CNO Financial Group Reports Third Quarter 2016 Results

CARMEL, Ind., Nov. 1, 2016

"The strength of CNO's middle-income market focus, diversified distribution and products continue to extend our reach to serve more customers, as indicated by steady growth in collected premiums and policies in-force," said Ed Bonach, CEO of CNO. "Our third quarter results also demonstrate that ongoing investments in our business and focus on execution are delivering solid earnings, growth in book value and continued financial strength."

Third Quarter 2016 Highlights

• First year collected premiums: $337.6 million, up 7% from 3Q15
• Total collected premiums: $900.0 million, up 2% from 3Q15
• New annualized premium ("NAP") (2): $100.2 million, down 4% from 3Q15
• Policies in-force of 3.5 million (including third party policies in-force), up 1 percent from 3Q15
• Net income per diluted share: 11 cents in 3Q16 compared to 18 cents in 3Q15
• Net operating income (1) per diluted share: 37 cents in 3Q16 compared to 30 cents in 3Q15
• Book value per common share increased to $25.89 from $25.28 at 2Q16
• Book value per diluted share, excluding accumulated other comprehensive income (loss) (4), increased to $20.80 from $20.67 at 2Q16
• Unrestricted cash and investments held by our holding company were $189 million at September 30, 2016
• Common stock repurchases of $52.0 million and dividends of $13.9 million in 3Q16

Nine-month 2016 Highlights

• First year collected premiums: $970.2 million, up 11% from the first nine months of 2015
• Total collected premiums: $2,659.3 million, up 6% from the first nine months of 2015
• NAP (2): $309.9 million, down 2% from the first nine months of 2015
• Net income per diluted share: 69 cents in the first nine months of 2016 compared to 68 cents in the first nine months of 2015
• Net operating income (1) per diluted share: 99 cents in the first nine months of 2016 compared to 90 cents in the first nine months of 2015
• Consolidated risk-based capital ratio was estimated at 458% at September 30, 2016, reflecting estimated statutory operating earnings of $162 million (including approximately $110 million loss on the recapture of long-term care business), a $200.0 million capital contribution and insurance company dividends to the holding company of $175.8 million during the first nine months of 2016