3Q12 results reflect management's successful recapitalization which lowered CNO's cost of capital while maintaining strong capital ratios. Significant progress was also made on resolving the OCB litigation.
CNO's businesses continued to perform well with core earnings building. Investments were made to strengthen distribution and product offerings.
Capital and liquidity remained strong after deploying $455 million to reduce diluted shares by 15% YTD. Metrics like RBC ratio and debt to capital excluding AOCI remained high.
- CNO Financial Group reported its financial and operating results for the second quarter of 2012, ended June 30, 2012.
- Key highlights included operating earnings increasing 22% year-over-year and sales growth of 6% over the second quarter of 2011.
- The company continued to generate and proactively deploy significant amounts of excess capital through share buybacks, initiating a common stock dividend, and improving key financial ratios.
CNO Financial Group reported solid financial and operating results for the fourth quarter of 2011. Their businesses continued to perform well with earnings growth throughout 2011. Sales in the quarter grew 6% over the same period in 2010. The company's financial strength and credit profile also continued to improve, with statutory capital and risk-based capital increasing over 2011. CNO Financial will continue focusing on profitable organic growth by investing in agent recruiting, footprint expansion, and field management development.
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PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
This document summarizes CNO Financial Group's financial and operating results for the 4th quarter of 2012 ending December 31, 2012. It discusses growth in core earnings and sales across all business segments. CNO continued investing in distribution and new product offerings while maintaining strong capital levels and returning value to shareholders through stock repurchases and dividends. The outlook expects further sales growth through expansion of locations, agents, and products in 2013.
This document discusses Ecolab's financial performance in 2000. Key points include:
- Net sales reached nearly $2.3 billion, a 9% increase over 1999, due to business acquisitions, new products, and growth in core businesses.
- Operating income was a record $343 million. Excluding unusual items, operating income rose 12% to $324 million, or 14.3% of net sales.
- Net income was $206 million. Excluding unusual items, net income increased 13% to $198 million, or 8.7% of net sales, reflecting strong operating income growth and a lower tax rate.
- The company continued its trend of strong financial results and
This document provides an annual report for Constellation Energy. It summarizes that in 2004:
- Constellation Energy grew its earnings per share excluding special items by 17.4%, well above its 10% goal and the industry average.
- It achieved a 14.8% total return for shareholders through stock appreciation and dividends.
- It strengthened its balance sheet by reducing debt and expects to continue growing its dividend in line with earnings.
- It integrated recent acquisitions successfully to complement its competitive energy business and became the largest power provider to wholesale and commercial/industrial customers in North America.
First Quarter 2012 Investor PresentationCNOServices
CNO Financial Group reported financial and operating results for 1Q12. Earnings continued with operating EPS of $0.15, up from $0.11 in 1Q11. Financial strength improved with the RBC ratio increasing to 360% from 341% in 1Q11. Sales grew 12% over 1Q11 across all three core segments. The outlook remains positive with continued investment in growth across all business segments.
Celanese will hold a conference call on April 22, 2008 at 10:00 am ET to discuss its first quarter 2008 earnings. The call will feature Dave Weidman, Chairman and CEO, and Steven Sterin, Senior Vice President and CFO. The document provides forward-looking statements and non-GAAP financial measures to supplement GAAP reporting. It summarizes Celanese's financial highlights for Q1 2008, including revenue increases across most business segments and higher adjusted EPS compared to Q1 2007. Celanese affirms its 2008 guidance for adjusted EPS and operating EBITDA.
- CNO Financial Group reported its financial and operating results for the second quarter of 2012, ended June 30, 2012.
- Key highlights included operating earnings increasing 22% year-over-year and sales growth of 6% over the second quarter of 2011.
- The company continued to generate and proactively deploy significant amounts of excess capital through share buybacks, initiating a common stock dividend, and improving key financial ratios.
CNO Financial Group reported solid financial and operating results for the fourth quarter of 2011. Their businesses continued to perform well with earnings growth throughout 2011. Sales in the quarter grew 6% over the same period in 2010. The company's financial strength and credit profile also continued to improve, with statutory capital and risk-based capital increasing over 2011. CNO Financial will continue focusing on profitable organic growth by investing in agent recruiting, footprint expansion, and field management development.
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PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
This document summarizes CNO Financial Group's financial and operating results for the 4th quarter of 2012 ending December 31, 2012. It discusses growth in core earnings and sales across all business segments. CNO continued investing in distribution and new product offerings while maintaining strong capital levels and returning value to shareholders through stock repurchases and dividends. The outlook expects further sales growth through expansion of locations, agents, and products in 2013.
This document discusses Ecolab's financial performance in 2000. Key points include:
- Net sales reached nearly $2.3 billion, a 9% increase over 1999, due to business acquisitions, new products, and growth in core businesses.
- Operating income was a record $343 million. Excluding unusual items, operating income rose 12% to $324 million, or 14.3% of net sales.
- Net income was $206 million. Excluding unusual items, net income increased 13% to $198 million, or 8.7% of net sales, reflecting strong operating income growth and a lower tax rate.
- The company continued its trend of strong financial results and
This document provides an annual report for Constellation Energy. It summarizes that in 2004:
- Constellation Energy grew its earnings per share excluding special items by 17.4%, well above its 10% goal and the industry average.
- It achieved a 14.8% total return for shareholders through stock appreciation and dividends.
- It strengthened its balance sheet by reducing debt and expects to continue growing its dividend in line with earnings.
- It integrated recent acquisitions successfully to complement its competitive energy business and became the largest power provider to wholesale and commercial/industrial customers in North America.
First Quarter 2012 Investor PresentationCNOServices
CNO Financial Group reported financial and operating results for 1Q12. Earnings continued with operating EPS of $0.15, up from $0.11 in 1Q11. Financial strength improved with the RBC ratio increasing to 360% from 341% in 1Q11. Sales grew 12% over 1Q11 across all three core segments. The outlook remains positive with continued investment in growth across all business segments.
Celanese will hold a conference call on April 22, 2008 at 10:00 am ET to discuss its first quarter 2008 earnings. The call will feature Dave Weidman, Chairman and CEO, and Steven Sterin, Senior Vice President and CFO. The document provides forward-looking statements and non-GAAP financial measures to supplement GAAP reporting. It summarizes Celanese's financial highlights for Q1 2008, including revenue increases across most business segments and higher adjusted EPS compared to Q1 2007. Celanese affirms its 2008 guidance for adjusted EPS and operating EBITDA.
Standard Chartered PLC reported strong financial results for 2004, with profit before tax rising 39% to $2.158 billion. Both the Consumer Banking and Wholesale Banking businesses achieved over $1 billion in operating profit for the first time. The Chairman was pleased with the results and strategic progress, including several acquisitions that will enable the Group to expand. The Group Chief Executive reviewed the company's strategic focus and priorities for 2005, which include expanding consumer banking segments, continuing the transformation of wholesale banking, and integrating recent acquisitions.
This document provides details on Celanese Corporation's second quarter 2006 earnings conference call, including an agenda with the CEO and CFO as speakers. It also provides financial highlights for Q2 2006 such as an 11% increase in net sales and an 18% rise in operating EBITDA. Celanese issues guidance for full year 2006 of adjusted EPS between $2.50-$2.80.
Vodafone Group Plc announced its half-yearly results for the six months ended 30 September 2008. Revenue increased 17.1% to £19.9 billion driven by acquisitions, though organic revenue growth was only 0.9%. Adjusted operating profit grew 10.5% to £5.8 billion due to revenue growth and a lower effective tax rate, partially offset by higher customer investment costs. Free cash flow increased 15.9% to £3.1 billion. The company increased its full-year free cash flow guidance to £5.2-5.7 billion due to improved operational performance and foreign exchange benefits.
- The company reported financial and operational results for the first quarter of 2007, with pipeline and E&P results on target.
- Pipeline throughput was up 9% from the first quarter of 2006 due to new supply, expansions, power loads, and colder weather. Several pipeline expansion projects were completed or underway.
- E&P production was on target and a South Texas acquisition was completed for $254 million. Exploration continued in Brazil and the organization's capabilities were increased.
public serviceenterprise group 3Q 2008 slidesfinance20
PSEG reported solid third quarter 2008 earnings, maintaining guidance for the full year. Operating earnings were $476 million compared to $497 million in the prior year quarter. PSEG Power contributed $328 million in operating earnings, while PSE&G contributed $97 million. PSEG Energy Holdings contributed $56 million in operating earnings. PSEG is on track to meet its full year 2008 guidance and has provided guidance of $3.05 to $3.35 per share for 2009, but financial market stress may limit growth to the lower half of the range.
This document provides a statistical supplement for UnumProvident Corporation's second quarter 2005 financial results, adjusted to reflect new segment reporting implemented in the third quarter of 2005. It includes key financial highlights such as total premium income of $1.94 billion for the quarter. The supplement presents financial data and statistics for the quarter and year to date by business segment, including income statements, balance sheets, investment portfolios, and statutory capital. Notes are provided to give additional context to the financial information presented.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow and levels of serotonin and endorphins which elevate mood and may help prevent mental illness.
This document summarizes different Nigerian ethnic groups' reactions to Jesus turning water into wine at the wedding in Cana of Galilee. The Yoruba speaker expresses surprise and worry about Jesus' magic. The Hausa speaker asks if Jesus can turn water into their local beer. The Warri Boyz suggest turning water into gin. The Igbo man wants to start a business selling the wine Jesus made. They all express astonishment at Jesus' miracle.
Este documento proporciona información sobre una granja lechera ubicada en Pirhuas, Sipe Sipe. Detalla los procesos de limpieza, ordeñe, alimentación y cuidado de las vacas, así como la adquisición de alimentos balanceados. También enumera el equipamiento de la granja, incluyendo una ordeñadora, picadora de alfalfa y recipientes de aluminio.
Today's plan includes discussing a new course wiki, essays, and implications of design for rural users. There will be a discussion on challenges from two readings, an exercise on gender and design, a break, and a design activity. The reading assignment discusses the production aspect of technology, including poor working conditions in factories that produce popular electronic devices. The plan also includes a design exercise where students work in groups to redesign a product for different gendered users and purposes.
This document discusses Philips' strategy to focus on consumables by improving relationships with existing customers and finding new business partnerships. It proposes solutions like providing information, support, and incentives to retailers, distributors, and consumers. Examples are given of product lines like baby monitors, air fryers, and coolers that could be promoted to new customer groups. A flagship store concept is outlined to demonstrate products and provide experiences for customers. The goal is to maintain Philips' leadership position through strong customer relationships.
Saul was the first king of the Israelites who led them in battle against the Philistines. He united the tribes but was never fully able to command their respect due to his lower social status. David succeeded Saul and was beloved by the Israelites as he established Jerusalem as the capital. He defeated the Philistine giant Goliath as a young shepherd. Solomon took the throne after David and expanded the kingdom through wealth from trade allies, using the riches to build the Temple in Jerusalem.
High camera angles make objects seem smaller and less significant by swallowing them up in their wider setting. Low camera angles give a sense of confusion and powerlessness to viewers by limiting background details and psychologically dominating viewers with heightened objects that can inspire fear. Dutch angles are deliberately slanted camera angles that can portray unease, disorientation, and other dramatic effects.
Standard Chartered PLC reported strong financial results for 2004, with profit before tax rising 39% to $2.158 billion. Both the Consumer Banking and Wholesale Banking businesses achieved over $1 billion in operating profit for the first time. The Chairman was pleased with the results and strategic progress, including several acquisitions that will enable the Group to expand. The Group Chief Executive reviewed the company's strategic focus and priorities for 2005, which include expanding consumer banking segments, continuing the transformation of wholesale banking, and integrating recent acquisitions.
This document provides details on Celanese Corporation's second quarter 2006 earnings conference call, including an agenda with the CEO and CFO as speakers. It also provides financial highlights for Q2 2006 such as an 11% increase in net sales and an 18% rise in operating EBITDA. Celanese issues guidance for full year 2006 of adjusted EPS between $2.50-$2.80.
Vodafone Group Plc announced its half-yearly results for the six months ended 30 September 2008. Revenue increased 17.1% to £19.9 billion driven by acquisitions, though organic revenue growth was only 0.9%. Adjusted operating profit grew 10.5% to £5.8 billion due to revenue growth and a lower effective tax rate, partially offset by higher customer investment costs. Free cash flow increased 15.9% to £3.1 billion. The company increased its full-year free cash flow guidance to £5.2-5.7 billion due to improved operational performance and foreign exchange benefits.
- The company reported financial and operational results for the first quarter of 2007, with pipeline and E&P results on target.
- Pipeline throughput was up 9% from the first quarter of 2006 due to new supply, expansions, power loads, and colder weather. Several pipeline expansion projects were completed or underway.
- E&P production was on target and a South Texas acquisition was completed for $254 million. Exploration continued in Brazil and the organization's capabilities were increased.
public serviceenterprise group 3Q 2008 slidesfinance20
PSEG reported solid third quarter 2008 earnings, maintaining guidance for the full year. Operating earnings were $476 million compared to $497 million in the prior year quarter. PSEG Power contributed $328 million in operating earnings, while PSE&G contributed $97 million. PSEG Energy Holdings contributed $56 million in operating earnings. PSEG is on track to meet its full year 2008 guidance and has provided guidance of $3.05 to $3.35 per share for 2009, but financial market stress may limit growth to the lower half of the range.
This document provides a statistical supplement for UnumProvident Corporation's second quarter 2005 financial results, adjusted to reflect new segment reporting implemented in the third quarter of 2005. It includes key financial highlights such as total premium income of $1.94 billion for the quarter. The supplement presents financial data and statistics for the quarter and year to date by business segment, including income statements, balance sheets, investment portfolios, and statutory capital. Notes are provided to give additional context to the financial information presented.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise boosts blood flow and levels of serotonin and endorphins which elevate mood and may help prevent mental illness.
This document summarizes different Nigerian ethnic groups' reactions to Jesus turning water into wine at the wedding in Cana of Galilee. The Yoruba speaker expresses surprise and worry about Jesus' magic. The Hausa speaker asks if Jesus can turn water into their local beer. The Warri Boyz suggest turning water into gin. The Igbo man wants to start a business selling the wine Jesus made. They all express astonishment at Jesus' miracle.
Este documento proporciona información sobre una granja lechera ubicada en Pirhuas, Sipe Sipe. Detalla los procesos de limpieza, ordeñe, alimentación y cuidado de las vacas, así como la adquisición de alimentos balanceados. También enumera el equipamiento de la granja, incluyendo una ordeñadora, picadora de alfalfa y recipientes de aluminio.
Today's plan includes discussing a new course wiki, essays, and implications of design for rural users. There will be a discussion on challenges from two readings, an exercise on gender and design, a break, and a design activity. The reading assignment discusses the production aspect of technology, including poor working conditions in factories that produce popular electronic devices. The plan also includes a design exercise where students work in groups to redesign a product for different gendered users and purposes.
This document discusses Philips' strategy to focus on consumables by improving relationships with existing customers and finding new business partnerships. It proposes solutions like providing information, support, and incentives to retailers, distributors, and consumers. Examples are given of product lines like baby monitors, air fryers, and coolers that could be promoted to new customer groups. A flagship store concept is outlined to demonstrate products and provide experiences for customers. The goal is to maintain Philips' leadership position through strong customer relationships.
Saul was the first king of the Israelites who led them in battle against the Philistines. He united the tribes but was never fully able to command their respect due to his lower social status. David succeeded Saul and was beloved by the Israelites as he established Jerusalem as the capital. He defeated the Philistine giant Goliath as a young shepherd. Solomon took the throne after David and expanded the kingdom through wealth from trade allies, using the riches to build the Temple in Jerusalem.
High camera angles make objects seem smaller and less significant by swallowing them up in their wider setting. Low camera angles give a sense of confusion and powerlessness to viewers by limiting background details and psychologically dominating viewers with heightened objects that can inspire fear. Dutch angles are deliberately slanted camera angles that can portray unease, disorientation, and other dramatic effects.
The front page of a music magazine aims to grab readers' attention. It features a large background image of a featured artist and leads that preview the magazine's contents through quotes or article summaries. The contents page lists the magazine's sections and sometimes includes an editor's message. Double page spreads provide detailed interviews and photos that give readers an inside look at artists.
Microsoft Power Point Brett Campbellv2 [Compatibility Mode]brettpcampbell
Brett Campbell is a marketing professional seeking a leadership role. He has experience launching successful digital campaigns for brands like Moe's Southwest Grill. Campbell developed strategies that increased sales and drove customer engagement through mobile apps, social media check-ins, and relationship building. He possesses skills in areas like digital marketing, social media trends, and strategic planning. Campbell aims to work for an energetic brand that pushes boundaries and where he can continue learning about industry innovations.
After Athens was defeated in the Peloponnesian War, Sparta became the dominant power in Greece and ruled Athens directly. Though Sparta was generous in not destroying Athens completely, it ended Athenian democracy and reduced the city to a subordinate state. Over the following decade, Athens regained strength and independence, but it never recovered its former glory. The long war had depleted Greece's resources and weakened the city-states overall.
Hitler exploited long-standing resentments in Germany and weaknesses in the Weimar system through propaganda and the activities of the SA to gain popularity and support. During the economic turmoil of the late 1920s and early 1930s, more Germans supported Hitler and his Nazi party. In 1933, Hindenburg appointed Hitler as chancellor, believing he could control him, but this marked a significant step in Hitler's rise to power in Germany.
public serviceenterprise group library.corporate-irfinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For Q4 2008, PSEG reported operating earnings of $250 million compared to $272 million in Q4 2007. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's Q4 operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million compared to $77 million in Q4 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
This document provides a summary of PSEG's 4th quarter and full-year 2008 earnings conference call. It discusses PSEG meeting its 2008 earnings guidance despite challenges. Key points include PSEG focusing on operational excellence, laying a foundation for the future through carbon abatement and infrastructure programs, and strengthening its financial position by reducing debt and recognizing reserves for tax risks. The document also provides guidance for 2009 operating earnings of $3.00-$3.25 per share.
public serviceenterprise group Investor library.corporatefinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise grouplibrary.corporate-ifinance20
This document provides a summary of PSEG's 4th quarter and full-year 2008 earnings conference call. It discusses PSEG meeting its 2008 earnings guidance despite challenges. Key points include PSEG focusing on operational excellence, laying a foundation for the future through carbon abatement and infrastructure programs, and strengthening its financial position by reducing debt and recognizing reserves for tax risks. The document also provides guidance for 2009 operating earnings of $3.00-$3.25 per share.
public serviceenterprise group library.corporate-irfinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For Q4 2008, PSEG reported operating earnings of $250 million compared to $272 million in Q4 2007. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's Q4 operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million compared to $77 million in Q4 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise group library.corporatefinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For Q4 2008, PSEG reported operating earnings of $250 million compared to $272 million in Q4 2007. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's Q4 operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in Q4 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise group Investor library.corporatefinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise grouplibrary.corporate-ifinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise group library.corporate-irfinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's operating earnings were relatively flat quarter-over-quarter, while PSE&G's operating earnings declined slightly due to higher energy costs and lower margins, offset partially by O&M savings. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
public serviceenterprise group library.corporate-irfinance20
PSEG held an earnings conference call to discuss its fourth quarter and full-year 2008 results. For the fourth quarter, PSEG reported operating earnings of $250 million compared to $272 million in the prior year quarter. For the full year, operating earnings were $1,487 million compared to $1,385 million in 2007. PSEG Power's fourth quarter operating earnings were $207 million, matching the prior year, while PSE&G's were $76 million, down slightly from $77 million in 2007. PSEG provided 2009 operating earnings guidance of $3.00-$3.25 per share.
Celanese will hold a conference call on October 31, 2006 to discuss its third quarter 2006 earnings. The call will include presentations from Dave Weidman, President and CEO, and John J. Gallagher III, Executive Vice President and CFO. They will discuss Celanese's financial results for the third quarter, business segment highlights, capitalization, guidance for full year 2006, and reconciliation of certain non-GAAP financial measures used by management.
Masco reported its second quarter 2012 earnings. Sales increased 3% excluding currency effects, driven by new construction activity in North America. Plumbing Products sales grew 2% in North America excluding currency, but margins declined due to international sales mix and currency impacts. Decorative Architectural Products sales increased due to successful new product introductions. Installation Services and Cabinets showed profit improvements but face ongoing challenges. Masco remains focused on strategic initiatives to strengthen its businesses and balance sheet.
The document provides an earnings review for The Bank of New York Mellon Corporation for the first quarter of 2009. It summarizes key financial highlights including a 14% decline in operating revenue compared to the first quarter of 2008. Earnings were impacted by $295 million in securities write-downs. Expense reductions of 10% helped offset declining revenues. Capital ratios improved with the Tier 1 capital ratio reaching 13.8%. Assets under management declined 5% from the prior quarter to $881 billion due to market depreciation, while assets under custody/administration fell 3% to $19.5 trillion.
This document contains the presentation from CSX's 2007 transportation conference. It summarizes CSX's record financial results in 2006, including a 26% increase in operating income and 31% increase in EPS. It outlines CSX's targets for 2010, including 10-12% CAGR for operating income and 12-14% CAGR for EPS. The presentation also discusses factors supporting continued growth in rail transportation demand and CSX's investments to capitalize on trends in industries like intermodal, ethanol and fertilizer. In conclusion, it expresses confidence that the rail renaissance environment remains strong and that CSX is well-positioned for ongoing momentum and record results.
The document discusses CSX Corporation's record financial results in 2006, including a 26% increase in operating income and 31% increase in earnings per share, as well as targets for 10-12% annual growth in operating income and 12-14% growth in earnings per share through 2010. CSX also increased its annual dividend by 20% and initiated a $2 billion share repurchase program to return value to shareholders.
The document discusses CNO Financial Group's presentation at the 2013 Citi US Financial Services Conference. It notes that the presentation contains forward-looking statements and non-GAAP financial measures, and provides an overview of CNO Financial Group's fundamentals, strengths, growth strategies, and financial trends. Specifically, it highlights CNO's focus on the middle-income market, track record of execution, investments in productivity and growth, expanding business lines, and stable and growing segment earnings.
Textron's 2000 annual report outlines its new strategic framework aimed at delivering compelling growth through creating a portfolio of powerful brands and fostering enterprise excellence, with return on invested capital (ROIC) as the key performance metric. Some key points:
- The framework focuses on transitioning businesses into strong brands in attractive, growing industries and leveraging the potential of the Textron enterprise through initiatives like supply chain management, e-business strategies, and shared services.
- Financial goals include achieving a ROIC at least 400 basis points above the weighted average cost of capital, 5% annual organic revenue growth, segment profit margins over 13%, and 10% annual earnings per share growth.
- A Transformation Leadership Team was established to lead
- The company reported financial and operational results for the first quarter of 2007, with pipeline and E&P results on target.
- Pipeline throughput was up 9% from the first quarter of 2006 due to new supply, expansions, power loads, and colder weather. Several pipeline expansion projects were underway.
- E&P production was on target and a South Texas acquisition was completed for $254 million. Exploration continued in Brazil and the production program was on budget.
The document summarizes Celanese Corporation's 1Q 2006 earnings conference call and webcast scheduled for May 9, 2006. It includes an agenda with the CEO and CFO slated to speak. Financial highlights are provided for Celanese's 1Q 2006 results including net sales growth of 12% and diluted adjusted EPS growth of 16% year-over-year. Guidance for full year 2006 adjusted EPS is given in the range of $2.50 to $2.90 per share. Various non-GAAP financial measures are reconciled to the most comparable GAAP measures.
Similar to Third Quarter 2012 Investor Presentation (20)
This document provides details on CNO Financial Group's second quarter 2018 earnings results and a long-term care reinsurance transaction. Some key points:
- CNO entered an agreement to cede approximately $2.7 billion of long-term care reserves to Wilton Re, reducing risk. An $825 million ceding commission was paid.
- The transaction reduces CNO's exposure to risks under stress scenarios and improves various financial metrics like RBC ratios and debt-to-capital.
- For Q2 2018, CNO reported operating EPS growth of 9% and book value per share growth. Various business metrics like annuity account values and fee revenue increased.
- Going forward, CNO
This document provides an overview of CNO Financial Group's financial and operating results for the first quarter of 2018 compared to the first quarter of 2017. Some key highlights include:
- Net operating income per share increased 29% to $0.44. Excluding significant items, net operating EPS increased 6% to $0.43.
- Book value per share, excluding AOCI, increased 2% sequentially to $21.94.
- Health margins were in line with expectations, with the supplemental health benefit ratio at 54.4% and the long-term care benefit ratio at 72.6%.
- Total collected premiums decreased 1.3% while annuity account values increased 3.8%.
-
This document provides a summary of CNO Financial Group's financial and operating results for the fourth quarter of 2017. Some key points:
- Net operating income per share was $0.51 for Q4 2017, up from $0.49 in Q4 2016. Excluding significant items, net operating income was $0.47 per share, a 34% increase.
- Bankers Life collected premiums decreased 2% for Q4 2017 compared to a year ago, while annuity account values increased 5%.
- Washington National collected premiums increased 2% for Q4 2017, with supplemental health premiums up 4%.
- The company recognized a $172 million GAAP charge in Q4 2017 related
This document provides an overview of CNO Financial Group's financial and operating results for the third quarter of 2017 compared to the third quarter of 2016. Some key highlights include:
- Operating EPS increased 22% year-over-year. Book value per share increased 11%.
- Sales results were mixed with declines in some new business metrics but growth in annuity account values and fee revenue.
- Segment results were positive overall with higher margins in many insurance products.
- Investment income remained strong with higher than expected call/prepayment income.
- Capital levels remained high with estimated RBC of 450% and leverage of 21%.
This document summarizes CNO Financial Group's financial and operating results for the second quarter of 2017. Some key highlights include:
- Total collected premiums were up 7% compared to the prior year period. First-year collected premiums were up 16%.
- Net operating income per share increased 29% to $0.45 compared to the second quarter of 2016. Excluding significant items, net operating income per share was up 24% to $0.42.
- Segment results were positive across most insurance product lines, with favorable margins in long-term care, supplemental health, and Medicare supplement.
- Investment income increased due to higher call and prepayment income from bonds in the portfolio.
2017 investor day presentation final no_animationCNOServices
The document outlines the agenda for CNO Financial Group's 2017 Investor Day, which was held on June 5, 2017. The agenda included presentations on CNO's positioning in the middle-income market, managing its long-term care business, investments and finance, and a compelling case for investing in CNO. The document provides an overview of the speakers and timing for each presentation. It also includes forward-looking statements, information on non-GAAP measures, and introductions by the Director of Investor Relations and CEO.
- The document provides financial and operating results for CNO Financial Group for the first quarter of 2017 compared to the first quarter of 2016.
- Key metrics like total collected premiums and operating EPS increased year-over-year, demonstrating the strength of CNO's business model.
- Segment results were mixed, with Bankers Life and Colonial Penn showing favorable underwriting margins, while Washington National's supplemental health margins declined.
- Overall, CNO reported improved financial results for the first quarter compared to the same period last year.
CNO Financial Group reported financial and operating results for the fourth quarter of 2016 ending December 31, 2016. Key highlights included net income per diluted share of $1.34, net operating income per diluted share of $0.49, and net operating income excluding significant items of $0.35 per diluted share. Segment results were mixed, with Bankers Life and Washington National showing higher expenses partially offset by favorable health margins. The investment portfolio continued to perform well. Capital levels remained strong with book value per share up 10% from 2015.
- CNO Financial Group reported financial and operating results for 3Q16 with comparisons to 3Q15.
- Key highlights included continued franchise growth with collected premiums up 2% and policies in-force up 1%. Operating EPS excluding significant items was up 6% from $0.33 to $0.35.
- The company recaptured its closed block long-term care business, recording a $53 million after-tax charge as expected. Administrative functions have transitioned smoothly with no disruption to policyholders.
- CNO Financial Group reported second quarter 2016 operating earnings per share of $0.35, flat compared to the prior year quarter. Operating earnings excluding significant items were also $0.34, flat with 2Q15.
- Key metrics included continued growth in collected premiums and policies in force across most business lines. However, Washington National experienced lower sales and higher claims that impacted results.
- Segment results were largely in-line with expectations except for Washington National which struggled with persistency and an elevated benefit ratio in the quarter.
1. CNO Financial Group reported operating earnings per share of $0.27 for 1Q16, down from $0.30 in 1Q15, with unfavorable alternative investment returns impacting results.
2. Key metrics like new annualized premiums, collected premiums, and policies in force grew compared to prior year. The company also repurchased $90 million in stock and paid $89 million in dividends to the holding company during the quarter.
3. Health margins for Medicare supplement and supplemental health businesses were in line with expectations, while long-term care interest-adjusted benefit ratio declined from prior year due to policy lapses following rate increases.
- The document provides financial and operating results for CNO Financial Group for the quarter ended December 31, 2015. Key highlights included continued franchise growth, solid financial results including double digit operating EPS growth, and returning $67 million to shareholders through repurchases. CNO also completed its year-end assumption review which resulted in aggregate GAAP margins increasing to $3.8 billion.
- CNO Financial Group reported financial and operating results for Q3 2015 with comparisons to Q3 2014. Key highlights included continued growth in new annualized premiums and third party product sales, as well as increased collected premiums and annuity account values. Operating EPS excluding significant items increased 3% to $0.33 per share. Capital levels remained strong with a risk-based capital ratio of 440% and leverage ratio of 20.2%.
- CNO Financial Group reported financial and operating results for the second quarter of 2015 ending June 30, 2015.
- Key highlights included operating earnings per share excluding significant items increasing 6% compared to the prior year, strong capital measures including an estimated RBC ratio of 443% and holding company leverage of 19.7%, and returning $115 million to shareholders through share buybacks and dividends.
- Segment results were positive, with Bankers Life impacted by a long-term care future loss reserve offset by strength in other blocks, and Washington National impacted by supplemental health claims experience.
- CNO Financial Group reported financial and operating results for 1Q15, with comparisons made to 1Q14.
- Operating EPS excluding significant items increased 11% to $0.31 per share compared to $0.28 in 1Q14, driven by strength in annuity spreads at Bankers Life and lower average diluted shares outstanding.
- Sales growth was mixed across business segments, with Colonial Penn sales up 26% due to improved marketing effectiveness and sales productivity.
This document provides an overview of CNO Financial Group's corporate governance and business initiatives. It discusses CNO's focus on the middle-income market in the US, which represents 53% of the population. Half of near-retirees receive no professional retirement guidance and many lack confidence in their ability to address critical illnesses. CNO takes a proactive approach to understanding customers and succeeding in the middle market through strategic alignment of distribution, products/advice, and operations/administration. The document outlines CNO's track record of execution including management actions, stock price outperformance, capital returned to shareholders, and proactive shareholder engagement. It discusses CNO's governance including board structure, executive compensation aligned with shareholders, and
- The document provides financial and operating results for CNO Financial Group for the 4th quarter of 2014, including earnings highlights and sales results.
- Key highlights included continued growth in the franchise, strong capital ratios, and $376.5 million spent on share repurchases for the full year.
- Sales growth outlook for 2015 is estimated at 3-6% overall, with individual segment expectations ranging from 3-8% growth.
CNO Financial Group reported financial and operating results for the third quarter of 2014. Key highlights included growth in business and operating earnings per share despite weakness in sales at Bankers Life. Capital ratios remained strong and the company continued returning capital to shareholders through stock repurchases and dividends. However, supplemental health benefit ratios increased which impacted results at Washington National. Overall, the company demonstrated compelling per share growth and remains focused on execution.
This document provides an overview of CNO Financial Group's financial and operating results for the third quarter of 2014. It highlights growth in operating EPS compared to the prior year period. It notes sales results for Bankers Life, Washington National and Colonial Penn segments. Bankers Life sales were down slightly due to weakness in agent recruiting, while the other segments experienced sales growth. The document also summarizes capital levels, liquidity, earnings results and health margins for the quarter.
- CNO Financial Group reported financial and operating results for the second quarter of 2014, ending June 30, 2014.
- Key highlights included growth in business metrics like net collected premiums and annuity account values, continued strength in capital ratios, and ongoing return of capital to shareholders through stock repurchases.
- They also closed the sale of Conseco Life Insurance Company on July 1st, which led to an additional credit rating upgrade from S&P.
1. 3Q12
Financial and operating results for the period ended September 30, 2012
October 30, 2012
Unless otherwise specified, comparisons in this presentation are between 3Q12 and 3Q11.
2. Forward-Looking Statements
Certain statements made in this presentation should be considered
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. These include statements about future results of
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 October 29, 2012, our
Quarterly Reports on Form 10-Q, our 2011 Annual Report on Form 10-K
and other fili
d th filings we make with the Securities and E h
k ith th S iti d Exchange C Commission.
i i
We assume no obligation to update this presentation, which speaks as of
today’s date.
CNO Financial Group 2
3. Non-GAAP Measures
This presentation contains the following financial measures that differ from the
comparable measures under Generally Accepted Accounting Principles (GAAP):
operating earnings measures; book value, excluding accumulated other comprehensive
value
income (loss) per share; operating return measures; earnings before net realized
investment gains (losses) and corporate interest and taxes; and debt to capital ratios,
excluding accumulated other comprehensive income (loss). Reconciliations between
those non GAAP measures and the comparable GAAP measures are included in the
non-GAAP
Appendix, or on the page such measure is presented.
While management believes these 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
Filings” section of CNO s website, www CNOinc com
CNO’s website www.CNOinc.com.
CNO Financial Group 3
5. Summary CNO
3Q results reflect significant management actions
– Successfully completed recapitalization; lowering cost
y p p ; g
of capital while maintaining strong capital ratios
– Significant progress on OCB litigation
– Review of actuarial assumptions
Businesses continue to perform well with core earnings
building
Continue to invest in business strategy
CNO Financial Group 5
6. Core Operating Earnings Building CNO
Operating Earnings
Excluding Significant Items*
3Q12 Earnings and ROE Drivers
$0 26 **
$0.26
Accomplishments in the quarter
3Q11 reflected in reported earnings
$0.16
E l di significant it
Excluding i ifi t items, core
Operating
earnings strong
EPS
$.12 $.11
Recapitalization to drive future ROE
and EPS accretion
Weighted Avg. Diluted
Shares Outstanding
(000’s)
302,708 288,131**
Low interest rates present a
headwind
End f P i d Dil t d Sh
E d of Period Diluted Shares Outstanding
O t t di
Pre- and Post-Recapitalization (000’s)
2Q2012 290,212
3Q2012 250,820
,
* A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.
CNO Financial Group ** Operating earnings per share, excluding significant items is calculated based on the weighted average diluted shares outstanding, including 6
the dilutive effect of all common stock equivalents. Such common stock equivalents are dilutive in this calculation.
7. Recapitalization Summary CNO
Raised $950 million to pay off senior secured debt and
repurchase majority of the convertible debentures
New debt structure reflects strong performance and
improved credit ratings
Lower weighted average cost of capital
Improved financial flexibility and debt maturity profile
Significantly reduced convertible overhang
Meaningful stair step in go forward EPS and ROE
g p g
CNO Financial Group 7
8. Sustained Capital Strength CNO
Strong capital position post-recapitalization
Uninterrupted free cash flow generation
Capital deployment strategy and guidance remain
intact
Capital ratios remain strong after deploying $455mm, reducing
the diluted share count by 15% YTD
RBC Liquidity Debt to Capital
361% >$300 million 21.3%*
* Debt to capital ratio, excluding accumulated other comprehensive income (loss), a non-GAAP measure. Refer to the Appendix for a
CNO Financial Group reconciliation to the corresponding GAAP measure. 8
9. Investment in the Business CNO
($ millions)
)
Investing in productivity and growth of the
agent force Total
T t l YTD NAP
YTD 3Q12
YTD 3Q11
Expanding presence by adding new $271.8
$287.7 Up 6%
locations and geographies $256 1 *
$256.1
Up 13% *
$226.9 *
Developing and launching new products
to
t meet the needs of our target market
t th d f t t k t
Sales excluding Bankers Life annuities up
13% YTD with double digit growth in * YTD NAP excluding Bankers Life annuity sales.
Washington National and Colonial Penn
CNO Financial Group 9
10. 3Q12 Sales and Distribution Results Bankers Life
($ millions)
Quarterly NAP*
Agent force g
g grew 7% YTD driven by y 4Q11
increased agent retention 3Q11
$69.8
1Q12 2Q12 3Q12
Distribution and market focus allow for shift $60.8 $58.8 $59.5 $57.6
in product mix
$47 2 **
$47.2
$44.9 **
– Overall sales down 5%
– Annuity sales down 35% as a result of the low
interest rate environment and other product
adjustments
j
– Sales excluding annuities up 5%
• Life sales up 4%
• Med supp sales up 9% * MA/PDP sales are excluded from NAP in all periods.
** NAP excluding annuity sales
• Short term care sales up 8%
– Introduced new critical illness product in 1Q; available for sale in 38 states at end of 3Q
CNO Financial Group 10
11. 3Q12 Sales and
Distribution R
Di t ib ti Results
lt Washington National
($ millions)
Quarterly Core NAP*
y
Core* product sales up 9% 2Q12
4Q11 3Q12
– Primarily driven by voluntary worksite 3Q11 $20.7
$20 7
1Q12 $
$22.0 $21.2
$21 2
$19.5 $19.6
sales
Investment in life sales continues to
gain traction
New producing WN partners up 6%
PMA producing agents up 6%
CNO Financial Group *NAP for core products includes Life and Supplemental Health sales. 11
12. 3Q12 Sales and Colonial Penn
Distribution R
Dimillions) ti Results
($
t ib lt
Quarterly NAP
Sales growth continues; NAP up
19% 1Q12
$17.5 2Q12 3Q12
Year over year sales growth per 3Q11 4Q11
$15.6 $15.1
$15 1
increased lead volumes and higher $12.7 $12.3
sales productivity
I
Increased investments in advertising
di t t i d ti i
– Driving higher lead volumes
– Sales results in line with seasonal
patterns
CNO Financial Group 12
13. Outlook
Efforts continue to strengthen distribution and product
offerings to effectively serve our growing target market
Continued investment in branch expansion and management
development
Introduction of new critical illness product
Expect strong sales of life insurance to continue
Expect continued headwinds in annuity sales while interest
rates remain low
Expect increased focus and positive momentum in voluntary
worksite market to continue
PMA state expansion and improved recruiting performance
will drive increases in agent force and continued g
g growth
Spending on lead based programs to slow due to presidential
election
Continue to invest in telesales productivity
p y
New product launch in 4Q12
CNO Financial Group 13
14. Net Investment Income
($ millions)
CNO
General Account Investment Income
NNew money rate reflects consistent
t fl t i t t
risk profile, sequentially tighter credit
curve and lower risk free rates during 2Q12 3Q12
1Q12
4Q11 $351.1 $349.4
much of 3Q Q 3Q11 $344.2
$344 2
$345.2
$338.2
Year over year increase in investment
income primarily due to growth in
assets and relative stability in earned
yield
i ld
New M
N Money R t
Rate: 5.55%
5 55% 5.29%
5 29% 5.32%
5 32% 5.25%
5 25% 4.71%
4 71%
Earned Yield: 5.67% 5.70% 5.64% 5.76% 5.71%
Earned Yield (excluding floating rate FHLB): 5.81% 5.85% 5.82% 5.95% 5.90%
CNO Financial Group 14
15. Realized Gains, Losses and Impairments
($ millions)
CNO
$74.5
$43.9
$43 9
$2.9 $41.9 $41.6 $41.2
$33.3 $32.1
$41.0 $18.7 $23.1 *
$8.3
$10.4 $9.7
$3.5
$10.4 $7.9
$9.0
$2.5 $2.5 $6.2
3Q11 4Q11 1Q12 2Q12 3Q12
Gross Realized Gains Gross Realized Losses Impairments
* 3Q12 impairments primarily associated with two private company investments received through the commutation
CNO Financial Group 15
of an investment made by our Predecessor in a guaranteed investment contract.
16. Unrealized Gain/Loss* CNO
($ millions)
Unrealized Gain % of Invested Assets
$3,000 Unrealized Gain 14%
% of Invested Assets
12%
$2,500
10%
$2,000
8%
$1,500
6%
$1,000
4%
$500
2%
$0 0%
3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012
CNO Financial Group
*Includes debt and equity securities classified as available for sale. Excludes investments from variable interest 16
entities which we consolidate under GAAP.
17. Asset Allocation and Quality at 9/30/12*
9/30/12 CNO
($ millions)
Book Value by Allocation
y Investment Quality: Fixed Maturities
Govts/Agency
0.8% Cash &
ABS Other <BBB AAA
5.8%
5 8% 6.1% 10%
0% 10%
AA
Municipals 9%
7.3%
CMBS
5.8% IG Corporates
54.4%
54 4%
HY Corporates
BBB A
4.6%
48% 23%
Mortgage Loans
6.4%
CMOs
8.8%
Relatively stable 2011 - 2012 Stable at 90% IG
*Excludes investments from variable interest entities which we consolidate under GAAP (the related liabilities are non-recourse to CNO).
CNO Financial Group 17
18. Holding Company Investments at 9/30/12
($ millions)
g p y CNO
Investment Performance Investment Allocation
Performance
Summary
3Q12 YTD Cash & Money Market
Cash & Money Market 0.02% 0.09% / Fixed Income
$266.5
Fixed Income 3.44% 8.43%
Equities /
Equities 6.35% 16.43% Alternatives
$47.1
Alternatives 0.58% (6.67%)
Portfolio strategy is to preserve liquidity for corporate capital needs,
and secondly to maximize returns to better utilize non-life tax benefits
non life
CNO Financial Group 18
19. 3Q12 Investment Summary and Outlook CNO
Market Observations What we are doing…
Credit market yields compressed due to the Federal Balancing commitment to quality with earnings
Reserve’s intent to pin short rates for an extended objectives
period,
period slow U S economic growth and bearish global
U.S. growth,
Remain engaged with credit, but cautious on
views.
high beta names
Risky credit has outperformed as Fed policy has
Realize spreads could continue to grind tighter
diminished returns on risk-free assets and pushed
investors out on the risk curve Buyer of select non-agency RMBS, ABS, and
non agency RMBS ABS
high yield
Most structured credit markets face ongoing
supply/demand imbalance due to limited new issue No curve position (ALM match neutral)
volume and ongoing pay down proceeds
Seeking attractive opportunities to increase our
An environment of modest growth with household and allocation to A quality commercial mortgages
business deleveraging is not inhospitable to the credit
markets
Credit migration trends continue to be benign
Increasing depth of empirical evidence that the housing
market has bottomed and is recovering
Corporate credit quality has almost certainly peaked
and is increasingly affected by slow revenue g
gy y growth,
,
shareholder pressure for distributions
CNO Financial Group 19
20. 3Q12 Consolidated Financial Highlights CNO
Results Reflect Significant Management Actions
- Lower-for-longer rates prudently reflected in core assumptions
- OCB litigation reserves set the stage for less volatility
- Stable core earnings supports tax valuation allowance reduction
- Recapitalization lowers cost of capital and builds financial flexibility
Capital & Liquidity Uninterrupted
p q y p
- RBC ratio, leverage and holding company liquidity remain strong
- 2012 YTD cash flow to the holding company in excess of $300mm
- Capital deployment on pace after significant convertible repurchase
- Excess and deployable capital of $150mm at the holding company
CNO Financial Group 20
21. Segment EBIT - Excluding Significant Items*
($ millions)
CNO
$125.6
$3.3 CNO’s Earnings Engine
$10.4
$88.6
$88 6 42%
Bankers premium growth, favorable
$15.8 $33.9 Medicare supplement benefit ratios and
annuity persistency
$
$27.2
Washington National favorable
supplemental health benefit ratios
$80.6
$80 6 Colonial Penn new business investment;
;
$65.4 anticipate modest profits in 4Q
Corporate results reflect favorable
$(1.3)
( ) $(2.6) investment results
$(18.5)
Headwind – low interest rates
3Q11 3Q12
CP BLC WN OCB Corporate
CNO Financial Group * A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. 21
22. Impact Analysis: Low-For-Long Rates CNO
$28 million after-tax earnings Assumption: Charge reflects current new money rates and a
charge in 3Q 50 basis point reduction to the ultimate rate
R
Represents management’s best estimates and considers the f ll i
t t’ b t ti t d id th following:
- Fed’s desire to keep interest rates low
- Investment strategies designed to defend rates reaching a threshold
Impacted OCB interest sensitive life reserves. Bankers LTC reserves remain adequate but p
p q pressured
if rates remain low
Updated Stress test:
• Range-bound impact of holding current new money rates flat for 5 years then recovering
g p g y y g
• Net income impact assumes assets held constant isolating portfolio yield decline from 2012 levels
• Low rates represent an earnings headwind but not a near-term material impact to capital
Annual Net Income Impact Impact of Assumption Change
(Net Investment Income) (After- Tax)
2013 $10 - $15 million GAAP $20 - $50 million
2014 $25 - $30 million Statutory $20 - $50 million
CNO Financial Group 22
23. GAAP Balances for Deferred Tax Asset as of 9/30/12:
Loss Carryforwards – Gross1 vs Net2
vs. CNO
($ millions) Totals
Gross Loss Carryforwards $1,672
3
Gross Valuation Allowance (
(779)
)
$1,092
Net Loss Carryforwards $893
GAAP Valuation Allowances
Net
$143mm decrease in Non-life decrease driven by
allowance $618 improved earnings profile
Capital decrease driven by
sustained capital gains
Gross
$305 Does not impact our ability to
Gross
recognize economic benefits
Valuation $275
Valuation Allow ance $143mm of reduction recognized
$474 Net
N t in 3Q12. A
i 3Q12 Approximately $12mm
i t l $12
Allow ance
$305
$275 will be recognized in 4Q12
Capital Non- Life Life
Valuation Allow ance for Loss Carryforw ards Net Loss Carryforw ards in Deferred Tax Asset
1. Gross loss carryforward equals the total life, non-life, and capital loss carryforwards multiplied by a 35% tax rate plus state operating loss carryforwards
CNO Financial Group 2. Net loss carryforward equals the gross loss carryforward net of the allowance 23
3. Does not include amounts related to state carryforwards and other items of $16mm
24. Capital Position - Post Recapitalization CNO
($ millions)
RBC Ratio
2Q12 3Q12
369% 361%
Insurance Company Capitalization
– RBC held steady in 3Q and reflects:
• Statutory operating income of $60mm
• OCB litigation reserves
• Security impairments
• $95mm of statutory dividends in 3Q Leverage
3Q12
21.3%
2Q12
GAAP Leverage 16.6%
– Expect gradual drop in leverage via debt amortization
– Debt sweep based on leverage thresholds
Liquidity & Excess Capital
Liquidity
– $150mm of deployable capital at the holding company 3Q12
$313.6
– 2012 repurchase guided to the high end of stated range
2Q12
– Redeployment plan balances capital strength & ROE $197.7
CNO Financial Group 24
25. Capital Generation - $500 Million Run-Rate CNO
($ millions)
9-month statutory operating earnings of $243mm and statutory dividends of $198mm
Anticipate statutory dividends to the holding company of $250mm - $275mm in 2012
2010 2011 YTD 3Q12
$500.8
$154.1
$389.7
$346.7 $358.4
$95.5 $45.4 $313.0
$294.2
$209 0 **
$209.0 $209 0 **
$209.0
$166.0 $166.0 $198.0 $198.0
$128.2 $128.2 $137.7 $137.7
$115.0 $115.0
Statutory Earnings Inflows to Holding Co Statutory Earnings Inflows to Holding Co Statutory Earnings Inflows to Holding Co
Power Power Power
Fees and Interest to Holding Company Net Dividends to Holding Company * Net Gain from Operations Retained in Insurance Companies
CNO Financial Group * Dividends net of capital contributions 25
** Amount is net of $26mm contribution to life companies accrued in 2011
26. Free Cash Flow CNO
Sources Building While Recurring Uses Moderating
($ in millions)
9 - Month 2012: Capital Generation & Free Cash Flow
$358
Observations
$45
$313 RBC $50mm above 350% RBC target
Deployable holdco capital of $150mm
($52)
Modest capital required to support business
p q pp
($15) growth
Recapitalization
$198
Modest reduction in interest expense
Scheduled debt amortization of $55mm
Greater sweep flexibility
$246
$115
Fees and Interest to Holdco
Net statutory dividends to Holdco
Capital Upstreamed Interest Holdco Free
Generated to Holdco Paid Expenses Cash Flow (1) Retained capital for growth and
(net)
RBC build
C
(1) Cash flow available for capital management and scheduled amortization
CNO Financial Group 26
27. CNO: Well Positioned in Growing & Underserved Markets
The middle-income, pre-retiree and retirement markets are growing as
the Baby Boomers age
These markets need straightforward products that help address
healthcare expenditures, retirement, and leaving a legacy for loved
ones
We are well positioned in all 3 segments to serve these needs
Sales of these products convert quickly to cash
Gear shift to increased capital deployment
Refreshed capital structure
Alignment of target market, product mix distribution and home office
market mix, distribution,
CNO Financial Group 27
28. 2012 CNO Investor Day in NYC
CNO will be hosting an Investor Day on Thursday,
December 13, 2012 in NYC
Invitations will be sent and additional details posted to
our website in the coming weeks
The event will be available via webcast
CNO Financial Group 28
31. 3Q12 Significant Items
($ millions) CNO
The table below summarizes the financial impact of significant items on our 3Q12 net operating income. Management believes that identifying the
impact of these items enhances the understanding of our operating results during 3Q12.
Three months ended
September 30, 2012
Excluding
significant
Actual results Significant items items
Net Operating Income:
Bankers Life $ 80.6 $ - $ 80.6
Washington National 33.9 - 33.9
Colonial Penn (2.6) - (2.6)
Other CNO Business (53.6) 64.0 10.4
EBIT from business segments
b siness 58.3
58 3 64.0
64 0 122.3
122 3
Corporate Operations, excluding corporate interest expense (6.7) 10.0 3.3
EBIT 51.6 74.0 125.6
Corporate interest expense (16.3) - (16.3)
Operating earnings before tax 35.3 74.0 109.3
Tax expense on operating income 9.7 29.7 39.4
Net operating income * $ 25.6 $ 44.3 $ 69.9
Net operating income per diluted share * $ 0.11 $ 0.15 $ 0.26 **
* A non-GAAP measure. See pages 33 and 42 for reconciliations to the corresponding GAAP measures.
CNO Financial Group ** Operating earnings per share, excluding significant items is calculated based on the weighted average diluted shares outstanding, including
31
the dilutive effect of all common stock equivalents. Such common stock equivalents are dilutive in this calculation.
32. 3Q11 Significant Items CNO
($ millions)
)
The table below summarizes the financial impact of significant items on our 3Q11 net operating income. Management believes that identifying the
impact of these items enhances the understanding of our operating results during 3Q11.
Three months ended
September 30, 2011
Excluding
Significant significant
Actual results items items
Net Operating Income:
Bankers Life $ 79.4 $ (14.0) $ 65.4
Washington National 21.2 6.0 27.2
Colonial Penn (1.3) - (1.3)
Other CNO Business 2.8 13.0 15.8
EBIT from business segments 102.1
102 1 5.0
50 107.1
107 1
Corporate Operations, excluding corporate interest expense (27.5) 9.0 (18.5)
EBIT 74.6 14.0 88.6
Corporate interest expense (18.7) - (18.7)
Operating earnings before tax 55.9 14.0 69.9
Tax expense on operating income 23.1 2.0 25.1
Net operating income * $ 32.8 $ 12.0 $ 44.8
Net operating income per diluted share * $ 0.12 $ 0.04 $ 0.16
* A non-GAAP measure. See pages 33 and 42 for reconciliations to the corresponding GAAP measures.
CNO Financial Group 32
33. Quarterly Earnings
y g CNO
($ millions)
3Q11 4Q11 1Q12 2Q12 3Q12
Bankers Life $ 79.4 $ 77.2 $ 70.5 $ 76.1 $ 80.6
Washington National 21.2 28.8 24.7 33.9 33.9
Colonial Penn (1.3)
(1 3) 1.8
18 (9.8)
(9 8) 0.6
06 (2.6)
(2 6)
Other CNO Business 2.8 - (2.3) 1.9 (53.6)
EBIT* from business segments 102.1 107.8 83.1 112.5 58.3
Corporate operations, excluding interest expense (27.5) (8.4) (1.8) (9.1) (6.7)
Total EBIT 74.6 99.4 81.3 103.4 51.6
Corporate i t
C t interest expense
t (18.7)
(18 7) (17.7)
(17 7) (17.5)
(17 5) (16.6)
(16 6) (16.3)
(16 3)
Income before net realized investment gains, fair value
changes in embedded derivative liabilities and taxes 55.9 81.7 63.8 86.8 35.3
Tax expense on period income 23.1 30.7 23.2 32.6 9.7
Net operating income 32.8 51.0 40.6 54.2 25.6
Net realized investment gains 17.3 14.0 14.1 18.7 4.8
Fair value changes in embedded derivative liabilities (12.9) (0.4) 4.5 (6.9) (2.0)
Loss on extinguishment of debt, net of income taxes (0.7) (0.2) (0.1) (0.3) (176.4)
Net income (loss) before valuation allowance for deferred tax assets 36.5 64.4 59.1 65.7 (148.0)
Decrease in valuation allowance for deferred tax assets 143.0 - - - 143.0
Net income (loss) $ 179.5 $ 64.4 $ 59.1 $ 65.7 $ (5.0)
Net income (loss) per diluted share $ 0.61 $ 0.23 $ 0.21 $ 0.24 $ (0.02)
*Management believes that an analysis of earnings before net realized investment gains (losses), corporate interest, loss on extinguishment of debt, fair value changes due to
fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities and taxes (“EBIT,” a non-GAAP financial measure) provides
( EBIT, non GAAP
a clearer comparison of the operating results of the company quarter-over-quarter because it excludes: (1) corporate interest expense; (2) loss on extinguishment of debt; (3)
net realized investment gains (losses); and (4) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed
index annuities that are unrelated to the company’s underlying fundamentals. The table above provides a reconciliation of EBIT to net income.
CNO Financial Group 33
34. 3Q12 Holding Company Liquidity CNO
($ millions)
YTD
3Q12 2012
Cash and Investments Balance - Beginning $197.7 $202.8 *
Sources
Dividends from Insurance Subsidiaries 95.0 198.0
Dividends from Non-insurance Subsidiaries 2.0 6.0
Interest/Earnings on Corporate Investments 8.3 22.1
Surplus Debenture Interest 22.4 46.6
Service and Investment Fees, Net 29.5 68.4
Proceeds from Debt Issues 944.5 944.5
Total Sources 1,101.7 1,285.6
Uses
Interest 20.9 52.3
Debt Repayments and Expenses Related to Recapitalization 918.4 918.4
Share Repurchases 41.4 99.6
Other Debt Prepayment - 81.4
Common Stock Dividend 4.6 9.3
Holding Company Expenses and Other 2.3 14.9
Total Uses 987.6 1,175.9
Non-cash changes in investment balances 1.8 1.1
Unrestricted Cash and Investments Balance - 09/30/2012 $313.6 $313.6
CNO Financial Group * Net of $26 million accrued for contribution to life companies in 2011 34
35. Debt Maturity Profile CNO
($ millions)
$403
$275
$403
$154
$275
(1)
$93
$
$79
$54 $61
$61 $79 $61
$14 $54 $4
$14 $4
2012 2013 2014 2015 2016 2017 2018 2019 2020
Term Loan Convertible Senior Unsecured Debentures
$74 Senior Secured Notes
(1) Conversion price is $5.49. CNO can force conversion after 6/30/13 if CNO stock trades above $7.69 for 20 or more days in a consecutive 30 day trading
period. On 09/30/2012, CNO’s stock closed at $9.65.
CNO Financial Group 35
36. GAAP Valuation Allowance Model
($ millions)
CNO
Life NOLs Non-life NOLs
expiring expiring expiring Capital loss
through 2023 through 2023 Post 2023 carryforwards Total
Net operating loss (“NOL”) NOL
carryforwards $ 1,416 $ 1,972 $ 516 $ 872 $ 4,776
Potential unfavorable IRS ruling (631) 631 - - -
NOL carryforwards, adjusted for
y , j
potential unfavorable IRS rulings 785 2,603 516 872 4,776
Future taxable income as
modeled for the GAAP
valuation (1)
al ation (3,550)
(3 550) (345) - - (3,895)
(3 895)
Excess life income that may be
used to offset non-life NOLs
at 35¢ per $1 2,765 (969) - - 1,796
Other items considered - 65 - - 65
Post 2023 NOL utilization - - (516) - (516)
Unused NOLs based on GAAP
valuation $ - $ 1,354 $ - $ 872 $ 2,226
Valuation allowance required $ - $ 474 $ - $ 305 $ 779
(1) Modeled future taxable earnings are based on the 3-year average normalized taxable income, which is assumed to
CNO Financial Group 36
grow by 5 percent per year in the next five years and then remain flat for the remaining years.
37. Long Term Care Bankers Life
Proactive management of risk and profitability in effort to create
stability in our LTC business…
Bankers utilizes exclusive distribution with a focus on middle income 65+ target
market; lower risk profile – no group business
Since 2006, have implemented 4 rounds of rate increases, covering approximately
50% of all i f
f ll inforce policies
li i
As of 9/30/12 we have received approximately $34 million of the $35 million of expected approvals for
latest round LTC (LTC and HHC) and STC Sales Mix
Reduced risk profile of LTC block
p
Less than 5% of in force policies contain lifetime 48%
52%
benefit options 64% 59%
71% 67%
81%
Less than 1% of total LTC sales contain lifetime
benefit options
+50% of current new sales are STC policies
48% 52%
36% 41%
29% 33%
19%
True LTC sales representing 6% of total
NAP for Bankers YTD 2012 2006 2007 2008 2009 2010 2011 2012 YTD
STC (Short Term Care) LTC (Long Term Care and Home Health Care)
CNO Financial Group 37
38. Commercial Mortgage Loans at 9/30/12 CNO
By Vintage By Property Type
Other Mixed
Multi- 3.4%
Multi 2.9%
2012 Family
7.5% 2011 6.2%
5.4% 2009
2004 and Industrial
2010 0.5%
Prior 16.9%
4.9%
22.3%
22 3%
2005
7.4% 2008
18.4% Retail
37.3% Office
33.3%
33 3%
2006
2007
15.2%
18.4%
6.3% of invested assets based on market value 0.01% delinquency rate
Current LTV of approximately 63.4% No remaining 2012 loan maturities
Average trailing DSCR stable at app o
e age t a g SC stab e approximately 1.49
ate y 9
CNO Financial Group 38
39. Commercial Mortgage Loans CNO
Portfolio t
P tf li at 09/30/12
($ millions)
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+
CNO Financial Group
Run-off of Principal of Current CML Portfolio Principal Maturities by Year 39
40. European Debt by Select Countries CNO
($ millions)
We have limited direct exposure to the European credit markets
Market / Total
Sovereigns Corporates Banks Total Market BV Issuers
Italy $ - $ 26.1 $ - $ 26.1 $ 24.1 92% 1
Spain
p - 64.6 27.9 92.5 86.2 93% 2
Total $ - $ 90.7 $ 27.9 $ 118.6 $ 110.3 93% 3
CNO Financial Group 40
41. 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
results,
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 loss on
extinguishment of debt, net realized gains or losses, fair value changes due to fluctuations in the interest rates
used to discount embedded derivative liabilities related to our fixed index annuities and increases or
decreases to our valuation allowance for deferred tax assets (“net operating income,” a non-GAAP financial
measure) is important to evaluate the performance of the Company and is a key measure commonly used in
the life insurance industry. Management uses this measure to evaluate performance because these items are
unrelated to the Company’s continuing operations.
CNO Financial Group 41
42. 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):
3Q11 4Q11 1Q12 2Q12 3Q12
Net income (loss) applicable to common stock $ 179.5 $ 64.4 $ 59.1 $ 65.7 $ (5.0)
Net realized investment (gains) losses, net of related amortization and taxes (17.3) (14.0) (14.1) (18.7) (4.8)
Fair value changes in embedded derivative liabilities, net of related amortization and taxes 12.9 0.4 (4.5) 6.9 2.0
Valuation allowance for deferred tax assets (143.0) - - - (143.0)
Loss on extinguishment of debt 0.7 0.2 0.1 0.3 176.4
Net operating income (a non-GAAP financial measure) $ 32.8 $ 51.0 $ 40.6 $ 54.2 $ 25.6
Per diluted share:
Net income (loss) $ 0.61 $ 0.23 $ 0.21 $ 0.24 $ (0.02)
Net realized investment (gains) losses, net of related amortization and taxes (0.06) (0.05) (0.05) (0.06) (0.02)
Fair value changes in embedded derivative liabilities, net of related amortization and taxes 0.04 - (0.01) 0.02 0.01
Valuation allowance for deferred tax assets (0.47) - - - (0.62)
Loss on extinguishment of debt - - - - 0.76
Net operating income (a non-GAAP financial measure) $ 0.12 $ 0.18 $ 0.15 $ 0.20 $ 0.11
CNO Financial Group 42
43. Information Related to Certain Non-GAAP Financial Measures
A reconciliation of operating income and shares used to calculate basic and diluted operations earnings per share is as follows (dollars in
millions, except per-share amounts, and shares in thousands):
3Q11 4Q11 1Q12 2Q12 3Q12
Operating income $ 32.8 $ 51.0 $ 40.6 $ 54.2 $ 25.6
Add: interest expense on 7.0% Convertible Senior Debentures
due 2016, net of income taxes 3.7 3.7 3.7 3.7 -
Total adjusted operating income
j p g $ 36.5 $ 54.7 $ 44.3 $ 57.9 $ 25.6
Weighted average shares outstanding for basic earning per share 246,965 242,789 240,895 237,289 231,481
Effect of dilutive securities on weighted average shares:
7% Debentures 53,367 53,367 53,367 53,377 -
Stock option and restricted stock plan 2,353 1,915 2,582 2,367 -
Warrants 23 - 499 442 -
Weighted average shares outstanding for diluted earning per share 302,708 298,071 297,343 293,475 231,481 (a)
Operating earnings per diluted share $ 0.12 $ 0.18 $ 0.15 $ 0.20 $ 0.11
(a) In the third quarter of 2012, equivalent common shares of 56,651 related to all common stock equivalents were not included in the diluted
weighted average shares outstanding because their inclusion would have been antidilutive due to the net loss recognized in the period.
CNO Financial Group 43
44. Information Related to Certain Non-GAAP Financial Measures
Book value, excluding accumulated other comprehensive income (loss), per share
This non-GAAP financial measure differs from book value per share because accumulated other comprehensive income (loss) has been
excluded from the book value used to determine the 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 b management.
d by t
A reconciliation from book value per share to book value per share, excluding accumulated other comprehensive income (loss) is as follows
(dollars in millions, except per share amounts):
3Q11 4Q11 1Q12 2Q12 3Q12
Total shareholders' equity $ 4,536.2 $ 4,613.8 $ 4,683.0 $ 4,893.1 $ 5,252.9
Less accumulated other comprehensive income 750.9 781.6 808.0 990.8 1,421.1
Total shareholders' equity excluding
accumulated other comprehensive income
(a non-GAAP financial measure) $ 3,785.3 $ 3,832.2 $ 3,875.0 $ 3,902.3 $ 3,831.8
Shares outstanding for the period 243,247,260 241,304,503 239,219,445 234,026,409 229,506,690
Book value per share $ 18.65 $ 19.12 $ 19.58 $ 20.91 $ 22.89
Less accumulated other comprehensive income 3.09 3.24 3.38 4.24 6.19
Book value, excluding accumulated other
comprehensive income, per share
(a non-GAAP financial measure) $ 15.56 $ 15.88 $ 16.20 $ 16.67 $ 16.70
CNO Financial Group 44
45. Information Related to Certain Non-GAAP Financial Measures
Operating return measures
Management believes that an analysis of return before loss on extinguishment of debt, net realized gains or losses, fair value changes due to
fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities and increases or decreases to
our valuation allowance for deferred tax assets (“net operating income,” a non-GAAP financial measure) is important to evaluate the performance
of the Company and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance
because th
b these it
items are unrelated t th C
l t d to the Company’s continued operations.
’ ti d ti
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.
All references to return on allocated capital measures assume a capital allocation based on a 275% targeted risk-based capital at the segment
level. Additionally, corporate debt has been allocated to the segments.
CNO Financial Group 45
46. Information Related to Certain Non-GAAP Financial Measures
The calculations of: (i) operating return on allocated capital, excluding accumulated other comprehensive income (loss) and net operating
loss carryforwards (a non-GAAP financial measure); and (ii) return on equity, for the twelve months ended September 30, 2012, are as
follows (dollars in millions):
Bankers Washington
g Colonial Other CNO
Life National Penn Business Corporate Total
Segment operating return for purposes of calculating operating
return on allocated capital $ 166.6 $ 64.0 $ (7.7) $ (47.2) $ (4.3) $ 171.4
Net income $ 184.2
184 2
Trailing 4 Quarter Average as of September 30, 2012
Allocated capital, excluding accumulated other comprehensive
income and net operating loss carryforwards
(a non-GAAP financial measure) $ 1,171.4 $ 550.6 $ 77.6 $ 554.5 $ 660.1 $ 3,014.2
Common shareholders' equity $ 4,771.1
Operating return on allocated capital, excluding accumulated
other comprehensive income and net operating
loss carryforwards (a non-GAAP financial measure) 14.2% 11.6% (9.9%) (8.5%) 5.7%
Return on equity 3.9%
(Continued on next page)
CNO Financial Group 46
47. Information Related to Certain Non-GAAP Financial Measures
A reconciliation of pretax operating earnings (a non-GAAP financial measure) to segment operating return (loss) and consolidated net income
(loss) for the twelve months September 30, 2012, is as follows (dollars in millions):
Bankers Washington
g Colonial Other CNO
Life National Penn Business Corporate Total
Segment pretax operating earnings (a non-GAAP financial measure) $ 304.4 $ 121.3 $ (10.0) $ (54.0) $ (94.1) $ 267.6
Adjustment to investment income to reflect capital at 275% (10.4) (5.4) 0.4 (3.6) 19.0 -
Interest allocated on corporate debt (33.8) (15.9) (2.3) (16.2) 68.2 -
Income tax (expense) benefit (93.6) (36.0) 4.2 26.6 2.6 (96.2)
Segment operating return for purposes of calculating operating
return on allocated capital $ 166.6 $ 64.0 $ (7.7) $ (47.2) $ (4.3) 171.4
Net realized investment gains, net of related amortization and taxes 51.6
Fair value changes in embedded derivative liabilities, net of related amortization and taxes (4.8)
Loss on extinguishment of debt (177.0)
Valuation allowance for deferred tax assets 143.0
Net income $ 184.2
(Continued on next page)
(C ti d t )
CNO Financial Group 47
48. Information Related to Certain Non-GAAP Financial Measures
A reconciliation of average allocated capital (for the purpose of determining return on allocated capital), excluding accumulated other
comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to average common shareholders’ equity, is
as follows (dollars in millions):
(Continued from previous page)
Bankers Washington Colonial Other CNO
Life National Penn Business Corporate Total
Trailing 4 Quarter Average as of September 30, 2012
Allocated capital (for the purpose of determining return on
allocated capital), excluding accumulated other comprehensive
income and net operating loss carryforwards
(a non-GAAP financial measure) $ 1,171.4 $ 550.6 $ 77.6 $ 554.5 $ 660.1 $ 3,014.2
Net operating loss carryforwards - - - - 840.3 840.3
Accumulated other comprehensive income 407.7 146.2 44.5 290.3 27.9 916.6
Adjustment to reflect capital at 275% RBC 162.7 88.9 (8.2) 70.3 (313.7) -
Allocation of corporate debt 421.5 198.0 28.0 199.6 (847.1) -
Common shareholders' equity $ 2,163.3 $ 983.7 $ 141.9 $ 1,114.7 $ 367.5 $ 4,771.1
(Continued on next page)
CNO Financial Group 48
49. 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):
(Continued from previous page)
3Q11 4Q11 1Q12 2Q12 3Q12 Average
Consolidated capital excluding accumulated other comprehensive
capital,
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure) $ 2,868.7 $ 2,966.3 $ 3,057.1 $ 3,129.9 $ 2,938.8 $ 3,014.2
Net operating loss carryforwards 916.6 865.9 817.9 772.4 893.0 840.3
Accumulated other comprehensive income 750.9 781.6 808.0 990.8 1,421.1 916.6
Common shareholders' equity
shareholders $ 4 536 2
4,536.2 $ 4 613 8
4,613.8 $ 4 683 0
4,683.0 $ 4 893 1
4,893.1 $ 5 252 9
5,252.9 $ 4 771 1
4,771.1
CNO Financial Group 49
50. Information Related to Certain Non-GAAP Financial Measures
Debt to capital ratio, excluding accumulated other comprehensive income (loss) and as defined in our New Senior Secured Credit Agreement
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 f
h b l d d from th value of capital used t d t
the l f it l d to determine thi measure. Management believes thi non-GAAP financial measure i useful b
i this M t b li this GAAP fi i l is f l because it removes th volatility
the l tilit
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, the debt to capital ratio as defined by our New
Senior Secured Credit Agreement is useful as the level of such ratio impacts certain provisions in our New Senior Secured Credit Agreement. A reconciliation of these ratios is as
follows ($ in millions):
3Q11 4Q11 1Q12 2Q12 3Q12
Corporate notes p y
p payable $ 871.2 $ 857.9 $ 799.3 $ 778.2 $ 1,035.1
Total shareholders' equity 4,536.2 4,613.8 4,683.0 4,893.1 5,252.9
Total capital $ 5,407.4 $ 5,471.7 $ 5,482.3 $ 5,671.3 $ 6,288.0
Corporate debt to capital 16.1% 15.7% 14.6% 13.7% 16.5%
Corporate notes payable $ 871.2 $ 857.9 $ 799.3 $ 778.2 $ 1,035.1
Total shareholders' equity 4,536.2 4,613.8 4,683.0 4,893.1 5,252.9
Less accumulated other comprehensive income (750.9) (781.6) (808.0) (990.8) (1,421.1)
Total capital $ 4,656.5 $ 4,690.1 $ 4,674.3 $ 4,680.5 $ 4,866.9
Debt to total capital ratio, excluding AOCI (a
non GAAP
non-GAAP financial measure) 18.7%
18 7% 18.3%
18 3% 17.1%
17 1% 16.6%
16 6% 21.3%
21 3%
Corporate notes payable $ 1,035.1
Add unamortized discount on notes payable 9.1
Par value of notes payable 1,044.2
Plus accrued interest and other items 2.3
Debt, as defined in our New Senior Secured Credit Agreement 1,046.5
Total shareholders' equity 5,252.9
Less accumulated other comprehensive income (1,421.1)
Total Capital, as defined in our New Senior Secured Credit Agreement
p , g $ 4,878.3
,
Debt to capital ratio, as defined in our New Senior Secured Credit Agreement (a non-GAAP financial measure) 21.5%
CNO Financial Group 50