Exhibit 12.1
CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Dollars in millions)
| Three | ||||||||||||||||||||||||
| months | ||||||||||||||||||||||||
| ended | ||||||||||||||||||||||||
| March 31, | Year ended December 31, | |||||||||||||||||||||||
| 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
| Pretax income from operations: | ||||||||||||||||||||||||
| Net income | $ | 84.3 | $ | 175.6 | $ | 358.2 | $ | 270.7 | $ | 51.4 | $ | 478.0 | ||||||||||||
| Add income tax expense (benefit) | 23.8 | 304.9 | (5.0 | ) | 97.0 | 123.7 | (173.2 | ) | ||||||||||||||||
| Pretax income from operations | 108.1 | 480.5 | 353.2 | 367.7 | 175.1 | 304.8 | ||||||||||||||||||
| Add fixed charges: | ||||||||||||||||||||||||
| Interest expense on corporate debt | 11.9 | 46.5 | 45.8 | 45.0 | 43.9 | 51.3 | ||||||||||||||||||
| Interest expense on investment borrowings and borrowings related to variable interest entities | 21.7 | 77.2 | 70.6 | 49.9 | 48.9 | 54.0 | ||||||||||||||||||
| Interest added to policyholder account balances | 24.7 | 105.2 | 112.9 | 122.7 | 173.0 | 232.5 | ||||||||||||||||||
| Portion of rental (a) | 5.0 | 18.7 | 17.2 | 14.1 | 15.1 | 13.3 | ||||||||||||||||||
| Fixed charges | 63.3 | 247.6 | 246.5 | 231.7 | 280.9 | 351.1 | ||||||||||||||||||
| Adjusted earnings | $ | 171.4 | $ | 728.1 | $ | 599.7 | $ | 599.4 | $ | 456.0 | $ | 655.9 | ||||||||||||
| Ratio of earnings to fixed charges | 2.71 | X | 2.94 | X | 2.43 | X | 2.59 | X | 1.62 | X | 1.87 | X | ||||||||||||
| (a) | Interest portion of rental is estimated to be 33 percent. |
