CNO Financial : Fourth Quarter 2019 Investor Presentation

Fourth Quarter 2019

Financial and operating results for the period ended December 31, 2019

February 11, 2020

Unless otherwise specified, comparisons in this presentation are between 4Q18 and 4Q19.

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 February 11, 2020, our Quarterly Reports on Form 10-Q, our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission. We assume no obligation to update this presentation, which speaks as of today's date.

Non-GAAP Measures

This presentation contains the following financial measures that differ from the comparable measures under Generally Accepted Accounting Principles (GAAP): operating earnings measures; book value, excluding accumulated other comprehensive income (loss) per share; operating return measures; earnings before net realized investment gains (losses) from sales and impairments, net change in market value of investments recognized in earnings, fair value changes in embedded derivative liabilities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, loss related to reinsurance transaction, other non-operating items, corporate interest expense and taxes; and debt to capital ratios, excluding accumulated other comprehensive income (loss). Reconciliations between those non-GAAP measures and the comparable GAAP measures are included in the Appendix, or on the page such measure is presented.

While management believes these measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered substitutes for the most directly comparable GAAP measures.

Additional information concerning non-GAAP measures is included in our periodic filings with the Securities and Exchange Commission that are available in the "Investors - SEC Filings" section of CNO's website, CNOinc.com.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	2

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	3

2019 Year in Review

Strong production and operating discipline enhancing shareholder value

Strong

Operational

Performance

Building on Track Record of Execution

• Growth initiatives continue to bear fruit; all growth scorecard metrics up for the full year
• Solid new product launch activity
• Underwriting performance stable; all health benefit ratios within or better than provided guidance
• Second consecutive year of record Worksite sales
• Leveraged and broadened DTC capabilities
• Returned $319 million to shareholders; $252 million in share buybacks; increased buyback authorization by $500 million
• Received investment grade credit ratings from S&P and Fitch
• 13% increase in BV per diluted share (excl. AOCI)1 due to tax planning strategy and strong operating performance
• Acquired Web Benefits Design ("WBD")
• Entered into strategic technology partnership expected to deliver $20 million in savings over 5 years

1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	4

Quarter in Review

Solid performance fueled by disciplined growth

Strong

Operational

Performance

Building on Track Record of Execution

• Life and health sales up 9%
• Annuity collected premiums down 9% reflecting pricing discipline; account values up 5%
• Insurance policy income up 1%
• All health benefit ratios within or better than provided guidance
• Fee income up $20 million
• Tax strategy enables full use of expiring NOLs ($194 million); drove a $1.28 increase in net income per share
• Operating income1 per share up 4% excluding significant items
• Returned $91.4 million to shareholders; $75 million in share buybacks
• BV per diluted share (excl. AOCI)1 of $22.09 up 9% from $20.30 at 9/30
• Operating ROE1, excluding significant items, of 10.4%

1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	5

Growth Scorecard

Three of five metrics up Q/Q; all five up for full year

Drive Growth the Right

Expand to

($ millions)

2018

2019

% Change

4Q

TY

1Q

2Q

3Q

4Q

TY

Q/Q

TY

New Annualized Premium 1
Life Insurance	$36.3			$147.5	$39.7	$39.4	$37.3	$34.9	$151.3	-3.9%	2.6%
Health Insurance	53.3			183.7	40.1	45.8	46.7	62.7	195.3	17.6%	6.3%
Total Life & Health Insurance	$89.6			$331.2		$79.8		$85.2		$84.0		$97.6		$346.6	8.9%	4.6%
Collected Premiums
Bankers Life	$732.1			$2,648.2	$683.9	$705.2	$692.8	$711.1	$2,793.0	-2.9%	5.5%
Washington National	176.3			692.8	176.8	176.9	176.1	181.2	711.0	2.8%	2.6%
Colonial Penn	75.2			298.3	77.2	76.7	77.1	77.3	308.3	2.8%	3.4%
Sub-total	983.6			3,639.3		937.9		958.8		946.0		969.6		3,812.3	-1.4%	4.8%
LTC in run-off	3.7			145.8		3.6		3.4		3.3		3.2		13.5	-13.5%	nm
Total CNO	$987.3			$3,785.1	$941.5	$962.2	$949.3	$972.8	$3,825.8	-1.5%	1.1%
Annuity Collected Premiums
Bankers Life	$354.3			$1,163.2	$315.3	$341.0	$325.0	$324.1	$1,305.4	-8.5%	12.2%
Client Assets in Brokerage and Advisory 2
Bankers Life	$1,104.9			$1,104.9	$1,234.4	$1,303.0	$1,362.7	$1,515.0	$1,515.0	37.1%	37.1%
Fee Revenue	$10.6			$49.8	$25.4	$15.6	$16.3	$30.2	$87.5	185.0%	75.7%

• Measured as 100% of new term life and health annualized premiums and 10% of single premium whole life deposits.
  2 Client assets include cash and securities in brokerage and managed advisory accounts.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	6

Segment Update

Growth in earnings and continued momentum with initiatives

Key Initiatives

Reinvigorate growth

Expand to the right

Reshape the agent force and optimize productivity

Fourth Quarter Highlights

• EBIT excluding significant items1 up 2% despite NII headwinds
• Life and Health NAP flat; third party policies up 20%
• Fee revenue up 123%
• Annuity account value up 5% to $9.1 billion
• Total client assets up 37% at BD/RIA to $1.5 billion
• FA count up 7%; 14% of agent force is dually licensed
• Sixth consecutive quarter of growing producing agent count; up 6% vs +4% in 4Q18
• Ongoing agent retention and productivity improvements

1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

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Segment Update

Record overall sales and sharp improvement in consumer market

Key Initiatives

Maintain growth momentum

Advance worksite capabilities

Expand geographically

Enhance product portfolio

Fourth Quarter Highlights

• New sales record; overall NAP up 32%
• Life NAP up 7%; Life collected premiums up 14%
• Consumer division sales up 57%
• Worksite NAP up 7% against +38% in 4Q18
• Worksite producing agent count up 14%
• WBD integration in line with expectations
• Continued expansion into underpenetrated territories
• Geographic expansion drove 3% of total 4Q NAP
• Product diversification initiatives comprised 8% of total 4Q NAP

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	8

Segment Update

Record full year production; leveraging DTC platform

Key Initiatives

Continue sales growth

Improve sales productivity; expand web/digital capabilities

Enhance product portfolio; extend DTC capabilities

Fourth Quarter Highlights

• Best full year sales on record (up 7%); 4Q NAP down 8% due to lower marketing spend
• First-yearcollected premiums up 7%; Total collected premiums up 3%
• Continue to invest in web/digital capabilities
• Technology enhancements supporting productivity gains
• Continued diversification of consumer contact points: 2.4 million unique website visitors (up 20%) and 1.2 million telesales interactions in 2019; 5,000 webchats per month
• Piloting third party products in DTC channel
• Leveraging DTC expertise to support other channels

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Excess Capital Allocation Strategy

Disciplined and opportunistic approach to maximize shareholder value

Organic investments to sustain and grow the core businesses

Return capital to shareholders

• $75 million in share repurchases in 4Q; $252 million YTD
• Dividend payout ratio targeted at 20-25%
• $532 million left under current repurchase authorization

Opportunistic transactions

• Highly selective M&A to expand product offerings or enhance distribution

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Financial Highlights

Net operating income per share1 up 4%; tax strategy created $194 million in shareholder value

Fourth Quarter 2019		Net Operating Income

• Net operating income per diluted share1 of $0.52, up 44% from $0.36 in 4Q18
• • Excluding significant items, operating income per share up 4%
  • Lower NII from change in market yields, lower prepayment income, and 1Q19 up-in-quality repositioning drove decline of $0.081 per share
  • YTD operating income per share of $1.80, down 2%2
• Actuarial review complete; lowered ultimate new money rate
• Weighted average share count down 9%
• Operating ROE1, excluding significant items, of 10.4%
• Tax strategy enhances shareholder value; drives 9% increase in BV per diluted share (excl. AOCI)1, generates $194 million in income, $1.29 per share
• Generated $327 million in gross full year FCF; $287 million net
• Holding company cash and investments of $187 million
• Estimated consolidated RBC ratio of 408%
• Statutory operating income of $563 million; Statutory capital

and surplus of $1.7 billion

1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

• YTD 2018 operating income per share adj. to remove the earnings from the ceded LTC business and excl. significant items.
  3 Excludes $46 million income tax benefit to be received from the holding company that will be returned to the holding company in the form of a dividend. There was no impact on capital and surplus.

($ millions, except where noted)

			$1.83	$1.85
Net Operating			$1.83	$1.80
Income Per Share1
Net Operating
Income Per Share
Adjusted for Ceded
LTC Business2 and		$0.52
Excluding Significant	$0.36 $0.45
Items	$0.47
	4Q18	4Q19	FY182	FY19
Net Operating	$59.8	$78.6	$303.1	$290.0
Income1
Net Operating Income
Adj. for Ceded LTC	$74.9	$70.7	$303.2	$282.1
Business2 and Excl.
Significant Items
Weighted Average
Shares Outstanding	165.9	151.4	165.5	157.1
(in millions)

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	11

Segment Results

Stable underwriting margins despite NII headwinds

Segment EBIT Excluding Significant Items1

($ millions)		4Q18	1Q19	2Q19	3Q19	4Q19
Bankers Life		$81.1	$63.1	$86.4	$78.9	$83.1
Washington			$30.5
National		$29.7	$25.9	$26.8	$27.2
Colonial		$4.8		$5.8	$3.7	$6.2
Penn			($1.4)
LTC in		$0.3	$2.5	$3.2	$3.6	$2.7
run-off
Corporate			$0.8	($12.0)	($11.2)
	($15.3)		($15.1)
Total CNO		$100.6	$95.5	$109.3	$101.8	$104.1
Colonial Penn	$17.8	$14.2	$19.7	$19.1	$18.8
In-Force1

Segment Highlights

• Lower investment income impacted all segments
• Bankers Life results reflect improved benefit ratios and fee income offset by $12.7 million in investment headwinds
• Washington National results impacted by MS run-off block and favorable ISL results in prior period
• Colonial Penn Adjusted EBIT1 reflects solid in-force growth (up 6% to $19 million)
• • Full year Adjusted EBIT of $14 million; full year In-Force EBIT of $72 million, up 7%
• LTC in run-off benefited from favorable underwriting margin; expect breakeven performance going forward

1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.

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Health Margins

All benefit ratios within or better than guidance

Bankers Life Medicare

Supplement Benefit Ratio

$190	$191	$191	$190	$189
76.0%	72.3%	74.0%	74.9%	74.2%

4Q18

1Q19

2Q19

3Q19

4Q19

Earned Premium ($ millions)

Reported Benefit Ratio

• Benefit ratio of 74.2%
• 1% (+/-) = $1.9 million pre-tax
• 2019 benefit ratio guidance of
  73-77%

Bankers Life Long-term Care

IABR1,2

$64

$64

$64

$64

$63

74.7%

77.2%

77.5%

78.7%

75.0%

4Q18

1Q19

2Q19

3Q19

4Q19

Earned Premium ($ millions)

Reported IABR

• IABR1,2 of 75.0%
• 1% (+/-) = $0.6 million pre-tax
• 2019 IABR1,2 guidance of 74-79%

Washington National

Supplemental Health IABR1

$156 $156 $157 $158 $160

53.8%	56.2%	55.4%	54.2%
53.4%

4Q18 1Q19 2Q19 3Q19 4Q19

Earned Premium ($ millions)

Reported IABR

• IABR1 of 54.2%
• 1% (+/-) = $1.6 million pre-tax
• 2019 IABR1 guidance of 55-58%

1 Interest-adjusted benefit ratio (IABR); a non-GAAP measure. Refer to the Appendix for the corresponding GAAP measure. 2 Retained LTC business only.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	13

Investment Results

Consistent performance reflecting stable allocation in low rate environment

Average Invested Assets and Cash

$21,832 $22,058 $22,201 $22,382 $22,588

$290.4	$270.6	$286.7	$275.9	$272.0
	Net
	Investment
	Income

($ millions)	4Q18	1Q19	2Q19	3Q19	4Q19
New Money Rate1	4.77%	4.38%	4.58%	4.66%	4.08%
Book Yield2	5.24%	5.15%	5.08%	5.03%	4.97%
Earned Yield3	5.40%	5.02%	5.30%	5.11%	4.97%
Pre-Pay/Call/Make-	$10.9	$2.5	$6.6	$3.0	$4.6
whole Income
Alternative	$13.0	$5.5	$17.1	$17.7	$12.9
Investment Income
Impairments	$0.5	$2.2	-	$3.4	$6.8

Quarter Highlights

• New money rate reflects conservative positioning
• • Sequential decline largely reflects lack of new alternatives investments
• Sequential book yield decline of 6 bps in line with expectations
• Alternatives results in line with expectations
• Prepayment income $6.3 million lower YoY
• Credit performance remains solid
• No significant allocation changes in 4Q
• • BBBs comprise 39% of fixed maturity portfolio vs. 45% in 4Q18

• New money rate is the book yield on fixed maturity investments acquired in the period, excluding assets purchased for FHLB matchbook program.

2 Book yield on fixed maturity investments, excluding assets held in the FHLB matchbook program.

• Earned yield is the investment income earned during the period divided by the weighted average book value of the investment portfolio, excluding amounts related to assets held in the FHLB matchbook program.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	14

Committed to Long-Term Shareholder Value Creation

Continued progress on strategic initiatives

		Extend depth and		Leverage diverse
Effectively deploy			distribution		Expand to		Enhance customer
	breadth of product		channels and
excess capital				the right		experience
	offerings		unique product
				combination

Growth in sales, earnings, FCF, and ROE

Striking the right balance between growth and profitability

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	15

Questions and Answers

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	16

Appendix 1: Quarter in Review

Strong Operational Performance
•	Broker-Dealer/Registered Investment Advisor	Slide 18
•	Agent Count	Slide 19
Building on Strong Track Record of Execution
•	Bankers Life Retained LTC Insurance	Slides 20-21
•	Portfolio Composition	Slide 22

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Broker-Dealer/Registered Investment Advisor

Account value up 37% YoY; over $1.5 billion in client assets

($ millions)		2018			2019
	4Q		1Q		2Q		3Q		4Q
Net New Client Assets in	Brokerage
-$1.1		-$3.0		$5.1		$13.4		$17.4
Brokerage and Advisory1	Advisory	13.2	35.7	33.2	29.9	45.4
	Total	$12.1		$32.7		$38.3		$43.3		$62.8
Client Assets in Brokerage and	Brokerage	$794.1	$861.6	$886.0	$913.7	$982.9
Advisory1 at end of period	Advisory	310.8	372.8	417.0	449.0	532.1
	Total	$1,104.9		$1,234.4		$1,303.0		$1,362.7		$1,515.0

1 Client assets include cash and securities in brokerage and managed advisory accounts. Net new client assets includes total inflows of cash and securities into brokerage and managed advisory accounts less outflows. Inflows include interest and dividends and exclude changes due to market fluctuations.

Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc. Non-affiliated insurance products are offered through Bankers Life General Agency, Inc. (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA). Agents who

are financial advisors are registered with Bankers Life Securities, Inc.

Securities and variable annuity products and services are offered by Bankers Life Securities, Inc. Member FINRA/SIPC, (dba BL Securities, Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services are offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA). Home Office: 111 East Wacker Drive, Suite 1900, Chicago, IL 60601

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	18

Agent Counts

Bankers Life producing agent count up for sixth consecutive quarter

Bankers Life	2018			2019						% Change
4Q		1Q		2Q		3Q		4Q				Q/Q
Total Quarterly Average Producing Agents1,3	4,177	4,125	4,294	4,270	4,417		5.7%
Quarterly Average Financial Advisors2,3	560	583	595	596	596		6.4%
Washington National
Total Quarterly Average Producing Agents1,3	730	682	726	729	745		2.1%

1 Producing Agents are agents that have submitted at least one policy in the month.

2 Financial advisors are agents who are licensed to sell certain securities brokerage products and services. 3 Quarterly average agent and advisor counts represent the average of the last 3 months.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	19

Bankers Life Retained Long-Term Care Insurance

Retained book characterized by limited benefits, shorter duration periods

% of Policies by Benefit Period			Key LTC Data
			(As of 12/31/2019)
	2%					GAAP Reserves	$1.92B
			<= 1 Yr
	4%		Statutory Reserves	$1.97B
			Between 1 and 4	Policies In-Force	187,679
37%			Yrs	Average Attained Age	74 years
57%		Greater Than 4
		Avg. Daily Benefit	$175
			but Not Life
			Life	% Policies w/ Inflation Rider	26.1%
						Average Benefit Period1	1.6 years

1 Not including policies with lifetime benefits.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	20

Bankers Life Retained Long-Term Care Insurance

Highly-differentiatedin-force block; prudently managed

• New sales (~$25 million annually) focused on short duration products
• • 98% of new sales for policies with 2 years or less in benefits
  • Average benefit period of 11 months
  • New business 25% reinsured since 2008
• Reserve assumptions informed by historical experience
• • No morbidity improvement
  • No mortality improvement
  • Minimal future rate increases
  • Ultimate new money rate lowered to target 4.00% 10-year Treasury rate
• Favorable economic profile
• • 2019 Loss Recognition Testing margin increased to $251 million or ~13.3% of Net GAAP Liabilities
  • Statutory reserves ~$50 million higher than GAAP reserves
  • Total LTC is just 13% of overall CNO reserves
  • Potential adverse impact from severe stress scenarios is significantly reduced

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	21

Portfolio Composition

Conservative allocation; 1Q19 up-in-quality repositioning

$25 billion of Invested Assets	Fixed Maturity Securities by Ratings
Mortgage	HY Corporates,	(Fair Value as of 12/31/2019)
Loans, 6.6%	2.5%
CMO, 4.2%

CMBS,

8.0%

	Municipals,
	8.9%
	ABS, 10.3%
IG Corporates,	Govts/Agency,
1.2%
49.0%
CLO, 1.6%
	Equities, 0.2%
	Other Invested
	Assets, 2.1%
	Alternatives, 2.3%
General Approach	Policy Loans, 0.5%
Cash, 2.6%

• Positioned for stable performance across credit cycles
• Emphasizing quality

NAIC 2, 38.6%

NAIC 1, 57.7%

NAIC 3, 2.9%

NAIC 4, 0.8%

NAIC 5 & NAIC 6,

0.0%

• Low impairments through multiple cycles
• Lower than average allocation to most higher risk categories - all carefully calibrated

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	22

Appendix 2: Financial Exhibits

•	Holding Company Liquidity	Slide 24
•	Tax Asset Summary	Slide 25
•	Non-GAAP Financial Measures	Slides 26-42

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2019 Holding Company Liquidity

($ millions)	4Q19	FY19
Cash and Investments Balance - Beginning	$ 260.4	$ 220.4
Sources
Dividends from Insurance Subsidiaries	16.0	186.3
Dividends from Non-insurance Subsidiaries	-	8.0
Management Fees	28.1	115.5
Surplus Debenture Interest	12.3	59.9
Earnings on Corporate Investments	2.2	13.6
Gross Proceeds from New Debt	-	500.0
Other	1.6	20.9
Total Sources	60.2	904.2
Uses
Share Repurchases	73.2	250.5
Interest Expense	25.5	48.3
Common Stock Dividends	16.4	66.9
Debt Repayments	-	425.0
Acquisition	-	66.7
Holding Company Expenses & Other	18.8	80.7
Total Uses	133.9	938.1
Mark-to-market Changes in Investment Balances	-	0.2
Cash and Investments Balance - December 31, 2019	$ 186.7	$ 186.7

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	24

Tax Asset Summary

Loss Carryforwards

($ millions)

$532

Life $110

Non-Life $422

Loss Carryforwards (1)

Details

• Total estimated economic value of NOLs of $406 million @ 10% discount rate (~$2.71 on per share basis)
• Life NOLs are expected to offset 80% of life taxable income until fully utilized. Non-life NOLs are expected to offset 100% of non- life taxable income and 35% of the remaining life taxable income not offset by life NOLs through 2023.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	1 Excludes $10 million related to state operating loss carryforwards.	25

4Q18 Significant Items

The table below summarizes the financial impact of significant items on our 4Q18 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results (dollars in millions).

									Three months ended
									December 31, 2018
																					Excluding
																					significant
				Actual results				Significant items			items
Net Operating Income:
Bankers Life	$	78.0		$	3.1	(1)					$	81.1
Washington National				31.9								(2.2)	(1)						29.7
Colonial Penn				4.8								-							4.8
Long-term care in run-off				0.3								-							0.3
Adjusted EBIT from business segments				115.0								0.9							115.9
Corporate Operations, excluding corporate interest expense				(29.7)									14.4	(2)					(15.3)
Adjusted EBIT				85.3								15.3							100.6
Corporate interest expense				(12.1)									-						(12.1)
Operating earnings before tax				73.2								15.3							88.5
Tax expense on operating income				13.4								0.2							13.6
Net operating income (3)	$	59.8		$	15.1						$	74.9
Net operating income per diluted share (3)		$	0.36			$	0.09						$	0.45

1. Adjustments arising from our comprehensive annual actuarial review of assumptions including $3.1 million of unfavorable impacts in the Bankers Life segment and $2.2 million of favorable impacts in the Washington National segment.
2. $14.4 million unfavorable impact of current market conditions on the value of investments backing our Company-owned life insurance (COLI) used as a vehicle to fund Bankers Life's agent deferred compensation plan. Changes in the value of COLI investments are not subject to income taxes.
3. A non-GAAP measure. See pages 28 and 31 for a reconciliation to the corresponding GAAP measure.

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4Q19 Significant Items

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

									Three months ended
									December 31, 2019
																						Excluding
																						significant
				Actual results				Significant items				items
Net Operating Income:
Bankers Life	$	72.3		$	10.8	(1)			$	83.1
Washington National				28.0								(0.8)		(1)						27.2
Colonial Penn				6.2								-								6.2
Long-term care in run-off				2.7								-								2.7
Adjusted EBIT from business segments				109.2								10.0							119.2
Corporate Operations, excluding corporate interest expense				4.9								(20.0)		(2)				(15.1)
Adjusted EBIT				114.1								(10.0)								104.1
Corporate interest expense				(13.8)									-						(13.8)
Operating earnings before tax				100.3								(10.0)								90.3
Tax expense on operating income				21.6								(2.1)								19.5
Net operating income (3)	$	78.7		$	(7.9)					$	70.8
Net operating income per diluted share (3)		$	0.52			$	(0.05)					$	0.47

1. Adjustments arising from our comprehensive annual actuarial review of assumptions including $10.8 million of unfavorable impacts in the Bankers Life segment and $0.8 million of favorable impacts in the Washington National segment.
2. $20.0 million of the net favorable impact from legal and regulatory matters.
3. A non-GAAP measure. See pages 28 and 31 for a reconciliation to the corresponding GAAP measure.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	27

Quarterly Earnings

($ millions)		4Q18		1Q19			2Q19			3Q19			4Q19
Bankers Life	$	78.0		$	63.1	$	86.4	$	78.9	$	72.3
Washington National		31.9			30.5			25.9			26.8			28.0
Colonial Penn		4.8			(1.4)			5.8			3.7			6.2
Long-term care in run-off		0.3			2.5			3.2			3.6			2.7
Adjusted EBIT from business segments
	115.0			94.7			121.3			113.0			109.2
Corporate operations, excluding interest expense		(29.7)		0.8			(12.0)			(11.2)			4.8
Adjusted EBIT*
	85.3			95.5			109.3			101.8			114.1
Corporate interest expense		(12.1)		(12.1)			(12.6)			(13.9)			(13.8)
Operating earnings before taxes		73.2			83.4			96.7			87.9			100.3
Tax expense on period income		13.4			17.6			20.3			18.7			21.7
Net operating income		59.8			65.8			76.4			69.2			78.6
Net realized investment gains (losses) from sales and impairments, net of related amortization		(10.5)		(0.7)			(1.7)			(2.6)			7.1
Net change in market value of investments recognized in earnings		(27.5)		16.6			6.8			4.7			(2.6)
Fair value changes in embedded derivative liabilities, net of related amortization		(0.8)		(29.6)			(35.9)			(29.3)			13.4
Fair value changes related to the agent deferred compensation plan		0.9			(5.3)			(11.6)			(6.0)			2.5
Loss on extinguishment of debt		-			-					(7.3)			-				-
Other		1.8			1.2			0.7			(1.2)			(13.3)
Non-operating income (loss) before taxes		(36.1)		(17.8)			(49.0)			(34.4)			7.1
Income tax expense (benefit):
On non-operating income (loss)		(7.6)		(3.8)			(10.2)			(7.2)			1.4
Valuation allowance for deferred tax assets and other tax items		3.0			-					-				-				(193.7)
Net non-operating income (loss)		(31.5)		(14.0)			(38.8)			(27.2)			199.4
Net income (loss)	$	28.3		$	51.8	$	37.6	$	42.0	$	278.0

*Management believes that an analysis of earnings before net realized investment gains (losses) from sales and impairments, net change in market value of investments recognized in earnings, fair value changes in embedded derivative liabilities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, loss related to

reinsurance transaction, other non-operating items, corporate interest expense and taxes ("Adjusted EBIT," a non-GAAP financial measure) provides a clearer comparison of the

operating results of the company quarter-over-quarter because it excludes: (1) net realized investment gains (losses) from sales and impairments; (2) net change in market value of investments recognized in earnings; (3) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities that

are unrelated to the company's underlying fundamentals; (4) loss on extinguishment of debt; (5) fair value changes related to the agent deferred compensation plan; (6) loss related to reinsurance transaction; (7) charges in the valuation allowance for deferred tax assets and other tax items; and (8) other non-operating items consisting primarily of earnings attributable

to variable interest entities. The table above provides a reconciliation of Adjusted EBIT to net income.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	28

Colonial Penn Segment Adjusted EBIT Summarized by In-Force and New Business

An analysis of Adjusted EBIT for Colonial Penn, separated between in-force and new business, provides increased clarity for this segment as the vast majority of the costs to generate new business in this segment are not deferrable and Adjusted EBIT will fluctuate based on management's decisions on how much marketing costs to incur in each period. Adjusted EBIT from new business includes pre-tax revenues and expenses associated with new sales of our insurance products during the first year after the sale is completed. Adjusted EBIT from in-force business includes all pre-tax revenues and expenses associated with sales of insurance products that were completed more than one year before the end of the reporting period. The allocation of certain revenues and expenses between new and in-force business is based on estimates, which we believe are reasonable (dollars in millions):

		Adjusted EBIT from Inforce Business				Adjusted EBIT from New Business					Adjusted EBIT from Inforce and New Business
Revenues	4Q18		1Q19		2Q19		3Q19		4Q19		4Q18		1Q19		2Q19		3Q19	4Q19		4Q18		1Q19		2Q19		3Q19		4Q19
Insurance policy income	$	62.9	$	64.0	$	64.3	$	64.5	$	64.4	$	12.0	$	12.7	$	13.3	$	13.0			$	12.6	$	74.9	$	76.7	$	77.6	$	77.5	$	77.0
Net investment income		11.2			10.7			10.8			10.4			10.3			-			-			-			-				-			11.2			10.7			10.8			10.4			10.3
Fee revenue and other income		0.4			0.5			0.4			0.3			0.3			-			-			-			-				-			0.4			0.5			0.4			0.3			0.3
Total revenues		74.5			75.2			75.5			75.2			75.0			12.0			12.7			13.3			13.0				12.6			86.5			87.9			88.8			88.2			87.6
Benefits and expenses
Insurance policy benefits		42.8			48.2			44.1			42.5			42.4			7.3			8.0			8.4			8.2				7.9			50.1			56.2			52.5			50.7			50.3
Interest expense		0.4			0.4			0.4			0.4			0.3			-			-			-			-				-			0.4			0.4			0.4			0.4			0.3
Amortization		4.8			4.1			3.2			5.0			4.7			0.1			0.4			0.4			0.4				0.4			4.9			4.5			3.6			5.4			5.1
Other operating costs and expenses		8.7			8.3			8.1			8.2			8.8			17.6			19.9			18.4			19.8				16.9			26.3			28.2			26.5			28.0			25.7
Total benefits and expenses		56.7			61.0			55.8			56.1			56.2			25.0			28.3			27.2			28.4				25.2			81.7			89.3			83.0			84.5			81.4
Adjusted EBIT from Inforce Business	$	17.8		$	14.2		$	19.7		$	19.1		$	18.8		$	(13.0)		$	(15.6)		$	(13.9)		$	(15.4)			$	(12.6)		$	4.8		$	(1.4)		$	5.8		$	3.7		$	6.2

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	29

Information Related to Certain Non-GAAP Financial Measures

The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. While management believes these measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered as substitutes for the most directly comparable GAAP measures. Additional information concerning non-GAAP measures is included in our periodic filings with the Securities and Exchange Commission that are available in the "Investors - SEC Filings" section of CNO's website, www.CNOinc.com.

Operating earnings measures

Management believes that an analysis of net income applicable to common stock before net realized investment gains or losses from sales and impairments, net change in market value of investments recognized in earnings, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, loss related to reinsurance transaction, changes in the valuation allowance for deferred tax assets and other tax items and other non-operating items consisting primarily of earnings attributable to variable interest entities ("net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the Company and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the Company's underlying fundamentals.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	30

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of net income (loss) applicable to common stock to net operating income (and related per-share amounts) is as follows (dollars in millions, except per-share amounts):

	4Q18		1Q19		2Q19		3Q19		4Q19
Net income (loss) applicable to common stock	$	28.3	$	51.8	$	37.6	$	42.0	$	278.0
Non-operating items:
Net realized investment (gains) losses from sales and impairments, net of related amortization		10.5			0.7			1.7			2.6			(7.1)
Net change in market value of investments recognized in earnings		27.5			(16.6)			(6.8)			(4.7)			2.6
Fair value changes in embedded derivative liabilities, net of related amortization		0.8			29.6			35.9			29.3			(13.4)
Fair value changes related to the agent deferred compensation plan		(0.9)			5.3			11.6			6.0			(2.5)
Loss on extinguishment of debt		-			-			7.3			-			-
Loss related to reinsurance transaction		-			-			-			-			-
Other		(1.8)			(1.2)			(0.7)			1.2			13.3
Non-operating (income) loss before taxes		36.1			17.8			49.0			34.4			(7.1)
Income tax (expense) benefit:
On non-operating (income) loss		7.6			3.8			10.2			7.2			(1.4)
Valuation allowance for deferred tax assets and other tax items		(3.0)			-			-			-			193.7
Net non-operating (income) loss		31.5			14.0			38.8			27.2		(199.4)
Net operating income (a non-GAAP financial measure)	$	59.8		$	65.8		$	76.4		$	69.2		$	78.6
Per diluted share:
Net income (loss)	$	0.17	$	0.32	$	0.24	$	0.27	$	1.84
Net realized investment (gains) losses from sales and impairments (net of related amortization and taxes)		0.05			-			0.01			0.01			(0.04)
Net change in market value of investments recognized in earnings (net of taxes)		0.13			(0.08)			(0.04)			(0.02)			0.01
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)		-			0.15			0.18			0.15			(0.07)
Fair value changes related to the agent deferred compensation plan (net of taxes)		-			0.03			0.06			0.03			(0.01)
Loss on extinguishment of debt		-			-			0.03			-			-
Valuation allowance for deferred tax assets and other tax items		0.02			-			-			-			(1.28)
Other		(0.01)			(0.01)			-			0.01			0.07
Net operating income (a non-GAAP financial measure)	$	0.36		$	0.41		$	0.48		$	0.45		$	0.52

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	31

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of operating income and shares used to calculate basic and diluted operating earnings per share is as follows (dollars in millions, except per-share amounts, and shares in thousands):

			4Q18		1Q19				2Q19				3Q19		4Q19
Operating income	$	59.8			$	65.8	$	76.4	$	69.2			$	78.6
Weighted average shares outstanding for basic earnings per share		164,118					160,948				158,816				154,257				150,138
Effect of dilutive securities on weighted average shares:
Stock options, restricted stock and performance units			1,772					1,241				919				1,003				1,271
Weighted average shares outstanding for diluted earnings per share			165,890					162,189				159,735				155,260				151,409
Net operating income per diluted share	$	0.36			$	0.41	$	0.48	$	0.45			$	0.52

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	32

Information Related to Certain Non-GAAP Financial Measures

Book value per diluted share

Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock and performance units were vested and convertible securities were converted. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. Management believes this adjustment to the December 31, 2017 non-GAAP measure is useful because it removes the tax effects stranded in accumulated other comprehensive income as a result of accounting rules which require the effects of the Tax Reform Act on deferred tax balances to be recorded in earnings, even if the balance was originally recorded in accumulated other comprehensive income.

A reconciliation from book value per share to book value per diluted share, excluding accumulated other comprehensive income (loss) is as follows (dollars in millions, except per share amounts):

		4Q18			1Q19			2Q19			3Q19			4Q19
Total shareholders' equity	$	3,370.9	$	3,837.9	$	4,252.2	$	4,553.3	$	4,677.0
Shares outstanding for the period		162,201,692			159,955,172			156,768,002			152,183,491			148,084,178
Book value per share	$	20.78		$	23.99		$	27.12		$	29.92		$	31.58
Total shareholders' equity	$	3,370.9	$	3,837.9	$	4,252.2	$	4,553.3	$	4,677.0
Less accumulated other comprehensive income		(177.7)			(654.9)			(1,098.2)			(1,442.9)			(1,372.5)
Adjusted shareholders' equity excluding AOCI
$	3,193.2		$	3,183.0		$	3,154.0		$	3,110.4		$	3,304.5
Shares outstanding for the period		162,201,692			159,955,172			156,768,002			152,183,491			148,084,178
Dilutive common stock equivalents related to:
Stock options, restricted stock and performance units		1,391,458			1,168,027			894,456			1,059,278			1,499,372
Diluted shares outstanding
	163,593,150			161,123,199			157,662,458			153,242,769			149,583,550
Book value per diluted share (a non-GAAP financial measure)	$	19.52	$	19.76	$	20.00	$	20.30	$	22.09

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	33

Information Related to Certain Non-GAAP Financial Measures

Interest-adjusted benefit ratios

The interest-adjusted benefit ratio (a non-GAAP measure) is calculated by dividing the product's insurance policy benefits less imputed interest income on the accumulated assets backing the insurance liabilities by insurance policy income. Interest income is an important factor in measuring the performance of longer duration health products. The net cash flows generally cause an accumulation of amounts in the early years of a policy (accounted for as reserve increases), which will be paid out as benefits in later policy years (accounted for as reserve decreases). Accordingly, as the policies age, the benefit ratio will typically increase, but the increase in the change in reserve will be partially offset by the imputed interest income earned on the accumulated assets. The interest-adjusted benefit ratio reflects the effects of such interest income offset. Since interest income is an important factor in measuring the performance of these products, management believes a benefit ratio, which includes the effect of interest income, is useful in analyzing product performance.

($ millions)

Bankers Life		4Q18		1Q19		2Q19		3Q19		4Q19
Long-term care benefit ratios
Earned premium	$	63.8	$	63.7	$	63.5	$	63.7	$	63.4
Benefit ratio before imputed interest income on reserves		117.9%		120.6%		122.1%		123.6%		120.4%
Interest-adjusted benefit ratio		74.7%		77.2%		77.5%		78.7%		75.0%
Underwriting margin (earned premium plus imputed interest income on reserves less policy benefits)	$	16.2	$	14.5	$	14.3	$	13.6	$	15.8
Washington National
Supplemental health benefit ratios
Earned premium	$	156.0	$	155.6	$	156.7	$	157.6	$	159.7
Benefit ratio before imputed interest income on reserves		77.7%		77.6%		80.2%		79.5%		78.1%
Interest-adjusted benefit ratio		53.8%		53.4%		56.2%		55.4%		54.2%
Underwriting margin (earned premium plus imputed interest income on reserves less policy benefits)	$	72.1	$	72.4	$	68.7	$	70.4	$	73.2

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	34

Information Related to Certain Non-GAAP Financial Measures

Operating return measures

Management believes that an analysis of net income applicable to common stock before net realized investment gains or losses from sales and impairments, net change in market value of investments recognized in earnings, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, fair value changes related to the agent deferred compensation plan, loss on extinguishment of debt, loss on reinsurance transaction, changes in the valuation allowance for deferred tax assets and other tax items, loss on extinguishment of debt and other non-operating items consisting primarily of earnings attributable to variable interest entities ("net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the Company and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the Company's underlying fundamentals.

Management also believes that an operating return, excluding significant items, is important as the impact of these items enhances the understanding of our operating results.

This non-GAAP financial measure also differs from return on equity because accumulated other comprehensive income (loss) has been excluded from the value of equity used to determine this ratio. Management believes this non-GAAP financial measure is useful because it removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in the estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made by management.

In addition, our equity includes the value of significant net operating loss carryforwards (included in income tax assets). In accordance with GAAP, these assets are not discounted, and accordingly will not provide a return to shareholders (until after it is realized as a reduction to taxes that would otherwise be paid). Management believes that excluding this value from the equity component of this measure enhances the understanding of the effect these non-discounted assets have on operating returns and the comparability of these measures from period-to-period. Operating return measures are used in measuring the performance of our business units and are used as a basis for incentive compensation.

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	35

Information Related to Certain Non-GAAP Financial Measures

The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) operating return, excluding significant items, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (iii) return on equity are as follows (dollars in millions):

					Trailing Twelve Months Ended
		4Q18			1Q19			2Q19			3Q19			4Q19
Operating income	$	303.1	$	295.0	$	289.5	$	271.2	$	290.0
Operating income, excluding significant items	$	317.3		$	310.1		$	304.6		$	286.3		$	282.1
Net Income (loss)	$	(315.0)	$	(347.5)	$	(412.1)	$	159.7	$	409.4
Average common equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)	$	3,086.7		$	2,942.5		$	2,782.7		$	2,697.2		$	2,703.9
Average common shareholders' equity	$	4,200.3	$	3,918.3	$	3,795.6	$	3,886.9	$	4,166.8
Operating return on equity, excluding accumulated other
comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure)		9.8%			10.0%			10.4%			10.1%			10.7%
Operating return, excluding significant items, on equity, excluding
accumulated other comprehensive income (loss) and net
operating loss carryforwards (a non-GAAP financial measure)		10.3%			10.5%			10.9%			10.6%			10.4%
Return on equity		-7.5%			-8.9%			-10.9%			4.1%			9.8%

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CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	36

Information Related to Certain Non-GAAP Financial Measures

The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income(loss) (dollars in millions):

							Net Operating
					Net Operating		Income,
						income,		excluding				Net
						excluding		significant			income (loss) -
	Net Operating	Significant		significant	items - trailing		Net		trailing
		income		items (a)		items	four quarters	income (loss)	four quarters
1Q18	$	73.9	$	(0.9)	$	73.0	$	299.6	$	84.3	$	197.6
2Q18		81.9		-		81.9		309.0		102.2		216.4
3Q18		87.5		-		87.5		321.8		(529.8)		(414.2)
4Q18		59.8		15.1		74.9		317.3		28.3		(315.0)
1Q19		65.8		-		65.8		310.1		51.8		(347.5)
2Q19		76.4		-		76.4		304.6		37.6		(412.1)
3Q19		69.2		-		69.2		286.3		42.0		159.7
4Q19		78.6		(7.9)		70.7		282.1		278.0		409.4

(a) The significant items have been discussed in prior press releases.

(Continued on next page)

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	37

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of pretax operating earnings (a non-GAAP financial measure) to net income (loss) is as follows (dollars in millions):

					Twelve Months Ended
		4Q18			1Q19			2Q19			3Q19			4Q19
Pretax operating earnings (a non-GAAP financial measure)	$	381.2	$	369.7	$	362.3	$	341.2	$	368.3
Income tax expense		(78.1)			(74.7)			(72.8)			(70.0)			(78.3)
Operating return		303.1			295.0			289.5			271.2			290.0
Non-operating items:
Net realized investment gains (losses) from sales and impairments, net of related amortization		37.9			36.7			24.1			(15.5)			2.1
Net change in market value of investments recognized in earnings		(48.8)			(16.5)			(9.4)			0.6			25.5
Fair value changes in embedded derivative liabilities, net of related amortization		55.5			0.8			(43.4)			(95.6)			(81.4)
Fair value changes and amendment related to the agent deferred compensation plan		11.9			6.6			(16.0)			(22.0)			(20.4)
Loss on extinguishment of debt		-			-			(7.3)			(7.3)			(7.3)
Loss on reinsurance transaction		(704.2)			(704.2)			(704.2)			-			-
Other		1.7			(0.4)			4.5			2.5			(12.6)
Non-operating loss before taxes		(646.0)			(677.0)			(751.7)			(137.3)			(94.1)
Income tax expense (benefit):
On non-operating loss		(135.7)			(142.3)			(157.9)			(28.8)			(19.8)
Valuation allowance for deferred tax assets and other tax items		107.8			107.8			107.8			3.0			(193.7)
Net non-operating loss		(618.1)			(642.5)			(701.6)			(111.5)			119.4
Net income (loss)	$	(315.0)	$	(347.5)	$	(412.1)	$	159.7	$	409.4

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CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	38

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):

		1Q17			2Q17			3Q17			4Q17
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)	$	3,236.6	$	3,263.2	$	3,335.0	$	3,225.6
Net operating loss carryforwards		640.6			621.6			613.1			409.8
Accumulated other comprehensive income		729.6			894.5			933.6			1,212.1
Common shareholders' equity	$	4,606.8	$	4,779.3	$	4,881.7	$	4,847.5
		1Q18			2Q18			3Q18			4Q18
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)	$	3,318.7	$	3,366.0	$	2,705.8	$	2,687.3
Net operating loss carryforwards		404.2			388.7			510.6			505.9
Accumulated other comprehensive income		894.3			700.2			403.5			177.7
Common shareholders' equity	$	4,617.2	$	4,454.9	$	3,619.9	$	3,370.9
		1Q19			2Q19			3Q19			4Q19
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)	$	2,703.4	$	2,702.9	$	2,685.0	$	2,761.9
Net operating loss carryforwards		479.6			451.1			425.4			542.6
Accumulated other comprehensive income		654.9			1,098.2			1,442.9			1,372.5
Common shareholders' equity	$	3,837.9	$	4,252.2	$	4,553.3	$	4,677.0

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	39

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to common shareholders' equity, is as follows (dollars in millions):

						Trailing Four Quarter Average
			4Q18			1Q19			2Q19			3Q19			4Q19
Consolidated capital, excluding accumulated other comprehensive
income (loss) and net operating loss carryforwards
(a non-GAAP financial measure)	$	3,086.7	$	2,942.5	$	2,782.7	$	2,697.2	$	2,703.9
Net operating loss carryforwards		440.4			461.8			479.0			476.2			470.1
Accumulated other comprehensive income		673.2			514.0			533.8			713.5			992.8
Common shareholders' equity	$	4,200.3	$	3,918.3	$	3,795.5	$	3,886.9	$	4,166.8

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	40

Information Related to Certain Non-GAAP Financial Measures

Debt to capital ratio, excluding accumulated other comprehensive income (loss)

The debt to capital ratio, excluding accumulated other comprehensive income (loss), differs from the debt to capital ratio because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP financial measure is useful because it removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in the estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made by management. A reconciliation of these ratios is as follows (dollars in millions):

		4Q18			1Q19			2Q19			3Q19			4Q19
Corporate notes payable	$	916.8	$	917.3	$	988.3	$	988.7	$	989.1
Total shareholders' equity		3,370.9			3,837.9			4,252.2			4,553.3			4,677.0
Total capital	$	4,287.7	$	4,755.2	$	5,240.5	$	5,542.0	$	5,666.1
Corporate debt to capital		21.4%			19.3%			18.9%			17.8%			17.5%
Corporate notes payable	$	916.8	$	917.3	$	988.3	$	988.7	$	989.1
Total shareholders' equity		3,370.9			3,837.9			4,252.2			4,553.3			4,677.0
Less accumulated other comprehensive income		(177.7)			(654.9)			(1,098.2)			(1,442.9)			(1,372.5)
Total capital	$	4,110.0	$	4,100.3	$	4,142.3	$	4,099.1	$	4,293.6
Debt to total capital ratio, excluding AOCI (a
non-GAAP financial measure)		22.3%			22.4%			23.9%			24.1%			23.0%

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	41

Information Related to Certain Non-GAAP Financial Measures

The following summarizes our estimate of the impact of lower general account asset investment income and changes in amounts impacting spreads on 4Q19 net income compared to 4Q18 net income (dollars in millions, except per share data):

		4Q19			4Q18		Difference
Net investment income on general account assets	$	272.0	$	290.4	$	(18.4)
Impact of amounts credited and cost of options impacting spread:
Cost of interest credited to policyholders		(25.9)			(27.4)			1.5
Cost of options to fund index credits, net of forfeitures		(24.8)			(25.9)			1.1
Subtotal		221.3			237.1			(15.8)
Tax expense (benefit)		46.5			49.8			(3.3)
Impact on net income, net of income taxes	$	174.8		$	187.3		$	(12.5)
Per diluted share impact, based on 4Q19 weighted average shares oustanding (a non-
					$	(0.08)
GAAP financial measure)

CNO Financial Group | Fourth Quarter 2019 Earnings | February 11, 2020	42