & Pricing Focused Expertise Product Management & Pricing Tactical rate actions Pro-active product mix shift LTC Enterprise Actuarial Working Operational Management Risk Valuation Group Management Policyholder well
Slide 51: LTC – Action Oriented Risk Management
LTC – Action Oriented Risk Management 1st Through 3rd Quota Share 4th Round of Rounds of Rate Reinsurance with RGA Rate Actions LTC Business Unit Actions Formalized LTC Developed Established Partnership Working Group with LTCG 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Divestiture of SHIP to
Slide 52: Driving Toward Improved Risk Profile
Driving Toward Improved Risk Profile 7X Reserve Pattern per $1 of Issued Premium Net GAAP LTC Inforce Liabilities 6X STC HHC 5X LTC Non-Inflation LTC LTC- LTC 5% Inflation LTC - Non- 4X Inflation Inflation 3X 2X Home Health 1X Care Short- Term 0 5 10 15 20 25 30 35 40 45 Care Current reserve levels
Slide 53: Improving LTC Claims Trends
Improving LTC Claims Trends Focus on claims lifecycle to improve LTC performance… Pre-Claim Upon p Claim g the During P li h ld Policyholder Initiation Claim Wellness Both targeted and Expanded p claims intake Enhanced a ced ca care e broad based to promote earlier management to promote report
Slide 54: LTC - Financial Analysis & Sensitivity Testing
LTC - Financial Analysis & Sensitivity Testing Loss Recognition and Future Loss Reserves (FLR) Testing GAAP Adequate margins for 2013 FLR accrual continue Asset Adequacy Testing and Premium Deficiency Statutory Adequate margins for 2013 Standalone testing remains positive GAAP and Statutory
Slide 55: LTC – “Low-For-Long” Rate Stress Tests
LTC – “Low-For-Long” Rate Stress Tests From a reserve perspective, low-rate risk is concentrated with LTC.... New Money Rate Assumptions E Expanded d dNNew M Money R Rate t (NMR) 7.50% Stress Tests 7.00% Mild : NMR held flat for 5 years then 6.50% recovering over 4 additional years 6.00% Moderat
Slide 56: LTC – “Low-For-Long” Rates Sensitivity
LTC – “Low-For-Long” Rates Sensitivity ($ millions) Observations Net GAAP Earnings Impact Reserve and capital p impacts p $50.0 emerge under severe scenario as $45.0 margins are exhausted $40.0 LR Write-off of Intangibles $35.0 Mild and Moderate Scenarios: $ $30.0 ‒ No material impact for GAAP o
Slide 57: LTC - Important Takeaways
LTC - Important Takeaways A Comprehensive Strategy Rate actions when supported by adverse experience Actively engaged with the reinsurance community Mix of new business drives a better risk profile in time Several initiatives to improve care and “bend the claims curve” Capital ratios diale
Slide 58: Q&A
Q&A ¢cNO GROW&DELIVER «
Slide 59: A Look Inside Our Financial Plan “Building on the Momentum”
A Look Inside Our Financial Plan “B ildi on th “Building the M Momentum” t ” Fred Crawford - CFO 59
Slide 60: Fred Crawford – Chief Financial Officer
Fred Crawford – Chief Financial Officer Fred Crawford (50) was named executive vice president and chief financial officer for CNO Financial Group, Inc., effective January 2012. Crawford formerly served as executive vice president and head of Corporate Development and Investments for Lincoln Financia
Slide 61: CNO’s Financial Plan Foundation
CNO’s Financial Plan Foundation Key Underpinnings Driving D i i Growth G th & Maintaining M i t i i Diversity Di it ‒ Accelerating growth investments Capital Planning ‒ Active In-force management Disciplined Capital Management ‒ Lowering our cost of capital Key Earnings Drivers ‒ Driving towards
Slide 62: Earnings Outlook – Plan Expectations
Earnings Outlook – Plan Expectations Operating EPS Excluding Significant Items* $1.60 Plan Drivers 14-17% $1 40 $1.40 CAGR $1.20 Favorable health benefit ratios $1.02 Stable annuity persistency & spreads $1.00 $0.79 Excess capital deployed for repurchase $0 80 $0.80 Strong capital & continue
Slide 63: Capital Targets and Recapitalization
Capital Targets and Recapitalization Key Capital & Liquidity Metrics Plan Trajectory Leverage reduced to ~15% by 2016 25% 425% Holdco. liquidity spent down to ~ $200mm Target Range Consolidated RBC of ~ 420% 20% Excess capital p defined by y “debt capacity” p y 400% 15% Recapitalization Cons
Slide 64: Ratings Activity Since 2012 – Clear Momentum
Ratings Activity Since 2012 – Clear Momentum Debt Ratings BBB Fitch BBB- Fitch S&P Moody’s 5/2/14 BB+ 3/12/13 7/24/13 3/27/14 Fitch tc Moody’s oody s BB 2/3/12 8/29/12 BB- B+ S&P Fitch S&P B 5/3/13 Moody's 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Significant Progress Path to Inves
Slide 65: 2014 Excess Capital & Deployment Plans
2014 Excess Capital & Deployment Plans Investment-grade ratings dialed-in while maintaining our tactical approach to deployment … 1Q 2014 2014 Outlook (Revised) Repurchased ~$135 million RBC 427% ~ 415% Year-to-Date Liquidity $306mm ~ $400mm* Leverage** 17.6% ~17% Securities Repurchase Guidance 2014
Slide 66: Tax Assets & Economic Value
Tax Assets & Economic Value Projected Utilization of Tax Assets ($ billions) $1.2 $1.0 $0.8 Valuation Allowance on Non-life NOL $0.6 GAAP Value (not discounted) Economic Value (discounted at 10%) $0.4 $0 2 $0.2 $- 2013 2016 Observations 2013 was an active tax planning year and generated nearly $10
Slide 67: Risk Reduction & Operating Effectiveness
Risk Reduction & Operating Effectiveness In-Force Policies Series of transactions have led to a reduction of ~$10bn $ in 4.4mm volatile reserves and nearly MS & Other 25% 800,000 complex policies 16% LTC 3.3mm 12% Cost Structure Opportunity MS & Other Supp Health 12% 12% LTC v Annuity 9% Reduced “
Slide 68: ROE Target & Catalysts Driving Valuation
ROE Target & Catalysts Driving Valuation Organic ROE Build Valuation Catalysts ROE C Capacityit – 11.0% (3) Recapitalization Recapitalization “The Sequel” 10% ‒ Leveraged recap adds 75 -100 bps (2) ‒ Logical timing – bond call date (1) 8.8% 7.6% (1) 7.0% Back-Office Transformation ‒ Planning sta
Slide 69: Q&A
Q&A ¢cNO GROW&DELIVER «<
Slide 70: Closing Statements
Cl i St Closing Statements t t Ed Bonach - CEO 70
Slide 71: Building on Momentum to Grow and Deliver
Building on Momentum to Grow and Deliver Build on investment in the business Focus on sustainable profitable growth g effectiveness Accelerate operating Tactically deploy excess capital Enhance the customer experience Invest in and develop talent Grow quality ROE CNO positioned as a st
Slide 72: Why CNO?
Why CNO? Significant opportunity in the middle market Well positioned to capitalize on the opportunity with our unique business model Investing in the business model to continue to drive above industry sales growth and improved efficiencies Catalysts driving future valuation are compelling
Slide 73: Appendix
Appendix ¢cNO GROW&DELIVER %
Slide 74: 2012 Significant Items
2012 Significant Items CNO Th ttable The bl bbelow l summarizes i th the fi financial i l iimpactt off significant i ifi t items it on our 2012 nett operating ti income. i Management M t believes b li th thatt identifying the impact of these items enhances the understanding of our operating results
Slide 75: 2013 Significant Items
2013 Significant Items CNO Th ttable The bl bbelow l summarizes i th the fi financial i l iimpactt off significant i ifi t items it on our 2013 nett operating ti income. i Management M t believes b li th thatt identifying the impact of these items enhances the understanding of our operating results
Slide 76: 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 77: 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): 2012 2013 Net income applicable to common stock $ 221.0 $ 478.0
Slide 78: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures A reconciliation of operating income and shares used to calculate basic and diluted operating earnings per share is as follows (dollars in millions, except per-share amounts, and shares in thousands): 2012 2013 Operating income $ 206.9 $ 248
Slide 79: 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 net income applicable to common stock before the earnings of CLIC being sold, loss on reinsurance transaction, net realized gains or losses, fair value changes due to fluctuat
Slide 80: Information Related to Certain Non-GAAP Financial Measures
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); (ii) operating return, excluding significant items, on equity,
Slide 81: Information Related to Certain Non-GAAP Financial Measures
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 shareholders’ equity, is as follows (dollars in millions): 4Q11 1
Slide 82: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures Pro forma operating return on equity The pro forma operating return, excluding significant items, on equity, excluding accumulated other comprehensive income and net operating loss carryforwards are calculated as if the sale of CLIC and the
Slide 83: Information Related to Certain Non-GAAP Financial Measures
Information Related to Certain Non-GAAP Financial Measures Debt to capital p ratio, excluding g accumulated other comprehensive p income ((loss)) The debt to capital ratio, excluding accumulated other comprehensive income (loss), differs from the debt to capital ratio because accumulated other compr