cno-20210209
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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 9, 2021

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 9, 2021, CNO Financial Group, Inc. ("CNO" or the "Company") issued: (i) a press release announcing its financial results for the quarter ended December 31, 2020, 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, 2020, 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, 2020, 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.

On February 9, 2021, CNO also announced that it has acquired privately-owned DirectPath, LLC, a leading national provider of employee benefits management services to employers and employees. A copy of the press release announcing the acquisition is filed as Exhibit 99.4 and is incorporated herein by reference.

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
99.4
104Cover Page Interactive Data File (embedded within the Inline XBRL document).





2



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 9, 2021
By:/s/ John R. Kline
John R. Kline
Senior Vice President and
Chief Accounting Officer




3

Exhibit 99.1

cnologopr1a.jpg                            News

For Immediate Release

CNO Financial Group Reports Fourth Quarter and Full Year 2020 Results
Strong fourth quarter earnings; solid capital and liquidity;
completed $100 million in share repurchases

Carmel, Ind., February 9, 2021 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ending December 31, 2020, net income was $111.8 million, or $0.80 per diluted share compared to net income of $278.0 million, or $1.84 per diluted share in 4Q19 (including $193.7 million, or $1.28 per diluted share, related to a tax benefit from a tax planning strategy). Net operating income (1) in 4Q20 was $86.0 million, or $0.61 per diluted share, compared to $78.6 million, or $0.52 per diluted share, in 4Q19.

Net income for the year ended December 31, 2020, was $301.8 million, or $2.11 per diluted share, compared to $409.4 million, or $2.61 per diluted share, in 2019 (including $193.7 million, or $1.23 per diluted share, related to a tax benefit from a tax planning strategy). Net operating income (1) for the year ended December 31, 2020, was $362.3 million, or $2.53 per diluted share, compared to $290.0 million, or $1.85 per diluted share, in 2019.

"CNO reported strong fourth quarter and full year results in the face of a very challenging year," said Gary C. Bhojwani, chief executive officer. "I am particularly pleased with the continued momentum in our Consumer Division and our expanding digital and direct-to-consumer capabilities, which offset COVID-related weakness in other areas. Our results throughout the pandemic and in the historically low interest rate environment demonstrated the resiliency of our diverse product portfolio and distribution networks. I am very proud of our dedicated associates and exclusive agents that helped us deliver on our promises to customers."

"Our strong earnings, high quality investment portfolio and robust cash flow generation enabled us to return $330 million to shareholders this year," added Bhojwani. "This represents 12% of our market capitalization as of the start of 2020. While we face considerable near-term headwinds in 2021, CNO’s middle-market focus, differentiated business model and solid balance sheet position us to successfully navigate short-term disruption and remain focused on the longer-term opportunity ahead to deliver continued shareholder value."

Other Announcement

•Completed the acquisition of DirectPath, LLC, a leading national provider of employee benefits management services to employers and employees (Read press release here)

Full Year 2020 Highlights

•Operating (1) EPS up 37% from 2019 to $2.53
•Life sales up 12%; direct-to-consumer sales up 21% from 2019
•Insurance product margin up 17% from 2019; favorably impacted by health care deferrals
•Generated return on equity (ROE) of 6.5%; operating ROE, as adjusted (6), of 12.9%
•Returned $330.0 million to shareholders in the form of share repurchases ($263.0 million) and dividends ($67.0 million); reduced weighted average share count by 9% since 2019



Fourth Quarter 2020 Highlights

•Operating (1) EPS up 17% from 4Q19 to $0.61
•Life sales up 6%; direct-to-consumer sales up 10% from 4Q19
•Insurance product margin up 15% from 4Q19; favorably impacted by health care deferrals
•Net investment income up 13% from 4Q19
•Book value per share was $40.54, up 28% from 4Q19; book value per diluted share, excluding accumulated other comprehensive income (2), was $23.95, up 8% from 4Q19
•Returned $116.6 million to shareholders in the form of share repurchases ($100.0 million) and dividends ($16.6 million); reduced weighted average share count by 7% since 4Q19

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 realized investment gains (losses), changes in fair values of embedded derivatives, equity securities 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,
20202019% change20202019% change
Income from insurance products (b)
$0.48 $0.39 23 $67.9 $59.6 14 
Fee income0.02 0.08 (75)2.9 11.7 (75)
Investment income not allocated to product lines (c)
0.41 0.17 141 57.8 26.2 121 
Expenses not allocated to product lines(0.12)0.02 700 (17.8)2.8 736 
Operating earnings before taxes0.79 0.66 110.8 100.3 
Income tax expense on operating income(0.18)(0.14)(29)(24.8)(21.7)(14)
Net operating income (1)0.61 0.52 17 86.0 78.6 9 
Net realized investment gains from sales, impairments and change in allowance for credit losses (net of related amortization)0.09 0.05 12.6 7.1 
Net change in market value of investments recognized in earnings0.04 (0.02)6.0 (2.6)
Fair value changes in embedded derivative liabilities (net of related amortization)0.12 0.09 16.3 13.4 
Other(0.01)(0.07)(2.2)(10.8)
Non-operating income before taxes0.24 0.05 32.7 7.1 
Income tax expense on non-operating income0.05 0.01 6.9 1.4 
Valuation allowance for deferred tax assets and other tax items— (1.28)— (193.7)
Net non-operating income0.19 1.32 25.8 199.4 
Net income$0.80 $1.84 $111.8 $278.0 
Weighted average diluted shares outstanding140.4 151.4 


2

FINANCIAL SUMMARY (continued)
Year End
(Amounts in millions, except per share data)
(Unaudited)
Per diluted share
Year endedYear ended
December 31,December 31,
20202019% change20202019% change
Income from insurance products (b)
$2.54 $1.57 62 $363.8 $246.1 48 
Fee income0.11 0.15 (27)16.7 23.5 (29)
Investment income not allocated to product lines (c)
1.17 0.97 21 167.1 152.1 10 
Expenses not allocated to product lines(0.58)(0.34)(71)(83.8)(53.4)(57)
Operating earnings before taxes3.24 2.35 463.8 368.3 
Income tax expense on operating income(0.71)(0.50)(42)(101.5)(78.3)(30)
Net operating income (1)2.53 1.85 37 362.3 290.0 25 
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization)(0.22)0.01 (31.1)2.1 
Net change in market value of investments recognized in earnings(0.02)0.16 (2.7)25.5 
Fair value changes in embedded derivative liabilities (net of related amortization)(0.55)(0.52)(79.1)(81.4)
Loss on extinguishment of debt— (0.04)— (7.3)
Other(0.04)(0.21)(6.6)(33.0)
Non-operating loss before taxes(0.83)(0.60)(119.5)(94.1)
Income tax benefit on non-operating loss(0.17)(0.13)(25.0)(19.8)
Valuation allowance for deferred tax assets and other tax items(0.24)(1.23)(34.0)(193.7)
Net non-operating income (loss)(0.42)0.76 (60.5)119.4 
Net income$2.11 $2.61 $301.8 $409.4 
Weighted average diluted shares outstanding143.2 157.1 


(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.
______________________________________________________________________________________________________
Quarter ended
December 31,
20202019
Trailing twelve months return on equity (a)
6.5 %9.8 %
Trailing twelve months operating return on equity, excluding accumulated other comprehensive income and net operating loss carryforwards (a non-GAAP financial measure) (6)12.9 %10.7 %
Trailing twelve months operating return, excluding significant items, on equity, excluding accumulated other comprehensive income and net operating loss carryforwards (a non-GAAP financial measure) (6)12.0 %10.4 %
Shareholders’ equity$5,484.2 $4,677.0 
Accumulated other comprehensive income(2,186.1)(1,372.5)
Shareholders’ equity, excluding accumulated other comprehensive income3,298.1 3,304.5 
Net operating loss carryforwards(341.9)(542.6)
Shareholders' equity, excluding accumulated other comprehensive income and net operating loss carryforwards$2,956.2 $2,761.9 
Book value per diluted share$39.82 $31.27 
Accumulated other comprehensive income(15.87)(9.18)
Book value per diluted share, excluding accumulated other comprehensive income (a non-GAAP financial measure) (2)$23.95 $22.09 

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

4

INSURANCE OPERATIONS
Comparing 4Q2020 with 4Q2019

Annuity products accounted for 30 percent of the Company’s margin for the quarter.

Annuity premiums collected increased 6 percent and annuity account values increased 4 percent.

Health products accounted for 54 percent of the Company’s insurance margin for the quarter and 67 percent of insurance policy income.

Life products accounted for 16 percent of the Company’s insurance margin for the quarter and 32 percent of insurance policy income.

Sales of health products decreased by 22 percent and sales of life products were up 6 percent.

ANNUITY COLLECTED PREMIUMS
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20202019% change
Annuity collected premiums$345.0 $324.3 6 


INSURANCE POLICY INCOME
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20202019% change
Annuity riders$4.4 $5.2 (15)
Health422.6 425.7 (1)
Life202.0 192.3 5 
Total insurance policy income$629.0 $623.2 1 


SALES MEASURED AS NEW ANNUALIZED PREMIUMS FOR
LIFE AND HEALTH PRODUCTS
(Dollars in millions)
(Unaudited)
Quarter ended December 31,
20202019% change
Health$49.1 $62.7 (22)
Life37.1 34.9 6 
Total new annualized premiums (4)$86.2 $97.6 (12)


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,
2020		% of insurance policy incomeDecember 31,
2019		% of insurance policy income% change
Margin
Annuity interest margin$68.1 $60.5 13 
Life insurance interest margin10.5 11.3 (7)
Total interest-sensitive margin78.6 71.8 9 
Insurance margin
Health125.2 30 93.0 22 35 
Life (a)26.8 17 35.4 23 (24)
Total other insurance margin152.0 26 128.4 22 18 
Total insurance margin230.6 200.2 
Allocated expenses(162.7)(140.6)
Income from insurance products$67.9 $59.6 
Per diluted share$0.48 $0.39 
Weighted average diluted shares140.4 151.4 


(a)    Net of $15.6 million and $14.5 million of non-deferred television advertising expense related to our direct distribution channel in the 2020 and 2019 periods, respectively.
    

Total allocated expenses were $162.7 million, up 16 percent from the year-ago quarter.

Total insurance margins were favorably (unfavorably) impacted by $11.8 million and $(10.0) million in the quarters ended December 31, 2020 and 2019, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 20 for summaries of the impacts of significant items.


6

ANNUITY RESULTS BY PRODUCT TYPE
(Dollars in millions)
(Unaudited)
Annuity margin
Quarter ended
December 31,
20202019
Fixed index annuities$58.1 $54.6 
Fixed interest annuities8.5 4.6 
Other annuities1.5 1.3 
Total$68.1 $60.5 

Annuity collected premiums
Quarter ended
December 31,
20202019
Annuity collected premiums$345.0 $324.3 

Average net insurance liabilities (5)
Quarter ended
December 31,
20202019
Fixed index annuities$7,342.1 $6,751.0 
Fixed interest annuities2,000.1 2,204.3 
Other annuities517.9 565.0 
Total$9,860.1 $9,520.3 

Margin/average net insurance liabilities (a)
Quarter ended
December 31,
20202019
Fixed index annuities3.17 %3.24 %
Fixed interest annuities1.70 %0.83 %
Other annuities1.16 %0.92 %
Total2.76 %2.54 %

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

Annuity margins were favorably (unfavorably) impacted by $16.1 million and $(.3) million in the quarters ended December 31, 2020 and 2019, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 20 for summaries of the impacts of significant items.
7

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

Health margin
Quarter ended
December 31,
20202019
Amount% of insurance policy incomeAmount% of insurance policy income% change
Supplemental health and other health$53.0 31 $46.9 28 13 
Medicare supplement43.3 23 32.1 17 35 
Long-term care28.9 44 14.0 21 106 
Total$125.2 30 $93.0 22 35 


Health insurance policy income
Quarter ended
December 31,
20202019% change
Supplemental health and other health$170.6 $167.5 2 
Medicare supplement186.0 191.5 (3)
Long-term care66.0 66.7 (1)
Total$422.6 $425.7 (1)

Health NAP (4)
Quarter ended
December 31,
20202019% change
Supplemental health and other health$29.7 $37.5 (21)
Medicare supplement12.2 17.2 (29)
Long-term care7.2 8.0 (10)
Total$49.1 $62.7 (22)
8

LIFE INSURANCE RESULTS BY PRODUCT TYPE
(Dollars in millions)
(Unaudited)
Life margin
Quarter ended
December 31,
20202019
Amount% of insurance policy incomeAmount% of insurance policy income% change
Life insurance interest margin$0.4 $1.5 (73)
Life insurance margin:
Traditional life26.8 17 35.4 23 (24)
Interest sensitive life10.1 25 9.8 26 3 
Subtotal36.9 18 45.2 24 (18)
Total margin$37.3 $46.7 (20)

Life insurance policy income
Quarter ended
December 31,
20202019% change
Traditional life$161.6 $154.3 5 
Interest sensitive life40.4 38.0 6 
Total$202.0 $192.3 5 

Life NAP (4)
Quarter ended
December 31,
20202019% change
Traditional life$29.8 $25.1 19 
Interest sensitive life7.3 9.8 (26)
Total$37.1 $34.9 6 

Average net insurance liabilities (5) and interest margin
Quarter ended
December 31,
20202019% change
Interest sensitive life products$939.9 $883.4 6 
Interest margin/average net insurance liabilities (5)0.17 %0.68 %(75)


Total life margins were unfavorably impacted by $4.3 million and $9.7 million in the quarters ended December 31, 2020 and 2019, respectively, due to adjustments arising from our comprehensive annual actuarial review of assumptions. See pages 19 and 20 for summaries of the impact of significant items.



9

QUARTERLY AVERAGE EXCLUSIVE PRODUCING AGENTS
Average Exclusive Producing Agent Count
Quarter ended
December 31,%
20202019change
Consumer
Field agents (a) (c)4,539 4,709 (4)
Tele-sales agents257 211 22 
Total agents4,796 4,920 (3)
Financial representatives (b) (c)601 596 1 
Worksite (a) (c)
255 453 (44)
____________________
(a) Producing agents are exclusive agents that have submitted at least one policy in the month.
(b) Financial representatives are exclusive agents who are licensed to sell certain securities brokerage products and services.
(c) Agent and representative 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,
20202019% change
Net investment income$390.6 $373.1 5 
Allocated to product lines:
Annuity(115.5)(117.3)(2)
Health(70.9)(70.5)1 
Life(35.4)(34.4)3 
Equity returns credited to policyholder account balances(77.6)(83.4)(7)
Amounts allocated to product lines and credited to policyholder account balances(299.4)(305.6)(2)
Amount related to variable interest entities and other non-operating items(8.2)(12.7)(35)
Interest expense on corporate debt(14.4)(13.8)4 
Interest expense on investment borrowings(2.9)(10.1)(71)
Less amounts credited to deferred compensation plans (offsetting investment income)(7.9)(4.7)68 
Total adjustments(33.4)(41.3)
Investment income not allocated to product lines$57.8 $26.2 121 
Per share diluted share$0.41 $0.17 


10

INVESTMENT PORTFOLIO
(Dollars in millions)

The composition of the investment portfolio at December 31, 2020 is as follows:
$% of total
Fixed maturities, available for sale, at fair value$23,383.6 85 
Equity securities at fair value151.2 1 
Mortgage loans1,358.7 5 
Policy loans123.0 — 
Trading securities232.0 1 
Investments held by variable interest entities1,189.4 4 
Other invested assets1,146.4 4 
Total investment portfolio$27,584.3 100 

Fixed maturities, available for sale, at amortized cost by asset class as of December 31, 2020 are as follows:
Investment gradeBelow investment gradeTotal
Corporate securities$11,243.2 $811.5 $12,054.7 
United States Treasury securities and obligations of the United States government and agencies163.8 — 163.8 
States and political subdivisions2,284.1 12.5 2,296.6 
Foreign governments82.2 0.2 82.4 
Asset-backed securities935.0 89.4 1,024.4 
Agency residential mortgage-backed securities52.7 — 52.7 
Non-agency residential mortgage-backed securities921.0 992.5 (a)1,913.5 
Collateralized loan obligations461.9 — 461.9 
Commercial mortgage-backed securities1,783.9 87.2 1,871.1 
Total$17,927.8 $1,993.3 $19,921.1 

____________________
(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 $23.4 billion compared with an amortized cost of $19.9 billion. Net unrealized gains were comprised of gross unrealized gains of $3.5 billion and gross unrealized losses of $32 million. The allowance for credit losses was $2.2 million at December 31, 2020.

At amortized cost and fair value, 90 percent and 91 percent of fixed maturities, available for sale, were rated “investment grade”, respectively.

Acquisitions of fixed maturity investments during the quarter totaled $1.3 billion. Comparable information for acquisitions of fixed maturity investments is as follows:
Fixed maturity acquisitions
Quarter ended
December 31,
20202019
Total fixed maturity acquisitions (dollars in millions)$1,252.5 $1,371.4 
Annual effective yield3.24 3.76 
Average ratingBBB+A-
Average life (in years)8.5 7.1 

11

Non-Operating Items
Net realized 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 were recorded in earnings. Net realized investment gains in 4Q19 were $7.1 million (net of related amortization) including other-than-temporary impairment losses of $6.8 million which were recorded in earnings.

During 4Q20 and 4Q19, we recognized an increase (decrease) in earnings of $6.0 million and $(2.6) million, respectively, due to the net change in market value of investments recognized in earnings.

During 4Q20 and 4Q19, we recognized an increase in earnings of $16.3 million and $13.4 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 4Q20 and 4Q19, other non-operating items included an increase (decrease) in earnings of $(3.1) million and $2.5 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.

Also, the other non-operating items in 4Q19 included a previously announced pre-tax charge of approximately $14 million related to our new operating model to create a leaner, more integrated customer-centric organization.

During 4Q19, we implemented a tax planning strategy that is expected to utilize net operating loss carryforwards that otherwise would have expired in 2023. Accordingly, we eliminated the valuation allowance for deferred tax assets of $193.7 million in 4Q19.

Statutory (based on non-GAAP measures) and GAAP Capital Information
Our consolidated statutory risk-based capital ratio was estimated at 411% at December 31, 2020, reflecting estimated 4Q20 statutory operating income of $63 million (and $421 million during 2020) and the payment of insurance company dividends to the holding company of $113.3 million during 4Q20 and $294.1 million during 2020. Statutory operating income and capital and surplus were favorably impacted by $99 million and $53 million, respectively, related to certain provisions in the Coronavirus Aid, Relief, and Economic Security ("CARES") Act during 2020.

During the fourth quarter of 2020, we repurchased $100 million of common stock under our securities repurchase program. We repurchased 4.4 million common shares at an average cost of $22.61 per share. As of December 31, 2020, we had 135.3 million shares outstanding and had authority to repurchase up to an additional $269.3 million of our common stock. During 4Q20, dividends paid on common stock totaled $16.6 million.

Unrestricted cash and investments held by our holding company were $388 million at December 31, 2020, compared to $187 million at December 31, 2019.

Book value per common share was $40.54 at December 31, 2020 compared to $31.58 at December 31, 2019. Book value per diluted share, excluding accumulated other comprehensive income (2), was $23.95 at December 31, 2020, compared to $22.09 at December 31, 2019.

The debt-to-capital ratio was 17.2 percent and 17.5 percent at December 31, 2020 and 2019, respectively. Our debt-to-total capital ratio, excluding accumulated other comprehensive income (3) was 25.6 percent at December 31, 2020 compared to 23.0 percent at December 31, 2019, reflecting the issuance in November 2020 of $150.0 million of 5.125% Subordinated Debentures due 2060.

Return on equity for the years ended December 31, 2020 and 2019, was 6.5% and 9.8%, 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, 2020 and 2019, was 12.0% and 10.4%, 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, 2019 and any subsequent Form 10-Q 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 10, 2021 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/9570459. 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.



13

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

December 31,
2020		December 31,
2019
ASSETS
Investments:
Fixed maturities, available for sale, at fair value (net of allowance for credit losses: 2020 - $2.2; amortized cost: 2020 - $19,921.1; 2019 - $19,179.5)$23,383.6 $21,295.2 
Equity securities at fair value151.2 44.1 
Mortgage loans (net of allowance for credit losses: 2020 - $11.8)1,358.7 1,566.1 
Policy loans123.0 124.5 
Trading securities232.0 243.9 
Investments held by variable interest entities (net of allowance for credit losses: 2020 - $15.1; amortized cost: 2020 - $1,211.3; 2019 - $1,206.3)1,189.4 1,188.6 
Other invested assets1,146.4 1,118.5 
Total investments27,584.3 25,580.9 
Cash and cash equivalents - unrestricted937.8 580.0 
Cash and cash equivalents held by variable interest entities54.1 74.7 
Accrued investment income205.8 205.9 
Present value of future profits249.4 275.4 
Deferred acquisition costs1,027.8 1,215.5 
Reinsurance receivables (net of allowance for credit losses: 2020 - $4.0)4,584.3 4,785.7 
Income tax assets, net199.4 432.6 
Assets held in separate accounts4.2 4.2 
Other assets492.8 476.0 
Total assets$35,339.9 $33,630.9 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:  
Liabilities for insurance products:  
Policyholder account liabilities$12,540.6 $12,132.3 
Future policy benefits11,744.2 11,498.5 
Liability for policy and contract claims561.8 522.3 
Unearned and advanced premiums252.6 260.5 
Liabilities related to separate accounts4.2 4.2 
Other liabilities821.8 750.2 
Investment borrowings1,642.5 1,644.3 
Borrowings related to variable interest entities1,151.8 1,152.5 
Notes payable – direct corporate obligations1,136.2 989.1 
Total liabilities29,855.7 28,953.9 
Commitments and Contingencies
Shareholders' equity:  
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2020 - 135,279,119; 2019 - 148,084,178)1.3 1.5 
Additional paid-in capital2,544.5 2,767.3 
Accumulated other comprehensive income2,186.1 1,372.5 
Retained earnings752.3 535.7 
Total shareholders' equity5,484.2 4,677.0 
Total liabilities and shareholders' equity$35,339.9 $33,630.9 

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,
 2020201920202019
Revenues:  
Insurance policy income$629.0 $623.2 $2,511.3 $2,480.8 
Net investment income:  
General account assets290.1 270.2 1,079.0 1,098.0 
Policyholder and other special-purpose portfolios100.5 102.9 143.5 264.9 
Realized investment gains (losses):  
Net realized investment gains (losses)6.3 11.3 (17.7)40.6 
Change in allowance for credit losses and other-than-temporary impairment losses (a)12.9 (6.8)(18.5)(12.4)
Total realized gains (losses)19.2 4.5 (36.2)28.2 
Fee revenue and other income37.4 68.2 123.5 143.9 
Total revenues1,076.2 1,069.0 3,821.1 4,015.8 
Benefits and expenses:    
Insurance policy benefits566.1 600.3 2,157.9 2,417.0 
Interest expense23.3 35.2 108.8 152.3 
Amortization75.9 76.1 268.1 232.1 
Loss on extinguishment of debt— — — 7.3 
Other operating costs and expenses267.4 250.0 942.0 932.9 
Total benefits and expenses932.7 961.6 3,476.8 3,741.6 
Income before income taxes143.5 107.4 344.3 274.2 
Income tax expense (benefit):
Tax expense on period income31.7 23.1 76.5 58.5 
Valuation allowance for deferred tax assets and other tax items— (193.7)(34.0)(193.7)
Net income$111.8 $278.0 $301.8 $409.4 
Earnings per common share:  
Basic:  
Weighted average shares outstanding138,232,000 150,138,000 142,096,000 156,040,000 
Net income$.81 $1.85 $2.12 $2.62 
Diluted: 
Weighted average shares outstanding140,387,000 151,407,000 143,164,000 157,148,000 
Net income$.80 $1.84 $2.11 $2.61 

______________
(a)     No portion of the other-than-temporary impairments recognized in the 2019 periods was included in accumulated other comprehensive income.
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. The dilution from convertible securities is calculated assuming the securities were converted 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 premium for life and health products, which includes 10% of single premium whole life deposits and 100% of all other premiums (excluding annuities). Medicare Advantage sales are not comparable to other sales and are therefore excluded in all periods.
(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):
16

Year ended
4Q204Q19
Net operating income$362.3 $290.0 
Net operating income, excluding significant items$338.2 $282.1 
Net income$301.8 $409.4 
Average common equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)$2,812.4 $2,703.9 
Average common shareholders' equity$4,665.4 $4,166.8 
Operating return on equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)12.9 %10.7 %
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 %10.4 %
Return on equity6.5 %9.8 %

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
1Q19$65.8 $— $65.8 $310.1 $51.8 $(347.5)
2Q1976.4 — 76.4 304.6 37.6 (412.1)
3Q1969.2 — 69.2 286.3 42.0 159.7 
4Q1978.6 (7.9)(b)70.7 282.1 278.0 409.4 
1Q2084.3 — 84.3 300.6 (21.2)336.4 
2Q2079.4 (17.7)(c)61.7 285.9 82.0 380.8 
3Q20112.6 — 112.6 329.3 129.2 468.0 
4Q2086.0 (6.4)(d)79.6 338.2 111.8 301.8 
(a) See note (7) for additional information.
(b) Comprised of: (i) $10.0 million of unfavorable adjustments arising from our comprehensive annual actuarial review of assumptions; (ii) $20.0 million of the net favorable impact from legal and regulatory matters; and (iii) an increase in tax expense of $2.1 million.
(c) 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.
(d) 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.
17

A reconciliation of pretax operating earnings (a non-GAAP financial measure) to net income is as follows (dollars in millions):
Year ended
4Q204Q19
Pretax operating earnings (a non-GAAP financial measure)$463.8 $368.3 
Income tax expense(101.5)(78.3)
Net operating income362.3 290.0 
Non-operating items:
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses, net of related amortization(31.1)2.1 
Net change in market value of investments recognized in earnings(2.7)25.5 
Fair value changes in embedded derivative liabilities, net of related amortization(79.1)(81.4)
Fair value changes related to the agent deferred compensation plan(16.3)(20.4)
Loss on extinguishment of debt— (7.3)
Other9.7 (12.6)
Non-operating loss before taxes(119.5)(94.1)
Income tax benefit:
    On non-operating loss(25.0)(19.8)
    Valuation allowance for deferred tax assets and other tax items(34.0)(193.7)
Net non-operating income (loss)(60.5)119.4 
Net income$301.8 $409.4 

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):
4Q18
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$2,687.3 
Net operating loss carryforwards505.9 
Accumulated other comprehensive income177.7 
Common shareholders' equity$3,370.9 
1Q192Q193Q194Q19
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 carryforwards479.6 451.1 425.4 542.6 
Accumulated other comprehensive income654.9 1,098.2 1,442.9 1,372.5 
Common shareholders' equity$3,837.9 $4,252.2 $4,553.3 $4,677.0 
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 
18

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
4Q204Q19
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)$2,812.4 $2,703.9 
Net operating loss carryforwards428.9 470.1 
Accumulated other comprehensive income1,424.1 992.8 
Common shareholders' equity$4,665.4 $4,166.8 

(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.

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.


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 
19

___________
(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.


Three months ended
December 31, 2019
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$60.5 $0.3 (a)$60.8 
Health margin93.0 — 93.0 
Life margin46.7 9.7 (a)56.4 
Total insurance product margin200.2 10.0 210.2 
Allocated expenses(140.6)— (140.6)
Income from insurance products (5)59.6 10.0 69.6 
Fee income11.7 — 11.7 
Investment income not allocated to product lines (9)26.2 — 26.2 
Expenses not allocated to product lines2.8 (20.0)(b)(17.2)
Operating earnings before taxes100.3 (10.0)90.3 
Income tax (expense) benefit on operating income(21.7)2.1 (19.6)
Net operating income (10)$78.6 $(7.9)$70.7 
Net operating income per diluted share$0.52 $(0.05)$0.47 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.
(b)$20.0 million of the net favorable impact from legal and regulatory matters.



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


20

Exhibit 99.2



cnologosupp1.jpg


Quarterly Financial Supplement - 4Q2020
February 9, 2021

Page 1

Table of ContentsPage
Consolidated balance sheet3
Consolidated statement of operations4
Financial summary5
Insurance operations6
Margin from insurance products7-9
Collected premiums from annuity and interest sensitive life products and insurance policy income10
Health and life new annualized premiums11
Computation of weighted average shares outstanding12
Annuities - account value rollforwards13
Statutory information14
Investment income not allocated to product lines and investment income allocated to product lines15-18
Other investment data18
Significant items19-20
Notes21

Page 2

CNO FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20
Assets
Investments:
  Fixed maturities, available for sale, at fair value$19,468.4 $20,437.2 $21,089.2 21,295.2 $20,379.1 $22,167.9 $22,702.9 $23,383.6 
  Equity securities at fair value40.8 38.8 39.3 44.1 50.1 60.5 62.1 151.2 
  Mortgage loans1,626.1 1,596.5 1,561.7 1,566.1 1,484.1 1,459.9 1,444.9 1,358.7 
  Policy loans121.3 121.6 122.8 124.5 124.7 124.3 123.6 123.0 
  Trading securities237.9 248.3 247.3 243.9 227.8 240.6 240.3 232.0 
  Investments held by variable interest entities1,241.4 1,215.2 1,204.2 1,188.6 1,038.1 1,137.4 1,172.6 1,189.4 
  Other invested assets943.3 1,018.8 1,070.9 1,118.5 953.3 993.8 1,070.6 1,146.4 
  Total investments23,679.2 24,676.4 25,335.4 $25,580.9 24,257.2 26,184.4 26,817.0 27,584.3 
Cash and cash equivalents - unrestricted621.6 557.4 760.3 580.0 482.0 521.1 735.6 937.8 
Cash and cash equivalents held by variable interest entities69.7 50.5 61.7 74.7 68.5 36.8 51.0 54.1 
Accrued investment income214.8 211.2 212.7 205.9 213.0 205.3 214.4 205.8 
Present value of future profits333.6 299.3 284.0 275.4 282.2 263.4 255.9 249.4 
Deferred acquisition costs1,289.1 1,253.2 1,138.8 1,215.5 1,398.6 1,120.9 1,084.0 1,027.8 
Reinsurance receivables4,879.7 4,829.4 4,802.4 4,785.7 4,727.5 4,712.6 4,613.1 4,584.3 
Income tax assets, net479.9 348.3 241.5 432.6 703.2 428.8 322.0 199.4 
Assets held in separate accounts4.9 4.9 4.2 4.2 3.2 3.7 3.9 4.2 
Other assets741.9 485.4 438.8 476.0 599.6 502.5 472.3 492.8 
Total assets$32,314.4 $32,716.0 $33,279.8 $33,630.9 $32,735.0 $33,979.5 $34,569.2 $35,339.9 
Liabilities
Liabilities for insurance products:
  Policyholder account liabilities$11,676.9 $11,851.4 $11,998.9 12,132.3 $12,138.1 $12,171.3 $12,357.5 $12,540.6 
  Future policy benefits11,234.2 11,314.3 11,423.2 11,498.5 11,429.9 11,767.5 11,753.1 11,744.2 
  Liability for policy and contract claims521.0 517.8 508.9 522.3 510.7 488.6 473.2 561.8 
  Unearned and advanced premiums255.9 248.1 242.8 260.5 251.0 243.6 256.8 252.6 
  Liabilities related to separate accounts4.9 4.9 4.2 4.2 3.2 3.7 3.9 4.2 
Other liabilities804.0 740.2 762.0 750.2 850.7 788.3 855.8 821.8 
Investment borrowings1,645.5 1,645.2 1,644.8 1,644.3 1,643.9 1,643.4 1,642.9 1,642.5 
Borrowings related to variable interest entities1,416.8 1,153.6 1,153.0 1,152.5 1,152.3 1,152.2 1,152.0 1,151.8 
Notes payable - direct corporate obligations917.3 988.3 988.7 989.1 989.4 989.7 990.1 1,136.2 
Total liabilities28,476.5 28,463.8 28,726.5 28,953.9 28,969.2 29,248.3 29,485.3 29,855.7 
Shareholders' equity
Common stock1.6 1.6 1.5 1.5 1.4 1.4 1.4 1.3 
Additional paid-in capital2,952.2 2,903.2 2,834.6 2,767.3 2,688.5 2,664.3 2,623.4 2,544.5 
Retained earnings229.2 249.2 274.3 535.7 480.7 545.3 657.5 752.3 
Total shareholders' equity before accumulated other comprehensive income3,183.0 3,154.0 3,110.4 3,304.5 3,170.6 3,211.0 3,282.3 3,298.1 
Accumulated other comprehensive income654.9 1,098.2 1,442.9 1,372.5 595.2 1,520.2 1,801.6 2,186.1 
Total shareholders' equity3,837.9 4,252.2 4,553.3 4,677.0 3,765.8 4,731.2 5,083.9 5,484.2 
Total liabilities and shareholders' equity$32,314.4 $32,716.0 $33,279.8 33,630.9 $32,735.0 $33,979.5 $34,569.2 $35,339.9 
Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20
Book value per common share$23.99 $27.12 $29.92 $31.58 $26.22 $33.38 $36.59 $40.54 
Book value per common share, excluding accumulated other comprehensive income (1) (2)$19.90 $20.12 $20.44 $22.32 $22.08 $22.66 $23.63 $24.38 
Book value per diluted share (1) (3)$19.76 $20.00 $20.30 $22.09 $22.03 $22.55 $23.45 $23.95 

Page 3

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Revenues
Insurance policy income$619.3 $618.3 $620.0 $623.2 $2,480.8 $628.7 $625.3 $628.3 $629.0 $2,511.3 
Net investment income:  
   General account assets268.8 284.9 274.1 270.2 1,098.0 280.3 231.7 276.9 290.1 1,079.0 
Policyholder and other special-purpose portfolios87.0 49.6 25.4 102.9 264.9 (110.7)87.1 66.6 100.5 143.5 
Realized investment gains (losses):
Net realized investment gains (losses)18.3 5.3 5.7 11.3 40.6 (60.1)27.9 8.2 6.3 (17.7)
Change in allowance for credit losses and other-than-temporary impairment losses (a)(2.2)— (3.4)(6.8)(12.4)(55.4)15.9 8.1 12.9 (18.5)
Total realized gains (losses)16.1 5.3 2.3 4.5 28.2 (115.5)43.8 16.3 19.2 (36.2)
Fee revenue and other income31.8 21.7 22.2 68.2 143.9 34.4 26.3 25.4 37.4 123.5 
Total revenues1,023.0 979.8 944.0 1,069.0 4,015.8 717.2 1,014.2 1,013.5 1,076.2 3,821.1 
Benefits and expenses
Insurance policy benefits623.5 610.4 582.8 600.3 2,417.0 490.8 540.3 560.7 566.1 2,157.9 
Interest expense41.0 38.6 37.5 35.2 152.3 33.4 28.4 23.7 23.3 108.8 
Amortization58.2 46.2 51.6 76.1 232.1 50.2 88.5 53.5 75.9 268.1 
Loss on extinguishment of debt— 7.3 — — 7.3 — — — — — 
Other operating costs and expenses234.7 229.6 218.6 250.0 932.9 213.8 251.6 209.2 267.4 942.0 
Total benefits and expenses957.4 932.1 890.5 961.6 3,741.6 788.2 908.8 847.1 932.7 3,476.8 
Income (loss) before income taxes65.6 47.7 53.5 107.4 274.2 (71.0)105.4 166.4 143.5 344.3 
Income tax expense (benefit) on period income13.8 10.1 11.5 23.1 58.5 (15.8)23.4 37.2 31.7 76.5 
Valuation allowance for deferred tax assets and other tax items— — — (193.7)(193.7)(34.0)— — — (34.0)
Net income (loss)$51.8 $37.6 $42.0 $278.0 $409.4 $(21.2)$82.0 $129.2 $111.8 $301.8 

______________
(a)     No portion of the other-than-temporary impairments recognized in the 2019 periods was included in accumulated other comprehensive income.

Page 4

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

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Insurance product margin (4)
Annuity margin$56.2 $57.2 $56.2 $60.5 $230.1 $59.5 $123.8 $45.3 $68.1 $296.7 
Health margin90.4 90.2 89.3 93.0 362.9 86.9 95.5 152.2 125.2 459.8 
Life margin43.1 51.7 54.6 46.7 196.1 44.3 36.1 47.3 37.3 165.0 
Total insurance product margin189.7 199.1 200.1 200.2 789.1 190.7 255.4 244.8 230.6 921.5 
Allocated expenses(135.9)(135.2)(131.3)(140.6)(543.0)(136.6)(128.1)(130.3)(162.7)(557.7)
Income from insurance products (5)53.8 63.9 68.8 59.6 246.1 54.1 127.3 114.5 67.9 363.8 
Fee income4.4 4.4 3.0 11.7 23.5 7.8 5.2 0.8 2.9 16.7 
Investment income not allocated to product lines (9)43.3 48.3 34.3 26.2 152.1 57.4 8.2 43.7 57.8 167.1 
Expenses not allocated to product lines(18.1)(19.9)(18.2)2.8 (53.4)(13.8)(38.5)(13.7)(17.8)(83.8)
Operating earnings before taxes83.4 96.7 87.9 100.3 368.3 105.5 102.2 145.3 110.8 463.8 
Income tax expense on operating income(17.6)(20.3)(18.7)(21.7)(78.3)(21.2)(22.8)(32.7)(24.8)(101.5)
Net operating income (10)65.8 76.4 69.2 78.6 290.0 84.3 79.4 112.6 86.0 362.3 
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization)(0.7)(1.7)(2.6)7.1 2.1 (63.7)12.3 7.7 12.6 (31.1)
Net change in market value of investments recognized in earnings16.6 6.8 4.7 (2.6)25.5 (48.4)31.2 8.5 6.0 (2.7)
Fair value changes related to agent deferred compensation plan(5.3)(11.6)(6.0)2.5 (20.4)— (13.2)— (3.1)(16.3)
Fair value changes in embedded derivative liabilities (net of related amortization)(29.6)(35.9)(29.3)13.4 (81.4)(66.7)(27.1)(1.6)16.3 (79.1)
Loss on extinguishment of debt— (7.3)— — (7.3)— — — — — 
Other1.2 0.7 (1.2)(13.3)(12.6)2.3 — 6.5 0.9 9.7 
Net non-operating income (loss) before taxes(17.8)(49.0)(34.4)7.1 (94.1)(176.5)3.2 21.1 32.7 (119.5)
Income tax expense (benefit) on non-operating income (loss)(3.8)(10.2)(7.2)1.4 (19.8)(37.0)0.6 4.5 6.9 (25.0)
Valuation allowance for deferred tax assets and other tax items— — — (193.7)(193.7)(34.0)— — — (34.0)
Net non-operating income (loss)(14.0)(38.8)(27.2)199.4 119.4 (105.5)2.6 16.6 25.8 (60.5)
Net income (loss)$51.8 $37.6 $42.0 $278.0 $409.4 $(21.2)$82.0 $129.2 $111.8 $301.8 
Per diluted share
Net operating income$0.41 $0.48 $0.45 $0.52 $1.85 $0.58 $0.55 $0.79 $0.61 $2.53 
Net non-operating income (loss)(0.09)(0.24)(0.18)1.32 0.76 (0.73)0.02 0.12 0.19 (0.42)
Net income (loss)$0.32 $0.24 $0.27 $1.84 $2.61 $(0.15)$0.57 $0.91 $0.80 $2.11 


Page 5

CNO FINANCIAL GROUP, INC.
Insurance Operations
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Insurance product margin (4)
Annuity:
Insurance policy income$6.6 $4.2 $5.1 $5.2 $21.1 $5.6 $4.5 $4.3 $4.4 $18.8 
Net investment income (5) (6)115.8 114.8 116.5 117.3 464.4 117.4 116.6 115.6 115.5 465.1 
Insurance policy benefits(7.9)(5.1)(7.3)7.5 (12.8)(5.5)107.7 (20.1)11.6 93.7 
Interest credited (6)(43.2)(41.6)(42.0)(40.1)(166.9)(42.0)(43.6)(42.4)(42.6)(170.6)
Amortization and non-deferred commissions(15.1)(15.1)(16.1)(29.4)(75.7)(16.0)(61.4)(12.1)(20.8)(110.3)
Annuity margin56.2 57.2 56.2 60.5 230.1 59.5 123.8 45.3 68.1 296.7 
Health:
Insurance policy income425.5 425.1 425.3 425.7 1,701.6 429.0 426.5 421.4 422.6 1,699.5 
Net investment income (5)69.5 69.8 70.1 70.5 279.9 70.4 70.1 70.9 70.9 282.3 
Insurance policy benefits(350.4)(358.4)(360.4)(355.7)(1,424.9)(353.8)(359.0)(295.5)(321.4)(1,329.7)
Amortization and non-deferred commissions(54.2)(46.3)(45.7)(47.5)(193.7)(58.7)(42.1)(44.6)(46.9)(192.3)
Health margin90.4 90.2 89.3 93.0 362.9 86.9 95.5 152.2 125.2 459.8 
Life:
Insurance policy income187.2 189.0 189.6 192.3 758.1 194.1 194.3 202.6 202.0 793.0 
Net investment income (5) (7)34.5 34.8 34.6 34.4 138.3 34.3 34.7 35.2 35.4 139.6 
Insurance policy benefits(130.8)(126.2)(121.4)(135.2)(513.6)(131.9)(147.8)(143.3)(147.0)(570.0)
Interest credited (7)(10.2)(10.6)(10.7)(10.4)(41.9)(10.3)(10.9)(11.4)(11.9)(44.5)
Amortization and non-deferred commissions(20.9)(20.3)(21.4)(19.9)(82.5)(21.9)(18.0)(21.6)(25.6)(87.1)
Advertising expense(16.7)(15.0)(16.1)(14.5)(62.3)(20.0)(16.2)(14.2)(15.6)(66.0)
Life margin43.1 51.7 54.6 46.7 196.1 44.3 36.1 47.3 37.3 165.0 
Total insurance product margin189.7 199.1 200.1 200.2 789.1 190.7 255.4 244.8 230.6 921.5 
Allocated expenses:
Branch office expenses(22.3)(16.3)(18.3)(18.9)(75.8)(18.9)(15.1)(13.5)(17.5)(65.0)
Other allocated expenses(113.6)(118.9)(113.0)(121.7)(467.2)(117.7)(113.0)(116.8)(145.2)(492.7)
Income from insurance products (8)53.8 63.9 68.8 59.6 246.1 54.1 127.3 114.5 67.9 363.8 
Fee income4.4 4.4 3.0 11.7 23.5 7.8 5.2 0.8 2.9 16.7 
Investment income not allocated to product lines (9)43.3 48.3 34.3 26.2 152.1 57.4 8.2 43.7 57.8 167.1 
Expenses not allocated to product lines(18.1)(19.9)(18.2)2.8 (53.4)(13.8)(38.5)(13.7)(17.8)(83.8)
Operating earnings before taxes83.4 96.7 87.9 100.3 368.3 105.5 102.2 145.3 110.8 463.8 
Income tax expense on operating income(17.6)(20.3)(18.7)(21.7)(78.3)(21.2)(22.8)(32.7)(24.8)(101.5)
Net operating income (10)$65.8 $76.4 $69.2 $78.6 $290.0 $84.3 $79.4 $112.6 $86.0 $362.3 

Page 6

CNO FINANCIAL GROUP, INC.
Margin from Annuity Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Annuity margin (4):
Fixed index annuities
Insurance policy income$3.1 $2.8 $2.9 $2.8 $11.6 $3.3 $2.6 $2.5 $2.9 $11.3 
Net investment income (5) (6)75.3 76.0 78.7 80.6 310.6 82.1 82.9 83.1 84.0 332.1 
Insurance policy benefits0.5 (0.5)(1.1)15.3 14.2 (1.0)104.1 (11.5)17.2 108.8 
Interest credited (6)(25.7)(24.7)(25.4)(24.0)(99.8)(26.2)(28.3)(27.6)(28.0)(110.1)
Amortization and non-deferred commissions(12.1)(12.1)(12.9)(20.1)(57.2)(13.8)(49.6)(9.9)(18.0)(91.3)
Margin from fixed index annuities$41.1 $41.5 $42.2 $54.6 $179.4 $44.4 $111.7 $36.6 $58.1 $250.8 
Average net insurance liabilities (11)$6,193.8 $6,388.9 $6,587.5 $6,751.0 $6,480.3 $6,921.4 $7,056.3 $7,173.9 $7,342.1 $7,123.4 
Margin/average net insurance liabilities (12)2.65 %2.60 %2.56 %3.24 %2.77 %2.57 %6.33 %2.04 %3.17 %3.52 %
Fixed interest annuities
Insurance policy income$0.5 $0.4 $0.4 $0.2 $1.5 $0.3 $0.1 $0.2 $0.3 $0.9 
Net investment income (5)32.8 31.2 30.2 29.0 123.2 28.1 26.8 25.7 25.0 105.6 
Insurance policy benefits(0.1)(0.1)— (0.2)(0.4)(0.1)— (0.4)(0.1)(0.6)
Interest credited(16.4)(16.0)(15.7)(15.2)(63.3)(14.9)(14.4)(14.2)(13.9)(57.4)
Amortization and non-deferred commissions(3.0)(3.0)(3.2)(9.2)(18.4)(2.1)(11.7)(2.1)(2.8)(18.7)
Margin from fixed interest annuities$13.8 $12.5 $11.7 $4.6 $42.6 $11.3 $0.8 $9.2 $8.5 $29.8 
Average net insurance liabilities (11)$2,417.3 $2,337.9 $2,263.4 $2,204.3 $2,305.7 $2,146.2 $2,088.2 $2,041.6 $2,000.1 $2,069.1 
Margin/average net insurance liabilities (12)2.28 %2.14 %2.07 %0.83 %1.85 %2.11 %0.15 %1.80 %1.70 %1.44 %
Other annuities
Insurance policy income$3.0 $1.0 $1.8 $2.2 $8.0 $2.0 $1.8 $1.6 $1.2 $6.6 
Net investment income (5)7.7 7.6 7.6 7.7 30.6 7.2 6.9 6.8 6.5 27.4 
Insurance policy benefits(8.3)(4.5)(6.2)(7.6)(26.6)(4.4)3.6 (8.2)(5.5)(14.5)
Interest credited(1.1)(0.9)(0.9)(0.9)(3.8)(0.9)(0.9)(0.6)(0.7)(3.1)
Amortization and non-deferred commissions— — — (0.1)(0.1)(0.1)(0.1)(0.1)— (0.3)
Margin from other annuities$1.3 $3.2 $2.3 $1.3 $8.1 $3.8 $11.3 $(0.5)$1.5 $16.1 
Average net insurance liabilities (11)$575.7 $574.4 $569.8 $565.0 $571.2 $551.5 $533.5 $524.0 $517.9 $531.7 
Margin/average net insurance liabilities (12)0.90 %2.23 %1.61 %0.92 %1.42 %2.76 %8.47 %(0.38)%1.16 %3.03 %
Total annuity margin$56.2 $57.2 $56.2 $60.5 $230.1 $59.5 $123.8 $45.3 $68.1 $296.7 
Average net insurance liabilities (11)$9,186.8 $9,301.2 $9,420.7 $9,520.3 $9,357.2 $9,619.1 $9,678.0 $9,739.5 $9,860.1 $9,724.2 
Margin/average net insurance liabilities (12)2.45 %2.46 %2.39 %2.54 %2.46 %2.47 %5.12 %1.86 %2.76 %3.05 %

Page 7

CNO FINANCIAL GROUP, INC.
Margin from Health Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Health margin (4):
Supplemental health
Insurance policy income$163.2 $164.4 $165.3 $167.5 $660.4 $169.8 $169.8 $169.2 $170.6 $679.4 
Net investment income (5)35.0 34.7 34.4 34.6 138.7 34.9 34.9 35.5 35.6 140.9 
Insurance policy benefits(123.1)(128.9)(128.2)(126.9)(507.1)(132.9)(138.1)(125.8)(124.1)(520.9)
Amortization and non-deferred commissions(27.6)(27.8)(27.6)(28.3)(111.3)(29.6)(26.2)(27.8)(29.1)(112.7)
Margin from supplemental health$47.5 $42.4 $43.9 $46.9 $180.7 $42.2 $40.4 $51.1 $53.0 $186.7 
Margin/insurance policy income29 %26 %27 %28 %27 %25 %24 %30 %31 %27 %
Medicare supplement
Insurance policy income$195.0 $193.7 $192.8 $191.5 $773.0 $192.3 $190.3 $186.1 $186.0 $754.7 
Net investment income (5)1.2 1.1 1.0 1.1 4.4 1.2 1.2 1.2 1.3 4.9 
Insurance policy benefits(141.8)(143.8)(146.0)(144.4)(576.0)(136.7)(136.6)(102.0)(129.7)(505.0)
Amortization and non-deferred commissions(23.0)(15.1)(14.7)(16.1)(68.9)(25.4)(13.0)(13.6)(14.3)(66.3)
Margin from Medicare supplement$31.4 $35.9 $33.1 $32.1 $132.5 $31.4 $41.9 $71.7 $43.3 $188.3 
Margin/insurance policy income16 %19 %17 %17 %17 %16 %22 %39 %23 %25 %
Long-term care
Insurance policy income$67.3 $67.0 $67.2 $66.7 $268.2 $66.9 $66.4 $66.1 $66.0 $265.4 
Net investment income (5)33.3 34.0 34.7 34.8 136.8 34.3 34.0 34.2 34.0 136.5 
Insurance policy benefits(85.5)(85.7)(86.2)(84.4)(341.8)(84.2)(84.3)(67.7)(67.6)(303.8)
Amortization and non-deferred commissions(3.6)(3.4)(3.4)(3.1)(13.5)(3.7)(2.9)(3.2)(3.5)(13.3)
Margin from long-term care$11.5 $11.9 $12.3 $14.0 $49.7 $13.3 $13.2 $29.4 $28.9 $84.8 
Margin/insurance policy income17 %18 %18 %21 %19 %20 %20 %44 %44 %32 %
Total health margin$90.4 $90.2 $89.3 $93.0 $362.9 $86.9 $95.5 $152.2 $125.2 $459.8 
Margin/insurance policy income21 %21 %21 %22 %21 %20 %22 %36 %30 %27 %

Page 8

CNO FINANCIAL GROUP, INC.
Margin from Life Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Life margin (4):
Interest sensitive life
Insurance policy income$36.2 $37.3 $37.1 $38.0 $148.6 $39.6 $38.7 $40.1 $40.4 $158.8 
Net investment income (5) (7)11.6 11.7 11.7 11.7 46.7 11.7 11.7 11.9 12.1 47.4 
Insurance policy benefits(15.9)(14.9)(13.6)(23.2)(67.6)(15.7)(23.2)(16.0)(21.2)(76.1)
Interest credited (7)(10.0)(10.4)(10.5)(10.2)(41.1)(10.2)(10.7)(11.2)(11.7)(43.8)
Amortization and non-deferred commissions(7.0)(7.1)(6.7)(5.0)(25.8)(7.4)(4.8)(6.9)(9.1)(28.2)
Margin from interest sensitive life$14.9 $16.6 $18.0 $11.3 $60.8 $18.0 $11.7 $17.9 $10.5 $58.1 
Average net insurance liabilities (11)$852.0 $860.7 $869.2 $883.4 $866.3 $900.1 $913.5 $926.7 $939.9 $920.0 
Interest margin$1.6 $1.3 $1.2 $1.5 $5.6 $1.5 $1.0 $0.7 $0.4 $3.6 
Interest margin/average net insurance liabilities (12)0.75 %0.60 %0.55 %0.68 %0.65 %0.67 %0.44 %0.30 %0.17 %0.39 %
Underwriting margin$13.3 $15.3 $16.8 $9.8 $55.2 $16.5 $10.7 $17.2 $10.1 $54.5 
Underwriting margin/insurance policy income37 %41 %45 %26 %37 %42 %28 %43 %25 %34 %
Traditional life
Insurance policy income$151.0 $151.7 $152.5 $154.3 $609.5 $154.5 $155.6 $162.5 $161.6 $634.2 
Net investment income (5)22.9 23.1 22.9 22.7 91.6 22.6 23.0 23.3 23.3 92.2 
Insurance policy benefits(114.9)(111.3)(107.8)(112.0)(446.0)(116.2)(124.6)(127.3)(125.8)(493.9)
Interest credited(0.2)(0.2)(0.2)(0.2)(0.8)(0.1)(0.2)(0.2)(0.2)(0.7)
Amortization and non-deferred commissions(13.9)(13.2)(14.7)(14.9)(56.7)(14.5)(13.2)(14.7)(16.5)(58.9)
Advertising expense(16.7)(15.0)(16.1)(14.5)(62.3)(20.0)(16.2)(14.2)(15.6)(66.0)
Margin from traditional life$28.2 $35.1 $36.6 $35.4 $135.3 $26.3 $24.4 $29.4 $26.8 $106.9 
Margin/insurance policy income19 %23 %24 %23 %22 %17 %16 %18 %17 %17 %
Margin excluding advertising expense/insurance policy income30 %33 %35 %32 %32 %30 %26 %27 %26 %27 %
Total life margin$43.1 $51.7 $54.6 $46.7 $196.1 $44.3 $36.1 $47.3 $37.3 $165.0 


Page 9

CNO FINANCIAL GROUP, INC.
Collected Premiums From Annuity and Interest Sensitive Life Products
and Insurance Policy Income
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Collected premiums from annuity and interest-sensitive life products:
Annuities$315.7 $341.2 $325.2 $324.3 $1,306.4 $292.2 $242.7 $285.1 $345.0 $1,165.0 
Interest-sensitive life47.5 51.9 51.1 50.8 201.3 53.1 51.3 50.0 52.1 206.5 
Total collected premiums from annuity and interest-sensitive life products$363.2 $393.1 $376.3 $375.1 $1,507.7 $345.3 $294.0 $335.1 $397.1 $1,371.5 
Insurance policy income:
Annuity products
Fixed index annuities$3.1 $2.8 $2.9 $2.8 $11.6 $3.3 $2.6 $2.5 $2.9 $11.3 
Fixed interest annuities0.5 0.4 0.4 0.2 1.5 0.3 0.1 0.2 0.3 0.9 
Other annuities3.0 1.0 1.8 2.2 8.0 2.0 1.8 1.6 1.2 6.6 
Total annuity insurance policy income6.6 4.2 5.1 5.2 21.1 5.6 4.5 4.3 4.4 18.8 
Health products
Supplemental health163.2 164.4 165.3 167.5 660.4 169.8 169.8 169.2 170.6 679.4 
Medicare supplement195.0 193.7 192.8 191.5 773.0 192.3 190.3 186.1 186.0 754.7 
Long-term care67.3 67.0 67.2 66.7 268.2 66.9 66.4 66.1 66.0 265.4 
Total health insurance policy income425.5 425.1 425.3 425.7 1,701.6 429.0 426.5 421.4 422.6 1,699.5 
Life products
Interest-sensitive life 36.2 37.3 37.1 38.0 148.6 39.6 38.7 40.1 40.4 158.8 
Traditional life 151.0 151.7 152.5 154.3 609.5 154.5 155.6 162.5 161.6 634.2 
Total life insurance policy income187.2 189.0 189.6 192.3 758.1 194.1 194.3 202.6 202.0 793.0 
Total insurance policy income$619.3 $618.3 $620.0 $623.2 $2,480.8 $628.7 $625.3 $628.3 $629.0 $2,511.3 


Page 10

CNO FINANCIAL GROUP, INC.
Health and Life
New Annualized Premiums ("NAP")
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Consumer Division
Health products:
Supplemental health$13.6 $14.8 $15.4 $25.7 $69.5 $19.6 $5.6 $16.2 $21.5 $62.9 
Medicare supplement12.4 14.5 14.2 17.2 58.3 9.7 8.9 11.0 12.2 41.8 
Long-term care5.8 6.4 6.4 8.0 26.6 5.9 4.3 7.1 7.2 24.5 
Total Consumer Division health NAP31.8 35.7 36.0 50.9 154.4 35.2 18.8 34.3 40.9 129.2 
Life products:
Interest sensitive life4.9 7.0 5.7 5.5 23.1 5.6 5.1 5.8 6.0 22.5 
Traditional life31.7 29.8 29.0 25.1 115.6 33.0 41.5 37.7 29.8 142.0 
Total Consumer Division life NAP36.6 36.8 34.7 30.6 138.7 38.6 46.6 43.5 35.8 164.5 
Total Consumer Division health and life NAP$68.4 $72.5 $70.7 $81.5 $293.1 $73.8 $65.4 $77.8 $76.7 $293.7 
Worksite Division
Health products:
Supplemental health$8.3 $10.1 $10.7 $11.8 $40.9 $8.8 $3.2 $5.1 $8.2 $25.3 
Life products:
Interest sensitive life3.1 2.6 2.6 4.3 12.6 2.5 0.8 0.8 1.3 5.4 
Total Worksite Division health and life NAP$11.4 $12.7 $13.3 $16.1 $53.5 $11.3 $4.0 $5.9 $9.5 $30.7 
Total NAP (both divisions)
Health products:
Supplemental health$21.9 $24.9 $26.1 $37.5 $110.4 $28.4 $8.8 $21.3 $29.7 $88.2 
Medicare supplement12.4 14.5 14.2 17.2 58.3 9.7 8.9 11.0 12.2 41.8 
Long-term care5.8 6.4 6.4 8.0 26.6 5.9 4.3 7.1 7.2 24.5 
Total health NAP40.1 45.8 46.7 62.7 195.3 44.0 22.0 39.4 49.1 154.5 
Life products:
Interest sensitive life 8.0 9.6 8.3 9.8 35.7 8.1 5.9 6.6 7.3 27.9 
Traditional life 31.7 29.8 29.0 25.1 115.6 33.0 41.5 37.7 29.8 142.0 
Total life NAP39.7 39.4 37.3 34.9 151.3 41.1 47.4 44.3 37.1 169.9 
Total NAP$79.8 $85.2 $84.0 $97.6 $346.6 $85.1 $69.4 $83.7 $86.2 $324.4 

Page 11

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
201920192019201920192020 (a)2020202020202020
Basic
Shares outstanding, beginning of period162,201.7 159,955.2 156,768.0 152,183.5 162,201.7 148,084.2 143,610.0 141,718.6 138,931.4 148,084.2 
Weighted average shares issued during the period:
Shares repurchased(1,485.6)(1,238.1)(2,585.5)(2,157.3)(6,906.9)(2,444.0)(227.2)(835.9)(1,053.9)(6,685.8)
Amounts related to employee benefit plans320.9 127.3 76.6 114.9 974.0 287.5 42.7 19.3 356.2 962.7 
Shares withheld for the payment of the exercise price and taxes related to employee benefit plans(88.7)(28.3)(2.1)(2.8)(228.9)(98.3)(4.0)(1.8)(1.9)(265.4)
Weighted average basic shares outstanding during the period160,948.3 158,816.1 154,257.0 150,138.3 156,039.9 145,829.4 143,421.5 140,900.2 138,231.8 142,095.7 
Basic shares outstanding, end of period159,955.2 156,768.0 152,183.5 148,084.2 148,084.2 143,610.0 141,718.6 138,931.4 135,279.1 135,279.1 
Diluted
Weighted average basic shares outstanding160,948.3 158,816.1 154,257.0 150,138.3 156,039.9 145,829.4 143,421.5 140,900.2 138,231.8 142,095.7 
Common stock equivalent shares related to:
Employee benefit plans1,240.7 918.7 1,002.7 1,268.8 1,107.7 — 519.1 830.2 2,154.7 1,068.1 
Weighted average diluted shares outstanding during the period162,189.0 159,734.8 155,259.7 151,407.1 157,147.6 145,829.4 143,940.6 141,730.4 140,386.5 143,163.8 
Diluted shares outstanding, end of period161,123.2 157,662.5 153,242.8 149,580.7 149,580.7 143,936.2 142,410.1 139,972.2 137,717.3 137,717.3 

___________
(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 12

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

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Fixed index annuities
Balance as of the beginning of the period$6,433.9 $6,594.7 $6,787.5 $6,956.9 $6,433.9 $7,133.1 $7,280.3 $7,394.1 $7,567.2 $7,133.1 
Gross deposits300.1 325.4 311.1 305.2 1,241.8 281.7 231.5 277.2 331.7 1,122.1 
Withdrawals(156.9)(156.5)(154.1)(179.8)(647.3)(185.8)(148.0)(133.2)(164.6)(631.6)
Returns reinvested17.6 23.9 12.4 50.8 104.7 51.3 30.3 29.1 27.1 137.8 
Balance as of the end of the period$6,594.7 $6,787.5 $6,956.9 $7,133.1 $7,133.1 $7,280.3 $7,394.1 $7,567.2 $7,761.4 $7,761.4 
Fixed interest annuities
Balance as of the beginning of the period$2,509.3 $2,425.8 $2,345.2 $2,273.0 $2,509.3 $2,217.5 $2,147.4 $2,089.4 $2,044.3 $2,217.5 
Gross deposits13.6 14.3 11.8 17.1 56.8 9.3 9.0 6.8 12.3 37.4 
Withdrawals(113.4)(110.9)(99.8)(88.0)(412.1)(94.3)(81.1)(66.1)(71.8)(313.3)
Returns reinvested16.3 16.0 15.8 15.4 63.5 14.9 14.1 14.2 14.1 57.3 
Balance as of the end of the period$2,425.8 $2,345.2 $2,273.0 $2,217.5 $2,217.5 $2,147.4 $2,089.4 $2,044.3 $1,998.9 $1,998.9 
Total annuities
Balance as of the beginning of the period$8,943.2 $9,020.5 $9,132.7 $9,229.9 $8,943.2 $9,350.6 $9,427.7 $9,483.5 $9,611.5 $9,350.6 
Gross deposits313.7 339.7 322.9 322.3 1,298.6 291.0 240.5 284.0 344.0 1,159.5 
Withdrawals(270.3)(267.4)(253.9)(267.8)(1,059.4)(280.1)(229.1)(199.3)(236.4)(944.9)
Returns reinvested33.9 39.9 28.2 66.2 168.2 66.2 44.4 43.3 41.2 195.1 
Balance as of the end of the period$9,020.5 $9,132.7 $9,229.9 $9,350.6 $9,350.6 $9,427.7 $9,483.5 $9,611.5 $9,760.3 $9,760.3 

Page 13

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019 (a)2019 (a)2020 (b)202020202020 (c)2020 (c)
Net gain from operations before interest expense and federal income taxes$97.8 $86.0 $62.1 $66.2 $312.1 $33.3 $99.5 $135.1 $72.6 $340.5 
Interest expense on surplus debentures held by parent company12.6 12.3 22.7 12.3 59.9 12.1 12.1 21.0 12.2 57.4 
Net gain from operations before federal income taxes85.2 73.7 39.4 53.9 252.2 21.2 87.4 114.1 60.4 283.1 
Federal income tax expense (benefit)1.9 (5.4)(4.5)(47.8)(55.8)(113.0)(6.8)(16.1)(2.5)(138.4)
Net gain from operations before net realized capital gains (losses)83.3 79.1 43.9 101.7 308.0 134.2 94.2 130.2 62.9 421.5 
Net realized capital losses(9.9)(3.6)(0.1)(3.0)(16.6)(3.3)(7.8)0.4 (1.2)(11.9)
Net income $73.4 $75.5 $43.8 $98.7 $291.4 $130.9 $86.4 $130.6 $61.7 $409.6 
Capital and surplus$1,717.4 $1,698.5 $1,695.3 $1,696.6 $1,696.6 $1,750.3 $1,771.1 $1,868.1 $1,805.5 $1,805.5 
Asset valuation reserve (AVR)248.0 254.5 261.0 295.9 295.9 236.4 226.7 269.9 304.0 304.0 
Capital, surplus and AVR1,965.4 1,953.0 1,956.3 1,992.5 1,992.5 1,986.7 1,997.8 2,138.0 2,109.5 2,109.5 
Interest maintenance reserve (IMR)418.3 415.4 415.1 420.1 420.1 408.2 410.6 408.2 406.6 406.6 
Total statutory capital, surplus, AVR & IMR$2,383.7 $2,368.4 $2,371.4 $2,412.6 $2,412.6 $2,394.9 $2,408.4 $2,546.2 $2,516.1 $2,516.1 
Risk-based capital ratio416 %409 %405 %408 %408 %406 %405 %428 %411 %411 %
___________
(a)      The federal income tax benefit recognized in such periods reflects a $46.0 million tax sharing payment due from the holding
company that will be returned to the holding company in the form of a dividend. There is no capital and surplus impact related
to these transactions.
(b)    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.
(c)    Such amounts are preliminary as the statutory basis financial statements of our insurance subsidiaries for 4Q20 will
be filed with the respective insurance regulators on or about March 1, 2021.



Page 14

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Net investment income$355.8 $334.5 $299.5 $373.1 $1,362.9 $169.6 $318.8 $343.5 $390.6 $1,222.5 
Allocated to product lines:
Annuity(115.8)(114.8)(116.5)(117.3)(464.4)(117.4)(116.6)(115.6)(115.5)(465.1)
Health(69.5)(69.8)(70.1)(70.5)(279.9)(70.4)(70.1)(70.9)(70.9)(282.3)
Life(34.5)(34.8)(34.6)(34.4)(138.3)(34.3)(34.7)(35.2)(35.4)(139.6)
Equity returns credited to policyholder account balances(43.6)(23.1)(3.6)(83.4)(153.7)136.5 (50.7)(46.0)(77.6)(37.8)
Amounts allocated to product lines and credited to policyholder account balances(263.4)(242.5)(224.8)(305.6)(1,036.3)(85.6)(272.1)(267.7)(299.4)(924.8)
Amount related to variable interest entities and other non-operating items(19.2)(16.0)(13.7)(12.7)(61.6)(11.6)(9.6)(9.8)(8.2)(39.2)
Interest expense on debt(12.1)(12.6)(13.9)(13.8)(52.4)(13.6)(13.6)(13.6)(14.4)(55.2)
Interest expense on investment borrowings(12.4)(12.3)(11.4)(10.1)(46.2)(9.1)(5.8)(3.4)(2.9)(21.2)
Less amounts credited to deferred compensation plans (offsetting investment income)(5.4)(2.8)(1.4)(4.7)(14.3)7.7 (9.5)(5.3)(7.9)(15.0)
Total adjustments(49.1)(43.7)(40.4)(41.3)(174.5)(26.6)(38.5)(32.1)(33.4)(130.6)
Investment income not allocated to product lines$43.3 $48.3 $34.3 $26.2 $152.1 $57.4 $8.2 $43.7 $57.8 $167.1 




Page 15

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Investment income not allocated:
Excluding variable components:
From general account assets$28.7 $30.2 $26.2 $20.8 $105.9 $23.3 $26.5 $24.6 $25.2 $99.6 
Other investment income1.4 0.8 1.5 1.0 4.7 0.5 0.1 0.1 0.1 0.8 
Spread income from Federal Home Loan Bank investment program:
Investment income on matched assets19.0 18.5 16.0 16.6 70.1 13.5 10.9 10.9 10.7 46.0 
Investment borrowing expenses(12.4)(12.3)(11.4)(10.1)(46.2)(9.1)(5.8)(3.4)(2.9)(21.2)
Net spread income6.6 6.2 4.6 6.5 23.9 4.4 5.1 7.5 7.8 24.8 
Interest expense on corporate debt(12.1)(12.6)(13.9)(13.8)(52.4)(13.6)(13.6)(13.6)(14.4)(55.2)
Total excluding variable components 24.6 24.6 18.4 14.5 82.1 14.6 18.1 18.6 18.7 70.0 
Variable components:
Net income from Corporate Owned Life Insurance ("COLI") supporting agent deferred compensation plan
Change in value of COLI investments14.4 5.0 3.1 (0.2)22.3 3.2 6.4 3.1 3.0 15.7 
Increase in liability for agent deferred compensation plan(1.5)(1.5)(1.5)(1.8)(6.3)(1.6)(1.6)(1.6)(1.6)(6.4)
Net COLI income (loss)12.9 3.5 1.6 (2.0)16.0 1.6 4.8 1.5 1.4 9.3 
Other variable components:
Hedge variance related to fixed index products(0.8)(0.6)(0.1)(0.2)(1.7)(0.1)3.2 (1.0)(0.4)1.7 
Trading account4.0 2.3 1.5 1.1 8.9 17.3 6.0 2.6 2.2 28.1 
Other (a)2.6 18.5 12.9 12.8 46.8 24.0 (23.9)22.0 35.9 58.0 
Total variable components18.7 23.7 15.9 11.7 70.0 42.8 (9.9)25.1 39.1 97.1 
Total investment income not allocated to product lines $43.3 $48.3 $34.3 $26.2 $152.1 $57.4 $8.2 $43.7 $57.8 $167.1 

___________
(a)    Includes income (loss) on alternative investments, prepayment and call income, impacts of changes in projected cash flows and other investment income.

Page 16

CNO FINANCIAL GROUP, INC.
Investment Income Allocated to Product Lines (5)
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
Average net insurance liabilities (11)
Annuity:
Fixed index annuities$6,193.8 $6,388.9 $6,587.5 $6,751.0 $6,480.3 $6,921.4 $7,056.3 $7,173.9 $7,342.1 $7,123.4 
Fixed interest annuities2,417.3 2,337.9 2,263.4 2,204.3 2,305.7 2,146.2 2,088.2 2,041.6 2,000.1 2,069.1 
Other annuities575.7 574.4 569.8 565.0 571.2 551.5 533.5 524.0 517.9 531.7 
Total annuity average net insurance liabilities (11)9,186.8 9,301.2 9,420.7 9,520.3 9,357.2 9,619.1 9,678.0 9,739.5 9,860.1 9,724.2 
Health:
Supplemental health2,743.3 2,779.9 2,815.0 2,849.8 2,797.0 2,887.1 2,935.7 2,988.1 3,031.9 2,960.7 
Medicare supplement99.0 94.7 89.9 97.5 95.3 102.5 111.6 116.9 114.4 111.3 
Long-term care2,372.2 2,421.8 2,471.0 2,502.0 2,441.7 2,482.8 2,464.2 2,477.7 2,487.2 2,478.0 
Total health average net insurance liabilities (11)5,214.5 5,296.4 5,375.9 5,449.3 5,334.0 5,472.4 5,511.5 5,582.7 5,633.5 5,550.0 
Life:
Interest sensitive852.0 860.7 869.2 883.4 866.3 900.1 913.5 926.7 939.9 920.0 
Traditional1,793.0 1,813.3 1,834.9 1,859.0 1,825.1 1,872.5 1,883.5 1,905.9 1,933.2 1,898.8 
Total life average net insurance liabilities (11)2,645.0 2,674.0 2,704.1 2,742.4 2,691.4 2,772.6 2,797.0 2,832.6 2,873.1 2,818.8 
Total average net insurance liabilities (11)$17,046.3 $17,271.6 $17,500.7 $17,712.0 $17,382.6 $17,864.1 $17,986.5 $18,154.8 $18,366.7 $18,093.0 
Average yield on allocated investments
Annuity:
Fixed index annuities4.86 %4.76 %4.78 %4.78 %4.79 %4.74 %4.70 %4.63 %4.58 %4.66 %
Fixed interest annuities5.43 %5.34 %5.34 %5.26 %5.34 %5.24 %5.13 %5.04 %5.00 %5.10 %
Other annuities5.35 %5.29 %5.34 %5.45 %5.36 %5.22 %5.17 %5.19 %5.02 %5.15 %
Average yield on investments allocated to annuities5.04 %4.94 %4.95 %4.93 %4.96 %4.88 %4.82 %4.75 %4.69 %4.78 %
Health:
Supplemental health5.10 %4.99 %4.89 %4.86 %4.96 %4.84 %4.76 %4.75 %4.70 %4.76 %
Medicare supplement4.53 %4.56 %4.48 %4.39 %4.49 %4.41 %4.34 %4.33 %4.28 %4.34 %
Long-term care5.62 %5.62 %5.62 %5.56 %5.60 %5.53 %5.52 %5.52 %5.47 %5.51 %
Average yield on investments allocated to health products5.33 %5.27 %5.22 %5.17 %5.25 %5.15 %5.09 %5.08 %5.03 %5.09 %
Life:
Interest sensitive5.45 %5.44 %5.38 %5.30 %5.39 %5.20 %5.12 %5.14 %5.15 %5.15 %
Traditional5.11 %5.10 %4.99 %4.88 %5.02 %4.83 %4.88 %4.89 %4.82 %4.86 %
Average yield on investments allocated to life products5.22 %5.21 %5.12 %5.02 %5.14 %4.95 %4.96 %4.97 %4.93 %4.95 %
Total average yield5.16 %5.08 %5.06 %5.02 %5.08 %4.97 %4.92 %4.88 %4.83 %4.90 %
Allocated investment income
Annuity:
Fixed index annuities$75.3 $76.0 $78.7 $80.6 $310.6 $82.1 $82.9 $83.1 $84.0 $332.1 
Fixed interest annuities32.8 31.2 30.2 29.0 123.2 28.1 26.8 25.7 25.0 105.6 
Other annuities7.7 7.6 7.6 7.7 30.6 7.2 6.9 6.8 6.5 27.4 
Total investment income allocated to annuities115.8 114.8 116.5 117.3 464.4 117.4 116.6 115.6 115.5 465.1 
Health:
Supplemental health35.0 34.7 34.4 34.6 138.7 34.9 34.9 35.5 35.6 140.9 
Medicare supplement1.2 1.1 1.0 1.1 4.4 1.2 1.2 1.2 1.3 4.9 
Long-term care33.3 34.0 34.7 34.8 136.8 34.3 34.0 34.2 34.0 136.5 
Total investment income allocated to health products69.5 69.8 70.1 70.5 279.9 70.4 70.1 70.9 70.9 282.3 
Life:
   Interest sensitive11.6 11.7 11.7 11.7 46.7 11.7 11.7 11.9 12.1 47.4 
Traditional22.9 23.1 22.9 22.7 91.6 22.6 23.0 23.3 23.3 92.2 
Total investment income allocated to life products34.5 34.8 34.6 34.4 138.3 34.3 34.7 35.2 35.4 139.6 
Total allocated investment income$219.8 $219.4 $221.2 $222.2 $882.6 $222.1 $221.4 $221.7 $221.8 $887.0 
Page 17

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

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2019201920192019201920202020202020202020
General account assets investment income$268.8 $284.9 $274.1 $270.2 $1,098.0 $280.3 $231.7 $276.9 $290.1 $1,079.0 
Policyholder and other special purpose portfolio investment income87.0 49.6 25.4 102.9 264.9 (110.7)87.1 66.6 100.5 143.5 
Less equity returns credited to policyholders:
Annuity(37.9)(20.2)(3.0)(74.0)(135.1)119.9 (44.9)(39.3)(68.0)(32.3)
Life(5.7)(2.9)(0.6)(9.4)(18.6)16.6 (5.8)(6.7)(9.6)(5.5)
Less amount related to variable interest entities(19.2)(16.0)(13.7)(12.7)(61.6)(11.6)(9.6)(9.8)(8.2)(39.2)
Less amounts credited to deferred compensation plans(5.4)(2.9)(1.4)(4.8)(14.5)7.7 (9.5)(5.3)(7.9)(15.0)
Other special purpose portfolio investment income18.8 7.6 6.7 2.0 35.1 21.9 17.3 5.5 6.8 51.5 
Adjusted net investment income287.6 292.5 280.8 272.2 1,133.1 302.2 249.0 282.4 296.9 1,130.5 
Less amounts allocated to product lines
Annuity(115.8)(114.8)(116.5)(117.3)(464.4)(117.4)(116.6)(115.6)(115.5)(465.1)
Health(69.5)(69.8)(70.1)(70.5)(279.9)(70.4)(70.1)(70.9)(70.9)(282.3)
Life(34.5)(34.8)(34.6)(34.4)(138.3)(34.3)(34.7)(35.2)(35.4)(139.6)
Total investment income allocated to product lines(219.8)(219.4)(221.2)(222.2)(882.6)(222.1)(221.4)(221.7)(221.8)(887.0)
Less interest expense on investment borrowings(12.4)(12.3)(11.4)(10.0)(46.1)(9.1)(5.8)(3.4)(2.9)(21.2)
Less interest expense on debt(12.1)(12.5)(13.9)(13.8)(52.3)(13.6)(13.6)(13.6)(14.4)(55.2)
Investment income not allocated to product lines$43.3 $48.3 $34.3 $26.2 $152.1 $57.4 $8.2 $43.7 $57.8 $167.1 

Other Investment Data

1Q2Q3Q4Q1Q2Q3Q4Q
20192019201920192020202020202020
Average invested assets and cash$21,706.1 $21,860.0 $22,074.2 $22,280.3 $22,483.7 $22,618.1 $22,832.1 $23,170.3 
Net investment income from general account investments268.8 284.9 274.1 270.2 280.3 231.7 276.9 290.1 
New money rate (14)4.38 %4.58 %4.66 %4.08 %4.46 %4.49 %4.08 %3.58 %
Book yield5.15 %5.08 %5.03 %4.97 %4.90 %4.88 %4.85 %4.81 %
Earned yield5.04 %5.34 %5.12 %4.98 %5.15 %4.23 %5.04 %5.22 %
Pre-pay/call/make-whole income$2.5 $6.6 $3.0 $4.6 $8.9 $0.1 $2.6 $9.1 
Alternative investment income5.5 17.1 17.7 12.9 17.2 (12.5)27.1 35.0 
Impairments2.2 — 3.4 6.8 8.1 — — — 

Page 18

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.

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 
Page 19

___________
(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.

CNO FINANCIAL GROUP, INC.
4Q19 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 4Q19 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.

Three months ended
December 31, 2019
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$60.5 $0.3 (a)$60.8 
Health margin93.0 — 93.0 
Life margin46.7 9.7 (a)56.4 
Total insurance product margin200.2 10.0 210.2 
Allocated expenses(140.6)— (140.6)
Income from insurance products (5)59.6 10.0 69.6 
Fee income11.7 — 11.7 
Investment income not allocated to product lines (9)26.2 — 26.2 
Expenses not allocated to product lines2.8 (20.0)(b)(17.2)
Operating earnings before taxes100.3 (10.0)90.3 
Income tax (expense) benefit on operating income(21.7)2.1 (19.6)
Net operating income (10)$78.6 $(7.9)$70.7 
Net operating income per diluted share$0.52 $(0.05)$0.47 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.
(b)$20.0 million of the net favorable impact from legal and regulatory matters.


Page 20


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 $37.9 million, $20.2 million, $3.0 million, $74.0 million, $(119.9) million, $44.9 million, $39.3 million and $68.0 million in 1Q19, 2Q19, 3Q19, 4Q19, 1Q20, 2Q20, 3Q20 and 4Q20, 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 $5.7 million, $2.9 million, $.6 million, $9.4 million, $(16.6) million, $5.8 million, $6.7 million and $9.6 million in 1Q19, 2Q19, 3Q19, 4Q19, 1Q20, 2Q20, 3Q20 and 4Q20, 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 the Federal Home Loan Bank investment borrowing program 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 21
Fourth Quarter 2020 Financial and operating results for the period ended December 31, 2020 February 9, 2021 Unless otherwise specified, comparisons in this presentation are between 4Q19 and 4Q20. Exhibit 99.3

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 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 9, 2021, 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 2020 Earnings | February 9, 2021 3

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 4 DirectPath Transaction Acquisition enhances Worksite Division growth outlook (As of 12/31/2020) Strategic RationaleDirectPath Description • DirectPath is a leading national provider of year- round, technology-driven employee benefits management services to employers and employees • DirectPath’s personalized services help employers reduce healthcare and benefits administration costs and assist employees to make smart, well-informed and cost-effective benefits decisions • Generates significant sales of voluntary supplemental health insurance • Significant cross-sell opportunities; creates broader distribution for CNO/WBD products • Builds unique capabilities, improves competitive positioning • Creates a one-stop-shop for employers, brokers, and groups • Helps us get deeper in employer value chain; delivers strong employer ROI • Enhances our enrollment capabilities • Source of small group leads • Diversifies revenues / enhances fee income / drives ROENumber of clients: 400 Number of broker partners: 7,000 Client employee base: 2.5 million Employee satisfaction: 95% Average Group Size: Education 5,000 Advocacy and Transparency 1,000 Communications Compliance 91,000

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 5 2020 Year in Review Solid execution in face of challenging backdrop Strong Operational Performance Building on Track Record of Execution • Operating income per share1 up 37% • Strong execution on Transformation objectives • D2C / exclusive field agency integration • Launch of online healthcare marketplace • Worksite improving, full recovery proceeding slowly • Investments in associate programs; DE&I and ESG progress • Generated $387 million in free cash flow • Balanced growth investments against expense control • Returned $330 million to shareholders • $263 million in share buybacks • Weighted average shares down 9% • Book value per diluted share, ex. AOCI1, up 8% • Operating ROE1, as adjusted, of 12.9% 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 6 Quarter in Review Continued favorable health margins; accelerated investments in growth Strong Operational Performance • Operating income per share1 up 17%; up 21% ex. significant items • Insurance product margin up 15% due to care deferral; up 4% ex. significant items • Sequential improvement in several key metrics; certain COVID- related headwinds • Significant investment in growth initiatives • Alternative investment income up sharply • Issued $150 million of subordinated debt • Statutory capital and surplus of $1.8 billion; RBC of 411% • Returned $117 million to shareholders • $100 million in share buybacks 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. Building on Track Record of Execution

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 7 4Q TY 1Q 2Q 3Q 4Q TY Q/Q TY New Annualized Premium 1 Life $34.9 $151.3 $41.1 $47.4 $44.3 $37.1 $169.9 6.3% 12.3% Health 62.7 195.3 44.0 22.0 39.4 49.1 154.5 -21.7% -20.9% Total Life and Health $97.6 $346.6 $85.1 $69.4 $83.7 $86.2 $324.4 -11.7% -6.4% Collected Premiums Life $206.3 $811.2 $207.7 $206.1 $213.3 $212.5 $839.6 3.0% 3.5% Health 442.2 1,708.2 419.1 419.2 431.7 421.6 1,691.6 -4.7% -1.0% Total Life and Health $648.5 $2,519.4 $626.8 $625.3 $645.0 $634.1 $2,531.2 -2.2% 0.5% Annuity Collected Premiums $324.3 $1,306.4 $292.2 $242.7 $285.1 $345.0 $1,165.0 6.4% -10.8% Client Assets in BD and Advisory2 $1,515.0 $1,515.0 $1,358.7 $1,524.0 $1,593.5 $1,793.8 $1,793.8 18.4% 18.4% Fee Revenue3 $30.2 $87.5 $28.5 $20.5 $19.6 $35.9 $104.5 18.9% 19.4% % Change2019 2020 Growth Scorecard Strong fee revenue and client assets; mixed sales performance; solid persistency E xp a n d 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 and managed advisory accounts. 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. (dollars in millions)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 8 Consumer Division Update Continued strong Life sales; expanding synergies between direct-to-consumer/field Fourth Quarter HighlightsKey Initiatives Maintain growth momentum Optimize distribution Expand reach • Life sales up 17%; exclusive field agent Life sales up 26% • D2C sales up 10% • Annuity collected premiums return to growth • Total third-party health policies up 5%; myHealthPolicy.com represented 14% of total third-party health sales • Producing agent count down 3%; overall exclusive agent force up 3% for FY • Financial Representative1 count up 1% • Web/digital sales up 54% • Steady growth in Broker/Dealer client assets • Multiple health products now supported by digital/tele/field 1 Financial representatives are exclusive agents who are licensed to sell certain securities brokerage products and services.

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 9 Worksite Division Update Stable in force block; sequential improvement in sales; new group product launched Fourth Quarter Highlights Restore growth Evolve digital capabilities Enhance portfolio • Employer base growing • 61% sequential improvement in sales • Stable premium collection • Continued digital re-tooling; 20% of sales completed virtually • Strong WBD results; cross-sales drove 5% of overall NAP • Group critical illness product expanded to 27 states • Launched monthly income protection group term life product • DirectPath acquisition Key Initiatives

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 10 Excess Capital Allocation Strategy Disciplined and opportunistic approach to maximize shareholder value Organic investments to sustain and grow the core businesses • myHealthPolicy.com start up expenses • Agent pilots, technology-driven customer experience investments Return capital to shareholders • $100 million in share repurchases in 4Q20; $263 million FY20 • Continued capacity to repurchase shares as conditions permit Opportunistic transactions • Highly selective M&A to expand productivity offerings or enhance distribution • WBD, DirectPath

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 11 CNO Ventures Minority stakes with strong growth potential, strategic proximity to CNO Representative Portfolio Companies • Strong standalone merits • Clear vision, strong management • Access to capital, realistic valuation • Leveraging balance sheet to engage, partner, and evolve • $21 million invested in 5 companies • Focus on businesses with strategic relevance • Customer access, wellness, technology solutions • Opportunities for collaboration, leverage expertise • White label, lead share, cross-sell • Capability acceleration / speed to market • Later round investments • Series B/C rounds; convertible debt, preferred or common equity minority investments • Multiple potential exit strategies

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 12 $0.52 $0.61 $1.85 $2.53 4Q19 4Q20 FY19 FY20 $(0.04) $0.57 $(0.05) $1.80 Financial Highlights Operating EPS up 17%; favorable net COVID impact, strong NII partially offset by growth investments Earnings ResultsFourth Quarter 2020 Net Operating Income1 $78.6 $86.0 $290.0 $362.3 Net Operating Income1 Excluding Significant Items $70.7 $79.6 $282.1 $338.2 Net Income $278.0 $111.8 $409.4 $301.8 Weighted Average Shares Outstanding (in millions) 151.4 140.4 157.1 143.2 (dollars in millions, except where noted) Net operating earnings per share1 Significant items • Operating EPS1 of $0.61, up 17% from $0.52 in 4Q19 • Up 21% ex. significant items in both periods • $18 million / $0.10 net COVID impact • Weighted average share count down 7% YoY • Increased spending on growth investments • Allocated expenses up $22 million, or 16% • Non-allocated expenses down $3 million, or 18%, ex. significant items • Fee income down due to D2C start up costs • Operating ROE1, as adjusted, of 12.9%; 12.0% ex. significant items • Consolidated RBC of 411%; Holdco liquidity of $388 million • Statutory operating income estimated to be $63 million • Statutory capital and surplus of $1.8 billion 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. $(0.17) $2.36 $(0.05) $0.47

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 13 $60.8 $59.5 $72.3 $45.3 $52.0 $56.4 $44.3 $41.7 $47.3 $41.6 $93.0 $86.9 $95.5 $152.2 $125.2 Insurance Product Margin (dollars in millions) Favorable net COVID impact Insurance Product Margin Excluding Significant Items1 4Q19 1Q20 2Q20 3Q20 4Q20 Annuity Health Life Total Margin $210.2 $190.7 $209.5 $244.8 $218.8 2.55% 2.47% 2.99% 1.86% 2.11% Margin / average net insurance liabilities Margin / insurance policy income 22% 20% 22% 36% 30% ISL: Margin / average net insurance liabilities 0.68% 0.67% 0.44% 0.30% 0.17% ISL: Underwriting margin / insurance policy income 51% 42% 42% 43% 36% Trad: Margin / insurance policy income 23% 17% 16% 18% 17% Trad: Margin ex. Adv. Exp. / insurance policy income 32% 30% 26% 27% 26% Highlights1 • Total margin up ~$9 million, or 4%, ex. significant items • $18 million favorable COVID impact • Annuity margin down $9 million, or 14% • Lower yields more than offset growth in block • Unfavorable COVID impact of $2 million • Health margin up $32 million, or 35% • Favorable overall COVID impact of $35 million from deferral of care • Medicare Supplement: $9 million • Supplemental health: $9 million • Long-term care: $17 million • Life margin down $15 million, or 26% • Unfavorable COVID mortality impact of $15 million 1 Excludes $16.1 million favorable annuity unlocking/$4.3 million unfavorable life unlocking in 4Q20; $51.5 million favorable annuity unlocking/$5.6 million unfavorable life unlocking in 2Q20; $0.3 unfavorable annuity unlocking/$9.7 million unfavorable life unlocking in 4Q19. See the Appendix for a reconciliation to the corresponding GAAP measure.

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 14 $- $100.0 $200.0 $300.0 $400.0 4Q 2019 4Q 2020 Total Net Investment Income1 Annuity Health Life Not Allocated $- $100.0 $200.0 $300.0 $400.0 4Q 2019 4Q 2020 Investment Income Allocated to Product Lines Annuity Health Life $- $100.0 $200.0 $300.0 $400.0 4Q 2019 4Q 2020 Investment Income Not Allocated to Product Lines Investment Results • Invested assets up 4% • New money rate of 3.58%; lower Q/Q largely due to tighter credit spreads • $888 million new money investments had average rating of BBB+, average duration of 12 years (dollars in millions) 1 Reflects sum of allocated and non-allocated investment income. Refer to pages 15-18 of the financial supplement for more information on the components of net investment income. -0.2% Increase in total NII attributable to alternatives outperformance $222.2 $221.8 $279.6 $248.4 $57.8 $26.2 • Investment Income Allocated to Product Lines essentially flat due to lower interest rates • Average yield on allocated investments was 4.83% compared to 5.02% in 4Q19 • Investment Income Not Allocated to Product Lines up $32 million YoY due to favorable alternatives results • Alts are predominantly reported on one quarter lag

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 15 IG Corporates, 50.6% Non-Agency RMBS, 8.0% Mortgage Loans, 5.2% HY Corporates, 3.1% CMBS, 7.7% Municipals, 9.7% ABS, 3.9% Govts/Agency, 1.4% CLO, 1.7% Equities, 0.6% Other Invested Assets, 2.1% Alternatives, 2.1% Policy Loans, 0.4% Cash, 3.6% Portfolio Composition High quality; well-positioned for uncertain environment $27 billion of Invested Assets Highlights (Fair Value as of 12/31/2020) General Approach • Positioned for stable performance across credit cycles • Emphasizing quality • Lower than average allocation to most higher risk categories • Low impairments through multiple cycles • 9% increase in invested assets • 65% of portfolio in corporate and government bonds • 42% BBBs; up slightly from September 30 • $23.0 billion of assets with high degree of liquidity • ~$14.2 billion public corporate bonds • ~$5.8 billion structured securities • ~$3.0 billion municipal, political subdivisions, and US and foreign government bonds • Strong credit risk profile across portfolio • 95% rated NAIC 1 / 2 • Diversified commercial and residential mortgages with low LTVs • Significant credit enhancement in structured products • Alternative investments emphasizing current cash flows and comparatively predictable results

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 16 Cash Flow Profile Strong free cash flow generation and conversion (dollars in millions) 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. 2 Cash flows exclude capital contributions to insurance subsidiaries, acquisitions, dividend payments, stock repurchases, and financing transactions.

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 17 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 $146 million  Targeted consolidated RBC ratio of 375-400%  Excess due to intentional conservative positioning  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 Conservative approach to capital structure; strong liquidity (dollars in millions) 408% 411% 2019 2020 23.0% 25.6% 2019 2020 $186.7 $388.1 2019 2020

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 18 2021 Outlook Base Case1: Sales • Continued positive momentum Earnings • Headwinds • COVID-related • Diminished favorable impact from deferral of healthcare • Net mortality/morbidity impact modestly favorable in 1H21; unfavorable in 2H21; neutral FY21 • Negative impact on insurance product margin from lower 2020 sales • Investment income • Not allocated to products: potential for lower contribution from alts, if returns revert to the mean; and lower contribution from opportunistic trading in the absence of extreme volatility • Allocated to products: flat due to reduction in yield offset by growth in assets • Partial offset - slight decline in expenses in 2H21 Free Cash Flow / Excess Capital • Full utilization of Life NOL’s in 2020 will pressure free cash flow conversion rate • Expected share repurchase capacity to exceed 2020 actual Adverse Case2: • Expect to maintain target RBC / holding company liquidity / leverage / dividends • Modest share repurchase capacity 1 Assumes approximately 360k COVID deaths in 2021 with pandemic trailing off through 2021; modest economic growth; investment portfolio assumptions market consistent and in-line with base case assumptions from rating agencies 2 Assumes approximately 500k COVID deaths in 2021; vaccine insufficient to achieve herd immunity; recessionary economic conditions; investment portfolio assumptions in-line with downside assumptions from rating agencies and generally consistent with past financial crises

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 19 Delivering On Our Commitments Turnaround / De-risking Pivot to Growth Optimize Long-term Value Pre 2017 2017 - 2019 2020 - 2021 Post COVID • 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 • Balancing capital return with investments in growth • Conservative capital structure • Defensive portfolio positioning • Benefiting from diverse product portfolio and strong retention • Successfully pivoting to new sales approaches • Accelerating integration of D2C and exclusive agents • Expanding D2C offerings • Reimagining workplace of the future • Optimize customer-centric business realignment • Expand omnichannel delivery model • Grow Worksite business • Enhance growth, margin and ROE profile • Maximize distributable cash flow • Accelerate pace of capital deployment • Leverage technology COVID-19 Pivoting to post COVID strategic priorities

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 20 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 2020 Earnings | February 9, 2021 21 Questions and Answers

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 22 Appendix 1: Quarter in Review Strong Operational Performance • Broker-Dealer/Registered Investment Advisor Slide 23 • Exclusive Agent Counts Slide 24 Building on Strong Track Record of Execution • Retained LTC Insurance Slide 25 • New Money Summary Slide 26 • Portfolio Overview Slides 27-30 • Tax Asset Summary Slide 31

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 23 Broker-Dealer/Registered Investment Advisor 1 Client assets include cash and securities in brokerage and managed advisory accounts. Net new client assets includes total inflows of cash and securities into brokerage and managed advisory accounts less outflows. Inflows include interest and dividends and exclude changes due to market fluctuations. 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 YoY; $1.8 billion in client assets 2019 4Q 1Q 2Q 3Q 4Q Net New Client Assets in Brokerage 17.4$ 15.3$ (26.7)$ (31.5)$ 3.0$ Brokerage and Advisory 1 Advisory 45.4 65.7 38.6 23.5 43.9 Total 62.8$ 81.0$ 11.9$ (8.0)$ 46.9$ Client Assets in Brokerage and Brokerage 982.9$ 842.3$ 905.3$ 918.4$ 1,011.1$ Advisory 1 at end of period Advisory 532.1 516.4 618.7 675.1 782.7 Total 1,515.0$ 1,358.7$ 1,524.0$ 1,593.5$ 1,793.8$ 2020

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 24 2019 % Change Consumer 4Q 1Q 2Q 3Q 4Q Q/Q Producing Field Agents 1,3 4,709 4,531 4,066 4,448 4,539 -4% Producing Tele-Sales Agents 1,3 211 238 237 239 257 22% Total Producing Agents 1,3 4,920 4,769 4,303 4,687 4,796 -3% Financial Representatives 2,3 596 591 585 588 601 1% Worksite Producing Field Agents 1,3 453 421 225 242 255 -44% 2020 Exclusive Agent Counts 1 Producing agents are exclusive agents that have submitted at least one policy in the month. 2 Financial representatives are exclusive agents who are licensed to sell certain securities brokerage products and services. 3 Agent and representative counts represent the average of the last 3 months.

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 25  New sales (~$25 million annually) focused on short duration products – 98.5% of new sales for policies with 2 years or less in benefits – Average benefit period of 11 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 with no mean reversion  Favorable economic profile – 2020 Loss Recognition Testing margin increased to $302 million or ~12% of Net GAAP Liabilities driven by margin from new business and favorable pre-COVID morbidity trends – Statutory reserves ~$176 million higher than GAAP net liabilities – Total LTC is just 13% of overall CNO reserves – Potential adverse impact from severe stress scenarios is significantly reduced Retained Long-Term Care Insurance Highly differentiated in-force block; prudently managed

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 26 New Money Summary Traditional, high quality fixed income investments during fourth quarter 94% Investment Grade Allocation Fourth Quarter Investments Allocation $ Allocation% Yield Average Rating Average Duration IG Corporates 452 50.9% 3.55% BBB+ 13.3 Municipals 210 23.7% 3.42% AA- 16.1 Structured Securities 154 17.3% 3.44% BBB 8.2 HY Corporates 53 5.9% 4.88% BB 3.5 CML 20 2.2% 3.64% AA 9.0 Total 888 100% 3.58% BBB+ 12.4 IG Corporates, 51% Municipals, 24% Structured Securities, 17% HY Corporates, 6% CML, 2% (As of 12/31/2020, dollars in millions)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 27 Positioning allows flexibility for opportunistic approach to changing conditions Portfolio Overview – Sector Breakdown Sector Book Value Market Value Unrealized Gain Loss Portfolio% Average NAIC Over|Underweight Airlines 42.3 45.8 3.5 0.17% 1.5 Underweight Aircraft Lease Securitizations 32.4 31.1 (1.3) 0.11% 1.3 Underweight Energy 702.1 832.7 130.6 3.04% 1.9 Underweight Gaming 0.0 - - - - Underweight Hotels 36.1 38.9 2.8 0.14% 3.0 Underweight Retail ex Grocery 86.7 109.9 23.1 0.40% 1.9 Underweight Restaurants 19.1 24.0 4.9 0.09% 2.8 Underweight Whole Business Securitizations 394.1 405.5 11.5 1.48% 2.1 Overweight CMBS 1,986.7 2,103.6 117.0 7.68% 1.2 Overweight (As of 12/31/2020; dollars in millions)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 28 Portfolio Overview: CLO Debt Key Portfolio Metrics Cumulative loss scenarios versus Break Points 100% AAA-A Significant cushion against stress scenarios Ratings Composition AAA 11.8% AA+ 2.2% AA 52.3% A 31.5% A- 2.2% AAA AA A Credit Support Portfolio 38% 25% 17% Market 37% 24% 18% WARF Portfolio 3,099 3,092 3,127 Market 3,137 3,142 3,173 Diversity Score Portfolio 80.84 79.52 81.67 Market 78.77 77.76 76.80 WAPx Portfolio 96.83 96.18 97.86 Market 98.08 97.98 97.75 12.6% 13.0% 11.7% 13.2% 14.2% 14.7%15.0% 14.1% 13.2% 34.8% 28.6% 23.1% AAA AA A Base Case NAIC Stress GFC Break Point Portfolio Portfolio Index AAA 11.8% - - AA 54.5% - - A 33.7% - 0.5% BBB - - 10.5% BB - - 50.0% % Downgraded from Original Ratings (As of 12/31/2020)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 29 Apartment 31.1% Industrial 19.3% Offi ce Building 17.8% Other commercial 12.0% Reta il 19.9% Portfolio Overview: Commercial Mortgage Loans Key Portfolio Facts Portfolio Geography Underlying Property Type Ratings Composition $1.3 billion of net invested assets 100% First Mortgage 100% Rated CM1-2 49% Weighted Avg LTV¹ Very conservatively underwritten; loss resistant, no COVID related delinquencies or forbearances 2.06x Weighted DSCR¹ 1 LTV and DSCR as of year 2019 operating statements CM1 77.3% CM2 22.7% East 24.7% South 35.8% Centra l 13.9% Mountain 7.9% Pacific 17.7% (As of 12/31/2020)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 30 Hotels 9.6% Retail 13.5% Offi ce 31.1% Multi family 24.5% Industrial 9.8% Mixed Us e 11.4% Portfolio Overview: CMBS Key Portfolio Facts Underlying Property Type SASB versus Conduit $2.0 billion of net invested assets 82.0% Rated AAA-A 59% Weighted Avg LTV¹ Excess credit support to offset collateral losses beyond market consistent expectations 2.12x Weighted DSCR¹ 1 LTV based on appraisal at loan origination, DSCR as of year 2019 operating statements Zero forbearance or delinquencies in SASB portfolio Rating Book Value Market Value Market/ Book Credit Support Delinq. Rate Hotel% Retail% AAA 555 591 107% 37.1% 6.8% 12.6% 20.4% AA 305 326 107% 28.8% 5.5% 8.9% 19.1% A 724 759 105% 24.2% 3.4% 11.4% 10.4% BBB 274 296 108% 18.2% 0.1% 1.2% 3.3% BB 84 85 102% 8.3% 0.9% 0.7% 3.1% 1,943 2,058 106% 27.0% 4.1% 9.5% 13.3% DSCR 2.54 LTV 58% Hotel % 7.5% Retail % 2.9% SASB Conduit 49.9% Agency MF 15.9% SASB 34.2% (As of 12/31/2020; dollars in millions)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 31 Non-life NOLs $339 DTAs related to tax strategy $106 Value of NOLs and deferred tax assets (DTAs) related to tax strategy Details • Total estimated economic value of NOLs and DTAs related to tax strategy of approximately $380 million @ 10% discount rate ($2.76 on 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 the remaining life taxable income not offset by life NOLs through 2023. $445 (As of 12/31/2020; dollars in millions) Tax Asset Summary

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 32 Appendix 2: Financial Exhibits • Non-GAAP Financial Measures Slides 33-48

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 33 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 37 and 39 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 2020 Earnings | February 9, 2021 34 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 2020 Earnings | February 9, 2021 35 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 37 and 39 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 2020 Earnings | February 9, 2021 36 The table below summarizes the financial impact of significant items on our 4Q19 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 4Q19 Significant Items (dollars in millions, except per-share amounts) (1) Adjustments arising from our comprehensive annual actuarial review of assumptions. (2) $20.0 million of the net favorable impact from legal and regulatory matters. (3) A non-GAAP measure. See pages 37 and 39 for a reconciliation to the corresponding GAAP measure. Insurance product margin Annuity 60.5$ 0.3$ (1) 60.8$ Health 93.0 - 93.0 Life 46.7 9.7 (1) 56.4 Total insurance product margin 200.2 10.0 210.2 Allocated expenses (140.6) - (140.6) Income from insurance products 59.6 10.0 69.6 Fee income 11.7 - 11.7 Investment income not allocated to product lines 26.2 - 26.2 Expenses not allocated to product lines 2.8 (20.0) (2) (17.2) Operating earnings before taxes 100.3 (10.0) 90.3 Income tax expense on operating income (21.7) 2.1 (19.6) Net operating income (3) 78.6$ (7.9)$ 70.7$ Net operating income per diluted share (3) 0.52$ (0.05)$ 0.47$ Three months ended December 31, 2019 Actual results Significant items Excluding significant items

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 37 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. 4Q19 1Q20 2Q20 3Q20 4Q20 Insurance product margin Annuity 60.5$ 59.5$ 123.8$ 45.3$ 68.1$ Health 93.0 86.9 95.5 152.2 125.2 Life 46.7 44.3 36.1 47.3 37.3 Total insurance product margin 200.2 190.7 255.4 244.8 230.6 Allocated expenses (140.6) (136.6) (128.1) (130.3) (162.7) Income from insurance products 59.6 54.1 127.3 114.5 67.9 Fee income 11.7 7.8 5.2 0.8 2.9 Investment income not allocated to product lines 26.2 57.4 8.2 43.7 57.8 Expenses not allocated to product lines 2.8 (13.8) (38.5) (13.7) (17.8) Operating earnings before taxes 100.3 105.5 102.2 145.3 110.8 Income tax expense on operating income (21.7) (21.2) (22.8) (32.7) (24.8) Net operating income* 78.6 84.3 79.4 112.6 86.0 Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization) 7.1 (63.7) 12.3 7.7 12.6 Net change in market value of investments recognized in earnings (2.6) (48.4) 31.2 8.5 6.0 Fair value changes in embedded derivative liabilities (net of related amortization) 13.4 (66.7) (27.1) (1.6) (3.1) Fair value changes related to agent deferred compensation plan 2.5 - (13.2) - 16.3 Other (13.3) 2.3 - 6.5 0.9 Non-operating income (loss) before taxes 7.1 (176.5) 3.2 21.1 32.7 Income tax expense (benefit): On non-operating income (loss) 1.4 (37.0) 0.6 4.5 6.9 Valuation allowance for deferred tax assets and other tax items (193.7) (34.0) - - - Net non-operating income (loss) 199.4 (105.5) 2.6 16.6 25.8 Net income (loss) 278.0$ (21.2)$ 82.0$ 129.2$ 111.8$

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 38 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 2020 Earnings | February 9, 2021 39 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) 4Q19 1Q20 2Q20 3Q20 4Q20 Net income (loss) applicable to common stock 278.0$ (21.2)$ 82.0$ 129.2$ 111.8$ Non-operating items: Net realized investment (gains) losses from sales and impairments, net of related amortization (7.1) 63.7 (12.3) (7.7) (12.6) Net change in market value of investments recognized in earnings 2.6 48.4 (31.2) (8.5) (6.0) Fair value changes in embedded derivative liabilities, net of related amortization (13.4) 66.7 27.1 1.6 (16.3) Fair value changes related to the agent deferred compensation plan (2.5) - 13.2 - 3.1 Other 13.3 (2.3) - (6.5) (0.9) Non-operating (income) loss before taxes (7.1) 176.5 (3.2) (21.1) (32.7) Income tax (expense) benefit On non-operating (income) loss (1.4) 37.0 (0.6) (4.5) (6.9) Valuation allowance for deferred tax assets and other tax items 193.7 34.0 - - - Net non-operating (income) loss (199.4) 105.5 (2.6) (16.6) (25.8) Net operating income (a non-GAAP financial measure) 78.6$ 84.3$ 79.4$ 112.6$ 86.0$ Per diluted share: Net income (loss) 1.84$ (0.15)$ 0.57$ 0.91$ 0.80$ Net realized investment (gains) losses from sales and impairments (net of related amortization and taxes) (0.04) 0.35 (0.07) (0.04) (0.07) Net change in market value of investments recognized in earnings (net of taxes) 0.01 0.26 (0.17) (0.05) (0.04) Fair value changes in embedded derivative liabilities (net of related amortization and taxes) (0.07) 0.36 0.15 0.01 (0.09) Fair value changes related to the agent deferred compensation plan (net of taxes) (0.01) - 0.07 - 0.02 Valuation allowance for deferred tax assets and other tax items (1.28) (0.23) - - - Other 0.07 (0.01) - (0.04) (0.01) Net operating income (a non-GAAP financial measure) 0.52$ 0.58$ 0.55$ 0.79$ 0.61$

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 40 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) (a) Equivalent common shares of 768 were not included in the diluted weighted average shares outstanding due to the net less recognized in 1Q20. 4Q19 1Q20 (a) 2Q20 3Q20 4Q20 Operating income 78.6$ 84.3$ 79.4$ 112.6$ 86.0$ Weighted average shares outstanding for basic earnings per share 150,138 145,829 143,422 140,900 138,232 Effect of dilutive securities on weighted average shares: Stock options, restricted stock and performance units 1,269 - 519 830 2,155 Weighted average shares outstanding for diluted earnings per share 151,407 145,829 143,941 141,730 140,387 Net operating income per diluted share 0.52$ 0.58$ 0.55$ 0.79$ 0.61$

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 41 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) 4Q19 1Q20 2Q20 3Q20 4Q20 Total shareholders' equity 4,677.0$ 3,765.8$ 4,731.2$ 5,083.9$ 5,484.2$ Shares outstanding for the period 148,084,178 143,610,046 141,718,570 138,931,352 135,279,119 Book value per share 31.58$ 26.22$ 33.38$ 36.59$ 40.54$ Total shareholders' equity 4,677.0$ 3,765.8$ 4,731.2$ 5,083.9$ 5,484.2$ Less accumulated other comprehensive income (1,372.5) (595.2) (1,520.2) (1,801.6) (2,186.1) Adjusted shareholders' equity excluding AOCI 3,304.5$ 3,170.6$ 3,211.0$ 3,282.3$ 3,298.1$ Shares outstanding for the period 148,084,178 143,610,046 141,718,570 138,931,352 135,279,119 Dilutive common stock equivalents related to: Stock options, restricted stock and performance units 1,496,546 326,110 691,574 1,040,861 2,438,176 Diluted shares outstanding 149,580,724 143,936,156 142,410,144 139,972,213 137,717,295 Book value per diluted share (a non-GAAP measure) 22.09$ 22.03$ 22.55$ 23.45$ 23.95$

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 42 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 2020 Earnings | February 9, 2021 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) 4Q19 1Q20 2Q20 3Q20 4Q20 Operating income 290.0$ 308.5$ 311.5$ 354.9$ 362.3$ Operating income, excluding significant items 282.1$ 300.6$ 285.9$ 329.3$ 338.2$ Net income 409.4$ 336.4$ 380.8$ 468.0$ 301.8$ Average common equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,703.9$ 2,713.0$ 2,722.9$ 2,760.6$ 2,812.4$ Avearge common shareholders' equity 4,166.8$ 4,321.1$ 4,372.0$ 4,498.2$ 4,665.4$ Operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 10.7% 11.4% 11.4% 12.9% 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) 10.4% 11.1% 10.5% 11.9% 12.0% Return on equity 9.8% 7.8% 8.7% 10.4% 6.5% Trailing Twelve Months Ended

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 44 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 (loss) - trailing four quarters 1Q19 65.8$ -$ 65.8$ 310.1$ 51.8$ (347.5)$ 2Q19 76.4 - 76.4 304.6 37.6 (412.1) 3Q19 69.2 - 69.2 286.3 42.0 159.7 4Q19 78.6 (7.9) 70.7 282.1 278.0 409.4 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 (a) The significant items have been discussed in prior press releases. (Continued on next page)

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 45 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) 4Q19 1Q20 2Q20 3Q20 4Q20 Pretax operating earnings (a non-GAAP financial measure) 368.3$ 390.4$ 395.9$ 453.3$ 463.8$ Income tax expense (78.3) (81.9) (84.4) (98.4) (101.5) Operating return 290.0 308.5 311.5 354.9 362.3 Non-operating items: Net realized investment gains (losses) from sales and impairments, net of related amortization 2.1 (60.9) (46.9) (36.6) (31.1) Net change in market value of investments recognized in earnings 25.5 (39.5) (15.1) (11.3) (2.7) Fair value changes in embedded derivative liabilities, net of related amortization (81.4) (118.5) (109.7) (82.0) (79.1) Fair value changes and amendment related to the agent deferred compensation plan (20.4) (15.1) (16.7) (10.7) (16.3) Loss on extinguishment of debt (7.3) (7.3) - - - Other (12.6) (11.5) (12.2) (4.5) 9.7 Non-operating loss before taxes (94.1) (252.8) (200.6) (145.1) (119.5) Income tax benefit: On non-operating loss (19.8) (53.0) (42.2) (30.5) (25.0) Valuation allowance for deferred tax assets and other tax items (193.7) (227.7) (227.7) (227.7) (34.0) Net non-operating income (loss) 119.4 27.9 69.3 113.1 (60.5) Net income 409.4$ 336.4$ 380.8$ 468.0$ 301.8$ Twelve Months Ended

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 46 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) 1Q17 2Q17 3Q17 4Q17 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 3,236.6$ 3,263.2$ 3,335.0$ 3,225.6$ Net operating loss carryforwards 640.6 621.6 613.1 409.8 Accumulated other comprehensive income 729.6 894.5 933.6 1,212.1 Common shareholders' equity 4,606.8$ 4,779.3$ 4,881.7$ 4,847.5$ 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$

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 47 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) 4Q19 1Q20 2Q20 3Q20 4Q20 Consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) 2,703.9$ 2,713.0$ 2,722.9$ 2,760.6$ 2,812.4$ Net operating loss carryforwards 470.1 473.4 469.1 460.0 428.9 Accumulated other comprehensive income 992.8 1,134.7 1,180.0 1,277.6 1,424.1 Common shareholders' equity 4,166.8$ 4,321.1$ 4,372.0$ 4,498.2$ 4,665.4$ Trailing Four Quarter Average

 
CNO Financial Group | Fourth Quarter 2020 Earnings | February 9, 2021 48 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) 4Q18 4Q19 1Q20 2Q20 3Q20 4Q20 Corporate notes payable 916.8$ 989.1$ 989.4$ 989.7$ 990.1$ 1,136.2$ Total shareholders' equity 3,370.9 4,677.0 3,765.8 4,731.2 5,083.9 5,484.2 Total capital 4,287.7$ 5,666.1$ 4,755.2$ 5,720.9$ 6,074.0$ 6,620.4$ Corporate debt to capital 21.4% 17.5% 20.8% 17.3% 16.3% 17.2% Corporate notes payable 916.8$ 989.1$ 989.4$ 989.7$ 990.1$ 1,136.2$ Total shareholders' equity 3,370.9 4,677.0 3,765.8 4,731.2 5,083.9 5,484.2 Less accumulated other comprehensive income (177.7) (1,372.5) (595.2) (1,520.2) (1,801.6) (2,186.1) Total capital 4,110.0$ 4,293.6$ 4,160.0$ 4,200.7$ 4,272.4$ 4,434.3$ Debt to total capital ratio, excluding AOCI (a non-GAAP financial measure) 22.3% 23.0% 23.8% 23.6% 23.2% 25.6%

 

Exhibit 99.4

cnologopr1.jpg                            News

For Immediate Release

CNO Financial Group Acquires DirectPath
Acquisition enhances Worksite Division growth outlook;
Adds key solutions for both employers and employees

CARMEL, Ind. – February 9, 2021 – CNO Financial Group (NYSE: CNO) announced today that it has acquired DirectPath, LLC (“DirectPath”), a leading national provider of year-round, technology-driven employee benefits management services to employers and employees. It provides personalized benefits education, advocacy and transparency, and communications compliance services that help employers reduce healthcare costs and assist employees with making informed benefits decisions.

DirectPath’s education services engage and enroll employees in worksite benefits plans through face-to-face, virtual and telephonic enrollment. The company’s advocacy and transparency services help employees select cost-effective medical providers and resolve claims issues, while enabling employers to reduce administrative and healthcare costs. Its communications compliance services manage governance and regulatory communications for corporate benefits plans.

“DirectPath brings to CNO best-in-class benefits management services and enhanced enrollment capabilities that are in high demand by employers and employees,” said Gary C. Bhojwani, chief executive officer. “With this acquisition, we are extending our worksite business to significantly broaden our solutions portfolio, technology capabilities and distribution reach for the post-COVID workplace environment.”

“CNO now delivers a unique combination of voluntary insurance products, benefits administration technology and benefits management services, firmly establishing CNO as a full-service provider of worksite solutions,” added Bhojwani. “We are very pleased to welcome DirectPath’s current customers and partners to CNO’s comprehensive offerings.”

“We are excited to join CNO and be part of a larger organization that shares our dedication to guiding employees to make better healthcare decisions,” said Michael Byers, chairman and chief executive officer of DirectPath. “Together with CNO, we will go to market with an integrated solution to help businesses drive improved employee acquisition and retention, increase benefits engagement, and deliver cost savings for employers and employees.”

Michael Byers will join the company's Executive Leadership Group as co-president of the Worksite Division with Mike Heard. Heard and Byers will each report directly to Bhojwani. Both appointments are effective immediately.

DirectPath operates direct nationwide and through approximately 7,000 benefits broker partners. Its organizational capacity effectively serves 400 employers and represents a covered employee base of more than 2.5 million people. DirectPath’s clients range in size from small- and medium-sized businesses to Fortune 100 companies.

The purchase price was approximately $50 million with an additional earn‐out if certain financial targets are achieved. CNO funded the transaction from holding company cash and expects the transaction to be accretive to operating earnings per share beginning in 2022.

RBC Capital Markets served as financial advisor to CNO Financial Group and Waller Helms Advisors served as financial advisor to DirectPath.



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 more than $35 billion in total assets. Our 3,400 associates, 5,000 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.

About DirectPath
DirectPath guides employees to make better health care decisions with individualized education for selecting the right benefit plan, expert assistance in making informed care choices and rewards for sensible financial decisions. Its customers experience significant ROI on their benefits investments through increased employee participation, management of the evolving regulatory environment and reduced cost through healthcare cost transparency. For more information, visit the DirectPath website and follow the company on Twitter.

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For further information:
CNO News Media Valerie Dolenga
[email protected]

CNO Investor Relations Jennifer Childe
[email protected]