CNO Financial Group
2
Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in these
materials relative to markets for CNO Financial’s products and trends in CNO Financial’s operations or financial results, as well as other
statements, contain forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform
Act of 1995. Forward-looking statements typically are identified by the use of terms such as “anticipate,” “believe,” “plan,” “estimate,” “expect,”
“project,” “intend,” “may,” “will,” “would,” “contemplate,” “possible,” “attempt,” “seek,” “should,” “could,” “goal,” “target,” “on track,” “comfortable
with,” “optimistic” and similar words, although some forward-looking statements are expressed differently. You should consider statements that
contain these words carefully because they describe our expectations, plans, strategies and goals and our beliefs concerning future business
conditions, our results of operations, financial position, and our business outlook or they state other ‘‘forward-looking’’ information based on
currently available information. Assumptions and other important factors that could cause our actual results to differ materially from those
anticipated in our forward-looking statements include, among other things: (i) changes in or sustained low interest rates causing a reduction in
investment income, the margins of our fixed annuity and life insurance businesses and demand for our products; (ii) general economic, market
and political conditions, including the performance and fluctuations of the financial markets which may affect the value of our investments as
well as our ability to raise capital or refinance existing indebtedness and the cost of doing so; (iii) the ultimate outcome of lawsuits filed against
us and other legal and regulatory proceedings to which we are subject; (iv) our ability to make changes to certain non-guaranteed elements of
our life insurance products; (v) our ability to obtain adequate and timely rate increases on our health products, including our long-term care
business; (vi) the receipt of any required regulatory approvals for dividend and surplus debenture interest payments from our insurance
subsidiaries; (vii) mortality, morbidity, the increased cost and usage of health care services, persistency, the adequacy of our previous reserve
estimates and other factors which may affect the profitability of our insurance products; (viii) changes in our assumptions related to deferred
acquisition costs or the present value of future profits; (ix) the recoverability of our deferred tax assets and the effect of potential ownership
changes and tax rate changes on their value; (x) our assumption that the positions we take on our tax return filings, including our position that
our 7.0% convertible senior debentures due 2016 will not be treated as stock for purposes of Section 382 of the Internal Revenue Code of
1986, as amended, and will not trigger an ownership change, will not be successfully challenged by the Internal Revenue Service; (xi) changes
in accounting principles and the interpretation thereof (including changes in principles related to accounting for deferred acquisition costs); (xii)
our ability to continue to satisfy the financial ratio and balance requirements and other covenants of our debt agreements; (xiii) our ability to
achieve anticipated expense reductions and levels of operational efficiencies including improvements in claims adjudication and continued
automation and rationalization of operating systems, (xiv) performance and valuation of our investments, including the impact of realized losses
(including other-than-temporary impairment charges); (xv) our ability to identify products and markets in which we can compete effectively
against competitors with greater market share, higher ratings, greater financial resources and stronger brand recognition; (xvi) our ability to
generate sufficient liquidity to meet our debt service obligations and other cash needs; (xvii) our ability to maintain effective controls over
financial reporting; (xviii) our ability to continue to recruit and retain productive agents and distribution partners and customer response to new
products, distribution channels and marketing initiatives; (xix) our ability to achieve eventual upgrades of the financial strength ratings of CNO
Financial and our insurance company subsidiaries as well as the impact of our ratings on our business, our ability to access capital and the cost
of capital; (xx) the risk factors or uncertainties listed from time to time in our filings with the Securities and Exchange Commission; (xxi)
regulatory changes or actions, including those relating to regulation of the financial affairs of our insurance companies, such as the payment of
dividends and surplus debenture interest to us, regulation of the sale, underwriting and pricing of products, and health care regulation affecting
health insurance products; and (xxii) changes in the Federal income tax laws and regulations which may affect or eliminate the relative tax
advantages of some of our products or affect the value of our deferred tax assets. Other factors and assumptions not identified above are also
relevant to the forward-looking statements, and if they prove incorrect, could also cause actual results to differ materially from those projected.
All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Our forward-looking statements
speak only as of the date made. We assume no obligation to update or to publicly announce the results of any revisions to any of the forward-
looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the
forward-looking statements.
