8-K

\

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

 PURSUANT TO SECTION 13 OR 15(d) OF THE

 SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 4, 2010

CNO Financial Group, Inc.

(Exact Name of Registrant as Specified in Charter)

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

11825 North Pennsylvania Street

Carmel, Indiana  46032

(Address of Principal Executive Offices) (Zip Code)

(317) 817-6100

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

On August 4, 2010, CNO Financial Group, Inc. (the "Company") issued additional financial information related to the Company's financial and operating results for the quarter ended June 30, 2010, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained under Item 2.02 in this Current Report on Form 8-K (including Exhibit 99.1) 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 Second Quarter 2010 Financial and Operating Results for the period ended June 30, 2010.

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: August 4, 2010
	By:	/s/ John R. Kline
		John R. Kline
		Senior Vice President and Chief Accounting Officer

3

EX-99.1

2Q10
Financial and operating results for the period ended June 30, 2010

AUGUST 4, 2010

Unless otherwise specified, comparisons in this presentation are between 2Q10 and 2Q09.

Exhibit 99.1

CNO Financial Group

2

Forward-Looking Statements

Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in these
materials relative to markets for CNO Financial Group, Inc.’s products and trends in CNO’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) our ability to continue to satisfy the financial ratio and balance
requirements and other covenants of our debt agreements; (ii) general economic, market and political conditions, including the performance and
fluctuations of the financial markets which may affect our ability to raise capital or refinance existing indebtedness and the cost of doing so; (iii)
our ability to generate sufficient liquidity to meet our debt service obligations and other cash needs; (iv) our ability to obtain adequate and timely
rate increases on our supplemental health products, including our long-term care business; (v) the receipt of any required regulatory approvals
for dividend and surplus debenture interest payments from our insurance subsidiaries; (vi) 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; (vii) changes in our assumptions related to the cost of policies produced or the value of policies in force at the effective
date; (viii) the recoverability of our deferred tax assets and the effect of potential ownership changes and tax rate changes on its value; (ix) 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; (x) changes in accounting principles and the interpretation thereof;
(xi) 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, (xii) performance and valuation of our investments, including the impact of
realized losses (including other-than-temporary impairment charges); (xiii) our ability to identify products and markets in which we cancompete
effectively against competitors with greater market share, higher ratings, greater financial resources and stronger brand recognition; (xiv) the
ultimate outcome of lawsuits filed against us and other legal and regulatory proceedings to which we are subject; (xv) our ability to complete the
remediation ofthe material weakness in internal controls over our actuarial reporting process and to maintain effective controls over financial
reporting; (xvi) our ability to continue to recruit and retain productive agents and distribution partners and customer response to new products,
distribution channels and marketing initiatives; (xvii) our ability to achieve eventual upgrades of the financial strength ratings of CNO and our
insurance company subsidiaries as well as the impact of rating downgrades on our business and our ability to access capital; (xviii) the risk
factors or uncertainties listed from time to time in our filings with the Securities and Exchange Commission; (xix) 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 financial services affecting (among other things) bank sales and underwriting of insurance products,
regulation of the sale, underwriting and pricing of products, and health care regulation affecting health insurance products; and (xx) changes in
the Federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products. 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 written or oral forward-looking statements attributable to us are expressly qualified in their
entirety by the foregoing cautionary statement. 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.

CNO Financial Group

3

Non-GAAP Measures

This presentation contains the following financial measures that differ from the
comparable measures under Generally Accepted Accounting Principles (GAAP):
operating earnings measures; book value, excluding accumulated other comprehensive
income (loss) per share; operating return measures; earnings before net realized
investment gains (losses) and corporate interest and taxes; debt to capital ratios,
excluding accumulated other comprehensive income (loss); and interest-adjusted benefit
ratios.Reconciliations between those non-GAAP measures and the comparable GAAP
measures are included in the Appendix, or on the page such measure is presented.

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

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

CNO Financial Group

4

CNO Financial Group

5

2Q10: Positive Momentum Continues

CNO

§Net operating income** of $44.9 million, up 10%

–16 cents per diluted share, reflecting dilution from issuance of shares
of common stock and convertible debentures

§Core sales* of $95.3 million, up 5%

§Asset values increased: AOCI of $319 million at 6/30/10 vs. AOCL of
$(264) million at 12/31/09

§Consolidated RBC at 318%

§Holding company liquidity stable at $130 million

§Book value per diluted share: $15.39, up 2% since 12/31/09

*Excludes PFFS and PDP.

**Management believes that an analysis of net income applicable to common stock before: (1) loss on extinguishment or
modification of debt, net of income taxes; and (2) net realized investment gains or losses, net of related amortization and income
taxes (“Net operating income,” a non-GAAP financial measure) is important to evaluate the financial performance of the company,
and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance
because loss on extinguishment of debt and realized investment gains or losses can be affected by events that are unrelated to the
company’s underlying fundamentals. The table on page 8 reconciles the non-GAAP measure to the corresponding GAAP measure.

CNO Financial Group

6

2Q10 Summary of Results

CNO

$64.0

7.6

29.9

(31.6)

69.9

(0.9)

(17.2)

$51.8

Pre-Tax

After Tax

EPS

($ millions, except per-share amounts)

$44.9

(0.6)

(11.2)

$33.1

$0.16

(0.00)

(0.04)

$0.12

*Management believes that an analysis of earnings before net realized investment gains (losses) and loss on extinguishment or modification of
debt (a non-GAAP financial measure) provides an alternative measure of the operating results of the company because such items are unrelated
to the company’s continuing operations. The table above provides a reconciliation to the corresponding GAAP measure.

Bankers Life

Colonial Penn

Conseco Insurance Group

Corporate operations and interest expense

Income before net realized investment losses*

Loss on extinguishment of debt

Net realized investment losses

Total

CNO Financial Group

7

Quarterly Earnings

CNO Consolidated

*Management believes that an analysis of earnings before net realized investment gains (losses), corporate interest, loss on extinguishment
or modification of debt and taxes (“EBIT,” a non-GAAP financial measure) provides a clearer comparison of the operating results of the
company quarter-over-quarter because it excludes: (1) corporate interest expense; (2) loss on extinguishment or modification of debt; and (3)
net realized investment gains (losses) that are unrelated to the company’s underlying fundamentals. The table above provides a reconciliation
of EBIT to net income.

($ millions)

CNO Financial Group

8

Operating ROE

CNO

Operating ROE*, Trailing 4 Quarters

*Operating return excludes gain (loss) on extinguishment or modification of debt, net realized investment gains (losses), valuation
allowance related to deferred tax assets and discontinued operations.Equity excludes accumulated other comprehensive income
(loss) and the value of net operating loss carryforwards.See Appendix for corresponding GAAP measure.

Average common shareholders’ equity,
excluding AOCI/L and net operating loss
carryforwards, trailing 4 quarters ($ mils): $2,574.1 $2,503.9 $2,551.1 $2,679.2 $2,808.3

CNO Financial Group

9

Operating EPS (Diluted)*

*Operating earnings per share exclude loss on extinguishment or modification of debt, net realized investment gains (losses) and
valuation allowance related to deferred tax assets.See Appendix for a reconciliation to the corresponding GAAP measure.

Weighted average diluted shares (in millions): 185.2 185.8 217.5 292.1 302.6

§65.9 million shares of common
stock and $293.0 million of
convertible debentures issued
over last three quarters

CNO Financial Group

10

Book Value

CNO

*See Appendix for a reconciliation to the corresponding GAAP measure.

Shareholders’ Equity (Excluding AOCI/L)

Accumulated Other Comprehensive

Income (Loss)

Total Shareholders’ Equity

Shares Outstanding

Book Value Per Share

Book Value Per Share (Excluding AOCI/L)

$3,461.9

(1,046.9)

$2,415.0

184.9

$13.06

$18.72

6/30/09

$3,479.7

(146.0)

$3,333.7

184.9

$18.03

$18.82

9/30/09

$3,796.7

(264.3)

$3,532.4

250.8

$14.09

$15.14

12/31/09

(in millions, except per-share amounts)

$3,823.1

(103.0)

$3,720.1

250.9

$14.83

$15.24

3/31/10

$3,864.0

318.8

$4,182.8

251.0

$16.66

$15.39

6/30/10

CNO Financial Group

11

Consolidated RBC Ratio*

CNO

*Risk-Based Capital (“RBC”) requirements provide a tool for insurance regulators to determine the levels of statutory capital and surplus an
insurer must maintain in relation to its insurance and investment risks. The RBC ratio is the ratio of the statutory consolidated adjusted capital
of our insurance subsidiaries to RBC.

§Steady at 318%

§2Q10 statutory earnings offset
impact of -8 points from modified
temporary MEAF relief

CNO Financial Group

12

2Q Summary

Bankers

§Earnings of $64.0 million, up 1%

–Higher spreads on Annuities

–Positive IBNR development in PFFS

–Stable LTC results

§Sales (NAP) up 3%

CNO Financial Group

13

Bankers

($ millions)

Quarterly NAP*

*PFFS and PDP sales are not comparable and are excluded from NAP in all periods; in addition, we no longer assume any of the risks on
PFFS contracts through reinsurance.

PFFS policies issued: 1.8 -0.2 -1.0 22.8 -0.4

PDP policies issued: 3.8 3.8 1.3 8.0 0.2

Policies issued and not included in NAP (net of chargebacks, in thousands):

Sales and Distribution Results

§NAP up 3%

–Increases in Life (+11%) and Med
Supp (+10%)

–Lower sales of LTC (-11%) and
Annuities (-5%)

CNO Financial Group

14

Quarterly Earnings

Bankers

($ millions)

Trailing 4 Quarter Operating Return on Equity: 11.6%

Management believes that an analysis of income before net realized investment gains (losses), net of related amortization (a non-GAAP
financial measure), is important to evaluate the financial performance of our business, and is a measure commonly used in the life insurance
industry.Management uses this measure to evaluate performance because realized gains or losses can be affected by events that are
unrelated to a company’s underlying fundamentals. The table on Page 7 reconciles the non-GAAP measure to the corresponding GAAP
measure.See Appendix for a reconciliation of the return on equity measure to the corresponding GAAP measure.

CNO Financial Group

15

2Q Summary

Colonial Penn

§Earnings of $7.6 million, down 31%

–Due to $3 million gain on termination of reinsurance pool in 2Q09

§Sales growth accelerating: NAP up 16%

–Building on 7% sales growth in 1Q10

–Lead generation momentum building following increased direct
response advertising

–Increased lead activity will drive return to pre-2009 sales levels

CNO Financial Group

16

Quarterly Earnings

Colonial Penn

($ millions)

Trailing 4 Quarter Operating Return on Equity: 12.0%

Management believes that an analysis of income before net realized investment gains (losses), net of related amortization (a non-GAAP
financial measure), is important to evaluate the financial performance of our business, and is a measure commonly used in the life
insurance industry.Management uses this measure to evaluate performance because realized gains or losses can be affected by events
that are unrelated to a company’s underlying fundamentals. The table on Page 7 reconciles the non-GAAP measure to the corresponding
GAAP measure.See Appendix for a reconciliation of the return on equity measure to the corresponding GAAP measure.

CNO Financial Group

17

2Q Summary

CIG

§Earnings of $29.9 million, up 41%

–Higher investment spreads due to bond prepayment income

–Improved annuity persistency

§Sales (NAP) of $19.1 million, up 6%

–Fourth consecutive quarter of positive sales comparisons

§Strong specified disease sales growth in both Independent and
PMA channels

§Strong recruiting results

CNO Financial Group

18

CIG

($ millions)

§Specified Disease sales up 19%

–PMA up 18%

–Independent up 23%

§Independent worksite sales up 32%

2Q09 NAP

2Q10 NAP

2Q10 Sales Results

CNO Financial Group

19

Quarterly Earnings

CIG

Management believes that an analysis of income (loss) before net realized investment gains (losses), net of related amortization (a non-
GAAP financial measure), is important to evaluate the financial performance of our business, and is a measure commonly used in the life
insurance industry.Management uses this measure to evaluate performance because realized gains or losses can be affected by events
that are unrelated to a company’s underlying fundamentals. The table on Page 7 reconciles the non-GAAP measure to the corresponding
GAAP measure.

($ millions)

CNO Financial Group

20

Impact of Low Interest Rate Environment

CNO

§Factored into 2010 outlook we provided to investors in
December 2009

§Positive impact on asset market values

§Additional yields in selective asset classes to offset interest
rate declines

§Assets and liabilities are closely matched

CNO Financial Group

21

Accounting for Costs Associated with
Acquiring Insurance Contracts (EITF 09-G)

CNO

Value of policies inforce (VOBA)

Cost of policies produced (DAC)

$1,077.3

$1,700.0

At June 30, 2010

(dollars in millions)

No impact

Approximately 35% of balance relates to non
- -commission type costs, which are being
evaluated as issues related to the adoption
are clarified

§Proposes modifications to types of costs that can be deferred

–Must be incremental or directly related to successful sales

–Certain costs previously deferred will be expensed immediately

§No impact on value of policies inforce

§CNO plans to adopt retrospectively in 2012

§Potential impact:

CNO Financial Group

22

Realized Gains/Losses Recognized

through Net Income

CNO

Gross gains

Gross losses

Losses due to recognition of other-than-tempor-

ary impairments recognized in earnings

Amortization adjustment to insurance intangibles

Net investment losses before tax

Income tax benefit

Net investment losses after tax

($ millions)

$83.6

(63.3)

(36.6)

3.1

(13.2)

0.0

$(13.2)

$99.5

(84.1)

(35.7)

1.4

(18.9)

0.0

$(18.9)

$110.5

(96.4)

(31.1)

(0.5)

(17.5)

15.0

$(2.5)

$50.9

(35.5)

(20.3)

0.1

(4.8)

1.7

$(3.1)

2Q10

2Q09

3Q09

4Q09

1Q10

$60.9

(49.7)

(27.9)

(0.5)

(17.2)

6.0

$(11.2)

CNO Financial Group

23

Unrealized Gain/Loss*

CNO

($ millions)

*Includes debt and equity securities classified as available for sale.Excludes investments from variable interest entities which we
consolidate under GAAP.

2Q09

3Q09

4Q09

1Q10

2Q10

CNO Financial Group

24

2Q10 Impairments

CNO

Corporates

Alt-A

CMBS

Prime Jumbos

Subprime

Commercial Mortgage Loans

Other

Total

($ millions)

Gross

Amounts

Amount Recognized
through Accumulated
Other Comprehensive
Income (Loss)

Amount Recognized
through Net Income*

$2.8

2.1

0.9

6.8

0.5

12.8

2.0

$27.9

$0.0

(2.1)

3.4

(1.1)

(0.5)

0.0

1.7

$1.4

$2.8

0.0

4.3
5.7

0.0

12.8

3.7

$29.3

*Includes impairments of $7.5 million recognized in earnings due to our intent to sell.

CNO Financial Group

25

Asset Allocation at 6/30/10*

CNO

($ millions)

*Excludes investments from variable interest entities which we consolidate under GAAP (the related liabilities are non-recourse to CNO).

CNO Financial Group

26

Investment Quality: Fixed Maturities*

CNO

Actively Managed Fixed Maturities by Rating at
6/30/10 (Market Value)

% of Bonds which are Investment Grade: 6/30/09 91% 9/30/09 93% 12/31/0
9 93% 3/31/10 93% 6/30/10 92%

*Excludes investments from variable interest entities which we consolidate under GAAP (the related liabilities are non-recourse to CNO).

AAA

10%

AA

8%

A

29%

BBB

45%

<BBB

8%

§92% investment grade:

CNO Financial Group

27

Alt-A at 6/30/10

CNO

AAA

AA

A

BBB

<BBB

Total

$4.4

$61.5

$45.3

$16.7

$88.2

$216.1

$4.2

$63.0

$42.4

$16.6

$106.1

$232.3

2.0%

28.5%

21.0%

7.7%

40.8%

100.0%

0.02%

0.27%

0.20%

0.07%

0.38%

0.94%

Market

Value (mil.)

Book

Value (mil.)

% of

Alt-A*

% of

Portfolio*

Rating

§0.9% of total invested assets

§Collateral performing better than overall Alt-A collateral universe in terms of delinquency and
accumulated loss trends, notwithstanding delinquencies and cumulative losses in excess of
original expectations

§All securities evaluated using market-consistent estimates of collateral performance

§Adequate credit support compared to expected cumulative losses

720

709

711

701

711

710

Avg.
FICO

10.9%

16.4%

10.6%

10.3%

9.3%

11.7%

Avg.

Support

6.4%

11.0%

11.9%

10.4%

22.6%

15.8%

Avg. 60+

Delinq.

*Market value.

($ millions)

0.3%

0.8%

0.8%

1.7%

2.6%

1.6%

Avg. Accum.

Loss

CNO Financial Group

28

Prime Jumbo at 6/30/10

CNO

AAA

AA

A

BBB

<BBB

Total

$142.6

$62.5

$95.4

$72.0

$415.7

$788.2

$148.0

$62.8

$108.4

$70.7

$454.6

$844.5

18.1%

7.9%

12.1%

9.1%

52.8%

100.0%

0.62%

0.27%

0.41%

0.31%

1.80%

3.41%

Market

Value (mil.)

Book

Value (mil.)

% of

Prime
Jumbo*

% of

Portfolio*

Rating

§3.4% of total invested assets

§All securities evaluated using market-consistent estimates of collateral performance

§Credit support remains substantial relative to anticipated cumulative losses

736

746

741

743

739

740

Avg.
FICO

6.5%

6.9%

11.7%

8.4%

6.8%

7.5%

Avg.

Support

2.8%

5.2%

6.1%

7.3%

8.8%

7.0%

Avg. 60+

Delinq.

*Market value.

($ millions)

0.08%

0.36%

0.52%

0.76%

0.83%

0.61%

Avg. Accum.

Loss

CNO Financial Group

29

CMBS at 6/30/10

CNO

(GAAP book value - $ millions)

$200.7

$135.9

$239.8

$86.3

$236.2

$71.3

$970.2

$1,008.6

$26.3

$10.1

$26.5

$29.3

$0.0

$0.0

$92.2

$85.7

$37.3

$10.6

$4.1

$0.0

$0.0

$0.0

$52.0

$44.6

$5.9

$17.3

$15.0

$10.6

$0.0

$0.0

$48.8

$30.0

$0.0

$0.0

$5.9

$7.5

$0.0

$0.0

$13.4

$5.0

Pre-2004

2004

2005

2006

2007

2009

Total BV

Total MV

AAA

AA

A

BBB

<BBB

CNO Financial Group

30

CMBS at 6/30/10

CNO

AAA

AA

A

BBB

<BBB

Total

$1,008.6

$85.7

$44.6

$30.0

$5.0

$1,173.9

$970.2

$92.2

$52.0

$48.8

$13.4

$1,176.6

85.9%

7.3%

3.8%

2.6%

0.4%

100.0%

4.37%

0.37%

0.19%

0.13%

0.02%

5.08%

Market

Value (mil.)

Book

Value (mil.)

% of

CMBS*

% of

Portfolio*

Rating

§5.1% of invested assets

§Collateral performing materially better than overall CMBS collateral universe in terms of delinquency
and cumulative loss

§All securities evaluated using market-consistent estimates of collateral performance

§Substantial credit support inherent in structures relative to expected cumulative losses

30.1%

19.9%

8.5%

7.8%

5.9%

27.8%

Avg.

Support

4.1%

2.7%

1.4%

2.8%

5.2%

3.8%

Avg. 60+

Del. & FCR

*% of market value

($ millions)

0.4%

0.6%

0.2%

0.0%

0.1%

0.4%

Avg. Cum.

Loss

CNO Financial Group

31

Commercial Mortgage Loans at 6/30/10

CNO

§Current LTV of approximately 63%

§Trailing debt service coverage ratio (DSCR) stable at approximately 1.46

§Two delinquent loans at 6/30/10, totaling $12.2 million

CNO Financial Group

32

Summary

CNO

§Core sales and lead generation continue to be strong

§Demographics are trending favorably

–First Boomers will become Medicare-eligible in 2011; in 10 years,
number of those 65 and older will increase by 50%

§Focus:

–Drive sales growth in all channels

–Improve results of underperforming blocks in new “Other CNO
Business” segment

CNO Financial Group

33

Questions and Answers

CNO Financial Group

34

Appendix

CNO Financial Group

35

Statutory Surplus ($ millions)

*Also applicable in 2010 for Debt to Capital ratio only.

**Excludes Accumulated Other Comprehensive Income (Loss), as defined by the senior credit facility.

$1,200

$1,100

Prior Amendment Level

New 2011 Level*

New 2012 Level

CNO

250%

200%

1.5x

2.0x

1.75x

225%

$1,300

Covenant Metrics

CNO Financial Group

36

2Q10 Liquidity

CNO

($ millions)

Cash Balance 3/31/10

Sources

Dividends from insurance subsidiary

Net Proceeds from New Convertible Debentures

Surplus Debenture Interest

Management and Investment Fees, Net

Total Sources

Uses

Interest

Debt Repayments:

Retirement of Old Convertible Debentures

Holding Company Expenses and Other

Capital Contributions

Total Uses

Cash Balance 6/30/10

$131.2

$30.0

49.4

12.1

25.6

$117.1

$22.7

52.5

13.2

30.0

$118.4

$129.9

CNO Financial Group

37

Net Investment Income

CNO

($ millions)

General Account Investment Income

Yield: 5.65% 5.62% 5.63% 5.76% 5.83%

§2Q10 portfolio yield increase due
primarily to sustained new money
rates exceeding portfolio rate

CNO Financial Group

38

Commercial Mortgage Loans at 6/30/10

CNO

Pacific

9.3%

Mountain

9.2%

West North
Central

11.7%

West South
Central

5.8%

East North
Central

21.5%

East South
Central

5.3%

New England

9.0%

Middle
Atlantic

7.5%

South
Atlantic

20.7%

CNO Financial Group

39

Commercial Mortgage Loans at 6/30/10

CNO

($ millions)

CNO Financial Group

40

Expenses

CNO

($ millions)

Adjusted Operating Expenses*

*Adjusted operating expenses exclude primarily acquisition costs, capitalization of software development costs, initial PFFS marketing
costs and contractual vacancy charges related to exiting the Merchandise Mart in Chicago.This measure is used by the Company to
evaluate its progress in reducing operating expenses.

§2010 expenses stable

CNO Financial Group

41

Collected Premiums

CNO

§Trailing 4 quarters down 15%

–Decline at Bankers due to
termination of PFFS
reinsurance contracts and
lower annuity sales, as
expected

–Consistent growth at
Colonial Penn

–Slight decline at CIG
primarily due to impact of
2009 reinsurance ceded to
Wilton Re and decline in
annuity sales

($ millions)

CP

CIG

Collected Premiums-Trailing 4 Quarters

2Q09

$4,494.9

3Q09

$4,423.1

4Q09

$4,114.8

BLC OTHER

1Q10

$3,937.2

BLC PFFS

2Q10

$3,819.6

CNO Financial Group

42

Segment Performance

Bankers

*Operating earnings exclude net realized gains (losses).See Appendix for corresponding GAAP measure of our consolidated results of
operations.

PTOI-Trailing 4 Quarters:$215.8$233.4$278.0$286.5$287.2

Revenues-Quarterly:$662.8$695.1$654.5$584.4$563.9

Pre-Tax Operating Income*

Revenues -Tr. 4 Quarters:$2,668.4$2,684.4$2,647.5$2,596.8$2,497.9

($ millions)

§Earnings of $64.0 million, up 1%

–Higher spreads on Annuities

–Stable LTC results

–Positive IBNR development in
PFFS

CNO Financial Group

43

Premiums - Medicare Supplement

Bankers

§First-year premiums up 39%

Medicare Supplement- First-Year Premiums

Med. Supp. First-Year Prems.-Tr. 4 Qtrs:$83.6$86.5$91.7$99.2$107.5

Med. Supp. Total Premiums-Quarterly:$155.2$168.9$173.8$176.6$168.8

Med. Supp. NAP-Quarterly:$19.2$19.9$56.8$19.4$21.0

Med. Supp. NAP-Trailing 4 Quarters:$82.1$85.4$114.3$115.3$117.1

($ millions)

CNO Financial Group

44

Premiums - Long-Term Care

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$30.0$22.1$17.7$18.3$19.1

Total Premiums-Quarterly:$151.9$154.3$149.5$149.5$146.6

Long-Term Care- First-Year Premiums*

NAP-Quarterly:$9.8$9.8$8.3$8.6$8.7

NAP-Trailing 4 Quarters:$36.6$35.0$35.4$36.5$35.4

*Includes $4.4 million in 2Q09, $6.6 million in 3Q09, $3.9 million in 4Q09, $5.0 million in 1Q10, and $3.5 million in 2Q10 of premiums
ceded under business reinsurance agreement.

2Q09

(Direct)

$9.1

3Q09

(Direct)

$9.5

4Q09

(Direct)

$9.8

1Q10

(Direct)

$9.8

2Q10

(Direct)

$9.0

§Net first-year premiums* up 17%,
reflecting reduction in new
business reinsurance

CNO Financial Group

45

Premiums - Life Insurance

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$75.9$79.8$82.6$86.0$91.4

Total Premiums-Quarterly:$55.3$63.2$61.4$46.5$52.1

Life - First-Year Premiums

NAP-Quarterly:$15.6$15.8$13.7$15.8$17.3

NAP-Trailing 4 Quarters:$52.7$55.4$57.7$60.9$62.6

SPWL

Non-

SPWL

2Q09

$19.4

$7.8

$11.6

3Q09

$23.4

$10.5

$12.9

4Q09

$23.0

$10.8

$12.2

1Q10

$20.2

$9.6

$10.6

2Q10

$24.8

$12.4

$12.4

§Fluctuations in first-year
premiums primarily reflect
variance in sales of single-
premium policies

CNO Financial Group

46

Premiums - Annuity

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$1,308.7$1,270.3$1,057.1$979.1$984.4

Total Premiums-Quarterly:$275.4$284.7$198.2$224.4$281.1

Annuity - First-Year Premiums

§First-year premiums up 2%

CNO Financial Group

47

Annuity Surrenders

Bankers

IA Surrenders

(annualized quarterly rate)

Non-IA Surrenders

(annualized quarterly rate)

§Surrenders: both indexed and non-
indexed annuity surrenders lower
than prior year

§Total account value:

–IAs - $1.8 billion

–Non-IAs - $4.8 billion

§Average account value:

–IAs - $1.7

–Non-IAs - $4.8

§Over 89% of our annuities are
subject to surrender charge:

–IAs - 95%

–Non-IAs - 86%

CNO Financial Group

48

Benefit Ratio* - PDP

Bankers

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§Down 7.3 points, impacted by
improved pricing and plan design
changes

CNO Financial Group

49

Benefit Ratio* - Medicare Supplement

Bankers

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§2Q10 impacted by higher
incurred claims vs. 2Q09

CNO Financial Group

50

Interest-Adjusted Benefit Ratio* - LTC

Bankers

*We calculate interest-adjusted benefit ratios by dividing insurance policy benefits less interest income on the accumulated assets
backing the insurance liabilities by insurance policy income.

Trailing 4 Quarter Avg.:67.6%68.2%67.9%69.6%71.0%

Qtrly. non-int. adjusted:103.2%108.3%104.3%114.4%113.0%

§Stable results overall

§2Q09 favorably impacted by
reserve releases related to rate
increases

CNO Financial Group

51

Segment Performance

Colonial Penn

*Operating earnings exclude net realized gains (losses).See Appendix for corresponding GAAP measure of our consolidated results of
operations.

PTOI-Trailing 4 Quarters:$29.3$30.2$29.4$29.6$26.2

Revenues-Quarterly:$62.7$58.1$57.8$58.1$59.1

Pre-Tax Operating Income*

Revenues -Tr. 4 Quarters:$234.0$235.1$235.7$236.7$233.1

($ millions)

§Earnings down 31%

–Due to $3 million gain on
termination of reinsurance
pool in 2009

CNO Financial Group

52

Premiums - Life Insurance

Colonial Penn

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$35.3$34.4$33.0$31.7$31.4

Total Premiums-Quarterly:$45.8$45.6$48.9$47.3$46.7

Life - First-Year Premiums

NAP-Quarterly:$10.6$10.6$8.4$13.1$12.2

NAP-Trailing 4 Quarters:$45.8$44.3$41.9$42.7$44.3

§Sales (NAP) up 16%

–Lead generation momentum
building following 2009 capital
limitations

–Increased lead activity will drive
return to pre-2009 sales levels

–Building on 7% sales growth in
1Q10

CNO Financial Group

53

Segment Performance

CIG

*Operating earnings exclude net realized gains (losses). See Appendix for corresponding GAAP measure of our consolidated results of
operations.

PTOI-Trailing 4 Quarters:$118.1$105.5$67.3$61.8$70.5

Revenues-Quarterly:$382.5$381.2$357.7$358.5$344.4

Pre-Tax Operating Income (Loss)*

Revenues-Tr. 4 Quarters:$1,515.9$1,525.3$1,500.6$1,479.9$1,441.8

($ millions)

§Earnings up 41%

–Higher investment spreads due to
bond prepayment income

–Improved annuity persistency

CNO Financial Group

54

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$7.9$8.0$7.2$6.9$6.1

Total Premiums-Quarterly:$44.4$46.9$43.7$40.7$38.7

Medicare Supplement - First-Year Premiums

NAP-Quarterly:$1.3$1.3$1.5$1.1$0.7

NAP-Trailing 4 Quarters:$8.3$7.8$5.8$5.2$4.6

§First-year collections down 42%

–Focus on core products (i.e.,
Specified Disease)

CNO Financial Group

55

Premiums - Specified Disease

CIG

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$41.5$43.6$45.4$47.7$49.7

Total Premiums-Quarterly:$95.1$96.2$99.0$99.6$100.2

Specified Disease - First-Year Premiums

NAP-Quarterly:$14.7$16.1$15.2$14.6$17.5

NAP-Trailing 4 Quarters:$51.0$54.3$57.5$60.6$63.4

§NAP up 19%

–Increased focus on Specified
Disease products

–Momentum increasing in Worksite
market

CNO Financial Group

56

Premiums - Annuity

CIG

($ millions)

First-Year Prems.-Tr. 4 Qtrs:$84.7$83.0$71.8$57.7$39.6

Total Premiums-Quarterly:$22.3$25.2$11.4$5.1$4.2

Annuity - First-Year Premiums

§First-year collections down 88%

–Increased focus on core products

CNO Financial Group

57

Interest-Adjusted Benefit Ratio* -

Specified Disease

Trailing 4 Quarter Avg.:42.6%41.2%46.0%47.8%48.4%

Qtrly. non-int. adjusted:83.3%76.6%82.0%82.3%83.2%

*We calculate interest-adjusted benefit ratios by dividing insurance policy benefits, less interest income on the accumulated assets backing
the insurance liabilities, by insurance policy income.

§Up 2.3 points vs. 2Q09

§Non-interest adjusted ratio flat
vs. 2Q09

CNO Financial Group

58

Information Related to Certain Non-GAAP Financial Measures

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

Operating earnings measures
Management believes that an analysis of net income applicable to common stock before loss on extinguishment or modification of
debt, net realized gains or losses and increases to our valuation allowance for deferred tax assets (“net operating income,” a non-
GAAP financial measure) is important to evaluate the performance of the Company and is a key measure commonly used in the
life insurance industry.Management uses this measure to evaluate performance because loss on extinguishment or modification
of debt, realized investment gains or losses and increases to our valuation allowance for deferred tax assets are unrelated to the
Company’s continuing operations.

CNO Financial Group

59

Information Related to Certain Non-GAAP Financial Measures

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

CNO Financial Group

60

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

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

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

61

Operating return measures

Management believes that an analysis of return before loss on extinguishment or modification of debt, net realized gains or losses, and
increases to our valuation allowance for deferred tax assets (“net operating income,” a non-GAAP financial measure) is important to evaluate the
performance of the Company and is a key measure commonly used in the life insurance industry.Management uses this measure to evaluate
performance because loss on extinguishment or modification of debt, realized investment gains or losses, and increases to our valuation
allowance for deferred tax assets are unrelated to the Company’s continued operations.

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

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

All references to segment operating return measures assume a 25% debt to total capital ratio at the segment level.Additionally, corporate
expenses have been allocated to the segments.

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

62

A reconciliation of return on common equity to operating return on common equity (excluding accumulated other comprehensive income (loss) and
net operating loss carryforwards) is as follows (dollars in millions, except per share amounts):

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

63

A reconciliation of pretax operating earnings (a non-GAAP financial measure) to segment operating income (loss) and consolidated net income
(loss) for the six months ended June 30, 2010, is as follows (dollars in millions):

(Continued on next page)

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

64

A reconciliation of common shareholders’ equity, excluding accumulated other comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure) to common shareholders’ equity at June 30, 2010, is as follows (dollars in millions):

(Continued on next page)

(Continued from previous page)

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

65

A reconciliation of average common shareholders’ equity, excluding accumulated other comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure) to average common shareholders’ equity at June 30, 2010, is as follows (dollars in millions):

(Continued from previous page)

Information Related to Certain Non-GAAP Financial Measures

CNO Financial Group

66

A reconciliation of the debt to capital ratio to debt to capital, excluding accumulated other comprehensive income (loss) is as follows (dollars in
millions):

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

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

Information Related to Certain Non-GAAP Financial Measures