Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 28, 2014

CNO Financial Group, Inc.

(Exact Name of Registrant as Specified in Charter)



Delaware	001-31792	75-3108137
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

11825 North Pennsylvania Street

Carmel, Indiana 46032

(Address of Principal Executive Offices) (Zip Code)

(317) 817-6100

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02.	Results of Operations and Financial Condition.

On October 28, 2014, CNO Financial Group, Inc. (the "Company") issued: (i) a press release announcing its financial results for the quarter ended September 30, 2014, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference; and (ii) additional information related to the Company's financial and operating results for the quarter ended September 30, 2014, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The information contained under Item 2.02 in this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.



Item 9.01(d).	Financial Statements and Exhibits.

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



99.1	Press release dated October 28, 2014 related to financial results for the quarter ended September 30, 2014.
99.2	Quarterly Financial Supplement - 3Q2014.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



	CNO Financial Group, Inc.

Date: October 28, 2014
	By:	/s/ John R. Kline
		John R. Kline
		Senior Vice President and Chief Accounting Officer

Exhibit 99.1

For Immediate Release



Contact:	(News Media) Jennifer Born +1.312.396.7089
	(Investors) Erik Helding +1.317.817.4760

CNO Financial Group Reports Third Quarter 2014 Results

Growth in Sales, Collected Premiums and Operating Earnings

Continued Strength in Key Capital Ratios

Carmel, Ind., October 28, 2014 - CNO Financial Group, Inc. (NYSE: CNO) today announced third quarter of 2014 operating earnings (1) of $76.6 million, or 35 cents per diluted share, compared to $72.7 million, or 32 cents per diluted share, in the third quarter of 2013.

"The strength of our business franchise produced growth in sales, collected premiums, earnings and continued capital strength supporting further return of capital to shareholders in the quarter," said Ed Bonach, CEO of CNO. "While pleased with consistent sales growth at Washington National and continued strong recovery at Colonial Penn, we are taking steps to gain back sales momentum in our Bankers Life segment as we end 2014 and head into 2015."

Third Quarter 2014 Highlights


•	Sales, as defined by total new annualized premium ("NAP") (2): $103.8 million, up 2% from 3Q13


•	Collected premium from our continuing operating segments (3): $827.1 million up 2% from 3Q13


•	Net income per diluted share: 54 cents in 3Q14 (including 8 cents from the release of the valuation allowance for deferred taxes) compared to $1.23 in 3Q13 (including 90 cents from the release of the valuation allowance for deferred taxes and other tax items)


•	Net operating income (1) per diluted share: 35 cents in 3Q14 compared to 32 cents in 3Q13


•	Unrestricted cash and investments held by our holding company were $432 million at September 30, 2014, reflecting the proceeds from the sale of Conseco Life Insurance Company ("CLIC")


•	Securities repurchases, common stock dividends and debt payments were $189.4 million in 3Q14, including the repurchase of all outstanding warrants (equivalent to 3.3 million shares of common stock) for $57.4 million

Nine-month 2014 Highlights


•	Sales, as defined by total NAP (2): $310.6 million, up 3% from the first nine months of 2013


•	Collected premium from our continuing operating segments (3): $2,474.5 million up 2% from the first nine months of 2013


•	Net income (loss) per diluted share: (15) cents in the first nine months of 2014 (including $(1.26) from the net loss on the sale of CLIC and gain on reinsurance transactions) compared to $1.59 in the first nine months of 2013 (including 95 cents from the release of the valuation allowance for deferred taxes and other tax items)


•	Net operating income (1) per diluted share: 93 cents in the first nine months of 2014 compared to 78 cents in the first nine months of 2013


•	Consolidated risk-based capital ratio was estimated at 425% at September 30, 2014, reflecting statutory operating earnings of $285 million and net dividends to the holding company of $174 million during the first nine months of 2014

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CNO Financial (2)

October 28, 2014

Quarterly Segment Operating Results



	Three months ended
	September 30,
	2014			2013
	(Dollars in millions, except per share data)
EBIT (5):
Bankers Life	$	111.8		$	86.3
Washington National	27.6			33.0
Colonial Penn	.4			(4.2		)
Other CNO Business:
Loss from the long-term care business reinsured in 4Q13	—			(1.0		)
Overhead expense of CLIC expected to continue after the sale	—			(4.7		)
EBIT from business segments continuing after the CLIC sale	139.8			109.4
Corporate Operations, excluding corporate interest expense	(9.1		)	9.4
EBIT from operations continuing after the CLIC sale	130.7			118.8
Corporate interest expense	(10.9		)	(11.7		)
Operating earnings before taxes	119.8			107.1
Tax expense on operating income	43.2			34.4
Net operating income (1)	76.6			72.7
Earnings of CLIC prior to being sold (net of taxes)	—			5.5
Adjustment to loss on sale of CLIC and gain on reinsurance transaction (including impact of taxes)	22.9			—
Net realized investment gains (net of related amortization and taxes)	2.6			(1.1		)
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	—			2.2
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(2.4		)	(3.0		)
Net revenue pursuant to transition and support services agreements (net of taxes)	.9			—
Valuation allowance for deferred tax assets and other tax items	16.8			206.7
Net income	$	117.4		$	283.0

Per diluted share:
Net operating income	$	.35		$	.32
Earnings of CLIC prior to being sold (net of taxes)	—			.02
Adjustment to loss on sale of CLIC and gain on reinsurance transaction (including impact of taxes)	.11			—
Net realized investment gains (net of related amortization and taxes)	.01			(.01		)
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	—			.01
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(.01		)	(.01		)
Valuation allowance for deferred tax assets and other tax items	.08			.90
Net income	$	.54		$	1.23

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CNO Financial (3)

October 28, 2014

The following table summarizes the financial impact of significant items on our 3Q14 net operating income (dollars in millions, except per share amounts):



	Three months ended
	September 30, 2014*
	Actual results			Significant items			Excluding significant items
Net Operating Income (1):
Bankers Life	$	111.8		$	(13.5	)	$	98.3
Washington National	27.6			2.5			30.1
Colonial Penn	.4			—			.4
EBIT from business segments continuing after the CLIC sale	139.8			(11.0		)	128.8
Corporate Operations, excluding corporate interest expense	(9.1		)	—			(9.1		)
EBIT from operations continuing after the CLIC sale (5)	130.7			(11.0		)	119.7
Corporate interest expense	(10.9		)	—			(10.9		)
Operating earnings before taxes	119.8			(11.0		)	108.8
Tax expense on operating income	43.2			(3.9		)	39.3
Net operating income	$	76.6		$	(7.1	)	$	69.5

Net operating income per diluted share	$	.35		$	(.03	)	$	.32

The significant items in 3Q14 included: (i) $11.0 million of favorable reserve developments in Bankers Life's long-term care block (including $2.8 million of favorable one-time catch-up reserve releases related to the use of a new process to identify changes in the status of our insureds in a more timely manner); (ii) $2.5 million of favorable reserve developments in Bankers Life's Medicare supplement block; and (iii) $2.5 million of unfavorable premium refunds in Washington National's supplemental health insurance block (related to the same process used on Bankers Life's long-term care block to identify changes in the status of our insureds in a more timely manner).

* See page 11 for the table of Net Operating Income Excluding Significant Items for the three months ended September 30, 2013.

Segment Results

Bankers Life markets and distributes a variety of insurance products to middle-income Americans at or near retirement through a dedicated field force of career agents. NAP in 3Q14 was $61.8 million, down $.7 million from 3Q13. NAP for the nine months ended September 30, 2014, was $188.0 million, up 1 percent from the same period in 2013. Collected premiums were up 2 percent in 3Q14 compared to 3Q13, driven by increased sales over the last 12 months and favorable persistency. Annuity account values, on which spread income is earned, increased 2% to $7.5 billion in 3Q14 compared to 3Q13. Weakness in sales results were primarily driven by low levels of recruiting year-to-date which led to a 6% decrease in average agent count, partially offset by continued improvements in productivity. Full year 2014 sales growth is now expected to be in the 0% to 3% range.

Pre-tax operating earnings in 3Q14 compared to 3Q13 were up $25.5 million, or 30 percent. Earnings in 3Q14 reflect favorable annuity, Medicare supplement and long-term care margins.

Pre-tax operating earnings in 3Q14 of $111.8 million included: (i) $11.0 million of favorable reserve developments in the long-term care block, including $2.8 million of one-time catch-up reserve releases related to the use of a new process to identify changes in the status of our insureds in a more timely manner; and (ii) $2.5 million of favorable reserve developments in the Medicare supplement block.

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CNO Financial (4)

October 28, 2014

Pre-tax operating earnings in 3Q13 of $86.3 million included $5.7 million of favorable reserve developments in the Medicare supplement block.

Pre-tax operating earnings in 3Q14 included approximately $3 million of additional income (including the impact of favorable mortality of $.5 million) from the recapture of a block of life insurance business previously ceded to Wilton Reassurance Company (“Wilton Re”). This increase to pre-tax operating earnings was partially offset by approximately $2 million of overhead expenses that were previously allocated to the Other CNO Business segment in quarters prior to 2014 and have continued after the completion of the sale of CLIC.

Washington National markets and distributes supplemental health and life insurance to middle-income consumers through a wholly-owned subsidiary and independent insurance agencies. NAP in 3Q14 was $25.6 million, up 7 percent from 3Q13 driven by strong supplemental health sales in the individual market through Performance Matters Associates, our wholly-owned marketing organization. Collected premiums from the segment's supplemental health block were up 4 percent in 3Q14 compared to 3Q13, driven by strong sales and persistency.

Pre-tax operating earnings in 3Q14 compared to 3Q13 were down $5.4 million, or 16 percent, primarily resulting from elevated loss ratios in the supplemental health block.

Pre-tax operating earnings in 3Q14 of $27.6 million were reduced by $2.5 million of one-time catch-up premium refunds in the supplemental health insurance block related to the use of a new process to identify changes in the status of our insureds in a more timely manner. After adjusting for this significant item, the interest-adjusted benefit ratio for the supplemental health block was 54.9 percent, reflecting elevated claims in the quarter. We continue to expect that this block's interest-adjusted benefit ratio will be in the 54 percent range for the year.

Pre-tax operating earnings in 3Q14 also included approximately $2 million of overhead expenses that were previously allocated to the Other CNO Business segment in quarters prior to 2014 and have continued after the completion of the sale of CLIC.

Colonial Penn markets primarily graded benefit and simplified issue life insurance directly to customers through television advertising, direct mail, the internet and telemarketing. NAP in 3Q14 was $16.4 million, up 7 percent from 3Q13, reflecting increased sales of both graded benefit and simplified issue life insurance products, including an increase in sales through the internet. Collected premiums were up 6 percent in 3Q14 compared to 3Q13, driven by increased sales and steady persistency.

Pre-tax operating earnings in 3Q14 of $.4 million were up $4.6 million compared to 3Q13, reflecting continued growth in the in-force block, favorable policy benefits and a modest increase in the deferral of acquisition costs due to a slight shift to deferrable direct mail marketing activities. In-force EBIT was $14.9 million, up 16 percent from 3Q13, reflecting the growth in the block.

Recognizing the accounting standard related to deferred acquisition costs, the amount of our investment in new business during a particular period will have a significant impact on this segment's results. We expect this segment to report approximately break-even results in 2014.

Corporate Operations includes our investment advisory subsidiary and corporate expenses.

This segment's earnings included unfavorable investment returns in 3Q14 and favorable investment returns in 3Q13, reflecting market volatility. Pre-tax operating earnings in 3Q13 also reflected a decrease in expenses of $9.8 million related to the impact of changes in interest rates on the values of liabilities for agent deferred compensation and former executive retirement annuities. We have elected to recognize the change in the value of these liabilities through earnings as interest rates and mortality assumptions change.

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CNO Financial (5)

October 28, 2014

Non-Operating Items Related to the Sale of CLIC and Reinsurance Transaction

On July 1, 2014, we completed the previously announced sale of CLIC to Wilton Re. In 1Q14, we recognized an estimated loss on the CLIC transaction of $298 million, net of income taxes. In 3Q14, we recognized a reduction to the loss on the sale of CLIC of $6 million to reflect our current estimate. The ultimate loss we recognize is subject to additional adjustments based on the determination of the final sales price and net proceeds, expected to be completed in 4Q14.

As previously announced, concurrent with the sale of CLIC, Bankers Life recaptured the life insurance business that had been reinsured to Wilton Re. The results for 3Q2014 include a $16.9 million gain related to such recapture.

The earnings related to the CLIC business prior to being sold are also reflected as non-operating items. Such earnings, net of taxes, were $5.5 million in 3Q13.

Other Non-Operating Items

Net realized investment gains in 3Q14 were $2.6 million (net of related amortization and taxes) including total other-than-temporary impairment losses of $2.8 million recorded in earnings. Net realized investment losses in 3Q13 were $1.1 million (net of related amortization and taxes) including total other-than-temporary impairment losses of $2.9 million recorded in earnings.

During 3Q13, we recognized an increase in earnings of $2.2 million resulting from changes in the estimated fair value of embedded derivative liabilities related to our fixed index annuities, net of related amortization and income taxes. Such amount reflects the change in market interest rates used to determine the derivative's estimated fair value.

During 3Q14, we recognized $.9 million (net of taxes) of net revenue pursuant to transition and special support services agreements with Wilton Re subsequent to the sale of CLIC.

In 3Q14, we reduced the valuation allowance for deferred tax assets by $16.8 million, primarily resulting from the impact of our higher levels of income on projected future taxable income used to determine recoverable net operating loss carryforwards. In 3Q13, we recognized a reduction to the valuation allowance for deferred tax assets and other favorable tax items totaling $206.7 million. Favorable tax items in 3Q13 included: (i) a $127.8 million reduction to the deferred tax valuation allowance resulting from the impact of our higher levels of income on projected future taxable income used to determine recoverable net operating loss and capital loss carryforwards; (ii) a $71.8 million reduction in the deferred tax valuation allowance resulting from the previously announced settlement agreement with the IRS related to the classification of a portion of the cancellation of indebtedness income we recognized as a result of the bankruptcy of our predecessor; (iii) a $14.3 million tax benefit resulting from a change in the deductibility of a portion of the repurchase premium related to the repurchase of our 7.0% convertible debentures; partially offset by; (iv) $7.2 million of unfavorable impacts from anticipated IRS audit adjustments related to their examination of our 2004 and 2008 through 2010 tax returns.

Statutory (based on non-GAAP measures) and GAAP Capital Information

Our consolidated statutory risk-based capital ratio was estimated at 425% at September 30, 2014, reflecting 3Q14 consolidated statutory operating earnings of $60 million and the payment of net dividends to the holding company of $59.0 million during the quarter and $174 million year-to-date.

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CNO Financial (6)

October 28, 2014

During the third quarter of 2014, we repurchased $164.9 million of common stock and equivalents under our securities repurchase program (including $4.5 million of repurchases settled in 4Q14). We repurchased 9.6 million common shares and equivalents (including all outstanding warrants) at an average cost of $17.26 per share. Total securities repurchased under the program in 2014 through September 30, totaled $301.5 million. CNO anticipates repurchasing securities in the range of $350 million to $400 million during 2014, absent compelling alternatives. As of September 30, 2014, we had 207.6 million shares outstanding and had authority to repurchase up to an additional $95.9 million of our common stock. During 3Q14, we also paid common stock dividends of $12.5 million.

Book value per diluted share, excluding accumulated other comprehensive income (loss) (6), was $18.39 at September 30, 2014, compared to $18.62 at December 31, 2013. The decrease primarily reflects the loss recognized on the sale of CLIC, partially offset by our 2014 operating earnings.

Our debt-to-total capital ratio, excluding accumulated other comprehensive income (4) at September 30, 2014, was 17.4 percent, an increase of 50 basis points from December 31, 2013, reflecting the decrease to capital from the loss recognized on the sale of CLIC and debt repayments of $43.4 million. Unrestricted cash and investments held by our holding company were $432 million at September 30, 2014, compared to $309 million at December 31, 2013, reflecting the proceeds from the sale of CLIC, partially offset by common stock and equivalent repurchases and dividend and debt payments.

Conference Call

The Company will host a conference call to discuss results on October 29, 2014 at 11:00 a.m. Eastern Time. The webcast can be accessed through the Investors section of the company's website: http://ir.CNOinc.com. Participants should go to the website at least 15 minutes before the event to register and download any necessary audio software. During the call, we will be referring to a presentation that will be available the morning of the call at the Investors section of the company's website.

About CNO Financial Group

CNO Financial Group, Inc. (NYSE: CNO) is a holding company. Our insurance subsidiaries - principally Bankers Life and Casualty Company, Colonial Penn Life Insurance Company and Washington National Insurance Company - primarily serve middle-income pre-retiree and retired Americans by helping them protect against financial adversity and provide for a more secure retirement. For more information, visit CNO online at www.CNOinc.com.

- Tables Follow -

CNO Financial (7)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Dollars in millions)

(unaudited)



	September 30, 2014		December 31, 2013
ASSETS
Investments:
Fixed maturities, available for sale, at fair value (amortized cost: September 30, 2014 - $18,570.0; December 31, 2013 - $21,891.8)	$	20,610.5	$	23,204.6
Equity securities at fair value (cost: September 30, 2014 - $360.8; December 31, 2013 - $206.7)	372.8		223.0
Mortgage loans	1,621.8		1,729.5
Policy loans	106.2		277.0
Trading securities	235.0		247.6
Investments held by variable interest entities	1,343.0		1,046.7
Other invested assets	394.6		423.3
Total investments	24,683.9		27,151.7
Cash and cash equivalents - unrestricted	452.1		699.0
Cash and cash equivalents held by variable interest entities	150.7		104.3
Accrued investment income	255.4		286.9
Present value of future profits	505.1		679.3
Deferred acquisition costs	746.6		968.1
Reinsurance receivables	3,023.0		3,392.1
Income tax assets, net	731.1		1,147.2
Assets held in separate accounts	6.9		10.3
Other assets	420.2		341.7
Total assets	$	30,975.0	$	34,780.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Liabilities for insurance products:
Policyholder account balances	$	10,659.2	$	12,776.4
Future policy benefits	10,519.8		11,222.5
Liability for policy and contract claims	464.4		566.0
Unearned and advanced premiums	270.3		300.6
Liabilities related to separate accounts	6.9		10.3
Other liabilities	704.0		590.6
Payable to reinsurer	—		590.3
Investment borrowings	1,519.4		1,900.0
Borrowings related to variable interest entities	1,295.0		1,012.3
Notes payable – direct corporate obligations	814.0		856.4
Total liabilities	26,253.0		29,825.4
Commitments and Contingencies
Shareholders' equity:
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: September 30, 2014 – 207,640,050; December 31, 2013 – 220,323,823)	2.1		2.2
Additional paid-in capital	3,803.7		4,092.8
Accumulated other comprehensive income	859.3		731.8
Retained earnings (accumulated deficit)	56.9		128.4
Total shareholders' equity	4,722.0		4,955.2
Total liabilities and shareholders' equity	$	30,975.0	$	34,780.6

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CNO Financial (8)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(Dollars in millions, except per share data)

(unaudited)



	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
Revenues:
Insurance policy income	$	632.1		$	686.1		$	1,997.0		$	2,068.6
Net investment income:
General account assets	300.1			350.7			995.6			1,051.4
Policyholder and reinsurer accounts and other special-purpose portfolios	14.8			49.0			82.9			158.5
Realized investment gains (losses):
Net realized investment gains, excluding impairment losses	6.8			2.8			54.5			21.9
Other-than-temporary impairment losses:
Total other-than-temporary impairment losses	(2.8		)	(2.9		)	(14.7		)	(3.5		)
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income	—			—			—			—
Net impairment losses recognized	(2.8		)	(2.9		)	(14.7		)	(3.5		)
Total realized gains (losses)	4.0			(.1		)	39.8			18.4
Fee revenue and other income	16.0			8.1			29.4			21.0
Total revenues	967.0			1,093.8			3,144.7			3,317.9
Benefits and expenses:
Insurance policy benefits	565.5			702.2			1,946.9			2,129.5
Net loss on sale of CLIC and gain on reinsurance transactions	(32.1		)	—			242.7			—
Interest expense	21.9			25.8			70.8			80.0
Amortization	65.8			61.4			197.4			219.9
Loss on extinguishment or modification of debt	—			—			.6			65.4
Other operating costs and expenses	191.5			190.0			587.1			559.4
Total benefits and expenses	812.6			979.4			3,045.5			3,054.2
Income (loss) before income taxes	154.4			114.4			99.2			263.7
Income tax expense (benefit):
Tax expense on period income	53.8			38.1			133.1			113.9
Valuation allowance for deferred tax assets and other tax items	(16.8		)	(206.7		)	(1.4		)	(222.2		)
Net income (loss)	$	117.4		$	283.0		$	(32.5	)	$	372.0
Earnings per common share:
Basic:
Weighted average shares outstanding	210,525,000			222,876,000			215,790,000			221,819,000
Net income (loss)	$	.56		$	1.27		$	(.15	)	$	1.68
Diluted:
Weighted average shares outstanding	215,458,000			229,347,000			215,790,000			234,569,000
Net income (loss)	$	.54		$	1.23		$	(.15	)	$	1.59

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CNO Financial (9)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

EBIT FROM BUSINESS SEGMENTS

SUMMARIZED BY IN-FORCE AND NEW BUSINESS (7)

(Dollars in millions)



	Three months ended						Nine months ended
	September 30,						September 30,
	2014			2013			2014			2013
EBIT (5) from In-force and New Business
Bankers Life segment:
In-Force Business	$	145.8		$	118.9		$	392.5		$	324.6
New Business	(34.0		)	(32.6		)	(109.1		)	(97.1		)
Total	$	111.8		$	86.3		$	283.4		$	227.5

Washington National segment:
In-Force Business	$	30.1		$	35.1		$	98.8		$	110.3
New Business	(2.5		)	(2.1		)	(7.8		)	(7.5		)
Total	$	27.6		$	33.0		$	91.0		$	102.8

Colonial Penn segment:
In-Force Business	$	14.9		$	12.9		$	38.3		$	34.1
New Business	(14.5		)	(17.1		)	(40.3		)	(42.5		)
Total	$	.4		$	(4.2	)	$	(2.0	)	$	(8.4	)

Other CNO Business:
In-Force Business	$	—		$	(5.7	)	$	—		$	(20.2	)
New Business	—			—			—			—
Total	$	—		$	(5.7	)	$	—		$	(20.2	)

Total Business segments:
In-Force Business	$	190.8		$	161.2		$	529.6		$	448.8
New Business	(51.0		)	(51.8		)	(157.2		)	(147.1		)
Total EBIT from business segments continuing after the CLIC sale	$	139.8		$	109.4		$	372.4		$	301.7

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CNO Financial (10)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

SEGMENT OPERATING RESULTS

(Dollars in millions, except per share data)



	Nine months ended
	September 30,
	2014			2013
	(Dollars in millions, except per share data)
EBIT (5):
Bankers Life	$	283.4		$	227.5
Washington National	91.0			102.8
Colonial Penn	(2.0		)	(8.4		)
Other CNO Business:
Loss from the long-term care business reinsured in 4Q13	—			(5.9		)
Overhead expense of CLIC expected to continue after the sale	—			(14.3		)
EBIT from business segments continuing after the CLIC sale	372.4			301.7
Corporate Operations, excluding corporate interest expense	(30.6		)	14.8
EBIT from operations continuing after the CLIC sale	341.8			316.5
Corporate interest expense	(33.1		)	(39.9		)
Operating earnings before taxes	308.7			276.6
Tax expense on operating income	108.5			94.4
Net operating income (1)	200.2			182.2
Earnings of CLIC prior to being sold (net of taxes)	15.2			15.8
Net loss on sale of CLIC and gain on reinsurance transactions (including impact of taxes)	(272.6		)	—
Net realized investment gains (net of related amortization and taxes)	23.7			7.7
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	(12.0		)	15.6
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(8.3		)	(7.5		)
Net revenue pursuant to transition and support services agreements (net of taxes)	.9			—
Loss on extinguishment or modification of debt (net of taxes)	(.4		)	(64.0		)
Valuation allowance for deferred tax assets and other tax items	20.8			222.2
Net income (loss)	$	(32.5	)	$	372.0

Per diluted share:
Net operating income	$	.93		$	.78
Earnings of CLIC prior to being sold (net of taxes)	.07			.07
Net loss on sale of CLIC and gain on reinsurance transactions (including impact of taxes)	(1.26		)	—
Net realized investment gains (net of related amortization and taxes)	.11			.03
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	(.06		)	.06
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(.04		)	(.03		)
Loss on extinguishment or modification of debt (net of taxes)	—			(.27		)
Valuation allowance for deferred tax assets and other tax items	.10			.95
Net income (loss)	$	(.15	)	$	1.59

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CNO Financial (11)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

NET OPERATING INCOME EXCLUDING SIGNIFICANT ITEMS*

(Dollars in millions, except per share data)



	Three months ended
	September 30, 2013*
	Actual results			Significant items			Excluding significant items
Net Operating Income (1):
Bankers Life	$	86.3		$	(5.7	)	$	80.6
Washington National	33.0			—			33.0
Colonial Penn	(4.2		)	—			(4.2		)
Other CNO Business:
Loss from the long-term care business reinsured in 4Q13	(1.0		)	—			(1.0		)
Overhead expense of CLIC expected to continue after the sale	(4.7		)	—			(4.7		)
EBIT from business segments continuing after the CLIC sale	109.4			(5.7		)	103.7
Corporate Operations, excluding corporate interest expense	9.4			(9.8		)	(.4		)
EBIT from operations continuing after the CLIC sale (5)	118.8			(15.5		)	103.3
Corporate interest expense	(11.7		)	—			(11.7		)
Operating earnings before taxes	107.1			(15.5		)	91.6
Tax expense on operating income	34.4			(5.6		)	28.8
Net operating income	$	72.7		$	(9.9	)	$	62.8

Net operating income per diluted share	$	.32		$	(.05	)	$	.27

* This table summarizes the financial impacts of significant items (as described in the segment results section of this press release) on our 3Q13 net operating income.

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CNO Financial (12)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

COLLECTED PREMIUMS

FROM CONTINUING OPERATING SEGMENTS

(Dollars in millions)



	Three months ended
	September 30,
	2014		2013
Bankers Life segment:
Medicare supplement	$	184.5	$	182.0
Long-term care	124.0		131.1
PDP and other health	2.0		—
Supplemental health	4.1		2.8
Life	113.9		94.2
Annuity	181.5		190.2
Total	610.0		600.3
Washington National segment:
Supplemental health and other health	127.7		123.3
Medicare supplement	20.3		24.2
Life	6.3		6.1
Annuity	.9		1.3
Total	155.2		154.9
Colonial Penn segment:
Life	61.1		57.6
Supplemental health	.8		1.0
Total	61.9		58.6
Total collected premiums from continuing operating segments	$	827.1	$	813.8

NEW ANNUALIZED PREMIUMS (2)

(Dollars in millions)



	Three months ended
	September 30,
	2014		2013
Bankers Life segment:
Medicare supplement	$	17.0	$	18.7
Long-term care	5.6		6.2
Supplemental health	1.7		2.6
Life	26.7		23.5
Annuity	10.8		11.5
Total	61.8		62.5
Washington National segment:
Supplemental health	24.0		22.5
Life	1.6		1.3
Annuity	—		.1
Total	25.6		23.9
Colonial Penn segment:
Life	16.4		15.4
Total	16.4		15.4
Total new annualized premiums	$	103.8	$	101.8

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CNO Financial (13)

October 28, 2014

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES

BENEFIT RATIOS ON MAJOR HEALTH LINES OF BUSINESS



	Three months ended
	September 30,
	2014		2013
Bankers Life segment:
Medicare Supplement:
Earned premium	$194 million		$191 million
Benefit ratio (8)	66.2	%	67.0	%
Long-Term Care:
Earned premium	$125 million		$133 million
Benefit ratio (8)	123.6	%	128.4	%
Interest-adjusted benefit ratio (a non-GAAP measure) (9)	70.5	%	79.4	%
Washington National segment:
Medicare Supplement:
Earned premium	$21 million		$25 million
Benefit ratio (8)	65.8	%	64.3	%
Supplemental health (10):
Earned premium	$126 million		$122 million
Benefit ratio (8)	81.9	%	81.7	%
Interest-adjusted benefit ratio (a non-GAAP measure) (9)	56.0	%	55.1	%

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CNO Financial (14)

October 28, 2014

NOTES

(1)

Management believes that an analysis of Net income applicable to common stock before: (i) the net loss on the sale of CLIC and gain (loss) on reinsurance transactions; (ii) the earnings of CLIC prior to being sold; (iii) net realized investment gains or losses, net of related amortization and taxes; (iv) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (v) equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities, net of taxes; (vi) net revenue pursuant to transition and support services agreements, net of taxes; (vii) loss on extinguishment or modification of debt, net of taxes; and (viii) changes in the valuation allowance for deferred tax assets ("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. Net realized investment gains or losses include: (i) gains or losses on the sales of investments; (ii) other-than-temporary impairments recognized through net income; and (iii) changes in fair value of certain fixed maturity investments with embedded derivatives. A reconciliation of Net operating income to Net income applicable to common stock is provided in the tables on pages 2 and 10. Additional information concerning this non-GAAP measure 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.


(2)	Measured by new annualized premium, which includes 6% of annuity and 10% of single premium whole life deposits and 100% of all other premiums. Medicare Advantage sales are not comparable to other sales and are therefore excluded in all periods.


(3)	Collected premiums from our core operating segments include premiums collected in our Bankers Life, Washington National and Colonial Penn segments. Collected premiums from all sources (including CLIC operations prior to the sale and the reinsured long-term care business included in the former Other CNO Business segment) were $827.1 million in 3Q14, down 3 percent from 3Q13.

(4)

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. The corresponding GAAP measures for debt-to-total capital were 14.7% at both September 30, 2014 and December 31, 2013.

(5)

Management believes that an analysis of earnings before the net loss on the sale of CLIC and gain (loss) on reinsurance transactions, the earnings of CLIC prior to being sold, net realized investment gains (losses), fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities, net revenue pursuant to transition and support services agreements, corporate interest expense, loss on extinguishment or modification of debt and taxes ("EBIT," a non-GAAP financial measure) provides a clearer comparison of the operating results of the company quarter-over-quarter because these items are unrelated to the company's underlying fundamentals. A reconciliation of EBIT to Net Income applicable to common stock is provided in the tables on pages 2 and 10.

(6)

Book value per diluted share reflects the potential dilution that could occur if outstanding stock options and warrants were exercised, restricted stock and performance units were vested and convertible securities were converted. The dilution from options, warrants, 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 and warrants (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. The dilution from convertible securities is calculated assuming the securities were converted 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. The corresponding GAAP measures for book value per common share were $22.74 and $22.49 at September 30, 2014 and December 31, 2013, respectively.

(7)

Management believes that an analysis of EBIT, separated between in-force and new business provides increased clarity around the value drivers of our business, particularly since the new business results are significantly impacted by the rate of sales, mix of business and the distribution channel through which new sales are made. 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. 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.


(8)	The benefit ratio is calculated by dividing the related product's insurance policy benefits by insurance policy income.

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CNO Financial (15)

October 28, 2014


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


(10)	We have consolidated a small block of health related business with this supplemental health block for simplicity of reporting. All prior periods have been revised to conform to the current presentation.

Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in this press release relative to markets for CNO Financial's products and trends in CNO Financial's operations or financial results, as well as other statements, contain forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "anticipate," "believe," "plan," "estimate," "expect," "project," "intend," "may," "will," "would," "contemplate," "possible," "attempt," "seek," "should," "could," "goal," "target," "on track," "comfortable with," "optimistic," "guidance," "outlook" and similar words, although some forward-looking statements are expressed differently. You should consider statements that contain these words carefully because they describe our expectations, plans, strategies and goals and our beliefs concerning future business conditions, our results of operations, financial position, and our business outlook or they state other ''forward-looking'' information based on currently available information. Assumptions and other important factors that could cause our actual results to differ materially from those anticipated in our forward-looking statements include, among other things: (i) changes in or sustained low interest rates causing reductions in investment income, the margins of our fixed annuity and life insurance businesses, and sales of, and demand for, our products; (ii) expectations of lower future investment earnings may cause us to accelerate amortization, write down the balance of insurance acquisition costs or establish additional liabilities for insurance products; (iii) general economic, market and political conditions, including the performance and fluctuations of the financial markets which may affect the value of our investments as well as our ability to raise capital or refinance existing indebtedness and the cost of doing so; (iv) the ultimate outcome of lawsuits filed against us and other legal and regulatory proceedings to which we are subject; (v) our ability to make anticipated changes to certain non-guaranteed elements of our life insurance products; (vi) our ability to obtain adequate and timely rate increases on our health products, including our long-term care business; (vii) the receipt of any required regulatory approvals for dividend and surplus debenture interest payments from our insurance subsidiaries; (viii) mortality, morbidity, the increased cost and usage of health care services, persistency, the adequacy of our previous reserve estimates and other factors which may affect the profitability of our insurance products; (ix) changes in our assumptions related to deferred acquisition costs or the present value of future profits; (x) the recoverability of our deferred tax assets and the effect of potential ownership changes and tax rate changes on their value; (xi) our assumption that the positions we take on our tax return filings will not be successfully challenged by the Internal Revenue Service; (xii) changes in accounting principles and the interpretation thereof; (xiii) our ability to continue to satisfy the financial ratio and balance requirements and other covenants of our debt agreements; (xiv) our ability to achieve anticipated expense reductions and levels of operational efficiencies including improvements in claims adjudication and continued automation and rationalization of operating systems, (xv) performance and valuation of our investments, including the impact of realized losses (including other-than-temporary impairment charges); (xvi) our ability to identify products and markets in which we can compete effectively against competitors with greater market share, higher ratings, greater financial resources and stronger brand recognition; (xvii) our ability to generate sufficient liquidity to meet our debt service obligations and other cash needs; (xviii) our ability to maintain effective controls over financial reporting; (xix) our ability to continue to recruit and retain productive agents and distribution partners and customer response to new products, distribution channels and marketing initiatives; (xx) our ability to achieve additional upgrades of the financial strength ratings of CNO Financial and our insurance company subsidiaries as well as the impact of our ratings on our business, our ability to access capital and the cost of capital; (xxi) the risk factors or uncertainties listed from time to time in our filings with the Securities and Exchange Commission; (xxii) regulatory changes or actions, including those relating to regulation of the financial affairs of our insurance companies, such as the payment of dividends and surplus debenture interest to us, regulation of the sale, underwriting and pricing of products, and health care regulation affecting health insurance products; (xxiii) determination of the final sales price and net proceeds for the sale of Conseco Life Insurance Company; and (xxiv) changes in the Federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products or affect the value of our deferred tax assets. Other factors and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Our forward-looking statements speak only as of the date made. We assume no obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements.

- # # # # -

Exhibit 99.2





Quarterly Financial Supplement - 3Q2014




October 28, 2014

Page 1



Table of Contents				Page

Consolidated balance sheet				3
Consolidated statement of operations				4
Operating results				5
Computation of weighted average shares outstanding				6
EBIT from Business Segments Continuing After the CLIC Sale Summarized by In-Force and New Business				7
Analyses of income before taxes and selected data:
Bankers Life				8-10
Washington National				11-13
Colonial Penn				14-15
Corporate Operations				16
Other CNO Business				17
Premiums collected on insurance products:
Bankers Life				18
Washington National				19
Colonial Penn				20
New Annualized Premiums				21
Statutory information				22
Amounts related to CLIC prior to being sold				23-24
Notes				25

Page 2



CNO Financial Group, Inc.
Consolidated balance sheet (in millions)	Mar-13			Jun-13			Sep-13		Dec-13		Mar-14			Jun-14			Sep-14

Assets
Investments:
Fixed maturities, available for sale, at fair value	$	24,926.1		$	23,653.0		$	23,524.6	$	23,204.6	$	20,177.8		$	20,583.3		$	20,610.5
Equity securities at fair value	185.3			211.3			235.1		223.0		243.6			237.8			372.8
Mortgage loans	1,639.8			1,692.2			1,635.1		1,729.5		1,501.7			1,595.9			1,621.8
Policy loans	271.5			269.1			267.5		277.0		102.6			99.7			106.2
Trading securities	229.8			241.0			246.6		247.6		235.5			227.4			235.0
Investments held by variable interest entities	1,009.9			1,087.9			1,080.7		1,046.7		1,134.1			1,241.1			1,343.0
Other invested assets	309.7			312.6			330.6		423.3		409.5			426.1			394.6
Total investments	28,572.1			27,467.1			27,320.2		27,151.7		23,804.8			24,411.3			24,683.9
Cash and cash equivalents - unrestricted	251.6			280.0			376.7		699.0		285.4			378.8			452.1
Cash and cash equivalents held by variable interest entities	462.2			210.7			85.1		104.3		140.3			101.8			150.7
Accrued investment income	315.8			294.8			306.2		286.9		259.3			238.2			255.4
Present value of future profits	606.6			591.6			578.9		679.3		527.7			512.3			505.1
Deferred acquisition costs	654.4			762.1			846.0		968.1		740.4			698.9			746.6
Reinsurance receivables	2,879.5			2,838.0			2,822.4		3,392.1		3,072.8			2,892.9			3,023.0
Income tax assets, net	708.5			931.2			1,135.7		1,147.2		870.7			730.5			731.1
Assets held in separate accounts	15.5			15.0			13.3		10.3		10.0			9.4			6.9
Other assets	433.0			385.1			432.6		341.7		401.0			421.3			420.2
Assets of subsidiary being sold	—			—			—		—		4,346.3			4,518.9			—
Total assets	$	34,899.2		$	33,775.6		$	33,917.1	$	34,780.6	$	34,458.7		$	34,914.3		$	30,975.0
Liabilities
Liabilities for insurance products:
Policyholder account balances	$	12,833.4		$	12,774.4		$	12,766.1	$	12,776.4	$	10,625.3		$	10,649.7		$	10,659.2
Future policy benefits	11,311.7			11,017.9			11,058.3		11,222.5		10,138.6			10,372.2			10,519.8
Liability for policy and contract claims	563.5			554.2			551.7		566.0		482.2			463.3			464.4
Unearned and advanced premiums	285.7			278.5			274.5		300.6		279.5			270.7			270.3
Liabilities related to separate accounts	15.5			15.0			13.3		10.3		10.0			9.4			6.9
Other liabilities	903.0			626.8			712.7		590.6		727.4			560.7			704.0
Payable to reinsurer	—			—			—		590.3		—			—			—
Investment borrowings	1,880.2			1,878.0			1,850.2		1,900.0		1,499.4			1,507.6			1,519.4
Borrowings related to variable interest entities	1,143.4			1,143.7			1,035.1		1,012.3		1,019.4			1,110.8			1,295.0
Notes payable - direct corporate obligations	934.2			905.7			868.6		856.4		844.1			827.3			814.0
Liabilities of subsidiary being sold	—			—			—		—		4,122.6			4,298.3			—
Total liabilities	29,870.6			29,194.2			29,130.5		29,825.4		29,748.5			30,070.0			26,253.0
Shareholders' equity
Common stock	2.2			2.2			2.2		2.2		2.2			2.1			2.1
Additional paid-in capital	4,173.2			4,128.2			4,121.3		4,092.8		4,054.7			3,963.9			3,803.7
Retained earnings (accumulated deficit)	(317.5		)	(247.1		)	29.1		128.4		(112.9		)	(47.8		)	56.9
Total shareholders' equity before accumulated other comprehensive income	3,857.9			3,883.3			4,152.6		4,223.4		3,944.0			3,918.2			3,862.7
Accumulated other comprehensive income	1,170.7			698.1			634.0		731.8		766.2			926.1			859.3
Total shareholders' equity	5,028.6			4,581.4			4,786.6		4,955.2		4,710.2			4,844.3			4,722.0
Total liabilities and shareholders' equity	$	34,899.2		$	33,775.6		$	33,917.1	$	34,780.6	$	34,458.7		$	34,914.3		$	30,975.0



	1Q13			2Q13			3Q13		4Q13		1Q14			2Q14			3Q14

Book value per share at period-end (1) (2)	$	17.26		$	17.70		$	18.70	$	19.17	$	17.99		$	18.33		$	18.60

Book value per diluted share (1) (3)	$	16.57		$	17.01		$	18.24	$	18.62	$	17.52		$	17.85		$	18.39

Page 3



CNO Financial Group, Inc.
Consolidated statement of operations (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Revenues
Insurance policy income	$	691.2		$	691.3		$	686.1		$	676.1		$	2,744.7		$	685.9		$	679.0		$	632.1
Net investment income (loss):
General account assets	351.9			348.8			350.7			354.4			1,405.8			348.1			347.4			300.1
Policyholder and reinsurer accounts and other special-purpose portfolios	77.7			31.8			49.0			99.7			258.2			20.9			47.2			14.8
Realized investment gains (losses):
Net realized investment gains, excluding impairment losses	15.3			3.8			2.8			23.1			45.0			35.3			12.4			6.8
Other-than-temporary impairment losses:
Total other-than-temporary impairment losses	—			(0.6		)	(2.9		)	(8.1		)	(11.6		)	(11.9		)	—			(2.8		)
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income	—			—			—			—			—			—			—			—
Net impairment losses recognized	—			(0.6		)	(2.9		)	(8.1		)	(11.6		)	(11.9		)	—			(2.8		)
Total realized gains (losses)	15.3			3.2			(0.1		)	15.0			33.4			23.4			12.4			4.0
Fee revenue and other income	6.5			6.4			8.1			13.0			34.0			6.4			7.0			16.0
Total revenues	1,142.6			1,081.5			1,093.8			1,158.2			4,476.1			1,084.7			1,093.0			967.0

Benefits and expenses
Insurance policy benefits	754.1			673.2			702.2			710.2			2,839.7			690.3			691.1			565.5
Net loss on sale of CLIC and (gain) loss on reinsurance transactions	—			—			—			98.4			98.4			278.6			(3.8		)	(32.1		)
Interest expense	27.3			26.9			25.8			25.3			105.3			24.6			24.3			21.9
Amortization	79.3			79.2			61.4			76.4			296.3			66.7			64.9			65.8
Loss on extinguishment or modification of debt	57.7			7.7			—			—			65.4			—			0.6			—
Other operating costs and expenses	189.6			179.8			190.0			206.8			766.2			194.1			201.5			191.5
Total benefits and expenses	1,108.0			966.8			979.4			1,117.1			4,171.3			1,254.3			978.6			812.6

Income (loss) before income taxes	34.6			114.7			114.4			41.1			304.8			(169.6		)	114.4			154.4
Income tax expense on period income	33.2		42.6			38.1			14.4			128.3			39.0			40.3			53.8
Valuation allowance for deferred tax assets and other tax items	(10.5		)	(5.0		)	(206.7		)	(79.3		)	(301.5		)	19.4			(4.0		)	(16.8		)
Net income (loss)	$	11.9		$	77.1		$	283.0		$	106.0		$	478.0		$	(228.0	)	$	78.1		$	117.4

Page 4



CNO Financial Group, Inc.
Operating results ($ in millions, except per share amounts)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

EBIT (4):
Bankers Life	$	62.1		$	79.1		$	86.3		$	83.0		$	310.5		$	84.2		$	87.4		$	111.8
Washington National	34.0			35.8			33.0			37.8			140.6			31.1			32.3			27.6
Colonial Penn	(5.4		)	1.2			(4.2		)	(4.1		)	(12.5		)	(6.2		)	3.8			0.4
Other CNO Business:
Loss from the long-term care business reinsured in 4Q13	(2.7		)	(2.2		)	(1.0		)	(2.1		)	(8.0		)	—			—			—
Overhead expense of CLIC expected to continue after the sale	(4.6		)	(5.0		)	(4.7	)	(5.3		)	(19.6		)	—			—			—
EBIT from business segments continuing after the CLIC sale	83.4			108.9			109.4			109.3			411.0			109.1			123.5			139.8
Corporate operations, excluding corporate interest expense	3.0			2.4			9.4			3.8			18.6			(6.0		)	(15.5		)	(9.1		)
EBIT from operations continuing after the CLIC sale	86.4			111.3			118.8			113.1			429.6			103.1			108.0			130.7
Corporate interest expense	(15.1		)	(13.1		)	(11.7		)	(11.4		)	(51.3		)	(11.1		)	(11.1		)	(10.9		)
Operating earnings before taxes	71.3			98.2			107.1			101.7			378.3			92.0			96.9			119.8
Tax expense on operating income	25.7			34.3			34.4			35.5			129.9			32.1			33.2			43.2
Net operating income (5)	45.6			63.9			72.7			66.2			248.4			59.9			63.7			76.6
Earnings of CLIC prior to being sold (net of taxes)	5.5			4.8			5.5			9.7			25.5			6.7			8.5			—
Net loss on sale of CLIC and gain (loss) on reinsurance transactions (including impact of taxes)	—			—			—			(63.3		)	(63.3		)	(298.0		)	2.5			22.9
Net realized investment gains (losses) (net of related amortization and taxes)	8.0			0.8			(1.1		)	9.1			16.8			13.6			7.5			2.6
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	1.3			12.1			2.2			7.4			23.0			(7.2		)	(4.8		)	—
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(1.8		)	(2.7		)	(3.0		)	(2.4		)	(9.9		)	(3.0		)	(2.9		)	(2.4		)
Net revenue pursuant to transition and support services agreements (net of taxes)	—			—			—			—			—			—			—			0.9
Loss on extinguishment or modification of debt (net of taxes)	(57.2		)	(6.8		)	—			—			(64.0		)	—			(0.4		)	—
Valuation allowance for deferred tax assets and other tax items	10.5			5.0			206.7			79.3			301.5			—			4.0			16.8
Net income (loss)	$	11.9		$	77.1		$	283.0		$	106.0		$	478.0		$	(228.0	)	$	78.1		$	117.4

Per diluted share:
Net operating income	$	.19		$	.28		$	.32		$	.29		$	1.07		$	.27		$	.29		$	.35
Earnings of CLIC prior to being sold (net of taxes)	.02			.02			.02			.04			.11			.03			.04			—
Net loss on sale of CLIC and gain (loss) on reinsurance transactions (including impact of taxes)	—			—			—			(.28		)	(.27		)	(1.35		)	.01			.11
Net realized investment gains (losses) (net of related amortization and taxes)	.04			.01			(.01		)	.04			.08			.06			.03			.01
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	.01			.05			.01			.04			.10			(.03		)	(.02		)	—
Equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities (net of taxes)	(.01		)	(.01		)	(.01		)	(.01		)	(.04		)	(.01		)	(.02		)	(.01		)
Net revenue pursuant to transition and support services agreements (net of taxes)	—			—			—			—			—			—			—			—
Loss on extinguishment or modification of debt (net of taxes)	(.24		)	(.03		)	—			—			(.28		)	—			—			—
Valuation allowance for deferred tax assets and other tax items	.04			.02			.90			.35			1.29			—			.02			.08
Net income (loss)	$	.05		$	.34		$	1.23		$	.47		$	2.06		$	(1.03	)	$	.35		$	.54

Page 5



CNO Financial Group, Inc.
Computation of weighted average shares outstanding	1Q13		2Q13		3Q13		4Q13		2013		1Q14 (a)		2Q14		3Q14
(000s)

Basic
Shares outstanding, beginning of period	221,502.4		223,502.1		219,378.7		222,007.2		221,502.4		220,323.8		219,266.9		213,755.2
Weighted average shares issued during the period:
Shares repurchased	—		(3,161.2	)	(809.7	)	(1,024.5	)	(4,105.8	)	(343.6	)	(2,802.5	)	(3,312.5	)
Conversion of 7.0% convertible debentures	—		—		4,103.3		—		2,210.5		—		—		—
Stock options exercised and vested restricted and performance stock	678.8		157.6		204.9		80.4		2,307.6		393.4		73.8		84.7
Shares withheld for the payment of taxes on the vesting of restricted stock	(100.0	)	(0.1	)	(1.2	)	(7.1	)	(286.8	)	(67.1	)	(0.6	)	(2.1	)
Weighted average basic shares outstanding during the period	222,081.2		220,498.4		222,876.0		221,056.0		221,627.9		220,306.5		216,537.6		210,525.3
Basic shares outstanding, end of period	223,502.1		219,378.7		222,007.2		220,323.8		220,323.8		219,266.9		213,755.2		207,640.1
Diluted
Weighted average basic shares outstanding	222,081.2		220,498.4		222,876.0		221,056.0		221,627.9		220,306.5		216,537.6		210,525.3
Common stock equivalent shares related to:
7.0% convertible debentures	16,590.4		5,692.2		838.7		—		5,780.3		—		—		—
Stock options, restricted stock and performance units	2,828.3		2,410.8		2,858.6		3,005.2		2,775.7		—		2,390.4		2,447.3
Warrants	1,967.2		2,291.4		2,773.8		3,039.7		2,518.1		—		3,180.0		2,485.6
Weighted average diluted shares outstanding during the period	243,467.1		230,892.8		229,347.1		227,100.9		232,702.0		220,306.5		222,108.0		215,458.2
Diluted shares outstanding, end of period	234,865.1		229,928.4		227,693.4		226,867.8		226,867.8		225,106.7		219,536.1		210,046.5

(a) Equivalent common shares of 5,803.0 were not included in the diluted weighted average shares outstanding due

to the net loss recognized in 1Q14.

Page 6



EBIT from Business Segments Continuing After the CLIC Sale Summarized by In-Force and New Business (6)
(in millions)

CNO Financial Group, Inc.

EBIT from In-Force Business	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Revenues
Insurance policy income	$	535.0		$	539.6		$	537.9		$	534.6		$	2,147.1		$	541.6		$	534.9		$	541.5
Net investment income	348.2			309.0			316.9			361.4			1,335.5			297.7			320.2			299.5
Fee revenue and other income	2.6			2.9			4.0			3.8			13.3			4.7			5.2			6.2
Total revenues	885.8			851.5			858.8			899.8			3,495.9			844.0			860.3			847.2

Benefits and expenses
Insurance policy benefits	595.9			557.0			557.9			577.1			2,287.9			532.9			542.5			507.3
Interest expense	1.9			2.2			2.3			2.2			8.6			2.3			2.4			2.4
Amortization	68.6			57.6			50.3			59.8			236.3			61.6			58.6			58.8
Other operating costs and expenses	84.5			82.0			87.1			96.4			350.0			80.6			84.6			87.9
Total benefits and expenses	750.9			698.8			697.6			735.5			2,882.8			677.4			688.1			656.4
EBIT from In-Force Business	$	134.9		$	152.7		$	161.2		$	164.3		$	613.1		$	166.6		$	172.2		$	190.8


EBIT from New Business

Revenues
Insurance policy income	$	99.0		$	96.7		$	92.7		$	90.9		$	379.3		$	90.8		$	91.6		$	90.6
Net investment income	9.7			5.7			9.6			15.4			40.4			6.4			9.7			7.2
Fee revenue and other income	1.5			1.5			2.3			2.1			7.4			1.0			1.1			1.3
Total revenues	110.2			103.9			104.6			108.4			427.1			98.2			102.4			99.1

Benefits and expenses
Insurance policy benefits	70.9			63.9			64.3			68.0			267.1			58.6			61.4			58.2
Interest expense	—			—			—			—			—			—			—			—
Amortization	6.7			8.0			7.5			8.4			30.6			6.9			6.6			6.8
Other operating costs and expenses	84.1			75.8			84.6			87.0			331.5			90.2			83.1			85.1
Total benefits and expenses	161.7			147.7			156.4			163.4			629.2			155.7			151.1			150.1
EBIT from New Business	$	(51.5	)	$	(43.8	)	$	(51.8	)	$	(55.0	)	$	(202.1	)	$	(57.5	)	$	(48.7	)	$	(51.0	)


EBIT from In-Force and New Business

Revenues
Insurance policy income	$	634.0		$	636.3		$	630.6		$	625.5		$	2,526.4		$	632.4		$	626.5		$	632.1
Net investment income	357.9			314.7			326.5			376.8			1,375.9			304.1			329.9			306.7
Fee revenue and other income	4.1			4.4			6.3			5.9			20.7			5.7			6.3			7.5
Total revenues	996.0			955.4			963.4			1,008.2			3,923.0			942.2			962.7			946.3

Benefits and expenses
Insurance policy benefits	666.8			620.9			622.2			645.1			2,555.0			591.5			603.9			565.5
Interest expense	1.9			2.2			2.3			2.2			8.6			2.3			2.4			2.4
Amortization	75.3			65.6			57.8			68.2			266.9			68.5			65.2			65.6
Other operating costs and expenses	168.6			157.8			171.7			183.4			681.5			170.8			167.7			173.0
Total benefits and expenses	912.6			846.5			854.0			898.9			3,512.0			833.1			839.2			806.5
EBIT from In-Force and New Business	$	83.4		$	108.9		$	109.4		$	109.3		$	411.0		$	109.1		$	123.5		$	139.8

Page 7



CNO Financial Group, Inc.
Bankers Life
Analysis of income before taxes (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Insurance policy income	$	418.0		$	419.1		$	407.4		$	404.2		$	1,648.7		$	416.3		$	408.1		$	416.4
Net investment income (loss):
General account invested assets	212.8			211.0			212.4			217.8			854.0			219.8			220.5			225.9
Fixed index products	48.9			15.6			23.0			64.2			151.7			4.6			27.1			5.3
Fee revenue and other income	3.7			4.0			5.8			5.5			19.0			5.3			5.8			7.0
Total revenues	683.4			649.7			648.6			691.7			2,673.4			646.0			661.5			654.6

Insurance policy benefits	373.8			370.4			357.0			346.3			1,447.5			365.7			356.0			345.9
Amounts added to policyholder account balances:
Cost of interest credited to policyholders	35.9			36.0			35.3			34.7			141.9			32.9			32.2			31.0
Cost of options to fund index credits, net of forfeitures	11.8			11.9			11.7			12.0			47.4			12.0			12.1			12.2
Market value changes credited to policyholders	49.0			15.8			23.3			63.8			151.9			4.4			27.6			5.8
Amortization related to operations	54.5			45.7			39.7			47.6			187.5			48.2			45.4			47.1
Interest expense on investment borrowings	1.4			1.7			1.8			1.8			6.7			1.9			1.9			2.0
Other operating costs and expenses	94.9			89.1			93.5			102.5			380.0			96.7			98.9			98.8
Total benefits and expenses	621.3			570.6			562.3			608.7			2,362.9			561.8			574.1			542.8
EBIT (4)	$	62.1		$	79.1		$	86.3		$	83.0		$	310.5		$	84.2		$	87.4		$	111.8



Health underwriting margins (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Medicare supplement:
Earned premium	$	188.4		$	189.2		$	190.7		$	190.3		$	758.6		$	194.5		$	193.2		$	193.9
Benefit ratio	68.5		%	67.2		%	67.0		%	65.7		%	67.1		%	67.7		%	69.5		%	66.2		%
Underwriting margin (earned premium less policy benefits)	$	59.4		$	62.0		$	62.9		$	65.3		$	249.6		$	62.9		$	59.0		$	65.4

PDP:
Earned premium	$	8.9		$	10.8		$	—		$	—		$	19.7		$	6.8		$	—		$	—
Benefit ratio	74.9		%	85.2		%	N/A			N/A			80.5		%	77.9		%	N/A			N/A
Underwriting margin (earned premium less policy benefits)	$	2.2		$	1.6		$	—		$	—		$	3.8		$	1.5		$	—		$	—

Long-term care:
Earned premium	$	135.3		$	134.1		$	132.6		$	130.9		$	532.9		$	129.1		$	127.4		$	125.5
Benefit ratio before interest income on reserves	129.4		%	129.5		%	128.4		%	130.0		%	129.3		%	131.9		%	131.2		%	123.6		%
Interest-adjusted benefit ratio	81.7		%	81.4		%	79.4		%	80.0		%	80.6		%	81.0		%	79.2		%	70.5		%
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	24.8		$	25.0		$	27.3		$	26.1		$	103.2		$	24.5		$	26.5		$	36.9

Page 8



CNO Financial Group, Inc.
Bankers Life
Average liabilities for insurance products (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Fixed index annuities	$	3,038.8		$	3,132.2		$	3,224.6		$	3,347.7		$	3,185.8		$	3,462.8		$	3,575.7		$	3,687.0
Deferred annuities	4,245.7			4,162.1			4,091.9			4,049.0			4,137.2			3,983.1			3,889.6			3,796.5
SPIAs and supplemental contracts:
Mortality based	229.2			227.2			223.3			206.5			221.5			203.1			206.5			202.8
Deposit based	158.6			157.9			156.2			153.4			156.5			150.1			148.1			148.3
Health:
Long-term care	4,837.7			4,651.7			4,507.3			4,532.0			4,632.2			4,568.0			4,682.5			4,788.5
Medicare supplement	337.4			333.3			326.6			332.3			332.4			338.2			330.6			324.2
Other health	45.1			45.3			45.3			45.7			45.4			46.5			47.1			47.9
Life:
Interest sensitive	467.6			480.3			497.4			516.2			490.4			533.2			552.5			576.4
Non-interest sensitive	570.5			598.1			624.3			649.5			610.6			672.4			693.6			870.4
Total average liabilities for insurance products, net of reinsurance ceded	$	13,930.6		$	13,788.1		$	13,696.9		$	13,832.3		$	13,812.0		$	13,957.4		$	14,126.2		$	14,442.0



Present value of future profits (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	168.8		$	159.9		$	155.6		$	152.5		$	168.8		$	263.2		$	137.7		$	132.1
Amortization related to operations	(16.6		)	(11.5		)	(10.6		)	(10.1		)	(48.8		)	(11.4		)	(10.5		)	(9.1		)
Amortization related to net realized investment (gains) losses	(0.1		)	—			—			—			(0.1		)	—			—			—
Effect of reinsurance transaction	—			—			—			—			—			—			—			5.0
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	7.8			7.2			7.5			120.8			143.3			(114.1		)	4.9			4.7
Balance, end of period	$	159.9		$	155.6		$	152.5		$	263.2		$	263.2		$	137.7		$	132.1		$	132.7



Deferred acquisition costs (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	332.8		$	350.8		$	439.5		$	514.5		$	332.8		$	627.8		$	440.8		$	397.6
Deferred acquisition expenses	37.7			37.1			38.4			44.9			158.1			39.6			41.8			42.3
Amortization related to operations	(37.9		)	(34.2		)	(29.1		)	(37.5		)	(138.7		)	(36.8		)	(34.9		)	(38.0		)
Amortization related to net realized investment (gains) losses	(0.6		)	(0.4		)	—			(0.1		)	(1.1		)	—			(0.1		)	—
Amortization related to fair value changes in embedded derivative liabilities	(1.1		)	(9.1		)	(1.6		)	(5.1		)	(16.9		)	3.8			2.3			0.1
Effect of reinsurance transaction	—			—			—			—			—			—			—			24.0
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	19.9			95.3			67.3			111.1			293.6			(193.6		)	(52.3		)	11.6
Balance, end of period	$	350.8		$	439.5		$	514.5		$	627.8		$	627.8		$	440.8		$	397.6		$	437.6

Page 9



Bankers Life Segment EBIT Summarized by In-Force and New Business (6)
(in millions)

CNO Financial Group, Inc.
EBIT from In-Force Business	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Revenues
Insurance policy income	$	345.8		$	349.4		$	341.8		$	341.0		$	1,378.0		$	354.2		$	346.2		$	355.8
Net investment income (loss)	252.0			220.9			225.8			266.6			965.3			218.0			237.9			224.0
Fee revenue and other income	2.2			2.5			3.5			3.4			11.6			4.3			4.7			5.7
Total revenues	600.0			572.8			571.1			611.0			2,354.9			576.5			588.8			585.5

Benefits and expenses
Insurance policy benefits	412.8			383.4			376.3			402.2			1,574.7			370.1			380.7			351.1
Interest expense	1.4			1.7			1.8			1.8			6.7			1.9			1.9			2.0
Amortization	48.7			38.7			33.2			40.3			160.9			42.5			40.0			41.6
Other operating costs and expenses	41.0			39.4			40.9			48.7			170.0			39.6			41.9			45.0
Total benefits and expenses	503.9			463.2			452.2			493.0			1,912.3			454.1			464.5			439.7
EBIT from In-Force Business	$	96.1		$	109.6		$	118.9		$	118.0		$	442.6		$	122.4		$	124.3		$	145.8


EBIT from New Business

Revenues
Insurance policy income	$	72.2		$	69.7		$	65.6		$	63.2		$	270.7		$	62.1		$	61.9		$	60.6
Net investment income (loss)	9.7			5.7			9.6			15.4			40.4			6.4			9.7			7.2
Fee revenue and other income	1.5			1.5			2.3			2.1			7.4			1.0			1.1			1.3
Total revenues	83.4			76.9			77.5			80.7			318.5			69.5			72.7			69.1

Benefits and expenses
Insurance policy benefits	57.7			50.7			51.0			54.6			214.0			44.9			47.2			43.8
Interest expense	—			—			—			—			—			—			—			—
Amortization	5.8			7.0			6.5			7.3			26.6			5.7			5.4			5.5
Other operating costs and expenses	53.9			49.7			52.6			53.8			210.0			57.1			57.0			53.8
Total benefits and expenses	117.4			107.4			110.1			115.7			450.6			107.7			109.6			103.1
EBIT from New Business	$	(34.0	)	$	(30.5	)	$	(32.6	)	$	(35.0	)	$	(132.1	)	$	(38.2	)	$	(36.9	)	$	(34.0	)


EBIT from In-Force and New Business

Revenues
Insurance policy income	$	418.0		$	419.1		$	407.4		$	404.2		$	1,648.7		$	416.3		$	408.1		$	416.4
Net investment income (loss)	261.7			226.6			235.4			282.0			1,005.7			224.4			247.6			231.2
Fee revenue and other income	3.7			4.0			5.8			5.5			19.0			5.3			5.8			7.0
Total revenues	683.4			649.7			648.6			691.7			2,673.4			646.0			661.5			654.6

Benefits and expenses
Insurance policy benefits	470.5			434.1			427.3			456.8			1,788.7			415.0			427.9			394.9
Interest expense	1.4			1.7			1.8			1.8			6.7			1.9			1.9			2.0
Amortization	54.5			45.7			39.7			47.6			187.5			48.2			45.4			47.1
Other operating costs and expenses	94.9			89.1			93.5			102.5			380.0			96.7			98.9			98.8
Total benefits and expenses	621.3			570.6			562.3			608.7			2,362.9			561.8			574.1			542.8
EBIT from In-Force and New Business	$	62.1		$	79.1		$	86.3		$	83.0		$	310.5		$	84.2		$	87.4		$	111.8

Page 10



CNO Financial Group, Inc.
Washington National
Analysis of income before taxes (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Insurance policy income	$	152.9		$	153.1		$	159.2		$	156.3		$	621.5		$	155.6		$	156.7		$	154.0
Net investment income (loss):
General account invested assets	69.8			68.3			69.1			67.8			275.0			68.2			67.6			64.8
Fixed index products	6.8			1.6			2.6			6.9			17.9			0.9			2.8			0.3
Trading account income related to reinsurer accounts	(0.4		)	(2.5		)	(0.5		)	(0.3		)	(3.7		)	1.6			(0.2		)	—
Change in value of embedded derivatives related to modified coinsurance agreements	0.4			2.5			0.5			0.3			3.7			(1.6		)	0.2			—
Trading account income related to policyholder accounts	1.3			(0.1		)	1.2			1.6			4.0			(0.1		)	1.4			0.1
Fee revenue and other income	0.2			0.2			0.3			0.2			0.9			0.2			0.2			0.3
Total revenues	231.0			223.1			232.4			232.8			919.3			224.8			228.7			219.5

Insurance policy benefits	123.6			123.3			132.6			118.3			497.8			126.0			123.3			124.1
Amounts added to policyholder account balances:
Cost of interest credited to policyholders	3.8			3.9			3.4			3.6			14.7			3.4			4.0			3.6
Cost of options to fund index credits, net of forfeitures	1.9			1.4			1.5			1.3			6.1			1.5			1.4			1.3
Market value changes credited to policyholders	8.4			1.7			4.1			8.6			22.8			0.9			4.1			0.5
Amortization related to operations	17.1			16.2			14.4			17.2			64.9			16.3			16.0			14.8
Interest expense on investment borrowings	0.5			0.5			0.5			0.4			1.9			0.4			0.5			0.4
Other operating costs and expenses	41.7			40.3			42.9			45.6			170.5			45.2			47.1			47.2
Total benefits and expenses	197.0			187.3			199.4			195.0			778.7			193.7			196.4			191.9
EBIT (4)	$	34.0		$	35.8		$	33.0		$	37.8		$	140.6		$	31.1		$	32.3		$	27.6



Health underwriting margins (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Medicare supplement:
Earned premium	$	26.8		$	25.9		$	25.2		$	24.4		$	102.3		$	23.1		$	22.1		$	21.3
Benefit ratio	65.0		%	65.5		%	64.3		%	63.6		%	64.6		%	63.9		%	61.7		%	65.8		%
Underwriting margin (earned premium less policy benefits)	$	9.4		$	8.9		$	9.0		$	8.9		$	36.2		$	8.3		$	8.5		$	7.3

Supplemental health and other:
Earned premium	$	118.7		$	119.8		$	121.8		$	124.4		$	484.7		$	125.8		$	126.8		$	125.8
Benefit ratio before interest income on reserves	79.8		%	79.6		%	81.7		%	76.7		%	79.4		%	78.9		%	80.3		%	81.9		%
Interest-adjusted benefit ratio	53.6		%	53.5		%	55.1		%	50.6		%	53.2		%	53.0		%	54.8		%	56.0		%
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	55.1		$	55.7		$	54.7		$	61.5		$	227.0		$	59.1		$	57.4		$	55.2

Page 11



CNO Financial Group, Inc.
Washington National
Average liabilities for insurance products (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Fixed index annuities	$	474.2		$	462.1		$	451.1		$	442.3		$	457.4		$	433.7		$	426.3		$	417.4
Deferred annuities	157.0			151.2			143.3			136.9			147.1			134.4			131.4			128.6
SPIAs and supplemental contracts:
Mortality based	250.9			248.2			248.2			248.2			248.9			245.5			242.9			240.2
Deposit based	241.9			245.9			248.1			247.6			245.9			249.5			252.3			254.1
Separate Accounts	15.2			15.3			14.2			11.8			14.1			10.2			9.7			8.1
Health:
Supplemental health	2,212.0			2,224.5			2,237.1			2,250.2			2,231.0			2,265.3			2,415.7			2,428.8
Medicare supplement	40.4			39.0			37.7			37.7			38.7			36.8			36.0			34.1
Other health	12.9			12.3			12.1			11.7			12.3			11.1			16.8			16.0
Life:
Interest sensitive	167.1			166.7			164.9			166.3			166.2			165.8			160.3			156.5
Non-interest sensitive	197.2			202.6			198.9			196.4			198.8			194.2			192.6			191.2
Total average liabilities for insurance products, net of reinsurance ceded	$	3,768.8		$	3,767.8		$	3,755.6		$	3,749.1		$	3,760.4		$	3,746.5		$	3,884.0		$	3,875.0



Present value of future profits (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	375.9		$	367.7		$	359.8		$	352.2		$	375.9		$	344.3		$	336.2		$	328.1
Amortization related to operations	(8.4		)	(8.7		)	(7.7		)	(8.0		)	(32.8		)	(7.9		)	(7.6		)	(6.2		)
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	0.2			0.8			0.1			0.1			1.2			(0.2		)	(0.5		)	0.1
Balance, end of period	$	367.7		$	359.8		$	352.2		$	344.3		$	344.3		$	336.2		$	328.1		$	322.0



Deferred acquisition costs (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	195.2		$	201.5		$	219.2		$	228.0		$	195.2		$	232.2		$	230.8		$	230.9
Deferred acquisition expenses	12.3			12.8			12.7			12.8			50.6		13.2			13.8			13.8
Amortization related to operations	(8.7		)	(7.5		)	(6.7		)	(9.2		)	(32.1		)	(8.4		)	(8.4		)	(8.6		)
Amortization related to net realized investment (gains) losses	(0.1		)	—			(0.1		)	(0.2		)	(0.4		)	(0.4		)	—			(0.1		)
Amortization related to fair value changes in embedded derivative liabilities	0.1			(1.4		)	0.1			(0.9		)	(2.1		)	0.4			0.4			(0.2		)
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	2.7			13.8			2.8			1.7			21.0			(6.2		)	(5.7		)	1.2
Balance, end of period	$	201.5		$	219.2		$	228.0		$	232.2		$	232.2		$	230.8		$	230.9		$	237.0

Page 12



Washington National Segment EBIT Summarized by In-Force and New Business (6)
(in millions)

CNO Financial Group, Inc.
EBIT from In-Force Business	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Revenues
Insurance policy income	$	137.4		$	137.6		$	143.3		$	139.7		$	558.0		$	138.1		$	138.5		$	135.5
Net investment income (loss)	77.9			69.8			72.9			76.3			296.9			69.0			71.8			65.2
Fee revenue and other income	0.2			0.2			0.3			0.2			0.9			0.2			0.2			0.3
Total revenues	215.5			207.6			216.5			216.2			855.8			207.3			210.5			201.0

Benefits and expenses
Insurance policy benefits	131.0			123.7			134.8			124.7			514.2			124.5			125.2			121.7
Interest expense	0.5			0.5			0.5			0.4			1.9			0.4			0.5			0.4
Amortization	16.3			15.3			13.5			16.2			61.3			15.2			14.9			13.6
Other operating costs and expenses	30.4			30.2			32.6			33.3			126.5			33.3			35.1			35.2
Total benefits and expenses	178.2			169.7			181.4			174.6			703.9			173.4			175.7			170.9
EBIT from In-Force Business	$	37.3		$	37.9		$	35.1		$	41.6		$	151.9		$	33.9		$	34.8		$	30.1


EBIT from New Business

Revenues
Insurance policy income	$	15.5		$	15.5		$	15.9		$	16.6		$	63.5		$	17.5		$	18.2		$	18.5
Net investment income (loss)	—			—			—			—			—			—			—			—
Fee revenue and other income	—			—			—			—			—			—			—			—
Total revenues	15.5			15.5			15.9			16.6			63.5			17.5			18.2			18.5

Benefits and expenses
Insurance policy benefits	6.7			6.6			6.8			7.1			27.2			7.3			7.6			7.8
Interest expense	—			—			—			—			—			—			—			—
Amortization	0.8			0.9			0.9			1.0			3.6			1.1			1.1			1.2
Other operating costs and expenses	11.3			10.1			10.3			12.3			44.0			11.9			12.0			12.0
Total benefits and expenses	18.8			17.6			18.0			20.4			74.8			20.3			20.7			21.0
EBIT from New Business	$	(3.3	)	$	(2.1	)	$	(2.1	)	$	(3.8	)	$	(11.3	)	$	(2.8	)	$	(2.5	)	$	(2.5	)


EBIT from In-Force and New Business

Revenues
Insurance policy income	$	152.9		$	153.1		$	159.2		$	156.3		$	621.5		$	155.6		$	156.7		$	154.0
Net investment income (loss)	77.9			69.8			72.9			76.3			296.9			69.0			71.8			65.2
Fee revenue and other income	0.2			0.2			0.3			0.2			0.9			0.2			0.2			0.3
Total revenues	231.0			223.1			232.4			232.8			919.3			224.8			228.7			219.5

Benefits and expenses
Insurance policy benefits	137.7			130.3			141.6			131.8			541.4			131.8			132.8			129.5
Interest expense	0.5			0.5			0.5			0.4			1.9			0.4			0.5			0.4
Amortization	17.1			16.2			14.4			17.2			64.9			16.3			16.0			14.8
Other operating costs and expenses	41.7			40.3			42.9			45.6			170.5			45.2			47.1			47.2
Total benefits and expenses	197.0			187.3			199.4			195.0			778.7			193.7			196.4			191.9
EBIT from In-Force and New Business	$	34.0		$	35.8		$	33.0		$	37.8		$	140.6		$	31.1		$	32.3		$	27.6

Page 13



CNO Financial Group, Inc.
Colonial Penn
Analysis of income (loss) before taxes (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Insurance policy income	$	56.9		$	58.0		$	58.1		$	59.1		$	232.1		$	60.5		$	61.7		$	61.7
Net investment income on general account invested assets	9.9			9.9			10.2			10.0			40.0			10.7			10.5			10.3
Fee revenue and other income	0.2			0.2			0.2			0.2			0.8			0.2			0.3			0.2
Total revenues	67.0			68.1			68.5			69.3			272.9			71.4			72.5			72.2

Insurance policy benefits	42.8			41.1			39.6			41.5			165.0			44.5			43.1			40.9
Amounts added to annuity and interest-sensitive life product account balances	0.2			0.1			0.2			0.2			0.7			0.2			0.1			0.2
Amortization related to operations	3.7			3.7			3.7			3.4			14.5			4.0			3.8			3.7
Other operating costs and expenses	25.7			22.0			29.2			28.3			105.2			28.9			21.7			27.0
Total benefits and expenses	72.4			66.9			72.7			73.4			285.4			77.6			68.7			71.8
EBIT (4)	$	(5.4	)	$	1.2		$	(4.2	)	$	(4.1	)	$	(12.5	)	$	(6.2	)	$	3.8		$	0.4



Average liabilities for insurance products (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

SPIAs - mortality based	$	74.8		$	74.4		$	73.5		$	71.3		$	73.5		$	69.4		$	68.8		$	68.3
Health:
Medicare supplement	9.6			9.3			9.1			8.9			9.2			8.6			8.3			8.1
Other health	4.8			4.8			4.7			4.6			4.7			4.5			4.5			4.5
Life:
Interest sensitive	17.7			17.7			17.4			17.1			17.5			17.1			17.1			17.1
Non-interest sensitive	618.1			629.9			631.7			637.8			629.4			644.5			648.2			651.1
Total average liabilities for insurance products, net of reinsurance ceded	$	725.0		$	736.1		$	736.4		$	739.7		$	734.3		$	744.1		$	746.9		$	749.1



Present value of future profits (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	63.6		$	61.6		$	59.6		$	57.7		$	63.6		$	55.7		$	53.8		$	52.1
Amortization related to operations	(2.0		)	(2.0		)	(1.9		)	(2.0		)	(7.9		)	(1.9		)	(1.7		)	(1.7		)
Balance, end of period	$	61.6		$	59.6		$	57.7		$	55.7		$	55.7		$	53.8		$	52.1		$	50.4



Deferred acquisition costs (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Balance, beginning of period	$	57.5		$	59.1		$	60.7		$	61.7		$	57.5		$	67.4		$	68.8		$	70.4
Deferred acquisition expenses	3.3			3.3			2.8			3.1			12.5			3.5			3.7			3.6
Amortization related to operations	(1.7		)	(1.7		)	(1.8		)	(1.4		)	(6.6		)	(2.1		)	(2.1		)	(2.0		)
Other	—			—			—			4.0			4.0			—			—			—
Balance, end of period	$	59.1		$	60.7		$	61.7		$	67.4		$	67.4		$	68.8		$	70.4		$	72.0

Page 14



Colonial Penn Segment EBIT Summarized by In-Force and New Business (6)
(in millions)

CNO Financial Group, Inc.
EBIT from In-Force Business	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Revenues
Insurance policy income	$	45.6		$	46.5		$	46.9		$	48.0		$	187.0		$	49.3		$	50.2		$	50.2
Net investment income (loss)	9.9			9.9			10.2			10.0			40.0			10.7			10.5			10.3
Fee revenue and other income	0.2			0.2			0.2			0.2			0.8			0.2			0.3			0.2
Total revenues	55.7			56.6			57.3			58.2			227.8			60.2			61.0			60.7

Benefits and expenses
Insurance policy benefits	36.5			34.6			33.3			35.4			139.8			38.3			36.6			34.5
Amortization	3.6			3.6			3.6			3.3			14.1			3.9			3.7			3.6
Other operating costs and expenses	6.8			6.0			7.5			7.4			27.7			7.7			7.6			7.7
Total benefits and expenses	46.9			44.2			44.4			46.1			181.6			49.9			47.9			45.8
EBIT from In-Force Business	$	8.8		$	12.4		$	12.9		$	12.1		$	46.2		$	10.3		$	13.1		$	14.9


EBIT from New Business

Revenues
Insurance policy income	$	11.3		$	11.5		$	11.2		$	11.1		$	45.1		$	11.2		$	11.5		$	11.5
Net investment income (loss)	—			—			—			—			—			—			—			—
Fee revenue and other income	—			—			—			—			—			—			—			—
Total revenues	11.3			11.5			11.2			11.1			45.1			11.2			11.5			11.5

Benefits and expenses
Insurance policy benefits	6.5			6.6			6.5			6.3			25.9			6.4			6.6			6.6
Amortization	0.1			0.1			0.1			0.1			0.4			0.1			0.1			0.1
Other operating costs and expenses	18.9			16.0			21.7			20.9			77.5			21.2			14.1			19.3
Total benefits and expenses	25.5			22.7			28.3			27.3			103.8			27.7			20.8			26.0
EBIT from New Business	$	(14.2	)	$	(11.2	)	$	(17.1	)	$	(16.2	)	$	(58.7	)	$	(16.5	)	$	(9.3	)	$	(14.5	)


EBIT from In-Force and New Business

Revenues
Insurance policy income	$	56.9		$	58.0		$	58.1		$	59.1		$	232.1		$	60.5		$	61.7		$	61.7
Net investment income (loss)	9.9			9.9			10.2			10.0			40.0			10.7			10.5			10.3
Fee revenue and other income	0.2			0.2			0.2			0.2			0.8			0.2			0.3			0.2
Total revenues	67.0			68.1			68.5			69.3			272.9			71.4			72.5			72.2

Benefits and expenses
Insurance policy benefits	43.0			41.2			39.8			41.7			165.7			44.7			43.2			41.1
Amortization	3.7			3.7			3.7			3.4			14.5			4.0			3.8			3.7
Other operating costs and expenses	25.7			22.0			29.2			28.3			105.2			28.9			21.7			27.0
Total benefits and expenses	72.4			66.9			72.7			73.4			285.4			77.6			68.7			71.8
EBIT from In-Force and New Business	$	(5.4	)	$	1.2		$	(4.2	)	$	(4.1	)	$	(12.5	)	$	(6.2	)	$	3.8		$	0.4

Page 15



CNO Financial Group, Inc.
Corporate Operations
Analysis of loss before taxes (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14			3Q14

Net investment income (loss):
General investment portfolio	$	1.1		$	1.5		$	1.2		$	1.6		$	5.4		$	1.8		$	1.7		$	2.2
Other special-purpose portfolios	9.0			3.0			9.8			12.6			34.4			5.2			4.0			(3.2		)
Fee revenue and other income	1.7			1.5			1.7			1.3			6.2			1.4			1.3			1.9
Interest expense on investment borrowings	(0.1		)	—			—			—			(0.1		)	—			—			—
Other operating costs and expenses	(8.7		)	(3.6		)	(3.3		)	(11.7		)	(27.3		)	(14.4		)	(22.5		)	(10.0		)
Corporate operations, excluding corporate interest expense	3.0			2.4			9.4			3.8			18.6			(6.0		)	(15.5		)	(9.1		)
Interest expense on corporate debt	(15.1		)	(13.1		)	(11.7		)	(11.4		)	(51.3		)	(11.1		)	(11.1		)	(10.9		)
Operating loss before taxes	$	(12.1	)	$	(10.7	)	$	(2.3	)	$	(7.6	)	$	(32.7	)	$	(17.1	)	$	(26.6	)	$	(20.0	)

Page 16

There is no Other CNO Business segment beginning in 1Q14.



CNO Financial Group, Inc.
Other CNO Business
Analysis of loss before taxes (in millions)	1Q13			2Q13			3Q13			4Q13			2013

Insurance policy income	$	6.2		$	6.1		$	5.9		$	5.9		$	24.1
Net investment income on general account invested assets	8.4			8.4			8.0			8.5			33.3
Total revenues	14.6			14.5			13.9			14.4			57.4

Insurance policy benefits	15.6			15.3			13.5			14.8			59.2
Other operating costs and expenses:
Related to long-term care block reinsured effective December 31, 2013	1.7			1.4			1.4			1.7			6.2
Overhead expense of CLIC expected to continue after the completion of the sale	4.6			5.0			4.7			5.3			19.6
Total benefits and expenses	21.9			21.7			19.6			21.8			85.0
EBIT (4)	$	(7.3	)	$	(7.2	)	$	(5.7	)	$	(7.4	)	$	(27.6	)



Health underwriting margins (in millions)	1Q13			2Q13			3Q13			4Q13			2013

Long-term care:
Earned premium	$	6.2		$	6.1		$	5.9		$	5.9		$	24.1
Benefit ratio before interest income on reserves	252.2		%	251.0		%	227.5		%	252.0		%	245.7		%
Interest-adjusted benefit ratio	140.7		%	137.6		%	111.6		%	134.4		%	131.2		%
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	(2.5	)	$	(2.3	)	$	(0.7	)	$	(2.0	)	$	(7.5	)





Average liabilities for insurance products (in millions)	1Q13		2Q13		3Q13		4Q13		2013

Average liabilities for long-term care products, net of reinsurance ceded	$	468.0	$	468.0	$	467.3	$	466.4	$	467.4

Page 17



CNO Financial Group, Inc.
Bankers Life
Premiums collected on insurance products (in millions)	1Q13		2Q13		3Q13			4Q13		2013		1Q14		2Q14		3Q14

Annuities

Fixed index (first-year)	$	126.6	$	143.4	$	143.3		$	153.5	$	566.8	$	147.3	$	166.6	$	152.2

Other fixed rate (first-year)	37.2		38.5		45.3			49.6		170.6		41.4		32.2		27.3
Other fixed rate (renewal)	1.8		1.8		1.6			1.5		6.7		1.8		2.0		2.0
Subtotal - other fixed rate annuities	39.0		40.3		46.9			51.1		177.3		43.2		34.2		29.3

Total annuities	165.6		183.7		190.2			204.6		744.1		190.5		200.8		181.5

Health

Medicare supplement (first-year)	22.7		22.7		22.3			24.4		92.1		21.2		22.3		21.9
Medicare supplement (renewal)	162.5		153.4		159.7			177.6		653.2		158.2		155.5		162.6
Subtotal - Medicare supplement	185.2		176.1		182.0			202.0		745.3		179.4		177.8		184.5

Long-term care (first-year)	5.7		5.4		5.1			5.0		21.2		4.4		4.2		4.0
Long-term care (renewal)	129.7		127.8		126.0			129.3		512.8		119.3		122.0		120.0
Subtotal - long-term care	135.4		133.2		131.1			134.3		534.0		123.7		126.2		124.0

PDP (first-year)	0.1		—		—			—		0.1		—		—		—
PDP (renewal)	10.1		10.5		(2.5		)	—		18.1		6.8		—		—
Subtotal - PDP	10.2		10.5		(2.5		)	—		18.2		6.8		—		—

Supplemental health (first-year)	1.6		2.0		2.3			2.4		8.3		2.1		2.0		1.7
Supplemental health (renewal)	—		0.2		0.5			0.9		1.6		1.5		2.0		2.4
Subtotal - supplemental health	1.6		2.2		2.8			3.3		9.9		3.6		4.0		4.1

Other health (first-year)	0.3		0.4		0.3			0.3		1.3		0.2		0.2		0.2
Other health (renewal)	2.4		2.2		2.2			2.3		9.1		1.8		1.9		1.8
Subtotal - other health	2.7		2.6		2.5			2.6		10.4		2.0		2.1		2.0

Total health	335.1		324.6		315.9			342.2		1,317.8		315.5		310.1		314.6

Life insurance

First-year	42.4		41.0		41.7			38.2		163.3		38.2		39.2		40.9
Renewal	47.1		50.1		52.5			55.3		205.0		55.8		62.3		73.0

Total life insurance	89.5		91.1		94.2			93.5		368.3		94.0		101.5		113.9

Collections on insurance products

Total first-year premium collections on insurance products	236.6		253.4		260.3			273.4		1,023.7		254.8		266.7		248.2
Total renewal premium collections on insurance products	353.6		346.0		340.0			366.9		1,406.5		345.2		345.7		361.8

Total collections on insurance products	$	590.2	$	599.4	$	600.3		$	640.3	$	2,430.2	$	600.0	$	612.4	$	610.0

Page 18



CNO Financial Group, Inc.
Washington National
Premiums collected on insurance products (in millions)	1Q13		2Q13		3Q13		4Q13		2013		1Q14		2Q14		3Q14

Annuities

Fixed index (first-year)	$	0.2	$	0.1	$	0.1	$	—	$	0.4	$	0.1	$	—	$	0.1
Fixed index (renewal)	0.6		1.3		1.0		0.5		3.4		0.4		0.4		0.7
Subtotal - fixed index annuities	0.8		1.4		1.1		0.5		3.8		0.5		0.4		0.8

Other fixed rate (renewal)	0.1		—		0.2		0.2		0.5		0.1		0.2		0.1

Total annuities	0.9		1.4		1.3		0.7		4.3		0.6		0.6		0.9

Health

Medicare supplement (first-year)	0.2		—		—		0.1		0.3		—		—		—
Medicare supplement (renewal)	26.4		25.0		24.2		26.0		101.6		21.1		21.7		20.3
Subtotal - Medicare supplement	26.6		25.0		24.2		26.1		101.9		21.1		21.7		20.3

Supplemental health (first-year)	15.6		16.3		16.1		16.7		64.7		16.7		18.5		18.5
Supplemental health (renewal)	104.7		105.6		106.6		109.7		426.6		109.2		110.6		108.6
Subtotal - supplemental health	120.3		121.9		122.7		126.4		491.3		125.9		129.1		127.1

Other health (first-year)	—		—		0.1		0.1		0.2		—		0.1		—
Other health (renewal)	0.8		0.8		0.5		0.8		2.9		0.6		0.5		0.6
Subtotal - other health	0.8		0.8		0.6		0.9		3.1		0.6		0.6		0.6

Total health	147.7		147.7		147.5		153.4		596.3		147.6		151.4		148.0

Life insurance

First-year	1.2		1.1		1.0		1.3		4.6		1.1		1.5		0.9
Renewal	5.1		5.2		5.1		6.5		21.9		5.4		4.9		5.4

Total life insurance	6.3		6.3		6.1		7.8		26.5		6.5		6.4		6.3

Collections on insurance products

Total first-year premium collections on insurance products	17.2		17.5		17.3		18.2		70.2		17.9		20.1		19.5
Total renewal premium collections on insurance products	137.7		137.9		137.6		143.7		556.9		136.8		138.3		135.7

Total collections on insurance products	$	154.9	$	155.4	$	154.9	$	161.9	$	627.1	$	154.7	$	158.4	$	155.2

Page 19



CNO Financial Group, Inc.
Colonial Penn
Premiums collected on insurance products (in millions)	1Q13		2Q13		3Q13		4Q13		2013		1Q14		2Q14		3Q14

Life insurance

First-year	$	11.4	$	11.4	$	11.4	$	11.0	$	45.2	$	11.3	$	11.3	$	11.6
Renewal	44.7		45.0		46.2		46.5		182.4		48.8		48.7		49.5

Total life insurance	56.1		56.4		57.6		57.5		227.6		60.1		60.0		61.1

Health (all renewal)

Medicare supplement	1.0		0.9		0.9		0.9		3.7		0.8		0.8		0.8

Other health	0.1		0.1		0.1		0.1		0.4		0.1		0.1		—

Total health	1.1		1.0		1.0		1.0		4.1		0.9		0.9		0.8

Collections on insurance products

Total first-year premium collections on insurance products	11.4		11.4		11.4		11.0		45.2		11.3		11.3		11.6
Total renewal premium collections on insurance products	45.8		46.0		47.2		47.5		186.5		49.7		49.6		50.3

Total collections on insurance products	$	57.2	$	57.4	$	58.6	$	58.5	$	231.7	$	61.0	$	60.9	$	61.9

Page 20



CNO Financial Group, Inc.
New Annualized Premiums ("NAP") (in millions)


Bankers Life	1Q13		2Q13		3Q13		4Q13		2013		1Q14		2Q14		3Q14

Medicare supplement	$	19.1	$	19.0	$	18.7	$	31.5	$	88.3	$	19.0	$	17.6	$	17.0
Long-term care	6.1		6.5		6.2		5.7		24.5		4.6		4.7		5.6
Supplemental health	2.8		2.7		2.6		2.2		10.3		2.2		1.8		1.7
Life	22.5		24.2		23.5		22.4		92.6		26.0		27.1		26.7
Annuity	10.0		10.8		11.5		12.1		44.4		11.3		11.9		10.8
Subtotal Bankers Life	60.5		63.2		62.5		73.9		260.1		63.1		63.1		61.8


Washington National

Supplemental health	19.2		21.3		22.5		24.8		87.8		21.3		23.9		24.0
Life	1.4		1.9		1.3		1.4		6.0		0.7		1.3		1.6
Annuity	—		0.1		0.1		—		0.2		—		0.1		—
Subtotal Washington National	20.6		23.3		23.9		26.2		94.0		22.0		25.3		25.6


Colonial Penn

Graded Life	17.0		15.8		15.4		14.0		62.2		16.8		16.5		16.4



Total NAP	$	98.1	$	102.3	$	101.8	$	114.1	$	416.3	$	101.9	$	104.9	$	103.8

Page 21



CNO Financial Group, Inc.
Statutory information - consolidated basis (7) (in millions)	1Q13			2Q13		3Q13		4Q13			2013			1Q14			2Q14		3Q14 (a)

Net gain from operations before interest expense and federal income taxes	$	123.4		$	115.4	$	109.4	$	80.4		$	428.6		$	104.3		$	147.1	$	88.8
Interest expense on surplus debentures held by parent company	12.0			12.2		27.2		12.3			63.7			12.0			12.1		26.9

Net gain from operations before federal income taxes	111.4			103.2		82.2		68.1			364.9			92.3			135.0		61.9
Federal income tax expense (benefit)	(1.1		)	1.1		0.8		(3.4		)	(2.6		)	0.1			2.3		1.8

Net gain from operations before net realized capital gains (losses)	112.5			102.1		81.4		71.5			367.5			92.2			132.7		60.1
Net realized capital gains (losses)	9.7			4.1		5.3		(0.1		)	19.0			(8.9		)	3.8		(3.3		)

Net income	$	122.2		$	106.2	$	86.7	$	71.4		$	386.5		$	83.3		$	136.5	$	56.8



Capital and surplus	$	1,579.8		$	1,626.8	$	1,660.6	$	1,711.9		$	1,711.9		$	1,769.8		$	1,827.9	$	1,601.4
Asset valuation reserve (AVR)	234.3			238.1		240.9		233.9			233.9			227.8			229.2		204.9

Capital, surplus and AVR	1,814.1			1,864.9		1,901.5		1,945.8			1,945.8			1,997.6			2,057.1		1,806.3

Interest maintenance reserve (IMR)	587.2			586.1		579.8		582.5			582.5			593.1			590.6		509.5

Total statutory capital, surplus, AVR & IMR	$	2,401.3		$	2,451.0	$	2,481.3	$	2,528.3		$	2,528.3		$	2,590.7		$	2,647.7	$	2,315.8

(a) Such amounts are preliminary as the statutory basis financial statements of our insurance subsidiaries for 3Q14

will be filed with the respective insurance regulators on or about November 14, 2014.

The statutory information above includes CLIC in periods prior to 3Q14.

Page 22



CNO Financial Group, Inc.
Amounts related to CLIC prior to being sold
Analysis of income (loss) before taxes (in millions)	1Q13		2Q13		3Q13		4Q13		2013		1Q14			2Q14

Insurance policy income	$	57.2	$	55.0	$	55.5	$	50.6	$	218.3	$	53.5		$	52.5
Net investment income (loss):
General account invested assets	53.2		52.9		52.0		52.1		210.2		51.0			49.7
Fixed index products	2.2		0.8		1.3		3.6		7.9		(0.1		)	1.4
Fee revenue and other income	—		—		—		5.1		5.1		—			—
Total revenues	112.6		108.7		108.8		111.4		441.5		104.4			103.6

Insurance policy benefits	64.6		57.3		60.7		57.0		239.6		61.7			54.1
Amounts added to policyholder account balances:
Cost of interest credited to policyholders	23.3		22.7		22.5		21.7		90.2		21.6			21.6
Cost of options to fund index credits, net of forfeitures	0.4		0.3		0.4		0.3		1.4		0.4			0.4
Market value changes credited to policyholders	2.1		1.0		1.3		3.5		7.9		(0.1		)	1.0
Amortization related to operations	2.2		2.7		2.0		1.9		8.8		2.0			2.3
Interest expense on investment borrowings	4.8		4.8		4.8		4.9		19.3		4.7			4.4
Other operating costs and expenses	8.9		14.1		10.2		7.8		41.0		5.8			7.5
Total benefits and expenses	106.3		102.9		101.9		97.1		408.2		96.1			91.3
Income before net realized investment gains and income taxes	6.3		5.8		6.9		14.3		33.3		8.3			12.3
Net realized investment gains	2.1		1.6		1.6		0.7		6.0		2.1			0.7
Amortization related to net realized investment gains	—		—		—		—		—		—			—
Net realized investment gains, net of related amortization	2.1		1.6		1.6		0.7		6.0		2.1			0.7
Income before income taxes	8.4		7.4		8.5		15.0		39.3		10.4			13.0
Income tax expense on period income	2.9		2.6		3.0		5.3		13.8		3.7			4.5
Net income	$	5.5	$	4.8	$	5.5	$	9.7	$	25.5	$	6.7		$	8.5

Page 23



CNO Financial Group, Inc.
Amounts related to CLIC prior to being sold
Average liabilities for insurance products (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14

Fixed index annuities	$	—		$	0.8		$	0.8		$	0.8		$	0.6		$	0.8		$	0.8
Deferred annuities	151.9			148.9			147.3			145.3			148.4			143.9			142.9
SPIAs and supplemental contracts:
Mortality based	40.3			39.4			38.8			38.2			39.2			37.7			36.9
Deposit based	111.4			109.6			105.1			100.6			106.7			96.7			94.4
Health:
Supplemental health	153.6			149.0			145.0			140.4			146.9			136.3			—
Medicare supplement	2.5			2.2			2.1			2.0			2.2			1.9			—
Other health	6.8			6.7			6.7			6.7			6.7			6.8			—
Life:
Interest sensitive	2,354.0			2,333.9			2,305.8			2,277.4			2,317.8			2,253.8			2,233.3
Non-interest sensitive	439.9			433.0			429.2			426.4			432.1			421.2			415.4
Total average liabilities for insurance products, net of reinsurance ceded	$	3,260.4		$	3,223.5		$	3,180.8		$	3,137.8		$	3,200.6		$	3,099.1		$	2,923.7



Present value of future profits (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14

Balance, beginning of period	$	17.7		$	17.4		$	16.6		$	16.5		$	17.7		$	16.1		$	15.8
Amortization related to operations	(0.7		)	(0.8		)	(0.2		)	(0.6		)	(2.3		)	(0.3		)	(0.3		)
Amortization related to net realized investment (gains) losses	—			—			—			—			—			—			—
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	0.4			—			0.1			0.2			0.7			—			—
Balance, end of period	$	17.4		$	16.6		$	16.5		$	16.1		$	16.1		$	15.8		$	15.5



Deferred acquisition costs (in millions)	1Q13			2Q13			3Q13			4Q13			2013			1Q14			2Q14

Balance, beginning of period	$	44.2		$	43.0		$	42.7		$	41.8		$	44.2		$	40.7		$	39.0
Deferred acquisition expenses	0.3			0.6			0.7			0.2			1.8			0.4			0.9
Amortization related to operations	(1.5		)	(1.9		)	(1.8		)	(1.3		)	(6.5		)	(1.7		)	(2.0		)
Amortization related to net realized investment (gains) losses	—			—			—			—			—			—			—
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	—			1.0			0.2			—			1.2			(0.4		)	(0.3		)
Balance, end of period	$	43.0		$	42.7		$	41.8		$	40.7		$	40.7		$	39.0		$	37.6



Premiums collected on insurance products (in millions)	1Q13		2Q13		3Q13		4Q13		2013		1Q14		2Q14

Annuities

Other fixed rate (all renewal)	$	0.1	$	0.1	$	0.1	$	—	$	0.3	$	—	$	0.2

Life insurance

First-year	—		0.2		0.1		—		0.3		—		—
Renewal	38.4		36.4		35.0		31.9		141.7		36.2		34.8

Total life insurance	38.4		36.6		35.1		31.9		142.0		36.2		34.8

Collections on insurance products

Total first-year premium collections on insurance products	—		0.2		0.1		—		0.3		—		—
Total renewal premium collections on insurance products	38.5		36.5		35.1		31.9		142.0		36.2		35.0

Total collections on insurance products	$	38.5	$	36.7	$	35.2	$	31.9	$	142.3	$	36.2	$	35.0

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Notes

(1) Excludes accumulated other comprehensive income.

(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 and warrants were exercised, restricted stock and performance units were vested and convertible securities were converted. The dilution from options, warrants, 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 and warrants (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. The dilution from convertible securities is calculated assuming the securities were converted on the last day of the period.

(4) Management believes that an analysis of earnings before the net loss on the sale of CLIC and gain (loss) on reinsurance transactions, the earnings of CLIC prior to being sold, net realized investment gains (losses), fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net revenue pursuant to transition and support services agreements, corporate interest expense, equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities, loss on extinguishment or modification of debt and taxes (“EBIT,” a non-GAAP financial measure) provides a clearer comparison of the operating results of the company quarter-over-quarter because these items are unrelated to the company's underlying fundamentals.

(5) Management believes that an analysis of Net income applicable to common stock before: (i) the net loss on the sale of CLIC and gain (loss) on reinsurance transactions, including impact of taxes; (ii) the earnings of CLIC prior to being sold, net of taxes; (iii) net realized investment gains or losses, net of related amortization and taxes; (iv) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (v) equity in earnings of certain non-strategic investments and earnings attributable to variable interest entities, net of taxes; (vi) net revenue pursuant to transition and support services agreements, net of taxes; (vii) loss on extinguishment or modification of debt, net of taxes; and (viii) changes in the valuation allowance for deferred tax assets and other tax items (“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.

(6) Management believes that an analysis of EBIT, separated between in-force and new business provides increased clarity around the value drivers of our business, particularly since the new business results are significantly impacted by the rate of sales, mix of business and the distribution channel through which new sales are made. 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. 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.

(7) 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.

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