CNO Financial Group Reports Third Quarter 2017 Results

CARMEL, Ind., Oct. 25, 2017

"The company's earnings for the third quarter reflect the continued strength of our enterprise," said Ed Bonach, CEO of CNO.  "We had notable increases in net income and book value per share, while enhancing our capital position and flexibility."

"We are pleased with some of our metrics this quarter, and continue to see encouraging early results for agent pilots, product rollouts, and market segmentation strategies," added Gary Bhojwani, president of CNO and CEO successor. "We remain committed to the implementation of strategic initiatives that will, over time, allow us to achieve desired results in all of our metrics.  Indeed, steps are being taken to accelerate the pace of change."

Third Quarter 2017 Highlights

• First-year collected premiums: $319.2 million, down 5% from 3Q16
• Total collected premiums: $882.4 million, down 2% from 3Q16
• New annualized premium ("NAP") (2) for life and health products: $77.4 million, down 10% from 3Q16
• Annuity collected premiums: $236.7 million, down 4% from 3Q16
• Annuity account values: $8.4 billion, up 4% from 3Q16
• Policies inforce of 3.5 million (including third party policies inforce), down 1% from 3Q16
• Net income per diluted share: 59 cents in 3Q17 compared to 11 cents in 3Q16
• Net operating income (1) per diluted share: 45 cents in 3Q17 compared to 37 cents in 3Q16
• Book value per common share increased to $29.10 at September 30, 2017 from $25.89 at September 30, 2016
• Book value per diluted share, excluding accumulated other comprehensive income (loss) (3), increased to $23.19 at September 30, 2017 from $20.80 at September 30, 2016
• Unrestricted cash and investments held by our holding company were $380 million at September 30, 2017 compared to $264 million at December 31, 2016
• Common stock repurchases of $28.2 million and dividends of $15.2 million in 3Q17

Nine-month 2017 Highlights

• First-year collected premiums: $1,016.8 million, up 5% from the first nine months of 2016
• Total collected premiums: $2,747.4 million, up 3% from the first nine months of 2016
• NAP (2) for life and health products: $247.2 million, down 8% from the first nine months of 2016
• Annuity collected premiums: $758.9 million, up 11% from the first nine months of 2016
• Net income per diluted share: $1.43 in the first nine months of 2017 compared to 69 cents in the first nine months of 2016
• Net operating income (1) per diluted share: $1.25 in the first nine months of 2017 compared to 99 cents in the first nine months of 2016
• Common stock repurchases of $140.1 million and dividends of $44.5 million in the first nine months of 2017
• Consolidated risk-based capital ratio was estimated at 450% at September 30, 2017, reflecting estimated statutory operating earnings of $257 million and insurance company dividends to the holding company of $286.8 million during the first nine months of 2017