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  • 1. Citi 2013 US Financial Services ConferenceMarch 6 20136,

2. CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 2 3. Forward-Looking StatementsCertain statements made in this presentation should be consideredforward-looking statements as defined in the Private Securities LitigationReform Act of 1995. These include statements about future results ofoperations and capital plans. We caution investors that these forward-looking statements are not guarantees of future performance, and actualresults may differ materially. Investors should consider the importantrisks and uncertainties that may cause actual results to differ, includingthose included in our Quarterly Reports on Form 10-Q, our Annual Reporton Form 10-K and other filings we make with the Securities andExchange CE hCommission. W assume no obligation t update thii i We bli ti to d t thispresentation, which speaks as of todays date.CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 3 4. Non-GAAP MeasuresThis presentation contains financial measures that differ from the comparable measuresunder Generally Accepted Accounting Principles (GAAP). Reconciliations between thosenon-GAAP measures and th comparable GAAP measures are i l d d i th AGAAPd theblincluded in the Appendix.diWhile management believes these measures are useful to enhance understanding andcomparability of our financial results, these non-GAAP measures should not beconsidered substitutes for the most directly comparable GAAP measures.id d b tit t f th t di tlblAdditional information concerning non-GAAP measures is included in our periodic filingswith the Securities and Exchange Commission that are available in the Investors SECFilings section of CNOs website, www.CNOinc.com.Fili tif CNOb it CNOiCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 4 5. CNO Fundamentals Well positioned in the growing and underserved senior andmiddle i iddl income market k t Track record of strong execution Building core value drivers Strong risk management Well capitalized and generating significant excess capitalCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 5 6. What Differentiates CNO?Focus on serving the needs of our middle-income target market, a market that is fast growing and underserved g gExclusive distribution Consistent with market focus We have pricing influence Track record of stable customer baseAlignment Distribution Products Service CultureCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 6 7. Track Record of Execution 88% Return Value To ShareholdersTotal Return Since YE2009*Invest in Growth26% 16%Financial Foundation CNOPeer S&PGroup Insurance *As of market close on 12/31/12 Reset Business Mix Peers - AFL, AIZ, AMP, GNW, HIG, LNC, MET, PFG, PL, PNX, PRI, PRU, SFG, SYA, TMK, UNMCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 20137 8. Investment in the BusinessCNO($ millions) )Core Sales Excluding Bankers Annuities* - 8% Consolidated CAGR Since 2010 Investing in productivity and growth of theagent force$350.0 $313.5$301.5$301 5E Expanding presence b adding new l di by ddi locations ti and geographies Developing and launching new products tomeet the needs of our target market t th d f ttk t Increasing direct advertising Sales excluding Bankers Life annuities up12% for the year 2010 2011 2012 * Core sales exclude Washington Nationals Medicare supplement and annuities. Sales summarized above also exclude Bankers annuity sales.CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 8 9. Growth in the CNO Franchise ($ millions) Avg. Liabilities on Core Business Segments Growing; Other CNO Business is Shrinking$16,662.8$15,481.7$15 481 7$16,106.8$704.0 $714.8 Investing in organic growth $698.0$2,618.8 opportunities and layering on$2,637.6 new business $2,676.8 Expanding locations, geographies, geographies and product offerings Increasing direct marketing Growing agent force$13,329.2$12,106.9$12,765.2 Exploring non-organic options to accelerate both run-on and run off run-off$5,511.5$5,286.1$5,005.1 Right-sized acquisitions that fit core model Explore reinsurance 2010 2011 2012strategiesBLC WN CP OCBCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 9 10. Segment Earnings Trend - Stable & Growing($ millions) )Segment EBIT Excluding Significant Items*$452.0 Tailwinds Favorable health benefit ratios$344.3$127.1 Annuity persistency & spreads$309.4 Corporate investment results$$106.6 Free cash flow and capital Fh fld it l$100.4 deployment$290.3$290 3$250.2Headwinds$221.0Low new money investment ratesNatural run-off blocks of business$46.5 $17.8 $28.3 $4.2$(4.7) $(8.6)Normalizing LTC benefit ratios$(34.0) $(36.1) $(3.3)Investment in business model 201020112012driving growth and efficiencies CPOCB BLCWN Corporate* A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure.CNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 201310 11. Product Level Risk ManagementDiversified product mix focused on protection needs Basic products that fit with exclusive distribution and meet the basic insurance needs of the middle marketLife Insurance Annuities Attractive and more predictable return characteristics - price to unleveraged IRR target of 12% aftertaxRetirement Security Product mix balances interest rate risk withSupplemental Long-Term Long Term shorter duration pure mortality and morbidity HealthCareinsurance Unique Long Term Care proposition produces Medicare a balanced risk profile Value of New Business (VNB) measures used to govern risk/return dynamicsCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 11 12. Capital Strategy($ millions) Forward Capital Plan Key Capital & Liquidity Metrics Maintain capital cushion to absorb YE2012 deployable capital of ~$150mm$150mm stress-test conditions358% 367% 332% Leverage of 20%309% $423 Risk-based capital ratio of 350% $347 Holdco liquidity & investments of $150mm$294$294 $203 Maintain positive ratings profile withf $175 $161 goal of achieving investment grade $146 Received 3 ratings upgrades in 2012 Balanced use of free cash flow2009 201020112012Capital to Holding CompanyHolding Company LiquidityRBCfrom Insurance Subs Debt to Cap xAOCI*23.8%21.9% 18.3% 20.7% * A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measureCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 201312 13. 2012 Capital Generation Free Cash Flow Building($ millions) Free Cash Flow 2012 2012 Full Year UsesFinancingCosts$23.1$23 1CommonStockDividendsStock $13.9 Buybacks$180.2 Debt Payments$111.8$111 8 $50-$75mm of capital retained to support growth 2013 Guidance: Statutory dividend range $250-$300mm$250 $300mm Securities* repurchase of $250-$300mm *Common stock and common stock equivalentsCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 201313 14. CNO: Near Term Goals Lead to Long Term ValueNear Term Objectives2015 Milestones Grow sales, distribution and Invest $80-$85mm in strategicproduct portfoliobusiness initiatives Increase operational Accelerate run-on and run-offeffectiveness Enhance customer experiencep Build economic value byand operational efficiencygrowing EPS and ROE ROE run-rate of 9% Achieve BB/BB debt rating Drive to investment grade Di t it td Continue balanced approach tocapital deployment Target dividend payout ratio of 20%Additional Potential ROE CatalystsRun-on / Run- Recapitalization Operating pg off business The Sequeleffectiveness engineeringCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 14 15. Q&ACNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 15 16. AppendixAdiCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 2013 16 17. CNO: The right products and the right channels for today s todays middle-market consumer CNO has expertiseCNO can accessStrong trends are driving across important consumers across iddlkmiddle-market consumersmiddle-market productsmultiple channels Rising medical costs Fixed and Fixed-Index With an Agent (Retail)Life and Annuity Bankers Career Force Decline of societal safety yProducts nets (government and W hi t N tiWashington Nationall employer) Long-Term Care PMA (CNO-owned) Independents Increased longevity Medicare Supplement Greater awareness of need Whole and Universal With t an Agent (Di t) Without A t (Direct) for retirement planninglife products Colonial Penn Final expense At Work (Worksite Marketing) Supplemental Health PMA Worksite Division Washington National -IndependentsCNO Financial Group | Citi 2013 US Financial Services Conference | March 6, 201317 18. Loss Recognition & Cash Flow TestingCNO2012 GAAP Loss Recognition Testing 2012 Statutory Cash Flow Testing Aggregate testing margins remain stronggg g ggg Insurance Company margins consistent with Testing margin Increased in 2012 prior years - ASU 2010-26 All insurance entities pass Asset Adequacy / - Net Growth from New Business (+6%)Cash Flow Testing under all standard scenarios - Lower interest rates projected (-8%) Interest rate scenarios re-affirm strong assetliability management - Legal Settlements (-2%) Year-end testing resulted in less than $5 million All intangibles are recoverableof additional asset adequacy reservesLine of Business Aggregate MarginPrincipal Risks to MarginTraditional life and +++ Unusually high mortalityUniversal life (Bankers)Medicare supplement and+++ Unusually high morbiditysupplemental healthLong term care Positive but vulnerable Low interest rates; High morbidity; Low policy terminationInterest sensitive life (OCB)Positive but