CNO

cno-20240429

0001224608falsetrue00012246082024-04-292024-04-290001224608us-gaap:CommonStockMember2024-04-292024-04-290001224608cno:RightsToPurchaseSeriesFJuniorParticipatingPreferredStockMember2024-04-292024-04-290001224608cno:A5125SubordinatedDebenturesDue2060Member2024-04-292024-04-29

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): April 29, 2024

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.)

11299 Illinois 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 F 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 April 29, 2024, CNO Financial Group, Inc. ("CNO" or the "Company") issued: (i) a press release announcing its financial results for the quarter ended March 31, 2024, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference; (ii) the Quarterly Financial Supplement for March 31, 2024, 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 March 31, 2024, 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 9.01(d).Financial Statements and Exhibits.

The following materials are furnished as exhibits to this Current Report on Form 8-K:

99.1 Press release dated April 29, 2024 related to financial results for the quarter ended March 31, 2024.

99.2 Quarterly Financial Supplement - 1Q2024.

99.3 First Quarter 2024 Financial and Operating Results for the period ended March 31, 2024.

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: April 29, 2024

By:/s/ Michellen A. Wildin

Michellen A. Wildin

Senior Vice President and

Chief Accounting Officer

3

EX-99.1

2 exhibit991-12312023earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Fourth Quarter and Full Year 2023 Results

Strong fourth quarter earnings, sustained full-year sales momentum and agent force growth

Carmel, Ind., February 6, 2024 - CNO Financial Group, Inc. (NYSE: CNO) today announced its financial results for the fourth quarter and full year ended December 31, 2023. Net income in 4Q23 was $36.3 million, or $0.32 per diluted share, compared to $38.0 million, or $0.33 per diluted share, in 4Q22. Net income for year ended December 31, 2023 was $276.5 million, or $2.40 per diluted share, compared to $630.6 million, or $5.36 per diluted share, in 2022. Net income in 2023 and 2022 reflected non-economic market impacts which increased (decreased) earnings by $(18.8) million and $334.9 million, respectively.

Net operating income (1) for the quarter ended December 31, 2023 was $133.9 million, or $1.18 per diluted share, compared to $82.9 million, or $0.71 per diluted share, in 4Q22. Net operating income (1) for the year ended December 31, 2023 was $356.1 million, or $3.09 per diluted share, compared to $360.4 million, or $3.06 per diluted share, in 2022.

In 4Q23, significant items positively impacted both net income and net operating income (1) by $26.4 million, or $0.23 per diluted share. For the year, both net income and net operating income (1) were favorably impacted by significant items of $43.3 million, or $0.37 per diluted share, in 2023 and $17.9 million, or $0.15 per diluted share, in 2022.

"CNO delivered strong earnings growth in the quarter and exceptional full-year operating performance," said Gary C. Bhojwani, chief executive officer. "Our diverse, integrated distribution generated four consecutive quarters of sales momentum, increased agent counts and record growth across multiple product categories. This high level of operating performance underscores the health and strength of our business model and will contribute to sustained profitable growth."

"Our capital position and free cash flow generation remained strong, enhanced by our new Bermuda reinsurance structure. We delivered solid earnings results in the year, driven by stable insurance product margins and improved investment portfolio yield. During 2023, we returned more than $230 million to shareholders."

"CNO enters 2024 with considerable sales momentum and a growing agent force amid favorable macro trends. We continue to prioritize strong capital management and profitable growth, which are the cornerstone of our commitment to deliver enduring value to our customers, associates, agents and shareholders."

Full Year 2023 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total new annualized premiums ("NAP") (4) up 9%; total Health insurance NAP up 11%

•    Consumer Division field NAP up 16%

•Worksite Division NAP up 29%

•     Established CNO Bermuda Re and executed initial reinsurance transaction

•    Returned $233.2 million to shareholders

•     Return on equity ("ROE") of 14.0%; operating ROE, as adjusted, (6) of 9.8%

Fourth Quarter 2023 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total Health insurance NAP (4) up 5%; total Life insurance NAP up 8%

•    Consumer Division NAP up 4% and producing agent count up 9%

•Worksite Division NAP up 20% and producing agent count up 27%

•     Returned $96.7 million to shareholders

•     Book value per share was $20.26; book value per diluted share, excluding accumulated other comprehensive loss, (2) was $33.94

Adoption of New Accounting Standard

As previously disclosed, we adopted ASU 2018-12 related to targeted improvements to the accounting for long-duration insurance contracts effective January 1, 2023. We selected the modified retrospective transition method except for market risk benefits where we were required to use the full retrospective approach. All prior periods presented herein have been recast in accordance with the new standard. As a result of the adoption of the new guidance, shareholders' equity as of December 31, 2022 increased $368.0 million and was comprised of: (i) an increase to retained earnings of $232.2 million; and (ii) a decrease to accumulated other comprehensive loss of $135.8 million. Net income and net operating income (1) increased (decreased ) $(5.4) million and $17.1 million in the fourth quarter of 2022, respectively. Concurrent with the adoption of the new guidance, we also updated the method of determining non-operating earnings for our fixed indexed annuities to better isolate the volatile non-economic accounting impacts of that line of business.

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

EX-99.1

2 exhibit991-09302023earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Third Quarter 2023 Results

Solid third quarter results, total new annualized premiums up 13%

Carmel, Ind., November 6, 2023 - CNO Financial Group, Inc. (NYSE: CNO) today reported net income of $167.3 million, or $1.46 per diluted share, in 3Q23 compared to $175.9 million, or $1.52 per diluted share, in 3Q22. Net operating income (1) was $101.3 million, or $0.88 per diluted share, in 3Q23 compared to $77.9 million, or $0.67 per diluted share, in 3Q22. Net income and net operating income (1) were both favorably impacted in 3Q23 by significant items totaling $16.9 million, or $0.14 per diluted share, as summarized in note 7.

"We are pleased with our financial performance in the quarter, led by both strong underwriting margins and net investment income results," said Gary C. Bhojwani, chief executive officer. "New products, programs to increase the number and productivity of our agents, and tech-enabled efficiency initiatives implemented over the last several quarters continue to drive sustained sales growth and enhanced customer value."

"We posted increases in net operating income and book value per diluted share, while enhancing our capital position. For the third consecutive quarter, new money rates exceeded 6%, continuing the positive trend in our earned yields. Health claims moderated in the quarter as expected, and variable investment income results continued to improve."

"CNO is pleased to launch our Bermuda affiliate and we are in the process of implementing our initial reinsurance transaction. We remain well-positioned to execute on our strategy to serve middle-income America and deliver shareholder value."

Third Quarter 2023 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total Health insurance new annualized premiums ("NAP") (4) up 14%; total Life insurance NAP up 11%

•    Consumer Division NAP up 9% and field producing agent count up 9%

•Worksite Division NAP up 36% and producing agent count up 24%

•     Returned $56.9 million to shareholders

•     Book value per share was $16.85; book value per diluted share, excluding accumulated other comprehensive loss, (2) was $33.75

•     Return on equity ("ROE") of 14.5%; operating ROE, as adjusted, (6) of 8.5%

Other Announcement

•CNO established its wholly-owned Bermuda reinsurance company and received all necessary approvals to reinsure approximately $6.2 billion of inforce fixed indexed annuity statutory reserves, in addition to new fixed indexed annuity business. Implementation of the initial reinsurance transaction is in process, with an effective date of October 1, 2023.

Adoption of New Accounting Standard

As previously disclosed, we adopted ASU 2018-12 related to targeted improvements to the accounting for long-duration insurance contracts effective January 1, 2023. We selected the modified retrospective transition method except for market risk benefits where we were required to use the full retrospective approach. All prior periods presented herein have been recast in accordance with the new standard. As a result of the adoption of the new guidance, shareholders' equity as of December 31, 2022 increased $368.0 million and was comprised of: (i) an increase to retained earnings of $232.2 million; and (ii) a decrease to accumulated other comprehensive loss of $135.8 million. Net income and net operating income (1) for the third quarter of 2022 increased $70.9 million and $21.0 million, respectively. Concurrent with the adoption of the new guidance, we also updated the method of determining non-operating earnings for our fixed indexed annuities to better isolate the volatile non-economic accounting impacts of that line of business.

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net realized investment gains (losses) from sales and change in the allowance for credit losses, changes in fair values of embedded derivatives and market risk benefits 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

September 30,September 30,

20232022% change20232022% change

Income from insurance products (b) $0.76 $0.77 (1)$86.8 $88.6 (2)

Fee income(0.03)0.01 (400)(2.9)1.4 (307)

Investment income not allocated to product l

EX-99.1

2 exhibit991-06302023earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Second Quarter 2023 Results

Total new annualized premiums up 11%; strong capital position

Carmel, Ind., July 31, 2023 - CNO Financial Group, Inc. (NYSE: CNO) today reported net income of $73.7 million, or $0.64 per diluted share, in 2Q23 compared to $233.3 million, or $1.99 per diluted share, in 2Q22. Net operating income (1) was $62.3 million, or $0.54 per diluted share, in 2Q23 compared to $135.1 million, or $1.15 per diluted share, in 2Q22.

"Production was strong in both our Consumer and Worksite Divisions, with notable sales increases in Life, Medicare Supplement and Supplemental Health, driven by continued growth in producing agent counts," said Gary C. Bhojwani, chief executive officer.

"Variable investment income results improved sequentially, yet reflect a tough comparable in the second quarter of 2022 when results reached a five-year high. Health claims impacted our results in the quarter. We expect this elevated claims experience to moderate in the second half of the year, based on leading indicators. Our long-term view of the Health business remains positive."

"New money rates were once again strong in the quarter at 6.34%, which drove continued improvement in the earned yield on investments allocated to insurance products. Our consolidated risk based capital (RBC) ratio of 386% was comfortably above our target as was our holding company liquidity of $176 million. Free cash flow generation in the quarter was robust."

Second Quarter 2023 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total Health insurance new annualized premiums ("NAP") (4) up 15%; total Life insurance NAP up 8%

•     Medicare Supplement NAP up 29%; Consumer Division field agent-sold Life insurance NAP up 20%

•     Consumer Division field producing agent count up 8%; Worksite Division producing agent count up 32%

•     Returned $47.4 million to shareholders

•     Book value per share was $17.56; book value per diluted share, excluding accumulated other comprehensive loss,(2) was $32.34

•     Return on equity ("ROE") of 14.8%; operating ROE, as adjusted,(6) of 8.0%

Adoption of New Accounting Standard

As previously disclosed, we adopted ASU 2018-12 related to targeted improvements to the accounting for long-duration insurance contracts effective January 1, 2023. We selected the modified retrospective transition method except for market risk benefits where we were required to use the full retrospective approach. All prior periods presented herein have been recast in accordance with the new standard. As a result of the adoption of the new guidance, shareholders' equity as of December 31, 2022, increased $368.0 million and was comprised of increases to retained earnings and accumulated other comprehensive income (loss) of $232.2 million and $135.8 million, respectively. Net income and operating earnings (1) for the second quarter of 2022 increased $97.2 million and $35.0 million, respectively. Concurrent with the adoption of the new guidance, we also updated the method of determining non-operating earnings for our fixed indexed annuities to better isolate the volatile non-economic accounting impacts of that line of business.

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net realized investment gains (losses) from sales and change in the allowance for credit losses, changes in fair values of embedded derivatives and market risk benefits 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

June 30,June 30,

20232022% change20232022% change

Income from insurance products (b) $0.64 $0.88 (27)$73.7 $103.5 (29)

Fee income— 0.03 (100)0.6 3.2 (81)

Investment income not allocated to product lines (c) 0.24 0.55 (56)28.0 64.6 (57)

Expenses not allocated to product lines (d) (0.18)0.02 (1,000)(21.1)2.9 (828)

Operating earnings before taxes0.70 1.48 81.2 174.2

Income tax expense on operating income(0.16)(0.33)(52)(18.9)(39.1)(52)

Net operating income (1)0.54 1.15 (53)62.3 135.1 (54)

Net realized investment losses from sales and change in allowance for credit losses(0.27)(0.23)(31.3)(27.1)

Net change in market value of investments recognized in earnings(0.04)(0.19)(4.0)(21.7)

Changes in fair

EX-99.1

2 exhibit991-03312023earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports First Quarter 2023 Results

Total new annualized premiums up 7%

Capital and liquidity remain above target levels

Carmel, Ind., May 1, 2023 - CNO Financial Group, Inc. (NYSE: CNO) today reported a net loss of $0.8 million, or $0.01 per diluted share, in 1Q23 compared to net income of $183.4 million, or $1.52 per diluted share, in 1Q22. Non-economic accounting impacts of market volatility often result in significant increases and decreases to our non-operating income and drove the net loss in 1Q23. Net operating income (1), which excludes these non-economic accounting impacts, was $58.6 million, or $0.51 per diluted share, in 1Q23 compared to $64.5 million, or $0.54 per diluted share, in 1Q22.

"Strengthening insurance margins, solid customer persistency and significant growth in fee income substantiate the fundamental health of CNO's operating businesses," said Gary C. Bhojwani, chief executive officer. "We posted record direct-to-consumer Life sales, record Medicare growth and continued sales momentum across nearly all insurance product categories. Successful agent recruiting generated producing agent count growth for both our Consumer and Worksite Divisions, evidencing a critical inflection point since the pandemic."

"Our capital and liquidity positions are above target levels. Our cash flow remains robust. We continue to be confident in our operating plan and reiterate our full-year operating guidance."

First Quarter 2023 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total new annualized premiums ("NAP") (4) up 7%

•     Medicare Supplement NAP up 20%; Medicare Advantage sales up 55%

•     Consumer Division field producing agent count up 1%; Worksite Division producing agent count up 38%

•     Returned $32.2 million to shareholders

•     Return on equity ("ROE") of 21.8%; operating ROE, as adjusted (6), of 10.3%

Adoption of New Accounting Standard

Effective January 1, 2023, we adopted ASU 2018-12 related to targeted improvements to the accounting for long-duration insurance contracts. We selected the modified retrospective transition method except for market risk benefits where we were required to use the full retrospective approach. All prior periods presented have been recast in accordance with the new standard. As a result of the adoption of the new guidance, shareholders' equity as of December 31, 2022, increased $368.0 million and was comprised of increases to retained earnings and accumulated other comprehensive income (loss) of $232.2 million and $135.8 million, respectively. Net income and operating earnings (1) for the first quarter of 2022 increased $71.1 million and $13.4 million, respectively. Concurrent with the adoption of the new guidance, we updated the method of determining non-operating earnings for our fixed indexed annuities to better identify the volatile non-economic accounting impacts of that line of business.

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net realized investment gains (losses) from sales and change in the allowance for credit losses, changes in fair values of embedded derivatives and market risk benefits 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

March 31,March 31,

20232022% change20232022% change

Income from insurance products (b) $0.56 $0.52 8 $63.7 $62.4 2

Fee income0.13 0.08 63 15.5 9.9 57

Investment income not allocated to product lines (c) 0.14 0.22 (36)15.5 27.0 (43)

Expenses not allocated to product lines (d) (0.16)(0.12)33 (18.3)(14.8)24

Operating earnings before taxes0.67 0.70 76.4 84.5

Income tax expense on operating income(0.16)(0.16)— (17.8)(20.0)(11)

Net operating income (1)0.51 0.54 (6)58.6 64.5 (9)

Net realized investment gains (losses) from sales and change in allowance for credit losses(0.11)(0.06)(12.7)(7.2)

Net change in market value of investments recognized in earnings(0.02)(0.21)(1.9)(25.5)

Changes in fair value of embedded derivative liabilities and market risk benefits(0.57)1.37 (65.1)165.4

Other0.02 0.19 2.3 23.1

Non-operating income (loss) before taxes(0.68)1.29 (77.4)155.8

Income tax (expense) benefit on non-operating income0.16 (0.31)18.0 (36.9)

Net non-operating inc

EX-99.1

2 exhibit991-12312022earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Fourth Quarter and Full Year 2022 Results

2022 sales momentum has CNO well-positioned for 2023 and beyond

Carmel, Ind., February 7, 2023 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended December 31, 2022, net income was $43.4 million, or $0.37 per diluted share, compared to $115.8 million, or $0.93 per diluted share, in 4Q21. Net operating income (1) in 4Q22 was $65.8 million, or $0.56 per diluted share, compared to $108.5 million, or $0.87 per diluted share, in 4Q21.

Net income for the year ended December 31, 2022 was $396.8 million, or $3.37 per diluted share, compared to $441.0 million, or $3.36 per diluted share, in 2021. Net operating income (1) for the year ended December 31, 2022 was $273.9 million, or $2.33 per diluted share, compared to $365.6 million, or $2.79 per diluted share, in 2021.

"Earnings for the quarter and the full year reflect ongoing market volatility, moderation in our alternative investment returns and favorable one-time actuarial benefits from the prior year that did not repeat in 2022," said Gary C. Bhojwani, chief executive officer. "Absent these factors, we delivered sustainable earnings with strong underlying margins across our product portfolio and rising new money rates supporting investment income results. As we enter 2023, our sales momentum across the Consumer and Worksite Divisions has us well-positioned for the year ahead."

Full Year 2022 Highlights (as compared to the corresponding period in the prior year where applicable)

•Direct-to-consumer life insurance new annualized premiums (NAP) (4) up 10%

•Worksite Division NAP (4) up 20%

•Annuity collected premiums up 15%

•Returned $244.8 million to shareholders in the form of share repurchases ($180.0 million) and dividends ($64.8 million); reduced weighted average share count by 10% since 2021

•Return on equity (ROE) of 15.1%; operating ROE, as adjusted (6), of 8.6%

Fourth Quarter 2022 Highlights (as compared to the corresponding period in the prior year where applicable)

•Total NAP (4) up 4%

•Direct-to-consumer life insurance NAP (4) up 9%

•Worksite Division NAP (4) up 8%

•Annuity collected premiums up 8%

•Returned $26.1 million to shareholders in the form of share repurchases ($10.0 million) and dividends ($16.1 million); reduced weighted average share count by 7% since 4Q21

•Estimated consolidated risk-based capital ratio of 384% at December 31, 2022

•Book value per share was $12.25; book value per diluted share, excluding accumulated other comprehensive loss (2), was $29.90 at December 31, 2022

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Per diluted share

Quarter endedQuarter ended

December 31,December 31,

20222021% change20222021% change

Income from insurance products (b) $0.50 $0.89 (44)$58.4 $110.5 (47)

Fee income0.08 0.02 300 9.2 2.9 217

Investment income not allocated to product lines (c) 0.26 0.34 (24)30.3 42.8 (29)

Expenses not allocated to product lines (d) (0.11)(0.14)(21)(12.8)(17.4)(26)

Operating earnings before taxes0.73 1.11 85.1 138.8

Income tax expense on operating income(0.17)(0.24)(29)(19.3)(30.3)(36)

Net operating income (1)0.56 0.87 (36)65.8 108.5 (39)

Net realized investment gains (losses) from sales and change in allowance for credit losses (net of related amortization)(0.22)0.04 (25.5)4.7

Net change in market value of investments recognized in earnings(0.07)(0.10)(9.0)(12.1)

Fair value changes in embedded derivative liabilities (net of related amortization)0.09 0.15 10.7 19.1

Other(0.05)(0.02)(5.9)(2.4)

Non-operating income (loss) before taxes(0.25)0.07 (29.7)9.3

Income tax (expense) benefit on non-operating income0.06 (0.01)7.3 (2.0)

Net non-operating income (loss)(0.19)0.06 (22.4)7.3

Net income$0.37 $0.93 $43.4 $115.8

Weighted average diluted shares outstanding116.7 125.0

2

FINANCIAL SUMMARY

Year End

(Amounts in millions, except per share data)

(Unaudited)

Per diluted share

Year endedYear ended

December 31,December 31,

20222021% change20222021% change

Income from insurance products (b) $1.82 $2.65 (31)$214.7 $347.2 (38)

Fee income0.20 0.1

EX-99.1

2 exhibit991-09302022earnings.htm

EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Third Quarter 2022 Results

Solid third quarter results with earnings per share up 18%, continued strong sales momentum

Carmel, Ind., October 31, 2022 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended September 30, 2022, net income was $105.0 million, or $0.91 per diluted share, compared to $99.8 million, or $0.77 per diluted share, in 3Q21. Net operating income (1) in 3Q22 was $56.9 million, or $0.49 per diluted share, compared to $92.8 million, or $0.72 per diluted share, in 3Q21.

"CNO again delivered solid earnings in a challenging macroeconomic environment," said Gary C. Bhojwani, chief executive officer. "Continued strong production in our annuities, direct-to-consumer and worksite businesses resulted in gains in total new annualized premiums for the quarter. Increases in our capital ratios and the consistent strength of our balance sheet underscore our disciplined capital management. While economic uncertainty is likely to persist, the resiliency of our diverse business model positions us well to continue to capitalize on the growing needs of our market and to deliver sustainable long-term value to our shareholders."

Third Quarter 2022 Highlights

•Earnings per diluted share of $0.91 in 3Q22, up from $0.77 in 3Q21

•Operating (1) EPS of $0.49 in 3Q22, compared to $0.72 in 3Q21

•Pre-tax operating earnings of $74.3 million in 3Q22, compared to $119.3 million in 3Q21, reflecting: (i) lower variable investment income returns; (ii) unfavorable impacts to the fixed index annuity margin from market volatility; and (iii) higher expenses related to continued investment in growth initiatives

•Total new annualized premiums (NAP) (4) up 3% from 3Q21

•Direct-to-consumer life insurance NAP (4) up 4% from 3Q21

•Worksite Division NAP (4) up 33% from 3Q21

•Annuity collected premiums up 11% from 3Q21

•Returned $26.1 million to shareholders in the form of share repurchases ($10.0 million) and dividends ($16.1 million); reduced weighted average share count by 10% since 3Q21

•Estimated consolidated risk-based capital ratio of 375% at September 30, 2022

•Return on equity (ROE) of 13.0%; operating ROE, as adjusted (6), of 10.2%

•Book value per share was $11.35; book value per diluted share, excluding accumulated other comprehensive loss (2), was $29.87

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Per diluted share

Quarter endedQuarter ended

September 30,September 30,

20222021% change20222021% change

Income from insurance products (b) $0.49 $0.64 (23)$56.8 $83.1 (32)

Fee income0.01 0.02 (50)1.4 2.6 (46)

Investment income not allocated to product lines (c) 0.28 0.40 (30)32.2 50.9 (37)

Expenses not allocated to product lines (d) (0.14)(0.13)8 (16.1)(17.3)(7)

Operating earnings before taxes0.64 0.93 74.3 119.3

Income tax expense on operating income(0.15)(0.21)(29)(17.4)(26.5)(34)

Net operating income (1)0.49 0.72 (32)56.9 92.8 (39)

Net realized investment gains (losses) from sales and change in allowance for credit losses (net of related amortization)— 0.02 (0.1)2.2

Net change in market value of investments recognized in earnings(0.15)(0.04)(17.0)(4.6)

Fair value changes in embedded derivative liabilities (net of related amortization)0.57 0.09 66.0 10.9

Other0.12 — 14.0 0.2

Non-operating income before taxes0.54 0.07 62.9 8.7

Income tax expense on non-operating income(0.12)(0.02)(14.8)(1.7)

Net non-operating income0.42 0.05 48.1 7.0

Net income$0.91 $0.77 $105.0 $99.8

Weighted average diluted shares outstanding115.9 129.0

(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, investment income not allocated to product lines, expenses not allocated to product lines 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

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Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Second Quarter 2022 Results

Strong second quarter with earnings per share up 100% and operating earnings per share up 29%

Carmel, Ind., August 1, 2022 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended June 30, 2022, net income was $136.1 million, or $1.16 per diluted share, compared to $78.0 million, or $0.58 per diluted share, in 2Q21. Net operating income (1) in 2Q22 was $100.1 million, or $0.85 per diluted share, compared to $89.1 million, or $0.66 per diluted share, in 2Q21.

"CNO posted another quarter of strong earnings," said Gary C. Bhojwani, chief executive officer. "Our annuities, direct-to-consumer and worksite businesses performed well in the quarter. We also saw a sharp increase in new money rates, signaling a positive trend in our earned yields. CNO’s balance sheet is solid, and we remain well-positioned to continue navigating the current economic uncertainty from a position of strength."

Second Quarter 2022 Highlights

•Earnings per diluted share of $1.16 in 2Q22, up from $0.58 in 2Q21

•Operating (1) EPS of $0.85 in 2Q22, up 29% from 2Q21; up 3% excluding significant items in 2Q22 and 2Q21

•Net investment income up 8% from 2Q21

•Total new annualized premiums (NAP) (4) down 5% from 2Q21

•Direct-to-consumer life insurance NAP (4) up 9% from 2Q21

•Worksite Division NAP (4) up 33% from 2Q21

•Annuity collected premiums up 26% from 2Q21

•Returned $76.5 million to shareholders in the form of share repurchases ($60.0 million) and dividends ($16.5 million); reduced weighted average share count by 12% since 2Q21

•Return on equity (ROE) of 10.3%; operating ROE, as adjusted (6), of 11.5%

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Per diluted share

Quarter endedQuarter ended

June 30,June 30,

20222021% change20222021% change

Income from insurance products (b) $0.47 $0.63 (25)$55.1 $85.0 (35)

Fee income0.03 0.05 (40)3.2 6.6 (52)

Investment income not allocated to product lines (c) 0.58 0.36 61 68.5 47.8 43

Expenses not allocated to product lines (d) 0.02 (0.18)(111)2.9 (23.8)(112)

Operating earnings before taxes1.10 0.86 129.7 115.6

Income tax expense on operating income(0.25)(0.20)25 (29.6)(26.5)12

Net operating income (1)0.85 0.66 29 100.1 89.1 12

Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses (net of related amortization)(0.22)0.18 (26.1)24.3

Net change in market value of investments recognized in earnings(0.19)0.04 (21.7)5.7

Fair value changes in embedded derivative liabilities (net of related amortization)0.68 (0.33)79.7 (44.9)

Other0.12 0.01 13.8 0.9

Non-operating income (loss) before taxes0.39 (0.10)45.7 (14.0)

Income tax benefit (expense) on non-operating income(0.08)0.02 (9.7)2.9

Net non-operating income (loss)0.31 (0.08)36.0 (11.1)

Net income$1.16 $0.58 $136.1 $78.0

Weighted average diluted shares outstanding117.3 133.8

(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; (iv) expenses related to the funding agreement-backed notes ("FABN") program; and (v) certain expenses related to benefit plans that are offset by special-purpose investment income.

(d)    Expenses not allocated to product lines in the second q

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Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports First Quarter 2022 Results

Solid production, agent productivity and capital return; $100 million in share repurchases

Carmel, Ind., May 2, 2022 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended March 31, 2022, net income was $112.3 million, or $0.93 per diluted share, compared to $147.4 million, or $1.08 per diluted share, in 1Q21. Net operating income (1) in 1Q22 was $51.1 million, or $0.42 per diluted share, compared to $75.2 million, or $0.55 per diluted share, in 1Q21.

"Our results in the first quarter continued to demonstrate the strength and resilience of our business," said Gary C. Bhojwani, chief executive officer. "From a production standpoint, we generated increases in four of our five growth scorecard metrics and delivered sharp improvement in agent productivity, while returning significant capital to our shareholders."

"Earnings were pressured by market volatility in the quarter and we saw several factors begin to normalize, including moderation in our alternative investment returns and a trend back toward pre-pandemic claims levels in certain of our healthcare products. Adjusting for these factors and an increase in non-deferrable advertising expense, our underlying margins and earnings remained stable."

"While economic uncertainty is likely to persist, CNO is well-positioned to navigate prevailing market conditions and capitalize on the growth opportunities in front of us."

First Quarter 2022 Highlights

•Earnings per diluted share of $0.93 in 1Q22, compared to $1.08 in 1Q21

•Operating (1) EPS of $0.42 in 1Q22, compared to $0.55 in 1Q21

•Pre-tax operating earnings of $68.0 million in 1Q22, compared to $96.9 million (or $104.7 million excluding significant items) in 1Q21, reflecting:

–$15 million decrease from moderating variable investment income returns

–$10 million unfavorable impact to fixed income annuity margin from market volatility

–$6 million decrease in net favorable COVID benefits

–$6 million increase in non-deferrable advertising spend

•Total new annualized premiums (NAP) (4) up 2% from 1Q21

•Direct-to-consumer life insurance NAP (4) up 16% from 1Q21

•Annuity collected premiums up 13% from 1Q21

•Returned $116.1 million to shareholders in the form of share repurchases ($100.0 million) and dividends ($16.1 million); reduced weighted average share count by 11% since 1Q21

•Book value per share was $31.48, down 14% from 1Q21; book value per diluted share, excluding accumulated other comprehensive income (2), was $27.70, up 12% from 1Q21

•Return on equity (ROE) of 8.1%; operating ROE, as adjusted (6), of 11.2%

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Per diluted share

Quarter endedQuarter ended

March 31,March 31,

20222021% change20222021% change

Income from insurance products (b) $0.37 $0.50 (26)$44.4 $68.6 (35)

Fee income0.08 0.05 60 9.9 7.3 36

Investment income not allocated to product lines (c) 0.23 0.32 (28)28.5 43.0 (34)

Expenses not allocated to product lines(0.12)(0.16)(25)(14.8)(22.0)(33)

Operating earnings before taxes0.56 0.71 68.0 96.9

Income tax expense on operating income(0.14)(0.16)(13)(16.9)(21.7)(22)

Net operating income (1)0.42 0.55 (24)51.1 75.2 (32)

Net realized investment gains from sales, impairments and change in allowance for credit losses (net of related amortization)(0.06)0.03 (7.1)3.6

Net change in market value of investments recognized in earnings(0.21)(0.05)(25.5)(6.4)

Fair value changes in embedded derivative liabilities (net of related amortization)0.75 0.60 90.8 82.1

Other0.19 0.10 23.1 13.8

Non-operating income before taxes0.67 0.68 81.3 93.1

Income tax expense on non-operating income(0.16)(0.15)(20.1)(20.9)

Net non-operating income0.51 0.53 61.2 72.2

Net income$0.93 $1.08 $112.3 $147.4

Weighted average diluted shares outstanding121.0 136.7

(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 e

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Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Fourth Quarter and Full Year 2021 Results

Strong fourth quarter and full year results; double-digit EPS growth; record 2021 share repurchases

Carmel, Ind., February 8, 2022 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ended December 31, 2021, net income was $115.8 million, or $0.93 per diluted share, compared to net income of $111.8 million, or $0.80 per diluted share, in 4Q20. Net operating income (1) in 4Q21 was $108.5 million, or $0.87 per diluted share, compared to $86.0 million, or $0.61 per diluted share, in 4Q20.

Net income for the year ended December 31, 2021 was $441.0 million, or $3.36 per diluted share, compared to $301.8 million, or $2.11 per diluted share, in 2020. Net operating income (1) for the year ended December 31, 2021 was $365.6 million, or $2.79 per diluted share, compared to $362.3 million, or $2.53 per diluted share, in 2020.

"Solid fourth quarter results capped off another strong year, demonstrating CNO's continued agility navigating the pandemic and the successful execution of our strategic priorities," said Gary C. Bhojwani, chief executive officer. "While visibility into COVID's ongoing impact on our business remains unclear, the dedication of our associates and agents and the strength of our model will enable us to continue to drive value for all of the constituents we serve."

Full Year 2021 Highlights

•Earnings per diluted share of $3.36, up 59% compared to 2020

•Operating (1) EPS of $2.79, up 10% from 2020

•Total new annualized premiums (NAP) (4) up 9% from 2020

•Direct-to-consumer life insurance NAP (4) up 16% from 2020, exceeding $100 million for first time, up 40% from 2019

•Annuity collected premiums up 20% from 2020

•Returned $468.1 million to shareholders in the form of share repurchases (a record $402.4 million) and dividends ($65.7 million)

•Return on equity (ROE) of 8.5%; operating ROE, as adjusted (6), of 12.1%

Fourth Quarter 2021 Highlights

•Earnings per diluted share of $0.93 in 4Q21, up 16% compared to 4Q20

•Operating (1) EPS of $0.87 in 4Q21, up 43% compared to 4Q20

•Total NAP (4) up 2% from 4Q20

•Direct-to-consumer life insurance NAP (4) up 21% from 4Q20

•Annuity collected premiums up 15% from 4Q20

•Returned $115.7 million to shareholders in the form of share repurchases ($100.0 million) and dividends ($15.7 million); reduced weighted average share count by 11% since 4Q20

•Book value per share was $43.69, up 8% from 4Q20; book value per diluted share, excluding accumulated other comprehensive income (2), was $26.86, up 12% from 4Q20

FINANCIAL SUMMARY

Quarter End

(Amounts in millions, except per share data)

(Unaudited)

Net operating income, a non-GAAP(a) financial measure, is used consistently by CNO’s management to evaluate the operating performance of the Company and is a measure commonly used in the life insurance industry. It differs from net income primarily because it excludes certain non-operating items such as net investment gains (losses), changes in fair values of embedded derivatives and the liability for a deferred compensation plan, and certain significant and unusual items included in net income. Management believes an analysis of net operating income is important in understanding the profitability and operating trends of the Company’s business. Net income is the most directly comparable GAAP measure.

Per diluted share

Quarter endedQuarter ended

December 31,December 31,

20212020% change20212020% change

Income from insurance products (b) $0.89 $0.48 85 $110.5 $67.9 63

Fee income0.02 0.02 — 2.9 2.9 —

Investment income not allocated to product lines (c) 0.34 0.41 (17)42.8 57.8 (26)

Expenses not allocated to product lines(0.14)(0.12)17 (17.4)(17.8)(2)

Operating earnings before taxes1.11 0.79 138.8 110.8

Income tax expense on operating income(0.24)(0.18)33 (30.3)(24.8)22

Net operating income (1)0.87 0.61 43 108.5 86.0 26

Net realized investment gains from sales, impairments and change in allowance for credit losses (net of related amortization)0.04 0.09 4.7 12.6

Net change in market value of investments recognized in earnings(0.10)0.04 (12.1)6.0

Fair value changes in embedded derivative liabilities (net of related amortization)0.15 0.12 19.1 16.3

Other(0.02)(0.01)(2.4)(2.2)

Non-operating income before taxes0.07 0.24 9.3 32.7

Income tax expense on non-operating income(0.01)(0.05)(2.0)(6.9)

Net non-operating income0.06 0.19 7.3 25.8

Net income$0.93 $0.80 $115.8 $111.8

Weighted average diluted shares outstanding125.0 140.4

2

FINANCIAL SUMMARY

Year End

(Amounts in millions, except per share data)

(Unaudited)

Per diluted share

Year endedYear ended

December 31,December 31,

20212020% change20212020% change

Income from insurance products (b) $2.65 $2.54 4 $347.2 $363.8 (5)

Fee income0.15 0.11 36 19.4 16.7 16

Investment income not allocated to

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EX-99.1

Document

Exhibit 99.1

News

For Immediate Release

CNO Financial Group Reports Third Quarter 2021 Results

Solid third quarter performance; sales and collected premiums exceed pre-pandemic levels;

completed $115 million in share repurchases

Carmel, Ind., October 27, 2021 - CNO Financial Group, Inc. (NYSE: CNO) today announced that for the quarter ending September 30, 2021, net income was $99.8 million, or $0.77 per diluted share, compared to a net income of $129.2 million, or $0.91 per diluted share, in 3Q20. Net operating income (1) in 3Q21 was $92.8 million, or $0.72 per diluted share, compared to $112.6 million, or $0.79 per diluted share, in 3Q20.

"CNO reported another successful quarter," said Gary C. Bhojwani, chief executive officer. "We continue to benefit from the outstanding work and customer commitment of our associates and agents. Our results reflect the consistent execution of our strategy, particularly within our direct-to-consumer business. Earnings continued to benefit from deferral of care within our health lines and very strong alternative investment performance. We approach the end of the year on solid footing and remain well-positioned to serve our clients and communities, and generate value for our shareholders."

Third Quarter 2021 Highlights

•Earnings per diluted share of $0.77 in 3Q21, down $0.14 compared to 3Q20

•Operating (1) EPS of $0.72 in 3Q21, down $0.07 compared to 3Q20, consistent with the reduced net favorable impacts from COVID-19

•Favorable COVID-19 impact on insurance product margins of $18.0 million after-tax, or $0.14 per diluted share, in 3Q21, down $15 million, or $0.09 per diluted share, compared to 3Q20

•Direct-to-consumer life insurance new annualized premiums (NAP) (4) up 13% from 3Q20, up 38% from 3Q19

•Annuity collected premiums up 17% from 3Q20, up 2% from 3Q19

•Returned $131.3 million to shareholders in the form of share repurchases ($115.0 million) and dividends ($16.3 million); reduced weighted average share count by 9% since 3Q20

•Book value per share was $42.11, up 15% from 3Q20; book value per diluted share, excluding accumulated other comprehensive income (2), was $26.03, up 11% from 3Q20

•Return on equity (ROE) of 8.4%; operating ROE, as adjusted (6), of 11.5%

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

September 30,September 30,

20212020% change20212020% change

Income from insurance products (b) $0.64 $0.81 (21)$83.1 $114.5 (27)

Fee income0.02 — — 2.6 0.8 225

Investment income not allocated to product lines (c) 0.40 0.31 29 50.9 43.7 16

Expenses not allocated to product lines(0.13)(0.10)(30)(17.3)(13.7)(26)

Operating earnings before taxes0.93 1.02 119.3 145.3

Income tax expense on operating income(0.21)(0.23)(9)(26.5)(32.7)(19)

Net operating income (1)0.72 0.79 (9)92.8 112.6 (18)

Net realized investment gains from sales, impairments and change in allowance for credit losses (net of related amortization)0.02 0.05 2.2 7.7

Net change in market value of investments recognized in earnings(0.04)0.06 (4.6)8.5

Fair value changes in embedded derivative liabilities (net of related amortization)0.09 (0.01)10.9 (1.6)

Other— 0.05 0.2 6.5

Non-operating income before taxes0.07 0.15 8.7 21.1

Income tax expense on non-operating income(0.02)(0.03)(1.7)(4.5)

Net non-operating income0.05 0.12 7.0 16.6

Net income$0.77 $0.91 $99.8 $129.2

Weighted average diluted shares outstanding129.0 141.7

(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 no