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): February 11, 2013

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))	

1 

	
		
Item 2.02.	Results of Operations and Financial Condition.	

On February 11, 2013, CNO Financial Group, Inc. (the "Company") issued: (i) a press release announcing its financial results for the quarter ended December 31, 2012, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference; and (ii) additional financial information related to the Company's financial and operating results for the quarter ended December 31, 2012, 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 February 11, 2013 related to financial results for the quarter ended December 31, 2012.	
99.2	Quarterly Financial Supplement - 4Q2012.	

2 

SIGNATURES

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

	
				
 	CNO Financial Group, Inc.	
 	 	
Date: February 11, 2013	 	
 	By:	/s/ John R. Kline	 	
 	 	John R. Kline	 	
 	 	Senior Vice President and
Chief Accounting Officer	 	

3 

Exhibit 99.1

For Immediate Release

	
		
Contact:	(News Media)  Tony Zehnder +1.312.396.7086	
 	(Investors)  Erik Helding +1.317.817.4760	

CNO Financial Group reports fourth quarter and full year 2012 results

Results reflect continued growth in core production and earnings
Financial position supports capital deployment guidance

Carmel, Ind. February 11, 2013 - CNO Financial Group, Inc. (NYSE: CNO) today announced fourth quarter of 2012 net income of $101.2 million, or 41 cents per diluted share, and operating earnings (1) of $60.0 million, or 25 cents per diluted share. For the full year, CNO reported net income of $221.0 million, or 83 cents per diluted share, and operating earnings (1) of $180.4 million, or 69 cents per diluted share.
"We again delivered positive results with strong earnings growth for both the fourth quarter and full year, as our businesses continued to perform well," CEO Ed Bonach said. "We are also pleased with our growth, sales distribution expansion, and that CNO's key measures of financial strength, including risk-based capital, liquidity, and book value, all continued to improve."

Fourth Quarter 2012 Highlights
		
•	Sales, as defined by total new annualized premium ("NAP") (2): $105.7 million, up 2% from 4Q11	
		
•	Net income per diluted share: 41 cents, compared to 23 cents in 4Q11	
		
•	Net operating income (1) per diluted share: 25 cents compared to 18 cents in 4Q11	
		
•	Reduction to the deferred tax valuation allowance reflecting the higher levels of operating income and taxable investment gains realized: increase to net income of $28.5 million	
		
•	Unrestricted cash and investments held by our non-insurance companies were $294 million at December 31, 2012 after the repurchase of 8.6 million shares for $80.7 million, repayment of debt of $31.6 million and common stock dividend payments of $4.5 million	

Full Year 2012 Highlights
		
•	Sales, as defined by total NAP (2): $393.4 million, up 5% from 2011	
		
•	Net income per diluted share of 83 cents, compared to $1.15 in 2011	
		
•	Net operating income (1) per diluted share: 69 cents compared to 61 cents in 2011	
		
•	The consolidated statutory risk-based capital ratio increased 9 percentage points to 367% during 2012, reflecting statutory earnings of $337 million and dividend payments to the non-insurance holding companies of $265 million	
		
•	Repurchase of 21.5 million shares for $180 million and redemption of $200 million principal amount of convertible debentures for $355 million that would have otherwise been convertible into 36.6 million shares	

-more-

CNO Financial (2)
February 11, 2013

Quarterly Segment Operating Results

								
 	Three months ended	
 	December 31,	
 	2012	 	2011	
 	(Dollars in millions, except per-share data)	
EBIT (4):	 	 	 	
Bankers Life	$	73.7		 	$	77.2		
Washington National	34.6		 	28.8		
Colonial Penn	3.2		 	1.8		
Other CNO Business	5.2		 	—		
EBIT from business segments	116.7		 	107.8		
Corporate Operations, excluding corporate interest expense	(2.7	)	 	(8.4	)	
EBIT	114.0		 	99.4		
Corporate interest expense	(15.8	)	 	(17.7	)	
Operating earnings before tax	98.2		 	81.7		
Tax expense on operating income	38.2		 	30.7		
Net operating income (1)	60.0		 	51.0		
Net realized investment gains (net of related amortization and taxes)	10.8		 	14.0		
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	2.6		 	(.4	)	
Loss on extinguishment of debt (net of income taxes)	(.7	)	 	(.2	)	
Net income before valuation allowance for deferred tax assets	72.7		 	64.4		
Decrease in valuation allowance for deferred tax assets	28.5		 	—		
Net income	$	101.2		 	$	64.4		
Per diluted share:	 	 	 	
Net operating income	$	.25		 	$	.18		
Net realized investment gains (net of related amortization and taxes)	.04		 	.05		
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	.01		 	—		
Loss on extinguishment of debt (net of income taxes)	—		 	—		
Decrease in valuation allowance for deferred tax assets	.11		 	—		
Net income	$	.41		 	$	.23		

-more-

CNO Financial (3)
February 11, 2013

Our businesses performed at the high end of our seasonally adjusted expected range in 4Q12. Pre-tax operating earnings benefited from the following items: (i) $8 million of call and prepayment income above expectations across all segments; and (ii) $7 million from favorable mortality in the universal life and traditional life blocks of business in the Other CNO Business segment. In addition, several significant items (as described in the segment results) impacted our 4Q12 net operating income as summarized below (dollars in millions, except per share amounts):          

												
 	Three months ended	
 	December 31, 2012*	
 	Actual results	 	Significant items	 	Excluding significant items	
Net Operating Income (1):	 	 	 	 	 	
Bankers Life	$	73.7		 	$	4.0		 	$	77.7		
Washington National	34.6		 	—		 	34.6		
Colonial Penn	3.2		 	—		 	3.2		
Other CNO Business	5.2		 	11.3		 	16.5		
EBIT from business segments	116.7		 	15.3		 	132.0		
Corporate Operations, excluding corporate interest expense	(2.7	)	 	—		 	(2.7	)	
EBIT (4)	114.0		 	15.3		 	129.3		
Corporate interest expense	(15.8	)	 	—		 	(15.8	)	
Operating earnings before tax	98.2		 	15.3		 	113.5		
Tax expense on operating income	38.2		 	2.7		 	40.9		
Net operating income	$	60.0		 	$	12.6		 	$	72.6		
 	 	 	 	 	 	
Net operating income per diluted share	$	.25		 	$	.05		 	$	.30		

* See page 10 for the table of Net Operating Income Excluding Significant Items for the three months ended December 31, 2011.
Segment Results
Bankers Life markets and distributes a variety of insurance products to the middle-income senior market through a dedicated field force of career agents. NAP in 4Q12 was $69.3 million, down .7% from 4Q11 with higher sales of life products being offset by lower annuity sales as a result of the low interest rate environment and product adjustments. Excluding annuities, NAP in 4Q12 was up 5%, driven by an increase in agent force due to gains in agent retention.
Pre-tax operating earnings in 4Q12 included $8 million of increased litigation expense offset by the release of long-term care reserves of approximately $4 million due to the impact of policyholder actions following recent rate increases.
Pre-tax operating earnings in 4Q11 of $77.2 million included approximately $11 million of favorable reserve developments in the long-term care and Medicare supplement blocks.
We expect this segment to experience normal seasonal variances in quarterly earnings during 2013, with the first quarter of the year typically having lower earnings than the other three quarters (substantially similar to the seasonal trends experienced over the last two years).

-more-

CNO Financial (4)
February 11, 2013

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 4Q12 was $22.8 million, up 8% from 4Q11 due to increased sales of core supplemental health products. Sales in the quarter benefited from distribution expansion and an increase in voluntary worksite sales, which were up 12%.
Pre-tax operating earnings in 4Q12 compared to 4Q11 were up $5.8 million, or 20 percent. Such increase primarily reflects increased earnings from our supplemental health products due to growth in this block of business and favorable claim experience.
Pre-tax operating earnings in 4Q11 of $28.8 million included: (i) a $4.5 million out-of-period adjustment which reduced earnings; and (ii) approximately $3.7 million of favorable reserve developments in the supplemental health block.
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 4Q12 was $13.6 million, up 11% from 4Q11. Sales in the quarter benefited from an increase in lead levels and higher buy rates, which demonstrate the benefits of our increased investment in marketing and advertising.
Pre-tax operating earnings in 4Q12 compared to 4Q11 were up $1.4 million or 78 percent. Such increase primarily reflects lower non-deferrable policy acquisition and marketing costs during the quarter.
This segment's results are significantly impacted by the adoption of the new accounting standard related to deferred acquisition costs. We are no longer able to defer most of Colonial Penn's direct response advertising costs although such costs generate predictable sales and future inforce profits. The amount of our investment in new business during a particular period will have a significant impact on this segment's results. Based on our current advertising plan, this segment expects to report a $5 million to $10 million pre-tax loss for 2013, with the majority of the loss expected to be reported in 1Q13.
Other CNO Business consists of blocks of various insurance products that are no longer being actively marketed. Its earnings will often fluctuate between periods.
The results in 4Q12 reflect: (i) a $6 million out-of-period adjustment which reduced earnings; (ii) a $5 million charge for litigation expense in the Company's subsidiary, Conseco Life Insurance Company; partially offset by (iii) favorable mortality of approximately $7 million in the universal life and traditional life blocks of business.
Corporate Operations includes our investment advisory subsidiary and corporate expenses.
Pre-tax earnings in 4Q12 compared to 4Q11 reflect an increase in investment income, consistent with our investment strategies in the corporate segment.
Net expenses in 4Q11 included: (i) a charge of $10 million related to the impact of lower interest rates on the value of liabilities for agent deferred compensation and other retirement benefits; and (ii) a reduction in expenses of $7.4 million related to a true-up of the expense assumptions related to stock-based compensation to reflect actual and future expected forfeitures.
Net expenses, excluding corporate interest expense, in 4Q12 compared to 4Q11 were down $5.7 million reflecting: (i) a $7.1 million increase in income from investment trading account activities and an increase in value of certain hedge funds; (ii) a net reduction in expenses of $2.6 million resulting from the two significant items discussed in the previous paragraph; partially offset by (iii) a $3.2 million decrease in the value of Company-owned life insurance.
Non-Operating Items
Net realized investment gains in 4Q12 were $10.8 million (net of related amortization and taxes), including total other-than-temporary impairment losses of $3.3 million. Net realized investment gains in 4Q11 were $14.0 million (net of related amortization and taxes), including total other-than-temporary impairment losses of $8.3 million.
-more-

CNO Financial (5)
February 11, 2013

During 4Q12 and 4Q11, we recognized an increase (decrease) to earnings of $2.6 million and $(.4) million, respectively, 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 amounts reflect the changes in market interest rates used to determine the derivative's estimated fair value.
The results for 4Q12 and 4Q11 include losses on the early extinguishment of debt, net of income taxes, of $.7 million and $.2 million, respectively.
In 4Q12, we reduced the valuation allowance for deferred taxes by $28.5 million resulting from the utilization of capital loss carryforwards, higher projections of future taxable income related to state income taxes and the impact of valuation allowance reduction identified in 3Q12 on our annual effective tax rate.
Book value per common share, excluding other comprehensive income (loss) (5), increased to $17.39 from $15.88 at December 31, 2011.
Statutory (based on non-GAAP measures) and GAAP Capital Information
Our consolidated statutory risk-based capital ratio increased 6 percentage points to 367% during 4Q12, reflecting consolidated statutory operating earnings of $94 million and the payment of dividends to the non-insurance holding companies of $67 million during the quarter. During 2012, we made dividend payments to the holding company totaling $265 million. Based on our continued expectation to generate strong statutory earnings and excess capital, we anticipate total year dividend payments to the holding company of $250 million to $300 million.
We purchased 21.5 million shares of our common stock during 2012 under our share repurchase program. Such shares were purchased at an aggregate cost of $180.2 million, or $8.37 per share. We redeemed $200 million principal amount of convertible debentures in 2012 for an aggregate cost of $355 million. Such convertible debentures would have otherwise been convertible into 36.6 million shares of our common stock.
During 2012, we also paid common stock dividends of $13.9 million.
Our debt-to-total capital ratio, excluding accumulated other comprehensive income (3) at December 31, 2012 was 20.7 percent, an increase of 240 basis points from December 31, 2011. The increase in such ratio primarily resulted from the completion of our previously announced recapitalization transactions.
As of December 31, 2012, we had approximately 221.5 million shares outstanding and had authority to repurchase up to an additional $350 million of our securities. We currently anticipate repurchasing common stock, warrants or convertible debentures in the range of $250 million to $300 million during 2013. The amount and timing of the securities repurchases (if any) will be based on business and market conditions and other factors. As part of our securities repurchase program, we announced today in a separate press release the commencement of a cash tender offer to purchase our outstanding 7.0% convertible senior debentures due 2016.
Conference Call
The Company will host a conference call to discuss results on February 12, 2013 at 8:30 a.m. Eastern Standard 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
CNO is a holding company. Our insurance subsidiaries - principally Bankers Life and Casualty Company, Washington National Insurance Company and Colonial Penn Life Insurance Company - serve 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 (6)
February 11, 2013
CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Dollars in millions)

								
	2012	 	2011	
ASSETS	 	 	 	
Investments:	 	 	 	
Fixed maturities, available for sale, at fair value (amortized cost:  2012 - $21,626.8; 2011 - $21,779.1)	$	24,614.1		 	$	23,516.0		
Equity securities at fair value (cost: 2012 - $167.1; 2011 - $177.0)	171.4		 	175.1		
Mortgage loans	1,573.2		 	1,602.8		
Policy loans	272.0		 	279.7		
Trading securities	266.2		 	91.6		
Investments held by securitization entities	814.3		 	496.3		
Other invested assets	248.1		 	202.8		
Total investments	27,959.3		 	26,364.3		
Cash and cash equivalents - unrestricted	582.5		 	436.0		
Cash and cash equivalents held by securitization entities	54.2		 	74.4		
Accrued investment income	286.2		 	288.7		
Present value of future profits	626.0		 	697.7		
Deferred acquisition costs	629.7		 	797.1		
Reinsurance receivables	2,927.7		 	3,091.1		
Income tax assets, net	716.9		 	865.4		
Assets held in separate accounts	14.9		 	15.0		
Other assets	334.0		 	292.2		
Total assets	$	34,131.4		 	$	32,921.9		
LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 	
Liabilities:	 		 	 		
Liabilities for insurance products:	 		 	 		
Interest-sensitive products	$	12,893.2		 	$	13,165.5		
Traditional products	11,196.3		 	10,482.7		
Claims payable and other policyholder funds	985.1		 	1,034.3		
Liabilities related to separate accounts	14.9		 	15.0		
Other liabilities	570.6		 	556.3		
Investment borrowings	1,650.8		 	1,676.5		
Borrowings related to variable interest entities	767.0		 	519.9		
Notes payable – direct corporate obligations	1,004.2		 	857.9		
Total liabilities	29,082.1		 	28,308.1		
Commitments and Contingencies	 	 	 	
Shareholders' equity:	 		 	 		
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding:  2012 – 221,502,371; 2011 – 241,304,503)	2.2		 	2.4		
Additional paid-in capital	4,174.7		 	4,361.9		
Accumulated other comprehensive income	1,197.4		 	781.6		
Accumulated deficit	(325.0	)	 	(532.1	)	
Total shareholders' equity	5,049.3		 	4,613.8		
Total liabilities and shareholders' equity	$	34,131.4		 	$	32,921.9		
-more-

CNO Financial (7)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in millions, except per-share data)
(unaudited)

																
 	Three months ended	 	Year ended	
 	December 31,	 	December 31,	
 	2012	 	2011	 	2012	 	2011	
Revenues:	 	 	 	 	 	 	 	
Insurance policy income	$	684.1		 	$	670.2		 	$	2,755.4		 	$	2,690.5		
Net investment income:	 	 	 	 	 	 	 	
General account assets	352.8		 	344.2		 	1,398.5		 	1,360.7		
Policyholder and reinsurer accounts and other special-purpose portfolios	.5		 	7.8		 	87.9		 	(6.6	)	
Realized investment gains:	 	 	 	 	 	 	 	
Net realized investment gains, excluding impairment losses	20.5		 	31.5		 	118.9		 	96.4		
Other-than-temporary impairment losses:	 	 	 	 	 	 	 	
Total other-than-temporary impairment losses	(3.3	)	 	(13.6	)	 	(37.8	)	 	(39.9	)	
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income	—		 	5.3		 	—		 	5.3		
Net impairment losses recognized	(3.3	)	 	(8.3	)	 	(37.8	)	 	(34.6	)	
Total realized gains	17.2		 	23.2		 	81.1		 	61.8		
Fee revenue and other income	6.2		 	5.7		 	19.8		 	18.2		
Total revenues	1,060.8		 	1,051.1		 	4,342.7		 	4,124.6		
Benefits and expenses:	 	 	 	 	 	 	 	
Insurance policy benefits	639.5		 	670.4		 	2,763.9		 	2,699.0		
Interest expense	27.9		 	28.1		 	114.6		 	114.1		
Amortization	73.2		 	73.3		 	289.0		 	297.4		
Loss on extinguishment of debt	1.0		 	.3		 	200.2		 	3.4		
Other operating costs and expenses	201.5		 	176.7		 	819.3		 	704.5		
Total benefits and expenses	943.1		 	948.8		 	4,187.0		 	3,818.4		
Income before income taxes	117.7		 	102.3		 	155.7		 	306.2		
Income tax expense:	 	 	 	 	 	 	 	
Tax expense on period income	45.0		 	37.9		 	106.2		 	113.5		
Decrease in valuation allowance for deferred tax assets	(28.5	)	 	—		 	(171.5	)	 	(143.0	)	
Net income	$	101.2		 	$	64.4		 	$	221.0		 	$	335.7		
Earnings per common share:	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	
Weighted average shares outstanding	225,074,000		 	242,789,000		 	233,685,000		 	247,952,000		
Net income	$	.45		 	$	.27		 	$	.95		 	$	1.35		
Diluted:	 	 	 	 	 	 	 	
Weighted average shares outstanding	246,761,000		 	298,071,000		 	281,427,000		 	304,081,000		
Net income	$	.41		 	$	.23		 	$	.83		 	$	1.15		

-more-

CNO Financial (8)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
EBIT FROM BUSINESS SEGMENTS
SUMMARIZED BY IN-FORCE AND NEW BUSINESS (6)
(Dollars in millions)

	
																
 	Three months ended	 	Year ended	
EBIT (4) from In-force and New Business	December 31,	 	December 31,	
 	2012	 	2011	 	2012	 	2011	
Bankers Life segment:	 	 	 	 	 	 	 	
In-Force Business	$	107.5		 	102.7		 	$	417.3		 	$	399.6		
New Business	(33.8	)	 	(25.5	)	 	(116.4	)	 	(108.7	)	
Total	$	73.7		 	$	77.2		 	$	300.9		 	$	290.9		
 	 	 	 	 	 	 	 	
Washington National segment:	 	 	 	 	 	 	 	
In-Force Business	$	36.6		 	$	32.1		 	$	134.5		 	$	106.6		
New Business	(2.0	)	 	(3.3	)	 	(7.4	)	 	(10.5	)	
Total	$	34.6		 	$	28.8		 	$	127.1		 	$	96.1		
 	 	 	 	 	 	 	 	
Colonial Penn segment:	 	 	 	 	 	 	 	
In-Force Business	$	11.1		 	$	9.8		 	$	40.6		 	$	39.5		
New Business	(7.9	)	 	(8.0	)	 	(49.2	)	 	(44.2	)	
Total	$	3.2		 	$	1.8		 	$	(8.6	)	 	$	(4.7	)	
 	 	 	 	 	 	 	 	
Other CNO Business segment:	 	 	 	 	 	 	 	
In-Force Business	$	5.2		 	$	—		 	$	(48.8	)	 	$	15.3		
New Business	—		 	—		 	—		 	—		
Total	$	5.2		 	$	—		 	$	(48.8	)	 	$	15.3		
 	 	 	 	 	 	 	 	
Total Business segments:	 	 	 	 	 	 	 	
In-Force Business	$	160.4		 	$	144.6		 	$	543.6		 	$	561.0		
New Business	(43.7	)	 	(36.8	)	 	(173.0	)	 	(163.4	)	
Total EBIT from business segments	$	116.7		 	$	107.8		 	$	370.6		 	$	397.6		

-more-

CNO Financial (9)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
SEGMENT OPERATING RESULTS
(Dollars in millions, except per-share data)

	
								
 	Year ended	
 	December 31,	
 	2012	 	2011	
EBIT (4):	 	 	 	
Bankers Life	$	300.9		 	$	290.9		
Washington National	127.1		 	96.1		
Colonial Penn	(8.6	)	 	(4.7	)	
Other CNO Business	(48.8	)	 	15.3		
EBIT from business segments	370.6		 	397.6		
Corporate Operations, excluding corporate interest expense	(20.3	)	 	(47.7	)	
EBIT	350.3		 	349.9		
Corporate interest expense	(66.2	)	 	(76.3	)	
Operating earnings before tax	284.1		 	273.6		
Tax expense on operating income	103.7		 	102.1		
Net operating income (1)	180.4		 	171.5		
Net realized investment gains (net of related amortization and taxes)	48.4		 	36.7		
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	(1.8	)	 	(13.3	)	
Loss on extinguishment of debt (net of income taxes)	(177.5	)	 	(2.2	)	
Net income before valuation allowance for deferred tax assets	49.5		 	192.7		
Decrease in valuation allowance for deferred tax assets	171.5		 	143.0		
Net income	$	221.0		 	$	335.7		
Per diluted share:	 	 	 	
Net operating income	$	.69		 	$	.61		
Net realized investment gains (net of related amortization and taxes)	.17		 	.12		
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	(.01	)	 	(.04	)	
Loss on extinguishment of debt (net of income taxes)	(.63	)	 	(.01	)	
Decrease in valuation allowance for deferred tax assets	.61		 	.47		
Net income	$	.83		 	$	1.15		
-more-

CNO Financial (10)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
NET OPERATING INCOME EXCLUDING SIGNIFICANT ITEMS*
(Dollars in millions)

												
 	Three months ended	
 	December 31, 2011	
 	Actual results	 	Significant items	 	Excluding significant items	
Net Operating Income (1):	 	 	 	 	 	
Bankers Life	$	77.2		 	$	(11.0	)	 	$	66.2		
Washington National	28.8		 	4.5		 	33.3		
Colonial Penn	1.8		 	—		 	1.8		
Other CNO Business	—		 	—		 	—		
EBIT from business segments	107.8		 	(6.5	)	 	101.3		
Corporate Operations, excluding corporate interest expense	(8.4	)	 	2.6		 	(5.8	)	
EBIT (4)	99.4		 	(3.9	)	 	95.5		
Corporate interest expense	(17.7	)	 	—		 	(17.7	)	
Operating earnings before tax	81.7		 	(3.9	)	 	77.8		
Tax expense on operating income	30.7		 	(1.4	)	 	29.3		
Net operating income	$	51.0		 	$	(2.5	)	 	$	48.5		
 	 	 	 	 	 	
Net operating income per diluted share	$	.18		 	$	—		 	$	.18		

		
*	This table summarizes the financial impact of significant items (as described in the segment results section of this press release) on our 4Q11 net operating income.	

-more-

CNO Financial (11)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
COLLECTED PREMIUMS
(Dollars in millions)

								
 	Three months ended	
 	December 31,	
 	2012	 	2011	
Bankers Life segment :	 	 	 	
Medicare supplement and other supplemental health	$	200.9		 	$	199.6		
Life	87.8		 	66.1		
Long-term care	134.9		 	136.3		
Annuity	183.1		 	240.1		
Total	606.7		 	642.1		
Washington National segment :	 	 	 	
Supplemental health	116.9		 	110.0		
Medicare supplement and other supplemental health	29.0		 	32.6		
Life	3.4		 	3.7		
Total	149.3		 	146.3		
Colonial Penn segment:	 	 	 	
Life	53.8		 	49.3		
Supplemental health	1.2		 	1.3		
Total	55.0		 	50.6		
Other CNO Business segment :	 	 	 	
Life	38.5		 	40.1		
Annuity	.8		 	3.0		
Other health	6.3		 	6.3		
Total	45.6		 	49.4		
Total collected premiums	$	856.6		 	$	888.4		

NEW ANNUALIZED PREMIUMS (2)
(Dollars in millions)

								
 	Three months ended	
 	December 31,	
 	2012	 	2011	
Bankers Life segment :	 	 	 	
Medicare supplement and other supplemental health	$	31.0		 	$	31.5		
Life	21.4		 	17.0		
Long-term care	6.0		 	7.0		
Annuity	10.9		 	14.3		
Total	69.3		 	69.8		
Washington National segment :	 	 	 	
Supplemental health	21.2		 	18.9		
Medicare supplement and other supplemental health	.1		 	.3		
Life	1.5		 	1.8		
Annuity	—		 	.2		
Total	22.8		 	21.2		
Colonial Penn segment:	 	 	 	
Life	13.6		 	12.3		
Total	13.6		 	12.3		
Total new annualized premiums	$	105.7		 	$	103.3		
-more-

CNO Financial (12)
February 11, 2013

CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
BENEFIT RATIOS ON MAJOR HEALTH LINES OF BUSINESS

						
 	Three months ended	
 	December 31,	
 	2012	 	2011	
Bankers Life segment :	 	 	 	
Medicare Supplement:	 	 	 	
Earned premium	$185 million		 	$179 million		
Benefit ratio (7)	71.4	%	 	70.5	%	
PDP:	 	 	 	
Earned premium	$10 million		 	$11 million		
Benefit ratio (7)	64.8	%	 	72.6	%	
Long-Term Care:	 	 	 	
Earned premium	$137 million		 	$141 million		
Benefit ratio (7)	116.7	%	 	112.1	%	
Interest-adjusted benefit ratio (a non-GAAP measure) (8)	69.0	%	 	67.3	%	
Washington National segment :	 	 	 	
Medicare Supplement:	 	 	 	
Earned premium	$28 million		 	$33 million		
Benefit ratio (7)	64.7	%	 	66.7	%	
Supplemental health:	 	 	 	
Earned premium	$115 million		 	$110 million		
Benefit ratio (7)	72.9	%	 	76.3	%	
Interest-adjusted benefit ratio (a non-GAAP measure) (8)	46.6	%	 	48.3	%	

-more-

CNO Financial (13)
February 11, 2013
NOTES
		
(1)	Management believes that an analysis of Net income applicable to common stock before: (i) loss on extinguishment of debt, net of income taxes; (ii) net realized investment gains or losses, net of related amortization and income taxes; (iii) 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 income taxes; and (iv) changes to our 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. Prior to June 30, 2011, certain of our trading securities were held to offset the income statement volatility caused by the effect of interest rate fluctuations on the value of embedded derivatives related to our fixed index annuity products. During 2Q2011, these securities were sold. A reconciliation of Net operating income to Net income applicable to common stock is provided in the tables on pages 2 and 9. 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 and Private-Fee-For-Service sales are not comparable to other sales and are therefore excluded in all periods.	
		
(3)	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 16.6% and 15.7% at December 31, 2012 and 2011, respectively.	
		
(4)	Management believes that an analysis of earnings before 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, corporate interest expense, loss on extinguishment 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 9.	
		
(5)	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 $22.80 and $19.12 at December 31, 2012 and 2011, respectively.	
		
(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)	The benefit ratio is calculated by dividing the related product's insurance policy benefits by insurance policy income.	
		
(8)	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 .	
-more-

CNO Financial (14)
February 11, 2013

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" 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, including our position that our 7.0% convertible senior debentures due 2016 will not be treated as stock for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, and will not trigger an ownership change, will not be successfully challenged by the Internal Revenue Service; (xii) changes in accounting principles and the interpretation thereof (including changes in principles related to accounting for deferred acquisition costs); (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 eventual 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; and (xxiii) 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.

This press release is for information purposes only and shall not constitute an offer to purchase, a solicitation of an offer to purchase, or a solicitation of an offer to sell securities. The tender offer for our convertible debentures may be made only pursuant to the terms and conditions of the Offer to Purchase, the Letter of Transmittal and the other related tender offer materials. An issuer tender offer statement on Schedule TO, including the Offer to Purchase and the Letter of Transmittal, describing the tender offer will be filed with the Securities and Exchange Commission. Holders of the convertible debentures are encouraged to read the Schedule TO and its exhibits carefully before making any decision with respect to the tender offer because it contains important information. The Schedule TO, the Offer to Purchase, the Letter of Transmittal and other related tender offer materials will be available free of charge at the website of the Securities and Exchange Commission at www.sec.gov . In addition, CNO will provide copies of the Schedule TO and related Offer materials upon request free of charge to holders of the convertible debentures.

- # # # # -

Exhibit 99.2

	

 	 	 	 	 	 	
Quarterly Financial Supplement -	 	 	 	 	 	
4Q2012	 	 	 	 	 	

 	 	 	 	 	 	
February 11, 2013	 	 	 	 	 	

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 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	
     Other CNO Business	 	 	 	16-18	
     Corporate Operations	 	 	 	19	
Premiums collected on insurance products:	 	 	 	 	
     Bankers Life	 	 	 	20	
     Washington National	 	 	 	21	
     Colonial Penn	 	 	 	22	
     Other CNO Business	 	 	 	23	
New annualized premiums	 	 	 	24	
Statutory information	 	 	 	25	
Notes	 	 	 	26	

Page 2

	
																											
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Consolidated balance sheet (in millions)	 	 	Mar-11	Jun-11	Sep-11	Dec-11	Mar-12	Jun-12	Sep-12	Dec-12	
 	 	 	 	 	 	 	 	 	 	 	
Assets	 	 	 	 	 	 	 	 	 	 	
Investments:	 	 	 	 	 	 	 	 	 	 	
  Fixed maturities, available for sale, at fair value	 	 	$	20,852.2		$	21,622.9		$	23,016.7		$	23,516.0		$	23,777.7		$	24,276.6		$	24,742.3		$	24,614.1		
  Equity securities at fair value	 	 	105.4		129.6		164.3		175.1		176.5		187.3		180.0		171.4		
  Mortgage loans	 	 	1,751.3		1,752.8		1,648.2		1,602.8		1,546.7		1,550.9		1,597.2		1,573.2		
  Policy loans	 	 	281.6		279.5		279.6		279.7		277.8		274.7		274.1		272.0		
  Trading securities	 	 	403.1		83.5		81.8		91.6		122.3		114.8		199.4		266.2		
  Investments held by variable interest entities	 	 	401.6		414.0		453.5		496.3		564.7		789.3		829.4		814.3		
  Other invested assets	 	 	272.1		252.2		190.9		202.8		270.9		257.1		265.0		248.1		
  Total investments	 	 	24,067.3		24,534.5		25,835.0		26,364.3		26,736.6		27,450.7		28,087.4		27,959.3		
Cash and cash equivalents - unrestricted	 	 	424.6		580.2		461.9		436.0		173.5		190.2		415.3		582.5		
Cash and cash equivalents held by variable interest entities	 	 	27.1		25.3		19.7		74.4		65.8		88.6		48.2		54.2		
Accrued investment income	 	 	336.7		314.3		301.2		288.7		313.6		296.4		317.8		286.2		
Present value of future profits	 	 	970.1		936.5		714.2		697.7		675.4		658.1		642.4		626.0		
Deferred acquisition costs	 	 	989.3		975.5		834.5		797.1		790.4		653.5		623.4		629.7		
Reinsurance receivables	 	 	3,219.0		3,172.5		3,131.3		3,091.1		3,052.7		3,013.8		2,967.7		2,927.7		
Income tax assets, net	 	 	1,090.4		998.4		918.4		865.4		819.9		679.7		699.5		716.9		
Assets held in separate accounts	 	 	18.1		17.4		15.4		15.0		16.0		15.6		15.7		14.9		
Other assets	 	 	413.0		323.6		289.6		292.2		402.3		395.8		338.6		334.0		
Total assets	 	 	$	31,555.6		$	31,878.2		$	32,521.2		$	32,921.9		$	33,046.2		$	33,442.4		$	34,156.0		$	34,131.4		
Liabilities	 	 	 	 	 	 	 	 	 	 	
Liabilities for insurance products:	 	 	 	 	 	 	 	 	 	 	
  Interest-sensitive products	 	 	$	13,161.3		$	13,152.8		$	13,168.2		$	13,165.5		$	13,103.4		$	12,956.3		$	12,930.3		$	12,893.2		
  Traditional products	 	 	10,357.9		10,424.4		10,444.8		10,482.7		10,517.9		10,666.7		11,004.3		11,196.3		
  Claims payable and other policyholder funds	 	 	979.0		978.0		985.5		1,034.3		1,000.8		991.9		977.6		985.1		
  Liabilities related to separate accounts	 	 	18.1		17.4		15.4		15.0		16.0		15.6		15.7		14.9		
Other liabilities	 	 	651.8		712.2		585.2		556.3		721.0		686.0		709.0		570.6		
Investment borrowings	 	 	1,203.8		1,305.3		1,509.1		1,676.5		1,684.9		1,687.9		1,650.9		1,650.8		
Borrowings related to variable interest entities	 	 	354.4		317.3		405.6		519.9		519.9		766.7		766.9		767.0		
Notes payable - direct corporate obligations	 	 	949.8		934.5		871.2		857.9		799.3		778.2		1,035.1		1,004.2		
Total liabilities	 	 	27,676.1		27,841.9		27,985.0		28,308.1		28,363.2		28,549.3		29,089.8		29,082.1		
Shareholders' equity	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	2.5		2.5		2.4		2.4		2.4		2.3		2.3		2.2		
Additional paid-in capital	 	 	4,426.1		4,414.3		4,379.4		4,361.9		4,345.6		4,312.0		4,251.2		4,174.7		
Accumulated deficit	 	 	(822.4	)	(776.0	)	(596.5	)	(532.1	)	(473.0	)	(412.0	)	(421.7	)	(325.0	)	
Total shareholders' equity before accumulated other comprehensive income	 	 	3,606.2		3,640.8		3,785.3		3,832.2		3,875.0		3,902.3		3,831.8		3,851.9		
Accumulated other comprehensive income	 	 	273.3		395.5		750.9		781.6		808.0		990.8		1,234.4		1,197.4		
Total shareholders' equity	 	 	3,879.5		4,036.3		4,536.2		4,613.8		4,683.0		4,893.1		5,066.2		5,049.3		
Total liabilities and shareholders' equity	 	 	$	31,555.6		$	31,878.2		$	32,521.2		$	32,921.9		$	33,046.2		$	33,442.4		$	34,156.0		$	34,131.4		

 	 	 	 	 	 	 	 	 	 	 	
 	 	 	1Q11	2Q11	3Q11	4Q11	1Q12	2Q12	3Q12	4Q12	
 	 	 	 	 	 	 	 	 	 	 	
Book value per share at period-end (1) (2)	 	 	$	14.34		$	14.60		$	15.56		$	15.88		$	16.20		$	16.67		$	16.70		$	17.39		
 	 	 	 	 	 	 	 	 	 	 	
Book value per share assuming conversion of convertible securities (1) (3)	 	 	$	12.62		$	12.79		$	13.60		$	13.87		$	14.05		$	14.41		$	15.63		$	16.21		

Page 3

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Consolidated statement of operations (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	667.2		$	679.6		$	673.5		$	670.2		$	2,690.5		$	686.3		$	694.8		$	690.2		$	684.1		$	2,755.4		
Net investment income (loss):	 	 	 	 	 	 	 	 	 	 	
   General account assets	336.1		342.2		338.2		344.2		1,360.7		345.2		351.1		349.4		352.8		1,398.5		
Policyholder and reinsurer accounts and other special-purpose portfolios	37.4		3.1		(54.9	)	7.8		(6.6	)	65.6		(17.3	)	39.1		0.5		87.9		
Realized investment gains (losses):	 	 	 	 	 	 	 	 	 	 	
Net realized investment gains, excluding impairment losses	18.4		13.0		33.5		31.5		96.4		30.8		35.4		32.2		20.5		118.9		
   Other-than-temporary impairment losses:	 	 	 	 	 	 	 	 	 	 	
      Total other-than-temporary impairment losses	(13.3	)	(10.1	)	(2.9	)	(13.6	)	(39.9	)	(7.9	)	(3.5	)	(23.1	)	(3.3	)	(37.8	)	
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income	—		—		—		5.3		5.3		—		—		—		—		—		
   Net impairment losses recognized	(13.3	)	(10.1	)	(2.9	)	(8.3	)	(34.6	)	(7.9	)	(3.5	)	(23.1	)	(3.3	)	(37.8	)	
Total realized gains	5.1		2.9		30.6		23.2		61.8		22.9		31.9		9.1		17.2		81.1		
Fee revenue and other income	3.4		4.2		4.9		5.7		18.2		3.9		4.5		5.2		6.2		19.8		
Total revenues	1,049.2		1,032.0		992.3		1,051.1		4,124.6		1,123.9		1,065.0		1,093.0		1,060.8		4,342.7		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	683.2		684.4		661.0		670.4		2,699.0		689.0		689.7		745.7		639.5		2,763.9		
Interest expense	29.2		28.9		27.9		28.1		114.1		28.8		28.7		29.2		27.9		114.6		
Amortization	94.9		70.6		58.6		73.3		297.4		86.6		68.3		60.9		73.2		289.0		
Loss on extinguishment of debt	1.4		0.6		1.1		0.3		3.4		0.2		0.5		198.5		1.0		200.2		
Other operating costs and expenses	170.1		175.7		182.0		176.7		704.5		227.0		173.3		217.5		201.5		819.3		
Total benefits and expenses	978.8		960.2		930.6		948.8		3,818.4		1,031.6		960.5		1,251.8		943.1		4,187.0		
 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before income taxes	70.4		71.8		61.7		102.3		306.2		92.3		104.5		(158.8	)	117.7		155.7		
Income tax expense (benefit) on period income	25.0		25.4		25.2		37.9		113.5		33.2		38.8		(10.8	)	45.0		106.2		
Decrease in valuation allowance for deferred tax assets	—		—		(143.0	)	—		(143.0	)	—		—		(143.0	)	(28.5	)	(171.5	)	
Net income (loss)	$	45.4		$	46.4		$	179.5		$	64.4		$	335.7		$	59.1		$	65.7		$	(5.0	)	$	101.2		$	221.0		

Page 4

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Operating results ($ in millions, except per share amounts)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
EBIT (4):	 	 	 	 	 	 	 	 	 	 	
   Bankers Life	$	62.2		$	72.1		$	79.4		$	77.2		$	290.9		$	70.5		$	76.1		$	80.6		$	73.7		$	300.9		
   Washington National	24.3		21.8		21.2		28.8		96.1		24.7		33.9		33.9		34.6		127.1		
   Colonial Penn	(5.7	)	0.5		(1.3	)	1.8		(4.7	)	(9.8	)	0.6		(2.6	)	3.2		(8.6	)	
   Other CNO Business	7.4		5.1		2.8		—		15.3		(2.3	)	1.9		(53.6	)	5.2		(48.8	)	
EBIT from business segments	88.2		99.5		102.1		107.8		397.6		83.1		112.5		58.3		116.7		370.6		
Corporate operations, excluding corporate interest expense	(0.5	)	(11.3	)	(27.5	)	(8.4	)	(47.7	)	(1.8	)	(9.1	)	(6.7	)	(2.7	)	(20.3	)	
EBIT	87.7		88.2		74.6		99.4		349.9		81.3		103.4		51.6		114.0		350.3		
Corporate interest expense	(20.6	)	(19.3	)	(18.7	)	(17.7	)	(76.3	)	(17.5	)	(16.6	)	(16.3	)	(15.8	)	(66.2	)	
Income before loss on extinguishment of debt, net realized investment gains, fair value changes in embedded derivative liabilities and taxes	67.1		68.9		55.9		81.7		273.6		63.8		86.8		35.3		98.2		284.1		
Tax expense on operating income	23.9		24.4		23.1		30.7		102.1		23.2		32.6		9.7		38.2		103.7		
Net operating income (5)	43.2		44.5		32.8		51.0		171.5		40.6		54.2		25.6		60.0		180.4		
Net realized investment gains (net of related amortization and taxes)	3.1		2.3		17.3		14.0		36.7		14.1		18.7		4.8		10.8		48.4		
Fair value changes in embedded derivative liabilities (net of related amortization and taxes)	—		—		(12.9	)	(0.4	)	(13.3	)	4.5		(6.9	)	(2.0	)	2.6		(1.8	)	
Loss on extinguishment of debt, net of income taxes	(0.9	)	(0.4	)	(0.7	)	(0.2	)	(2.2	)	(0.1	)	(0.3	)	(176.4	)	(0.7	)	(177.5	)	
Net income (loss) before valuation allowance for deferred tax assets	45.4		46.4		36.5		64.4		192.7		59.1		65.7		(148.0	)	72.7		49.5		
Decrease in valuation allowance for deferred tax assets	—		—		143.0		—		143.0		—		—		143.0		28.5		171.5		
Net income (loss)	$	45.4		$	46.4		$	179.5		$	64.4		$	335.7		$	59.1		$	65.7		$	(5.0	)	$	101.2		$	221.0		
 	 	 	 	 	 	 	 	 	 	 	
Per diluted share:	 	 	 	 	 	 	 	 	 	 	
Net operating income	$	.15		$	.15		$	.12		$	.18		$	.61		$	.15		$	.20		$	.11		$	.25		$	.69		
Net realized investment gains, net of related amortization and taxes	.01		.01		.06		.05		.12		.05		.06		.02		.04		.17		
Fair value changes in embedded derivative liabilities, net of related amortization and taxes	—		—		(.04	)	—		(.04	)	.01		(.02	)	(.01	)	.01		(.01	)	
Loss on extinguishment of debt, net of income taxes	—		—		—		—		(.01	)	—		—		(.76	)	—		(.63	)	
Decrease in valuation allowance for deferred tax assets	—		—		.47		—		.47		—		—		.62		.11		.61		
Diluted earnings (loss) per share	$	.16		$	.16		$	.61		$	.23		$	1.15		$	.21		$	.24		$	(.02	)	$	.41		$	.83		

Page 5

	
																					
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Computation of weighted average shares outstanding	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12 (a)	4Q12	2012	
(000s)	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	 	 	 	 	
Shares outstanding, beginning of period	251,084.2		251,404.9		249,415.2		243,247.3		251,084.2		241,304.5		239,219.4		234,026.4		229,506.7		241,304.5		
Weighted average shares issued during the period:	 	 	 	 	 	 	 	 	 	 	
Shares repurchased	—		(590.3	)	(2,511.6	)	(720.5	)	(3,700.7	)	(470.7	)	(2,078.2	)	(2,689.9	)	(4,571.9	)	(8,307.8	)	
Stock options exercised and vesting of restricted stock	52.6		118.5		61.8		268.6		694.4		83.5		148.2		144.0		154.2		804.2		
Shares withheld for the payment of taxes on the vesting of restricted stock	(16.3	)	—		(0.3	)	(6.2	)	(125.9	)	(22.2	)	(0.5	)	—		(14.8	)	(116.2	)	
Weighted average basic shares outstanding during the period	251,120.5		250,933.1		246,965.1		242,789.2		247,952.0		240,895.1		237,288.9		231,480.5		225,074.2		233,684.7		
Basic shares outstanding, end of period	251,404.9		249,415.2		243,247.3		241,304.5		241,304.5		239,219.4		234,026.4		229,506.7		221,502.4		221,502.4		
Diluted	 	 	 	 	 	 	 	 	 	 	
Weighted average basic shares outstanding	251,120.5		250,933.1		246,965.1		242,789.2		247,952.0		240,895.1		237,288.9		231,480.5		225,074.2		233,684.7		
Common stock equivalent shares related to:	 	 	 	 	 	 	 	 	 	 	
Convertible debentures	53,366.9		53,366.9		53,366.9		53,366.9		53,366.9		53,366.9		53,377.5		—		17,038.9		44,037.4		
Stock options, restricted stock and performance units	2,748.3		3,035.8		2,352.9		1,914.6		2,512.9		2,582.2		2,366.7		—		3,132.5		2,762.4		
Warrants	262.4		712.4		22.9		—		249.4		498.6		441.5		—		1,515.1		942.9		
Weighted average diluted shares outstanding during the period	307,498.1		308,048.2		302,707.8		298,070.7		304,081.2		297,342.8		293,474.6		231,480.5		246,760.7		281,427.4		
Diluted shares outstanding, end of period	307,782.4		306,530.3		298,990.0		296,586.0		296,586.0		295,667.1		290,212.1		250,819.6		243,188.8		243,188.8		

(a) Equivalent common shares of 56,651.1 were not included in the diluted weighted average shares outstanding, due to the net loss recognized in 3Q12.

Page 6

	
																															
EBIT from Business Segments Summarized by In-Force and New Business (6)	 	 	 	 	 	 	 	 	 	 	
(in millions)	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
EBIT from In-force Business	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	584.0		$	594.3		$	585.3		$	583.6		$	2,347.2		$	597.0		$	601.7		$	594.4		$	584.0		$	2,377.1		
Net investment income (loss)	349.8		331.7		283.8		338.7		1,304.0		375.9		322.3		357.4		335.7		1,391.3		
Fee revenue and other income	1.9		2.4		2.7		3.1		10.1		1.9		2.4		3.3		3.4		11.0		
Total revenues	935.7		928.4		871.8		925.4		3,661.3		974.8		926.4		955.1		923.1		3,779.4		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	624.8		626.3		569.4		609.1		2,429.6		635.3		611.7		671.3		580.5		2,498.8		
Interest expense	6.1		6.1		6.7		6.9		25.8		7.2		7.2		7.0		6.6		28.0		
Amortization	85.3		61.9		55.5		63.4		266.1		73.1		64.6		54.1		62.7		254.5		
Other operating costs and expenses	90.1		95.5		91.8		101.4		378.8		130.3		93.0		118.3		112.9		454.5		
Total benefits and expenses	806.3		789.8		723.4		780.8		3,100.3		845.9		776.5		850.7		762.7		3,235.8		
EBIT from In-Force Business	$	129.4		$	138.6		$	148.4		$	144.6		$	561.0		$	128.9		$	149.9		$	104.4		$	160.4		$	543.6		

EBIT from New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	83.2		$	85.3		$	88.2		$	86.6		$	343.3		$	89.3		$	93.1		$	95.8		$	100.1		$	378.3		
Net investment income (loss)	11.1		9.1		6.2		10.6		37.0		11.7		4.3		11.7		5.0		32.7		
Fee revenue and other income	.9		1.3		1.5		1.9		5.6		1.4		1.4		1.2		2.0		6.0		
Total revenues	95.2		95.7		95.9		99.1		385.9		102.4		98.8		108.7		107.1		417.0		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	58.4		58.1		57.7		60.8		235.0		65.3		60.3		69.8		65.3		260.7		
Interest expense	—		—		—		—		—		—		—		—		—		—		
Amortization	9.2		9.3		13.3		8.1		39.9		7.7		7.7		6.7		7.5		29.6		
Other operating costs and expenses	68.8		67.4		71.2		67.0		274.4		75.2		68.2		78.3		78.0		299.7		
Total benefits and expenses	136.4		134.8		142.2		135.9		549.3		148.2		136.2		154.8		150.8		590.0		
EBIT from New Business	$	(41.2	)	$	(39.1	)	$	(46.3	)	$	(36.8	)	$	(163.4	)	$	(45.8	)	$	(37.4	)	$	(46.1	)	$	(43.7	)	$	(173.0	)	

EBIT from In-Force and New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	667.2		$	679.6		$	673.5		$	670.2		$	2,690.5		$	686.3		$	694.8		$	690.2		$	684.1		$	2,755.4		
Net investment income (loss)	360.9		340.8		290.0		349.3		1,341.0		387.6		326.6		369.1		340.7		1,424.0		
Fee revenue and other income	2.8		3.7		4.2		5.0		15.7		3.3		3.8		4.5		5.4		17.0		
Total revenues	1,030.9		1,024.1		967.7		1,024.5		4,047.2		1,077.2		1,025.2		1,063.8		1,030.2		4,196.4		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	683.2		684.4		627.1		669.9		2,664.6		700.6		672.0		741.1		645.8		2,759.5		
Interest expense	6.1		6.1		6.7		6.9		25.8		7.2		7.2		7.0		6.6		28.0		
Amortization	94.5		71.2		68.8		71.5		306.0		80.8		72.3		60.8		70.2		284.1		
Other operating costs and expenses	158.9		162.9		163.0		168.4		653.2		205.5		161.2		196.6		190.9		754.2		
Total benefits and expenses	942.7		924.6		865.6		916.7		3,649.6		994.1		912.7		1,005.5		913.5		3,825.8		
EBIT from In-Force and New Business	$	88.2		$	99.5		$	102.1		$	107.8		$	397.6		$	83.1		$	112.5		$	58.3		$	116.7		$	370.6		

Page 7

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Bankers Life	 	 	 	 	 	 	 	 	 	 	
Analysis of income before taxes (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	400.0		$	409.6		$	404.6		$	398.2		$	1,612.4		$	406.5		$	419.0		$	416.1		$	415.8		$	1,657.4		
Net investment income (loss):	 	 	 	 	 	 	 	 	 	 	
   General account invested assets	191.3		196.5		194.3		198.2		780.3		200.3		204.9		205.4		207.0		817.6		
   Fixed index products	18.3		0.4		(36.3	)	3.6		(14.0	)	34.6		(19.3	)	16.2		(10.2	)	21.3		
Net realized investment gains (losses)	6.6		(1.8	)	26.5		16.6		47.9		10.6		17.9		14.1		10.4		53.0		
Fee revenue and other income	2.3		3.3		3.6		4.6		13.8		2.9		3.3		4.0		5.0		15.2		
   Total revenues	618.5		608.0		592.7		621.2		2,440.4		654.9		625.8		655.8		628.0		2,564.5		
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	337.6		351.3		333.6		339.2		1,361.7		335.2		366.3		362.4		354.0		1,417.9		
Insurance policy benefits - fair value changes in embedded derivative liabilities	—		—		30.7		0.5		31.2		(11.0	)	16.7		4.6		(5.8	)	4.5		
Amounts added to policyholder account balances:	 	 	 	 	 	 	 	 	 	 	
Annuity products and interest-sensitive life products other than fixed index products	40.8		40.5		40.0		39.9		161.2		38.5		36.6		36.9		35.9		147.9		
Fixed index products	26.4		17.1		(13.0	)	16.7		47.2		47.2		(6.2	)	35.3		0.8		77.1		
Amortization related to operations	68.5		46.9		44.1		46.8		206.3		56.9		50.5		35.6		44.6		187.6		
Amortization related to net realized investment gains (losses)	0.8		(0.3	)	3.0		1.7		5.2		0.9		1.7		1.4		0.3		4.3		
Amortization related to fair value changes in embedded derivative liabilities	—		—		(11.5	)	0.1		(11.4	)	4.2		(6.3	)	(1.6	)	2.0		(1.7	)	
Interest expense on investment borrowings	1.2		1.1		1.2		1.3		4.8		1.4		1.4		1.3		1.2		5.3		
Other operating costs and expenses	75.2		80.8		80.9		83.5		320.4		94.6		83.2		89.6		107.4		374.8		
   Total benefits and expenses	550.5		537.4		509.0		529.7		2,126.6		567.9		543.9		565.5		540.4		2,217.7		
   Income before income taxes	$	68.0		$	70.6		$	83.7		$	91.5		$	313.8		$	87.0		$	81.9		$	90.3		$	87.6		$	346.8		

 	 	 	 	 	 	 	 	 	 	 	
Health underwriting margins (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement:	 	 	 	 	 	 	 	 	 	 	
   Earned premium	$	181.0		$	179.5		$	179.2		$	178.6		$	718.3		$	182.7		$	184.1		$	185.1		$	185.5		$	737.4		
   Benefit ratio	67.2	%	69.8	%	68.4	%	70.5	%	69.0	%	64.5	%	72.2	%	67.8	%	71.4	%	69.0	%	
Underwriting margin (earned premium less policy benefits)	$	59.3		$	54.2		$	56.7		$	52.7		$	222.9		$	64.9		$	51.2		$	59.6		$	53.2		$	228.9		
 	 	 	 	 	 	 	 	 	 	 	
PDP:	 	 	 	 	 	 	 	 	 	 	
   Earned premium	$	14.4		$	16.7		$	12.9		$	10.5		$	54.5		$	10.8		$	17.7		$	11.4		$	10.0		$	49.9		
   Benefit ratio	89.5	%	88.6	%	76.1	%	72.6	%	82.8	%	85.9	%	64.2	%	74.8	%	64.8	%	71.4	%	
Underwriting margin (earned premium less policy benefits)	$	1.5		$	1.9		$	3.1		$	2.9		$	9.4		$	1.6		$	6.3		$	2.9		$	3.5		$	14.3		
 	 	 	 	 	 	 	 	 	 	 	
Long-term care:	 	 	 	 	 	 	 	 	 	 	
   Earned premium	$	144.4		$	143.4		$	142.0		$	141.1		$	570.9		$	140.6		$	139.7		$	138.5		$	136.7		$	555.5		
   Benefit ratio before interest income on reserves	113.4	%	115.0	%	109.7	%	112.1	%	112.6	%	110.9	%	121.4	%	121.4	%	116.7	%	117.6	%	
   Interest-adjusted benefit ratio	70.8	%	71.6	%	65.5	%	67.3	%	68.8	%	65.5	%	75.4	%	74.7	%	69.0	%	71.2	%	
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	42.2		$	40.7		$	49.1		$	46.1		$	178.1		$	48.5		$	34.4		$	35.0		$	42.3		$	160.2		

Page 8

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Bankers Life	 	 	 	 	 	 	 	 	 	 	
Average liabilities for insurance products (in millions) (continued)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Annuities:	 	 	 	 	 	 	 	 	 	 	
   Mortality based	$	245.9		$	243.1		$	240.0		$	236.7		$	241.4		$	233.8		$	231.7		$	229.4		$	231.8		$	231.7		
   Fixed index	2,147.7		2,268.3		2,412.9		2,573.0		2,350.5		2,707.4		2,798.2		2,872.1		2,948.3		2,831.5		
   Deposit based	4,832.4		4,793.2		4,750.5		4,699.6		4,768.9		4,644.9		4,577.8		4,515.4		4,454.3		4,548.1		
Medicare supplement and other supplemental health	4,489.6		4,529.9		4,564.0		4,606.8		4,547.6		4,634.5		4,653.2		4,710.0		4,994.9		4,748.1		
Life:	 	 	 	 	 	 	 	 	 	 	
   Interest sensitive	420.5		425.2		431.8		437.1		428.6		441.4		444.7		450.8		458.7		448.9		
   Non-interest sensitive	397.8		416.8		437.7		460.5		428.2		483.0		506.2		532.9		561.3		520.9		
Total average liabilities for insurance products, net of reinsurance ceded	$	12,533.9		$	12,676.5		$	12,836.9		$	13,013.7		$	12,765.2		$	13,145.0		$	13,211.8		$	13,310.6		$	13,649.3		$	13,329.2		

 	 	 	 	 	 	 	 	 	 	 	
Present value of future profits (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	467.2		$	442.7		$	422.0		$	208.9		$	467.2		$	201.8		$	189.8		$	181.8		$	175.1		$	201.8		
Amortization related to operations	(24.6	)	(16.9	)	(14.3	)	(14.2	)	(70.0	)	(18.7	)	(13.6	)	(7.0	)	(11.3	)	(50.6	)	
Amortization related to net realized investment (gains) losses	(0.1	)	0.1		(0.2	)	(0.2	)	(0.4	)	(0.1	)	—		(0.1	)	—		(0.2	)	
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	0.2		(3.9	)	(198.6	)	7.3		(195.0	)	6.8		5.6		0.4		5.0		17.8		
Balance, end of period	$	442.7		$	422.0		$	208.9		$	201.8		$	201.8		$	189.8		$	181.8		$	175.1		$	168.8		$	168.8		

 	 	 	 	 	 	 	 	 	 	 	
Deferred acquisition costs (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	662.3		$	657.7		$	648.2		$	527.1		$	662.3		$	491.0		$	486.5		$	352.2		$	330.1		$	491.0		
Deferred acquisition expenses	40.4		40.2		45.8		39.9		166.3		34.3		34.4		35.2		35.1		139.0		
Amortization related to operations	(43.9	)	(30.0	)	(29.8	)	(32.6	)	(136.3	)	(38.2	)	(36.9	)	(28.6	)	(33.3	)	(137.0	)	
Amortization related to net realized investment (gains) losses	(0.7	)	0.2		(2.8	)	(1.5	)	(4.8	)	(0.8	)	(1.7	)	(1.3	)	(0.3	)	(4.1	)	
Amortization related to fair value changes in embedded derivative liabilities	—		—		11.5		(0.1	)	11.4		(4.2	)	6.3		1.6		(2.0	)	1.7		
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	(0.4	)	(19.9	)	(145.8	)	(41.8	)	(207.9	)	4.4		(136.4	)	(29.0	)	3.2		(157.8	)	
Balance, end of period	$	657.7		$	648.2		$	527.1		$	491.0		$	491.0		$	486.5		$	352.2		$	330.1		$	332.8		$	332.8		

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	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	338.8		$	346.3		$	339.0		$	334.8		$	1,358.9		$	341.8		$	351.6		$	345.7		$	342.2		$	1,381.3		
Net investment income (loss)	198.5		187.8		151.8		191.2		729.3		223.2		181.3		209.9		191.8		806.2		
Fee revenue and other income	1.4		2.0		2.1		2.7		8.2		1.5		1.9		2.8		3.0		9.2		
Total revenues	538.7		536.1		492.9		528.7		2,096.4		566.5		534.8		558.4		537.0		2,196.7		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	356.9		361.3		313.7		346.1		1,378.0		367.4		348.7		377.0		338.1		1,431.2		
Interest expense	1.2		1.1		1.2		1.3		4.8		1.4		1.4		1.3		1.2		5.3		
Amortization	60.1		38.5		31.6		39.7		169.9		50.0		43.7		29.9		38.2		161.8		
Other operating costs and expenses	33.8		36.6		34.8		38.9		144.1		50.6		38.4		40.1		52.0		181.1		
Total benefits and expenses	452.0		437.5		381.3		426.0		1,696.8		469.4		432.2		448.3		429.5		1,779.4		
EBIT from In-Force Business	$	86.7		$	98.6		$	111.6		$	102.7		$	399.6		$	97.1		$	102.6		$	110.1		$	107.5		$	417.3		

EBIT from New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	61.2		$	63.3		$	65.6		$	63.4		$	253.5		$	64.7		$	67.4		$	70.4		$	73.6		$	276.1		
Net investment income (loss)	11.1		9.1		6.2		10.6		37.0		11.7		4.3		11.7		5.0		32.7		
Fee revenue and other income	0.9		1.3		1.5		1.9		5.6		1.4		1.4		1.2		2.0		6.0		
Total revenues	73.2		73.7		73.3		75.9		296.1		77.8		73.1		83.3		80.6		314.8		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	47.9		47.6		46.9		49.7		192.1		53.5		48.0		57.6		52.6		211.7		
Interest expense	—		—		—		—		—		—		—		—		—		—		
Amortization	8.4		8.4		12.5		7.1		36.4		6.9		6.8		5.7		6.4		25.8		
Other operating costs and expenses	41.4		44.2		46.1		44.6		176.3		44.0		44.8		49.5		55.4		193.7		
Total benefits and expenses	97.7		100.2		105.5		101.4		404.8		104.4		99.6		112.8		114.4		431.2		
EBIT from New Business	$	(24.5	)	$	(26.5	)	$	(32.2	)	$	(25.5	)	$	(108.7	)	$	(26.6	)	$	(26.5	)	$	(29.5	)	$	(33.8	)	$	(116.4	)	

EBIT from In-Force and New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	400.0		$	409.6		$	404.6		$	398.2		$	1,612.4		$	406.5		$	419.0		$	416.1		$	415.8		$	1,657.4		
Net investment income (loss)	209.6		196.9		158.0		201.8		766.3		234.9		185.6		221.6		196.8		838.9		
Fee revenue and other income	2.3		3.3		3.6		4.6		13.8		2.9		3.3		4.0		5.0		15.2		
Total revenues	611.9		609.8		566.2		604.6		2,392.5		644.3		607.9		641.7		617.6		2,511.5		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	404.8		408.9		360.6		395.8		1,570.1		420.9		396.7		434.6		390.7		1,642.9		
Interest expense	1.2		1.1		1.2		1.3		4.8		1.4		1.4		1.3		1.2		5.3		
Amortization	68.5		46.9		44.1		46.8		206.3		56.9		50.5		35.6		44.6		187.6		
Other operating costs and expenses	75.2		80.8		80.9		83.5		320.4		94.6		83.2		89.6		107.4		374.8		
Total benefits and expenses	549.7		537.7		486.8		527.4		2,101.6		573.8		531.8		561.1		543.9		2,210.6		
EBIT from In-Force and New Business	$	62.2		$	72.1		$	79.4		$	77.2		$	290.9		$	70.5		$	76.1		$	80.6		$	73.7		$	300.9		

Page 10

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Washington National	 	 	 	 	 	 	 	 	 	 	
Analysis of income before taxes (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	145.4		$	146.6		$	145.9		$	147.2		$	585.1		$	147.4		$	147.6		$	147.8		$	147.6		$	590.4		
Net investment income (loss):	 	 	 	 	 	 	 	 	 	 	
   General account invested assets	46.3		46.7		47.3		49.1		189.4		50.0		51.0		50.8		52.2		204.0		
Trading account income related to reinsurer accounts	0.3		0.7		2.6		0.2		3.8		0.1		1.4		(0.9	)	—		0.6		
Change in value of embedded derivatives related to modified coinsurance agreements	(0.3	)	(0.7	)	(2.6	)	(0.1	)	(3.7	)	(0.1	)	(1.4	)	1.0		—		(0.5	)	
Net realized investment gains (losses)	(0.5	)	(0.5	)	1.6		1.4		2.0		3.1		3.5		(3.0	)	3.1		6.7		
Fee revenue and other income	0.3		0.2		0.4		0.1		1.0		0.2		0.3		0.3		0.3		1.1		
   Total revenues	191.5		193.0		195.2		197.9		777.6		200.7		202.4		196.0		203.2		802.3		
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	112.2		118.3		119.0		115.0		464.5		115.7		113.7		111.1		106.6		447.1		
Amortization related to operations	13.4		11.4		10.8		9.3		44.9		12.7		10.8		11.2		13.0		47.7		
Interest expense on investment borrowings	—		—		0.2		0.5		0.7		0.7		0.8		0.7		0.6		2.8		
Other operating costs and expenses	42.1		42.0		42.4		42.9		169.4		43.8		39.7		42.1		45.3		170.9		
   Total benefits and expenses	167.7		171.7		172.4		167.7		679.5		172.9		165.0		165.1		165.5		668.5		
   Income before income taxes	$	23.8		$	21.3		$	22.8		$	30.2		$	98.1		$	27.8		$	37.4		$	30.9		$	37.7		$	133.8		

 	 	 	 	 	 	 	 	 	 	 	
Health underwriting margins (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement:	 	 	 	 	 	 	 	 	 	 	
Earned premium	$	35.5		$	34.9		$	33.5		$	32.6		$	136.5		$	30.8		$	30.2		$	29.3		$	28.3		$	118.6		
Benefit ratio	66.3	%	71.1	%	69.9	%	66.7	%	68.5	%	65.4	%	67.7	%	63.8	%	64.7	%	65.4	%	
Underwriting margin (earned premium less policy benefits)	$	12.0		$	10.1		$	10.1		$	10.8		$	43.0		$	10.7		$	9.7		$	10.7		$	9.9		$	41.0		
 	 	 	 	 	 	 	 	 	 	 	
Supplemental health:	 	 	 	 	 	 	 	 	 	 	
Earned premium	$	104.7		$	106.9		$	107.6		$	110.0		$	429.2		$	111.6		$	113.1		$	114.0		$	115.1		$	453.8		
Benefit ratio before interest income on reserves	78.7	%	82.7	%	82.4	%	76.3	%	80.0	%	82.4	%	77.0	%	74.2	%	72.9	%	76.6	%	
Interest-adjusted benefit ratio	49.1	%	54.1	%	53.9	%	48.3	%	51.3	%	55.1	%	50.1	%	47.5	%	46.6	%	49.8	%	
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	53.3		$	49.1		$	49.6		$	56.6		$	208.6		$	50.1		$	56.5		$	59.8		$	61.4		$	227.8		

Page 11

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Washington National	 	 	 	 	 	 	 	 	 	 	
Average liabilities for insurance products (in millions) (continued)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement and other supplemental health	$	2,434.6		$	2,437.1		$	2,436.9		$	2,436.1		$	2,436.2		$	2,429.6		$	2,418.9		$	2,414.5		$	2,414.5		$	2,419.4		
Non-interest sensitive life	205.2		202.2		198.7		199.6		201.4		200.4		199.1		200.3		197.8		199.4		
Total average liabilities for insurance products, net of reinsurance ceded	$	2,639.8		$	2,639.3		$	2,635.6		$	2,635.7		$	2,637.6		$	2,630.0		$	2,618.0		$	2,614.8		$	2,612.3		$	2,618.8		

 	 	 	 	 	 	 	 	 	 	 	
Present value of future profits (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	426.9		$	418.5		$	411.5		$	406.0		$	426.9		$	402.0		$	394.8		$	389.0		$	383.2		$	402.0		
  Amortization related to operations	(8.4	)	(7.0	)	(5.5	)	(4.0	)	(24.9	)	(7.2	)	(5.8	)	(5.8	)	(7.4	)	(26.2	)	
Balance, end of period	$	418.5		$	411.5		$	406.0		$	402.0		$	402.0		$	394.8		$	389.0		$	383.2		$	375.8		$	375.8		

 	 	 	 	 	 	 	 	 	 	 	
Deferred acquisition costs (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	126.8		$	130.4		$	135.0		$	138.7		$	126.8		$	142.3		$	145.9		$	151.0		$	153.9		$	142.3		
  Deferred acquisition expenses	8.6		9.0		9.0		8.9		35.5		9.1		10.1		8.3		9.0		36.5		
  Amortization related to operations	(5.0	)	(4.4	)	(5.3	)	(5.3	)	(20.0	)	(5.5	)	(5.0	)	(5.4	)	(5.6	)	(21.5	)	
Balance, end of period	$	130.4		$	135.0		$	138.7		$	142.3		$	142.3		$	145.9		$	151.0		$	153.9		$	157.3		$	157.3		

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	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	131.9		$	133.5		$	132.1		$	133.2		$	530.7		$	133.0		$	132.8		$	133.4		$	132.3		$	531.5		
Net investment income (loss)	46.3		46.7		47.3		49.2		189.5		50.0		51.0		50.9		52.2		204.1		
Fee revenue and other income	0.3		0.2		0.4		0.1		1.0		0.2		0.3		0.3		0.3		1.1		
Total revenues	178.5		180.4		179.8		182.5		721.2		183.2		184.1		184.6		184.8		736.7		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	106.6		112.9		113.3		109.2		442.0		109.8		107.6		105.2		100.3		422.9		
Interest expense	—		—		0.2		0.5		0.7		0.7		0.8		0.7		0.6		2.8		
Amortization	12.7		10.6		10.2		8.6		42.1		12.0		10.0		10.5		12.3		44.8		
Other operating costs and expenses	31.9		32.1		33.7		32.1		129.8		33.3		31.5		31.9		35.0		131.7		
Total benefits and expenses	151.2		155.6		157.4		150.4		614.6		155.8		149.9		148.3		148.2		602.2		
EBIT from In-Force Business	$	27.3		$	24.8		$	22.4		$	32.1		$	106.6		$	27.4		$	34.2		$	36.3		$	36.6		$	134.5		

EBIT from New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	13.5		$	13.1		$	13.8		$	14.0		$	54.4		$	14.4		$	14.8		$	14.4		$	15.3		$	58.9		
Net investment income (loss)	—		—		—		—		—		—		—		—		—		—		
Fee revenue and other income	—		—		—		—		—		—		—		—		—		—		
Total revenues	13.5		13.1		13.8		14.0		54.4		14.4		14.8		14.4		15.3		58.9		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	5.6		5.4		5.7		5.8		22.5		5.9		6.1		5.9		6.3		24.2		
Interest expense	—		—		—		—		—		—		—		—		—		—		
Amortization	0.7		0.8		0.6		0.7		2.8		0.7		0.8		0.7		0.7		2.9		
Other operating costs and expenses	10.2		9.9		8.7		10.8		39.6		10.5		8.2		10.2		10.3		39.2		
Total benefits and expenses	16.5		16.1		15.0		17.3		64.9		17.1		15.1		16.8		17.3		66.3		
EBIT from New Business	$	(3.0	)	$	(3.0	)	$	(1.2	)	$	(3.3	)	$	(10.5	)	$	(2.7	)	$	(0.3	)	$	(2.4	)	$	(2.0	)	$	(7.4	)	

EBIT from In-Force and New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	145.4		$	146.6		$	145.9		$	147.2		$	585.1		$	147.4		$	147.6		$	147.8		$	147.6		$	590.4		
Net investment income (loss)	46.3		46.7		47.3		49.2		189.5		50.0		51.0		50.9		52.2		204.1		
Fee revenue and other income	0.3		0.2		0.4		0.1		1.0		0.2		0.3		0.3		0.3		1.1		
Total revenues	192.0		193.5		193.6		196.5		775.6		197.6		198.9		199.0		200.1		795.6		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	112.2		118.3		119.0		115.0		464.5		115.7		113.7		111.1		106.6		447.1		
Interest expense	—		—		0.2		0.5		0.7		0.7		0.8		0.7		0.6		2.8		
Amortization	13.4		11.4		10.8		9.3		44.9		12.7		10.8		11.2		13.0		47.7		
Other operating costs and expenses	42.1		42.0		42.4		42.9		169.4		43.8		39.7		42.1		45.3		170.9		
Total benefits and expenses	167.7		171.7		172.4		167.7		679.5		172.9		165.0		165.1		165.5		668.5		
EBIT from In-Force and New Business	$	24.3		$	21.8		$	21.2		$	28.8		$	96.1		$	24.7		$	33.9		$	33.9		$	34.6		$	127.1		

Page 13

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Colonial Penn	 	 	 	 	 	 	 	 	 	 	
Analysis of income (loss) before taxes (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	50.3		$	50.9		$	50.8		$	51.0		$	203.0		$	53.4		$	54.6		$	54.5		$	55.3		$	217.8		
Net investment income on general account invested assets	10.3		10.5		10.1		10.2		41.1		10.0		10.2		9.9		10.3		40.4		
Net realized investment gains	1.1		0.2		3.5		1.0		5.8		2.6		1.9		2.6		0.1		7.2		
Fee revenue and other income	0.2		0.2		0.2		0.3		0.9		0.2		0.2		0.2		0.1		0.7		
   Total revenues	61.9		61.8		64.6		62.5		250.8		66.2		66.9		67.2		65.8		266.1		
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	38.5		37.8		35.7		37.2		149.2		41.9		39.3		38.2		40.9		160.3		
Amounts added to annuity and interest-sensitive life product account balances	0.2		0.2		0.3		0.2		0.9		0.2		0.3		0.1		0.2		0.8		
Amortization related to operations	4.0		3.5		3.5		4.0		15.0		3.7		3.9		3.5		3.9		15.0		
Other operating costs and expenses	23.8		19.6		22.9		18.3		84.6		27.6		20.9		25.4		17.5		91.4		
   Total benefits and expenses	66.5		61.1		62.4		59.7		249.7		73.4		64.4		67.2		62.5		267.5		
   Income (loss) before income taxes	$	(4.6	)	$	0.7		$	2.2		$	2.8		$	1.1		$	(7.2	)	$	2.5		$	—		$	3.3		$	(1.4	)	

 	 	 	 	 	 	 	 	 	 	 	
Average liabilities for insurance products (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Annuities - mortality based	$	78.5		$	77.8		$	77.3		$	77.1		$	77.7		$	77.0		$	76.8		$	76.4		$	75.9		$	76.5		
Supplemental health	16.6		16.3		16.1		15.8		16.2		15.4		15.1		15.0		14.7		15.1		
Life:	 	 	 	 	 	 	 	 	 	 	
   Interest sensitive	20.7		20.5		20.2		20.1		20.3		19.9		18.9		18.1		17.9		18.7		
   Non-interest sensitive	586.7		588.7		590.2		593.4		589.8		598.4		601.8		605.8		612.2		604.5		
Total average liabilities for insurance products, net of reinsurance ceded	$	702.5		$	703.3		$	703.8		$	706.4		$	704.0		$	710.7		$	712.6		$	715.3		$	720.7		$	714.8		

 	 	 	 	 	 	 	 	 	 	 	
Present value of future profits (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	81.7		$	79.1		$	76.9		$	74.9		$	81.7		$	72.6		$	70.2		$	67.8		$	65.7		$	72.6		
  Amortization related to operations	(2.6	)	(2.2	)	(2.0	)	(2.3	)	(9.1	)	(2.4	)	(2.4	)	(2.1	)	(2.1	)	(9.0	)	
Balance, end of period	$	79.1		$	76.9		$	74.9		$	72.6		$	72.6		$	70.2		$	67.8		$	65.7		$	63.6		$	63.6		

 	 	 	 	 	 	 	 	 	 	 	
Deferred acquisition costs (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	48.5		$	49.4		$	50.4		$	51.2		$	48.5		$	51.5		$	52.6		$	53.8		$	54.6		$	51.5		
  Deferred acquisition expenses	2.3		2.3		2.3		2.0		8.9		2.4		2.7		2.2		4.7		12.0		
  Amortization related to operations	(1.4	)	(1.3	)	(1.5	)	(1.7	)	(5.9	)	(1.3	)	(1.5	)	(1.4	)	(1.8	)	(6.0	)	
Balance, end of period	$	49.4		$	50.4		$	51.2		$	51.5		$	51.5		$	52.6		$	53.8		$	54.6		$	57.5		$	57.5		

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	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	41.8		$	42.0		$	42.0		$	41.8		$	167.6		$	43.2		$	43.7		$	43.5		$	44.1		$	174.5		
Net investment income (loss)	10.3		10.5		10.1		10.2		41.1		10.0		10.2		9.9		10.3		40.4		
Fee revenue and other income	0.2		0.2		0.2		0.3		0.9		0.2		0.2		0.2		0.1		0.7		
Total revenues	52.3		52.7		52.3		52.3		209.6		53.4		54.1		53.6		54.5		215.6		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	33.8		32.9		30.9		32.1		129.7		36.2		33.4		32.0		34.7		136.3		
Amortization	3.9		3.4		3.3		3.7		14.3		3.6		3.8		3.2		3.5		14.1		
Other operating costs and expenses	6.6		6.3		6.5		6.7		26.1		6.9		5.7		6.8		5.2		24.6		
Total benefits and expenses	44.3		42.6		40.7		42.5		170.1		46.7		42.9		42.0		43.4		175.0		
EBIT from In-Force Business	$	8.0		$	10.1		$	11.6		$	9.8		$	39.5		$	6.7		$	11.2		$	11.6		$	11.1		$	40.6		

EBIT from New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	8.5		$	8.9		$	8.8		$	9.2		$	35.4		$	10.2		$	10.9		$	11.0		$	11.2		$	43.3		
Net investment income (loss)	—		—		—		—		—		—		—		—		—		—		
Fee revenue and other income	—		—		—		—		—		—		—		—		—		—		
Total revenues	8.5		8.9		8.8		9.2		35.4		10.2		10.9		11.0		11.2		43.3		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	4.9		5.1		5.1		5.3		20.4		5.9		6.2		6.3		6.4		24.8		
Amortization	0.1		0.1		0.2		0.3		0.7		0.1		0.1		0.3		0.4		0.9		
Other operating costs and expenses	17.2		13.3		16.4		11.6		58.5		20.7		15.2		18.6		12.3		66.8		
Total benefits and expenses	22.2		18.5		21.7		17.2		79.6		26.7		21.5		25.2		19.1		92.5		
EBIT from New Business	$	(13.7	)	$	(9.6	)	$	(12.9	)	$	(8.0	)	$	(44.2	)	$	(16.5	)	$	(10.6	)	$	(14.2	)	$	(7.9	)	$	(49.2	)	

EBIT from In-Force and New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	50.3		$	50.9		$	50.8		$	51.0		$	203.0		$	53.4		$	54.6		$	54.5		$	55.3		$	217.8		
Net investment income (loss)	10.3		10.5		10.1		10.2		41.1		10.0		10.2		9.9		10.3		40.4		
Fee revenue and other income	0.2		0.2		0.2		0.3		0.9		0.2		0.2		0.2		0.1		0.7		
Total revenues	60.8		61.6		61.1		61.5		245.0		63.6		65.0		64.6		65.7		258.9		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	38.7		38.0		36.0		37.4		150.1		42.1		39.6		38.3		41.1		161.1		
Amortization	4.0		3.5		3.5		4.0		15.0		3.7		3.9		3.5		3.9		15.0		
Other operating costs and expenses	23.8		19.6		22.9		18.3		84.6		27.6		20.9		25.4		17.5		91.4		
Total benefits and expenses	66.5		61.1		62.4		59.7		249.7		73.4		64.4		67.2		62.5		267.5		
EBIT from In-Force and New Business	$	(5.7	)	$	0.5		$	(1.3	)	$	1.8		$	(4.7	)	$	(9.8	)	$	0.6		$	(2.6	)	$	3.2		$	(8.6	)	

Page 15

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Other CNO Business	 	 	 	 	 	 	 	 	 	 	
Analysis of income (loss) before taxes (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	71.5		$	72.5		$	72.2		$	73.8		$	290.0		$	79.0		$	73.6		$	71.8		$	65.4		$	289.8		
Net investment income (loss):	 	 	 	 	 	 	 	 	 	 	
   General account invested assets	88.2		87.6		85.4		85.7		346.9		84.0		84.0		82.3		82.6		332.9		
   Fixed index products	5.0		(0.9	)	(8.4	)	0.9		(3.4	)	6.8		(4.1	)	3.3		(1.8	)	4.2		
Trading account income related to policyholder accounts	1.5		—		(2.4	)	1.5		0.6		1.9		(0.1	)	1.1		0.6		3.5		
Net realized investment gains (losses)	(1.0	)	1.1		3.0		3.0		6.1		6.7		7.5		(5.4	)	3.6		12.4		
   Total revenues	165.2		160.3		149.8		164.9		640.2		178.4		160.9		153.1		150.4		642.8		
 	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	88.8		85.9		86.7		88.7		350.1		83.0		93.8		122.7		81.3		380.8		
Insurance policy benefits - fair value changes in embedded derivative liabilities	—		—		3.2		—		3.2		(0.6	)	1.0		—		(0.5	)	(0.1	)	
Amounts added to policyholder account balances:	 	 	 	 	 	 	 	 	 	 	
Annuity products and interest-sensitive life products other than fixed index products	31.6		30.3		28.9		29.6		120.4		29.7		27.5		29.4		25.2		111.8		
   Fixed index products	7.1		3.0		(4.1	)	3.4		9.4		9.2		0.7		5.0		0.9		15.8		
Amortization related to operations	8.6		9.4		10.4		11.4		39.8		7.5		7.1		10.5		8.7		33.8		
Amortization related to net realized investment gains (losses)	(0.4	)	(0.3	)	0.9		—		0.2		0.2		1.4		0.3		0.3		2.2		
Amortization related to fair value changes in embedded derivative liabilities	—		—		(2.6	)	—		(2.6	)	0.5		(0.8	)	—		0.4		0.1		
Interest expense on investment borrowings	4.9		5.0		5.3		5.1		20.3		5.1		5.0		5.0		4.8		19.9		
Other operating costs and expenses	17.8		20.5		16.8		23.7		78.8		39.5		17.4		39.5		20.7		117.1		
   Total benefits and expenses	158.4		153.8		145.5		161.9		619.6		174.1		153.1		212.4		141.8		681.4		
   Income (loss) before income taxes	$	6.8		$	6.5		$	4.3		$	3.0		$	20.6		$	4.3		$	7.8		$	(59.3	)	$	8.6		$	(38.6	)	

 	 	 	 	 	 	 	 	 	 	 	
Health underwriting margins (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Long-term care:	 	 	 	 	 	 	 	 	 	 	
   Earned premium	$	7.3		$	7.0		$	6.9		$	6.4		$	27.6		$	6.6		$	6.5		$	6.2		$	6.3		$	25.6		
   Benefit ratio before interest income on reserves	235.7	%	205.8	%	227.5	%	237.1	%	226.4	%	227.4	%	230.2	%	282.4	%	249.8	%	247.0	%	
   Interest-adjusted benefit ratio	148.0	%	106.4	%	126.1	%	127.8	%	127.3	%	122.0	%	121.3	%	169.9	%	138.8	%	137.6	%	
Underwriting margin (earned premium plus interest income on reserves less policy benefits)	$	(3.5	)	$	(0.5	)	$	(1.8	)	$	(1.9	)	$	(7.7	)	$	(1.5	)	$	(1.4	)	$	(4.3	)	$	(2.5	)	$	(9.7	)	

Page 16

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Other CNO Business	 	 	 	 	 	 	 	 	 	 	
Average liabilities for insurance products (in millions) (continued)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Annuities:	 	 	 	 	 	 	 	 	 	 	
   Mortality based	$	240.2		$	237.2		$	234.3		$	231.9		$	235.9		$	229.1		$	225.5		$	221.5		$	218.8		$	223.7		
   Fixed index	652.1		632.1		607.6		577.9		617.4		553.8		532.5		510.5		489.9		521.7		
   Deposit based	659.6		656.1		651.1		645.0		652.9		638.4		633.1		635.6		633.1		635.1		
   Separate accounts	17.8		17.7		16.4		15.2		16.8		15.5		15.8		15.6		15.3		15.6		
Other health	481.8		481.9		481.3		481.4		481.6		481.0		479.8		479.6		477.5		479.5		
Life:	 	 	 	 	 	 	 	 	 	 	
   Interest sensitive	2,527.4		2,506.1		2,484.6		2,456.6		2,493.7		2,416.9		2,365.9		2,329.1		2,285.5		2,349.3		
   Non-interest sensitive	805.6		790.9		780.6		774.0		787.8		766.5		763.3		782.1		809.0		780.2		
Total average liabilities for insurance products, net of reinsurance ceded	$	5,384.5		$	5,322.0		$	5,255.9		$	5,182.0		$	5,286.1		$	5,101.2		$	5,015.9		$	4,974.0		$	4,929.1		$	5,005.1		

 	 	 	 	 	 	 	 	 	 	 	
Present value of future profits (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2,012.0	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	32.8		$	29.8		$	26.1		$	24.4		$	32.8		$	21.3		$	20.6		$	19.5		$	18.4		$	21.3		
Amortization related to operations	(2.4	)	(2.2	)	(1.1	)	(3.6	)	(9.3	)	(1.4	)	(1.4	)	(1.4	)	(3.2	)	(7.4	)	
Amortization related to net realized investment (gains) losses	—		—		—		—		—		—		—		—		(0.1	)	(0.1	)	
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	(0.6	)	(1.5	)	(0.6	)	0.5		(2.2	)	0.7		0.3		0.3		2.7		4.0		
Balance, end of period	$	29.8		$	26.1		$	24.4		$	21.3		$	21.3		$	20.6		$	19.5		$	18.4		$	17.8		$	17.8		

 	 	 	 	 	 	 	 	 	 	 	
Deferred acquisition costs (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2,012.0	
 	 	 	 	 	 	 	 	 	 	 	
Balance, beginning of period	$	162.0		$	151.8		$	141.9		$	117.5		$	162.0		$	112.3		$	105.4		$	96.5		$	84.8		$	112.3		
Deferred acquisition expenses	1.9		1.9		1.2		1.0		6.0		0.4		1.3		1.0		1.5		4.2		
Amortization related to operations	(6.2	)	(7.2	)	(9.3	)	(7.8	)	(30.5	)	(6.1	)	(5.7	)	(9.1	)	(5.5	)	(26.4	)	
Amortization related to net realized investment (gains) losses	0.4		0.3		(0.9	)	—		(0.2	)	(0.2	)	(1.4	)	(0.3	)	(0.2	)	(2.1	)	
Amortization related to fair value changes in embedded derivative liabilities	—		—		2.6		—		2.6		(0.5	)	0.8		—		(0.4	)	(0.1	)	
Adjustment related to unrealized (gain) or loss on fixed maturities, available for sale	(6.3	)	(4.9	)	(18.0	)	1.6		(27.6	)	(0.5	)	(3.9	)	(3.3	)	1.9		(5.8	)	
Balance, end of period	$	151.8		$	141.9		$	117.5		$	112.3		$	112.3		$	105.4		$	96.5		$	84.8		$	82.1		$	82.1		

Page 17

	
																															
Other CNO Business Segment EBIT Summarized by In-Force and New Business (6)	 	 	 	 	 	 	 	 	 	 	
(in millions)	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
EBIT from In-force Business	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	71.5		$	72.5		$	72.2		$	73.8		$	290.0		$	79.0		$	73.6		$	71.8		$	65.4		$	289.8		
Net investment income (loss)	94.7		86.7		74.6		88.1		344.1		92.7		79.8		86.7		81.4		340.6		
Fee revenue and other income	—		—		—		—		—		—		—		—		—		—		
Total revenues	166.2		159.2		146.8		161.9		634.1		171.7		153.4		158.5		146.8		630.4		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	127.5		119.2		111.5		121.7		479.9		121.9		122.0		157.1		107.4		508.4		
Interest expense	4.9		5.0		5.3		5.1		20.3		5.1		5.0		5.0		4.8		19.9		
Amortization	8.6		9.4		10.4		11.4		39.8		7.5		7.1		10.5		8.7		33.8		
Other operating costs and expenses	17.8		20.5		16.8		23.7		78.8		39.5		17.4		39.5		20.7		117.1		
Total benefits and expenses	158.8		154.1		144.0		161.9		618.8		174.0		151.5		212.1		141.6		679.2		
EBIT from In-Force Business	$	7.4		$	5.1		$	2.8		$	—		$	15.3		$	(2.3	)	$	1.9		$	(53.6	)	$	5.2		$	(48.8	)	

EBIT from New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		
Net investment income (loss)	—		—		—		—		—		—		—		—		—		—		
Fee revenue and other income	—		—		—		—		—		—		—		—		—		—		
Total revenues	—		—		—		—		—		—		—		—		—		—		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	—		—		—		—		—		—		—		—		—		—		
Interest expense	—		—		—		—		—		—		—		—		—		—		
Amortization	—		—		—		—		—		—		—		—		—		—		
Other operating costs and expenses	—		—		—		—		—		—		—		—		—		—		
Total benefits and expenses	—		—		—		—		—		—		—		—		—		—		
EBIT from New Business	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		

EBIT from In-Force and New Business	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	 	 	 	 	 	 	 	 	
Insurance policy income	$	71.5		$	72.5		$	72.2		$	73.8		$	290.0		$	79.0		$	73.6		$	71.8		$	65.4		$	289.8		
Net investment income (loss)	94.7		86.7		74.6		88.1		344.1		92.7		79.8		86.7		81.4		340.6		
Fee revenue and other income	—		—		—		—		—		—		—		—		—		—		
Total revenues	166.2		159.2		146.8		161.9		634.1		171.7		153.4		158.5		146.8		630.4		
 	 	 	 	 	 	 	 	 	 	 	
Benefits and expenses	 	 	 	 	 	 	 	 	 	 	
Insurance policy benefits	127.5		119.2		111.5		121.7		479.9		121.9		122.0		157.1		107.4		508.4		
Interest expense	4.9		5.0		5.3		5.1		20.3		5.1		5.0		5.0		4.8		19.9		
Amortization	8.6		9.4		10.4		11.4		39.8		7.5		7.1		10.5		8.7		33.8		
Other operating costs and expenses	17.8		20.5		16.8		23.7		78.8		39.5		17.4		39.5		20.7		117.1		
Total benefits and expenses	158.8		154.1		144.0		161.9		618.8		174.0		151.5		212.1		141.6		679.2		
EBIT from In-Force and New Business	$	7.4		$	5.1		$	2.8		$	—		$	15.3		$	(2.3	)	$	1.9		$	(53.6	)	$	5.2		$	(48.8	)	

Page 18

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Corporate Operations	 	 	 	 	 	 	 	 	 	 	
Analysis of loss before taxes (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Net investment income (loss):	 	 	 	 	 	 	 	 	 	 	
   General account invested assets	$	—		$	0.9		$	1.1		$	1.0		$	3.0		$	0.9		$	1.0		$	1.0		$	0.7		$	3.6		
   Other special-purpose portfolios	8.2		(0.1	)	(13.7	)	(3.1	)	(8.7	)	16.2		(1.1	)	8.2		4.2		27.5		
Fee revenue and other income	0.4		0.2		0.3		0.4		1.3		0.4		0.2		0.3		0.3		1.2		
Net operating results of variable interest entities	2.0		0.2		3.8		1.5		7.5		2.2		2.9		4.7		2.5		12.3		
Interest expense on investment borrowings	—		—		(0.1	)	(0.1	)	(0.2	)	(0.1	)	(0.2	)	(0.1	)	—		(0.4	)	
Other operating costs and expenses	(11.1	)	(12.5	)	(18.9	)	(8.1	)	(50.6	)	(21.4	)	(11.9	)	(20.8	)	(10.4	)	(64.5	)	
Corporate operations, excluding corporate interest expense	(0.5	)	(11.3	)	(27.5	)	(8.4	)	(47.7	)	(1.8	)	(9.1	)	(6.7	)	(2.7	)	(20.3	)	
Interest expense on corporate debt	(20.6	)	(19.3	)	(18.7	)	(17.7	)	(76.3	)	(17.5	)	(16.6	)	(16.3	)	(15.8	)	(66.2	)	
Loss before net realized investment gains (losses), loss on extinguishment of debt and income taxes	(21.1	)	(30.6	)	(46.2	)	(26.1	)	(124.0	)	(19.3	)	(25.7	)	(23.0	)	(18.5	)	(86.5	)	
Net realized investment gains (losses)	(1.1	)	3.9		(4.0	)	1.2		—		(0.1	)	1.1		0.8		—		1.8		
Loss on extinguishment of debt	(1.4	)	(0.6	)	(1.1	)	(0.3	)	(3.4	)	(0.2	)	(0.5	)	(198.5	)	(1.0	)	(200.2	)	
Loss before income taxes	$	(23.6	)	$	(27.3	)	$	(51.3	)	$	(25.2	)	$	(127.4	)	$	(19.6	)	$	(25.1	)	$	(220.7	)	$	(19.5	)	$	(284.9	)	

Page 19

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Bankers Life	 	 	 	 	 	 	 	 	 	 	
Premiums collected on insurance products (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Annuities	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Fixed index (first-year)	$	148.2		$	163.9		$	208.0		$	188.3		$	708.4		$	134.9		$	120.2		$	114.5		$	135.4		$	505.0		
 	 	 	 	 	 	 	 	 	 	 	
Other fixed rate (first-year)	73.1		94.1		55.1		50.6		272.9		47.8		47.9		56.0		46.3		198.0		
Other fixed rate (renewal)	0.9		1.1		1.0		1.2		4.2		2.0		1.4		1.2		1.4		6.0		
  Subtotal - other fixed rate annuities	74.0		95.2		56.1		51.8		277.1		49.8		49.3		57.2		47.7		204.0		
 	 	 	 	 	 	 	 	 	 	 	
      Total annuities	222.2		259.1		264.1		240.1		985.5		184.7		169.5		171.7		183.1		709.0		
 	 	 	 	 	 	 	 	 	 	 	
Health	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement (first-year)	25.1		24.7		24.5		27.0		101.3		23.8		25.1		24.7		25.8		99.4		
Medicare supplement (renewal)	153.7		144.3		146.8		155.1		599.9		151.1		149.8		153.0		163.9		617.8		
  Subtotal - Medicare supplement	178.8		169.0		171.3		182.1		701.2		174.9		174.9		177.7		189.7		717.2		
 	 	 	 	 	 	 	 	 	 	 	
Long-term care (first-year)	6.1		6.0		5.9		5.5		23.5		5.5		5.9		6.0		6.0		23.4		
Long-term care (renewal)	138.8		136.9		131.9		130.8		538.4		131.2		132.9		130.1		128.9		523.1		
  Subtotal - long-term care	144.9		142.9		137.8		136.3		561.9		136.7		138.8		136.1		134.9		546.5		
 	 	 	 	 	 	 	 	 	 	 	
PDP and PFFS (first-year)	0.4		0.2		0.6		0.6		1.8		0.3		0.1		0.1		0.2		0.7		
PDP and PFFS (renewal)	10.6		14.4		15.6		14.1		54.7		15.0		14.6		10.2		7.3		47.1		
  Subtotal - PDP and PFFS	11.0		14.6		16.2		14.7		56.5		15.3		14.7		10.3		7.5		47.8		
 	 	 	 	 	 	 	 	 	 	 	
Other health (first-year)	0.4		0.3		0.4		0.5		1.6		0.4		0.6		0.9		1.4		3.3		
Other health (renewal)	2.5		2.3		2.3		2.3		9.4		2.2		2.3		2.3		2.3		9.1		
  Subtotal - other health	2.9		2.6		2.7		2.8		11.0		2.6		2.9		3.2		3.7		12.4		
 	 	 	 	 	 	 	 	 	 	 	
    Total health	337.6		329.1		328.0		335.9		1,330.6		329.5		331.3		327.3		335.8		1,323.9		
 	 	 	 	 	 	 	 	 	 	 	
Life insurance	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
First-year	24.7		29.4		30.9		30.8		115.8		32.8		35.7		38.9		42.5		149.9		
Renewal	31.7		32.6		34.6		35.3		134.2		37.3		39.7		42.4		45.3		164.7		
 	 	 	 	 	 	 	 	 	 	 	
    Total life insurance	56.4		62.0		65.5		66.1		250.0		70.1		75.4		81.3		87.8		314.6		
 	 	 	 	 	 	 	 	 	 	 	
Collections on insurance products	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Total first-year premium collections on insurance products	278.0		318.6		325.4		303.3		1,225.3		245.5		235.5		241.1		257.6		979.7		
Total renewal premium collections on insurance products	338.2		331.6		332.2		338.8		1,340.8		338.8		340.7		339.2		349.1		1,367.8		
 	 	 	 	 	 	 	 	 	 	 	
    Total collections on insurance products	$	616.2		$	650.2		$	657.6		$	642.1		$	2,566.1		$	584.3		$	576.2		$	580.3		$	606.7		$	2,347.5		

Page 20

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Washington National	 	 	 	 	 	 	 	 	 	 	
Premiums collected on insurance products (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Health	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement (first-year)	$	0.6		$	0.5		$	0.4		$	0.4		$	1.9		$	0.3		$	0.3		$	0.2		$	0.2		$	1.0		
Medicare supplement (renewal)	34.7		32.6		31.5		31.4		130.2		27.8		28.8		28.2		28.1		112.9		
  Subtotal - Medicare supplement	35.3		33.1		31.9		31.8		132.1		28.1		29.1		28.4		28.3		113.9		
 	 	 	 	 	 	 	 	 	 	 	
Supplemental health (first-year)	13.2		13.7		13.2		14.0		54.1		14.1		15.1		14.7		15.3		59.2		
Supplemental health (renewal)	93.7		95.2		95.2		96.0		380.1		98.8		100.3		99.8		101.6		400.5		
  Subtotal - supplemental health	106.9		108.9		108.4		110.0		434.2		112.9		115.4		114.5		116.9		459.7		
Other health (all renewal)	1.0		0.8		0.9		0.8		3.5		0.7		0.6		0.7		0.7		2.7		
 	 	 	 	 	 	 	 	 	 	 	
    Total health	143.2		142.8		141.2		142.6		569.8		141.7		145.1		143.6		145.9		576.3		
 	 	 	 	 	 	 	 	 	 	 	
Life insurance	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
First-year	0.4		0.3		0.4		0.1		1.2		0.2		0.3		0.3		0.2		1.0		
Renewal	3.9		3.6		3.7		3.6		14.8		3.8		3.5		2.7		3.2		13.2		
 	 	 	 	 	 	 	 	 	 	 	
    Total life insurance	4.3		3.9		4.1		3.7		16.0		4.0		3.8		3.0		3.4		14.2		
 	 	 	 	 	 	 	 	 	 	 	
Collections on insurance products	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Total first-year premium collections on insurance products	14.2		14.5		14.0		14.5		57.2		14.6		15.7		15.2		15.7		61.2		
Total renewal premium collections on insurance products	133.3		132.2		131.3		131.8		528.6		131.1		133.2		131.4		133.6		529.3		
 	 	 	 	 	 	 	 	 	 	 	
    Total collections on insurance products	$	147.5		$	146.7		$	145.3		$	146.3		$	585.8		$	145.7		$	148.9		$	146.6		$	149.3		$	590.5		

Page 21

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Colonial Penn	 	 	 	 	 	 	 	 	 	 	
Premiums collected on insurance products (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Life insurance	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
First-year	$	8.7		$	8.6		$	8.9		$	9.2		$	35.4		$	10.4		$	10.7		$	10.9		$	11.1		$	43.1		
Renewal	40.7		39.9		40.3		40.1		161.0		42.2		41.8		42.1		42.7		168.8		
 	 	 	 	 	 	 	 	 	 	 	
    Total life insurance	49.4		48.5		49.2		49.3		196.4		52.6		52.5		53.0		53.8		211.9		
 	 	 	 	 	 	 	 	 	 	 	
Health (all renewal)	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement	1.3		1.4		1.3		1.2		5.2		1.2		1.1		1.1		1.1		4.5		
 	 	 	 	 	 	 	 	 	 	 	
Other health	0.2		0.1		0.1		0.1		0.5		0.1		0.1		0.1		0.1		0.4		
 	 	 	 	 	 	 	 	 	 	 	
    Total health	1.5		1.5		1.4		1.3		5.7		1.3		1.2		1.2		1.2		4.9		
 	 	 	 	 	 	 	 	 	 	 	
Collections on insurance products	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Total first-year premium collections on insurance products	8.7		8.6		8.9		9.2		35.4		10.4		10.7		10.9		11.1		43.1		
Total renewal premium collections on insurance products	42.2		41.4		41.7		41.4		166.7		43.5		43.0		43.3		43.9		173.7		
 	 	 	 	 	 	 	 	 	 	 	
    Total collections on insurance products	$	50.9		$	50.0		$	50.6		$	50.6		$	202.1		$	53.9		$	53.7		$	54.2		$	55.0		$	216.8		

Page 22

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Other CNO Business	 	 	 	 	 	 	 	 	 	 	
Premiums collected on insurance products (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Annuities	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Fixed index (first-year)	$	2.7		$	2.7		$	2.2		$	1.9		$	9.5		$	—		$	0.2		$	0.1		$	0.3		$	0.6		
Fixed index (renewal)	0.9		1.4		0.8		0.8		3.9		0.7		0.8		0.4		0.4		2.3	
  Subtotal - fixed index annuities	3.6		4.1		3.0		2.7		13.4		0.7		1.0		0.5		0.7		2.9	
 	 	 	 	 	 	 	 	 	 	 	
Other fixed rate (first-year)	0.4		1.6		0.1		—		2.1		—		—		—		—		—		
Other fixed rate (renewal)	0.2		0.2		0.2		0.3		0.9		0.2		0.2		0.4		0.1		0.9	
  Subtotal - other fixed rate annuities	0.6		1.8		0.3		0.3		3.0		0.2		0.2		0.4		0.1		0.9	
 	 	 	 	 	 	 	 	 	 	 	
      Total annuities	4.2		5.9		3.3		3.0		16.4		0.9		1.2		0.9		0.8		3.8	
 	 	 	 	 	 	 	 	 	 	 	
Health	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Long-term care (all renewal)	7.4		7.0		6.5		6.1		27.0		6.7		6.3		6.0		6.1		25.1	
Other health (all renewal)	0.2		0.2		0.2		0.2		0.8		0.2		0.2		0.1		0.2		0.7	
 	 	 	 	 	 	 	 	 	 	 	
    Total health	7.6		7.2		6.7		6.3		27.8		6.9		6.5		6.1		6.3		25.8	
 	 	 	 	 	 	 	 	 	 	 	
Life insurance	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
First-year	0.4		0.9		0.3		0.5		2.1		0.6		0.8		0.9		1.1		3.4	
Renewal	46.0		48.0		43.7		39.6		177.3		44.7		40.1		39.4		37.4		161.6		
 	 	 	 	 	 	 	 	 	 	 	
    Total life insurance	46.4		48.9		44.0		40.1		179.4		45.3		40.9		40.3		38.5		165.0		
 	 	 	 	 	 	 	 	 	 	 	
Collections on insurance products	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Total first-year premium collections on insurance products	3.5		5.2		2.6		2.4		13.7		0.6		1.0		1.0		1.4		4.0		
Total renewal premium collections on insurance products	54.7		56.8		51.4		47.0		209.9		52.5		47.6		46.3		44.2		190.6		
 	 	 	 	 	 	 	 	 	 	 	
    Total collections on insurance products	$	58.2		$	62.0		$	54.0		$	49.4		$	223.6		$	53.1		$	48.6		$	47.3		$	45.6		$	194.6		

Page 23

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

Bankers Life	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12	2012	
 	 	 	 	 	 	 	 	 	 	 	
Medicare supplement	$	18.3		$	18.6		$	19.4		$	31.5		$	87.8		$	19.5		$	20.7		$	21.1		$	31.0		$	92.3		
Life	16.6		18.6		18.2		17.0		70.4		20.3		20.9		18.9		21.4		81.5	
Long-term care	6.9		7.3		7.3		7.0		28.5		7.9		7.8		7.2		6.0		28.9	
Annuity	13.4		15.6		15.9		14.3		59.2		11.1		10.1		10.4		10.9		42.5	
   Subtotal Bankers Life	55.2		60.1		60.8		69.8		245.9		58.8		59.5		57.6		69.3		245.2		

Washington National	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Supplemental health	15.7		17.9		18.6		18.9		71.1		17.6		20.3		19.7		21.2		78.8		
Medicare supplement	0.5		0.4		0.3		0.3		1.5		0.3		0.2		0.2		0.1		0.8	
Life	0.8		0.8		0.9		1.8		4.3		2.0		1.7		1.5		1.5		6.7	
Annuity	0.2		0.3		0.2		0.2		0.9		—		0.1		—		—		0.1	
   Subtotal Washington National	17.2		19.4		20.0		21.2		77.8		19.9		22.3		21.4		22.8		86.4		

Colonial Penn	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Graded Life	13.6		12.8		12.7		12.3		51.4		17.5		15.6		15.1		13.6		61.8		

 	 	 	 	 	 	 	 	 	 	 	
Total NAP	$	86.0		$	92.3		$	93.5		$	103.3		$	375.1		$	96.2		$	97.4		$	94.1		$	105.7		$	393.4		

Page 24

	
																															
CNO Financial Group, Inc.	 	 	 	 	 	 	 	 	 	 	
Statutory information - consolidated basis (7) (in millions)	1Q11	2Q11	3Q11	4Q11	2011	1Q12	2Q12	3Q12	4Q12 (*)	2012 (*)	
 	 	 	 	 	 	 	 	 	 	 	
Net gain from operations before interest expense and federal income taxes	$	114.0		$	92.9		$	91.9		$	132.8		$	431.6		$	100.4		$	107.7		$	82.8		$	111.9		$	402.8		
Interest expense on surplus debentures held by parent company	12.0		12.2		22.7		12.3		59.2		12.1		12.1		22.4		12.3		58.9		
 	 	 	 	 	 	 	 	 	 	 	
Net gain from operations before federal income taxes	102.0		80.7		69.2		120.5		372.4		88.3		95.6		60.4		99.6		343.9		
Federal income tax expense (benefit)	0.6		2.0		3.7		3.0		9.3		1.7		(0.9	)	0.1		5.6		6.5		
 	 	 	 	 	 	 	 	 	 	 	
Net gain from operations before net realized capital gains (losses)	101.4		78.7		65.5		117.5		363.1		86.6		96.5		60.3		94.0		337.4		
Net realized capital gains (losses)	(15.0	)	2.4		10.5		5.8		3.7		7.8		7.2		(10.6	)	8.6		13.0		
 	 	 	 	 	 	 	 	 	 	 	
Net income	$	86.4		$	81.1		$	76.0		$	123.3		$	366.8		$	94.4		$	103.7		$	49.7		$	102.6		$	350.4		

 	 	 	 	 	 	 	 	 	 	 	
Capital and surplus	$	1,567.4		$	1,551.5		$	1,553.1		$	1,578.1		$	1,578.1		$	1,601.9		$	1,626.0		$	1,554.3		$	1,560.4		$	1,560.4		
Asset valuation reserve (AVR)	97.7		116.5		143.2		168.4		168.4		191.3		206.1		212.5		222.2		222.2	
 	 	 	 	 	 	 	 	 	 	 	
  Capital, surplus and AVR	1,665.1		1,668.0		1,696.3		1,746.5		1,746.5		1,793.2		1,832.1		1,766.8		1,782.6		1,782.6		
 	 	 	 	 	 	 	 	 	 	 	
Interest maintenance reserve (IMR)	448.3		475.8		507.1		552.0		552.0		562.2		581.4		590.1		585.8		585.8	
 	 	 	 	 	 	 	 	 	 	 	
  Total statutory capital, surplus, AVR & IMR	$	2,113.4		$	2,143.8		$	2,203.4		$	2,298.5		$	2,298.5		$	2,355.4		$	2,413.5		$	2,356.9		$	2,368.4		$	2,368.4		

(*) Such amounts are preliminary as the statutory basis financial statements of our insurance subsidiaries for 4Q2012 will be
filed with the respective insurance regulators on or before March 1, 2013.

Page 25

Notes

(1) Excludes accumulated other comprehensive income (loss).

(2) Shareholders' equity divided by common shares outstanding.

(3) Assumes conversion of all convertible securities.

(4) Management believes that an analysis of earnings before 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, corporate interest expense, loss on extinguishment 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) loss on extinguishment of debt, net of income taxes; (ii) net realized investment gains or losses, net of related amortization and income taxes; (iii) 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 income taxes; and (iv) changes in our 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. The impact of fair value changes in embedded derivative liabilities caused by interest rate fluctuations was insignificant in prior periods. Prior to June 30, 2011, certain of our trading securities were held to offset the income statement volatility caused by the effect of interest rate fluctuations on the value of embedded derivatives related to our fixed index annuity products. During 2Q2011, these securities were sold.

(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.

Page 26