EX-99.4 5 exhibit994-12312022investo.htm EX-99.4 Document

Exhibit 99.4




cnologosupp.jpg


Quarterly Financial Supplement - 4Q2022 as Recast to Reflect the Adoption of ASU 2018-12
The information in this recast quarterly financial supplement is unaudited and is being provided to aid users of our financial statements in understanding the impacts of adopting ASU 2018-12 related to targeted improvements to the accounting for long-duration insurance contracts. It is possible that the financial results included in our future filings with the Securities and Exchange Commission may differ, perhaps materially, from the information presented herein.
May 1, 2023

Page 1

Table of ContentsPage
Consolidated balance sheet3
Consolidated statement of operations4
Financial summary5
Insurance operations6
Margin from insurance products7-9
Collected premiums from annuity and interest sensitive life products and insurance policy income10
Health and life new annualized premiums11
Computation of weighted average shares outstanding12
Statutory information13
Investment income not allocated to product lines and investment income allocated to product lines14-17
Other investment data17
Significant items18-21
Notes22

Page 2

CNO FINANCIAL GROUP, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in millions)
(Unaudited)
Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22
Assets
Investments:
  Fixed maturities, available for sale, at fair value$22,610.4 $23,806.6 $24,142.0 $24,805.4 $23,479.4 $21,362.7 $20,301.1 $20,353.4 
  Equity securities at fair value164.4 149.3 146.4 131.1 91.0 136.9 135.8 135.3 
  Mortgage loans1,297.7 1,276.9 1,211.0 1,218.6 1,213.3 1,215.3 1,227.3 1,411.9 
  Policy loans121.0 120.3 119.7 120.2 119.5 119.5 120.2 121.6 
  Trading securities242.6 247.0 243.6 227.2 223.0 198.9 223.3 207.9 
  Investments held by variable interest entities1,224.0 1,233.5 1,221.3 1,199.6 1,180.8 1,107.7 1,099.2 1,077.6 
  Other invested assets1,195.1 1,226.0 1,172.6 1,224.0 1,121.8 1,086.6 1,028.6 1,034.7 
  Total investments26,855.2 28,059.6 28,256.6 28,926.1 27,428.8 25,227.6 24,135.5 24,342.4 
Cash and cash equivalents - unrestricted662.9 652.5 742.1 632.1 546.0 567.2 498.0 575.7 
Cash and cash equivalents held by variable interest entities76.0 62.3 70.5 99.6 48.0 52.2 55.5 69.2 
Accrued investment income216.8 210.7 218.1 216.4 227.9 224.1 236.0 235.6 
Present value of future profits251.9 244.5 237.4 230.1 223.2 216.4 210.0 203.7 
Deferred acquisition costs1,517.4 1,549.3 1,578.5 1,621.3 1,659.6 1,697.4 1,731.4 1,770.9 
Reinsurance receivables4,602.0 4,585.7 4,523.4 4,473.5 4,387.0 4,288.0 4,218.6 4,223.4 
Market risk benefit asset15.0 8.5 6.0 7.6 16.9 37.3 56.3 65.3 
Income tax assets, net759.0 694.6 494.3 550.2 773.1 951.9 1,023.9 1,063.4 
Assets held in separate accounts4.3 4.5 4.5 3.9 3.6 3.0 2.7 2.7 
Other assets567.1 564.0 554.8 519.1 671.0 566.9 552.2 580.8 
Total assets$35,527.6 $36,636.2 $36,686.2 $37,279.9 $35,985.1 $33,832.0 $32,720.1 $33,133.1 
Liabilities
Liabilities for insurance products:
  Policyholder account liabilities$12,502.2 $12,702.4 $12,905.8 $13,648.6 $14,725.6 $14,959.4 $15,079.7 $15,234.2 
  Future policy benefits14,352.1 15,031.7 14,826.5 14,685.8 13,206.1 11,784.9 10,815.5 11,240.2 
  Market risk benefit liability57.9 84.9 95.3 93.8 63.8 29.9 13.7 11.3 
  Liability for life insurance policy claims93.8 91.8 84.1 84.5 94.1 66.2 63.9 64.1 
  Unearned and advanced premiums262.4 255.8 247.5 246.7 250.0 243.4 238.2 235.0 
  Liabilities related to separate accounts4.3 4.5 4.5 3.9 3.6 3.0 2.7 2.7 
Other liabilities925.2 946.5 995.3 830.9 912.3 713.2 749.4 693.9 
Investment borrowings1,642.0 1,641.5 1,741.1 1,715.8 1,640.5 1,640.2 1,639.9 1,639.5 
Borrowings related to variable interest entities1,151.7 1,151.6 1,151.4 1,147.9 1,133.1 1,125.9 1,115.3 1,104.6 
Notes payable - direct corporate obligations1,136.6 1,136.9 1,137.0 1,137.3 1,137.6 1,138.0 1,138.4 1,138.8 
Total liabilities32,128.2 33,047.6 33,188.5 33,595.2 33,166.7 31,704.1 30,856.7 31,364.3 
Shareholders' equity
Common stock1.3 1.3 1.2 1.2 1.2 1.1 1.1 1.1 
Additional paid-in capital2,457.8 2,383.0 2,274.6 2,184.2 2,085.7 2,032.7 2,030.6 2,033.8 
Retained earnings867.2 897.6 984.4 1,125.6 1,293.0 1,509.9 1,669.5 1,691.2 
Total shareholders' equity before accumulated other comprehensive income (loss)3,326.3 3,281.9 3,260.2 3,311.0 3,379.9 3,543.7 3,701.2 3,726.1 
Accumulated other comprehensive income (loss)73.1 306.7 337.5 373.7 (561.5)(1,415.8)(1,837.8)(1,957.3)
Total shareholders' equity3,399.4 3,588.6 3,597.7 3,684.7 2,818.4 2,127.9 1,863.4 1,768.8 
Total liabilities and shareholders' equity$35,527.6 $36,636.2 $36,786.2 $37,279.9 $35,985.1 $33,832.0 $32,720.1 $33,133.1 
Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22
Book value per common share$25.70 $27.80 $28.95 $30.61 $24.04 $18.54 $16.29 $15.47 
Book value per common share, excluding accumulated other comprehensive income (loss) (1) (2)$25.15 $25.42 $26.23 $27.51 $28.83 $30.87 $32.36 $32.59 
Book value per diluted share (1) (3)$24.71 $24.95 $25.69 $26.85 $28.28 $30.50 $31.91 $31.89 
Page 3

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Revenues
Insurance policy income$632.4 $630.5 $630.6 $629.9 $2,523.4 $625.0 $625.6 $623.2 $626.0 $2,499.8 
Net investment income:
   General account assets282.7 282.1 289.5 285.9 1,140.2 277.5 317.7 289.0 294.8 1,179.0 
Policyholder and other special-purpose portfolios55.5 97.1 18.7 109.2 280.5 (69.3)(93.8)(20.9)20.9 (163.1)
Investment gains (losses):
Realized investment gains (losses)(6.0)17.1 3.7 6.5 21.3 18.8 (7.0)(8.2)(21.5)(17.9)
Other investment gains (losses)3.2 14.2 (6.0)(13.6)(2.2)(51.5)(41.8)(9.5)(14.7)(117.5)
Total investment gains (losses)(2.8)31.3 (2.3)(7.1)19.1 (32.7)(48.8)(17.7)(36.2)(135.4)
Fee revenue and other income38.2 32.1 31.8 56.9 159.0 42.4 54.3 31.7 68.1 196.5 
Total revenues1,006.0 1,073.1 968.3 1,074.8 4,122.2 842.9 855.0 905.3 973.6 3,576.8 
Benefits and expenses
Insurance policy benefits452.6 660.0 524.2 551.3 2,188.1 333.9 302.2 396.1 583.2 1,615.4 
Liability for future policy benefits remeasurement (gain) loss(16.5)— (9.0)(25.8)(51.3)7.0 0.3 (5.0)(17.9)(15.6)
Change in fair value of market risk benefits(70.7)31.2 14.4 2.0 (23.1)(32.7)(50.3)(34.9)(22.3)(140.2)
Interest expense24.1 24.0 23.7 23.6 95.4 23.8 27.8 37.6 47.8 137.0 
Amortization48.7 48.8 49.6 51.1 198.2 52.3 52.7 53.5 54.3 212.8 
Other operating costs and expenses231.2 246.2 232.8 271.6 981.8 218.3 222.5 230.1 280.0 950.9 
Total benefits and expenses669.4 1,010.2 835.7 873.8 3,389.1 602.6 555.2 677.4 925.1 2,760.3 
Income before income taxes336.6 62.9 132.6 201.0 733.1 240.3 299.8 227.9 48.5 816.5 
Income tax expense on period income74.6 15.2 29.2 43.8 162.8 56.9 66.5 52.0 10.5 185.9 
Net income$262.0 $47.7 $103.4 $157.2 $570.3 $183.4 $233.3 $175.9 $38.0 $630.6 


Page 4

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

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Insurance product margin (4)
Annuity margin$59.1 $60.0 $58.5 $65.6 $243.2 $55.9 $60.1 $60.1 $50.8 $226.9 
Health margin126.9 121.7 122.8 126.2 497.6 115.3 125.4 123.3 140.4 504.4 
Life margin48.1 50.3 60.8 53.4 212.6 36.0 70.2 55.7 43.3 205.2 
Total insurance product margin234.1 232.0 242.1 245.2 953.4 207.2 255.7 239.1 234.5 936.5 
Allocated expenses(141.1)(141.6)(140.5)(143.3)(566.5)(144.8)(152.2)(150.5)(149.1)(596.6)
Income from insurance products (5)93.0 90.4 101.6 101.9 386.9 62.4 103.5 88.6 85.4 339.9 
Fee income7.3 6.6 2.6 2.9 19.4 9.9 3.2 1.4 9.2 23.7 
Investment income not allocated to product lines (9)44.0 48.6 51.9 44.4 188.9 27.0 64.6 27.1 25.2 143.9 
Expenses not allocated to product lines(22.0)(23.8)(17.3)(17.4)(80.5)(14.8)2.9 (16.1)(12.8)(40.8)
Operating earnings before taxes122.3 121.8 138.8 131.8 514.7 84.5 174.2 101.0 107.0 466.7 
Income tax expense on operating income(27.1)(27.8)(30.7)(28.7)(114.3)(20.0)(39.1)(23.1)(24.1)(106.3)
Net operating income (10)95.2 94.0 108.1 103.1 400.4 64.5 135.1 77.9 82.9 360.4 
Net realized investment gains (losses) from sales, impairments and change in allowance for credit losses3.6 25.6 2.3 5.0 36.5 (7.2)(27.1)(0.7)(27.2)(62.2)
Net change in market value of investments recognized in earnings(6.4)5.7 (4.6)(12.1)(17.4)(25.5)(21.7)(17.0)(9.0)(73.2)
Fair value changes related to agent deferred compensation plan13.2 — — (4.3)8.9 22.7 14.0 12.0 0.2 48.9 
Changes in fair value of embedded derivative liabilities and market risk benefits203.3 (91.1)(4.1)78.7 186.8 165.4 160.6 130.6 (16.4)440.2 
Other0.6 0.9 0.2 1.9 3.6 0.4 (0.2)2.0 (6.1)(3.9)
Net non-operating income (loss) before taxes214.3 (58.9)(6.2)69.2 218.4 155.8 125.6 126.9 (58.5)349.8 
Income tax (expense) benefit on non-operating income (loss)(47.5)12.6 1.5 (15.1)(48.5)(36.9)(27.4)(28.9)13.6 (79.6)
Net non-operating income (loss)166.8 (46.3)(4.7)54.1 169.9 118.9 98.2 98.0 (44.9)270.2 
Net income$262.0 $47.7 $103.4 $157.2 $570.3 $183.4 $233.3 $175.9 $38.0 $630.6 
Per diluted share
Net operating income$0.70 $0.70 $0.84 $0.83 $3.05 $0.54 $1.15 $0.67 $0.71 $3.06 
Net non-operating income (loss)1.22 (0.34)(0.04)0.43 1.30 0.98 0.84 0.85 (0.38)2.30 
Net income$1.92 $0.36 $0.80 $1.26 $4.35 $1.52 $1.99 $1.52 $0.33 $5.36 


Page 5

CNO FINANCIAL GROUP, INC.
Insurance Operations
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Insurance product margin (4)
Annuity:
Insurance policy income$5.4 $4.3 $5.8 $4.1 $19.6 $5.0 $5.8 $6.3 $6.0 $23.1 
Net investment income (5) (6)117.2 116.6 117.0 118.1 468.9 117.5 117.8 121.1 123.6 480.0 
Insurance policy benefits(8.6)(7.5)(9.1)(3.2)(28.4)(9.5)(6.8)(6.5)(15.5)(38.3)
Interest credited (6)(42.2)(40.3)(41.3)(39.1)(162.9)(42.5)(41.4)(44.8)(46.8)(175.5)
Amortization and non-deferred commissions(12.7)(13.1)(13.9)(14.3)(54.0)(14.6)(15.3)(16.0)(16.5)(62.4)
Annuity margin59.1 60.0 58.5 65.6 243.2 55.9 60.1 60.1 50.8 226.9 
Health:
Insurance policy income416.5 415.4 414.4 415.2 1,661.5 406.7 403.5 403.5 403.6 1,617.3 
Net investment income (5)72.9 73.1 73.6 73.9 293.5 73.3 73.0 73.3 73.7 293.3 
Insurance policy benefits(321.5)(326.2)(323.3)(318.1)(1,289.1)(323.1)(309.9)(310.8)(293.7)(1,237.5)
Amortization and non-deferred commissions(41.0)(40.6)(41.9)(44.8)(168.3)(41.6)(41.2)(42.7)(43.2)(168.7)
Health margin126.9 121.7 122.8 126.2 497.6 115.3 125.4 123.3 140.4 504.4 
Life:
Insurance policy income210.5 210.8 210.4 210.6 842.3 213.3 216.3 213.4 216.4 859.4 
Net investment income (5) (7)35.7 35.8 36.0 35.7 143.2 35.5 35.2 35.4 35.8 141.9 
Insurance policy benefits(146.7)(142.5)(136.6)(141.7)(567.5)(153.1)(127.7)(138.7)(155.8)(575.3)
Interest credited (7)(11.0)(11.2)(11.5)(12.1)(45.8)(12.0)(11.7)(12.6)(12.7)(49.0)
Amortization and non-deferred commissions(17.1)(17.6)(17.8)(17.3)(69.8)(18.4)(19.3)(19.7)(20.1)(77.5)
Advertising expense(23.3)(25.0)(19.7)(21.8)(89.8)(29.3)(22.6)(22.1)(20.3)(94.3)
Life margin48.1 50.3 60.8 53.4 212.6 36.0 70.2 55.7 43.3 205.2 
Total insurance product margin234.1 232.0 242.1 245.2 953.4 207.2 255.7 239.1 234.5 936.5 
Allocated expenses:
Branch office expenses(18.5)(16.2)(14.8)(13.0)(62.5)(18.1)(15.4)(16.5)(12.3)(62.3)
Other allocated expenses(122.6)(125.4)(125.7)(130.3)(504.0)(126.7)(136.8)(134.0)(136.8)(534.3)
Income from insurance products (8)93.0 90.4 101.6 101.9 386.9 62.4 103.5 88.6 85.4 339.9 
Fee income7.3 6.6 2.6 2.9 19.4 9.9 3.2 1.4 9.2 23.7 
Investment income not allocated to product lines (9)44.0 48.6 51.9 44.4 188.9 27.0 64.6 27.1 25.2 143.9 
Expenses not allocated to product lines(22.0)(23.8)(17.3)(17.4)(80.5)(14.8)2.9 (16.1)(12.8)(40.8)
Operating earnings before taxes122.3 121.8 138.8 131.8 514.7 84.5 174.2 101.0 107.0 466.7 
Income tax expense on operating income(27.1)(27.8)(30.7)(28.7)(114.3)(20.0)(39.1)(23.1)(24.1)(106.3)
Net operating income (10)$95.2 $94.0 $108.1 $103.1 $400.4 $64.5 $135.1 $77.9 $82.9 $360.4 
Page 6

CNO FINANCIAL GROUP, INC.
Margin from Annuity Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Annuity margin (4):
Fixed indexed annuities
Insurance policy income$3.0 $3.3 $3.3 $3.2 $12.8 $3.0 $3.7 $3.6 $4.2 $14.5 
Net investment income (5) (6)86.4 86.6 87.8 89.4 350.2 90.1 91.4 95.0 97.3 373.8 
Insurance policy benefits(1.2)(2.4)(2.8)(3.5)(9.9)(4.6)(3.1)(2.0)(10.3)(20.0)
Interest credited (6)(28.4)(26.8)(28.0)(26.3)(109.5)(30.4)(29.5)(33.0)(34.6)(127.5)
Amortization and non-deferred commissions(11.3)(11.9)(12.5)(12.9)(48.6)(13.3)(14.1)(14.7)(15.3)(57.4)
Margin from fixed indexed annuities$48.5 $48.8 $47.8 $49.9 $195.0 $44.8 $48.4 $48.9 $41.3 $183.4 
Average net insurance liabilities (11)$7,597.5 $7,796.1 $8,016.5 $8,252.6 $7,915.7 $8,486.3 $8,711.0 $8,902.9 $9,054.2 $8,788.6 
Margin/average net insurance liabilities (12)2.55 %2.50 %2.39 %2.42 %2.46 %2.11 %2.22 %2.20 %1.82 %2.09 %
Fixed interest annuities
Insurance policy income$0.2 $0.1 $0.3 $0.2 $0.8 $0.1 $0.3 $0.2 $0.2 $0.8 
Net investment income (5)24.4 23.7 23.0 22.5 93.6 21.5 20.6 20.3 20.6 83.0 
Insurance policy benefits(0.7)0.2 (0.2)(0.4)(1.1)(0.4)(0.6)0.1 (0.2)(1.1)
Interest credited(13.2)(12.8)(12.7)(12.2)(50.9)(11.5)(11.3)(11.2)(11.7)(45.7)
Amortization and non-deferred commissions(1.3)(1.2)(1.3)(1.2)(5.0)(1.2)(1.1)(1.2)(1.1)(4.6)
Margin from fixed interest annuities$9.4 $10.0 $9.1 $8.9 $37.4 $8.5 $7.9 $8.2 $7.8 $32.4 
Average net insurance liabilities (11)$1,951.3 $1,898.7 $1,854.9 $1,812.3 $1,879.3 $1,761.2 $1,712.5 $1,675.9 $1,652.6 $1,700.5 
Margin/average net insurance liabilities (12)1.93 %2.11 %1.96 %1.96 %1.99 %1.93 %1.85 %1.96 %1.89 %1.91 %
Other annuities
Insurance policy income$2.2 $0.9 $2.2 $0.7 $6.0 $1.9 $1.8 $2.5 $1.6 $7.8 
Net investment income (5)6.4 6.3 6.2 6.2 25.1 5.9 5.8 5.8 5.7 23.2 
Insurance policy benefits(6.7)(5.3)(6.1)0.7 (17.4)(4.5)(3.1)(4.6)(5.0)(17.2)
Interest credited(0.6)(0.7)(0.6)(0.6)(2.5)(0.6)(0.6)(0.6)(0.5)(2.3)
Amortization and non-deferred commissions(0.1)— (0.1)(0.2)(0.4)(0.1)(0.1)(0.1)(0.1)(0.4)
Margin from other annuities$1.2 $1.2 $1.6 $6.8 $10.8 $2.6 $3.8 $3.0 $1.7 $11.1 
Average net insurance liabilities (11)$514.6 $509.0 $503.7 $497.8 $506.3 $490.2 $484.2 $478.8 $473.6 $481.7 
Margin/average net insurance liabilities (12)0.93 %0.94 %1.27 %5.46 %2.13 %2.12 %3.14 %2.51 %1.44 %2.30 %
Total annuity margin$59.1 $60.0 $58.5 $65.6 $243.2 $55.9 $60.1 $60.1 $50.8 $226.9 
Average net insurance liabilities (11)$10,063.4 $10,203.8 $10,375.1 $10,562.7 $10,301.3 $10,737.7 $10,907.7 $11,057.6 $11,180.4 $10,970.8 
Margin/average net insurance liabilities (12)2.35 %2.35 %2.26 %2.48 %2.36 %2.08 %2.20 %2.17 %1.82 %2.07 %
Page 7

CNO FINANCIAL GROUP, INC.
Margin from Health Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Health margin (4):
Supplemental health
Insurance policy income$169.8 $170.0 $171.2 $172.8 $683.8 $173.5 $172.0 $173.5 $175.3 $694.3 
Net investment income (5)36.1 36.2 36.9 37.2 146.4 37.4 37.6 37.7 38.2 150.9 
Insurance policy benefits(128.0)(128.6)(126.5)(125.8)(508.9)(129.3)(128.1)(125.8)(125.6)(508.8)
Amortization and non-deferred commissions(25.1)(25.0)(26.4)(27.9)(104.4)(25.5)(25.5)(26.9)(27.6)(105.5)
Margin from supplemental health$52.8 $52.6 $55.2 $56.3 $216.9 $56.1 $56.0 $58.5 $60.3 $230.9 
Margin/insurance policy income31 %31 %32 %33 %32 %32 %33 %34 %34 %33 %
Medicare supplement
Insurance policy income$181.0 $179.7 $177.4 $176.0 $714.1 $166.8 $165.1 $163.6 $162.3 $657.8 
Net investment income (5)1.3 1.4 1.2 1.4 5.3 1.3 1.4 1.4 1.3 5.4 
Insurance policy benefits(133.6)(126.5)(125.3)(120.8)(506.2)(120.5)(114.1)(113.9)(113.4)(461.9)
Amortization and non-deferred commissions(12.5)(12.3)(12.4)(13.5)(50.7)(13.0)(12.6)(12.4)(12.3)(50.3)
Margin from Medicare supplement$36.2 $42.3 $40.9 $43.1 $162.5 $34.6 $39.8 $38.7 $37.9 $151.0 
Margin/insurance policy income20 %24 %23 %24 %23 %21 %24 %24 %23 %23 %
Long-term care
Insurance policy income$65.7 $65.7 $65.8 $66.4 $263.6 $66.4 $66.4 $66.4 $66.0 $265.2 
Net investment income (5)35.5 35.5 35.5 35.3 141.8 34.6 34.0 34.2 34.2 137.0 
Insurance policy benefits(59.9)(71.1)(71.5)(71.5)(274.0)(73.3)(67.7)(71.1)(54.7)(266.8)
Amortization and non-deferred commissions(3.4)(3.3)(3.1)(3.4)(13.2)(3.1)(3.1)(3.4)(3.3)(12.9)
Margin from long-term care$37.9 $26.8 $26.7 $26.8 $118.2 $24.6 $29.6 $26.1 $42.2 $122.5 
Margin/insurance policy income58 %41 %41 %40 %45 %37 %45 %39 %64 %46 %
Total health margin$126.9 $121.7 $122.8 $126.2 $497.6 $115.3 $125.4 $123.3 $140.4 $504.4 
Margin/insurance policy income30 %29 %30 %30 %30 %28 %31 %31 %35 %31 %
Page 8

CNO FINANCIAL GROUP, INC.
Margin from Life Products
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Life margin (4):
Interest sensitive life
Insurance policy income$40.8 $41.4 $42.3 $42.6 $167.1 $43.1 $43.8 $43.5 $44.2 $174.6 
Net investment income (5) (7)12.4 12.4 12.6 12.8 50.2 13.0 12.8 12.9 12.9 51.6 
Insurance policy benefits(22.7)(20.0)(17.4)(22.5)(82.6)(21.2)(15.8)(20.5)(17.7)(75.2)
Interest credited (7)(10.9)(11.0)(11.3)(11.9)(45.1)(11.9)(11.5)(12.4)(12.5)(48.3)
Amortization and non-deferred commissions(5.9)(5.9)(5.9)(5.6)(23.3)(5.7)(5.9)(5.9)(5.7)(23.2)
Margin from interest sensitive life$13.7 $16.9 $20.3 $15.4 $66.3 $17.3 $23.4 $17.6 $21.2 $79.5 
Average net insurance liabilities (11)$954.8 $969.9 $983.1 $995.3 $975.8 $1,009.4 $1,016.4 $1,019.2 $1,026.9 $1,018.0 
Interest margin$1.5 $1.4 $1.3 $0.9 $5.1 $1.1 $1.3 $0.5 $0.4 $3.3 
Interest margin/average net insurance liabilities (12)0.63 %0.58 %0.53 %0.36 %0.52 %0.44 %0.51 %0.20 %0.16 %0.32 %
Underwriting margin$12.2 $15.5 $19.0 $14.5 $61.2 $16.2 $22.1 $17.1 $20.8 $76.2 
Underwriting margin/insurance policy income30 %37 %45 %34 %37 %38 %50 %39 %47 %44 %
Traditional life
Insurance policy income$169.7 $169.4 $168.1 $168.0 $675.2 $170.2 $172.5 $169.9 $172.2 $684.8 
Net investment income (5)23.3 23.4 23.4 22.9 93.0 22.5 22.4 22.5 22.9 90.3 
Insurance policy benefits(124.0)(122.5)(119.2)(119.2)(484.9)(131.9)(111.9)(118.2)(138.1)(500.1)
Interest credited(0.1)(0.2)(0.2)(0.2)(0.7)(0.1)(0.2)(0.2)(0.2)(0.7)
Amortization and non-deferred commissions(11.2)(11.7)(11.9)(11.7)(46.5)(12.7)(13.4)(13.8)(14.4)(54.3)
Advertising expense(23.3)(25.0)(19.7)(21.8)(89.8)(29.3)(22.6)(22.1)(20.3)(94.3)
Margin from traditional life$34.4 $33.4 $40.5 $38.0 $146.3 $18.7 $46.8 $38.1 $22.1 $125.7 
Margin/insurance policy income20 %20 %24 %23 %22 %11 %27 %22 %13 %18 %
Margin excluding advertising expense/insurance policy income34 %34 %36 %36 %35 %28 %40 %35 %25 %32 %
Total life margin$48.1 $50.3 $60.8 $53.4 $212.6 $36.0 $70.2 $55.7 $43.3 $205.2 



Page 9

CNO FINANCIAL GROUP, INC.
Collected Premiums From Annuity and Interest Sensitive Life Products
and Insurance Policy Income
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Collected premiums from annuity and interest-sensitive life products:
Annuities$325.4 $344.3 $333.3 $397.4 $1,400.4 $368.6 $435.0 $370.0 $431.0 $1,604.6 
Interest-sensitive life54.5 54.6 54.4 55.9 219.4 56.6 56.6 56.6 58.1 227.9 
Total collected premiums from annuity and interest-sensitive life products$379.9 $398.9 $387.7 $453.3 $1,619.8 $425.2 $491.6 $426.6 $489.1 $1,832.5 
Insurance policy income:
Annuity products
Fixed indexed annuities$3.0 $3.3 $3.3 $3.2 $12.8 $3.0 $3.7 $3.6 $4.2 $14.5 
Fixed interest annuities0.2 0.1 0.3 0.2 0.8 0.1 0.3 0.2 0.2 0.8 
Other annuities2.2 0.9 2.2 0.7 6.0 1.9 1.8 2.5 1.6 7.8 
Total annuity insurance policy income5.4 4.3 5.8 4.1 19.6 5.0 5.8 6.3 6.0 23.1 
Health products
Supplemental health169.8 170.0 171.2 172.8 683.8 173.5 172.0 173.5 175.3 694.3 
Medicare supplement181.0 179.7 177.4 176.0 714.1 166.8 165.1 163.6 162.3 657.8 
Long-term care65.7 65.7 65.8 66.4 263.6 66.4 66.4 66.4 66.0 265.2 
Total health insurance policy income416.5 415.4 414.4 415.2 1,661.5 406.7 403.5 403.5 403.6 1,617.3 
Life products
Interest-sensitive life 40.8 41.4 42.3 42.6 167.1 43.1 43.8 43.5 44.1 174.5 
Traditional life 169.7 169.4 168.1 168.0 675.2 170.2 172.5 169.9 172.3 684.9 
Total life insurance policy income210.5 210.8 210.4 210.6 842.3 213.3 216.3 213.4 216.4 859.4 
Total insurance policy income$632.4 $630.5 $630.6 $629.9 $2,523.4 $625.0 $625.6 $623.2 $626.0 $2,499.8 


Page 10

CNO FINANCIAL GROUP, INC.
Health and Life
New Annualized Premiums ("NAP")
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Consumer Division
Health products:
Supplemental health$14.4 $20.1 $15.8 $19.6 $69.9 $15.5 $16.7 $19.3 $24.6 $76.1 
Medicare supplement8.2 8.8 8.0 9.1 34.1 6.5 6.9 8.0 10.4 31.8 
Long-term care6.4 7.0 8.8 10.5 32.7 6.8 6.1 6.0 6.2 25.1 
Total Consumer Division health NAP29.0 35.9 32.6 39.2 136.7 28.8 29.7 33.3 41.2 133.0 
Life products:
Interest sensitive life5.9 6.5 5.4 6.1 23.9 5.1 4.8 4.6 4.4 18.9 
Traditional life45.9 43.9 38.2 31.2 159.2 48.2 44.3 38.2 33.2 163.9 
Total Consumer Division life NAP51.8 50.4 43.6 37.3 183.1 53.3 49.1 42.8 37.6 182.8 
Total Consumer Division health and life NAP$80.8 $86.3 $76.2 $76.5 $319.8 $82.1 $78.8 $76.1 $78.8 $315.8 
Worksite Division
Health products:
Supplemental health$6.7 $5.6 $6.6 $8.5 $27.4 $6.0 $7.7 $8.9 $8.7 $31.3 
Life products:
Interest sensitive life1.2 1.9 1.8 2.5 7.4 2.5 2.3 2.3 3.2 10.3 
Total Worksite Division health and life NAP$7.9 $7.5 $8.4 $11.0 $34.8 $8.5 $10.0 $11.2 $11.9 $41.6 
Total NAP (both divisions)
Health products:
Supplemental health$21.1 $25.7 $22.4 $28.1 $97.3 $21.5 $24.4 $28.2 $33.3 $107.4 
Medicare supplement8.2 8.8 8.0 9.1 34.1 6.5 6.9 8.0 10.4 31.8 
Long-term care6.4 7.0 8.8 10.5 32.7 6.8 6.1 6.0 6.2 25.1 
Total health NAP35.7 41.5 39.2 47.7 164.1 34.8 37.4 42.2 49.9 164.3 
Life products:
Interest sensitive life 7.1 8.4 7.2 8.6 31.3 7.6 7.1 6.9 7.6 29.2 
Traditional life 45.9 43.9 38.2 31.2 159.2 48.2 44.3 38.2 33.2 163.9 
Total life NAP53.0 52.3 45.4 39.8 190.5 55.8 51.4 45.1 40.8 193.1 
Total NAP$88.7 $93.8 $84.6 $87.5 $354.6 $90.6 $88.8 $87.3 $90.7 $357.4 

Page 11

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Basic
Shares outstanding, beginning of period135,279.1 132,268.3 129,105.0 124,269.9 135,279.1 120,377.2 117,241.0 114,795.3 114,367.3 120,377.2 
Weighted average share activity during the period:
Shares repurchased(1,471.5)(1,436.5)(2,706.6)(2,382.9)(8,054.5)(2,098.0)(1,774.6)(467.6)(145.1)(5,579.4)
Amounts related to employee benefit plans384.3 191.1 32.2 131.1 1,350.4 488.5 76.9 26.6 200.8 1,273.6 
Shares withheld for the payment of the exercise price and taxes related to employee benefit plans(52.2)(7.0)(1.3)(1.5)(174.6)(145.5)(10.2)(0.6)(0.9)(338.6)
Weighted average basic shares outstanding during the period134,139.7 131,015.9 126,429.3 122,016.6 128,400.4 118,622.2 115,533.1 114,353.7 114,422.1 115,732.8 
Basic shares outstanding, end of period132,268.3 129,105.0 124,269.9 120,377.2 120,377.2 117,241.0 114,795.3 114,367.3 114,343.1 114,343.1 
Diluted
Weighted average basic shares outstanding134,139.7 131,015.9 126,429.3 122,016.6 128,400.4 118,622.2 115,533.1 114,353.7 114,422.1 115,732.8 
Common stock equivalent shares related to:
Employee benefit plans2,513.6 2,797.8 2,588.7 3,003.0 2,725.8 2,379.9 1,752.5 1,574.8 2,231.1 1,984.5 
Weighted average diluted shares outstanding during the period136,653.3 133,813.7 129,018.0 125,019.6 131,126.2 121,002.1 117,285.6 115,928.5 116,653.2 117,717.3 
Diluted shares outstanding, end of period134,624.5 131,549.3 126,917.6 123,330.7 123,330.7 119,502.6 116,203.1 115,970.6 116,842.1 116,842.1 







Page 12

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Net gain from operations before interest expense and federal income taxes$53.6 $85.1 $96.1 $87.4 $322.2 $26.7 $87.7 $78.4 $75.0 $267.8 
Interest expense on surplus debentures held by parent company12.0 12.2 19.0 12.2 55.4 12.0 12.2 20.1 14.6 58.9 
Net gain from operations before federal income taxes41.6 72.9 77.1 75.2 266.8 14.7 75.5 58.3 60.4 208.9 
Federal income tax expense (benefit)1.8 (2.2)(9.0)(12.5)(21.9)(15.8)(17.6)(7.0)(14.6)(55.0)
Net gain from operations before net realized capital gains (losses)39.8 75.1 86.1 87.7 288.7 30.5 93.1 65.3 75.0 263.9 
Net realized capital gains (losses)(0.6)(1.5)(1.3)(7.8)(11.2)— (11.2)(0.6)(14.1)(25.9)
Net income $39.2 $73.6 $84.8 $79.9 $277.5 $30.5 $81.9 $64.7 $60.9 $238.0 
Capital and surplus$1,781.8 $1,782.8 $1,715.7 $1,799.6 $1,799.6 $1,738.0 $1,796.9 $1,847.0 $1,849.8 $1,849.8 
Asset valuation reserve (AVR)327.5 330.4 334.8 332.5 332.5 319.5 306.7 304.7 305.8 305.8 
Capital, surplus and AVR2,109.3 2,113.2 2,050.5 2,132.1 2,132.1 2,057.5 2,103.6 2,151.7 2,155.6 2,155.6 
Interest maintenance reserve (IMR)401.5 411.9 409.0 407.9 407.9 422.4 421.3 413.0 395.7 395.7 
Total statutory capital, surplus, AVR & IMR$2,510.8 $2,525.1 $2,459.5 $2,540.0 $2,540.0 $2,479.9 $2,524.9 $2,564.7 $2,551.3 $2,551.3 
Risk-based capital ratio407 %409 %388 %386 %386 %365 %360 %375 %384 %384 %






Page 13

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Net investment income$338.2 $379.2 $308.2 $395.1 $1,420.7 $208.2 $223.9 $268.1 $315.7 $1,015.9 
Allocated to product lines:
Annuity(117.2)(116.6)(117.0)(118.1)(468.9)(117.5)(117.8)(121.1)(123.6)(480.0)
Health(72.9)(73.1)(73.6)(73.9)(293.5)(73.3)(73.0)(73.3)(73.7)(293.3)
Life(35.7)(35.8)(36.0)(35.7)(143.2)(35.5)(35.2)(35.4)(35.8)(141.9)
Equity returns credited to policyholder account balances(42.5)(76.1)(7.2)(94.0)(219.8)71.9 92.4 34.9 6.1 205.3 
Amounts allocated to product lines and credited to policyholder account balances(268.3)(301.6)(233.8)(321.7)(1,125.4)(154.4)(133.6)(194.9)(227.0)(709.9)
Impact of annual option forfeitures related to fixed indexed annuity surrenders3.8 3.7 3.5 4.2 15.2 1.6 (0.5)(1.1)(1.0)(1.0)
Amount related to variable interest entities and other non-operating items(7.8)(8.0)(7.1)(7.6)(30.5)(7.2)(9.1)(13.6)(18.6)(48.5)
Interest expense on debt(15.5)(15.6)(15.6)(15.7)(62.4)(15.7)(15.6)(15.6)(15.6)(62.5)
Interest expense on investment borrowings from the Federal Home Loan Bank ("FHLB") program(2.7)(2.5)(2.3)(2.3)(9.8)(2.4)(4.7)(10.3)(16.1)(33.5)
Expenses related to the funding agreement-backed notes ("FABN") program (a)— — — (2.3)(2.3)(7.3)(7.6)(7.5)(7.6)(30.0)
Less amounts credited to deferred compensation plans (offsetting investment income)(3.7)(6.6)(1.0)(5.3)(16.6)4.2 11.8 2.0 (4.6)13.4 
Total adjustments(25.9)(29.0)(22.5)(29.0)(106.4)(26.8)(25.7)(46.1)(63.5)(162.1)
Investment income not allocated to product lines$44.0 $48.6 $51.9 $44.4 $188.9 $27.0 $64.6 $27.1 $25.2 $143.9 

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


Page 14

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


1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Investment income not allocated:
Excluding variable components:
From general account assets$21.8 $22.0 $20.6 $19.8 $84.2 $22.3 $27.1 $27.4 $30.7 $107.5 
Other investment income— 0.1 0.1 0.1 0.3 0.1 0.3 1.1 1.7 3.2 
Spread income:
FHLB program:
Investment income on matched assets10.3 10.4 10.3 10.6 41.6 11.7 19.3 24.5 28.0 83.5 
Interest expense(2.7)(2.5)(2.3)(2.3)(9.8)(2.4)(4.7)(10.3)(16.1)(33.5)
Net spread income on FHLB program7.6 7.9 8.0 8.3 31.8 9.3 14.6 14.2 11.9 50.0 
FABN program:
Investment income on matched assets— — — 3.3 3.3 10.1 13.2 13.2 13.6 50.1 
Expenses (b)— — — (2.3)(2.3)(7.3)(7.6)(7.5)(7.6)(30.0)
Net spread income on FABN program— — — 1.0 1.0 2.8 5.6 5.7 6.0 20.1 
Interest expense on corporate debt(15.5)(15.6)(15.6)(15.7)(62.4)(15.7)(15.6)(15.6)(15.6)(62.5)
Total excluding variable components 13.9 14.4 13.1 13.5 54.9 18.8 32.0 32.8 34.7 118.3 
Variable components:
Net income from Corporate Owned Life Insurance ("COLI") supporting agent deferred compensation plan:
Change in value of COLI investments(3.9)2.1 (0.1)(0.8)(2.7)(3.4)(2.3)(0.2)1.5 (4.4)
Increase in liability for agent deferred compensation plan(1.6)(1.5)(1.6)(1.6)(6.3)(1.5)(1.5)(1.5)(1.6)(6.1)
Net COLI income (loss)(5.5)0.6 (1.7)(2.4)(9.0)(4.9)(3.8)(1.7)(0.1)(10.5)
Other variable components:
Alternative investment income (loss):
Total34.1 29.0 32.3 22.2 117.6 11.3 27.1 (2.5)(5.2)30.7 
Allocated to product lines(7.9)(7.8)(7.6)(7.4)(30.7)(7.4)(7.4)(7.6)(7.9)(30.3)
Excess alternative investment income (loss)26.2 21.2 24.7 14.8 86.9 3.9 19.7 (10.1)(13.1)0.4 
Prepayment and call income1.7 4.9 10.2 11.6 28.4 5.2 14.9 3.7 1.6 25.4 
Trading account2.0 2.4 1.4 1.4 7.2 2.7 1.5 1.8 1.7 7.7 
Hedge variance related to fixed indexed products1.1 (0.1)0.2 (0.1)1.1 (1.0)(0.4)0.2 (0.1)(1.3)
Impact of annual option forfeitures related to fixed indexed annuity surrenders3.8 3.7 3.5 4.2 15.2 1.6 (0.5)(1.1)(1.0)(1.0)
Other (a)0.8 1.5 0.5 1.4 4.2 0.7 1.2 1.5 1.5 4.9 
Total variable components30.1 34.2 38.8 30.9 134.0 8.2 32.6 (5.7)(9.5)25.6 
Total investment income not allocated to product lines $44.0 $48.6 $51.9 $44.4 $188.9 $27.0 $64.6 $27.1 $25.2 $143.9 
___________
(a)    Includes impacts of changes in projected cash flows and other investment income.
(b)    Comprised of interest credited and amortization of deferred acquisition costs.
Page 15

CNO FINANCIAL GROUP, INC.
Investment Income Allocated to Product Lines (5)
(Dollars in millions)
(Unaudited)
1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
Average net insurance liabilities (11)
Annuity:
Fixed indexed annuities$7,597.5 $7,796.1 $8,016.5 $8,252.6 $7,915.7 $8,486.3 $8,711.0 $8,902.9 $9,054.2 $8,788.6 
Fixed interest annuities1,951.3 1,898.7 1,854.9 1,812.3 1,879.3 1,761.2 1,712.5 1,675.9 1,652.6 1,700.5 
Other annuities514.6 509.0 503.7 497.8 506.3 490.2 484.2 478.8 473.6 481.7 
Total annuity average net insurance liabilities (11)10,063.4 10,203.8 10,375.1 10,562.7 10,301.3 10,737.7 10,907.7 11,057.6 11,180.4 10,970.8 
Health:
Supplemental health3,075.9 3,115.1 3,149.5 3,180.7 3,130.3 3,215.6 3,250.7 3,278.3 3,308.8 3,263.3 
Medicare supplement124.2 127.5 124.9 126.2 125.7 129.5 140.3 135.1 121.9 131.7 
Long-term care2,597.3 2,604.4 2,612.8 2,626.9 2,610.3 2,639.2 2,650.1 2,658.0 2,659.4 2,651.7 
Total health average net insurance liabilities (11)5,797.4 5,847.0 5,887.2 5,933.8 5,866.3 5,984.3 6,041.1 6,071.4 6,090.1 6,046.7 
Life:
Interest sensitive954.8 969.9 983.1 995.3 975.8 1,009.4 1,016.4 1,019.2 1,026.9 1,018.0 
Traditional1,946.4 1,949.7 1,963.9 1,961.7 1,955.4 1,957.1 1,951.0 1,943.7 1,956.1 1,952.0 
Total life average net insurance liabilities (11)2,901.2 2,919.6 2,947.0 2,957.0 2,931.2 2,966.5 2,967.4 2,962.9 2,983.0 2,970.0 
Total average net insurance liabilities (11)$18,762.0 $18,970.4 $19,209.3 $19,453.5 $19,098.8 $19,688.5 $19,916.2 $20,091.9 $20,253.5 $19,987.5 
Average yield on allocated investments
Annuity:
Fixed indexed annuities4.55 %4.44 %4.38 %4.33 %4.42 %4.25 %4.20 %4.27 %4.30 %4.25 %
Fixed interest annuities5.00 %4.99 %4.96 %4.97 %4.98 %4.88 %4.81 %4.85 %4.99 %4.88 %
Other annuities4.97 %4.95 %4.92 %4.98 %4.96 %4.81 %4.79 %4.85 %4.81 %4.82 %
Average yield on investments allocated to annuities4.66 %4.57 %4.51 %4.47 %4.55 %4.38 %4.32 %4.38 %4.42 %4.38 %
Health:
Supplemental health4.69 %4.65 %4.69 %4.68 %4.68 %4.65 %4.63 %4.60 %4.62 %4.62 %
Medicare supplement4.30 %4.24 %4.20 %4.18 %4.23 %4.11 %4.01 %4.01 %4.06 %4.05 %
Long-term care5.47 %5.45 %5.43 %5.38 %5.43 %5.24 %5.13 %5.15 %5.14 %5.17 %
Average yield on investments allocated to health products5.03 %5.00 %5.00 %4.98 %5.00 %4.90 %4.83 %4.83 %4.84 %4.85 %
Life:
Interest sensitive5.19 %5.11 %5.13 %5.14 %5.14 %5.15 %5.04 %5.06 %5.02 %5.07 %
Traditional4.79 %4.80 %4.77 %4.67 %4.76 %4.60 %4.59 %4.63 %4.68 %4.63 %
Average yield on investments allocated to life products4.92 %4.90 %4.89 %4.83 %4.89 %4.79 %4.74 %4.78 %4.80 %4.78 %
Total average yield4.81 %4.75 %4.72 %4.68 %4.74 %4.60 %4.54 %4.57 %4.60 %4.58 %
Allocated investment income
Annuity:
Fixed indexed annuities$86.4 $86.6 $87.8 $89.4 $350.2 $90.1 $91.4 $95.0 $97.3 $373.8 
Fixed interest annuities24.4 23.7 23.0 22.5 93.6 21.5 20.6 20.3 20.6 83.0 
Other annuities6.4 6.3 6.2 6.2 25.1 5.9 5.8 5.8 5.7 23.2 
Total investment income allocated to annuities117.2 116.6 117.0 118.1 468.9 117.5 117.8 121.1 123.6 480.0 
Health:
Supplemental health36.1 36.2 36.9 37.2 146.4 37.4 37.6 37.7 38.2 150.9 
Medicare supplement1.3 1.4 1.2 1.4 5.3 1.3 1.4 1.4 1.3 5.4 
Long-term care35.5 35.5 35.5 35.3 141.8 34.6 34.0 34.2 34.2 137.0 
Total investment income allocated to health products72.9 73.1 73.6 73.9 293.5 73.3 73.0 73.3 73.7 293.3 
Life:
   Interest sensitive12.4 12.4 12.6 12.8 50.2 13.0 12.8 12.9 12.9 51.6 
Traditional23.3 23.4 23.4 22.9 93.0 22.5 22.4 22.5 22.9 90.3 
Total investment income allocated to life products35.7 35.8 36.0 35.7 143.2 35.5 35.2 35.4 35.8 141.9 
Total allocated investment income$225.8 $225.5 $226.6 $227.7 $905.6 $226.3 $226.0 $229.8 $233.1 $915.2 
Page 16

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

1Q2Q3Q4QYTD1Q2Q3Q4QYTD
2021202120212021202120222022202220222022
General account assets investment income$282.7 $282.1 $289.5 $285.9 $1,140.2 $277.5 $317.7 $289.0 $294.8 $1,179.0 
Policyholder and other special purpose portfolio investment income (loss)55.5 97.1 18.7 109.2 280.5 (69.3)(93.8)(20.9)20.9 (163.1)
Less equity returns credited to policyholders:
Annuity(37.7)(68.3)(6.3)(83.2)(195.5)64.3 80.1 30.9 6.0 181.3 
Life(4.8)(7.8)(0.9)(10.8)(24.3)7.6 12.3 4.0 0.1 24.0 
Less amount related to variable interest entities(7.8)(8.0)(7.1)(7.6)(30.5)(7.2)(9.1)(13.6)(18.6)(48.5)
Less amounts credited to deferred compensation plans(3.7)(6.6)(1.0)(5.3)(16.6)4.2 11.8 2.0 (4.6)13.4 
Other special purpose portfolio investment income (loss)1.5 6.4 3.4 2.3 13.6 (0.4)1.3 2.4 3.8 7.1 
Adjusted net investment income284.2 288.5 292.9 288.2 1,153.8 277.1 319.0 291.4 298.6 1,186.1 
Less amounts allocated to product lines
Annuity(117.2)(116.6)(117.0)(118.1)(468.9)(117.5)(117.8)(121.1)(123.6)(480.0)
Health(72.9)(73.1)(73.6)(73.9)(293.5)(73.3)(73.0)(73.3)(73.7)(293.3)
Life(35.7)(35.8)(36.0)(35.7)(143.2)(35.5)(35.2)(35.4)(35.8)(141.9)
Total investment income allocated to product lines(225.8)(225.5)(226.6)(227.7)(905.6)(226.3)(226.0)(229.8)(233.1)(915.2)
Impact of annual option forfeitures related to fixed indexed annuity surrenders3.8 3.7 3.5 4.2 15.2 1.6 (0.5)(1.1)(1.0)(1.0)
Less interest expense on investment borrowings from FHLB program(2.7)(2.5)(2.3)(2.3)(9.8)(2.4)(4.7)(10.3)(16.1)(33.5)
Less expenses related to FABN program— — — (2.3)(2.3)(7.3)(7.6)(7.5)(7.6)(30.0)
Less interest expense on debt(15.5)(15.6)(15.6)(15.7)(62.4)(15.7)(15.6)(15.6)(15.6)(62.5)
Investment income not allocated to product lines$44.0 $48.6 $51.9 $44.4 $188.9 $27.0 $64.6 $27.1 $25.2 $143.9 

Other Investment Data

1Q2Q3Q4Q1Q2Q3Q4Q
20212021202120212022202220222022
Average book value of invested assets and cash$23,418.7 $23,585.3 $23,936.9 $24,696.3 $25,791.7 $25,954.0 $26,251.0 $26,484.1 
Net investment income from general account investments282.7 282.1 289.5 285.9 277.5 317.7 289.0 294.8 
New money rate (14)3.57 %3.38 %3.55 %3.67 %3.73 %5.53 %5.36 %5.96 %
Book yield4.76 %4.71 %4.63 %4.59 %4.53 %4.52 %4.54 %4.55 %
Earned yield5.03 %4.97 %5.03 %4.83 %4.50 %5.00 %4.35 %4.35 %
Pre-pay/call/make-whole income$1.7 $4.9 $10.2 $11.6 $5.2 $14.9 $3.7 $1.6 
Alternative investment income (loss)34.1 29.0 32.3 22.2 11.3 27.1 (2.5)(5.2)
Impairments0.5 — — 2.4 — — — — 

Page 17

CNO FINANCIAL GROUP, INC.
4Q22 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 4Q22 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
December 31, 2022
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$50.8 $3.2 (a)$54.0 
Health margin140.4 (18.3)(a)122.1 
Life margin43.3 14.4 (a)57.7 
Total insurance product margin234.5 (0.7)233.8 
Allocated expenses(149.1)— (149.1)
Income from insurance products (5)85.4 (0.7)84.7 
Fee income9.2 — 9.2 
Investment income not allocated to product lines (9)25.2 — 25.2 
Expenses not allocated to product lines(12.8)— (12.8)
Operating earnings before taxes107.0 (0.7)106.3 
Income tax (expense) benefit on operating income(24.1)0.2 (23.9)
Net operating income (10)$82.9 $(0.5)$82.4 
Net operating income per diluted share$0.71 $— $0.71 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.

CNO FINANCIAL GROUP, INC.
2Q22 Significant Items
(Dollars in millions, except per share amounts)
(Unaudited)

The table below summarizes the financial impact of significant items on our 2Q22 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.

Three months ended
June 30, 2022
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$60.1 $— $60.1 
Health margin125.4 — 125.4 
Life margin70.2 — 70.2 
Total insurance product margin255.7 — 255.7 
Allocated expenses(152.2)— (152.2)
Income from insurance products (5)103.5 — 103.5 
Fee income3.2 — 3.2 
Investment income not allocated to product lines (9)64.6 — 64.6 
Expenses not allocated to product lines2.9 (22.5)(a)(19.6)
Operating earnings before taxes174.2 (22.5)151.7 
Income tax (expense) benefit on operating income(39.1)5.1 (34.0)
Net operating income (10)$135.1 $(17.4)$117.7 
Net operating income per diluted share$1.15 $(0.15)$1.00 
___________
(a)Comprised of an experience refund of $22.5 million related to a reinsurance agreement.
Page 18


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

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

Three months ended
December 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$65.6 $0.7 (a)$66.3 
Health margin126.2 (7.1)(a)119.1 
Life margin53.4 3.4 (a)56.8 
Total insurance product margin245.2 (3.0)242.2 
Allocated expenses(143.3)— (143.3)
Income from insurance products (5)101.9 (3.0)98.9 
Fee income2.9 — 2.9 
Investment income not allocated to product lines (9)44.4 — 44.4 
Expenses not allocated to product lines(17.4)— (17.4)
Operating earnings before taxes131.8 (3.0)128.8 
Income tax (expense) benefit on operating income(28.7)0.7 (28.0)
Net operating income (10)$103.1 $(2.3)$100.8 
Net operating income per diluted share$0.83 $(0.02)$0.81 
___________
(a)Adjustments arising from our comprehensive annual actuarial review of assumptions.

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

The table below summarizes the financial impact of significant items on our 3Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
September 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$58.5 $— $58.5 
Health margin122.8 — 122.8 
Life margin60.8 — 60.8 
Total insurance product margin242.1 — 242.1 
Allocated expenses(140.5)— (140.5)
Income from insurance products (5)101.6 — 101.6 
Fee income2.6 — 2.6 
Investment income not allocated to product lines (9)51.9 — 51.9 
Expenses not allocated to product lines(17.3)3.0 (a)(14.3)
Operating earnings before taxes138.8 3.0 141.8 
Income tax (expense) benefit on operating income(30.7)(0.7)(31.4)
Net operating income (10)$108.1 $2.3 $110.4 
Net operating income per diluted share$0.84 $0.02 $0.86 
___________
(a)Comprised of $3.0 million from legal and regulatory matters.
Page 19


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

The table below summarizes the financial impact of significant items on our 2Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
June 30, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$60.0 $— $60.0 
Health margin121.7 — 121.7 
Life margin50.3 — 50.3 
Total insurance product margin232.0 — 232.0 
Allocated expenses(141.6)— (141.6)
Income from insurance products (5)90.4 — 90.4 
Fee income6.6 — 6.6 
Investment income not allocated to product lines (9)48.6 — 48.6 
Expenses not allocated to product lines(23.8)4.5 (a)(19.3)
Operating earnings before taxes121.8 4.5 126.3 
Income tax (expense) benefit on operating income(27.8)(1.0)(28.8)
Net operating income (10)$94.0 $3.5 $97.5 
Net operating income per diluted share$0.70 $0.03 $0.73 
___________
(a)Comprised of $4.5 million from legal and regulatory matters.


Page 20

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

The table below summarizes the financial impact of significant items on our 1Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results.
Three months ended
March 31, 2021
Actual resultsSignificant itemsExcluding significant
items
Insurance product margin (4)
Annuity margin$59.1 $— $59.1 
Health margin126.9 — 126.9 
Life margin48.1 — 48.1 
Total insurance product margin234.1 — 234.1 
Allocated expenses(141.1)— (141.1)
Income from insurance products (5)93.0 — 93.0 
Fee income7.3 — 7.3 
Investment income not allocated to product lines (9)44.0 — 44.0 
Expenses not allocated to product lines(22.0)7.8 (a)(14.2)
Operating earnings before taxes122.3 7.8 130.1 
Income tax (expense) benefit on operating income(27.1)(1.7)(28.8)
Net operating income (10)$95.2 $6.1 $101.3 
Net operating income per diluted share$0.70 $0.04 $0.74 
___________
(a)Comprised of: (i) $5.3 million from legal and regulatory matters; and (ii) $2.5 million of transaction expenses related to the previously announced acquisition of Optavise, LLC (formerly known as DirectPath, LLC prior to its name change in April 2022). The legal and regulatory matters primarily consist of an increase to our liability for claims and interest pursuant to the Global Resolution Agreement, as we have now processed and verified most of the claims provided by the third party auditor allowing us to more accurately estimate the ultimate liability.







Page 21


Notes

(1)Excludes accumulated other comprehensive income (loss). Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments.
(2)Shareholders' equity divided by common shares outstanding.
(3)Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised and restricted stock and performance units were vested. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period.
(4)Insurance margin is management’s measure of profitability of its annuity, health and life product lines’ performance and consists of insurance policy income plus allocated investment income less insurance policy benefits, interest credited, commissions, advertising expense and amortization of acquisition costs. Income from insurance products is the sum of the insurance margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of results of our insurance product lines. Income from insurance products, a non-GAAP measure, is a component of net operating income, which is reconciled to net income on page 5 of this Quarterly Financial Supplement.
(5)Investment income is allocated to the product lines using the book yield of investments backing the block of business, which is applied to the average net insurance liabilities for the block in each period. See note (11) for definition of net insurance liabilities.
(6)Excludes the change in market values of the underlying options supporting the fixed indexed annuity products and corresponding amount credited to policyholder account liabilities. Such amounts were $37.7 million, $68.3 million, $6.3 million, $83.2 million, $(64.3) million, $(80.1) million, $(30.9) million and $(6.0) million in 1Q21, 2Q21, 3Q21, 4Q21, 1Q22, 2Q22, 3Q22 and 4Q22, respectively.
(7)Excludes the change in market values of the underlying options supporting the fixed indexed life products and corresponding amount credited to policyholder account liabilities. Such amounts were $4.8 million, $7.8 million, $.9 million, $10.8 million, $(7.6) million, $(12.3) million, $(4.0) million and $(.1) million in 1Q21, 2Q21, 3Q21, 4Q21, 1Q22, 2Q22, 3Q22 and 4Q22, respectively.
(8)Income from insurance products is the sum of the insurance margins of the annuity, health and life product lines, less expenses allocated to the insurance lines. It excludes the income from our fee income business, investment income not allocated to product lines, net expenses not allocated to product lines (primarily holding company expenses) and income taxes. Management believes this information helps provide a better understanding of the business and a more meaningful analysis of results of our insurance product lines. Income from insurance products, a non-GAAP measure, is a component of net operating income, which is reconciled to net income on page 5 of this Quarterly Financial Supplement.
(9)Investment income not allocated to product lines is defined as net investment income less: (i) equity returns credited to policyholder account balances; (ii) the investment income allocated to our product lines; (iii) impact of annual option forfeitures related to fixed indexed annuity surrenders; (iv) interest expense on notes payable and investment borrowings; (v) expenses related to the FABN program; and (vi) certain expenses related to benefit plans that are offset by special-purpose investment income. Investment income not allocated to product lines includes investment income on investments in excess of average net insurance liabilities, investments held by our holding companies, the spread we earn from our Federal Home Loan Bank investment borrowing and FABN programs and variable components of investment income (including call and prepayment income, adjustments to returns on structured securities due to cash flow changes, income from company-owned life insurance ("COLI") and variations in income from alternative investments), net of interest expense.
(10)Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and change in allowance for credit losses, net of taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) changes in fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities, net of taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss related to reinsurance transaction, net of taxes; (vi) loss on extinguishment of debt, net of taxes; (vii) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes (“Net operating income,” a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals.
(11)Net insurance liabilities for the purpose of allocating investment income to product lines 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.
(12)Margin/average net insurance liabilities for quarterly periods is calculated by annualizing the quarters' margin divided by the average net insurance liabilities.
(13)Based on statutory accounting practices prescribed or permitted by regulatory authorities for CNO Financial's insurance subsidiaries after appropriate elimination of intercompany accounts among such subsidiaries. Such accounting practices differ from GAAP.
(14)The new money rate is for the investments purchased during the period to support our insurance products and capital. It excludes the new money rate on investments purchased with investment borrowings under our Federal Home Loan Bank program and investments purchased by the variable interest entities.
Page 22