cno-20220208
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 8, 2022

CNO Financial Group, Inc.
(Exact Name of Registrant as Specified in Charter)
 
Delaware001-3179275-3108137
(State or Other
Jurisdiction of Incorporation)		(Commission File Number)(I.R.S. Employer
Identification No.)
11825 North Pennsylvania Street
Carmel, Indiana  46032
(Address of Principal Executive Offices) (Zip Code)

(317) 817-6100
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareCNONew York Stock Exchange
Rights to purchase Series E Junior Participating Preferred StockNew York Stock Exchange
5.125% Subordinated Debentures due 2060CNOpANew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.Results of Operations and Financial Condition.

On February 8, 2022, CNO Financial Group, Inc. ("CNO" or the "Company") issued: (i) a press release announcing its financial results for the quarter ended December 31, 2021, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference; (ii) the Quarterly Financial Supplement for December 31, 2021, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference; and (iii) additional financial information related to its financial and operating results for the quarter ended December 31, 2021, a copy of which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

The information contained under Item 2.02 in this Current Report on Form 8-K (including Exhibits 99.1, 99.2 and 99.3) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.


Item 8.01.Other Events.

In August 2018, the Financial Accounting Standards Board (the "FASB") issued authoritative guidance that makes targeted improvements to the accounting for long-duration contracts. The new guidance: (i) improves the timeliness of recognizing changes in the liability for future benefits and modifies the rate used to discount future cash flows; (ii) simplifies and improves the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts; (iii) simplifies the amortization of deferred acquisition costs; and (iv) requires enhanced disclosures, including disaggregated rollforwards of the liability for future policy benefits, policyholder account liabilities, market risk benefits and deferred acquisition costs. Additionally, qualitative and quantitative information about expected cash flows, estimates and assumptions will be required. The new measurement guidance for traditional and limited-payment contract liabilities and the new guidance for the amortization of deferred acquisition costs are required to be adopted on a modified retrospective transition approach, with an option to elect a full retrospective transition if certain criteria are met. The transition approach for deferred acquisition costs is required to be consistent with the transition applied to the liability for future policyholder benefits. Under the modified retrospective approach, for contracts in-force at the transition date, an entity would continue to use the existing locked-in investment yield interest rate assumption to calculate the net premium ratio, rather than the upper-medium grade fixed-income corporate instrument yield. However, for balance sheet remeasurement purposes, the current upper-medium grade fixed-income corporate instrument yield would be used at transition through accumulated other comprehensive income and subsequently through other comprehensive income. For market risk benefits, retrospective application is required, with the ability to use hindsight to measure fair value components to the extent assumptions in a prior period are unobservable or otherwise unavailable. In November 2020, the FASB issued authoritative guidance which delayed the effective date of this guidance for the Company by one year (until January 1, 2023).

We will not early adopt the updated standard and have selected the modified retrospective transition method, except for market risk benefits where we are required to use the full retrospective approach.
We expect the adoption of this standard will have a material impact on our consolidated financial statements and disclosures. We expect that the most significant impact on the January 1, 2021 transition date (the "Transition Date") will be the requirement to update the discount rate assumption used to determine the value of the liability for future policy benefits to the upper-medium grade fixed-income corporate instrument yield matched to the duration of our liabilities. We expect such requirement to result in a material decrease to accumulated other comprehensive income ("AOCI") within our total shareholders' equity balance. After the Transition Date, we will be required to update the discount rate each reporting period with changes recorded in AOCI and expect that this change could, from time to time, have a material impact on AOCI. We also expect the adoption of this standard to change the pattern of future profit emergence following the Transition Date.


2



Item 9.01(d).Financial Statements and Exhibits.

The following materials are furnished as exhibits to this Current Report on Form 8-K:
99.1
99.2
99.3
104Cover Page Interactive Data File (embedded within the Inline XBRL document).





3



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CNO Financial Group, Inc.
Date: February 8, 2022
By:/s/ John R. Kline
John R. Kline
Senior Vice President and
Chief Accounting Officer




4

Exhibit 99.1

cnologopra.jpg                            News

For Immediate Release

CNO Financial Group Reports Fourth Quarter and Full Year 2021 Results
Strong fourth quarter and full year results; double-digit EPS growth; record 2021 share repurchases

Carmel, Ind., February 8, 2022 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended December 31, 2021, net income was $115.8 million, or $0.93 per diluted share, compared to net income of $111.8 million, or $0.80 per diluted share, in 4Q20. Net operating income (1) in 4Q21 was $108.5 million, or $0.87 per diluted share, compared to $86.0 million, or $0.61 per diluted share, in 4Q20.
Net income for the year ended December 31, 2021 was $441.0 million, or $3.36 per diluted share, compared to $301.8 million, or $2.11 per diluted share, in 2020. Net operating income (1) for the year ended December 31, 2021 was $365.6 million, or $2.79 per diluted share, compared to $362.3 million, or $2.53 per diluted share, in 2020.
"Solid fourth quarter results capped off another strong year, demonstrating CNO's continued agility navigating the pandemic and the successful execution of our strategic priorities," said Gary C. Bhojwani, chief executive officer. "While visibility into COVID's ongoing impact on our business remains unclear, the dedication of our associates and agents and the strength of our model will enable us to continue to drive value for all of the constituents we serve."
Full Year 2021 Highlights
•Earnings per diluted share of $3.36, up 59% compared to 2020
•Operating (1) EPS of $2.79, up 10% from 2020
•Total new annualized premiums (NAP) (4) up 9% from 2020
•Direct-to-consumer life insurance NAP (4) up 16% from 2020, exceeding $100 million for first time, up 40% from 2019
•Annuity collected premiums up 20% from 2020
•Returned $468.1 million to shareholders in the form of share repurchases (a record $402.4 million) and dividends ($65.7 million)
•Return on equity (ROE) of 8.5%; operating ROE, as adjusted (6), of 12.1%
Fourth Quarter 2021 Highlights
•Earnings per diluted share of $0.93 in 4Q21, up 16% compared to 4Q20
•Operating (1) EPS of $0.87 in 4Q21, up 43% compared to 4Q20
•Total NAP (4) up 2% from 4Q20
•Direct-to-consumer life insurance NAP (4) up 21% from 4Q20
•Annuity collected premiums up 15% from 4Q20
•Returned $115.7 million to shareholders in the form of share repurchases ($100.0 million) and dividends ($15.7 million); reduced weighted average share count by 11% since 4Q20
•Book value per share was $43.69, up 8% from 4Q20; book value per diluted share, excluding accumulated other comprehensive income (2), was $26.86, up 12% from 4Q20




FINANCIAL SUMMARY
Quarter End
(Amounts in millions, except per share data)
(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.
Per diluted share
Quarter endedQuarter ended
December 31,December 31,
20212020% change20212020% change
Income from insurance products (b)
$0.89 $0.48 85 $110.5 $67.9 63 
Fee income0.02 0.02 — 2.9 2.9 — 
Investment income not allocated to product lines (c)
0.34 0.41 (17)42.8 57.8 (26)
Expenses not allocated to product lines(0.14)(0.12)17 (17.4)(17.8)(2)
Operating earnings before taxes1.11 0.79 138.8 110.8 
Income tax expense on operating income(0.24)(0.18)33 (30.3)(24.8)22 
Net operating income (1)0.87 0.61 43 108.5 86.0 26 
Net realized investment gains from sales, impairments and change in allowance for credit losses (net of related amortization)0.04 0.09 4.7 12.6 
Net change in market value of investments recognized in earnings(0.10)0.04 (12.1)6.0 
Fair value changes in embedded derivative liabilities (net of related amortization)0.15 0.12 19.1 16.3 
Other(0.02)(0.01)(2.4)(2.2)
Non-operating income before taxes0.07 0.24 9.3 32.7 
Income tax expense on non-operating income(0.01)(0.05)(2.0)(6.9)
Net non-operating income0.06 0.19 7.3 25.8 
Net income$0.93 $0.80 $115.8 $111.8 
Weighted average diluted shares outstanding125.0 140.4 


2

FINANCIAL SUMMARY
Year End
(Amounts in millions, except per share data)
(Unaudited)

Per diluted share
Year endedYear ended
December 31,December 31,
20212020% change20212020% change
Income from insurance products (b)
$2.65 $2.54 4 $347.2 $363.8 (5)
Fee income0.15 0.11 36 19.4 16.7 16 
Investment income not allocated to product lines (c)
1.41 1.17 21 184.5 167.1 10 
Expenses not allocated to product lines(0.62)(0.58)7 (80.5)(83.8)(4)
Operating earnings before taxes3.59 3.24 470.6 463.8 
Income tax expense on operating income(0.80)(0.71)13 (105.0)(101.5)3 
Net operating income (1)2.79 2.53 10 365.6 362.3 1 
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization)0.27 (0.22)34.8 (31.1)
Net change in market value of investments recognized in earnings(0.13)(0.02)(17.4)(2.7)
Fair value changes in embedded derivative liabilities (net of related amortization)0.51 (0.55)67.2 (79.1)
Other0.09 (0.04)12.5 (6.6)
Non-operating income (loss) before taxes0.74 (0.83)97.1 (119.5)
Income tax (expense) benefit on non-operating income(0.17)0.17 (21.7)25.0 
Valuation allowance for deferred tax assets and other tax items— 0.24 — 34.0 
Net non-operating income (loss)0.57 (0.42)75.4 (60.5)
Net income$3.36 $2.11 $441.0 $301.8 
Weighted average diluted shares outstanding131.1 143.2 

(a)    GAAP is defined as accounting principles generally accepted in the United States of America.
(b)    Income from insurance products is the sum of the insurance margins of the annuity, health and life segments, less allocated insurance administrative expenses. It excludes the fee income segment, excess investment income, parent company expenses and income taxes. Insurance margin is management’s measure of the profitability of its annuity, health and life segments’ performance and consists of premiums plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs.
(c)    Investment income not allocated to product lines is defined as net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable and investment borrowings; and (iv) certain expenses related to benefit plans that are offset by special-purpose investment income.

3

FINANCIAL SUMMARY (continued)
Management vs. GAAP Measures
(Dollars in millions, except per share data)
(Unaudited)

Shareholders’ equity, excluding accumulated other comprehensive income, and book value per share, excluding accumulated other comprehensive income, are non-GAAP measures that are utilized by management to view the business without the effect of accumulated other comprehensive income which is primarily attributable to fluctuations in interest rates associated with fixed maturities, available for sale. Management views the business in this manner because the Company has the ability and generally, the intent, to hold investments to maturity and meaningful trends can be more easily identified without the fluctuations. In addition, shareholders' equity excludes net operating loss carryforwards in our non-GAAP return on equity measures as such assets are not discounted and, accordingly, will not provide a return to shareholders until after it is realized as a reduction to taxes that would otherwise be paid. Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns.
______________________________________________________________________________________________________
Quarter ended
December 31,
20212020
Trailing twelve months return on equity (a)
8.5 %6.5 %
Trailing twelve months operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) (6)12.1 %12.9 %
Trailing twelve months operating return, excluding significant items, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) (6)11.8 %12.0 %
Shareholders’ equity$5,259.7 $5,484.2 
Accumulated other comprehensive income(1,947.1)(2,186.1)
Shareholders’ equity, excluding accumulated other comprehensive income3,312.6 3,298.1 
Net operating loss carryforwards(243.7)(341.9)
Shareholders' equity, excluding accumulated other comprehensive income and net operating loss carryforwards$3,068.9 $2,956.2 
Book value per diluted share$42.65 $39.82 
Accumulated other comprehensive income(15.79)(15.87)
Book value per diluted share, excluding accumulated other comprehensive income (a non-GAAP financial measure) (2)$26.86 $23.95 

(a) Calculated using average shareholders’ equity for the measurement period.

4

INSURANCE OPERATIONS


Annuity products accounted for 37 percent of the Company’s margin for the quarter.

Annuity premiums collected increased 15 percent and annuity account values increased 7 percent in 4Q21 compared to 4Q20.

Health products accounted for 51 percent of the Company’s insurance margin for the quarter and 66 percent of insurance policy income.

Life products accounted for 12 percent of the Company’s insurance margin for the quarter and 33 percent of insurance policy income.

Sales of health products were down 3 percent and sales of life products were up 7 percent in 4Q21 compared to 4Q20.

ANNUITY COLLECTED PREMIUMS
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20212020% change
Annuity collected premiums$397.4 $345.0 15 


INSURANCE POLICY INCOME
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20212020% change
Annuity$4.1 $4.4 (7)
Health415.2 422.6 (2)
Life210.6 202.0 4 
Total insurance policy income$629.9 $629.0 — 


SALES MEASURED AS NEW ANNUALIZED PREMIUMS FOR
LIFE AND HEALTH PRODUCTS
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20212020% change
Health$47.7 $49.1 (3)
Life39.8 37.1 7 
Total new annualized premiums (4)$87.5 $86.2 2 


5

INSURANCE MARGIN
(Amounts in millions, except per share data)
(Unaudited)


Insurance margin is management’s measure of profitability of its annuity, health and life segments’ performance and consists of premiums plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs. Income from insurance products is the sum of the insurance margins of the annuity, health and life segments, less allocated insurance administrative expenses. It excludes the fee income segment, investment income not allocated to product lines, expenses not allocated to product lines and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of our operations. Insurance income, a non-GAAP measure, is a component of net operating income, which is reconciled to net income in the Financial Summary section above.
Quarter ended
December 31,
2021		% of insurance policy incomeDecember 31,
2020		% of insurance policy income% change
Margin
Annuity interest margin$93.9 $68.1 38 
Life insurance interest margin1.3 0.4 225 
Total interest-sensitive margin95.2 68.5 39 
Insurance margin
Health129.5 31 125.2 30 3 
Life (a)29.1 14 36.9 18 (21)
Total other insurance margin158.6 25 162.1 26 (2)
Total insurance margin253.8 230.6 
Allocated expenses(143.3)(162.7)
Income from insurance products$110.5 $67.9 
Per diluted share$0.89 $0.48 
Weighted average diluted shares125.0 140.4 


(a)    Net of $21.8 million and $15.6 million of non-deferred television advertising expense related to our direct distribution channel in the 2021 and 2020 periods, respectively.
    

Total allocated expenses were $143.3 million, down 12 percent from the year-ago quarter.

Total insurance margins were favorably impacted by $25.9 million and $11.8 million in the quarters ended December 31, 2021 and 2020, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 21 for summaries of the impacts of significant items.

In addition, total insurance margins were favorably impacted by approximately $16 million and $19 million in the quarters ended December 31, 2021 and 2020, respectively, due to the estimated impacts of COVID-19.




6

ANNUITY RESULTS BY PRODUCT TYPE
(Dollars in millions)
(Unaudited)
Annuity margin
Quarter ended
December 31,
20212020
Fixed index annuities$77.4 $58.1 
Fixed interest annuities10.1 8.5 
Other annuities6.4 1.5 
Total$93.9 $68.1 

Annuity collected premiums
Quarter ended
December 31,
20212020
Annuity collected premiums$397.4 $345.0 

Average net insurance liabilities (5)
Quarter ended
December 31,
20212020
Fixed index annuities$8,096.7 $7,342.1 
Fixed interest annuities1,813.3 2,000.1 
Other annuities495.8 517.9 
Total$10,405.8 $9,860.1 

Margin/average net insurance liabilities (a)
Quarter ended
December 31,
20212020
Fixed index annuities3.82 %3.17 %
Fixed interest annuities2.23 %1.70 %
Other annuities5.16 %1.16 %
Total3.61 %2.76 %

(a)    Defined as annualized quarterly annuity margin divided by average net insurance liabilities (5).

Total annuity margins were favorably impacted by $26.9 million and $16.1 million in the quarters ended December 31, 2021 and 2020, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 21 for summaries of the impacts of significant items.

In addition, total annuity margins were favorably (unfavorably) impacted by approximately $1 million and $(1) million in the quarters ended December 31, 2021 and 2020, respectively, due to the estimated impacts of COVID-19.
7

HEALTH INSURANCE RESULTS BY PRODUCT TYPE
(Dollars in millions)
(Unaudited)

Health margin
Quarter ended
December 31,
20212020
Amount% of insurance policy incomeAmount% of insurance policy income% change
Supplemental health and other health$54.0 31 $53.0 31 2 
Medicare supplement42.8 24 43.3 23 (1)
Long-term care32.7 49 28.9 44 13 
Total$129.5 31 $125.2 30 3 


Health insurance policy income
Quarter ended
December 31,
20212020% change
Supplemental health and other health$172.8 $170.6 1 
Medicare supplement176.0 186.0 (5)
Long-term care66.4 66.0 1 
Total$415.2 $422.6 (2)

Health NAP (4)
Quarter ended
December 31,
20212020% change
Supplemental health and other health$28.1 $29.7 (5)
Medicare supplement9.1 12.2 (25)
Long-term care10.5 7.2 46 
Total$47.7 $49.1 (3)

Total health margins were favorably impacted by approximately $35 million in each of the quarters ended December 31, 2021 and 2020, due to the estimated impacts of COVID-19.
8

LIFE INSURANCE RESULTS BY PRODUCT TYPE
(Dollars in millions)
(Unaudited)
Life margin
Quarter ended
December 31,
20212020
Amount% of insurance policy incomeAmount% of insurance policy income% change
Life insurance interest margin$1.3 $0.4 225 
Life insurance margin:
Traditional life15.7 9 26.8 17 (41)
Interest sensitive life13.4 31 10.1 25 33 
Subtotal29.1 14 36.9 18 (21)
Total margin$30.4 $37.3 (18)

Life insurance policy income
Quarter ended
December 31,
20212020% change
Traditional life$168.0 $161.6 4 
Interest sensitive life42.6 40.4 5 
Total$210.6 $202.0 4 

Life NAP (4)
Quarter ended
December 31,
20212020% change
Traditional life$31.2 $29.8 5 
Interest sensitive life8.6 7.3 18 
Total$39.8 $37.1 7 

Average net insurance liabilities (5) and interest margin
Quarter ended
December 31,
20212020% change
Interest sensitive life products$996.9 $939.9 6 
Interest margin/average net insurance liabilities (5)0.52 %0.17 %206 


Total life margins were unfavorably impacted by $1.0 million and $4.3 million in the quarters ended December 31, 2021 and 2020, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 21 for summaries of the impact of significant items.

In addition, total life margins were unfavorably impacted by approximately $20 million and $15 million in the quarters ended December 31, 2021 and 2020, respectively, due to the estimated impacts of COVID-19.



9

QUARTERLY AVERAGE EXCLUSIVE PRODUCING AGENTS

Average Exclusive Producing Agent Count
Quarter ended
December 31,%
20212020change
Consumer
Field agents (a) (c)4,008 4,539 (12)
Tele-sales agents220 257 (14)
Total agents4,228 4,796 (12)
Registered agents (b) (c)655 641 2 
Worksite (a) (c)
227 255 (11)
____________________
(a) Producing agents represent the monthly average of exclusive agents that have submitted at least one policy in the month.
(b) Registered agents are dually licensed as insurance agents and financial representatives who can buy and sell
securities for clients, and/or investment advisors who can provide ongoing investment advice for clients.
(c) Agent counts represent the average of the last 3 months.


INVESTMENTS
INVESTMENT INCOME NOT ALLOCATED TO PRODUCT LINES
(Dollars in millions, except per share data)

Management uses investment income not allocated to product lines as the measure to evaluate the performance of the investment segment. It is defined as net investment income less the investment income allocated to our product segments and interest expense on debt. We also view investment income not allocated to product lines per diluted share as an important and useful measure to evaluate performance of the investment segment as it takes into consideration our share repurchase program.

Quarter ended December 31,
20212020% change
Net investment income$395.1 $390.6 1 
Allocated to product lines:
Annuity(116.3)(115.5)1 
Health(72.4)(70.9)2 
Life(36.4)(35.4)3 
Equity returns credited to policyholder account balances(94.0)(77.6)21 
Amounts allocated to product lines and credited to policyholder account balances(319.1)(299.4)7 
Amount related to variable interest entities and other non-operating items(7.6)(8.2)(7)
Interest expense on corporate debt(15.7)(14.4)9 
Interest expense on investment borrowings from the Federal Home Loan Bank program(2.3)(2.9)(21)
Expenses related to funding agreement-backed note program(2.3)— n/m
Less amounts credited to deferred compensation plans (offsetting investment income)(5.3)(7.9)(33)
Total adjustments(33.2)(33.4)
Investment income not allocated to product lines$42.8 $57.8 (26)
Per diluted share$0.34 $0.41 


10

INVESTMENT PORTFOLIO
(Dollars in millions)

The composition of the investment portfolio at December 31, 2021 is as follows:
$% of total
Fixed maturities, available for sale, at fair value$24,805.4 86 
Equity securities at fair value131.1 1 
Mortgage loans1,218.6 4 
Policy loans120.2 — 
Trading securities227.2 1 
Investments held by variable interest entities1,199.6 4 
Other invested assets1,224.0 4 
Total investment portfolio$28,926.1 100 

Fixed maturities, available for sale, at amortized cost by asset class as of December 31, 2021 are as follows:
Investment gradeBelow investment gradeTotal
Corporate securities$12,384.0 $811.4 $13,195.4 
United States Treasury securities and obligations of the United States government and agencies166.2 — 166.2 
States and political subdivisions2,637.4 11.6 2,649.0 
Foreign governments85.4 — 85.4 
Asset-backed securities983.1 145.9 1,129.0 
Agency residential mortgage-backed securities36.7 — 36.7 
Non-agency residential mortgage-backed securities1,141.0 729.4 (a)1,870.4 
Collateralized loan obligations574.2 13.1 587.3 
Commercial mortgage-backed securities2,064.6 83.6 2,148.2 
Total$20,072.6 $1,795.0 $21,867.6 

____________________
(a)     Certain structured securities rated below investment grade by Nationally Recognized Statistical Rating Organizations may be assigned a NAIC 1 or NAIC 2 designation based on the cost basis of the security relative to estimated recoverable amounts as determined by the National Association of Insurance Commissioners (NAIC).

The fair value of CNO’s available for sale fixed maturity portfolio was $24.8 billion compared with an amortized cost of $21.9 billion. Net unrealized gains were comprised of gross unrealized gains of $3.0 billion and gross unrealized losses of $41 million. The allowance for credit losses was $7.6 million at December 31, 2021.

At both amortized cost and fair value, 92 percent of fixed maturities, available for sale, were rated “investment grade.”



11

Non-Operating Items
Net investment gains in 4Q21 were $4.7 million (net of related amortization) including the unfavorable change in the allowance for credit losses of $1.7 million which was recorded in earnings. Net investment gains in 4Q20 were $12.6 million (net of related amortization) including the favorable change in the allowance for credit losses of $12.9 million which was recorded in earnings.

During 4Q21 and 4Q20, we recognized an increase (decrease) in earnings of $(12.1) million and $6.0 million, respectively, due to the net change in market value of investments recognized in earnings.

During 4Q21 and 4Q20, we recognized an increase in earnings of $19.1 million and $16.3 million, respectively, resulting from changes in the estimated fair value of embedded derivative liabilities related to our fixed index annuities, net of related amortization. Such amounts include the impacts of changes in market interest rates used to determine the derivative's estimated fair value.

In 4Q21 and 4Q20, other non-operating items included a decrease in earnings of $4.3 million and $3.1 million, respectively, for the mark-to-market change in the agent deferred compensation plan liability which was impacted by changes in the underlying actuarial assumptions used to value the liability. We recognize the mark-to-market change in the estimated value of this liability through earnings as assumptions change.

Statutory (based on non-GAAP measures) and GAAP Capital Information
Our consolidated statutory risk-based capital ratio was estimated at 386% at December 31, 2021, reflecting estimated 4Q21 statutory operating income of $88 million (and $289 million during 2021) and the payment of insurance company dividends to the holding company of $328.3 million during 2021 (none of which was paid in 4Q21).

During the fourth quarter of 2021, we repurchased $100.0 million of common stock under our securities repurchase program. We repurchased 4.1 million common shares at an average cost of $24.69 per share. As of December 31, 2021, we had 120.4 million shares outstanding and had authority to repurchase up to an additional $366.9 million of our common stock. During 4Q21, dividends paid on common stock totaled $15.7 million.

Unrestricted cash and investments held by our holding company were $249 million at December 31, 2021, compared to $388 million at December 31, 2020.

Book value per common share was $43.69 at December 31, 2021 compared to $40.54 at December 31, 2020. Book value per diluted share, excluding accumulated other comprehensive income (2), was $26.86 at December 31, 2021, compared to $23.95 at December 31, 2020.

The debt-to-capital ratio was 17.8 percent and 17.2 percent at December 31, 2021 and 2020, respectively. Our debt-to-total capital ratio, excluding accumulated other comprehensive income (3) was 25.6 percent at both December 31, 2021 and 2020.

Return on equity for the years ended December 31, 2021 and 2020, was 8.5% and 6.5%, respectively. Operating return, excluding significant items, on equity, excluding accumulated other comprehensive income and net operating loss carryforwards (6) for the years ended December 31, 2021 and 2020, was 11.8% and 12.0%, respectively.

In this news release, CNO includes non-GAAP measures to enhance investors’ understanding of management’s view of the business. The non-GAAP measures are not a substitute for GAAP, but rather a supplement to increase transparency by providing broader perspective. CNO’s definitions of non-GAAP measures may differ from other companies’ definitions. More detailed information including various GAAP and non-GAAP measurements are located at CNOinc.com in the Investors section under SEC Filings.


12

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements within the meaning of federal securities laws. These prospective statements reflect management’s current expectations, but are not guarantees of future performance. Accordingly, please refer to CNO’s cautionary statement regarding forward-looking statements, and the business environment in which the Company operates, contained in the Company’s Form 10-K for the year ended December 31, 2020 and any subsequent Form 10-Q or Form 10-K on file with the Securities and Exchange Commission and on the Company’s website at CNOinc.com in the Investors section.  CNO specifically disclaims any obligation to update or revise any forward-looking statement because of new information, future developments or otherwise.

EARNINGS RELEASE CONFERENCE CALL WEBCAST:

The Company will host a conference call to discuss results on February 9, 2022 at 11:00 a.m. Eastern Time. During the call, we will be referring to a presentation that will be available at the Investors section of the company's website.

To participate by dial-in, please register at http://www.directeventreg.com/registration/event/7844578. Upon registering, you will be provided with call details and a registrant ID used to track attendance on the conference call. Reminders will also be sent to registered participants via email.

For those investors who prefer to listen to the call online, we will be broadcasting the call live via webcast. The event can be accessed through the Investors section of the company's website: ir.CNOinc.com. Participants should go to the website at least 15 minutes before the event to register and download any necessary audio software.


ABOUT CNO FINANCIAL GROUP

CNO Financial Group, Inc. (NYSE: CNO) secures the future of middle-income America. CNO provides life and health insurance, annuities, financial services, and workforce benefits solutions through our family of brands, including Bankers Life, Colonial Penn and Washington National. Our customers work hard to save for the future, and we help protect their health, income and retirement needs with 3.2 million policies and $36 billion in total assets. Our 3,400 associates, 4,500 exclusive agents and 4,000 independent partner agents guide individuals, families and businesses through a lifetime of financial decisions. For more information, visit CNOinc.com.
13

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(unaudited)

December 31,
2021		December 31,
2020
ASSETS
Investments:
Fixed maturities, available for sale, at fair value (net of allowance for credit losses: 2021 - $7.6 and 2020 - $2.2; amortized cost: 2021 - $21,867.6 and 2020 - $19,921.1)$24,805.4 $23,383.6 
Equity securities at fair value131.1 151.2 
Mortgage loans (net of allowance for credit losses: 2021 - $5.6 and 2020 - $11.8)1,218.6 1,358.7 
Policy loans120.2 123.0 
Trading securities227.2 232.0 
Investments held by variable interest entities (net of allowance for credit losses: 2021 - $3.7 and 2020 - $15.1; amortized cost: 2021 - $1,206.8 and 2020 - $1,211.3)1,199.6 1,189.4 
Other invested assets1,224.0 1,146.4 
Total investments28,926.1 27,584.3 
Cash and cash equivalents - unrestricted632.1 937.8 
Cash and cash equivalents held by variable interest entities99.6 54.1 
Accrued investment income216.4 205.8 
Present value of future profits222.6 249.4 
Deferred acquisition costs1,112.0 1,027.8 
Reinsurance receivables (net of allowance for credit losses: 2021 - $3.0 and 2020 - $4.0)4,354.3 4,584.3 
Income tax assets, net118.3 199.4 
Assets held in separate accounts3.9 4.2 
Other assets519.1 492.8 
Total assets$36,204.4 $35,339.9 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities: 
Liabilities for insurance products: 
Policyholder account liabilities$13,689.7 $12,540.6 
Future policy benefits11,670.7 11,744.2 
Liability for policy and contract claims501.8 561.8 
Unearned and advanced premiums246.7 252.6 
Liabilities related to separate accounts3.9 4.2 
Other liabilities830.9 821.8 
Investment borrowings1,715.8 1,642.5 
Borrowings related to variable interest entities1,147.9 1,151.8 
Notes payable – direct corporate obligations1,137.3 1,136.2 
Total liabilities30,944.7 29,855.7 
Commitments and Contingencies
Shareholders' equity: 
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2021 - 120,377,152 and 2020 - 135,279,119)1.2 1.3 
Additional paid-in capital2,184.2 2,544.5 
Accumulated other comprehensive income1,947.1 2,186.1 
Retained earnings1,127.2 752.3 
Total shareholders' equity5,259.7 5,484.2 
Total liabilities and shareholders' equity$36,204.4 $35,339.9 

14

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in millions, except per share data)
(unaudited)
Three months endedYear ended
December 31,December 31,
 2021202020212020
Revenues:  
Insurance policy income$629.9 $629.0 $2,523.4 $2,511.3 
Net investment income:
General account assets285.9 290.1 1,140.2 1,079.0 
Policyholder and other special-purpose portfolios109.2 100.5 280.5 143.5 
Investment gains (losses):
Net investment gains (losses)(5.4)6.3 6.9 (17.7)
Change in allowance for credit losses and other-than-temporary impairment losses(1.7)12.9 12.2 (18.5)
Total investment gains (losses)(7.1)19.2 19.1 (36.2)
Fee revenue and other income56.9 37.4 159.0 123.5 
Total revenues1,074.8 1,076.2 4,122.2 3,821.1 
Benefits and expenses:    
Insurance policy benefits549.4 566.1 2,190.7 2,157.9 
Interest expense23.6 23.3 95.4 108.8 
Amortization80.9 75.9 281.1 268.1 
Other operating costs and expenses272.8 267.4 987.3 942.0 
Total benefits and expenses926.7 932.7 3,554.5 3,476.8 
Income before income taxes148.1 143.5 567.7 344.3 
Income tax expense (benefit):
Tax expense on period income32.3 31.7 126.7 76.5 
Valuation allowance for deferred tax assets and other tax items— — — (34.0)
Net income$115.8 $111.8 $441.0 $301.8 
Earnings per common share:  
Basic:  
Weighted average shares outstanding122,017,000 138,232,000 128,400,000 142,096,000 
Net income$.95 $.81 $3.43 $2.12 
Diluted:
Weighted average shares outstanding125,020,000 140,387,000 131,126,000 143,164,000 
Net income$.93 $.80 $3.36 $2.11 


15

NOTES
(1)Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and the change in allowance for credit losses, net of related amortization and taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss on extinguishment of debt, net of taxes; (vi) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes ("Net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals. A reconciliation of Net operating income to Net income applicable to common stock is provided in the tables on pages 2 and 3. Additional information concerning this non-GAAP measure is included in our periodic filings with the Securities and Exchange Commission that are available in the "Investors - SEC Filings" section of CNO's website, CNOinc.com.
(2)Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.
(3)The calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.
(4)Measured by new annualized premiums for life and health products, which includes 10% of single premium whole life deposits and 100% of all other premiums (excluding annuities). Sales of third-party products are excluded.
(5)Net insurance liabilities are equal to total insurance liabilities less: (i) amounts related to reinsured business; (ii) deferred acquisition costs; (iii) present value of future profits; and (iv) the value of unexpired options credited to insurance liabilities.
(6)The following summarizes 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, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (iii) return on equity are as follows (dollars in millions):
Year ended
4Q214Q20
Net operating income$365.6 $362.3 
Net operating income, excluding significant items$357.3 $338.2 
Net income$441.0 $301.8 
Average common equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)$3,026.0 $2,812.4 
Average common shareholders' equity$5,197.4 $4,665.4 
Operating return on equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)12.1 %12.9 %
Operating return, excluding significant items, on equity, excluding
accumulated other comprehensive income (loss) and net
operating loss carryforwards (a non-GAAP financial measure)11.8 %12.0 %
Return on equity8.5 %6.5 %

16

The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income (loss) (dollars in millions):
Net operating
Net operatingincome,
income,excludingNet
excludingsignificantincome (loss) -
Net operatingSignificantsignificantitems - trailingNettrailing
incomeitemsitems (a)four quartersincome (loss)four quarters
1Q20$84.3 $— $84.3 $300.6 $(21.2)$336.4 
2Q2079.4 (17.7)(b)61.7 285.9 82.0 380.8 
3Q20112.6 — 112.6 329.3 129.2 468.0 
4Q2086.0 (6.4)(c)79.6 338.2 111.8 301.8 
1Q2175.2 6.1 (d)81.3 335.2 147.4 470.4 
2Q2189.1 3.5 (e)92.6 366.1 78.0 466.4 
3Q2192.8 2.3 (f)95.1 348.6 99.8 437.0 
4Q21108.5 (20.2)(g)88.3 357.3 115.8 441.0 
(a) See note (7) for additional information.
(b) Comprised of: (i) $45.9 million of net favorable adjustments arising from our review of actuarial assumptions; (ii) $23.5 million unfavorable impact related to regulatory matters; and (iii) an increase in tax expense of $4.7 million.
(c) Comprised of: (i) $11.8 million of net favorable adjustments arising from our review of actuarial assumptions; (ii) $3.7 million unfavorable impact related to asset impairments; and (iii) an increase in tax expense of $1.7 million.
(d) Comprised of: (i) $5.3 million from legal and regulatory matters; (ii) $2.5 million of transaction expenses related to the previously announced acquisition of DirectPath, LLC; and (iii) a decrease in tax expense of $1.7 million.
(e) Comprised of: (i) $4.5 million from legal and regulatory matters; and (ii) a decrease in tax expense of $1.0 million.
(f) Comprised of: (i) $3.0 million from legal and regulatory matters; and (ii) a decrease in tax expense of $.7 million.
(g) Comprised of: (i) $25.9 million of net favorable adjustments arising from our review of actuarial assumptions; and (ii) an increase in tax expense of $5.7 million.

A reconciliation of pre-tax operating earnings (a non-GAAP financial measure) to net income is as follows (dollars in millions):
Year ended
4Q214Q20
Pre-tax operating earnings (a non-GAAP financial measure)$470.6 $463.8 
Income tax expense(105.0)(101.5)
Net operating income365.6 362.3 
Non-operating items:
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses, net of related amortization34.8 (31.1)
Net change in market value of investments recognized in earnings(17.4)(2.7)
Fair value changes in embedded derivative liabilities, net of related amortization67.2 (79.1)
Fair value changes related to the agent deferred compensation plan8.9 (16.3)
Other3.6 9.7 
Non-operating income (loss) before taxes97.1 (119.5)
Income tax (expense) benefit:
    On non-operating income (loss)(21.7)25.0 
    Valuation allowance for deferred tax assets and other tax items— 34.0 
Net non-operating income (loss)75.4 (60.5)
Net income$441.0 $301.8 
17

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):
4Q19
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$2,761.9 
Net operating loss carryforwards542.6 
Accumulated other comprehensive income1,372.5 
Common shareholders' equity$4,677.0 
1Q202Q203Q204Q20
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$2,701.2 $2,784.2 $2,905.1 $2,956.2 
Net operating loss carryforwards469.4 426.8 377.2 341.9 
Accumulated other comprehensive income595.2 1,520.2 1,801.6 2,186.1 
Common shareholders' equity$3,765.8 $4,731.2 $5,083.9 $5,484.2 
1Q212Q213Q214Q21
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$3,019.5 $3,035.6 $3,036.3 $3,068.9 
Net operating loss carryforwards323.1 292.9 266.9 243.7 
Accumulated other comprehensive income1,518.1 1,995.5 1,929.7 1,947.1 
Common shareholders' equity$4,860.7 $5,324.0 $5,232.9 $5,259.7 

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):
Trailing four quarter average
4Q214Q20
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$3,026.0 $2,812.4 
Net operating loss carryforwards293.9 428.9 
Accumulated other comprehensive income1,877.5 1,424.1 
Common shareholders' equity$5,197.4 $4,665.4 


18

(7)    The tables below summarize the financial impact of significant items on our net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions, except per share data).
Three months ended
December 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$93.9 $(26.9)(a)$67.0 
Health margin129.5 — 129.5 
Life margin30.4 1.0 (a)31.4 
Total insurance product margin253.8 (25.9)227.9 
Allocated expenses(143.3)— (143.3)
Income from insurance products110.5 (25.9)84.6 
Fee income2.9 — 2.9 
Investment income not allocated to product lines42.8 — 42.8 
Expenses not allocated to product lines(17.4)— (17.4)
Operating earnings before taxes138.8 (25.9)112.9 
Income tax (expense) benefit on operating income(30.3)5.7 (24.6)
Net operating income$108.5 $(20.2)$88.3 
Net operating income per diluted share$0.87 $(0.16)$0.71 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.
Three months ended
September 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$52.5 $— $52.5 
Health margin117.9 — 117.9 
Life margin53.2 — 53.2 
Total insurance product margin223.6 — 223.6 
Allocated expenses(140.5)— (140.5)
Income from insurance products83.1 — 83.1 
Fee income2.6 — 2.6 
Investment income not allocated to product lines50.9 — 50.9 
Expenses not allocated to product lines(17.3)3.0 (a)(14.3)
Operating earnings before taxes119.3 3.0 122.3 
Income tax (expense) benefit on operating income(26.5)(0.7)(27.2)
Net operating income$92.8 $2.3 $95.1 
Net operating income per diluted share$0.72 $0.02 $0.74 
___________
(a)Comprised of $3.0 million from legal and regulatory matters.


19

Three months ended
June 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$66.0 $— $66.0 
Health margin120.9 — 120.9 
Life margin39.7 — 39.7 
Total insurance product margin226.6 — 226.6 
Allocated expenses(141.6)— (141.6)
Income from insurance products85.0 — 85.0 
Fee income6.6 — 6.6 
Investment income not allocated to product lines47.8 — 47.8 
Expenses not allocated to product lines(23.8)4.5 (a)(19.3)
Operating earnings before taxes115.6 4.5 120.1 
Income tax (expense) benefit on operating income(26.5)(1.0)(27.5)
Net operating income$89.1 $3.5 $92.6 
Net operating income per diluted share$0.66 $0.03 $0.69 
___________
(a)Comprised of $4.5 million from legal and regulatory matters.


Three months ended
March 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$57.9 $— $57.9 
Health margin124.7 — 124.7 
Life margin27.1 — 27.1 
Total insurance product margin209.7 — 209.7 
Allocated expenses(141.1)— (141.1)
Income from insurance products68.6 — 68.6 
Fee income7.3 — 7.3 
Investment income not allocated to product lines43.0 — 43.0 
Expenses not allocated to product lines(22.0)7.8 (a)(14.2)
Operating earnings before taxes96.9 7.8 104.7 
Income tax (expense) benefit on operating income(21.7)(1.7)(23.4)
Net operating income$75.2 $6.1 $81.3 
Net operating income per diluted share$0.55 $0.04 $0.59 
___________
(a)Comprised of: (i) $5.3 million from legal and regulatory matters; and (ii) $2.5 million of transaction expenses related to the previously announced acquisition of DirectPath, LLC. The legal and regulatory matters primarily consist of an increase to our liability for claims and interest pursuant to the Global Resolution Agreement, as we have now processed and verified most of the claims provided by the third party auditor allowing us to more accurately estimate the ultimate liability.

20

Three months ended
December 31, 2020
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$68.1 $(16.1)(a)$52.0 
Health margin125.2 — 125.2 
Life margin37.3 4.3 (a)41.6 
Total insurance product margin230.6 (11.8)218.8 
Allocated expenses(162.7)— (162.7)
Income from insurance products67.9 (11.8)56.1 
Fee income2.9 — 2.9 
Investment income not allocated to product lines57.8 — 57.8 
Expenses not allocated to product lines(17.8)3.7 (b)(14.1)
Operating earnings before taxes110.8 (8.1)102.7 
Income tax (expense) benefit on operating income(24.8)1.7 (23.1)
Net operating income$86.0 $(6.4)$79.6 
Net operating income per diluted share$0.61 $(0.04)$0.57 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.
(b)Unfavorable impact related to asset impairments.


Three months ended
June 30, 2020
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin
Annuity margin$123.8 $40.0 (a)$72.3 
(91.5)(a)
Health margin95.5 — 95.5 
Life margin36.1 5.6 (a)41.7 
Total insurance product margin255.4 (45.9)209.5 
Allocated expenses(128.1)— (128.1)
Income from insurance products127.3 (45.9)81.4 
Fee income5.2 — 5.2 
Investment income not allocated to product lines8.2 — 8.2 
Expenses not allocated to product lines(38.5)23.5 (b)(15.0)
Operating earnings before taxes102.2 (22.4)79.8 
Income tax (expense) benefit on operating income(22.8)4.7 (18.1)
Net operating income$79.4 $(17.7)$61.7 
Net operating income per diluted share$0.55 $(0.12)$0.43 
___________
(a)Given our expectation that interest rates will remain low for the long-term, we performed an actuarial unlocking exercise in the second quarter of 2020 to reflect our assumption that average new money rates will remain flat at 4 percent forever. This change and the related impacts to persistency assumptions had a $45.6 million unfavorable impact on pre-tax earnings. As part of the actuarial unlocking exercise, we also changed our assumptions related to the future option costs we incur in providing benefits on fixed index annuities which had a favorable impact on pre-tax earnings of $91.5 million. The impact of these changes in assumptions is summarized below (dollars in millions):
21

Line of business
Fixed index annuitiesFixed interest annuitiesInterest- sensitive lifeTotal
Favorable (unfavorable)
Impacts of an average new money rate assumption of 4 percent
Insurance policy benefits$(5.0)$— $(7.4)$(12.4)
Amortization(25.6)(9.4)1.8 (33.2)
Subtotal(30.6)(9.4)(5.6)(45.6)
Impacts of changes in future option costs
Insurance policy benefits104.8 — — 104.8 
Amortization(13.3)— — (13.3)
Subtotal91.5 — — 91.5 
Impact on pre-tax income$60.9 $(9.4)$(5.6)$45.9 
This actuarial unlocking exercise did not replace our comprehensive annual review of all assumptions for our insurance products, which we completed in the fourth quarter of 2020.
(b)We increased our liability for claims and interest pursuant to the previously disclosed Global Resolution Agreement entered into in November 2018. Pursuant to this agreement, a third-party auditor is acting on behalf of 41 states and the District of Columbia for the purpose of identifying deceased insureds and contract holders where benefits are payable pursuant to unclaimed property laws. The third-party auditor has provided information that we have processed and verified allowing us to more accurately estimate the ultimate liability pursuant to this agreement.


For further information: CNO News Media, Valerie Dolenga, (312) 396-7688, [email protected]; CNO Investor Relations, Jennifer Childe, (312) 396-7755, [email protected]


22

Exhibit 99.2



cnologosuppa.jpg


Quarterly Financial Supplement - 4Q2021
February 8, 2022

Page 1

Table of ContentsPage
Consolidated balance sheet3
Consolidated statement of operations4
Financial summary5
Insurance operations6
Margin from insurance products7-9
Estimated impacts of COVID-19 on insurance product margins10
Collected premiums from annuity and interest sensitive life products and insurance policy income11
Health and life new annualized premiums12
Computation of weighted average shares outstanding13
Annuities - account value rollforwards14
Statutory information15
Investment income not allocated to product lines and investment income allocated to product lines16-19
Other investment data19
Significant items20-24
Notes25

Page 2

CNO FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21
Assets
Investments:
  Fixed maturities, available for sale, at fair value$20,379.1 $22,167.9 $22,702.9 $23,383.6 $22,610.4 $23,806.6 $24,142.0 $24,805.4 
  Equity securities at fair value50.1 60.5 62.1 151.2 164.4 149.3 146.4 131.1 
  Mortgage loans1,484.1 1,459.9 1,444.9 1,358.7 1,297.7 1,276.9 1,211.0 1,218.6 
  Policy loans124.7 124.3 123.6 123.0 121.0 120.3 119.7 120.2 
  Trading securities227.8 240.6 240.3 232.0 242.6 247.0 243.6 227.2 
  Investments held by variable interest entities1,038.1 1,137.4 1,172.6 1,189.4 1,224.0 1,233.5 1,221.3 1,199.6 
  Other invested assets953.3 993.8 1,070.6 1,146.4 1,195.1 1,226.0 1,172.6 1,224.0 
  Total investments24,257.2 26,184.4 26,817.0 27,584.3 26,855.2 28,059.6 28,256.6 28,926.1 
Cash and cash equivalents - unrestricted482.0 521.1 735.6 937.8 662.9 652.5 742.1 632.1 
Cash and cash equivalents held by variable interest entities68.5 36.8 51.0 54.1 76.0 62.3 70.5 99.6 
Accrued investment income213.0 205.3 214.4 205.8 216.8 210.7 218.1 216.4 
Present value of future profits282.2 263.4 255.9 249.4 241.3 235.2 229.0 222.6 
Deferred acquisition costs1,398.6 1,120.9 1,084.0 1,027.8 1,168.4 1,051.4 1,082.7 1,112.0 
Reinsurance receivables4,727.5 4,712.6 4,613.1 4,584.3 4,509.3 4,460.9 4,409.7 4,354.3 
Income tax assets, net703.2 428.8 322.0 199.4 358.2 218.6 145.7 118.3 
Assets held in separate accounts3.2 3.7 3.9 4.2 4.3 4.5 4.5 3.9 
Other assets599.6 502.5 472.3 492.8 567.1 564.0 554.8 519.1 
Total assets$32,735.0 $33,979.5 $34,569.2 $35,339.9 $34,659.5 $35,519.7 $35,713.7 $36,204.4 
Liabilities
Liabilities for insurance products:
  Policyholder account liabilities$12,138.1 $12,171.3 $12,357.5 $12,540.6 $12,571.3 $12,840.8 $12,992.0 $13,689.7 
  Future policy benefits11,429.9 11,767.5 11,753.1 11,744.2 11,546.6 11,689.8 11,699.7 11,670.7 
  Liability for policy and contract claims510.7 488.6 473.2 561.8 558.7 528.3 512.3 501.8 
  Unearned and advanced premiums251.0 243.6 256.8 252.6 262.4 255.8 247.5 246.7 
  Liabilities related to separate accounts3.2 3.7 3.9 4.2 4.3 4.5 4.5 3.9 
Other liabilities850.7 788.3 855.8 821.8 925.2 946.5 995.3 830.9 
Investment borrowings1,643.9 1,643.4 1,642.9 1,642.5 1,642.0 1,641.5 1,741.1 1,715.8 
Borrowings related to variable interest entities1,152.3 1,152.2 1,152.0 1,151.8 1,151.7 1,151.6 1,151.4 1,147.9 
Notes payable - direct corporate obligations989.4 989.7 990.1 1,136.2 1,136.6 1,136.9 1,137.0 1,137.3 
Total liabilities28,969.2 29,248.3 29,485.3 29,855.7 29,798.8 30,195.7 30,480.8 30,944.7 
Shareholders' equity
Common stock1.4 1.4 1.4 1.3 1.3 1.3 1.2 1.2 
Additional paid-in capital2,688.5 2,664.3 2,623.4 2,544.5 2,457.8 2,383.0 2,274.6 2,184.2 
Retained earnings480.7 545.3 657.5 752.3 883.5 944.2 1,027.4 1,127.2 
Total shareholders' equity before accumulated other comprehensive income3,170.6 3,211.0 3,282.3 3,298.1 3,342.6 3,328.5 3,303.2 3,312.6 
Accumulated other comprehensive income595.2 1,520.2 1,801.6 2,186.1 1,518.1 1,995.5 1,929.7 1,947.1 
Total shareholders' equity3,765.8 4,731.2 5,083.9 5,484.2 4,860.7 5,324.0 5,232.9 5,259.7 
Total liabilities and shareholders' equity$32,735.0 $33,979.5 $34,569.2 $35,339.9 $34,659.5 $35,519.7 $35,713.7 $36,204.4 
Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21
Book value per common share$26.22 $33.38 $36.59 $40.54 $36.75 $41.24 $42.11 $43.69 
Book value per common share, excluding accumulated other comprehensive income (1) (2)$22.08 $22.66 $23.63 $24.38 $25.27 $25.78 $26.58 $27.52 
Book value per diluted share (1) (3)$22.03 $22.55 $23.45 $23.95 $24.83 $25.30 $26.03 $26.86 
Page 3

CNO FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in millions)
(Unaudited)


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Revenues
Insurance policy income$628.7 $625.3 $628.3 $629.0 $2,511.3 $632.4 $630.5 $630.6 $629.9 $2,523.4 
Net investment income:
   General account assets280.3 231.7 276.9 290.1 1,079.0 282.7 282.1 289.5 285.9 1,140.2 
Policyholder and other special-purpose portfolios(110.7)87.1 66.6 100.5 143.5 55.5 97.1 18.7 109.2 280.5 
Investment gains (losses):
Net investment gains (losses)(60.1)27.9 8.2 6.3 (17.7)(12.4)25.6 (0.9)(5.4)6.9 
Change in allowance for credit losses and other-than-temporary impairment losses(55.4)15.9 8.1 12.9 (18.5)9.6 5.7 (1.4)(1.7)12.2 
Total investment gains (losses)(115.5)43.8 16.3 19.2 (36.2)(2.8)31.3 (2.3)(7.1)19.1 
Fee revenue and other income34.4 26.3 25.4 37.4 123.5 38.2 32.1 31.8 56.9 159.0 
Total revenues717.2 1,014.2 1,013.5 1,076.2 3,821.1 1,006.0 1,073.1 968.3 1,074.8 4,122.2 
Benefits and expenses
Insurance policy benefits490.8 540.3 560.7 566.1 2,157.9 459.1 657.4 524.8 549.4 2,190.7 
Interest expense33.4 28.4 23.7 23.3 108.8 24.1 24.0 23.7 23.6 95.4 
Amortization50.2 88.5 53.5 75.9 268.1 99.7 42.6 57.9 80.9 281.1 
Other operating costs and expenses213.8 251.6 209.2 267.4 942.0 233.1 247.5 233.9 272.8 987.3 
Total benefits and expenses788.2 908.8 847.1 932.7 3,476.8 816.0 971.5 840.3 926.7 3,554.5 
Income (loss) before income taxes(71.0)105.4 166.4 143.5 344.3 190.0 101.6 128.0 148.1 567.7 
Income tax expense (benefit) on period income(15.8)23.4 37.2 31.7 76.5 42.6 23.6 28.2 32.3 126.7 
Valuation allowance for deferred tax assets and other tax items(34.0)— — — (34.0)— — — — — 
Net income (loss)$(21.2)$82.0 $129.2 $111.8 $301.8 $147.4 $78.0 $99.8 $115.8 $441.0 


Page 4

CNO FINANCIAL GROUP, INC.
FINANCIAL SUMMARY
(Dollars in millions, except per share data)
(Unaudited)

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Insurance product margin (4)
Annuity margin$59.5 $123.8 $45.3 $68.1 $296.7 $57.9 $66.0 $52.5 $93.9 $270.3 
Health margin86.9 95.5 152.2 125.2 459.8 124.7 120.9 117.9 129.5 493.0 
Life margin44.3 36.1 47.3 37.3 165.0 27.1 39.7 53.2 30.4 150.4 
Total insurance product margin190.7 255.4 244.8 230.6 921.5 209.7 226.6 223.6 253.8 913.7 
Allocated expenses(136.6)(128.1)(130.3)(162.7)(557.7)(141.1)(141.6)(140.5)(143.3)(566.5)
Income from insurance products (5)54.1 127.3 114.5 67.9 363.8 68.6 85.0 83.1 110.5 347.2 
Fee income7.8 5.2 0.8 2.9 16.7 7.3 6.6 2.6 2.9 19.4 
Investment income not allocated to product lines (9)57.4 8.2 43.7 57.8 167.1 43.0 47.8 50.9 42.8 184.5 
Expenses not allocated to product lines(13.8)(38.5)(13.7)(17.8)(83.8)(22.0)(23.8)(17.3)(17.4)(80.5)
Operating earnings before taxes105.5 102.2 145.3 110.8 463.8 96.9 115.6 119.3 138.8 470.6 
Income tax expense on operating income(21.2)(22.8)(32.7)(24.8)(101.5)(21.7)(26.5)(26.5)(30.3)(105.0)
Net operating income (10)84.3 79.4 112.6 86.0 362.3 75.2 89.1 92.8 108.5 365.6 
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization)(63.7)12.3 7.7 12.6 (31.1)3.6 24.3 2.2 4.7 34.8 
Net change in market value of investments recognized in earnings(48.4)31.2 8.5 6.0 (2.7)(6.4)5.7 (4.6)(12.1)(17.4)
Fair value changes related to agent deferred compensation plan— (13.2)— (3.1)(16.3)13.2 — — (4.3)8.9 
Fair value changes in embedded derivative liabilities (net of related amortization)(66.7)(27.1)(1.6)16.3 (79.1)82.1 (44.9)10.9 19.1 67.2 
Other2.3 — 6.5 0.9 9.7 0.6 0.9 0.2 1.9 3.6 
Net non-operating income (loss) before taxes(176.5)3.2 21.1 32.7 (119.5)93.1 (14.0)8.7 9.3 97.1 
Income tax (expense) benefit on non-operating income (loss)37.0 (0.6)(4.5)(6.9)25.0 (20.9)2.9 (1.7)(2.0)(21.7)
Valuation allowance for deferred tax assets and other tax items34.0 — — — 34.0 — — — — — 
Net non-operating income (loss)(105.5)2.6 16.6 25.8 (60.5)72.2 (11.1)7.0 7.3 75.4 
Net income (loss)$(21.2)$82.0 $129.2 $111.8 $301.8 $147.4 $78.0 $99.8 $115.8 $441.0 
Per diluted share
Net operating income$0.58 $0.55 $0.79 $0.61 $2.53 $0.55 $0.66 $0.72 $0.87 $2.79 
Net non-operating income (loss)(0.73)0.02 0.12 0.19 (0.42)0.53 (0.08)0.05 0.06 0.57 
Net income (loss)$(0.15)$0.57 $0.91 $0.80 $2.11 $1.08 $0.58 $0.77 $0.93 $3.36 


Page 5

CNO FINANCIAL GROUP, INC.
Insurance Operations
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Insurance product margin (4)
Annuity:
Insurance policy income$5.6 $4.5 $4.3 $4.4 $18.8 $5.4 $4.3 $5.8 $4.1 $19.6 
Net investment income (5) (6)117.4 116.6 115.6 115.5 465.1 115.7 114.9 115.5 116.3 462.4 
Insurance policy benefits(5.5)107.7 (20.1)11.6 93.7 (6.2)(1.3)(16.2)38.2 14.5 
Interest credited (6)(42.0)(43.6)(42.4)(42.6)(170.6)(38.7)(36.9)(38.1)(35.4)(149.1)
Amortization and non-deferred commissions(16.0)(61.4)(12.1)(20.8)(110.3)(18.3)(15.0)(14.5)(29.3)(77.1)
Annuity margin59.5 123.8 45.3 68.1 296.7 57.9 66.0 52.5 93.9 270.3 
Health:
Insurance policy income429.0 426.5 421.4 422.6 1,699.5 416.5 415.4 414.4 415.2 1,661.5 
Net investment income (5)70.4 70.1 70.9 70.9 282.3 71.5 71.6 72.2 72.4 287.7 
Insurance policy benefits(353.8)(359.0)(295.5)(321.4)(1,329.7)(306.6)(323.3)(325.4)(311.0)(1,266.3)
Amortization and non-deferred commissions(58.7)(42.1)(44.6)(46.9)(192.3)(56.7)(42.8)(43.3)(47.1)(189.9)
Health margin86.9 95.5 152.2 125.2 459.8 124.7 120.9 117.9 129.5 493.0 
Life:
Insurance policy income194.1 194.3 202.6 202.0 793.0 210.5 210.8 210.4 210.6 842.3 
Net investment income (5) (7)34.3 34.7 35.2 35.4 139.6 35.8 36.1 36.4 36.4 144.7 
Insurance policy benefits(131.9)(147.8)(143.3)(147.0)(570.0)(163.6)(149.5)(141.3)(159.1)(613.5)
Interest credited (7)(10.3)(10.9)(11.4)(11.9)(44.5)(10.6)(11.0)(11.1)(11.7)(44.4)
Amortization and non-deferred commissions(21.9)(18.0)(21.6)(25.6)(87.1)(21.7)(21.8)(21.4)(24.0)(88.9)
Advertising expense(20.0)(16.2)(14.2)(15.6)(66.0)(23.3)(24.9)(19.8)(21.8)(89.8)
Life margin44.3 36.1 47.3 37.3 165.0 27.1 39.7 53.2 30.4 150.4 
Total insurance product margin190.7 255.4 244.8 230.6 921.5 209.7 226.6 223.6 253.8 913.7 
Allocated expenses:
Branch office expenses(18.9)(15.1)(13.5)(17.5)(65.0)(18.5)(16.2)(14.8)(13.0)(62.5)
Other allocated expenses(117.7)(113.0)(116.8)(145.2)(492.7)(122.6)(125.4)(125.7)(130.3)(504.0)
Income from insurance products (8)54.1 127.3 114.5 67.9 363.8 68.6 85.0 83.1 110.5 347.2 
Fee income7.8 5.2 0.8 2.9 16.7 7.3 6.6 2.6 2.9 19.4 
Investment income not allocated to product lines (9)57.4 8.2 43.7 57.8 167.1 43.0 47.8 50.9 42.8 184.5 
Expenses not allocated to product lines(13.8)(38.5)(13.7)(17.8)(83.8)(22.0)(23.8)(17.3)(17.4)(80.5)
Operating earnings before taxes105.5 102.2 145.3 110.8 463.8 96.9 115.6 119.3 138.8 470.6 
Income tax expense on operating income(21.2)(22.8)(32.7)(24.8)(101.5)(21.7)(26.5)(26.5)(30.3)(105.0)
Net operating income (10)$84.3 $79.4 $112.6 $86.0 $362.3 $75.2 $89.1 $92.8 $108.5 $365.6 
Page 6

CNO FINANCIAL GROUP, INC.
Margin from Annuity Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Annuity margin (4):
Fixed index annuities
Insurance policy income$3.3 $2.6 $2.5 $2.9 $11.3 $3.0 $3.3 $3.3 $3.2 $12.8 
Net investment income (5) (6)82.1 82.9 83.1 84.0 332.1 84.9 84.9 86.3 87.8 343.9 
Insurance policy benefits(1.0)104.1 (11.5)17.2 108.8 1.6 3.8 (9.8)38.1 33.7 
Interest credited (6)(26.2)(28.3)(27.6)(28.0)(110.1)(24.9)(23.4)(24.8)(22.6)(95.7)
Amortization and non-deferred commissions(13.8)(49.6)(9.9)(18.0)(91.3)(16.3)(13.3)(12.6)(29.1)(71.3)
Margin from fixed index annuities$44.4 $111.7 $36.6 $58.1 $250.8 $48.3 $55.3 $42.4 $77.4 $223.4 
Average net insurance liabilities (11)$6,921.4 $7,056.3 $7,173.9 $7,342.1 $7,123.4 $7,464.8 $7,643.4 $7,881.9 $8,096.7 $7,771.8 
Margin/average net insurance liabilities (12)2.57 %6.33 %2.04 %3.17 %3.52 %2.59 %2.89 %2.15 %3.82 %2.87 %
Fixed interest annuities
Insurance policy income$0.3 $0.1 $0.2 $0.3 $0.9 $0.2 $0.1 $0.3 $0.2 $0.8 
Net investment income (5)28.1 26.8 25.7 25.0 105.6 24.4 23.7 23.0 22.5 93.6 
Insurance policy benefits(0.1)— (0.4)(0.1)(0.6)(0.7)0.2 (0.2)(0.4)(1.1)
Interest credited(14.9)(14.4)(14.2)(13.9)(57.4)(13.2)(12.8)(12.7)(12.2)(50.9)
Amortization and non-deferred commissions(2.1)(11.7)(2.1)(2.8)(18.7)(1.9)(1.7)(1.8)— (5.4)
Margin from fixed interest annuities$11.3 $0.8 $9.2 $8.5 $29.8 $8.8 $9.5 $8.6 $10.1 $37.0 
Average net insurance liabilities (11)$2,146.2 $2,088.2 $2,041.6 $2,000.1 $2,069.1 $1,951.6 $1,899.5 $1,856.3 $1,813.3 $1,880.1 
Margin/average net insurance liabilities (12)2.11 %0.15 %1.80 %1.70 %1.44 %1.80 %2.00 %1.85 %2.23 %1.97 %
Other annuities
Insurance policy income$2.0 $1.8 $1.6 $1.2 $6.6 $2.2 $0.9 $2.2 $0.7 $6.0 
Net investment income (5)7.2 6.9 6.8 6.5 27.4 6.4 6.3 6.2 6.0 24.9 
Insurance policy benefits(4.4)3.6 (8.2)(5.5)(14.5)(7.1)(5.3)(6.2)0.5 (18.1)
Interest credited(0.9)(0.9)(0.6)(0.7)(3.1)(0.6)(0.7)(0.6)(0.6)(2.5)
Amortization and non-deferred commissions(0.1)(0.1)(0.1)— (0.3)(0.1)— (0.1)(0.2)(0.4)
Margin from other annuities$3.8 $11.3 $(0.5)$1.5 $16.1 $0.8 $1.2 $1.5 $6.4 $9.9 
Average net insurance liabilities (11)$551.5 $533.5 $524.0 $517.9 $531.7 $512.2 $506.8 $501.6 $495.8 $504.1 
Margin/average net insurance liabilities (12)2.76 %8.47 %(0.38)%1.16 %3.03 %0.62 %0.95 %1.20 %5.16 %1.96 %
Total annuity margin$59.5 $123.8 $45.3 $68.1 $296.7 $57.9 $66.0 $52.5 $93.9 $270.3 
Average net insurance liabilities (11)$9,619.1 $9,678.0 $9,739.5 $9,860.1 $9,724.2 $9,928.6 $10,049.7 $10,239.8 $10,405.8 $10,156.0 
Margin/average net insurance liabilities (12)2.47 %5.12 %1.86 %2.76 %3.05 %2.33 %2.63 %2.05 %3.61 %2.66 %
Page 7

CNO FINANCIAL GROUP, INC.
Margin from Health Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Health margin (4):
Supplemental health
Insurance policy income$169.8 $169.8 $169.2 $170.6 $679.4 $169.8 $170.0 $171.2 $172.8 $683.8 
Net investment income (5)34.9 34.9 35.5 35.6 140.9 36.1 36.3 36.9 37.3 146.6 
Insurance policy benefits(132.9)(138.1)(125.8)(124.1)(520.9)(126.3)(130.9)(127.8)(124.7)(509.7)
Amortization and non-deferred commissions(29.6)(26.2)(27.8)(29.1)(112.7)(29.2)(27.9)(29.4)(31.4)(117.9)
Margin from supplemental health$42.2 $40.4 $51.1 $53.0 $186.7 $50.4 $47.5 $50.9 $54.0 $202.8 
Margin/insurance policy income25 %24 %30 %31 %27 %30 %28 %30 %31 %30 %
Medicare supplement
Insurance policy income$192.3 $190.3 $186.1 $186.0 $754.7 $181.0 $179.7 $177.4 $176.0 $714.1 
Net investment income (5)1.2 1.2 1.2 1.3 4.9 1.3 1.3 1.3 1.2 5.1 
Insurance policy benefits(136.7)(136.6)(102.0)(129.7)(505.0)(120.0)(123.0)(129.7)(120.8)(493.5)
Amortization and non-deferred commissions(25.4)(13.0)(13.6)(14.3)(66.3)(24.1)(12.3)(11.7)(13.6)(61.7)
Margin from Medicare supplement$31.4 $41.9 $71.7 $43.3 $188.3 $38.2 $45.7 $37.3 $42.8 $164.0 
Margin/insurance policy income16 %22 %39 %23 %25 %21 %25 %21 %24 %23 %
Long-term care
Insurance policy income$66.9 $66.4 $66.1 $66.0 $265.4 $65.7 $65.7 $65.8 $66.4 $263.6 
Net investment income (5)34.3 34.0 34.2 34.0 136.5 34.1 34.0 34.0 33.9 136.0 
Insurance policy benefits(84.2)(84.3)(67.7)(67.6)(303.8)(60.3)(69.4)(67.9)(65.5)(263.1)
Amortization and non-deferred commissions(3.7)(2.9)(3.2)(3.5)(13.3)(3.4)(2.6)(2.2)(2.1)(10.3)
Margin from long-term care$13.3 $13.2 $29.4 $28.9 $84.8 $36.1 $27.7 $29.7 $32.7 $126.2 
Margin/insurance policy income20 %20 %44 %44 %32 %55 %42 %45 %49 %48 %
Total health margin$86.9 $95.5 $152.2 $125.2 $459.8 $124.7 $120.9 $117.9 $129.5 $493.0 
Margin/insurance policy income20 %22 %36 %30 %27 %30 %29 %28 %31 %30 %
Page 8

CNO FINANCIAL GROUP, INC.
Margin from Life Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Life margin (4):
Interest sensitive life
Insurance policy income$39.6 $38.7 $40.1 $40.4 $158.8 $40.8 $41.4 $42.3 $42.6 $167.1 
Net investment income (5) (7)11.7 11.7 11.9 12.1 47.4 12.4 12.4 12.6 12.8 50.2 
Insurance policy benefits(15.7)(23.2)(16.0)(21.2)(76.1)(22.7)(20.0)(17.4)(22.5)(82.6)
Interest credited (7)(10.2)(10.7)(11.2)(11.7)(43.8)(10.5)(10.8)(10.9)(11.5)(43.7)
Amortization and non-deferred commissions(7.4)(4.8)(6.9)(9.1)(28.2)(5.8)(6.2)(6.6)(6.7)(25.3)
Margin from interest sensitive life$18.0 $11.7 $17.9 $10.5 $58.1 $14.2 $16.8 $20.0 $14.7 $65.7 
Average net insurance liabilities (11)$900.1 $913.5 $926.7 $939.9 $920.0 $954.7 $970.0 $983.8 $996.9 $976.4 
Interest margin$1.5 $1.0 $0.7 $0.4 $3.6 $1.9 $1.6 $1.7 $1.3 $6.5 
Interest margin/average net insurance liabilities (12)0.67 %0.44 %0.30 %0.17 %0.39 %0.80 %0.66 %0.69 %0.52 %0.67 %
Underwriting margin$16.5 $10.7 $17.2 $10.1 $54.5 $12.3 $15.2 $18.3 $13.4 $59.2 
Underwriting margin/insurance policy income42 %28 %43 %25 %34 %30 %37 %43 %31 %35 %
Traditional life
Insurance policy income$154.5 $155.6 $162.5 $161.6 $634.2 $169.7 $169.4 $168.1 $168.0 $675.2 
Net investment income (5)22.6 23.0 23.3 23.3 92.2 23.4 23.7 23.8 23.6 94.5 
Insurance policy benefits(116.2)(124.6)(127.3)(125.8)(493.9)(140.9)(129.5)(123.9)(136.6)(530.9)
Interest credited(0.1)(0.2)(0.2)(0.2)(0.7)(0.1)(0.2)(0.2)(0.2)(0.7)
Amortization and non-deferred commissions(14.5)(13.2)(14.7)(16.5)(58.9)(15.9)(15.5)(14.9)(17.3)(63.6)
Advertising expense(20.0)(16.2)(14.2)(15.6)(66.0)(23.3)(25.0)(19.7)(21.8)(89.8)
Margin from traditional life$26.3 $24.4 $29.4 $26.8 $106.9 $12.9 $22.9 $33.2 $15.7 $84.7 
Margin/insurance policy income17 %16 %18 %17 %17 %8 %14 %20 %9 %13 %
Margin excluding advertising expense/insurance policy income30 %26 %27 %26 %27 %21 %28 %31 %22 %26 %
Total life margin$44.3 $36.1 $47.3 $37.3 $165.0 $27.1 $39.7 $53.2 $30.4 $150.4 


Page 9

CNO FINANCIAL GROUP, INC.
Estimated Impacts of COVID-19 on Insurance Product Margins
(Dollars in millions)
(Unaudited)

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Favorable (Unfavorable)
Insurance product:
Annuities$— $4 $(7)$(1)$(4)$1 $2 $1 $1 $5 
Supplemental health— (4)6 9 11 6 2 8 10 26 
Medicare supplement— 5 36 9 50 9 11 3 9 32 
Long-term care— 3 16 17 36 25 17 14 16 72 
Total health products— 4 58 35 97 40 30 25 35 130 
Interest sensitive life— (1)(3)(5)(9)(7)(4)(1)(4)(16)
Traditional life— (13)(6)(10)(29)(12)(7)(2)(16)(37)
Total life— (14)(9)(15)(38)(19)(11)(3)(20)(53)
Total$— $(6)$42 $19 $55 $22 $21 $23 $16 $82 
Page 10

CNO FINANCIAL GROUP, INC.
Collected Premiums From Annuity and Interest Sensitive Life Products
and Insurance Policy Income
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Collected premiums from annuity and interest-sensitive life products:
Annuities$292.2 $242.7 $285.1 $345.0 $1,165.0 $325.4 $344.3 $333.3 $397.4 $1,400.4 
Interest-sensitive life53.1 51.3 50.0 52.1 206.5 54.5 54.6 54.4 55.9 219.4 
Total collected premiums from annuity and interest-sensitive life products$345.3 $294.0 $335.1 $397.1 $1,371.5 $379.9 $398.9 $387.7 $453.3 $1,619.8 
Insurance policy income:
Annuity products
Fixed index annuities$3.3 $2.6 $2.5 $2.9 $11.3 $3.0 $3.3 $3.3 $3.2 $12.8 
Fixed interest annuities0.3 0.1 0.2 0.3 0.9 0.2 0.1 0.3 0.2 0.8 
Other annuities2.0 1.8 1.6 1.2 6.6 2.2 0.9 2.2 0.7 6.0 
Total annuity insurance policy income5.6 4.5 4.3 4.4 18.8 5.4 4.3 5.8 4.1 19.6 
Health products
Supplemental health169.8 169.8 169.2 170.6 679.4 169.8 170.0 171.2 172.8 683.8 
Medicare supplement192.3 190.3 186.1 186.0 754.7 181.0 179.7 177.4 176.0 714.1 
Long-term care66.9 66.4 66.1 66.0 265.4 65.7 65.7 65.8 66.4 263.6 
Total health insurance policy income429.0 426.5 421.4 422.6 1,699.5 416.5 415.4 414.4 415.2 1,661.5 
Life products
Interest-sensitive life 39.6 38.7 40.1 40.4 158.8 40.8 41.4 42.3 42.6 167.1 
Traditional life 154.5 155.6 162.5 161.6 634.2 169.7 169.4 168.1 168.0 675.2 
Total life insurance policy income194.1 194.3 202.6 202.0 793.0 210.5 210.8 210.4 210.6 842.3 
Total insurance policy income$628.7 $625.3 $628.3 $629.0 $2,511.3 $632.4 $630.5 $630.6 $629.9 $2,523.4 


Page 11

CNO FINANCIAL GROUP, INC.
Health and Life
New Annualized Premiums ("NAP")
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Consumer Division
Health products:
Supplemental health$19.6 $5.6 $16.2 $21.5 $62.9 $14.4 $20.1 $15.8 $19.6 $69.9 
Medicare supplement9.7 8.9 11.0 12.2 41.8 8.2 8.8 8.0 9.1 34.1 
Long-term care5.9 4.3 7.1 7.2 24.5 6.4 7.0 8.8 10.5 32.7 
Total Consumer Division health NAP35.2 18.8 34.3 40.9 129.2 29.0 35.9 32.6 39.2 136.7 
Life products:
Interest sensitive life5.6 5.1 5.8 6.0 22.5 5.9 6.5 5.4 6.1 23.9 
Traditional life33.0 41.5 37.7 29.8 142.0 45.9 43.9 38.2 31.2 159.2 
Total Consumer Division life NAP38.6 46.6 43.5 35.8 164.5 51.8 50.4 43.6 37.3 183.1 
Total Consumer Division health and life NAP$73.8 $65.4 $77.8 $76.7 $293.7 $80.8 $86.3 $76.2 $76.5 $319.8 
Worksite Division
Health products:
Supplemental health$8.8 $3.2 $5.1 $8.2 $25.3 $6.7 $5.6 $6.6 $8.5 $27.4 
Life products:
Interest sensitive life2.5 0.8 0.8 1.3 5.4 1.2 1.9 1.8 2.5 7.4 
Total Worksite Division health and life NAP$11.3 $4.0 $5.9 $9.5 $30.7 $7.9 $7.5 $8.4 $11.0 $34.8 
Total NAP (both divisions)
Health products:
Supplemental health$28.4 $8.8 $21.3 $29.7 $88.2 $21.1 $25.7 $22.4 $28.1 $97.3 
Medicare supplement9.7 8.9 11.0 12.2 41.8 8.2 8.8 8.0 9.1 34.1 
Long-term care5.9 4.3 7.1 7.2 24.5 6.4 7.0 8.8 10.5 32.7 
Total health NAP44.0 22.0 39.4 49.1 154.5 35.7 41.5 39.2 47.7 164.1 
Life products:
Interest sensitive life 8.1 5.9 6.6 7.3 27.9 7.1 8.4 7.2 8.6 31.3 
Traditional life 33.0 41.5 37.7 29.8 142.0 45.9 43.9 38.2 31.2 159.2 
Total life NAP41.1 47.4 44.3 37.1 169.9 53.0 52.3 45.4 39.8 190.5 
Total NAP$85.1 $69.4 $83.7 $86.2 $324.4 $88.7 $93.8 $84.6 $87.5 $354.6 

Page 12

CNO FINANCIAL GROUP, INC.
Computation of Weighted Average Shares Outstanding
(Shares in thousands)


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020 (a)202020202020202020212021202120212021
Basic
Shares outstanding, beginning of period148,084.2 143,610.0 141,718.6 138,931.4 148,084.2 135,279.1 132,268.3 129,105.0 124,269.9 135,279.1 
Weighted average shares issued during the period:
Shares repurchased(2,444.0)(227.2)(835.9)(1,053.9)(6,685.8)(1,471.5)(1,436.5)(2,706.6)(2,382.9)(8,054.5)
Amounts related to employee benefit plans287.5 42.7 19.3 356.2 962.7 384.3 191.1 32.2 131.1 1,350.4 
Shares withheld for the payment of the exercise price and taxes related to employee benefit plans(98.3)(4.0)(1.8)(1.9)(265.4)(52.2)(7.0)(1.3)(1.5)(174.6)
Weighted average basic shares outstanding during the period145,829.4 143,421.5 140,900.2 138,231.8 142,095.7 134,139.7 131,015.9 126,429.3 122,016.6 128,400.4 
Basic shares outstanding, end of period143,610.0 141,718.6 138,931.4 135,279.1 135,279.1 132,268.3 129,105.0 124,269.9 120,377.2 120,377.2 
Diluted
Weighted average basic shares outstanding145,829.4 143,421.5 140,900.2 138,231.8 142,095.7 134,139.7 131,015.9 126,429.3 122,016.6 128,400.4 
Common stock equivalent shares related to:
Employee benefit plans— 519.1 830.2 2,154.7 1,068.1 2,513.6 2,797.8 2,588.7 3,003.0 2,725.8 
Weighted average diluted shares outstanding during the period145,829.4 143,940.6 141,730.4 140,386.5 143,163.8 136,653.3 133,813.7 129,018.0 125,019.6 131,126.2 
Diluted shares outstanding, end of period143,936.2 142,410.1 139,972.2 137,717.3 137,717.3 134,624.5 131,549.3 126,917.6 123,330.7 123,330.7 

___________
(a)     Equivalent common shares of 768.4 were not included in the diluted weighted average shares outstanding due to the net loss recognized in 1Q20.





Page 13

CNO FINANCIAL GROUP, INC.
Annuities - Account Value Rollforwards
(Dollars in millions)
(Unaudited)

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Fixed index annuities
Balance as of the beginning of the period$7,133.1 $7,280.3 $7,394.1 $7,567.2 $7,133.1 $7,761.4 $7,943.2 $8,180.2 $8,403.0 $7,761.4 
Gross deposits281.7 231.5 277.2 331.7 1,122.1 314.6 328.8 320.1 384.6 1,348.1 
Withdrawals(185.8)(148.0)(133.2)(164.6)(631.6)(193.1)(174.2)(179.0)(197.9)(744.2)
Returns reinvested51.3 30.3 29.1 27.1 137.8 60.3 82.4 81.7 91.3 315.7 
Balance as of the end of the period$7,280.3 $7,394.1 $7,567.2 $7,761.4 $7,761.4 $7,943.2 $8,180.2 $8,403.0 $8,681.0 $8,681.0 
Fixed interest annuities
Balance as of the beginning of the period$2,217.5 $2,147.4 $2,089.4 $2,044.3 $2,217.5 $1,998.9 $1,943.2 $1,891.8 $1,854.2 $1,998.9 
Gross deposits9.3 9.0 6.8 12.3 37.4 9.3 14.4 10.2 11.6 45.5 
Withdrawals(94.3)(81.1)(66.1)(71.8)(313.3)(78.2)(78.2)(60.6)(72.0)(289.0)
Returns reinvested14.9 14.1 14.2 14.1 57.3 13.2 12.4 12.8 12.3 50.7 
Balance as of the end of the period$2,147.4 $2,089.4 $2,044.3 $1,998.9 $1,998.9 $1,943.2 $1,891.8 $1,854.2 $1,806.1 $1,806.1 
Total annuities
Balance as of the beginning of the period$9,350.6 $9,427.7 $9,483.5 $9,611.5 $9,350.6 $9,760.3 $9,886.4 $10,072.0 $10,257.2 $9,760.3 
Gross deposits291.0 240.5 284.0 344.0 1,159.5 323.9 343.2 330.3 396.2 1,393.6 
Withdrawals(280.1)(229.1)(199.3)(236.4)(944.9)(271.3)(252.4)(239.6)(269.9)(1,033.2)
Returns reinvested66.2 44.4 43.3 41.2 195.1 73.5 94.8 94.5 103.6 366.4 
Balance as of the end of the period$9,427.7 $9,483.5 $9,611.5 $9,760.3 $9,760.3 $9,886.4 $10,072.0 $10,257.2 $10,487.1 $10,487.1 
Page 14

CNO FINANCIAL GROUP, INC.
Statutory Information - Consolidated Basis (13)
(Dollars in millions)
(Unaudited)


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020 (a)20202020202020202021202120212021 (b)2021 (b)
Net gain from operations before interest expense and federal income taxes$33.3 $99.5 $135.1 $72.6 $340.5 $53.6 $85.1 $96.1 $87.4 $322.2 
Interest expense on surplus debentures held by parent company12.1 12.1 21.0 12.2 57.4 12.0 12.2 19.0 12.2 55.4 
Net gain from operations before federal income taxes21.2 87.4 114.1 60.4 283.1 41.6 72.9 77.1 75.2 266.8 
Federal income tax expense (benefit)(113.0)(6.8)(16.1)(2.5)(138.4)1.8 (2.2)(9.0)(12.5)(21.9)
Net gain from operations before net realized capital gains (losses)134.2 94.2 130.2 62.9 421.5 39.8 75.1 86.1 87.7 288.7 
Net realized capital gains (losses)(3.3)(7.8)0.4 (1.2)(11.9)(0.6)(1.5)(1.3)(7.8)(11.2)
Net income $130.9 $86.4 $130.6 $61.7 $409.6 $39.2 $73.6 $84.8 $79.9 $277.5 
Capital and surplus$1,750.3 $1,771.1 $1,868.1 $1,805.5 $1,805.5 $1,781.8 $1,782.8 $1,715.7 $1,799.6 $1,799.6 
Asset valuation reserve (AVR)236.4 226.7 269.9 304.0 304.0 327.5 330.4 334.8 332.5 332.5 
Capital, surplus and AVR1,986.7 1,997.8 2,138.0 2,109.5 2,109.5 2,109.3 2,113.2 2,050.5 2,132.1 2,132.1 
Interest maintenance reserve (IMR)408.2 410.6 408.2 406.6 406.6 401.5 411.9 409.0 407.9 407.9 
Total statutory capital, surplus, AVR & IMR$2,394.9 $2,408.4 $2,546.2 $2,516.1 $2,516.1 $2,510.8 $2,525.1 $2,459.5 $2,540.0 $2,540.0 
Risk-based capital ratio406 %405 %428 %411 %411 %407 %409 %388 %386 %386 %
___________
(a)    The federal income tax benefit and capital and surplus were favorably impacted by $99 million and $53 million, respectively, related to certain provisions included in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
(b)    Such amounts are preliminary as the statutory basis financial statements of our insurance subsidiaries for 4Q21 will be filed with the respective insurance regulators on or about March 1, 2022.





Page 15

CNO FINANCIAL GROUP, INC.
Investment Income Not Allocated to Product Lines (9)
(Dollars in millions)
(Unaudited)


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Net investment income$169.6 $318.8 $343.5 $390.6 $1,222.5 $338.2 $379.2 $308.2 $395.1 $1,420.7 
Allocated to product lines:
Annuity(117.4)(116.6)(115.6)(115.5)(465.1)(115.7)(114.9)(115.5)(116.3)(462.4)
Health(70.4)(70.1)(70.9)(70.9)(282.3)(71.5)(71.6)(72.2)(72.4)(287.7)
Life(34.3)(34.7)(35.2)(35.4)(139.6)(35.8)(36.1)(36.4)(36.4)(144.7)
Equity returns credited to policyholder account balances136.5 (50.7)(46.0)(77.6)(37.8)(42.5)(76.1)(7.2)(94.0)(219.8)
Amounts allocated to product lines and credited to policyholder account balances(85.6)(272.1)(267.7)(299.4)(924.8)(265.5)(298.7)(231.3)(319.1)(1,114.6)
Amount related to variable interest entities and other non-operating items(11.6)(9.6)(9.8)(8.2)(39.2)(7.8)(8.0)(7.1)(7.6)(30.5)
Interest expense on debt(13.6)(13.6)(13.6)(14.4)(55.2)(15.5)(15.6)(15.6)(15.7)(62.4)
Interest expense on investment borrowings from the Federal Home Loan Bank ("FHLB") program(9.1)(5.8)(3.4)(2.9)(21.2)(2.7)(2.5)(2.3)(2.3)(9.8)
Expenses related to FABN program (a)— — — — — — — — (2.3)(2.3)
Less amounts credited to deferred compensation plans (offsetting investment income)7.7 (9.5)(5.3)(7.9)(15.0)(3.7)(6.6)(1.0)(5.3)(16.6)
Total adjustments(26.6)(38.5)(32.1)(33.4)(130.6)(29.7)(32.7)(26.0)(33.2)(121.6)
Investment income not allocated to product lines$57.4 $8.2 $43.7 $57.8 $167.1 $43.0 $47.8 $50.9 $42.8 $184.5 

___________
(a)    Comprised of interest credited and amortization of deferred acquisition costs.


Page 16

CNO FINANCIAL GROUP, INC.
Investment Income Not Allocated to Product Lines (9)
(Dollars in millions)
(Unaudited)


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Investment income not allocated:
Excluding variable components:
From general account assets$23.3 $26.5 $24.6 $25.2 $99.6 $24.6 $24.9 $23.1 $22.4 $95.0 
Other investment income0.5 0.1 0.1 0.1 0.8 — 0.1 0.1 0.1 0.3 
Spread income:
FHLB program:
Investment income on matched assets13.5 10.9 10.9 10.7 46.0 10.3 10.4 10.3 10.6 41.6 
Interest expense(9.1)(5.8)(3.4)(2.9)(21.2)(2.7)(2.5)(2.3)(2.3)(9.8)
Net spread income on FHLB program4.4 5.1 7.5 7.8 24.8 7.6 7.9 8.0 8.3 31.8 
FABN program:
Investment income on matched assets— — — — — — — — 3.3 3.3 
Expenses (b)— — — — — — — — (2.3)(2.3)
Net spread income on FABN program— — — — — — — — 1.0 1.0 
Interest expense on corporate debt(13.6)(13.6)(13.6)(14.4)(55.2)(15.5)(15.6)(15.6)(15.7)(62.4)
Total excluding variable components 14.6 18.1 18.6 18.7 70.0 16.7 17.3 15.6 16.1 65.7 
Variable components:
Net income from Corporate Owned Life Insurance ("COLI") supporting agent deferred compensation plan:
Change in value of COLI investments3.2 6.4 3.1 3.0 15.7 (3.9)2.1 (0.1)(0.8)(2.7)
Increase in liability for agent deferred compensation plan(1.6)(1.6)(1.6)(1.6)(6.4)(1.6)(1.5)(1.6)(1.6)(6.3)
Net COLI income (loss)1.6 4.8 1.5 1.4 9.3 (5.5)0.6 (1.7)(2.4)(9.0)
Other variable components:
Alternative investment income:
Total17.2 (12.5)27.1 35.0 66.8 34.1 29.0 32.3 22.2 117.6 
Allocated to product lines(7.7)(7.7)(7.9)(8.0)(31.3)(7.9)(7.8)(7.6)(7.4)(30.7)
Excess alternative investment income9.5 (20.2)19.2 27.0 35.5 26.2 21.2 24.7 14.8 86.9 
Prepayment and call income8.9 0.1 2.6 9.1 20.7 1.7 4.9 10.2 11.6 28.4 
Trading account17.3 6.0 2.6 2.2 28.1 2.0 2.4 1.4 1.4 7.2 
Hedge variance related to fixed index products(0.1)3.2 (1.0)(0.4)1.7 1.1 (0.1)0.2 (0.1)1.1 
Other (a)5.6 (3.8)0.2 (0.2)1.8 0.8 1.5 0.5 1.4 4.2 
Total variable components42.8 (9.9)25.1 39.1 97.1 26.3 30.5 35.3 26.7 118.8 
Total investment income not allocated to product lines $57.4 $8.2 $43.7 $57.8 $167.1 $43.0 $47.8 $50.9 $42.8 $184.5 

___________
(a)    Includes impacts of changes in projected cash flows and other investment income.
(b)    Comprised of interest credited and amortization of deferred acquisition costs.

Page 17

CNO FINANCIAL GROUP, INC.
Investment Income Allocated to Product Lines (5)
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
Average net insurance liabilities (11)
Annuity:
Fixed index annuities$6,921.4 $7,056.3 $7,173.9 $7,342.1 $7,123.4 $7,464.8 $7,643.4 $7,881.9 $8,096.7 $7,771.8 
Fixed interest annuities2,146.2 2,088.2 2,041.6 2,000.1 2,069.1 1,951.6 1,899.5 1,856.3 1,813.3 1,880.1 
Other annuities551.5 533.5 524.0 517.9 531.7 512.2 506.8 501.6 495.8 504.1 
Total annuity average net insurance liabilities (11)9,619.1 9,678.0 9,739.5 9,860.1 9,724.2 9,928.6 10,049.7 10,239.8 10,405.8 10,156.0 
Health:
Supplemental health2,887.1 2,935.7 2,988.1 3,031.9 2,960.7 3,073.9 3,117.7 3,157.8 3,193.2 3,135.6 
Medicare supplement102.5 111.6 116.9 114.4 111.3 122.5 123.1 120.6 123.8 122.5 
Long-term care2,482.8 2,464.2 2,477.7 2,487.2 2,478.0 2,492.1 2,498.3 2,503.1 2,511.4 2,501.2 
Total health average net insurance liabilities (11)5,472.4 5,511.5 5,582.7 5,633.5 5,550.0 5,688.5 5,739.1 5,781.5 5,828.4 5,759.3 
Life:
Interest sensitive900.1 913.5 926.7 939.9 920.0 954.7 970.0 983.8 996.9 976.4 
Traditional1,872.5 1,883.5 1,905.9 1,933.2 1,898.8 1,956.5 1,975.4 1,998.4 2,011.0 1,985.3 
Total life average net insurance liabilities (11)2,772.6 2,797.0 2,832.6 2,873.1 2,818.8 2,911.2 2,945.4 2,982.2 3,007.9 2,961.7 
Total average net insurance liabilities (11)$17,864.1 $17,986.5 $18,154.8 $18,366.7 $18,093.0 $18,528.3 $18,734.2 $19,003.5 $19,242.1 $18,877.0 
Average yield on allocated investments
Annuity:
Fixed index annuities4.74 %4.70 %4.63 %4.58 %4.66 %4.55 %4.44 %4.38 %4.34 %4.42 %
Fixed interest annuities5.24 %5.13 %5.04 %5.00 %5.10 %5.00 %4.99 %4.96 %4.96 %4.98 %
Other annuities5.22 %5.17 %5.19 %5.02 %5.15 %5.00 %4.97 %4.94 %4.84 %4.94 %
Average yield on investments allocated to annuities4.88 %4.82 %4.75 %4.69 %4.78 %4.66 %4.57 %4.51 %4.47 %4.55 %
Health:
Supplemental health4.84 %4.76 %4.75 %4.70 %4.76 %4.70 %4.66 %4.67 %4.67 %4.68 %
Medicare supplement4.41 %4.34 %4.33 %4.28 %4.34 %4.30 %4.24 %4.20 %4.20 %4.24 %
Long-term care5.53 %5.52 %5.52 %5.47 %5.51 %5.47 %5.44 %5.43 %5.40 %5.44 %
Average yield on investments allocated to health products5.15 %5.09 %5.08 %5.03 %5.09 %5.03 %4.99 %5.00 %4.97 %5.00 %
Life:
Interest sensitive5.20 %5.12 %5.14 %5.15 %5.15 %5.20 %5.11 %5.12 %5.14 %5.14 %
Traditional4.83 %4.88 %4.89 %4.82 %4.86 %4.78 %4.80 %4.76 %4.69 %4.76 %
Average yield on investments allocated to life products4.95 %4.96 %4.97 %4.93 %4.95 %4.92 %4.90 %4.88 %4.84 %4.89 %
Total average yield4.97 %4.92 %4.88 %4.83 %4.90 %4.81 %4.75 %4.72 %4.68 %4.74 %
Allocated investment income
Annuity:
Fixed index annuities$82.1 $82.9 $83.1 $84.0 $332.1 $84.9 $84.9 $86.3 $87.8 $343.9 
Fixed interest annuities28.1 26.8 25.7 25.0 105.6 24.4 23.7 23.0 22.5 93.6 
Other annuities7.2 6.9 6.8 6.5 27.4 6.4 6.3 6.2 6.0 24.9 
Total investment income allocated to annuities117.4 116.6 115.6 115.5 465.1 115.7 114.9 115.5 116.3 462.4 
Health:
Supplemental health34.9 34.9 35.5 35.6 140.9 36.1 36.3 36.9 37.3 146.6 
Medicare supplement1.2 1.2 1.2 1.3 4.9 1.3 1.3 1.3 1.2 5.1 
Long-term care34.3 34.0 34.2 34.0 136.5 34.1 34.0 34.0 33.9 136.0 
Total investment income allocated to health products70.4 70.1 70.9 70.9 282.3 71.5 71.6 72.2 72.4 287.7 
Life:
   Interest sensitive11.7 11.7 11.9 12.1 47.4 12.4 12.4 12.6 12.8 50.2 
Traditional22.6 23.0 23.3 23.3 92.2 23.4 23.7 23.8 23.6 94.5 
Total investment income allocated to life products34.3 34.7 35.2 35.4 139.6 35.8 36.1 36.4 36.4 144.7 
Total allocated investment income$222.1 $221.4 $221.7 $221.8 $887.0 $223.0 $222.6 $224.1 $225.1 $894.8 
Page 18

CNO FINANCIAL GROUP, INC.
Investment Income Not Allocated to Product Lines (9)
(Dollars in millions)
(Unaudited)

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2020202020202020202020212021202120212021
General account assets investment income$280.3 $231.7 $276.9 $290.1 $1,079.0 $282.7 $282.1 $289.5 $285.9 $1,140.2 
Policyholder and other special purpose portfolio investment income(110.7)87.1 66.6 100.5 143.5 55.5 97.1 18.7 109.2 280.5 
Less equity returns credited to policyholders:
Annuity119.9 (44.9)(39.3)(68.0)(32.3)(37.7)(68.3)(6.3)(83.2)(195.5)
Life16.6 (5.8)(6.7)(9.6)(5.5)(4.8)(7.8)(0.9)(10.8)(24.3)
Less amount related to variable interest entities(11.6)(9.6)(9.8)(8.2)(39.2)(7.8)(8.0)(7.1)(7.6)(30.5)
Less amounts credited to deferred compensation plans7.7 (9.5)(5.3)(7.9)(15.0)(3.7)(6.6)(1.0)(5.3)(16.6)
Other special purpose portfolio investment income21.9 17.3 5.5 6.8 51.5 1.5 6.4 3.4 2.3 13.6 
Adjusted net investment income302.2 249.0 282.4 296.9 1,130.5 284.2 288.5 292.9 288.2 1,153.8 
Less amounts allocated to product lines
Annuity(117.4)(116.6)(115.6)(115.5)(465.1)(115.7)(114.9)(115.5)(116.3)(462.4)
Health(70.4)(70.1)(70.9)(70.9)(282.3)(71.5)(71.6)(72.2)(72.4)(287.7)
Life(34.3)(34.7)(35.2)(35.4)(139.6)(35.8)(36.1)(36.4)(36.4)(144.7)
Total investment income allocated to product lines(222.1)(221.4)(221.7)(221.8)(887.0)(223.0)(222.6)(224.1)(225.1)(894.8)
Less interest expense on investment borrowings from FHLB program(9.1)(5.8)(3.4)(2.9)(21.2)(2.7)(2.5)(2.3)(2.3)(9.8)
Less expenses related to FABN program— — — — — — — — (2.3)(2.3)
Less interest expense on debt(13.6)(13.6)(13.6)(14.4)(55.2)(15.5)(15.6)(15.6)(15.7)(62.4)
Investment income not allocated to product lines$57.4 $8.2 $43.7 $57.8 $167.1 $43.0 $47.8 $50.9 $42.8 $184.5 

Other Investment Data

1Q2Q3Q4Q1Q2Q3Q4Q
20202020202020202021202120212021
Average invested assets and cash$22,483.7 $22,618.1 $22,832.1 $23,170.3 $23,418.7 $23,585.3 $23,936.9 $24,696.3 
Net investment income from general account investments280.3 231.7 276.9 290.1 282.7 282.1 289.5 285.9 
New money rate (14)4.46 %4.49 %4.08 %3.58 %3.57 %3.38 %3.55 %3.67 %
Book yield4.90 %4.88 %4.85 %4.81 %4.76 %4.71 %4.63 %4.59 %
Earned yield5.15 %4.23 %5.04 %5.22 %5.03 %4.97 %5.03 %4.83 %
Pre-pay/call/make-whole income$8.9 $0.1 $2.6 $9.1 $1.7 $4.9 $10.2 $11.6 
Alternative investment income17.2 (12.5)27.1 35.0 34.1 29.0 32.3 22.2 
Impairments8.1 — — — 0.5 — — 2.4 



Page 19

CNO FINANCIAL GROUP, INC.
4Q21 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 4Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.

Three months ended
December 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$93.9 $(26.9)(a)$67.0 
Health margin129.5 — 129.5 
Life margin30.4 1.0 (a)31.4 
Total insurance product margin253.8 (25.9)227.9 
Allocated expenses(143.3)— (143.3)
Income from insurance products (5)110.5 (25.9)84.6 
Fee income2.9 — 2.9 
Investment income not allocated to product lines (9)42.8 — 42.8 
Expenses not allocated to product lines(17.4)— (17.4)
Operating earnings before taxes138.8 (25.9)112.9 
Income tax (expense) benefit on operating income(30.3)5.7 (24.6)
Net operating income (10)$108.5 $(20.2)$88.3 
Net operating income per diluted share$0.87 $(0.16)$0.71 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.


CNO FINANCIAL GROUP, INC.
3Q21 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 3Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
September 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$52.5 $— $52.5 
Health margin117.9 — 117.9 
Life margin53.2 — 53.2 
Total insurance product margin223.6 — 223.6 
Allocated expenses(140.5)— (140.5)
Income from insurance products (5)83.1 — 83.1 
Fee income2.6 — 2.6 
Investment income not allocated to product lines (9)50.9 — 50.9 
Expenses not allocated to product lines(17.3)3.0 (a)(14.3)
Operating earnings before taxes119.3 3.0 122.3 
Income tax (expense) benefit on operating income(26.5)(0.7)(27.2)
Net operating income (10)$92.8 $2.3 $95.1 
Net operating income per diluted share$0.72 $0.02 $0.74 
___________
(a)Comprised of $3.0 million from legal and regulatory matters.
Page 20


CNO FINANCIAL GROUP, INC.
2Q21 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 2Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
June 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$66.0 $— $66.0 
Health margin120.9 — 120.9 
Life margin39.7 — 39.7 
Total insurance product margin226.6 — 226.6 
Allocated expenses(141.6)— (141.6)
Income from insurance products (5)85.0 — 85.0 
Fee income6.6 — 6.6 
Investment income not allocated to product lines (9)47.8 — 47.8 
Expenses not allocated to product lines(23.8)4.5 (a)(19.3)
Operating earnings before taxes115.6 4.5 120.1 
Income tax (expense) benefit on operating income(26.5)(1.0)(27.5)
Net operating income (10)$89.1 $3.5 $92.6 
Net operating income per diluted share$0.66 $0.03 $0.69 
___________
(a)Comprised of $4.5 million from legal and regulatory matters.


Page 21

CNO FINANCIAL GROUP, INC.
1Q21 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 1Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
March 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$57.9 $— $57.9 
Health margin124.7 — 124.7 
Life margin27.1 — 27.1 
Total insurance product margin209.7 — 209.7 
Allocated expenses(141.1)— (141.1)
Income from insurance products (5)68.6 — 68.6 
Fee income7.3 — 7.3 
Investment income not allocated to product lines (9)43.0 — 43.0 
Expenses not allocated to product lines(22.0)7.8 (a)(14.2)
Operating earnings before taxes96.9 7.8 104.7 
Income tax (expense) benefit on operating income(21.7)(1.7)(23.4)
Net operating income (10)$75.2 $6.1 $81.3 
Net operating income per diluted share$0.55 $0.04 $0.59 
___________
(a)Comprised of: (i) $5.3 million from legal and regulatory matters; and (ii) $2.5 million of transaction expenses related to the previously announced acquisition of DirectPath, LLC. The legal and regulatory matters primarily consist of an increase to our liability for claims and interest pursuant to the Global Resolution Agreement, as we have now processed and verified most of the claims provided by the third party auditor allowing us to more accurately estimate the ultimate liability.


Page 22

CNO FINANCIAL GROUP, INC.
4Q20 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 4Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.

Three months ended
December 31, 2020
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$68.1 $(16.1)(a)$52.0 
Health margin125.2 — 125.2 
Life margin37.3 4.3 (a)41.6 
Total insurance product margin230.6 (11.8)218.8 
Allocated expenses(162.7)— (162.7)
Income from insurance products (5)67.9 (11.8)56.1 
Fee income2.9 — 2.9 
Investment income not allocated to product lines (9)57.8 — 57.8 
Expenses not allocated to product lines(17.8)3.7 (b)(14.1)
Operating earnings before taxes110.8 (8.1)102.7 
Income tax (expense) benefit on operating income(24.8)1.7 (23.1)
Net operating income (10)$86.0 $(6.4)$79.6 
Net operating income per diluted share$0.61 $(0.04)$0.57 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.
(b)Unfavorable impact related to asset impairments.


Page 23

CNO FINANCIAL GROUP, INC.
2Q20 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 2Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.

Three months ended
June 30, 2020
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$123.8 $40.0 (a)$72.3 
(91.5)(a)
Health margin95.5 — 95.5 
Life margin36.1 5.6 (a)41.7 
Total insurance product margin255.4 (45.9)209.5 
Allocated expenses(128.1)— (128.1)
Income from insurance products (5)127.3 (45.9)81.4 
Fee income5.2 — 5.2 
Investment income not allocated to product lines (9)8.2 — 8.2 
Expenses not allocated to product lines(38.5)23.5 (b)(15.0)
Operating earnings before taxes102.2 (22.4)79.8 
Income tax (expense) benefit on operating income(22.8)4.7 (18.1)
Net operating income (10)$79.4 $(17.7)$61.7 
Net operating income per diluted share$0.55 $(0.12)$0.43 
___________
(a)Given our expectation that interest rates will remain low for the long-term, we performed an actuarial unlocking exercise in the second quarter of 2020 to reflect our assumption that average new money rates will remain flat at 4 percent forever. This change and the related impacts to persistency assumptions had a $45.6 million unfavorable impact on pre-tax earnings. As part of the actuarial unlocking exercise, we also changed our assumptions related to the future option costs we incur in providing benefits on fixed index annuities which had a favorable impact on pre-tax earnings of $91.5 million. The impact of these changes in assumptions is summarized below (dollars in millions):
Line of business
Fixed index annuitiesFixed interest annuitiesInterest- sensitive lifeTotal
Favorable (unfavorable)
Impacts of an average new money rate assumption of 4 percent
Insurance policy benefits$(5.0)$— $(7.4)$(12.4)
Amortization(25.6)(9.4)1.8 (33.2)
Subtotal(30.6)(9.4)(5.6)(45.6)
Impacts of changes in future option costs
Insurance policy benefits104.8 — — 104.8 
Amortization(13.3)— — (13.3)
Subtotal91.5 — — 91.5 
Impact on pre-tax income$60.9 $(9.4)$(5.6)$45.9 

This actuarial unlocking exercise did not replace our comprehensive annual review of all assumptions for our insurance products, which we completed in the fourth quarter of 2020.
(b)We increased our liability for claims and interest pursuant to the previously disclosed Global Resolution Agreement entered into in November 2018. Pursuant to this agreement, a third-party auditor is acting on behalf of 41 states and the District of Columbia for the purpose of identifying deceased insureds and contract holders where benefits are payable pursuant to unclaimed property laws. The third-party auditor has provided information that we have processed and verified allowing us to more accurately estimate the ultimate liability pursuant to this agreement.



Page 24


Notes

(1)Excludes accumulated other comprehensive income. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.

(2)Shareholders' equity divided by common shares outstanding.

(3)Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period.

(4)Insurance margin is management’s measure of profitability of its annuity, health and life product lines’ performance and consists of premiums plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs. Income from insurance products is the sum of the insurance margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of results of our insurance product lines. Income from insurance products, a non-GAAP measure, is a component of net operating income, which is reconciled to net income on page 5 of this Quarterly Financial Supplement.

(5)Investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. See note (11) for definition of net insurance liabilities.

(6)Excludes the change in market values of the underlying options supporting the fixed index annuity products and corresponding amount credited to policyholder account liabilities. Such amounts were $(119.9) million, $44.9 million, $39.3 million, $68.0 million, $37.7 million, $68.3 million, $6.3 million and $83.2 million in 1Q20, 2Q20, 3Q20, 4Q20, 1Q21, 2Q21, 3Q21 and 4Q21, respectively.

(7)Excludes the change in market values of the underlying options supporting the fixed index life products and corresponding amount credited to policyholder account liabilities. Such amounts were $(16.6) million, $5.8 million, $6.7 million, $9.6 million, $4.8 million, $7.8 million, $.9 million and $10.8 million in 1Q20, 2Q20, 3Q20, 4Q20, 1Q21, 2Q201, 3Q21 and 4Q21, respectively.

(8)Income from insurance products is the sum of the insurance margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of results of our insurance product lines. Income from insurance products, a non-GAAP measure, is a component of net operating income, which is reconciled to net income on page 5 of this Quarterly Financial Supplement.

(9)Investment income not allocated to product lines is defined as net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) interest expense on notes payable and investment borrowings; and (iv) certain expenses related to benefit plans that are offset by special-purpose investment income. Investment income not allocated to product lines includes investment income on investments in excess of average net insurance liabilities, investments held by our holding companies, the spread we earn from our Federal Home Loan Bank investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income from company-owned life insurance ("COLI") and variations in income from alternative investments), net of interest expense.

(10)Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and change in allowance for credit losses, net of related amortization and taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss related to reinsurance transaction, net of taxes; (vi) loss on extinguishment of debt, net of taxes; (vii) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes (“Net operating income,” a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals.

(11)Net insurance liabilities are equal to total insurance liabilities less: (i) amounts related to reinsured business; (ii) deferred acquisition costs; (iii) present value of future profits; and (iv) the value of unexpired options credited to insurance liabilities.

(12)Margin/average net insurance liabilities for quarterly periods is calculated by annualizing the quarters' margin divided by the average net insurance liabilities.

(13)Based on statutory accounting practices prescribed or permitted by regulatory authorities for CNO Financial's insurance subsidiaries after appropriate elimination of intercompany accounts among such subsidiaries. Such accounting practices differ from GAAP.

(14)The new money rate is for the investments purchased during the period to support our insurance products and capital. It excludes the new money rate on investments purchased with investment borrowings under our Federal Home Loan Bank program and investments purchased by the variable interest entities.

Page 25
Fourth Quarter 2021 Financial and operating results for the period ended December 31, 2021 February 8, 2022 Unless otherwise specified, comparisons in this presentation are between 4Q20 and 4Q21. Exhibit 99.3

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 2 Important Legal Information 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 forward-looking statements are not guarantees of future performance, and actual results may differ materially. Investors should consider the important risks and uncertainties that may cause actual results to differ, including those included in our press release issued on February 8, 2022, our Quarterly Reports on Form 10-Q, our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission. We assume no obligation to update this presentation, which speaks as of today’s date. Forward-Looking Statements 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 are included in the Appendix, or on the page such measure is presented. While management believes the measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered substitutes for the most directly comparable GAAP measures. Additional information concerning non-GAAP measures is included in our periodic filings with the Securities and Exchange Commission that are available in the “Investors – SEC Filings” section of CNO’s website, CNOinc.com. Non-GAAP Measures

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 3

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 4 2021 Year in Review Strong Operational Performance • Operating EPS1 of $2.79 vs. $2.53 in 2020, up 10% • Continued execution of Transformation objectives • Deepened integration between D2C / field agents • Enhanced attractiveness of Worksite product / service offering • Prudently managed expenses • Invested in associate programs; DE&I and ESG progress • Generated $380 million in free cash flow • Returned $468 million to shareholders • Record $402 million in share repurchases • Book value per diluted share excluding AOCI1 up 12% • Operating ROE1, as adjusted, of 12.1% • Investment portfolio remains conservatively positioned 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Building on Track Record of Execution Strong earnings; solid operational execution; record buybacks

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 5 Quarter in Review Strong Operational Performance • Moved closer to target capital levels • Returned $116 million to shareholders • $100 million in share repurchases • Established FABN program; funded $500 million (additional $900 million in January 2022) • AM Best upgrade to A in January 2022 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Building on Track Record of Execution • Operating EPS1 of $0.87, up $0.26, or 43% • Solid production / premium collections • Expenses in-line with expectations • Underlying insurance product margin stable Robust earnings; stable insurance margins

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 6 4Q FY 1Q 2Q 3Q 4Q FY vs. 4Q20 vs. FY20 New Annualized Premiums1 Life $37.1 $169.9 $53.0 $52.3 $45.4 $39.8 $190.5 7.3% 12.1% Health 49.1 154.5 35.7 41.5 39.2 47.7 164.1 -2.9% 6.2% Total Life and Health $86.2 $324.4 $88.7 $93.8 $84.6 $87.5 $354.6 1.5% 9.3% Collected Premiums Life $212.5 $839.6 $226.5 $223.4 $222.2 $223.7 $895.8 5.3% 6.7% Health 421.6 1,691.6 424.7 410.6 407.3 416.9 1,659.5 -1.1% -1.9% Total Life and Health $634.1 $2,531.2 $651.2 $634.0 $629.5 $640.6 $2,555.3 1.0% 1.0% Annuity Collected Premiums $345.0 $1,165.0 $325.4 $344.3 $333.3 $397.4 $1,400.4 15.2% 20.2% Client Assets in BD and Advisory2 $2,311.6 $2,311.6 $2,444.6 $2,636.0 $2,693.1 $2,898.5 $2,898.5 25.4% 25.4% Fee Revenue 3 $36.6 $106.0 $32.3 $31.1 $28.0 $56.2 $147.6 53.6% 39.2% % Change2020 2021 Growth Scorecard E xp a nd t o th e R ig h t D ri ve G ro w th 1 Measured as 100% of new life and health annualized premiums, except for single premium whole life deposits, which are measured at 10% of annualized premium. 2 Client assets include cash and securities in brokerage, broker/dealer customer account assets custodied directly at fund companies and insurance carriers, and assets under management in advisory accounts. Prior periods have been restated to conform with current presentation. 3 Represents fee revenue from the sales of third-party insurance products; services provided by WBD; fees generated by our broker-dealer and registered investment advisor. Beginning in 1Q21, such amount includes fee revenue earned by DirectPath. (dollars in millions) All five metrics up year-over-year - 4Q and full year; most exceeding FY19 levels

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 7 Consumer Division Update Fourth Quarter HighlightsKey Initiatives Transformation continues to drive sales momentum Expand reach Maintain growth momentum Optimize distribution • Total Life sales up 4% YoY; up 22% vs. 4Q19 • D2C Life sales up 21% YoY; up 33% vs. 4Q19 • Annuity collected premiums up 15% YoY; up 23% vs. 4Q19 • Third-party sales up 24% YoY; up 31% vs. 4Q19 • Cross-channel collaboration extended to Health • Agent productivity strength; recruiting headwinds • Registered agent1 count up 2% • Successful Medicare Advantage selling season • 50% of Life and Health NAP sold virtually • Steady growth in client assets in brokerage and advisory 1 Registered agents are dually licensed as insurance agents and financial representatives who can buy and sell securities for clients, and/or investment advisors who can provide ongoing investment advice for clients.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 8 Worksite Division Update Fourth Quarter Highlights • Life and Health sales up 16% YoY; up 31% sequentially • Fee revenue up 125%, driven by the addition of DirectPath • Stable employer base and premium collection • Continued DirectPath / WBD cross sale success • Average client size increasing • Rising Per Employee Per Month (PEPM) metrics Key Initiatives Expand reach • Productivity gains across all cohorts • Early success with incentive programs for new agents • Strong veteran agent retention Restore growth Optimize distribution Sales rebuilding; COVID continues to slow pace of recovery

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 9 Excess Capital Allocation Strategy Disciplined and opportunistic approach to maximize shareholder value Organic investments to sustain and grow the core businesses • Agent pilots, technology-driven customer experience enhancements • Hybrid distribution • Worksite B2B marketing, lead generation Return capital to shareholders • Share repurchases: $100 million in 4Q21, record $402 million in 2021 • Dividends: $16 million in 4Q21, $66 million in 2021 Opportunistic transactions • Highly selective M&A • CNO Ventures; strategic minority investments largely in InsurTech • LTC reinsurance (2018), Web Benefits Design (2019), DirectPath (2021)

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 10 Financial Highlights Strong earnings, disciplined expense and capital management Earnings ResultsFourth Quarter 2021 Net operating income1 $86.0 $108.5 $362.3 $365.6 Net operating income excluding significant items1 $79.6 $88.3 $338.2 $357.3 Net income $111.8 $115.8 $301.8 $441.0 Weighted average shares outstanding (in millions) 140.4 125.0 143.2 131.1 (dollars in millions, except where noted) Net operating earnings per share1 • 4Q21 Operating EPS1 of $0.87 vs. $0.61 in 4Q20 • More favorable significant items - up $18 million • Higher insurance product margin2 - up $9 million, primarily due to favorable economic impacts in annuities, partially offset by $3 million lower net favorable COVID impacts • Lower total expenses2 - down $16 million / 9% • Lower NII not allocated to products - down $15 million • Lower weighted average diluted shares - down 11% • 4Q21 Operating EPS1 ex. significant items of $0.71 vs. $0.57 in 4Q20, up 25% 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. 2 Excluding significant items. Excluding significant items $0.61 $0.87 $2.53 $2.79 4Q20 4Q21 FY20 FY21 $0.57 $2.36 $0.71 $2.72 Full Year 2021 • 2021 Operating EPS1 of $2.79 vs. $2.53 in 2020 • Less favorable significant items - down $20 million • Higher insurance product margin2 - up $24 million, primarily due to higher net COVID benefit • Higher NII not allocated to products - up $17 / 10% • Higher total expenses2 - up $17 million / 3% • Lower weighted average diluted shares - down 8% • 2021 Operating EPS1 ex. significant items of $2.72 vs. $2.36 in 2020, up 15% • Operating ROE1 ex. significant items, as adjusted, of 11.8%

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 11 4Q 2021 Highlights1 $52.0 $57.9 $66.0 $52.5 $67.0 $41.6 $27.1 $39.7 $53.2 $31.4 $125.2 $124.7 $120.9 $117.9 $129.5 Insurance Product Margin (dollars in millions) Continued net COVID benefit; stable underlying margins Insurance Product Margin Excluding Significant Items1 4Q20 1Q21 2Q21 3Q21 4Q21 Annuity Health Life Total Margin $218.8 $209.7 $226.6 $223.6 $227.9 2.11% 2.33% 2.63% 2.05% 2.58% Margin / average net insurance liabilities Margin / insurance policy income 30% 30% 29% 28% 31% ISL: Margin / average net insurance liabilities 0.17% 0.80% 0.66% 0.69% 0.52% ISL: Underwriting margin / insurance policy income 36% 30% 37% 43% 34% Trad: Margin / insurance policy income 17% 8% 14% 20% 9% Trad: Margin ex. Adv. Exp. / insurance policy income 26% 21% 28% 31% 22% • Total margin up $9 million, or 4% • Net favorable COVID impact of $16 million vs. net favorable $19 million in 4Q20 • Underlying product margins excluding COVID up $12 million, or 6% • Annuity margin up $15 million, or 29% • Favorable COVID impact of $1 million vs. unfavorable $1 million in 4Q20 • Favorable fixed indexed annuity reserve changes driven by equity and interest rate markets • Favorable non-COVID mortality on Other Annuities • Health margin up $4 million, or 3% • COVID impact largely unchanged vs. 4Q20 • Life margin down $10 million, or 25% • Unfavorable COVID impact of $20 million vs. unfavorable $15 million in 4Q20 • Non-deferred advertising expense up $6 million1 Excludes $16.1 million favorable annuity unlocking/$4.3 million unfavorable life unlocking in 4Q20 and $26.9 million favorable annuity unlocking/$1.0 million unfavorable life unlocking in 4Q21. See the Appendix for a reconciliation to the corresponding GAAP measure.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 12 $- $100.0 $200.0 $300.0 $400.0 4Q 2020 4Q 2021 Investment Income Not Allocated to Product Lines $- $100.0 $200.0 $300.0 $400.0 4Q 2020 4Q 2021 Total Net Investment Income1 Annuity Health Life Not Allocated $- $100.0 $200.0 $300.0 $400.0 4Q 2020 4Q 2021 Investment Income Allocated to Product Lines Annuity Health Life Investment Results • Average yield on allocated investments of 4.68% vs. 4.72% in 3Q21 and 4.83% in 4Q20 • New money rate of 3.67%, up from 3.55% in 3Q21 • $683 million in new money investments with average rating of A- and average duration of 11.4 years 1 Reflects sum of allocated and non-allocated investment income. Refer to pages 16-19 of the financial supplement for more information on the components of net investment income. $221.8 $225.1 $267.9$279.6 $42.8$57.8 • Invested assets up 5% YoY • 460 bps reduction in BBB/HY since 12/31/2020 • Earned yield of 4.83% vs. 5.03% in 3Q21 and 5.22% in 4Q20 • Investment Income Not Allocated to Product Lines down $15 million YoY • Moderating alternatives performance • $3 billion FABN program • October 2021 - $500 million inaugural issuance • January 2022 - $900 million issuance (dollars in millions) Solid investment income performance; strong but moderating variable results

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 13 IG Corporates, 51.1% Non-Agency RMBS, 7.4% Mortgage Loans, 4.5% HY Corporates, 3.0% CMBS, 8.3% Municipals, 10.5% ABS, 4.1% Govts/Agency, 1.3% CLO, 2.1% Equities, 0.5% Other Invested Assets, 2.1% Alternatives, 2.1% Policy Loans, 0.4% Cash, 2.6% Portfolio Composition $29 billion of Invested Assets Highlights (Fair Value as of 12/31/2021) General Approach • Positioned for stable performance across credit cycles • Focus on quality • Lower than average allocation to most higher risk categories • Low impairments through multiple cycles • $25.3 billion of assets with high degree of liquidity • 65% of portfolio in corporate and government bonds • Strong credit risk profile • 95.4% rated NAIC 1 / 2 • Portfolio average rating A • Significant credit enhancement in structured products • Diversified commercial and residential mortgages with favorable performance metrics and strong operating characteristics. No commercial delinquencies, immaterial residential delinquencies. • Alternative investments emphasizing current cash flows and comparatively predictable results High quality, balanced earnings and risks

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 14 Cash Flow Profile 4Q free cash flow reflects impact from NAIC changes; FABN issuance (dollars in millions) 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. 2 Cash flows exclude acquisitions, dividend payments, stock repurchases, and financing transactions.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 15 Capital and Liquidity Overview 1 The ratio of the combined capital of the insurance companies to the minimum amount of capital appropriate to support the overall business operations, as determined based on the methodology developed by the National Association of Insurance Commissioners. 2 Excluding accumulated other comprehensive income (a non-GAAP measure). See the Appendix for a reconciliation to the corresponding GAAP measure. Debt to Capital2 Consolidated Risk Based Capital (RBC) Ratio1  Target leverage of 25.0 - 28.0%  Debt covenant ceiling of 35%  Debt capacity within limit of target leverage $151 million  Targeted consolidated RBC ratio of approximately 375%  Intentionally moving to point estimate  RBC variability can be expected in periods of market volatility Holding Company Liquidity  Minimum targeted holding company liquidity of $150 million  Liquidity bolstered by $250 million undrawn revolver  No outstanding debt maturities until 2025 Balanced approach to capital structure; strong liquidity (dollars in millions) 408% 411% 386% 2019 2020 2021 $186.7 $388.1 $248.6 2019 2020 2021 23.0% 25.6% 25.6% 2019 2020 2021

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 16 2022 Outlook Sales  Continued positive momentum Earnings Free Cash Flow / Excess Capital  Free cash flow expected to be lower than recent trend reflecting diminishing COVID impacts and alternative investment returns, capital strain from new business, and the ramp up of the FABN program  Free cash flow conversion rate to remain strong  Target 375% consolidated RBC ratio  Move closer to $150 million minimum holdco liquidity target  COVID-related • Continued net favorable impact, tapering over the course of the year  Investment income • Allocated to products: relatively flat as asset growth is mostly offset by declining yield • Not allocated to products: lower than recent periods as alternative yields are expected to moderate  Fee income • Trending upward  Expenses (excluding significant items) • Expected to be modestly higher as operating efficiencies are offset by investments in growth

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 17 Delivering on our Commitments Turnaround / De-risking Pivot to Growth Optimize Long-term Value Pre 2017 2017 – 2019 2020 – ? Ongoing • Reinsured life block (2009) • Recapitalized company (2012) • Initiated dividend (2012) • Sold Legacy Life Insurance Block (2014) • Migrated ratings upwards–within non-investment grade ratings classes • Completed Senior Leadership additions • Reinsured LTC block • Achieved investment grade credit ratings • Up-in-quality portfolio repositioning • Sustainable momentum in recruiting and sales • Benefiting from diverse business model and strong retention • Balancing capital return with investments in growth • Conservative capital structure • Up-in-quality investment positioning • Successfully pivoting to new sales approaches • Accelerating integration of D2C and exclusive agents • Expanding D2C offerings • Reimagining future workplace • Optimize customer-centric business alignment • Expand omnichannel delivery model • Extract potential from Worksite business • Enhance growth, margin and ROE profile • Maximize distributable cash flow • Accelerate pace of capital deployment • Leverage technology COVID-19

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 18 Well-positioned in underserved senior middle-income market Highly differentiated business model Favorable demographic tailwinds Sustainable growth initiatives in place Strong balance sheet; robust free cash flow generation Investment Highlights

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 19 Questions and Answers

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 20 Appendix 1: Quarter in Review Strong Operational Performance • Broker-Dealer/Registered Investment Advisor Slide 21 • Exclusive Agent Counts Slide 22 Building on Strong Track Record of Execution • New Money Rate Walk Slide 23 • New Money Summary Slide 24 • Long-Term Care Insurance Slide 25 • Tax Asset Summary Slide 26

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 21 Broker-Dealer/Registered Investment Advisor 1 Client assets include cash and securities in brokerage, broker/dealer customer account assets custodied directly at fund companies and insurance carriers, and assets under management in advisory accounts. Prior periods have been restated to conform with current presentation. Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc. Non-affiliated insurance products are offered through Bankers Life General Agency, Inc. (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA). Agents who are financial advisors are registered with Bankers Life Securities, Inc. Securities and variable annuity products and services are offered by Bankers Life Securities, Inc. Member FINRA/SIPC, (dba BL Securities, Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services are offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Home Office: 111 East Wacker Drive, Suite 1900, Chicago, IL 60601 (dollars in millions) Account values up 25% YoY; $2.9 billion in client assets 2020 4Q 1Q 2Q 3Q 4Q Net New Client Assets in Brokerage 3.0$ (12.4)$ 2.2$ (23.0)$ 9.0$ Brokerage and Advisory1 Advisory 43.9 74.2 69.9 66.0 67.5 Total 46.9$ 61.8$ 72.1$ 43.0$ 76.5$ Client Assets in Brokerage and Brokerage 1,520.9$ 1,560.3$ 1,635.3$ 1,639.0$ 1,734.0$ Advisory1 at end of period Advisory 790.7 884.3 1,000.7 1,054.1 1,164.5 Total 2,311.6$ 2,444.6$ 2,636.0$ 2,693.1$ 2,898.5$ 2021

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 22 2020 % Change Consumer 4Q 1Q 2Q 3Q 4Q Y/Y Producing Field Agents1,3 4,539 4,389 4,360 4,168 4,008 -11.7% Producing Tele-Sales Agents1,3 257 258 247 235 220 -14.4% Total Producing Agents1,3 4,796 4,647 4,607 4,403 4,228 -11.8% Registered Agents2,3 641 646 639 646 655 2.2% Worksite Producing Field Agents1,3 255 241 258 229 227 -11.0% 2021 Exclusive Agent Counts 1 Producing agents represent the monthly average of exclusive agents that have submitted at least one policy in the month. 2 Registered agents are dually licensed as insurance agents and financial representatives who can buy and sell securities for clients, and/or investment advisors who can provide ongoing investment advice for clients. 3 Agent and representative counts represent the average of the last 3 months. Labor market conditions impacting new agent recruiting; veteran agent retention strong

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 23 New Money Rate Walk 4Q NMR up 12 bps QoQ due to selective direct investments, higher market yields

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 24 IG Corporates 38% Structured Securities 30% Municipals 18% HY Corporates 4% CML 6% Direct investment 4% Allocation $ Allocation% Yield Average Rating Average Duration IG Corporates 262 38.3% 3.36% BBB+ 15.8 Structured Securities 203 29.7% 3.55% A 6.9 Municipals 125 18.3% 3.18% AA- 15.4 HY Corporates 28 4.2% 4.42% B+ 4.8 CML 38 5.6% 3.36% A 6.0 Direct investment 27 4.0% 9.38% NR - Total 683 100% 3.67% A- 11.4 New Money Summary Continued up-in-quality bias during fourth quarter 90% Investment Grade Fourth Quarter Investments

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 25  New sales (~$30 million annually) focused on short duration products – 99% of new sales for policies with 2 years or less in benefits – Average benefit period of 12 months – New business 25% reinsured since 2008  Reserve assumptions informed by historical experience – No morbidity improvement – No mortality improvement – Minimal future rate increases – New money rates reflect a low for long environment  Favorable economic profile – 2021 Loss Recognition Testing margin increased to $376 million or ~15% of Net GAAP Liabilities driven by margin from new business – Statutory reserves ~$210 million higher than LTC Net GAAP Liabilities, which are currently ~$2.51 billion – Total LTC is just 12% of overall CNO insurance liabilities – Potential adverse impact from severe stress scenarios is significantly reduced – Average maximum benefit at issuance is $143 per day for inforce block Long-Term Care Insurance Highly differentiated inforce block; prudently managed

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 26 Non-Life NOLs $242 DTAs related to tax strategy $158 Value of NOLs and deferred tax assets (DTAs) related to tax strategy Details • Total estimated economic value of tax assets related to our NOLs and tax strategy of approximately $263 million @ 10% discount rate ($2.13 on a per share basis). • Life NOLs have been fully utilized. Non- life NOLs are expected to offset 100% of non-life taxable income and 35% of life taxable income through 2023. $400 (dollars in millions) Tax Asset Summary as of December 31, 2021 $400 million/$3.24 per diluted share value of NOLs and DTAs related to tax strategy

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 27 Appendix 2: Financial Exhibits • Non-GAAP Financial Measures Slides 28-46

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 28 The table below summarizes the financial impact of significant items on our 4Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 4Q21 Significant Items (dollars in millions, except per-share amounts) (1) Adjustments arising from our comprehensive annual actuarial review of assumptions. (2) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 93.9$ (26.9)$ (1) 67.0$ Health 129.5 - 129.5 Life 30.4 1.0 (1) 31.4 Total insurance product margin 253.8 (25.9) 227.9 Allocated expenses (143.3) - (143.3) Income from insurance products 110.5 (25.9) 84.6 Fee income 2.9 - 2.9 Investment income not allocated to product lines 42.8 - 42.8 Expenses not allocated to product lines (17.4) - (17.4) Operating earnings before taxes 138.8 (25.9) 112.9 Income tax expense on operating income (30.3) 5.7 (24.6) Net operating income (2) 108.5$ (20.2)$ 88.3 Net operating income per diluted share (2) 0.87$ (0.16)$ 0.71$ Three months ended December 31, 2021 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 29 The table below summarizes the financial impact of significant items on our 3Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 3Q21 Significant Items (dollars in millions, except per-share amounts) (1) Comprised of $3.0 million from legal and regulatory matters. (2) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 52.5$ -$ 52.5$ Health 117.9 - 117.9 Life 53.2 - 53.2 Total insurance product margin 223.6 - 223.6 Allocated expenses (140.5) - (140.5) Income from insurance products 83.1 - 83.1 Fee income 2.6 - 2.6 Investment income not allocated to product lines 50.9 - 50.9 Expenses not allocated to product lines (17.3) 3.0 (1) (14.3) Operating earnings before taxes 119.3 3.0 122.3 Income tax expense on operating income (26.5) (0.7) (27.2) Net operating income (2) 92.8$ 2.3$ 95.1 Net operating income per diluted share (2) 0.72$ 0.02$ 0.74$ Three months ended September 30, 2021 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 30 The table below summarizes the financial impact of significant items on our 2Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 2Q21 Significant Items (dollars in millions, except per-share amounts) (1) Comprised of $4.5 million from legal and regulatory matters. (2) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 66.0$ -$ 66.0$ Health 120.9 - 120.9 Life 39.7 - 39.7 Total insurance product margin 226.6 - 226.6 Allocated expenses (141.6) - (141.6) Income from insurance products 85.0 - 85.0 Fee income 6.6 - 6.6 Investment income not allocated to product lines 47.8 - 47.8 Expenses not allocated to product lines (23.8) 4.5 (1) (19.3) Operating earnings before taxes 115.6 4.5 120.1 Income tax expense on operating income (26.5) (1.0) (27.5) Net operating income (2) 89.1$ 3.5$ 92.6 Net operating income per diluted share (2) 0.66$ 0.03$ 0.69$ Three months ended June 30, 2021 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 31 The table below summarizes the financial impact of significant items on our 1Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 1Q21 Significant Items (dollars in millions, except per-share amounts) (1) Comprised of: (i) $5.3 million from legal and regulatory matters; and (ii) $2.5 million of transaction expenses related to the previously announced acquisition of DirectPath, LLC. The legal and regulatory matters primarily consist of an increase to our liability for claims and interest pursuant to the Global Resolution Agreement, as we have now processed and verified most of the claims provided by the third-party auditor allowing us to more accurately estimate the ultimate liability. (2) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 57.9$ -$ 57.9$ Health 124.7 - 124.7 Life 27.1 - 27.1 Total insurance product margin 209.7 - 209.7 Allocated expenses (141.1) - (141.1) Income from insurance products 68.6 - 68.6 Fee income 7.3 - 7.3 Investment income not allocated to product lines 43.0 - 43.0 Expenses not allocated to product lines (22.0) 7.8 (1) (14.2) Operating earnings before taxes 96.9 7.8 104.7 Income tax expense on operating income (21.7) (1.7) (23.4) Net operating income (2) 75.2$ 6.1$ 81.3 Net operating income per diluted share (2) 0.55$ 0.04$ 0.59$ Three months ended March 31, 2021 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 32 The table below summarizes the financial impact of significant items on our 4Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 4Q20 Significant Items (dollars in millions, except per-share amounts) (1) Adjustments arising from our comprehensive annual actuarial review of assumptions. (2) Unfavorable impact related to asset impairments. (3) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 68.1$ (16.1)$ (1) 52.0$ Health 125.2 - 125.2 Life 37.3 4.3 (1) 41.6 Total insurance product margin 230.6 (11.8) 218.8 Allocated expenses (162.7) - (162.7) Income from insurance products 67.9 (11.8) 56.1 Fee income 2.9 - 2.9 Investment income not allocated to product lines 57.8 - 57.8 Expenses not allocated to product lines (17.8) 3.7 (2) (14.1) Operating earnings before taxes 110.8 (8.1) 102.7 Income tax expense on operating income (24.8) 1.7 (23.1) Net operating income (3) 86.0$ (6.4)$ 79.6$ Net operating income per diluted share (3) 0.61$ (0.04)$ 0.57$ Three months ended December 31, 2020 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 33 The table below summarizes the financial impact of significant items on our 2Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 2Q20 Significant Items (dollars in millions, except per-share amounts) Insurance product margin Annuity 123.8$ 40.0$ (1) 72.3$ (91.5) (1) Health 95.5 - 95.5 Life 36.1 5.6 (1) 41.7 Total insurance product margin 255.4 (45.9) 209.5 Allocated expenses (128.1) - (128.1) Income from insurance products 127.3 (45.9) 81.4 Fee income 5.2 - 5.2 Investment income not allocated to product lines 8.2 - 8.2 Expenses not allocated to product lines (38.5) 23.5 (2) (15.0) Operating earnings before taxes 102.2 (22.4) 79.8 Income tax expense on operating income (22.8) 4.7 (18.1) Net operating income (3) 79.4$ (17.7)$ 61.7$ Net operating income per diluted share (3) $0.55 (0.12)$ 0.43$ Three months ended June 30, 2020 Actual results Significant items Excluding significant items The footnotes to the above table are on the following page.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 34 2Q20 Significant Items (Continued from the previous page) (1) Given our expectation that interest rates will remain low for the long-term, we performed an actuarial unlocking exercise in the second quarter of 2020 to reflect our assumption that average new money rates will remain flat at 4 percent forever. This change and the related impacts to persistency assumptions had a $45.6 million unfavorable impact on pre-tax earnings. As part of the actuarial unlocking exercise, we also changed our assumptions related to the future option costs we incur in providing benefits on fixed index annuities which had a favorable impact on pre-tax earnings of $91.5 million. The impact of these changes in assumptions is summarized below (dollars in millions): This actuarial unlocking exercise did not replace our comprehensive annual review of all assumptions for our insurance products, which we completed in the fourth quarter of 2020. (2) We increased our liability for claims and interest pursuant to the previously disclosed Global Resolution Agreement entered into in November 2018. Pursuant to this agreement, a third-party auditor is acting on behalf of 41 states and the District of Columbia for the purpose of identifying deceased insureds and contract holders where benefits are payable pursuant to unclaimed property laws. The third-party auditor has provided information that we have processed and verified allowing us to more accurately estimate the ultimate liability pursuant to this agreement. (3) A non-GAAP measure. See pages 35 and 37 for a reconciliation to the corresponding GAAP measure. Line of business Fixed index annuities Fixed interest annuities Interest- sensitive life Total Favorable (unfavorable) Impacts of an average new money rate assumption of 4 percent Insurance policy benefits $ (5.0) $ — $ (7.4) $ (12.4) Amortization (25.6) (9.4) 1.8 (33.2) Subtotal (30.6) (9.4) (5.6) (45.6) Impacts of changes in future option costs Insurance policy benefits 104.8 — — 104.8 Amortization (13.3) — — (13.3) Subtotal 91.5 — — 91.5 Impact on pre-tax income $ 60.9 $ (9.4) $ (5.6) $ 45.9

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 35 4Q20 1Q21 2Q21 3Q21 4Q21 Insurance product margin Annuity 68.1$ 57.9$ 66.0$ 52.5$ 93.9$ Health 125.2 124.7 120.9 117.9 129.5 Life 37.3 27.1 39.7 53.2 30.4 Total insurance product margin 230.6 209.7 226.6 223.6 253.8 Allocated expenses (162.7) (141.1) (141.6) (140.5) (143.3) Income from insurance products 67.9 68.6 85.0 83.1 110.5 Fee income 2.9 7.3 6.6 2.6 2.9 Investment income not allocated to product lines 57.8 43.0 47.8 50.9 42.8 Expenses not allocated to product lines (17.8) (22.0) (23.8) (17.3) (17.4) Operating earnings before taxes 110.8 96.9 115.6 119.3 138.8 Income tax expense on operating income (24.8) (21.7) (26.5) (26.5) (30.3) Net operating income* 86.0 75.2 89.1 92.8 108.5 Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization) 12.6 3.6 24.3 2.2 4.7 Net change in market value of investments recognized in earnings 6.0 (6.4) 5.7 (4.6) (12.1) Fair value changes in embedded derivative liabilities (net of related amortization) 16.3 82.1 (44.9) 10.9 19.1 Fair value changes related to agent deferred compensation plan (3.1) 13.2 - - (4.3) Other 0.9 0.6 0.9 0.2 1.9 Non-operating income (loss) before taxes 32.7 93.1 (14.0) 8.7 9.3 Income tax expense (benefit) on non-operating income 6.9 20.9 (2.9) 1.7 2.0 Net non-operating income (loss) 25.8 72.2 (11.1) 7.0 7.3 Net income 111.8$ 147.4$ 78.0$ 99.8$ 115.8$ Quarterly Earnings (dollars in millions) * Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and the change in allowance for credit losses, net of related amortization and taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss on extinguishment of debt, net of taxes; (vi) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes ("Net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals. A reconciliation of Net operating income to Net income applicable to common stock is provided in the above table.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 36 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 amounts that are normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. While management believes these measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered as substitutes for the most directly comparable GAAP measures. Additional information concerning non-GAAP measures is included in our periodic filings with the Securities and Exchange Commission that are available in the “Investors – SEC Filings” section of CNO’s website, www.CNOinc.com. Operating earnings measures Management believes that an analysis of net income applicable to common stock before net realized investment gains or losses from sales, impairments and change in allowance for credit losses, net change in market value of investments recognized in earnings, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, changes in the valuation allowance for deferred tax assets and other tax items and other non-operating items consisting primarily of earnings attributable to variable interest entities (“net operating income,” a non- GAAP financial measure) is important to evaluate the financial performance of the Company and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the Company’s underlying fundamentals.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 37 Information Related to Certain Non-GAAP Financial Measures A reconciliation of net income (loss) applicable to common stock to net operating income (and related per-share amounts) is as follows: (dollars in millions, except per-share amounts) 4Q20 1Q21 2Q21 3Q21 4Q21 Net income applicable to common stock 111.8$ 147.4$ 78.0$ 99.8$ 115.8$ Non-operating items: Net realized investment (gains) losses from sales and impairments, net of related amortization (12.6) (3.6) (24.3) (2.2) (4.7) Net change in market value of investments recognized in earnings (6.0) 6.4 (5.7) 4.6 12.1 Fair value changes in embedded derivative liabilities, net of related amortization (16.3) (82.1) 44.9 (10.9) (19.1) Fair value changes related to the agent deferred compensation plan 3.1 (13.2) - - 4.3 Other (0.9) (0.6) (0.9) (0.2) (1.9) Non-operating (income) loss before taxes (32.7) (93.1) 14.0 (8.7) (9.3) Income tax (expense) benefit on non-operating (income) loss (6.9) (20.9) 2.9 (1.7) (2.0) Net non-operating (income) loss (25.8) (72.2) 11.1 (7.0) (7.3) Net operating income (a non-GAAP financial measure) 86.0$ 75.2$ 89.1$ 92.8$ 108.5$ Per diluted share: Net income 0.80$ 1.08$ 0.58$ 0.77$ 0.93$ Net realized investment (gains) losses from sales and impairments (net of related amortization and taxes) (0.07) (0.02) (0.14) (0.02) (0.03) Net change in market value of investments recognized in earnings (net of taxes) (0.04) 0.04 (0.03) 0.03 0.07 Fair value changes in embedded derivative liabilities (net of related amortization and taxes) (0.09) (0.47) 0.26 (0.06) (0.12) Fair value changes related to the agent deferred compensation plan (net of taxes) 0.02 (0.08) - - 0.03 Other (0.01) - (0.01) - (0.01) Net operating income (a non-GAAP financial measure) 0.61$ 0.55$ 0.66$ 0.72$ 0.87$

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 38 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) 4Q20 1Q21 2Q21 3Q21 4Q21 Operating income 86.0$ 75.2$ 89.1$ 92.8$ 108.5$ Weighted average shares outstanding for basic earnings per share 138,232 134,140 131,016 126,429 122,017 Effect of dilutive securities on weighted average shares: Stock options, restricted stock and performance units 2,155 2,513 2,798 2,589 3,003 Weighted average shares outstanding for diluted earnings per share 140,387 136,653 133,814 129,018 125,020 Net operating income per diluted share 0.61$ 0.55$ 0.66$ 0.72$ 0.87$

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 39 Information Related to Certain Non-GAAP Financial Measures Book value per diluted share Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock and performance units were vested, and convertible securities were converted. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. A reconciliation from book value per share to book value per diluted share, excluding accumulated other comprehensive income (loss) is as follows: (dollars in millions, except per-share amounts) 4Q20 1Q21 2Q21 3Q21 4Q21 Total shareholders' equity 5,484.2$ 4,860.7$ 5,324.0$ 5,232.9$ 5,259.7$ Shares outstanding for the period 135,279,119 132,268,255 129,105,039 124,269,869 120,377,152 Book value per share 40.54$ 36.75$ 41.24$ 42.11$ 43.69$ Total shareholders' equity 5,484.2$ 4,860.7$ 5,324.0$ 5,232.9$ 5,259.7$ Less accumulated other comprehensive income (2,186.1) (1,518.1) (1,995.5) (1,929.7) (1,947.1) Adjusted shareholders' equity excluding AOCI 3,298.1$ 3,342.6$ 3,328.5$ 3,303.2$ 3,312.6$ Shares outstanding for the period 135,279,119 132,268,255 129,105,039 124,269,869 120,377,152 Dilutive common stock equivalents related to: Stock options, restricted stock and performance units 2,438,176 2,356,263 2,444,309 2,647,710 2,953,586 Diluted shares outstanding 137,717,295 134,624,518 131,549,348 126,917,579 123,330,738 Book value per diluted share (a non-GAAP measure) 23.95$ 24.83$ 25.30$ 26.03$ 26.86$

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 40 Information Related to Certain Non-GAAP Financial Measures Operating return measures Management believes that an analysis of net income applicable to common stock before net realized investment gains or losses from sales, impairments and change in allowance for credit losses, net change in market value of investments recognized in earnings, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, changes in the valuation allowance for deferred tax assets and other tax items, loss on extinguishment of debt and other non-operating items consisting primarily of earnings attributable to variable interest entities (“net operating income,” a non-GAAP financial measure) is important to evaluate the financial performance of the Company and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the Company’s underlying fundamentals. Management also believes that an operating return, excluding significant items, is important as the impact of these items enhances the understanding of our operating results. This non-GAAP financial measure also differs from return on equity because accumulated other comprehensive income (loss) has been excluded from the value of equity used to determine this ratio. Management believes this non-GAAP financial measure is useful because it removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in the estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made by management. In addition, our equity includes the value of significant net operating loss carryforwards (included in income tax assets). In accordance with GAAP, these assets are not discounted, and accordingly will not provide a return to shareholders (until after it is realized as a reduction to taxes that would otherwise be paid). Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns and the comparability of these measures from period-to-period. Operating return measures are used in measuring the performance of our business units and are used as a basis for incentive compensation.

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 41 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 item, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (iii) return on equity are as follows: (dollars in millions) (Continued on next page) 4Q20 1Q21 2Q21 3Q21 4Q21 Operating income 362.3$ 353.2$ 362.9$ 343.1$ 365.6$ Operating income, excluding significant items 338.2$ 335.2$ 366.1$ 348.6$ 357.3$ Net income 301.8$ 470.4$ 466.4$ 437.0$ 441.0$ Average common equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,812.4$ 2,876.5$ 2,947.7$ 2,995.5$ 3,026.0$ Average common shareholders' equity 4,665.4$ 4,903.1$ 5,114.1$ 5,206.8$ 5,197.4$ Operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 12.9% 12.3% 12.3% 11.5% 12.1% Operating return, excluding significant items, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 12.0% 11.7% 12.4% 11.6% 11.8% Return on equity 6.5% 9.6% 9.1% 8.4% 8.5% Trailing Twelve Months Ended

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 42 Information Related to Certain Non-GAAP Financial Measures The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income (loss): (dollars in millions) Net operating income Significant items (a) Net operating income, excluding significant items Net operating income, excluding significant items - trailing four quarters Net income (loss) Net income - trailing four quarters 1Q20 84.3$ -$ 84.3$ 300.6$ (21.2)$ 336.4$ 2Q20 79.4 (17.7) 61.7 285.9 82.0 380.8 3Q20 112.6 - 112.6 329.3 129.2 468.0 4Q20 86.0 (6.4) 79.6 338.2 111.8 301.8 1Q21 75.2 6.1 81.3 335.2 147.4 470.4 2Q21 89.1 3.5 92.6 366.1 78.0 466.4 3Q21 92.8 2.3 95.1 348.6 99.8 437.0 4Q21 108.5 (20.2) 88.3 357.3 115.8 441.0 (a) The significant items have been discussed in prior press releases. (Continued on next page)

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 43 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 item, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (iii) return on equity are as follows: (dollars in millions) (Continued on next page) 4Q20 1Q21 2Q21 3Q21 4Q21 Pre-tax operating earnings (a non-GAAP financial measure) 463.8$ 455.2$ 468.6$ 442.6$ 470.6$ Income tax expense (101.5) (102.0) (105.7) (99.5) (105.0) Operating return 362.3 353.2 362.9 343.1 365.6 Non-operating items: Net realized investment gains (losses) from sales and impairments, net of related amortization (31.1) 36.2 48.2 42.7 34.8 Net change in market value of investments recognized in earnings (2.7) 39.3 13.8 0.7 (17.4) Fair value changes in embedded derivative liabilities, net of related amortization (79.1) 69.7 51.9 64.4 67.2 Fair value changes and amendment related to the agent deferred compensation plan (16.3) (3.1) 10.1 10.1 8.9 Other 9.7 8.0 8.9 2.6 3.6 Non-operating income (loss) before taxes (119.5) 150.1 132.9 120.5 97.1 Income tax expense (benefit): On non-operating income (loss) (25.0) 32.9 29.4 26.6 21.7 Valuation allowance for deferred tax assets and other tax items (34.0) - - - - Net non-operating income (loss) (60.5) 117.2 103.5 93.9 75.4 Net income 301.8$ 470.4$ 466.4$ 437.0$ 441.0$ Twelve Months Ended

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 44 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) 1Q18 2Q18 3Q18 4Q18 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 3,318.7$ 3,366.0$ 2,705.8$ 2,687.3$ Net operating loss carryforwards 404.2 388.7 510.6 505.9 Accumulated other comprehensive income 894.3 700.2 403.5 177.7 Common shareholders' equity 4,617.2$ 4,454.9$ 3,619.9$ 3,370.9$ 1Q19 2Q19 3Q19 4Q19 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,703.4$ 2,702.9$ 2,685.0$ 2,761.9$ Net operating loss carryforwards 479.6 451.1 425.4 542.6 Accumulated other comprehensive income 654.9 1,098.2 1,442.9 1,372.5 Common shareholders' equity 3,837.9$ 4,252.2$ 4,553.3$ 4,677.0$ 1Q20 2Q20 3Q20 4Q20 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,701.2$ 2,784.2$ 2,905.1$ 2,956.2$ Net operating loss carryforwards 469.4 426.8 377.2 341.9 Accumulated other comprehensive income 595.2 1,520.2 1,801.6 2,186.1 Common shareholders' equity 3,765.8$ 4,731.2$ 5,083.9$ 5,484.2$ 1Q21 2Q21 3Q21 4Q21 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 3,019.5$ 3,035.6$ 3,036.3$ 3,068.9$ Net operating loss carryforwards 323.1 292.9 266.9 243.7 Accumulated other comprehensive income 1,518.1 1,995.5 1,929.7 1,947.1 Common shareholders' equity 4,860.7$ 5,324.0$ 5,232.9$ 5,259.7$

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 45 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) 4Q20 1Q21 2Q21 3Q21 4Q21 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,812.4$ 2,876.5$ 2,947.7$ 2,995.5$ 3,026.0$ Net operating loss carryforwards 428.9 385.5 350.5 320.0 293.9 Accumulated other comprehensive income 1,424.1 1,641.1 1,815.9 1,891.3 1,877.5 Common shareholders' equity 4,665.4$ 4,903.1$ 5,114.1$ 5,206.8$ 5,197.4$ Trailing Four Quarter Average

 
CNO Financial Group | Fourth Quarter 2021 Earnings | February 8, 2022 46 Information Related to Certain Non-GAAP Financial Measures Debt to capital ratio, excluding accumulated other comprehensive income (loss) The debt to capital ratio, excluding accumulated other comprehensive income (loss), differs from the debt to capital ratio because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP financial measure is useful because it removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in the estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made by management. A reconciliation of these ratios is as follows: (dollars in millions) 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Corporate notes payable 989.1$ 989.4$ 989.7$ 990.1$ 1,136.2$ 1,136.6$ 1,136.9$ 1,137.0$ 1,137.3$ Total shareholders' equity 4,677.0 3,765.8 4,731.2 5,083.9 5,484.2 4,860.7 5,324.0 5,232.9 5,259.7 Total capital 5,666.1$ 4,755.2$ 5,720.9$ 6,074.0$ 6,620.4$ 5,997.3$ 6,460.9$ 6,369.9$ 6,397.0$ Corporate debt to capital 17.5% 20.8% 17.3% 16.3% 17.2% 19.0% 17.6% 17.8% 17.8% Corporate notes payable 989.1$ 989.4$ 989.7$ 990.1$ 1,136.2$ 1,136.6$ 1,136.9$ 1,137.0$ 1,137.3$ Total shareholders' equity 4,677.0 3,765.8 4,731.2 5,083.9 5,484.2 4,860.7 5,324.0 5,232.9 5,259.7 Less accumulated other comprehensive income (1,372.5) (595.2) (1,520.2) (1,801.6) (2,186.1) (1,518.1) (1,995.5) (1,929.7) (1,947.1) Total capital 4,293.6$ 4,160.0$ 4,200.7$ 4,272.4$ 4,434.3$ 4,479.2$ 4,465.4$ 4,440.2$ 4,449.9$ Debt to total capital ratio, excluding AOCI (a non-GAAP financial measure) 23.0% 23.8% 23.6% 23.2% 25.6% 25.4% 25.5% 25.6% 25.6%