CNO Financial Group (CNO) investor relations material

Strategic focus and market positioning

• Maintains exclusive focus on middle-income Americans, a segment representing 60–70% of the U.S. population, with unique needs and less competition from other insurers.

• Offers a broad product suite, including life, health, and Medicare products, enabling cross-selling and deeper customer relationships.

• Controlled, captive distribution model with full-time agents, half of whom are millennials and half women, differentiates from industry norms.

• Direct-to-consumer business has shifted from TV to digital channels, with 70% of sales now from non-television sources.

• Broker-dealer and advisory operations have grown to $19 billion in assets, enhancing client relationships and agent career paths.

Growth drivers and operational execution

• Consistent growth in agent count and productivity, supported by targeted recruitment, training, and technology investments.

• Productivity prioritized over agent count, with technology and diversified product pipelines boosting results.

• Cross-selling from Medicare Supplement products is a key driver, with one in three Med Supp sales leading to additional products.

• Worksite division growth fueled by small employer focus, geographic expansion, and multi-product offerings.

• Technology modernization initiative underway, with $170 million invested over three years to update foundational systems and enable future growth.

Financial performance and outlook

• ROE guidance of 12% by 2027 has already been exceeded; new, higher targets will be set, aiming for top quartile performance in the mid-teens.

• Improved ROE driven by capital efficiency, sales growth, expense management, and technology use.

• Annuity business faces less competition in the middle market, with average sales around $140,000, and growth constrained more by agent capacity than market rivalry.

• Medicare Supplement margins are maintained through annual repricing, providing stability and flexibility.

• M&A in the worksite business has been reversed after unsuccessful acquisitions; current growth is organic and sustainable.