August 2023 Investor Overview Presentation
Investor Overview
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Important Legal Information
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
Non-GAAP Measures
This presentation contains financial measures that differ from the comparable measures under Generally Accepted Accounting Principles (GAAP). Reconciliations between those non-GAAP measures and the comparable GAAP measures are included in the Appendix, or on the page such measure is presented.
While management believes the measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered substitutes for the most directly comparable GAAP measures.
Additional information concerning non-GAAP measures is included in our periodic filings with the
Adoption of New Accounting Standard
Effective
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CNO Financial Group Overview
Focused on serving the protection needs of the fast-growing but underserved middle-income American market
- Manufactured products include life, fixed annuities, Medicare supplement, supplemental health and limited benefit duration long-term care (LTC)
- Distribution of third-party products, which primarily include Medicare Advantage and Prescription Drug Plans
- Demonstrated growth in premiums and third-party fees
2Q23 Average Liabilities by
Insurance Product**
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Interest sensitive life |
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2Q23 LTM Collected Premium |
2Q23 LTM Insurance Margin |
5% |
Medicare supplement |
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1% |
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by Product* |
by Product* |
Traditional |
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Life |
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10% |
Supplemental health |
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Life |
Life |
16% |
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23% |
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Supp |
22% |
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Supp |
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Long-term care |
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Health |
Health |
Health |
15% |
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Health |
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39% |
16% |
17% |
53% |
LTC |
26% |
Fixed indexed |
13% |
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Annuities |
LTC |
Annuities |
annuities |
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12% |
45% |
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38% |
25% |
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6% |
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Other annuities |
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2% |
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Fixed interest |
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annuities |
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* Life, health and annuity products. |
8% |
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- Net insurance liabilities are equal to: (i) policyholder account balances for annuity products; (ii) total reserves before the fair value adjustments reflected in accumulated other comprehensive income (loss), if applicable, for all other products; less (iii) amounts related to reinsurance business; (iv) deferred acquisition costs; (v) the present value of future profits; and (vi) the value of unexpired options credited to insurance liabilities.
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What Makes CNO Different
Exclusive Focus on
Middle-Income America
Our Diverse Distribution and
Integrated Approach
Health and Wealth Solutions
Insurance and Securities
Solutions
Strong Cash Flow Generation
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Well-Positioned in the Attractive Senior Middle Market
~45% of middle-income households have no life insurance1; ~55% of baby boomers lack financial advisors2
Percentage of Population Age 65+
without a Financial Product3,4
CNO Solutions
Annuities
401(k), 403(b), or other
employer-sponsored retirement account
LTC
Med Supplement or
Med Advantage
75%
73%
71%
38%
- Extensive experience and understanding of the middle market
- Differentiated with our market vs. product focus
- Diversification of products and distribution provides sustainable competitive advantage
- Positioned to help customers to address main concerns of outliving their assets and dealing with rising healthcare costs as they age
- LIMRA 2021 Barometer Study
- 2021 Forrester Analytics Technographics
- LIMRA 2021 Consumer Perspective on Long Term Care and Insurance; includes all age ranges, not just 65+
Medicare Market Competition ,Mark Farrah 2020, Year Over Year Medicare Supplement Market Snapshot and Plan Performance Insight,Mark Farrah 2021; includes people who are eligible for Medicare due to disability, not just 65+
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Attachments
Disclaimer



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