Delaware | 001-31792 | 75-3108137 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
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. |
Item 9.01(d). | Financial Statements and Exhibits. |
CNO Financial Group, Inc. | |||
Date: February 12, 2019 | |||
By: | /s/ John R. Kline | ||
John R. Kline | |||
Senior Vice President and Chief Accounting Officer | |||
• | First-year collected premiums: $435.3 million, up 22% from 4Q17 |
• | Total collected premiums: $987.3 million, up 5% from 4Q17 |
• | New annualized premium ("NAP") (2) for life and health products: $89.6 million, up 5% from 4Q17 |
• | Over 25,000 third party Medicare Advantage policies sold, up 34% from 4Q17 |
• | Annuity collected premiums: $354.5 million, up 30% from 4Q17 |
• | Annuity account values: $8.9 billion, up 5% from 4Q17 |
• | Net income (loss): $28.3 million in 4Q18 compared to $(70.9) million in 4Q17 |
• | Net income (loss) per diluted share: 17 cents in 4Q18 compared to (42) cents in 4Q17 |
• | Net operating income (1) per diluted share: 36 cents in 4Q18 compared to 51 cents in 4Q17 |
• | Book value per common share was $20.78 at December 31, 2018 compared to $29.05 at December 31, 2017 |
• | Book value per diluted share, excluding accumulated other comprehensive income (loss) (3), was $19.52 at December 31, 2018 compared to $21.43 at December 31, 2017 |
• | Unrestricted cash and investments held by our holding company were $220 million at December 31, 2018 compared to $397 million at December 31, 2017 |
• | Common stock repurchases of $40.4 million and common stock dividends of $16.4 million in 4Q18 |
• | First-year collected premiums: $1,484.5 million, up 8% from 2017 |
• | Total collected premiums: $3,785.1 million, up 3% from 2017 |
• | NAP (2) for life and health products: $331.2 million, essentially flat compared to 2017 |
• | Annuity collected premiums: $1,164.5 million, up 13% from 2017 |
• | Net income (loss): $(315.0) million in 2018 compared to $175.6 million in 2017 |
• | Net income (loss) per diluted share: $(1.90) in 2018 compared to $1.02 in 2017 |
• | Net operating income (1) per diluted share: $1.83 in 2018 compared to $1.75 in 2017 |
• | Common stock repurchases of $100.9 million and common stock dividends of $64.8 million in 2018 |
• | Consolidated risk-based capital ratio was estimated at 393% at December 31, 2018 |
Three months ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions, except per share data) | |||||||
Adjusted EBIT (4): | |||||||
Bankers Life | $ | 78.0 | $ | 99.4 | |||
Washington National | 31.9 | 23.7 | |||||
Colonial Penn: | |||||||
Inforce business (5) | 17.8 | 17.5 | |||||
New business (5) | (13.0 | ) | (11.6 | ) | |||
Total Colonial Penn | 4.8 | 5.9 | |||||
Long-term care in run-off | .3 | 10.9 | |||||
Adjusted EBIT from business segments | 115.0 | 139.9 | |||||
Corporate Operations, excluding corporate interest expense | (29.7 | ) | (3.3 | ) | |||
Adjusted EBIT | 85.3 | 136.6 | |||||
Corporate interest expense | (12.1 | ) | (11.7 | ) | |||
Operating earnings before taxes | 73.2 | 124.9 | |||||
Tax expense on operating income | 13.4 | 39.1 | |||||
Net operating income (1) | 59.8 | 85.8 | |||||
Net realized investment losses from sales and impairments (net of related amortization) | (10.5 | ) | (2.1 | ) | |||
Net change in market value of investments recognized in earnings | (27.5 | ) | .1 | ||||
Fair value changes in embedded derivative liabilities (net of related amortization) | (.8 | ) | 5.5 | ||||
Fair value changes related to agent deferred compensation plan | .9 | 1.2 | |||||
Other | 1.8 | (4.2 | ) | ||||
Non-operating income (loss) before taxes | (36.1 | ) | .5 | ||||
Income tax expense (benefit): | |||||||
On non-operating income (loss) | (7.6 | ) | .1 | ||||
Valuation allowance for deferred tax assets and other tax items | 3.0 | 157.1 | |||||
Net non-operating income (loss) | (31.5 | ) | (156.7 | ) | |||
Net income (loss) | $ | 28.3 | $ | (70.9 | ) | ||
Per diluted share: | |||||||
Net operating income | $ | .36 | $ | .51 | |||
Net realized investment losses from sales and impairments (net of related amortization and taxes) | (.05 | ) | (.01 | ) | |||
Net change in market value of investments recognized in earnings (net of taxes) | (.13 | ) | — | ||||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | — | .02 | |||||
Fair value changes related to agent deferred compensation plan (net of taxes) | — | .01 | |||||
Valuation allowance for deferred tax assets and other tax items | (.02 | ) | (.94 | ) | |||
Other | .01 | (.01 | ) | ||||
Net income (loss) | $ | .17 | $ | (.42 | ) |
Three months ended | |||||||||||
December 31, 2018* | |||||||||||
Actual results | Significant items | Excluding significant items | |||||||||
Net Operating Income (1): | |||||||||||
Bankers Life | $ | 78.0 | $ | 3.1 | $ | 81.1 | |||||
Washington National | 31.9 | (2.2 | ) | 29.7 | |||||||
Colonial Penn | 4.8 | — | 4.8 | ||||||||
Long-term care in run-off | .3 | — | .3 | ||||||||
Adjusted EBIT from business segments | 115.0 | .9 | 115.9 | ||||||||
Corporate Operations, excluding corporate interest expense | (29.7 | ) | 14.4 | (15.3 | ) | ||||||
Adjusted EBIT (4) | 85.3 | 15.3 | 100.6 | ||||||||
Corporate interest expense | (12.1 | ) | — | (12.1 | ) | ||||||
Operating earnings before taxes | 73.2 | 15.3 | 88.5 | ||||||||
Tax expense on operating income | 13.4 | .2 | 13.6 | ||||||||
Net operating income | $ | 59.8 | $ | 15.1 | $ | 74.9 | |||||
Net operating income per diluted share | $ | .36 | $ | .09 | $ | .45 |
December 31, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Investments: | |||||||
Fixed maturities, available for sale, at fair value (amortized cost: 2018 - $18,107.8; 2017 - $20,702.1) | $ | 18,447.7 | $ | 22,910.9 | |||
Equity securities at fair value (cost: 2018 - $319.8; 2017 - $420.0) | 291.0 | 440.6 | |||||
Mortgage loans | 1,602.1 | 1,650.6 | |||||
Policy loans | 119.7 | 116.0 | |||||
Trading securities | 233.1 | 284.6 | |||||
Investments held by variable interest entities | 1,468.4 | 1,526.9 | |||||
Other invested assets | 833.4 | 924.5 | |||||
Total investments | 22,995.4 | 27,854.1 | |||||
Cash and cash equivalents - unrestricted | 594.2 | 578.4 | |||||
Cash and cash equivalents held by variable interest entities | 62.4 | 178.9 | |||||
Accrued investment income | 205.2 | 245.9 | |||||
Present value of future profits | 343.6 | 359.6 | |||||
Deferred acquisition costs | 1,322.5 | 1,026.8 | |||||
Reinsurance receivables | 4,925.4 | 2,175.2 | |||||
Income tax assets, net | 630.0 | 366.9 | |||||
Assets held in separate accounts | 4.4 | 5.0 | |||||
Other assets | 356.7 | 319.5 | |||||
Total assets | $ | 31,439.8 | $ | 33,110.3 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Liabilities for insurance products: | |||||||
Policyholder account balances | $ | 11,594.1 | $ | 11,220.7 | |||
Future policy benefits | 11,082.4 | 11,521.3 | |||||
Liability for policy and contract claims | 521.9 | 530.3 | |||||
Unearned and advanced premiums | 253.9 | 261.7 | |||||
Liabilities related to separate accounts | 4.4 | 5.0 | |||||
Other liabilities | 632.4 | 751.8 | |||||
Investment borrowings | 1,645.8 | 1,646.7 | |||||
Borrowings related to variable interest entities | 1,417.2 | 1,410.7 | |||||
Notes payable – direct corporate obligations | 916.8 | 914.6 | |||||
Total liabilities | 28,068.9 | 28,262.8 | |||||
Commitments and Contingencies | |||||||
Shareholders' equity: | |||||||
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2018 - 162,201,692; 2017 - 166,857,931) | 1.6 | 1.7 | |||||
Additional paid-in capital | 2,995.0 | 3,073.3 | |||||
Accumulated other comprehensive income | 177.7 | 1,212.1 | |||||
Retained earnings | 196.6 | 560.4 | |||||
Total shareholders' equity | 3,370.9 | 4,847.5 | |||||
Total liabilities and shareholders' equity | $ | 31,439.8 | $ | 33,110.3 |
Three months ended | Year ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues: | |||||||||||||||
Insurance policy income | $ | 616.5 | $ | 660.1 | $ | 2,593.1 | $ | 2,647.3 | |||||||
Net investment income: | |||||||||||||||
General account assets | 290.4 | 325.1 | 1,279.7 | 1,285.4 | |||||||||||
Policyholder and other special-purpose portfolios | (107.8 | ) | 94.1 | 26.5 | 265.9 | ||||||||||
Realized investment gains (losses): | |||||||||||||||
Net realized gains on the transfer of assets related to reinsurance transaction | — | — | 363.4 | — | |||||||||||
Other net realized investment gains (losses), excluding impairment losses | (37.8 | ) | 2.6 | (8.7 | ) | 77.4 | |||||||||
Other-than-temporary impairments: | |||||||||||||||
Total other-than-temporary impairment losses | (.5 | ) | (4.6 | ) | (2.6 | ) | (21.9 | ) | |||||||
Portion of other-than-temporary impairment losses recognized in accumulated other comprehensive income | — | — | — | (.9 | ) | ||||||||||
Net impairment losses recognized | (.5 | ) | (4.6 | ) | (2.6 | ) | (22.8 | ) | |||||||
Loss on dissolution of variable interest entities | — | — | — | (4.3 | ) | ||||||||||
Total realized gains (losses) | (38.3 | ) | (2.0 | ) | 352.1 | 50.3 | |||||||||
Fee revenue and other income | 17.4 | 12.8 | 62.1 | 48.3 | |||||||||||
Total revenues | 778.2 | 1,090.1 | 4,313.5 | 4,297.2 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance policy benefits | 426.9 | 661.1 | 2,278.6 | 2,602.7 | |||||||||||
Loss related to reinsurance transaction | — | — | 1,067.6 | — | |||||||||||
Interest expense | 39.7 | 31.4 | 149.8 | 123.7 | |||||||||||
Amortization | 69.0 | 58.0 | 264.3 | 239.3 | |||||||||||
Loss on extinguishment of borrowings related to variable interest entities | — | 4.0 | 3.8 | 9.5 | |||||||||||
Other operating costs and expenses | 205.5 | 210.2 | 814.2 | 841.5 | |||||||||||
Total benefits and expenses | 741.1 | 964.7 | 4,578.3 | 3,816.7 | |||||||||||
Income (loss) before income taxes | 37.1 | 125.4 | (264.8 | ) | 480.5 | ||||||||||
Income tax expense (benefit): | |||||||||||||||
Tax expense (benefit) on period income (loss) | 5.8 | 39.2 | (57.6 | ) | 162.8 | ||||||||||
Valuation allowance for deferred tax assets and other tax items | 3.0 | 157.1 | 107.8 | 142.1 | |||||||||||
Net income (loss) | $ | 28.3 | $ | (70.9 | ) | $ | (315.0 | ) | $ | 175.6 | |||||
Earnings per common share: | |||||||||||||||
Basic: | |||||||||||||||
Weighted average shares outstanding | 164,118,000 | 167,428,000 | 165,457,000 | 170,025,000 | |||||||||||
Net income (loss) | $ | .17 | $ | (.42 | ) | $ | (1.90 | ) | $ | 1.03 | |||||
Diluted: | |||||||||||||||
Weighted average shares outstanding | 165,890,000 | 167,428,000 | 165,457,000 | 172,144,000 | |||||||||||
Net income (loss) | $ | .17 | $ | (.42 | ) | $ | (1.90 | ) | $ | 1.02 |
Year ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
(Dollars in millions, except per share data) | |||||||
Adjusted EBIT (4): | |||||||
Bankers Life | $ | 340.6 | $ | 367.5 | |||
Washington National | 121.9 | 98.3 | |||||
Colonial Penn: | |||||||
Inforce business (5) | 65.8 | 68.8 | |||||
New business (5) | (51.0 | ) | (46.2 | ) | |||
Total Colonial Penn | 14.8 | 22.6 | |||||
Long-term care in run-off | 22.9 | 53.1 | |||||
Adjusted EBIT from business segments | 500.2 | 541.5 | |||||
Corporate Operations, excluding corporate interest expense | (71.0 | ) | (40.3 | ) | |||
Adjusted EBIT | 429.2 | 501.2 | |||||
Corporate interest expense | (48.0 | ) | (46.5 | ) | |||
Operating earnings before taxes | 381.2 | 454.7 | |||||
Tax expense on operating income | 78.1 | 153.8 | |||||
Net operating income (1) | 303.1 | 300.9 | |||||
Net realized investment gains from sales and impairments (net of related amortization) | 37.9 | 34.3 | |||||
Net change in market value of investments recognized in earnings | (48.8 | ) | 15.0 | ||||
Fair value changes in embedded derivative liabilities (net of related amortization) | 55.5 | (2.5 | ) | ||||
Fair value changes related to agent deferred compensation plan | 11.9 | (12.2 | ) | ||||
Loss related to reinsurance transaction | (704.2 | ) | — | ||||
Other | 1.7 | (8.8 | ) | ||||
Non-operating income (loss) before taxes | (646.0 | ) | 25.8 | ||||
Income tax expense (benefit): | |||||||
On non-operating income (loss) | (135.7 | ) | 9.0 | ||||
Valuation allowance for deferred tax assets and other tax items | 107.8 | 142.1 | |||||
Net non-operating loss | (618.1 | ) | (125.3 | ) | |||
Net income (loss) | $ | (315.0 | ) | $ | 175.6 | ||
Per diluted share: | |||||||
Net operating income | $ | 1.83 | $ | 1.75 | |||
Net realized investment gains from sales and impairments (net of related amortization and taxes) | .18 | .13 | |||||
Net change in market value of investments recognized in earnings (net of taxes) | (.23 | ) | .06 | ||||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | .27 | (.01 | ) | ||||
Fair value changes related to agent deferred compensation plan (net of taxes) | .06 | (.05 | ) | ||||
Loss related to reinsurance transaction (net of taxes) | (4.00 | ) | — | ||||
Valuation allowance for deferred tax assets and other tax items | (.02 | ) | (.83 | ) | |||
Other | .01 | (.03 | ) | ||||
Net income (loss) | $ | (1.90 | ) | $ | 1.02 |
Three months ended | |||||||||||
December 31, 2017* | |||||||||||
Actual results | Significant items | Excluding significant items | |||||||||
Net Operating Income (1): | |||||||||||
Bankers Life | $ | 99.4 | $ | (10.8 | ) | $ | 88.6 | ||||
Washington National | 23.7 | 1.0 | 24.7 | ||||||||
Colonial Penn | 5.9 | — | 5.9 | ||||||||
Long-term care in run-off | 10.9 | — | 10.9 | ||||||||
Adjusted EBIT from business segments | 139.9 | (9.8 | ) | 130.1 | |||||||
Corporate Operations, excluding corporate interest expense | (3.3 | ) | — | (3.3 | ) | ||||||
Adjusted EBIT (4) | 136.6 | (9.8 | ) | 126.8 | |||||||
Corporate interest expense | (11.7 | ) | — | (11.7 | ) | ||||||
Operating earnings before taxes | 124.9 | (9.8 | ) | 115.1 | |||||||
Tax expense on operating income | 39.1 | (3.4 | ) | 35.7 | |||||||
Net operating income | $ | 85.8 | $ | (6.4 | ) | $ | 79.4 | ||||
Net operating income per diluted share | $ | .51 | $ | (.04 | ) | $ | .47 |
Three months ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Bankers Life: | |||||||
Medicare supplement | $ | 15.8 | $ | 17.4 | |||
Long-term care | 4.3 | 3.9 | |||||
Supplemental health | 1.2 | 1.2 | |||||
Other health | .2 | .2 | |||||
Life | 30.2 | 32.9 | |||||
Annuity | 352.7 | 270.8 | |||||
Total | 404.4 | 326.4 | |||||
Washington National: | |||||||
Supplemental health and other health | 17.1 | 18.1 | |||||
Life | 1.7 | 1.2 | |||||
Annuity | .1 | — | |||||
Total | 18.9 | 19.3 | |||||
Colonial Penn: | |||||||
Life | 12.0 | 11.6 | |||||
Total | 12.0 | 11.6 | |||||
Total first-year collected premiums from segments | $ | 435.3 | $ | 357.3 |
Three months ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Bankers Life: | |||||||
Medicare supplement | $ | 189.8 | $ | 190.8 | |||
Long-term care | 63.6 | 63.7 | |||||
Supplemental health | 6.1 | 5.8 | |||||
Other health | 1.5 | 1.5 | |||||
Life | 116.8 | 117.0 | |||||
Annuity | 354.3 | 272.3 | |||||
Total | 732.1 | 651.1 | |||||
Washington National: | |||||||
Supplemental health and other health | 156.2 | 147.7 | |||||
Medicare supplement | 11.4 | 12.9 | |||||
Life | 8.5 | 7.7 | |||||
Annuity | .2 | .3 | |||||
Total | 176.3 | 168.6 | |||||
Colonial Penn: | |||||||
Life | 74.8 | 71.5 | |||||
Medicare supplement and other health | .4 | .5 | |||||
Total | 75.2 | 72.0 | |||||
Long-term care in run-off: | |||||||
Long-term care | 3.7 | 49.2 | |||||
Total | 3.7 | 49.2 | |||||
Total collected premiums from segments | $ | 987.3 | $ | 940.9 |
Three months ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Bankers Life: | |||||||
Medicare supplement | $ | 17.9 | $ | 20.0 | |||
Long-term care | 7.4 | 5.1 | |||||
Supplemental health and other health | 2.0 | 1.9 | |||||
Life | 14.9 | 16.5 | |||||
Total | 42.2 | 43.5 | |||||
Washington National: | |||||||
Supplemental health | 26.0 | 24.8 | |||||
Life | 4.1 | 2.3 | |||||
Total | 30.1 | 27.1 | |||||
Colonial Penn: | |||||||
Life | 17.3 | 14.8 | |||||
Total | 17.3 | 14.8 | |||||
Total new annualized premiums | $ | 89.6 | $ | 85.4 |
December 31, | |||||||
2018 | 2017 | ||||||
Bankers Life | $ | 8,600.7 | $ | 8,163.3 | |||
Washington National | 342.5 | 378.2 | |||||
Total | $ | 8,943.2 | $ | 8,541.5 |
Three months ended | |||||||
December 31, | |||||||
2018 | 2017 | ||||||
Net new client assets (a): | |||||||
Brokerage | $ | (1.1 | ) | $ | 15.2 | ||
Advisory | 13.2 | 39.1 | |||||
Total | $ | 12.1 | $ | 54.3 | |||
Client assets at end of period (b): | |||||||
Brokerage | $ | 794.1 | $ | 831.3 | |||
Advisory | 310.8 | 171.3 | |||||
Total | $ | 1,104.9 | $ | 1,002.6 |
(a) | Net new client assets includes total inflows of cash and securities into brokerage and managed advisory accounts less outflows. Inflows include interest and dividends and exclude changes due to market fluctuations. |
(b) | Client assets include cash and securities in brokerage and managed advisory accounts. |
Three months ended | |||||
December 31, | |||||
2018 | 2017 | ||||
Bankers Life: | |||||
Medicare supplement: | |||||
Earned premium | $190 million | $193 million | |||
Benefit ratio (7) | 76.0 | % | 70.7 | % | |
Long-term care: | |||||
Earned premium | $64 million | $64 million | |||
Benefit ratio (7) | 117.9 | % | 115.4 | % | |
Interest-adjusted benefit ratio (a non-GAAP measure) (8) | 74.7 | % | 73.3 | % | |
Washington National: | |||||
Medicare supplement: | |||||
Earned premium | $11 million | $13 million | |||
Benefit ratio (7) | 70.8 | % | 67.0 | % | |
Supplemental health: | |||||
Earned premium | $156 million | $149 million | |||
Benefit ratio (7) | 77.7 | % | 80.7 | % | |
Interest-adjusted benefit ratio (a non-GAAP measure) (8) | 53.8 | % | 56.6 | % | |
Long-term care in run-off: | |||||
Long-term care: | |||||
Earned premium | $4 million | $51 million | |||
Benefit ratio (7) | 303.2 | % | 170.4 | % | |
Interest-adjusted benefit ratio (a non-GAAP measure) (8) | 115.2 | % | 73.5 | % |
(1) | Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales and impairments, net of related amortization and taxes; (ii) net change in market value of investments recognized in earnings, net of 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 taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss related to reinsurance transaction, net of taxes; (vi) changes in the valuation allowance for deferred tax assets and other tax items; and (vii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes ("Net operating income," a non-GAAP financial measure) is important to evaluate the financial performance of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals. A reconciliation of Net operating income to Net income applicable to common stock is provided in the tables on pages 3 and 10. Additional information concerning this non-GAAP measure is included in our periodic filings with the Securities and Exchange Commission that are available in the "Investors - SEC Filings" section of CNO's website, www.CNOinc.com. |
(2) | Measured by new annualized premium for life and health products, which includes 10% of single premium whole life deposits and 100% of all other premiums (excluding annuities). Medicare Advantage sales are not comparable to other sales and are therefore excluded in all periods. |
(3) | Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock and performance units were vested and convertible securities were converted. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. The dilution from convertible securities is calculated assuming the securities were converted on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. |
(4) | Management believes that an analysis of earnings before net realized investment gains (losses) from sales and impairments, net change in market value of investments recognized in earnings, fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, fair value changes related to the agent deferred compensation plan, loss related to reinsurance transaction, other non-operating items, corporate interest expense and taxes ("Adjusted EBIT," a non-GAAP financial measure) provides a clearer comparison of the operating results of the company quarter-over-quarter because these items are unrelated to the company's underlying fundamentals. A reconciliation of Adjusted EBIT to Net Income applicable to common stock is provided in the tables on pages 3 and 10. |
(5) | Management believes that an analysis of Adjusted EBIT for Colonial Penn, separated between inforce and new business, provides increased clarity for this segment as the vast majority of the costs to generate new business in this segment are not deferrable and Adjusted EBIT will fluctuate based on management’s decisions on how much marketing costs to incur in each period. Adjusted EBIT from new business includes pre-tax revenues and expenses associated with new sales of our insurance products during the first year after the sale is completed. Adjusted EBIT from inforce 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 inforce business is based on estimates, which we believe are reasonable. |
(6) | 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. |
(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 (which is equal to the tabular interest on the related insurance liabilities). 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. |
Quarterly Financial Supplement - 4Q2018 | |||||
February 12, 2019 | |||||
Table of Contents | Page | |||
Consolidated balance sheet | 3 | |||
Consolidated statement of operations | 4 | |||
Operating results | 5 | |||
Computation of weighted average shares outstanding | 6 | |||
Analyses of income before taxes and selected data: | ||||
Bankers Life | 7-9 | |||
Washington National | 10-12 | |||
Colonial Penn | 13-14 | |||
Long-term care in run-off | 15 | |||
Corporate Operations | 15 | |||
Premiums collected on insurance products: | ||||
Bankers Life | 16 | |||
Washington National | 17 | |||
Colonial Penn | 18 | |||
Long-term care in run-off | 18 | |||
First-Year Collected Premiums and New Annualized Premiums | 19 | |||
Statutory information | 20 | |||
Notes | 21 |
CNO Financial Group, Inc. | ||||||||||||||||||||||||
Consolidated balance sheet (in millions) | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Fixed maturities, available for sale, at fair value | $ | 21,378.4 | $ | 22,071.4 | $ | 22,129.9 | $ | 22,910.9 | $ | 22,375.5 | $ | 22,080.9 | $ | 18,512.4 | $ | 18,447.7 | ||||||||
Equity securities at fair value | 516.6 | 551.4 | 642.1 | 440.6 | 498.7 | 366.1 | 335.5 | 291.0 | ||||||||||||||||
Mortgage loans | 1,788.5 | 1,734.7 | 1,667.8 | 1,650.6 | 1,601.2 | 1,649.4 | 1,680.6 | 1,602.1 | ||||||||||||||||
Policy loans | 112.4 | 112.1 | 114.6 | 116.0 | 116.0 | 116.0 | 117.4 | 119.7 | ||||||||||||||||
Trading securities | 341.1 | 308.0 | 294.4 | 284.6 | 289.6 | 254.2 | 239.0 | 233.1 | ||||||||||||||||
Investments held by variable interest entities | 1,514.5 | 1,309.6 | 1,382.5 | 1,526.9 | 1,583.9 | 1,543.3 | 1,550.5 | 1,468.4 | ||||||||||||||||
Other invested assets | 736.4 | 793.8 | 823.3 | 924.5 | 951.1 | 946.0 | 920.0 | 833.4 | ||||||||||||||||
Total investments | 26,387.9 | 26,881.0 | 27,054.6 | 27,854.1 | 27,416.0 | 26,955.9 | 23,355.4 | 22,995.4 | ||||||||||||||||
Cash and cash equivalents - unrestricted | 530.2 | 548.8 | 765.9 | 578.4 | 610.8 | 639.3 | 539.2 | 594.2 | ||||||||||||||||
Cash and cash equivalents held by variable interest entities | 354.5 | 391.1 | 105.9 | 178.9 | 115.6 | 106.4 | 56.4 | 62.4 | ||||||||||||||||
Accrued investment income | 258.2 | 240.9 | 268.0 | 245.9 | 268.1 | 252.5 | 224.7 | 205.2 | ||||||||||||||||
Present value of future profits | 388.8 | 377.8 | 368.5 | 359.6 | 350.4 | 345.5 | 351.6 | 343.6 | ||||||||||||||||
Deferred acquisition costs | 1,028.5 | 1,012.4 | 1,023.8 | 1,026.8 | 1,083.6 | 1,237.4 | 1,291.1 | 1,322.5 | ||||||||||||||||
Reinsurance receivables | 2,241.1 | 2,217.9 | 2,195.5 | 2,175.2 | 2,153.5 | 2,127.4 | 4,946.3 | 4,925.4 | ||||||||||||||||
Income tax assets, net | 697.8 | 594.2 | 567.4 | 366.9 | 450.4 | 484.8 | 577.8 | 630.0 | ||||||||||||||||
Assets held in separate accounts | 4.6 | 4.7 | 4.8 | 5.0 | 4.7 | 4.8 | 5.1 | 4.4 | ||||||||||||||||
Other assets | 535.8 | 573.0 | 350.2 | 319.5 | 356.0 | 318.2 | 299.6 | 356.7 | ||||||||||||||||
Total assets | $ | 32,427.4 | $ | 32,841.8 | $ | 32,704.6 | $ | 33,110.3 | $ | 32,809.1 | $ | 32,472.2 | $ | 31,647.2 | $ | 31,439.8 | ||||||||
Liabilities | ||||||||||||||||||||||||
Liabilities for insurance products: | ||||||||||||||||||||||||
Policyholder account balances | $ | 10,975.1 | $ | 11,037.3 | $ | 11,113.5 | $ | 11,220.7 | $ | 11,254.5 | $ | 11,349.7 | $ | 11,449.7 | $ | 11,594.1 | ||||||||
Future policy benefits | 11,057.2 | 11,271.7 | 11,374.1 | 11,521.3 | 11,312.2 | 11,268.5 | 11,140.5 | 11,082.4 | ||||||||||||||||
Liability for policy and contract claims | 498.1 | 506.3 | 519.5 | 530.3 | 509.1 | 499.5 | 513.4 | 521.9 | ||||||||||||||||
Unearned and advanced premiums | 292.8 | 282.5 | 262.4 | 261.7 | 270.3 | 260.5 | 249.2 | 253.9 | ||||||||||||||||
Liabilities related to separate accounts | 4.6 | 4.7 | 4.8 | 5.0 | 4.7 | 4.8 | 5.1 | 4.4 | ||||||||||||||||
Other liabilities | 798.0 | 866.5 | 789.1 | 751.8 | 869.0 | 654.2 | 689.5 | 632.4 | ||||||||||||||||
Investment borrowings | 1,647.2 | 1,647.0 | 1,646.9 | 1,646.7 | 1,646.5 | 1,646.3 | 1,646.1 | 1,645.8 | ||||||||||||||||
Borrowings related to variable interest entities | 1,634.2 | 1,532.6 | 1,198.2 | 1,410.7 | 1,410.5 | 1,418.1 | 1,417.6 | 1,417.2 | ||||||||||||||||
Notes payable - direct corporate obligations | 913.4 | 913.9 | 914.4 | 914.6 | 915.1 | 915.7 | 916.2 | 916.8 | ||||||||||||||||
Total liabilities | 27,820.6 | 28,062.5 | 27,822.9 | 28,262.8 | 28,191.9 | 28,017.3 | 28,027.3 | 28,068.9 | ||||||||||||||||
Shareholders' equity | ||||||||||||||||||||||||
Common stock | 1.7 | 1.7 | 1.7 | 1.7 | 1.6 | 1.6 | 1.6 | 1.6 | ||||||||||||||||
Additional paid-in capital | 3,177.1 | 3,116.7 | 3,094.5 | 3,073.3 | 3,075.6 | 3,021.9 | 3,030.0 | 2,995.0 | ||||||||||||||||
Retained earnings | 698.4 | 766.4 | 851.9 | 560.4 | 645.7 | 731.2 | 184.8 | 196.6 | ||||||||||||||||
Total shareholders' equity before accumulated other comprehensive income | 3,877.2 | 3,884.8 | 3,948.1 | 3,635.4 | 3,722.9 | 3,754.7 | 3,216.4 | 3,193.2 | ||||||||||||||||
Accumulated other comprehensive income | 729.6 | 894.5 | 933.6 | 1,212.1 | 894.3 | 700.2 | 403.5 | 177.7 | ||||||||||||||||
Total shareholders' equity | 4,606.8 | 4,779.3 | 4,881.7 | 4,847.5 | 4,617.2 | 4,454.9 | 3,619.9 | 3,370.9 | ||||||||||||||||
Total liabilities and shareholders' equity | $ | 32,427.4 | $ | 32,841.8 | $ | 32,704.6 | $ | 33,110.3 | $ | 32,809.1 | $ | 32,472.2 | $ | 31,647.2 | $ | 31,439.8 | ||||||||
Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | |||||||||||||||||
Book value per common share | $ | 26.77 | $ | 28.28 | $ | 29.10 | $ | 29.05 | $ | 27.59 | $ | 27.09 | $ | 21.99 | $ | 20.78 | ||||||||
Book value per common share, excluding accumulated other comprehensive income (1) (2) | $ | 22.53 | $ | 22.98 | $ | 23.53 | $ | 21.79 | $ | 22.25 | $ | 22.83 | $ | 19.54 | $ | 19.69 | ||||||||
Book value per diluted share (1) (3) | $ | 22.31 | $ | 22.74 | $ | 23.19 | $ | 21.43 | $ | 21.94 | $ | 22.62 | $ | 19.28 | $ | 19.52 | ||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Consolidated statement of operations (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Insurance policy income | $ | 663.8 | $ | 664.1 | $ | 659.3 | $ | 660.1 | $ | 2,647.3 | $ | 659.9 | $ | 659.8 | $ | 656.9 | $ | 616.5 | $ | 2,593.1 | ||||||||||
Net investment income: | ||||||||||||||||||||||||||||||
General account assets | 312.0 | 322.4 | 325.9 | 325.1 | 1,285.4 | 329.1 | 328.2 | 332.0 | 290.4 | 1,279.7 | ||||||||||||||||||||
Policyholder and other special-purpose portfolios | 75.2 | 43.9 | 52.7 | 94.1 | 265.9 | 12.8 | 35.7 | 85.8 | (107.8 | ) | 26.5 | |||||||||||||||||||
Realized investment gains (losses): | ||||||||||||||||||||||||||||||
Net realized gains on the transfer of assets related to reinsurance transaction | — | — | — | — | — | — | — | 363.4 | — | 363.4 | ||||||||||||||||||||
Other net realized investment gains (losses), excluding impairment losses | 16.3 | 24.0 | 34.5 | 2.6 | 77.4 | (15.2 | ) | 11.0 | 33.3 | (37.8 | ) | (8.7 | ) | |||||||||||||||||
Other-than-temporary impairments: | ||||||||||||||||||||||||||||||
Total other-than-temporary impairment losses | (8.4 | ) | (4.2 | ) | (4.7 | ) | (4.6 | ) | (21.9 | ) | — | — | (2.1 | ) | (0.5 | ) | (2.6 | ) | ||||||||||||
Change in other-than-temporary impairment losses recognized in accumulated other comprehensive income | — | (0.9 | ) | — | — | (0.9 | ) | — | — | — | — | — | ||||||||||||||||||
Net impairment losses recognized | (8.4 | ) | (5.1 | ) | (4.7 | ) | (4.6 | ) | (22.8 | ) | — | — | (2.1 | ) | (0.5 | ) | (2.6 | ) | ||||||||||||
Loss on dissolution of variable interest entities | — | (3.7 | ) | (0.6 | ) | — | (4.3 | ) | — | — | — | — | — | |||||||||||||||||
Total realized gains (losses) | 7.9 | 15.2 | 29.2 | (2.0 | ) | 50.3 | (15.2 | ) | 11.0 | 394.6 | (38.3 | ) | 352.1 | |||||||||||||||||
Fee revenue and other income | 11.8 | 11.5 | 12.2 | 12.8 | 48.3 | 21.2 | 11.6 | 11.9 | 17.4 | 62.1 | ||||||||||||||||||||
Total revenues | 1,070.7 | 1,057.1 | 1,079.3 | 1,090.1 | 4,297.2 | 1,007.8 | 1,046.3 | 1,481.2 | 778.2 | 4,313.5 | ||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||
Insurance policy benefits | 669.3 | 634.2 | 638.1 | 661.1 | 2,602.7 | 586.6 | 618.2 | 646.9 | 426.9 | 2,278.6 | ||||||||||||||||||||
Loss related to reinsurance transaction | — | — | — | — | — | — | — | 1,067.6 | — | 1,067.6 | ||||||||||||||||||||
Interest expense | 30.8 | 31.4 | 30.1 | 31.4 | 123.7 | 33.6 | 37.7 | 38.8 | 39.7 | 149.8 | ||||||||||||||||||||
Amortization | 63.5 | 59.6 | 58.2 | 58.0 | 239.3 | 71.9 | 61.0 | 62.4 | 69.0 | 264.3 | ||||||||||||||||||||
Loss on extinguishment of borrowings related to variable interest entities | — | — | 5.5 | 4.0 | 9.5 | — | 3.8 | — | — | 3.8 | ||||||||||||||||||||
Other operating costs and expenses | 210.4 | 203.4 | 217.5 | 210.2 | 841.5 | 207.6 | 195.8 | 205.3 | 205.5 | 814.2 | ||||||||||||||||||||
Total benefits and expenses | 974.0 | 928.6 | 949.4 | 964.7 | 3,816.7 | 899.7 | 916.5 | 2,021.0 | 741.1 | 4,578.3 | ||||||||||||||||||||
Income (loss) before income taxes | 96.7 | 128.5 | 129.9 | 125.4 | 480.5 | 108.1 | 129.8 | (539.8 | ) | 37.1 | (264.8 | ) | ||||||||||||||||||
Income tax expense (benefit) on period income (loss) | 34.4 | 45.1 | 44.1 | 39.2 | 162.8 | 23.8 | 27.6 | (114.8 | ) | 5.8 | (57.6 | ) | ||||||||||||||||||
Valuation allowance for deferred tax assets and other tax items | — | — | (15.0 | ) | 157.1 | 142.1 | — | — | 104.8 | 3.0 | 107.8 | |||||||||||||||||||
Net income (loss) | $ | 62.3 | $ | 83.4 | $ | 100.8 | $ | (70.9 | ) | $ | 175.6 | $ | 84.3 | $ | 102.2 | $ | (529.8 | ) | $ | 28.3 | $ | (315.0 | ) | |||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Operating results ($ in millions, except per share amounts) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Adjusted EBIT (4): | ||||||||||||||||||||||||||||||
Bankers Life | $ | 79.2 | $ | 93.6 | $ | 95.3 | $ | 99.4 | $ | 367.5 | $ | 77.5 | $ | 90.7 | $ | 94.4 | $ | 78.0 | $ | 340.6 | ||||||||||
Washington National | 23.5 | 23.6 | 27.5 | 23.7 | 98.3 | 34.3 | 25.4 | 30.3 | 31.9 | 121.9 | ||||||||||||||||||||
Colonial Penn | (0.3 | ) | 8.0 | 9.0 | 5.9 | 22.6 | (1.5 | ) | 5.4 | 6.1 | 4.8 | 14.8 | ||||||||||||||||||
Long-term care in run-off | 10.9 | 20.7 | 10.6 | 10.9 | 53.1 | 12.0 | 8.5 | 2.1 | 0.3 | 22.9 | ||||||||||||||||||||
Adjusted EBIT from business segments | 113.3 | 145.9 | 142.4 | 139.9 | 541.5 | 122.3 | 130.0 | 132.9 | 115.0 | 500.2 | ||||||||||||||||||||
Corporate operations, excluding corporate interest expense | (8.9 | ) | (13.2 | ) | (14.9 | ) | (3.3 | ) | (40.3 | ) | (15.5 | ) | (14.0 | ) | (11.8 | ) | (29.7 | ) | (71.0 | ) | ||||||||||
Adjusted EBIT | 104.4 | 132.7 | 127.5 | 136.6 | 501.2 | 106.8 | 116.0 | 121.1 | 85.3 | 429.2 | ||||||||||||||||||||
Corporate interest expense | (11.5 | ) | (11.6 | ) | (11.7 | ) | (11.7 | ) | (46.5 | ) | (11.9 | ) | (11.9 | ) | (12.1 | ) | (12.1 | ) | (48.0 | ) | ||||||||||
Operating earnings before taxes | 92.9 | 121.1 | 115.8 | 124.9 | 454.7 | 94.9 | 104.1 | 109.0 | 73.2 | 381.2 | ||||||||||||||||||||
Tax expense on operating income | 33.1 | 42.5 | 39.1 | 39.1 | 153.8 | 21.0 | 22.2 | 21.5 | 13.4 | 78.1 | ||||||||||||||||||||
Net operating income (5) | 59.8 | 78.6 | 76.7 | 85.8 | 300.9 | 73.9 | 81.9 | 87.5 | 59.8 | 303.1 | ||||||||||||||||||||
Net realized investment gains (losses) from sales and impairments (net of related amortization) | 4.1 | 6.9 | 25.4 | (2.1 | ) | 34.3 | 0.5 | 10.9 | 37.0 | (10.5 | ) | 37.9 | ||||||||||||||||||
Net change in market value of investments recognized in earnings | 3.8 | 8.0 | 3.1 | 0.1 | 15.0 | (15.7 | ) | (0.3 | ) | (5.3 | ) | (27.5 | ) | (48.8 | ) | |||||||||||||||
Fair value changes in embedded derivative liabilities (net of related amortization) | (4.4 | ) | (5.9 | ) | 2.3 | 5.5 | (2.5 | ) | 25.1 | 8.3 | 22.9 | (0.8 | ) | 55.5 | ||||||||||||||||
Fair value changes related to agent deferred compensation plan | — | — | (13.4 | ) | 1.2 | (12.2 | ) | — | 11.0 | — | 0.9 | 11.9 | ||||||||||||||||||
Loss related to reinsurance transaction | — | — | — | — | — | — | — | (704.2 | ) | — | (704.2 | ) | ||||||||||||||||||
Other | 0.3 | (1.6 | ) | (3.3 | ) | (4.2 | ) | (8.8 | ) | 3.3 | (4.2 | ) | 0.8 | 1.8 | 1.7 | |||||||||||||||
Non-operating income (loss) before taxes | 3.8 | 7.4 | 14.1 | 0.5 | 25.8 | 13.2 | 25.7 | (648.8 | ) | (36.1 | ) | $ | (646.0 | ) | ||||||||||||||||
Income tax expense (benefit): | ||||||||||||||||||||||||||||||
On non-operating income (loss) | 1.3 | 2.6 | 5.0 | 0.1 | 9.0 | 2.8 | 5.4 | (136.3 | ) | (7.6 | ) | $ | (135.7 | ) | ||||||||||||||||
Valuation allowance for deferred tax assets and other tax items | — | — | (15.0 | ) | 157.1 | 142.1 | — | — | 104.8 | 3.0 | 107.8 | |||||||||||||||||||
Net non-operating income (loss) | 2.5 | 4.8 | 24.1 | (156.7 | ) | (125.3 | ) | 10.4 | 20.3 | (617.3 | ) | (31.5 | ) | (618.1 | ) | |||||||||||||||
Net income (loss) | $ | 62.3 | $ | 83.4 | $ | 100.8 | $ | (70.9 | ) | $ | 175.6 | $ | 84.3 | $ | 102.2 | $ | (529.8 | ) | $ | 28.3 | $ | (315.0 | ) | |||||||
Per diluted share: | ||||||||||||||||||||||||||||||
Net operating income | $ | .34 | $ | .45 | $ | .45 | $ | .51 | $ | 1.75 | $ | .44 | $ | .49 | $ | .53 | $ | .36 | $ | 1.83 | ||||||||||
Net realized investment gains (losses) from sales and impairments (net of related amortization and taxes) | .02 | .03 | .10 | (.01 | ) | .13 | — | .05 | .18 | (.05 | ) | .18 | ||||||||||||||||||
Net change in market value of investments recognized in earnings (net of taxes) | .01 | .03 | .01 | — | .06 | (.07 | ) | — | (.03 | ) | (.13 | ) | (.23 | ) | ||||||||||||||||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | (.01 | ) | (.02 | ) | .01 | .02 | (.01 | ) | .12 | .04 | .11 | — | .27 | |||||||||||||||||
Fair value changes related to agent deferred compensation plan (net of taxes) | — | — | (.05 | ) | .01 | (.05 | ) | — | .05 | — | — | .06 | ||||||||||||||||||
Loss related to reinsurance transaction (net of taxes) | — | — | — | — | — | — | — | (4.01 | ) | — | (4.00 | ) | ||||||||||||||||||
Valuation allowance for deferred tax assets and other tax items | — | — | .09 | (.94 | ) | (.83 | ) | — | — | — | (.02 | ) | (.02 | ) | ||||||||||||||||
Other | — | (.01 | ) | (.02 | ) | (.01 | ) | (.03 | ) | .01 | (.02 | ) | — | .01 | .01 | |||||||||||||||
Net income (loss) | $ | .36 | $ | .48 | $ | .59 | $ | (.42 | ) | $ | 1.02 | $ | .50 | $ | .61 | $ | (3.22 | ) | $ | .17 | $ | (1.90 | ) | |||||||
CNO Financial Group, Inc. | ||||||||||||||||||||
Computation of weighted average shares outstanding | 1Q17 | 2Q17 | 3Q17 | 4Q17 (a) | 2017 | 1Q18 | 2Q18 | 3Q18 (b) | 4Q18 | 2018 (c) | ||||||||||
(000s) | ||||||||||||||||||||
Basic | ||||||||||||||||||||
Shares outstanding, beginning of period | 173,753.6 | 172,103.8 | 169,018.9 | 167,762.3 | 173,753.6 | 166,857.9 | 167,354.3 | 164,433.1 | 164,634.4 | 166,857.9 | ||||||||||
Weighted average shares issued during the period: | ||||||||||||||||||||
Shares repurchased | (513.6 | ) | (1,663.6 | ) | (341.4 | ) | (438.3 | ) | (4,293.0 | ) | — | (1,300.5 | ) | — | (549.2 | ) | (1,961.5 | ) | ||
Stock options exercised and vested restricted and performance stock | 213.3 | 140.1 | 7.1 | 104.2 | 642.5 | 307.6 | 66.7 | 119.7 | 35.6 | 813.8 | ||||||||||
Shares withheld for the payment of taxes on the vesting of restricted stock | (22.6 | ) | (23.8 | ) | (1.0 | ) | (0.5 | ) | (78.5 | ) | (105.9 | ) | (22.0 | ) | (1.4 | ) | (2.7 | ) | (253.3 | ) |
Weighted average basic shares outstanding during the period | 173,430.7 | 170,556.5 | 168,683.6 | 167,427.7 | 170,024.6 | 167,059.6 | 166,098.5 | 164,551.4 | 164,118.1 | 165,456.9 | ||||||||||
Basic shares outstanding, end of period | 172,103.8 | 169,018.9 | 167,762.3 | 166,857.9 | 166,857.9 | 167,354.3 | 164,433.1 | 164,634.4 | 162,201.7 | 162,201.7 | ||||||||||
Diluted | ||||||||||||||||||||
Weighted average basic shares outstanding | 173,430.7 | 170,556.5 | 168,683.6 | 167,427.7 | 170,024.6 | 167,059.6 | 166,098.5 | 164,551.4 | 164,118.1 | 165,456.9 | ||||||||||
Common stock equivalent shares related to: | ||||||||||||||||||||
Stock options, restricted stock and performance units | 1,634.7 | 1,795.0 | 2,298.1 | — | 2,119.6 | 2,617.8 | 1,879.5 | — | 1,771.7 | — | ||||||||||
Weighted average diluted shares outstanding during the period | 175,065.4 | 172,351.5 | 170,981.7 | 167,427.7 | 172,144.2 | 169,677.4 | 167,978.0 | 164,551.4 | 165,889.8 | 165,456.9 | ||||||||||
Diluted shares outstanding, end of period | 173,818.0 | 170,859.3 | 170,237.2 | 169,654.3 | 169,654.3 | 169,705.4 | 165,971.0 | 166,823.4 | 163,593.2 | 163,593.2 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Bankers Life | ||||||||||||||||||||||||||||||
Analysis of income before taxes (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Insurance policy income | $ | 369.1 | $ | 370.5 | $ | 366.8 | $ | 367.3 | $ | 1,473.7 | $ | 365.4 | $ | 366.1 | $ | 364.0 | $ | 363.0 | $ | 1,458.5 | ||||||||||
Net investment income (loss): | ||||||||||||||||||||||||||||||
General account invested assets | 184.7 | 190.5 | 194.2 | 195.3 | 764.7 | 196.3 | 200.7 | 200.9 | 206.5 | 804.4 | ||||||||||||||||||||
Fixed index products | 41.8 | 19.2 | 28.5 | 64.0 | 153.5 | (5.2 | ) | 12.5 | 56.0 | (104.8 | ) | (41.5 | ) | |||||||||||||||||
Fee revenue and other income | 10.6 | 10.6 | 11.3 | 11.6 | 44.1 | 19.6 | 10.6 | 10.7 | 11.0 | 51.9 | ||||||||||||||||||||
Total revenues | 606.2 | 590.8 | 600.8 | 638.2 | 2,436.0 | 576.1 | 589.9 | 631.6 | 475.7 | 2,273.3 | ||||||||||||||||||||
Insurance policy benefits | 290.2 | 289.1 | 289.6 | 282.7 | 1,151.6 | 302.2 | 294.3 | 290.9 | 287.9 | 1,175.3 | ||||||||||||||||||||
Amounts added to policyholder account balances: | ||||||||||||||||||||||||||||||
Cost of interest credited to policyholders | 26.5 | 26.5 | 26.3 | 25.7 | 105.0 | 24.9 | 24.6 | 24.4 | 24.2 | 98.1 | ||||||||||||||||||||
Cost of options to fund index credits, net of forfeitures | 14.9 | 16.2 | 16.0 | 16.6 | 63.7 | 17.1 | 20.3 | 19.4 | 24.6 | 81.4 | ||||||||||||||||||||
Market value changes credited to policyholders | 42.2 | 19.0 | 30.2 | 63.2 | 154.6 | (4.6 | ) | 11.2 | 55.8 | (105.3 | ) | (42.9 | ) | |||||||||||||||||
Amortization related to operations | 43.6 | 38.8 | 35.9 | 35.0 | 153.3 | 44.4 | 37.7 | 37.3 | 51.9 | 171.3 | ||||||||||||||||||||
Interest expense on investment borrowings | 4.2 | 4.8 | 5.3 | 5.5 | 19.8 | 6.1 | 7.5 | 7.9 | 8.2 | 29.7 | ||||||||||||||||||||
Other operating costs and expenses | 105.4 | 102.8 | 102.2 | 110.1 | 420.5 | 108.5 | 103.6 | 101.5 | 106.2 | 419.8 | ||||||||||||||||||||
Total benefits and expenses | 527.0 | 497.2 | 505.5 | 538.8 | 2,068.5 | 498.6 | 499.2 | 537.2 | 397.7 | 1,932.7 | ||||||||||||||||||||
Adjusted EBIT (4) | $ | 79.2 | $ | 93.6 | $ | 95.3 | $ | 99.4 | $ | 367.5 | $ | 77.5 | $ | 90.7 | $ | 94.4 | $ | 78.0 | $ | 340.6 | ||||||||||
Health underwriting margins (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Medicare supplement: | ||||||||||||||||||||||||||||||
Earned premium | $ | 196.0 | $ | 194.3 | $ | 194.5 | $ | 193.2 | $ | 778.0 | $ | 192.6 | $ | 192.3 | $ | 192.2 | $ | 190.5 | $ | 767.6 | ||||||||||
Benefit ratio | 70.0 | % | 70.4 | % | 72.0 | % | 70.7 | % | 70.8 | % | 73.3 | % | 73.1 | % | 75.6 | % | 76.0 | % | 74.5 | % | ||||||||||
Underwriting margin (earned premium less policy benefits) | $ | 58.8 | $ | 57.4 | $ | 54.5 | $ | 56.7 | $ | 227.4 | $ | 51.4 | $ | 51.7 | $ | 46.9 | $ | 45.8 | $ | 195.8 | ||||||||||
Long-term care: | ||||||||||||||||||||||||||||||
Earned premium | $ | 65.6 | $ | 65.1 | $ | 64.9 | $ | 64.6 | $ | 260.2 | $ | 64.2 | $ | 64.0 | $ | 63.7 | $ | 63.8 | $ | 255.7 | ||||||||||
Benefit ratio before interest income on reserves | 115.7 | % | 116.3 | % | 117.3 | % | 115.4 | % | 116.2 | % | 116.3 | % | 119.3 | % | 122.5 | % | 117.9 | % | 119.0 | % | ||||||||||
Interest-adjusted benefit ratio | 75.0 | % | 75.7 | % | 76.1 | % | 73.3 | % | 75.0 | % | 73.9 | % | 76.3 | % | 79.0 | % | 74.7 | % | 76.0 | % | ||||||||||
Underwriting margin (earned premium plus interest income on reserves less policy benefits) | $ | 16.4 | $ | 15.8 | $ | 15.5 | $ | 17.3 | $ | 65.0 | $ | 16.8 | $ | 15.1 | $ | 13.4 | $ | 16.2 | $ | 61.5 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Bankers Life | ||||||||||||||||||||||||||||||
Average liabilities for insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Fixed index annuities | $ | 4,871.4 | $ | 5,050.7 | $ | 5,222.5 | $ | 5,413.6 | $ | 5,139.6 | $ | 5,564.6 | $ | 5,693.6 | $ | 5,869.1 | $ | 6,028.3 | $ | 5,788.9 | ||||||||||
Fixed interest annuities | 3,012.3 | 2,934.9 | 2,860.5 | 2,790.1 | 2,899.5 | 2,713.7 | 2,630.3 | 2,548.5 | 2,467.7 | 2,590.1 | ||||||||||||||||||||
SPIAs and supplemental contracts: | ||||||||||||||||||||||||||||||
Mortality based | 164.9 | 162.2 | 159.2 | 155.8 | 160.5 | 152.4 | 148.3 | 145.9 | 144.9 | 147.9 | ||||||||||||||||||||
Deposit based | 151.6 | 149.8 | 148.1 | 146.7 | 149.0 | 144.9 | 144.9 | 144.3 | 142.5 | 144.1 | ||||||||||||||||||||
Health: | ||||||||||||||||||||||||||||||
Long-term care | 1,767.0 | 1,792.7 | 1,818.0 | 1,843.0 | 1,805.1 | 1,868.1 | 1,893.5 | 1,920.0 | 1,946.7 | 1,907.1 | ||||||||||||||||||||
Medicare supplement | 343.4 | 337.0 | 329.8 | 329.5 | 334.9 | 324.6 | 311.6 | 307.1 | 314.0 | 314.3 | ||||||||||||||||||||
Other health | 54.1 | 55.4 | 56.5 | 57.8 | 55.9 | 58.8 | 59.5 | 60.2 | 60.8 | 59.8 | ||||||||||||||||||||
Life: | ||||||||||||||||||||||||||||||
Interest sensitive | 757.3 | 772.1 | 785.6 | 797.8 | 778.2 | 808.5 | 821.7 | 837.8 | 848.3 | 829.1 | ||||||||||||||||||||
Non-interest sensitive | 1,062.2 | 1,081.0 | 1,099.1 | 1,117.2 | 1,089.9 | 1,134.7 | 1,151.3 | 1,168.1 | 1,185.0 | 1,159.8 | ||||||||||||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 12,184.2 | $ | 12,335.8 | $ | 12,479.3 | $ | 12,651.5 | $ | 12,412.6 | $ | 12,770.3 | $ | 12,854.7 | $ | 13,001.0 | $ | 13,138.2 | $ | 12,941.1 | ||||||||||
Annuities - account value rollforwards (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Fixed index annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 4,740.2 | $ | 4,896.3 | $ | 5,061.4 | $ | 5,222.7 | $ | 4,740.2 | $ | 5,410.7 | $ | 5,549.6 | $ | 5,740.1 | $ | 5,930.3 | $ | 5,410.7 | ||||||||||
Gross deposits | 235.3 | 247.2 | 222.6 | 259.6 | 964.7 | 235.4 | 273.9 | 260.2 | 342.8 | 1,112.3 | ||||||||||||||||||||
Withdrawals | (112.0 | ) | (114.1 | ) | (96.1 | ) | (122.9 | ) | (445.1 | ) | (138.5 | ) | (128.5 | ) | (122.5 | ) | (136.9 | ) | (526.4 | ) | ||||||||||
Returns reinvested | 32.8 | 32.0 | 34.8 | 51.3 | 150.9 | 42.0 | 45.1 | 52.5 | 40.4 | 180.0 | ||||||||||||||||||||
Balance as of the end of the period | $ | 4,896.3 | $ | 5,061.4 | $ | 5,222.7 | $ | 5,410.7 | $ | 5,410.7 | $ | 5,549.6 | $ | 5,740.1 | $ | 5,930.3 | $ | 6,176.6 | $ | 6,176.6 | ||||||||||
Fixed interest annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 3,048.3 | $ | 2,973.4 | $ | 2,893.3 | $ | 2,824.5 | $ | 3,048.3 | $ | 2,752.6 | $ | 2,671.6 | $ | 2,585.8 | $ | 2,507.9 | $ | 2,752.6 | ||||||||||
Gross deposits | 18.6 | 15.2 | 12.3 | 11.2 | 57.3 | 14.2 | 10.7 | 9.2 | 9.3 | 43.4 | ||||||||||||||||||||
Withdrawals | (112.9 | ) | (114.4 | ) | (100.0 | ) | (101.4 | ) | (428.7 | ) | (112.7 | ) | (113.6 | ) | (103.8 | ) | (109.5 | ) | (439.6 | ) | ||||||||||
Returns reinvested | 19.4 | 19.1 | 18.9 | 18.3 | 75.7 | 17.5 | 17.1 | 16.7 | 16.4 | 67.7 | ||||||||||||||||||||
Balance as of the end of the period | $ | 2,973.4 | $ | 2,893.3 | $ | 2,824.5 | $ | 2,752.6 | $ | 2,752.6 | $ | 2,671.6 | $ | 2,585.8 | $ | 2,507.9 | $ | 2,424.1 | $ | 2,424.1 | ||||||||||
Total annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 7,788.5 | $ | 7,869.7 | $ | 7,954.7 | $ | 8,047.2 | $ | 7,788.5 | $ | 8,163.3 | $ | 8,221.2 | $ | 8,325.9 | $ | 8,438.2 | $ | 8,163.3 | ||||||||||
Gross deposits | 253.9 | 262.4 | 234.9 | 270.8 | 1,022.0 | 249.6 | 284.6 | 269.4 | 352.1 | 1,155.7 | ||||||||||||||||||||
Withdrawals | (224.9 | ) | (228.5 | ) | (196.1 | ) | (224.3 | ) | (873.8 | ) | (251.2 | ) | (242.1 | ) | (226.3 | ) | (246.4 | ) | (966.0 | ) | ||||||||||
Returns reinvested | 52.2 | 51.1 | 53.7 | 69.6 | 226.6 | 59.5 | 62.2 | 69.2 | 56.8 | 247.7 | ||||||||||||||||||||
Balance as of the end of the period | $ | 7,869.7 | $ | 7,954.7 | $ | 8,047.2 | $ | 8,163.3 | $ | 8,163.3 | $ | 8,221.2 | $ | 8,325.9 | $ | 8,438.2 | $ | 8,600.7 | $ | 8,600.7 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Bankers Life | ||||||||||||||||||||||||||||||
Present value of future profits (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 95.5 | $ | 91.3 | $ | 87.3 | $ | 84.1 | $ | 95.5 | $ | 81.1 | $ | 77.8 | $ | 76.8 | $ | 88.8 | $ | 81.1 | ||||||||||
Amortization related to operations | (5.2 | ) | (4.8 | ) | (4.0 | ) | (4.6 | ) | (18.6 | ) | (4.7 | ) | (3.9 | ) | (3.4 | ) | (2.2 | ) | (14.2 | ) | ||||||||||
Amortization related to net realized investment (gains) losses | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale | 1.0 | 0.8 | 0.8 | 1.6 | 4.2 | 1.4 | 2.9 | 15.4 | (0.1 | ) | 19.6 | |||||||||||||||||||
Balance, end of period | $ | 91.3 | $ | 87.3 | $ | 84.1 | $ | 81.1 | $ | 81.1 | $ | 77.8 | $ | 76.8 | $ | 88.8 | $ | 86.5 | $ | 86.5 | ||||||||||
Deferred acquisition costs (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 646.2 | $ | 621.8 | $ | 604.1 | $ | 608.5 | $ | 646.2 | $ | 606.5 | $ | 651.6 | $ | 792.1 | $ | 839.4 | $ | 606.5 | ||||||||||
Deferred acquisition expenses | 41.7 | 43.0 | 38.1 | 34.5 | 157.3 | 40.2 | 46.2 | 43.1 | 55.9 | 185.4 | ||||||||||||||||||||
Amortization related to operations | (38.4 | ) | (34.0 | ) | (31.9 | ) | (30.4 | ) | (134.7 | ) | (39.7 | ) | (33.8 | ) | (33.9 | ) | (49.7 | ) | (157.1 | ) | ||||||||||
Amortization related to net realized investment (gains) losses | — | (0.3 | ) | (0.7 | ) | — | (1.0 | ) | — | (0.4 | ) | 0.4 | 0.3 | 0.3 | ||||||||||||||||
Amortization related to fair value changes in embedded derivative liabilities | 1.0 | 1.3 | (0.5 | ) | (1.1 | ) | 0.7 | (5.3 | ) | (1.8 | ) | (4.8 | ) | 0.2 | (11.7 | ) | ||||||||||||||
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale | (28.7 | ) | (27.7 | ) | (0.6 | ) | (5.0 | ) | (62.0 | ) | 49.9 | 130.3 | 42.5 | 17.1 | 239.8 | |||||||||||||||
Balance, end of period | $ | 621.8 | $ | 604.1 | $ | 608.5 | $ | 606.5 | $ | 606.5 | $ | 651.6 | $ | 792.1 | $ | 839.4 | $ | 863.2 | $ | 863.2 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Analysis of income before taxes (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Insurance policy income | $ | 167.1 | $ | 167.5 | $ | 167.4 | $ | 169.4 | $ | 671.4 | $ | 171.0 | $ | 171.0 | $ | 170.8 | $ | 174.8 | $ | 687.6 | ||||||||||
Net investment income (loss): | ||||||||||||||||||||||||||||||
General account invested assets | 63.4 | 64.8 | 65.5 | 63.8 | 257.5 | 65.4 | 63.4 | 66.9 | 65.4 | 261.1 | ||||||||||||||||||||
Fixed index products | 2.6 | 1.2 | 2.0 | 3.2 | 9.0 | (0.4 | ) | 0.9 | 3.0 | (5.0 | ) | (1.5 | ) | |||||||||||||||||
Trading account income related to policyholder accounts | 1.4 | 0.5 | 0.5 | 1.3 | 3.7 | 0.4 | (0.2 | ) | — | — | 0.2 | |||||||||||||||||||
Fee revenue and other income | 0.3 | 0.2 | 0.3 | 0.2 | 1.0 | 0.2 | 0.3 | 0.2 | 0.2 | 0.9 | ||||||||||||||||||||
Total revenues | 234.8 | 234.2 | 235.7 | 237.9 | 942.6 | 236.6 | 235.4 | 240.9 | 235.4 | 948.3 | ||||||||||||||||||||
Insurance policy benefits | 137.8 | 139.9 | 138.0 | 135.0 | 550.7 | 134.1 | 136.7 | 136.4 | 133.7 | 540.9 | ||||||||||||||||||||
Amounts added to policyholder account balances: | ||||||||||||||||||||||||||||||
Cost of interest credited to policyholders | 3.3 | 3.2 | 3.2 | 3.2 | 12.9 | 3.1 | 3.2 | 3.3 | 3.2 | 12.8 | ||||||||||||||||||||
Cost of options to fund index credits, net of forfeitures | 1.0 | 1.0 | 1.2 | 1.2 | 4.4 | 0.9 | 1.3 | 1.1 | 1.3 | 4.6 | ||||||||||||||||||||
Market value changes credited to policyholders | 4.6 | 1.2 | 2.3 | 5.0 | 13.1 | (0.4 | ) | 1.3 | 2.7 | (5.4 | ) | (1.8 | ) | |||||||||||||||||
Amortization related to operations | 14.3 | 15.3 | 14.3 | 14.9 | 58.8 | 14.5 | 14.4 | 14.0 | 12.9 | 55.8 | ||||||||||||||||||||
Interest expense on investment borrowings | 1.3 | 1.5 | 1.7 | 1.8 | 6.3 | 2.1 | 2.7 | 3.0 | 3.0 | 10.8 | ||||||||||||||||||||
Other operating costs and expenses | 49.0 | 48.5 | 47.5 | 53.1 | 198.1 | 48.0 | 50.4 | 50.1 | 54.8 | 203.3 | ||||||||||||||||||||
Total benefits and expenses | 211.3 | 210.6 | 208.2 | 214.2 | 844.3 | 202.3 | 210.0 | 210.6 | 203.5 | 826.4 | ||||||||||||||||||||
Adjusted EBIT (4) | $ | 23.5 | $ | 23.6 | $ | 27.5 | $ | 23.7 | $ | 98.3 | $ | 34.3 | $ | 25.4 | $ | 30.3 | $ | 31.9 | $ | 121.9 | ||||||||||
Health underwriting margins (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Supplemental health and other: | ||||||||||||||||||||||||||||||
Earned premium | $ | 145.6 | $ | 146.3 | $ | 147.2 | $ | 149.4 | $ | 588.5 | $ | 151.3 | $ | 151.8 | $ | 152.2 | $ | 156.0 | $ | 611.3 | ||||||||||
Benefit ratio before interest income on reserves | 84.6 | % | 84.5 | % | 83.2 | % | 80.7 | % | 83.2 | % | 78.3 | % | 80.7 | % | 81.3 | % | 77.7 | % | 79.5 | % | ||||||||||
Interest-adjusted benefit ratio | 60.6 | % | 60.4 | % | 59.0 | % | 56.6 | % | 59.1 | % | 54.4 | % | 56.6 | % | 56.9 | % | 53.8 | % | 55.4 | % | ||||||||||
Underwriting margin (earned premium plus interest income on reserves less policy benefits) | $ | 57.3 | $ | 57.9 | $ | 60.4 | $ | 64.8 | $ | 240.4 | $ | 69.0 | $ | 65.8 | $ | 65.6 | $ | 72.1 | $ | 272.5 | ||||||||||
Medicare supplement: | ||||||||||||||||||||||||||||||
Earned premium | $ | 14.3 | $ | 13.7 | $ | 13.3 | $ | 13.1 | $ | 54.4 | $ | 12.6 | $ | 12.1 | $ | 11.5 | $ | 11.4 | $ | 47.6 | ||||||||||
Benefit ratio | 66.8 | % | 70.4 | % | 68.1 | % | 67.0 | % | 68.1 | % | 66.5 | % | 74.0 | % | 64.3 | % | 70.8 | % | 68.9 | % | ||||||||||
Underwriting margin (earned premium less policy benefits) | $ | 4.8 | $ | 4.0 | $ | 4.2 | $ | 4.4 | $ | 17.4 | $ | 4.2 | $ | 3.2 | $ | 4.1 | $ | 3.3 | $ | 14.8 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Average liabilities for insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Fixed index annuities | $ | 326.1 | $ | 317.8 | $ | 309.9 | $ | 303.2 | $ | 314.2 | $ | 295.4 | $ | 286.5 | $ | 279.7 | $ | 271.6 | $ | 283.3 | ||||||||||
Fixed interest annuities | 100.8 | 99.2 | 96.6 | 95.1 | 97.9 | 93.8 | 91.4 | 88.9 | 87.0 | 90.3 | ||||||||||||||||||||
SPIAs and supplemental contracts: | ||||||||||||||||||||||||||||||
Mortality based | 233.5 | 232.3 | 231.8 | 230.7 | 232.1 | 226.9 | 221.2 | 216.6 | 213.3 | 219.5 | ||||||||||||||||||||
Deposit based | 271.9 | 269.4 | 267.8 | 269.0 | 269.5 | 269.8 | 270.3 | 271.3 | 271.0 | 270.6 | ||||||||||||||||||||
Separate Accounts | 4.6 | 4.6 | 4.8 | 4.9 | 4.7 | 4.8 | 4.8 | 5.0 | 4.8 | 4.8 | ||||||||||||||||||||
Health: | ||||||||||||||||||||||||||||||
Supplemental health | 2,680.2 | 2,715.8 | 2,749.9 | 2,782.0 | 2,732.0 | 2,814.7 | 2,849.8 | 2,885.5 | 2,920.0 | 2,867.5 | ||||||||||||||||||||
Medicare supplement | 26.9 | 25.4 | 23.9 | 23.0 | 24.8 | 22.1 | 21.0 | 20.1 | 19.6 | 20.7 | ||||||||||||||||||||
Other health | 13.8 | 13.8 | 13.4 | 13.0 | 13.5 | 12.5 | 11.9 | 11.5 | 11.2 | 11.8 | ||||||||||||||||||||
Life: | ||||||||||||||||||||||||||||||
Interest sensitive | 149.2 | 149.0 | 148.9 | 149.6 | 149.2 | 149.5 | 149.4 | 149.7 | 148.4 | 149.2 | ||||||||||||||||||||
Non-interest sensitive | 175.3 | 173.2 | 174.1 | 177.4 | 175.0 | 174.4 | 166.9 | 163.3 | 161.8 | 166.6 | ||||||||||||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 3,982.3 | $ | 4,000.5 | $ | 4,021.1 | $ | 4,047.9 | $ | 4,012.9 | $ | 4,063.9 | $ | 4,073.2 | $ | 4,091.6 | $ | 4,108.7 | $ | 4,084.3 | ||||||||||
Annuities - account value rollforwards (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Fixed index annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 313.4 | $ | 304.8 | $ | 296.2 | $ | 291.0 | $ | 313.4 | $ | 284.0 | $ | 276.1 | $ | 268.7 | $ | 264.1 | $ | 284.0 | ||||||||||
Gross deposits | 0.2 | 0.2 | 0.1 | 0.2 | 0.7 | 0.3 | 0.3 | 0.3 | 0.1 | 1.0 | ||||||||||||||||||||
Withdrawals | (11.6 | ) | (12.3 | ) | (9.0 | ) | (10.5 | ) | (43.4 | ) | (10.7 | ) | (10.9 | ) | (8.6 | ) | (8.8 | ) | (39.0 | ) | ||||||||||
Returns reinvested | 2.8 | 3.5 | 3.7 | 3.3 | 13.3 | 2.5 | 3.2 | 3.7 | 1.9 | 11.3 | ||||||||||||||||||||
Balance as of the end of the period | $ | 304.8 | $ | 296.2 | $ | 291.0 | $ | 284.0 | $ | 284.0 | $ | 276.1 | $ | 268.7 | $ | 264.1 | $ | 257.3 | $ | 257.3 | ||||||||||
Fixed interest annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 100.3 | $ | 99.7 | $ | 97.2 | $ | 94.7 | $ | 100.3 | $ | 94.2 | $ | 92.0 | $ | 89.5 | $ | 86.5 | $ | 94.2 | ||||||||||
Gross deposits | 0.1 | — | — | 0.1 | 0.2 | 0.1 | 0.1 | — | 0.1 | 0.3 | ||||||||||||||||||||
Withdrawals | (2.9 | ) | (3.7 | ) | (3.8 | ) | (2.6 | ) | (13.0 | ) | (3.4 | ) | (3.7 | ) | (3.8 | ) | (2.1 | ) | (13.0 | ) | ||||||||||
Returns reinvested | 2.2 | 1.2 | 1.3 | 2.0 | 6.7 | 1.1 | 1.1 | 0.8 | 0.7 | 3.7 | ||||||||||||||||||||
Balance as of the end of the period | $ | 99.7 | $ | 97.2 | $ | 94.7 | $ | 94.2 | $ | 94.2 | $ | 92.0 | $ | 89.5 | $ | 86.5 | $ | 85.2 | $ | 85.2 | ||||||||||
Total annuities | ||||||||||||||||||||||||||||||
Balance as of the beginning of the period | $ | 413.7 | $ | 404.5 | $ | 393.4 | $ | 385.7 | $ | 413.7 | $ | 378.2 | $ | 368.1 | $ | 358.2 | $ | 350.6 | $ | 378.2 | ||||||||||
Gross deposits | 0.3 | 0.2 | 0.1 | 0.3 | 0.9 | 0.4 | 0.4 | 0.3 | 0.2 | 1.3 | ||||||||||||||||||||
Withdrawals | (14.5 | ) | (16.0 | ) | (12.8 | ) | (13.1 | ) | (56.4 | ) | (14.1 | ) | (14.6 | ) | (12.4 | ) | (10.9 | ) | (52.0 | ) | ||||||||||
Returns reinvested | 5.0 | 4.7 | 5.0 | 5.3 | 20.0 | 3.6 | 4.3 | 4.5 | 2.6 | 15.0 | ||||||||||||||||||||
Balance as of the end of the period | $ | 404.5 | $ | 393.4 | $ | 385.7 | $ | 378.2 | $ | 378.2 | $ | 368.1 | $ | 358.2 | $ | 350.6 | $ | 342.5 | $ | 342.5 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Present value of future profits (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 266.8 | $ | 259.1 | $ | 253.2 | $ | 248.3 | $ | 266.8 | $ | 243.7 | $ | 238.9 | $ | 236.1 | $ | 231.4 | $ | 243.7 | ||||||||||
Amortization related to operations | (5.3 | ) | (5.7 | ) | (5.1 | ) | (4.8 | ) | (20.9 | ) | (5.2 | ) | (4.9 | ) | (4.7 | ) | (4.6 | ) | (19.4 | ) | ||||||||||
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale | (2.4 | ) | (0.2 | ) | 0.2 | 0.2 | (2.2 | ) | 0.4 | 2.1 | — | 0.1 | 2.6 | |||||||||||||||||
Balance, end of period | $ | 259.1 | $ | 253.2 | $ | 248.3 | $ | 243.7 | $ | 243.7 | $ | 238.9 | $ | 236.1 | $ | 231.4 | $ | 226.9 | $ | 226.9 | ||||||||||
Deferred acquisition costs (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 299.9 | $ | 304.1 | $ | 302.3 | $ | 307.0 | $ | 299.9 | $ | 310.8 | $ | 320.2 | $ | 331.6 | $ | 336.0 | $ | 310.8 | ||||||||||
Deferred acquisition expenses | 14.6 | 14.1 | 13.7 | 13.9 | 56.3 | 14.2 | 14.3 | 13.5 | 14.1 | 56.1 | ||||||||||||||||||||
Amortization related to operations | (9.0 | ) | (9.6 | ) | (9.2 | ) | (10.1 | ) | (37.9 | ) | (9.3 | ) | (9.5 | ) | (9.3 | ) | (8.3 | ) | (36.4 | ) | ||||||||||
Amortization related to net realized investment (gains) losses | — | — | — | — | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||
Amortization related to fair value changes in embedded derivative liabilities | 0.1 | — | (0.1 | ) | (0.3 | ) | (0.3 | ) | (0.5 | ) | (0.3 | ) | (0.5 | ) | 0.2 | (1.1 | ) | |||||||||||||
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale | (1.5 | ) | (6.3 | ) | 0.3 | 0.3 | (7.2 | ) | 5.0 | 6.9 | 0.6 | 0.7 | 13.2 | |||||||||||||||||
Balance, end of period | $ | 304.1 | $ | 302.3 | $ | 307.0 | $ | 310.8 | $ | 310.8 | $ | 320.2 | $ | 331.6 | $ | 336.0 | $ | 342.7 | $ | 342.7 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Colonial Penn | ||||||||||||||||||||||||||||||
Analysis of income (loss) before taxes (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Insurance policy income | $ | 73.0 | $ | 73.0 | $ | 73.1 | $ | 72.7 | $ | 291.8 | $ | 74.1 | $ | 74.5 | $ | 75.1 | $ | 74.9 | $ | 298.6 | ||||||||||
Net investment income on general account invested assets | 10.9 | 11.2 | 11.0 | 11.3 | 44.4 | 11.0 | 11.3 | 11.1 | 11.2 | 44.6 | ||||||||||||||||||||
Fee revenue and other income | 0.2 | 0.4 | 0.3 | 0.4 | 1.3 | 0.5 | 0.4 | 0.5 | 0.4 | 1.8 | ||||||||||||||||||||
Total revenues | 84.1 | 84.6 | 84.4 | 84.4 | 337.5 | 85.6 | 86.2 | 86.7 | 86.5 | 345.0 | ||||||||||||||||||||
Insurance policy benefits | 52.6 | 50.2 | 47.5 | 48.7 | 199.0 | 56.5 | 50.5 | 49.6 | 50.0 | 206.6 | ||||||||||||||||||||
Amounts added to annuity and interest-sensitive life product account balances | 0.1 | 0.2 | 0.2 | 0.1 | 0.6 | 0.2 | 0.1 | 0.2 | 0.1 | 0.6 | ||||||||||||||||||||
Amortization related to operations | 4.0 | 4.0 | 3.9 | 4.4 | 16.3 | 4.6 | 4.1 | 4.2 | 4.9 | 17.8 | ||||||||||||||||||||
Interest expense on investment borrowings | 0.2 | 0.2 | 0.3 | 0.2 | 0.9 | 0.3 | 0.4 | 0.3 | 0.4 | 1.4 | ||||||||||||||||||||
Other operating costs and expenses | 27.5 | 22.0 | 23.5 | 25.1 | 98.1 | 25.5 | 25.7 | 26.3 | 26.3 | 103.8 | ||||||||||||||||||||
Total benefits and expenses | 84.4 | 76.6 | 75.4 | 78.5 | 314.9 | 87.1 | 80.8 | 80.6 | 81.7 | 330.2 | ||||||||||||||||||||
Adjusted EBIT (4) | $ | (0.3 | ) | $ | 8.0 | $ | 9.0 | $ | 5.9 | $ | 22.6 | $ | (1.5 | ) | $ | 5.4 | $ | 6.1 | $ | 4.8 | $ | 14.8 | ||||||||
Average liabilities for insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
SPIAs - mortality based | $ | 72.6 | $ | 72.7 | $ | 73.6 | $ | 73.1 | $ | 73.0 | $ | 71.8 | $ | 70.1 | $ | 68.8 | $ | 67.7 | $ | 69.6 | ||||||||||
Health: | ||||||||||||||||||||||||||||||
Medicare supplement | 6.0 | 5.7 | 5.6 | 5.5 | 5.7 | 5.3 | 5.1 | 4.9 | 4.6 | 5.0 | ||||||||||||||||||||
Other health | 4.1 | 4.1 | 4.1 | 4.0 | 4.1 | 3.9 | 3.8 | 3.6 | 3.5 | 3.7 | ||||||||||||||||||||
Life: | ||||||||||||||||||||||||||||||
Interest sensitive | 15.8 | 15.6 | 15.4 | 15.3 | 15.5 | 15.2 | 15.0 | 14.7 | 13.8 | 14.7 | ||||||||||||||||||||
Non-interest sensitive | 708.0 | 714.9 | 720.1 | 726.9 | 717.5 | 732.7 | 736.0 | 741.7 | 748.9 | 739.8 | ||||||||||||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 806.5 | $ | 813.0 | $ | 818.8 | $ | 824.8 | $ | 815.8 | $ | 828.9 | $ | 830.0 | $ | 833.7 | $ | 838.5 | $ | 832.8 | ||||||||||
Present value of future profits (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 39.5 | $ | 38.4 | $ | 37.3 | $ | 36.1 | $ | 39.5 | $ | 34.8 | $ | 33.7 | $ | 32.6 | $ | 31.4 | $ | 34.8 | ||||||||||
Amortization related to operations | (1.1 | ) | (1.1 | ) | (1.2 | ) | (1.3 | ) | (4.7 | ) | (1.1 | ) | (1.1 | ) | (1.2 | ) | (1.2 | ) | (4.6 | ) | ||||||||||
Amounts related to changes in unrealized investment gains (losses) on fixed maturities, available for sale | — | — | — | — | — | — | — | — | — | $ | — | |||||||||||||||||||
Balance, end of period | $ | 38.4 | $ | 37.3 | $ | 36.1 | $ | 34.8 | $ | 34.8 | $ | 33.7 | $ | 32.6 | $ | 31.4 | $ | 30.2 | $ | 30.2 | ||||||||||
Deferred acquisition costs (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Balance, beginning of period | $ | 98.6 | $ | 102.6 | $ | 106.0 | $ | 108.3 | $ | 98.6 | $ | 109.5 | $ | 111.8 | $ | 113.7 | $ | 115.7 | $ | 109.5 | ||||||||||
Deferred acquisition expenses | 6.9 | 6.3 | 5.0 | 4.3 | 22.5 | 5.8 | 4.9 | 5.0 | 4.6 | 20.3 | ||||||||||||||||||||
Amortization related to operations | (2.9 | ) | (2.9 | ) | (2.7 | ) | (3.1 | ) | (11.6 | ) | (3.5 | ) | (3.0 | ) | (3.0 | ) | (3.7 | ) | (13.2 | ) | ||||||||||
Balance, end of period | $ | 102.6 | $ | 106.0 | $ | 108.3 | $ | 109.5 | $ | 109.5 | $ | 111.8 | $ | 113.7 | $ | 115.7 | $ | 116.6 | $ | 116.6 | ||||||||||
Colonial Penn Segment Adjusted EBIT | ||||||||||||||||||||||||||||||
Summarized by Inforce and New Business (6) | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Adjusted EBIT from Inforce Business | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Insurance policy income | $ | 59.6 | $ | 60.2 | $ | 61.0 | $ | 61.0 | $ | 241.8 | $ | 62.5 | $ | 62.9 | $ | 63.3 | $ | 62.9 | $ | 251.6 | ||||||||||
Net investment income | 10.9 | 11.2 | 11.0 | 11.3 | 44.4 | 11.0 | 11.3 | 11.1 | 11.2 | 44.6 | ||||||||||||||||||||
Fee revenue and other income | 0.2 | 0.4 | 0.3 | 0.4 | 1.3 | 0.5 | 0.4 | 0.5 | 0.4 | 1.8 | ||||||||||||||||||||
Total revenues | 70.7 | 71.8 | 72.3 | 72.7 | 287.5 | 74.0 | 74.6 | 74.9 | 74.5 | 298.0 | ||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||
Insurance policy benefits | 44.6 | 42.6 | 40.3 | 41.7 | 169.2 | 49.7 | 43.5 | 42.6 | 42.8 | 178.6 | ||||||||||||||||||||
Interest expense | 0.2 | 0.2 | 0.3 | 0.2 | 0.9 | 0.3 | 0.4 | 0.3 | 0.4 | 1.4 | ||||||||||||||||||||
Amortization | 3.8 | 3.8 | 3.7 | 4.3 | 15.6 | 4.4 | 4.0 | 4.0 | 4.8 | 17.2 | ||||||||||||||||||||
Other operating costs and expenses | 8.0 | 7.8 | 8.2 | 9.0 | 33.0 | 8.5 | 8.6 | 9.2 | 8.7 | 35.0 | ||||||||||||||||||||
Total benefits and expenses | 56.6 | 54.4 | 52.5 | 55.2 | 218.7 | 62.9 | 56.5 | 56.1 | 56.7 | 232.2 | ||||||||||||||||||||
Adjusted EBIT from Inforce Business | $ | 14.1 | $ | 17.4 | $ | 19.8 | $ | 17.5 | $ | 68.8 | $ | 11.1 | $ | 18.1 | $ | 18.8 | $ | 17.8 | $ | 65.8 | ||||||||||
Adjusted EBIT from New Business | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Insurance policy income | $ | 13.4 | $ | 12.8 | $ | 12.1 | $ | 11.7 | $ | 50.0 | $ | 11.6 | $ | 11.6 | $ | 11.8 | $ | 12.0 | $ | 47.0 | ||||||||||
Net investment income | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Fee revenue and other income | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total revenues | 13.4 | 12.8 | 12.1 | 11.7 | 50.0 | 11.6 | 11.6 | 11.8 | 12.0 | 47.0 | ||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||
Insurance policy benefits | 8.1 | 7.8 | 7.4 | 7.1 | 30.4 | 7.0 | 7.1 | 7.2 | 7.3 | 28.6 | ||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Amortization | 0.2 | 0.2 | 0.2 | 0.1 | 0.7 | 0.2 | 0.1 | 0.2 | 0.1 | 0.6 | ||||||||||||||||||||
Other operating costs and expenses | 19.5 | 14.2 | 15.3 | 16.1 | 65.1 | 17.0 | 17.1 | 17.1 | 17.6 | 68.8 | ||||||||||||||||||||
Total benefits and expenses | 27.8 | 22.2 | 22.9 | 23.3 | 96.2 | 24.2 | 24.3 | 24.5 | 25.0 | 98.0 | ||||||||||||||||||||
Adjusted EBIT from New Business | $ | (14.4 | ) | $ | (9.4 | ) | $ | (10.8 | ) | $ | (11.6 | ) | $ | (46.2 | ) | $ | (12.6 | ) | $ | (12.7 | ) | $ | (12.7 | ) | $ | (13.0 | ) | $ | (51.0 | ) |
Adjusted EBIT from Inforce and New Business | ||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Insurance policy income | $ | 73.0 | $ | 73.0 | $ | 73.1 | $ | 72.7 | $ | 291.8 | $ | 74.1 | $ | 74.5 | $ | 75.1 | $ | 74.9 | $ | 298.6 | ||||||||||
Net investment income | 10.9 | 11.2 | 11.0 | 11.3 | 44.4 | 11.0 | 11.3 | 11.1 | 11.2 | 44.6 | ||||||||||||||||||||
Fee revenue and other income | 0.2 | 0.4 | 0.3 | 0.4 | 1.3 | 0.5 | 0.4 | 0.5 | 0.4 | 1.8 | ||||||||||||||||||||
Total revenues | 84.1 | 84.6 | 84.4 | 84.4 | 337.5 | 85.6 | 86.2 | 86.7 | 86.5 | 345.0 | ||||||||||||||||||||
Benefits and expenses | ||||||||||||||||||||||||||||||
Insurance policy benefits | 52.7 | 50.4 | 47.7 | 48.8 | 199.6 | 56.7 | 50.6 | 49.8 | 50.1 | 207.2 | ||||||||||||||||||||
Interest expense | 0.2 | 0.2 | 0.3 | 0.2 | 0.9 | 0.3 | 0.4 | 0.3 | 0.4 | 1.4 | ||||||||||||||||||||
Amortization | 4.0 | 4.0 | 3.9 | 4.4 | 16.3 | 4.6 | 4.1 | 4.2 | 4.9 | 17.8 | ||||||||||||||||||||
Other operating costs and expenses | 27.5 | 22.0 | 23.5 | 25.1 | 98.1 | 25.5 | 25.7 | 26.3 | 26.3 | 103.8 | ||||||||||||||||||||
Total benefits and expenses | 84.4 | 76.6 | 75.4 | 78.5 | 314.9 | 87.1 | 80.8 | 80.6 | 81.7 | 330.2 | ||||||||||||||||||||
Adjusted EBIT from Inforce and New Business | $ | (0.3 | ) | $ | 8.0 | $ | 9.0 | $ | 5.9 | $ | 22.6 | $ | (1.5 | ) | $ | 5.4 | $ | 6.1 | $ | 4.8 | $ | 14.8 | ||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Long-term care in run-off | ||||||||||||||||||||||||||||||
Analysis of income (loss) before taxes (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Insurance policy income | $ | 54.6 | $ | 53.1 | $ | 52.0 | $ | 50.7 | $ | 210.4 | $ | 49.4 | $ | 48.2 | $ | 47.0 | $ | 3.8 | $ | 148.4 | ||||||||||
Net investment income on general account invested assets | 56.1 | 57.2 | 54.7 | 55.7 | 223.7 | 55.2 | 54.9 | 54.1 | 8.5 | 172.7 | ||||||||||||||||||||
Total revenues | 110.7 | 110.3 | 106.7 | 106.4 | 434.1 | 104.6 | 103.1 | 101.1 | 12.3 | 321.1 | ||||||||||||||||||||
Insurance policy benefits | 90.6 | 80.5 | 86.5 | 86.6 | 344.2 | 83.5 | 85.1 | 91.3 | 11.4 | 271.3 | ||||||||||||||||||||
Amortization related to operations | 2.7 | 2.5 | 2.8 | 2.3 | 10.3 | 2.6 | 2.3 | 2.1 | — | 7.0 | ||||||||||||||||||||
Other operating costs and expenses | 6.5 | 6.6 | 6.8 | 6.6 | 26.5 | 6.5 | 7.2 | 5.6 | 0.6 | 19.9 | ||||||||||||||||||||
Total benefits and expenses | 99.8 | 89.6 | 96.1 | 95.5 | 381.0 | 92.6 | 94.6 | 99.0 | 12.0 | 298.2 | ||||||||||||||||||||
Adjusted EBIT (4) | $ | 10.9 | $ | 20.7 | $ | 10.6 | $ | 10.9 | $ | 53.1 | $ | 12.0 | $ | 8.5 | $ | 2.1 | $ | 0.3 | $ | 22.9 | ||||||||||
Health underwriting margins (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Long-term care: | ||||||||||||||||||||||||||||||
Earned premium | $ | 54.6 | $ | 53.1 | $ | 52.0 | $ | 50.7 | $ | 210.4 | $ | 49.4 | $ | 48.2 | $ | 47.0 | $ | 3.8 | $ | 148.4 | ||||||||||
Benefit ratio before interest income on reserves | 165.9 | % | 151.7 | % | 166.6 | % | 170.4 | % | 163.6 | % | 168.9 | % | 176.7 | % | 194.1 | % | 303.2 | % | 182.8 | % | ||||||||||
Interest-adjusted benefit ratio | 74.2 | % | 57.7 | % | 71.1 | % | 73.5 | % | 69.1 | % | 69.5 | % | 75.2 | % | 90.4 | % | 115.2 | % | 79.1 | % | ||||||||||
Underwriting margin (earned premium plus interest income on reserves less policy benefits) | $ | 14.1 | $ | 22.4 | $ | 15.1 | $ | 13.3 | $ | 64.9 | $ | 15.1 | $ | 12.0 | $ | 4.4 | $ | (0.5 | ) | $ | 31.0 | |||||||||
Average liabilities for insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Health: | ||||||||||||||||||||||||||||||
Long-term care | $ | 3,659.8 | $ | 3,727.1 | $ | 3,800.0 | $ | 3,831.8 | $ | 3,754.7 | $ | 3,750.3 | $ | 3,599.3 | $ | 3,548.2 | $ | 532.9 | $ | 2,857.7 | ||||||||||
Total average liabilities for insurance products, net of reinsurance ceded | $ | 3,659.8 | $ | 3,727.1 | $ | 3,800.0 | $ | 3,831.8 | $ | 3,754.7 | $ | 3,750.3 | $ | 3,599.3 | $ | 3,548.2 | $ | 532.9 | $ | 2,857.7 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Corporate Operations | ||||||||||||||||||||||||||||||
Analysis of loss before taxes (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Net investment income (loss): | ||||||||||||||||||||||||||||||
General investment portfolio | $ | 0.9 | $ | 1.4 | $ | 1.4 | $ | 1.9 | $ | 5.6 | $ | 2.2 | $ | 1.3 | $ | 2.0 | $ | 1.1 | $ | 6.6 | ||||||||||
Other special-purpose portfolios | 9.5 | 6.0 | 5.6 | 8.8 | 29.9 | (1.0 | ) | 2.7 | 6.0 | (19.9 | ) | (12.2 | ) | |||||||||||||||||
Fee revenue and other income | 2.4 | 2.3 | 1.8 | 2.0 | 8.5 | 1.8 | 1.5 | 1.6 | 1.8 | 6.7 | ||||||||||||||||||||
Other operating costs and expenses | (21.7 | ) | (22.9 | ) | (23.7 | ) | (16.0 | ) | (84.3 | ) | (18.5 | ) | (19.5 | ) | (21.4 | ) | (12.7 | ) | (72.1 | ) | ||||||||||
Corporate operations, excluding corporate interest expense | (8.9 | ) | (13.2 | ) | (14.9 | ) | (3.3 | ) | (40.3 | ) | (15.5 | ) | (14.0 | ) | (11.8 | ) | (29.7 | ) | (71.0 | ) | ||||||||||
Interest expense on corporate debt | (11.5 | ) | (11.6 | ) | (11.7 | ) | (11.7 | ) | (46.5 | ) | (11.9 | ) | (11.9 | ) | (12.1 | ) | (12.1 | ) | (48.0 | ) | ||||||||||
Operating loss before taxes | $ | (20.4 | ) | $ | (24.8 | ) | $ | (26.6 | ) | $ | (15.0 | ) | $ | (86.8 | ) | $ | (27.4 | ) | $ | (25.9 | ) | $ | (23.9 | ) | $ | (41.8 | ) | $ | (119.0 | ) |
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Bankers Life | ||||||||||||||||||||||||||||||
Premiums collected on insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||
Fixed index (first-year) | $ | 235.3 | $ | 247.2 | $ | 222.6 | $ | 259.6 | $ | 964.7 | $ | 235.4 | $ | 273.9 | $ | 260.2 | $ | 342.5 | $ | 1,112.0 | ||||||||||
Other fixed interest (first-year) | 20.6 | 15.1 | 12.9 | 11.2 | 59.8 | 14.5 | 12.1 | 9.0 | 10.2 | 45.8 | ||||||||||||||||||||
Other fixed interest (renewal) | 1.6 | 2.0 | 1.0 | 1.5 | 6.1 | 1.5 | 1.0 | 1.3 | 1.6 | 5.4 | ||||||||||||||||||||
Subtotal - other fixed interest annuities | 22.2 | 17.1 | 13.9 | 12.7 | 65.9 | 16.0 | 13.1 | 10.3 | 11.8 | 51.2 | ||||||||||||||||||||
Total annuities | 257.5 | 264.3 | 236.5 | 272.3 | 1,030.6 | 251.4 | 287.0 | 270.5 | 354.3 | 1,163.2 | ||||||||||||||||||||
Health | ||||||||||||||||||||||||||||||
Medicare supplement (first-year) | 17.5 | 17.6 | 16.8 | 17.4 | 69.3 | 15.4 | 15.5 | 15.2 | 15.8 | 61.9 | ||||||||||||||||||||
Medicare supplement (renewal) | 174.2 | 162.1 | 160.4 | 173.4 | 670.1 | 172.9 | 161.3 | 164.2 | 174.0 | 672.4 | ||||||||||||||||||||
Subtotal - Medicare supplement | 191.7 | 179.7 | 177.2 | 190.8 | 739.4 | 188.3 | 176.8 | 179.4 | 189.8 | 734.3 | ||||||||||||||||||||
Long-term care (first-year) | 4.2 | 4.1 | 3.8 | 3.9 | 16.0 | 3.7 | 3.7 | 3.9 | 4.3 | 15.6 | ||||||||||||||||||||
Long-term care (renewal) | 62.1 | 60.4 | 58.7 | 59.8 | 241.0 | 61.1 | 60.0 | 59.1 | 59.3 | 239.5 | ||||||||||||||||||||
Subtotal - long-term care | 66.3 | 64.5 | 62.5 | 63.7 | 257.0 | 64.8 | 63.7 | 63.0 | 63.6 | 255.1 | ||||||||||||||||||||
Supplemental health (first-year) | 1.4 | 1.3 | 1.1 | 1.2 | 5.0 | 1.1 | 1.1 | 1.0 | 1.2 | 4.4 | ||||||||||||||||||||
Supplemental health (renewal) | 4.3 | 4.3 | 4.4 | 4.6 | 17.6 | 4.7 | 4.8 | 4.8 | 4.9 | 19.2 | ||||||||||||||||||||
Subtotal - supplemental health | 5.7 | 5.6 | 5.5 | 5.8 | 22.6 | 5.8 | 5.9 | 5.8 | 6.1 | 23.6 | ||||||||||||||||||||
Other health (first-year) | 0.2 | 0.2 | 0.2 | 0.2 | 0.8 | 0.2 | 0.2 | 0.2 | 0.2 | 0.8 | ||||||||||||||||||||
Other health (renewal) | 1.4 | 1.3 | 1.3 | 1.3 | 5.3 | 1.3 | 1.3 | 1.3 | 1.3 | 5.2 | ||||||||||||||||||||
Subtotal - other health | 1.6 | 1.5 | 1.5 | 1.5 | 6.1 | 1.5 | 1.5 | 1.5 | 1.5 | 6.0 | ||||||||||||||||||||
Total health | 265.3 | 251.3 | 246.7 | 261.8 | 1,025.1 | 260.4 | 247.9 | 249.7 | 261.0 | 1,019.0 | ||||||||||||||||||||
Life insurance | ||||||||||||||||||||||||||||||
Traditional (first-year) | 20.2 | 22.1 | 19.8 | 20.5 | 82.6 | 18.5 | 19.0 | 17.2 | 16.9 | 71.6 | ||||||||||||||||||||
Traditional (renewal) | 54.1 | 54.3 | 53.9 | 55.0 | 217.3 | 55.7 | 55.9 | 55.7 | 56.3 | 223.6 | ||||||||||||||||||||
Subtotal - traditional | 74.3 | 76.4 | 73.7 | 75.5 | 299.9 | 74.2 | 74.9 | 72.9 | 73.2 | 295.2 | ||||||||||||||||||||
Interest-sensitive (first-year) | 11.7 | 12.3 | 11.0 | 12.4 | 47.4 | 10.7 | 12.8 | 12.2 | 13.3 | 49.0 | ||||||||||||||||||||
Interest-sensitive (renewal) | 28.3 | 28.7 | 29.0 | 29.1 | 115.1 | 30.3 | 30.8 | 30.4 | 30.3 | 121.8 | ||||||||||||||||||||
Subtotal - interest-sensitive | 40.0 | 41.0 | 40.0 | 41.5 | 162.5 | 41.0 | 43.6 | 42.6 | 43.6 | 170.8 | ||||||||||||||||||||
Total life insurance | 114.3 | 117.4 | 113.7 | 117.0 | 462.4 | 115.2 | 118.5 | 115.5 | 116.8 | 466.0 | ||||||||||||||||||||
Collections on insurance products | ||||||||||||||||||||||||||||||
Total first-year premium collections on insurance products | 311.1 | 319.9 | 288.2 | 326.4 | 1,245.6 | 299.5 | 338.3 | 318.9 | 404.4 | 1,361.1 | ||||||||||||||||||||
Total renewal premium collections on insurance products | 326.0 | 313.1 | 308.7 | 324.7 | 1,272.5 | 327.5 | 315.1 | 316.8 | 327.7 | 1,287.1 | ||||||||||||||||||||
Total collections on insurance products | $ | 637.1 | $ | 633.0 | $ | 596.9 | $ | 651.1 | $ | 2,518.1 | $ | 627.0 | $ | 653.4 | $ | 635.7 | $ | 732.1 | $ | 2,648.2 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Premiums collected on insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Health | ||||||||||||||||||||||||||||||
Medicare supplement (renewal) | $ | 14.4 | $ | 12.6 | $ | 11.7 | $ | 12.9 | $ | 51.6 | $ | 12.5 | $ | 11.5 | $ | 10.9 | $ | 11.4 | $ | 46.3 | ||||||||||
Supplemental health (first-year) | 19.0 | 18.4 | 17.8 | 18.0 | 73.2 | 18.3 | 17.7 | 17.1 | 17.1 | 70.2 | ||||||||||||||||||||
Supplemental health (renewal) | 131.1 | 128.6 | 127.0 | 129.2 | 515.9 | 136.9 | 134.4 | 131.1 | 138.7 | 541.1 | ||||||||||||||||||||
Subtotal - supplemental health | 150.1 | 147.0 | 144.8 | 147.2 | 589.1 | 155.2 | 152.1 | 148.2 | 155.8 | 611.3 | ||||||||||||||||||||
Other health (first-year) | 0.1 | — | 0.1 | 0.1 | 0.3 | 0.1 | 0.1 | — | — | 0.2 | ||||||||||||||||||||
Other health (renewal) | 0.4 | 0.4 | 0.3 | 0.4 | 1.5 | 0.4 | 0.3 | 0.4 | 0.4 | 1.5 | ||||||||||||||||||||
Subtotal - other health | 0.5 | 0.4 | 0.4 | 0.5 | 1.8 | 0.5 | 0.4 | 0.4 | 0.4 | 1.7 | ||||||||||||||||||||
Total health | 165.0 | 160.0 | 156.9 | 160.6 | 642.5 | 168.2 | 164.0 | 159.5 | 167.6 | 659.3 | ||||||||||||||||||||
Life insurance | ||||||||||||||||||||||||||||||
Traditional (first-year) | 0.2 | 0.2 | 0.1 | 0.2 | 0.7 | 0.1 | 0.2 | 0.1 | 0.2 | 0.6 | ||||||||||||||||||||
Traditional (renewal) | 2.6 | 2.6 | 2.5 | 2.5 | 10.2 | 2.5 | 2.4 | 2.3 | 2.3 | 9.5 | ||||||||||||||||||||
Subtotal - traditional | 2.8 | 2.8 | 2.6 | 2.7 | 10.9 | 2.6 | 2.6 | 2.4 | 2.5 | 10.1 | ||||||||||||||||||||
Interest-sensitive (first-year) | 1.2 | 1.1 | 0.9 | 1.0 | 4.2 | 1.2 | 1.4 | 1.3 | 1.5 | 5.4 | ||||||||||||||||||||
Interest-sensitive (renewal) | 3.9 | 3.4 | 3.6 | 4.0 | 14.9 | 3.8 | 4.4 | 4.0 | 4.5 | 16.7 | ||||||||||||||||||||
Subtotal - interest-sensitive | 5.1 | 4.5 | 4.5 | 5.0 | 19.1 | 5.0 | 5.8 | 5.3 | 6.0 | 22.1 | ||||||||||||||||||||
Total life insurance | 7.9 | 7.3 | 7.1 | 7.7 | 30.0 | 7.6 | 8.4 | 7.7 | 8.5 | 32.2 | ||||||||||||||||||||
Annuities | ||||||||||||||||||||||||||||||
Fixed index (first-year) | — | — | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Fixed index (renewal) | 0.2 | 0.1 | 0.1 | 0.2 | 0.6 | 0.3 | 0.4 | 0.2 | 0.1 | 1.0 | ||||||||||||||||||||
Subtotal - fixed index annuities | 0.2 | 0.1 | 0.1 | 0.2 | 0.6 | 0.3 | 0.4 | 0.2 | 0.2 | 1.1 | ||||||||||||||||||||
Other fixed interest (renewal) | — | 0.1 | 0.1 | 0.1 | 0.3 | 0.1 | — | 0.1 | — | 0.2 | ||||||||||||||||||||
Total annuities | 0.2 | 0.2 | 0.2 | 0.3 | 0.9 | 0.4 | 0.4 | 0.3 | 0.2 | 1.3 | ||||||||||||||||||||
Collections on insurance products | ||||||||||||||||||||||||||||||
Total first-year premium collections on insurance products | 20.5 | 19.7 | 18.9 | 19.3 | 78.4 | 19.7 | 19.4 | 18.5 | 18.9 | 76.5 | ||||||||||||||||||||
Total renewal premium collections on insurance products | 152.6 | 147.8 | 145.3 | 149.3 | 595.0 | 156.5 | 153.4 | 149.0 | 157.4 | 616.3 | ||||||||||||||||||||
Total collections on insurance products | $ | 173.1 | $ | 167.5 | $ | 164.2 | $ | 168.6 | $ | 673.4 | $ | 176.2 | $ | 172.8 | $ | 167.5 | $ | 176.3 | $ | 692.8 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Colonial Penn | ||||||||||||||||||||||||||||||
Premiums collected on insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Life insurance | ||||||||||||||||||||||||||||||
Traditional (first-year) | $ | 13.7 | $ | 12.7 | $ | 12.1 | $ | 11.6 | $ | 50.1 | $ | 11.9 | $ | 11.3 | $ | 11.7 | $ | 12.0 | $ | 46.9 | ||||||||||
Traditional (renewal) | 60.2 | 59.2 | 60.0 | 59.9 | 239.3 | 62.9 | 62.0 | 61.8 | 62.8 | 249.5 | ||||||||||||||||||||
Subtotal - traditional | 73.9 | 71.9 | 72.1 | 71.5 | 289.4 | 74.8 | 73.3 | 73.5 | 74.8 | 296.4 | ||||||||||||||||||||
Interest-sensitive (all renewal) | 0.1 | — | 0.1 | — | 0.2 | — | 0.1 | 0.1 | — | 0.2 | ||||||||||||||||||||
Total life insurance | 74.0 | 71.9 | 72.2 | 71.5 | 289.6 | 74.8 | 73.4 | 73.6 | 74.8 | 296.6 | ||||||||||||||||||||
Health (all renewal) | ||||||||||||||||||||||||||||||
Medicare supplement | 0.5 | 0.5 | 0.4 | 0.5 | 1.9 | 0.4 | 0.4 | 0.4 | 0.3 | 1.5 | ||||||||||||||||||||
Other health | — | 0.1 | — | — | 0.1 | 0.1 | — | — | 0.1 | 0.2 | ||||||||||||||||||||
Total health | 0.5 | 0.6 | 0.4 | 0.5 | 2.0 | 0.5 | 0.4 | 0.4 | 0.4 | 1.7 | ||||||||||||||||||||
Collections on insurance products | ||||||||||||||||||||||||||||||
Total first-year premium collections on insurance products | 13.7 | 12.7 | 12.1 | 11.6 | 50.1 | 11.9 | 11.3 | 11.7 | 12.0 | 46.9 | ||||||||||||||||||||
Total renewal premium collections on insurance products | 60.8 | 59.8 | 60.5 | 60.4 | 241.5 | 63.4 | 62.5 | 62.3 | 63.2 | 251.4 | ||||||||||||||||||||
Total collections on insurance products | $ | 74.5 | $ | 72.5 | $ | 72.6 | $ | 72.0 | $ | 291.6 | $ | 75.3 | $ | 73.8 | $ | 74.0 | $ | 75.2 | $ | 298.3 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Long-term care in run-off | ||||||||||||||||||||||||||||||
Premiums collected on insurance products (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Long-term care (renewal) | $ | 55.3 | $ | 52.0 | $ | 48.7 | $ | 49.2 | $ | 205.2 | $ | 49.6 | $ | 47.6 | $ | 44.9 | $ | 3.7 | $ | 145.8 | ||||||||||
Total collections on insurance products | $ | 55.3 | $ | 52.0 | $ | 48.7 | $ | 49.2 | $ | 205.2 | $ | 49.6 | $ | 47.6 | $ | 44.9 | $ | 3.7 | $ | 145.8 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
First-year collected premiums (in millions) | ||||||||||||||||||||||||||||||
Bankers Life | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Medicare supplement | $ | 17.5 | $ | 17.6 | $ | 16.8 | $ | 17.4 | $ | 69.3 | $ | 15.4 | $ | 15.5 | $ | 15.2 | $ | 15.8 | $ | 61.9 | ||||||||||
Long-term care | 4.2 | 4.1 | 3.8 | 3.9 | 16.0 | 3.7 | 3.7 | 3.9 | 4.3 | 15.6 | ||||||||||||||||||||
Supplemental health and other health | 1.6 | 1.5 | 1.3 | 1.4 | 5.8 | 1.3 | 1.3 | 1.2 | 1.4 | 5.2 | ||||||||||||||||||||
Life | 31.9 | 34.4 | 30.8 | 32.9 | 130.0 | 29.2 | 31.8 | 29.4 | 30.2 | 120.6 | ||||||||||||||||||||
Annuity | 255.9 | 262.3 | 235.5 | 270.8 | 1,024.5 | 249.9 | 286.0 | 269.2 | 352.7 | 1,157.8 | ||||||||||||||||||||
Subtotal Bankers Life | 311.1 | 319.9 | 288.2 | 326.4 | 1,245.6 | 299.5 | 338.3 | 318.9 | 404.4 | 1,361.1 | ||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Supplemental health and other health | 19.1 | 18.4 | 17.9 | 18.1 | 73.5 | 18.4 | 17.8 | 17.1 | 17.1 | 70.4 | ||||||||||||||||||||
Life | 1.4 | 1.3 | 1.0 | 1.2 | 4.9 | 1.3 | 1.6 | 1.4 | 1.7 | 6.0 | ||||||||||||||||||||
Annuity | — | — | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||||
Subtotal Washington National | 20.5 | 19.7 | 18.9 | 19.3 | 78.4 | 19.7 | 19.4 | 18.5 | 18.9 | 76.5 | ||||||||||||||||||||
Colonial Penn | ||||||||||||||||||||||||||||||
Life | 13.7 | 12.7 | 12.1 | 11.6 | 50.1 | 11.9 | 11.3 | 11.7 | 12.0 | 46.9 | ||||||||||||||||||||
Total first-year collected premiums | $ | 345.3 | $ | 352.3 | $ | 319.2 | $ | 357.3 | $ | 1,374.1 | $ | 331.1 | $ | 369.0 | $ | 349.1 | $ | 435.3 | $ | 1,484.5 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Life and Health New Annualized Premiums ("NAP") (in millions) | ||||||||||||||||||||||||||||||
Bankers Life | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 2018 | ||||||||||||||||||||
Medicare supplement | $ | 16.1 | $ | 15.4 | $ | 14.4 | $ | 20.0 | $ | 65.9 | $ | 12.9 | $ | 14.3 | $ | 13.9 | $ | 17.9 | $ | 59.0 | ||||||||||
Long-term care | 5.7 | 5.2 | 4.6 | 5.1 | 20.6 | 5.0 | 5.3 | 6.5 | 7.4 | 24.2 | ||||||||||||||||||||
Supplemental health and other health | 1.7 | 1.4 | 1.3 | 1.9 | 6.3 | 1.3 | 1.4 | 1.1 | 2.0 | 5.8 | ||||||||||||||||||||
Life | 18.0 | 18.2 | 16.3 | 16.5 | 69.0 | 16.5 | 17.9 | 15.8 | 14.9 | 65.1 | ||||||||||||||||||||
Subtotal Bankers Life | 41.5 | 40.2 | 36.6 | 43.5 | 161.8 | 35.7 | 38.9 | 37.3 | 42.2 | 154.1 | ||||||||||||||||||||
Washington National | ||||||||||||||||||||||||||||||
Supplemental health | 22.9 | 23.9 | 22.8 | 24.8 | 94.4 | 22.0 | 23.9 | 22.8 | 26.0 | 94.7 | ||||||||||||||||||||
Life | 1.7 | 1.7 | 2.0 | 2.3 | 7.7 | 1.8 | 2.1 | 2.5 | 4.1 | 10.5 | ||||||||||||||||||||
Subtotal Washington National | 24.6 | 25.6 | 24.8 | 27.1 | 102.1 | 23.8 | 26.0 | 25.3 | 30.1 | 105.2 | ||||||||||||||||||||
Colonial Penn | ||||||||||||||||||||||||||||||
Life | 21.8 | 16.1 | 16.0 | 14.8 | 68.7 | 18.6 | 16.9 | 19.1 | 17.3 | 71.9 | ||||||||||||||||||||
Total NAP | $ | 87.9 | $ | 81.9 | $ | 77.4 | $ | 85.4 | $ | 332.6 | $ | 78.1 | $ | 81.8 | $ | 81.7 | $ | 89.6 | $ | 331.2 | ||||||||||
CNO Financial Group, Inc. | ||||||||||||||||||||||||||||||
Statutory information - consolidated basis (7) (in millions) | 1Q17 | 2Q17 | 3Q17 | 4Q17 | 2017 | 1Q18 | 2Q18 | 3Q18 | 4Q18 (a) | 2018 (a) | ||||||||||||||||||||
Net gain (loss) from operations before interest expense and federal income taxes | $ | 93.9 | $ | 93.8 | $ | 106.2 | $ | 117.4 | $ | 411.3 | $ | 65.1 | $ | 80.5 | $ | (491.1 | ) | $ | 21.4 | $ | (324.1 | ) | ||||||||
Interest expense on surplus debentures held by parent company | 12.0 | 12.2 | 20.4 | 12.2 | 56.8 | 12.0 | 12.2 | 21.7 | 12.3 | 58.2 | ||||||||||||||||||||
Net gain (loss) from operations before federal income taxes | 81.9 | 81.6 | 85.8 | 105.2 | 354.5 | 53.1 | 68.3 | (512.8 | ) | 9.1 | (382.3 | ) | ||||||||||||||||||
Federal income tax expense (benefit) | 11.3 | (13.8 | ) | (5.1 | ) | (0.1 | ) | (7.7 | ) | 1.6 | (2.5 | ) | (23.9 | ) | (20.4 | ) | (45.2 | ) | ||||||||||||
Net gain (loss) from operations before net realized capital gains (losses) | 70.6 | 95.4 | 90.9 | 105.3 | 362.2 | 51.5 | 70.8 | (488.9 | ) | 29.5 | (337.1 | ) | ||||||||||||||||||
Net realized capital gains (losses) | (8.6 | ) | (0.8 | ) | 0.6 | (1.1 | ) | (9.9 | ) | 3.7 | 2.7 | 41.3 | (3.9 | ) | 43.8 | |||||||||||||||
Net income (loss) | $ | 62.0 | $ | 94.6 | $ | 91.5 | $ | 104.2 | $ | 352.3 | $ | 55.2 | $ | 73.5 | $ | (447.6 | ) | $ | 25.6 | $ | (293.3 | ) | ||||||||
Capital and surplus | $ | 1,904.7 | $ | 1,968.0 | $ | 1,920.7 | $ | 1,904.4 | $ | 1,904.4 | $ | 1,918.9 | $ | 1,952.0 | $ | 1,781.6 | $ | 1,652.7 | $ | 1,652.7 | ||||||||||
Asset valuation reserve (AVR) | 258.0 | 248.8 | 258.3 | 246.8 | 246.8 | 264.7 | 258.4 | 283.6 | 233.3 | 233.3 | ||||||||||||||||||||
Capital, surplus and AVR | 2,162.7 | 2,216.8 | 2,179.0 | 2,151.2 | 2,151.2 | 2,183.6 | 2,210.4 | 2,065.2 | 1,886.0 | 1,886.0 | ||||||||||||||||||||
Interest maintenance reserve (IMR) | 481.8 | 482.4 | 493.2 | 487.0 | 487.0 | 479.4 | 492.0 | 439.8 | 425.0 | 425.0 | ||||||||||||||||||||
Total statutory capital, surplus, AVR & IMR | $ | 2,644.5 | $ | 2,699.2 | $ | 2,672.2 | $ | 2,638.2 | $ | 2,638.2 | $ | 2,663.0 | $ | 2,702.4 | $ | 2,505.0 | $ | 2,311.0 | $ | 2,311.0 | ||||||||||
(7) | Based on statutory accounting practices prescribed or permitted by regulatory authorities for CNO Financial's insurance subsidiaries after appropriate elimination of intercompany accounts among such subsidiaries. Such accounting practices differ from GAAP. |
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