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A **Prudential** for pre-retiree and retiree insurance and annuities.

A **Lincoln Financial Group** specializing in insurance and annuities for middle-income seniors.

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• Life Insurance: Provides financial protection to beneficiaries upon the policyholder's death.
• Supplemental Health Insurance: Offers coverage for specific health needs such as critical illness, accidents, or hospital stays, complementing major medical plans.
• Annuities: Provides a guaranteed stream of income, primarily for retirement savings and distribution.

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CNO Financial Group, Inc. (CNO) is an insurance holding company that primarily sells its products directly to individuals rather than to other companies.

The company serves the following categories of individual customers:

• Middle-income seniors and pre-retirees: This customer segment, primarily served by CNO's Bankers Life and Colonial Penn brands, seeks a range of products including life insurance, health insurance (such as Medicare supplement and long-term care), and annuities to manage healthcare costs, protect assets, and ensure financial security during retirement.

• Working individuals: Through its Washington National brand, CNO serves working individuals who are often seeking supplemental health insurance products (such as critical illness, accident, and short-term disability) and basic life insurance. These products are frequently offered through employer-sponsored worksite marketing programs or directly to individuals.

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• Tata Consultancy Services (TCS.NS)
• Ernst & Young LLP
• Wilton Re Ltd.

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Gary C. Bhojwani, Chief Executive Officer

Gary C. Bhojwani became chief executive officer of CNO Financial Group on January 1, 2018, having previously served as president of the company from April 2016 through December 2017. Prior to joining CNO, Mr. Bhojwani was a member of the Board of Management of Allianz SE and chairman of Allianz of America, Allianz Life Insurance Company, and Fireman's Fund Insurance Company from 2012 to 2015. He was chief executive officer of Allianz Life Insurance Company of North America from 2007 through 2012 and president of Commercial Business, Fireman's Fund Insurance Company from 2004 to 2007. Mr. Bhojwani was also chief executive officer of Lincoln General Insurance Company from 2002 to 2004, and he founded and was chief executive officer of Avalon Risk Management from 1998 to 2002. He holds a Bachelor of Science degree in actuarial science from the University of Illinois and an MBA from the University of Chicago.

Paul H. McDonough, Chief Financial Officer

Paul H. McDonough was named chief financial officer for CNO Financial Group in March 2019. He brings nearly thirty years of public company finance and twenty years of insurance industry expertise to CNO. Prior to joining CNO, he served as executive vice president and chief financial officer of OneBeacon Insurance Group from 2005 to 2017, where he was instrumental in completing the company's successful IPO and executing a corporate restructuring. Previously, Mr. McDonough was chief financial officer at BJ's Wholesale Club in 2005 and held treasury roles at The St. Paul Companies from 1999 to 2004. He also worked in strategic planning and finance at Sears and Chevron, and proudly served as an officer in the U.S. Navy and Navy Reserve for six years. Mr. McDonough earned a bachelor's degree in government from Georgetown University and an MBA from the Kellogg Graduate School of Management at Northwestern University.

Karen J. DeToro, Chief Actuary and Chief Risk Officer

Karen J. DeToro has served as chief actuary of CNO Financial Group since September 2019 and was named chief risk officer in June 2020. Before joining CNO, DeToro held executive leadership positions in finance operations, product development, underwriting, strategy, and governance at New York Life, including serving as vice president and chief actuary of New York Life Direct. She was also a principal at Deloitte Consulting, where she led its Insurance Enterprise Risk Management (ERM) and Actuarial Transformation initiatives.

Eric R. Johnson, Chief Investment Officer and President, 40|86 Advisors, Inc.

Eric R. Johnson serves as the Chief Investment Officer of CNO Financial Group and President of 40|86 Advisors, Inc.

Joel Koehneman, Chief Accounting Officer

Joel Koehneman was appointed chief accounting officer of CNO Financial Group, effective January 25, 2025. He most recently served as a finance director at CDW Corporation. Mr. Koehneman has over 16 years of experience in the audit practice of PricewaterhouseCoopers (PwC), primarily focusing on life insurance clients, including serving as lead director on two life insurance company audits.

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Here are the key risks to CNO Financial:

1. Interest Rate Fluctuations: CNO Financial is highly sensitive to changes in interest rates. A prolonged low interest rate environment can reduce the net spread between the interest earned on investments and the interest credited to policyholders, impacting profitability. Conversely, a prolonged high-rate environment could depress earnings, as the company's embedded derivatives and annuity liabilities are acutely sensitive to Federal Reserve policy. Interest rate changes also directly affect the value of CNO's investment portfolio and influence policyholder behavior.

2. Investment Portfolio Performance and Market Volatility: The company faces risks related to its investment portfolio, including potential unrealized losses that could pressure book value if interest rates rise further or credit quality deteriorates. Losses on investments can reduce the returns credited to customers, negatively affecting sales and financial performance. CNO's business is exposed to the performance of debt and equity markets, and adverse market conditions can impact the liquidity and value of its investments. Furthermore, persistent inflation poses risks to investment values.

3. General Economic Conditions and Regulatory Environment: As an insurance provider, CNO Financial is exposed to broader economic cycles and regulatory changes. General economic factors, such as credit availability, consumer spending, business investment, and inflation, can depress demand for insurance products, leading to higher policy lapses or surrenders during economic downturns. The company also faces challenges from regulatory compliance and potential changes in tax laws, which could impact its operations and financial stability.

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The clear emerging threat to CNO Financial comes from the accelerating rise of digital-first, direct-to-consumer (DTC) platforms and Insurtech companies specifically targeting the middle-income pre-retiree and retiree market for life, health, and annuity products. These emerging competitors leverage advanced digital marketing, artificial intelligence, and streamlined online application processes to offer a potentially lower-cost and more convenient alternative to CNO's traditional agent-centric (Bankers Life) and traditional direct-response (Colonial Penn) distribution models. This shift directly challenges CNO's established distribution advantages by appealing to an increasingly digitally savvy older demographic, threatening to erode market share and pricing power through more efficient customer acquisition and reduced overhead.

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1. Sustained Sales Momentum in Consumer and Worksite Divisions: CNO Financial anticipates continued robust growth in new annualized premiums across both its Consumer and Worksite Divisions. This includes strong performance in direct-to-consumer life insurance sales, which have seen significant surges, and consistent increases in Worksite Life and Health New Annualized Premiums. The company's strategic focus on the middle-income market further underpins this growth.
2. Expansion of Annuity and Financial Advisory Products: Growth in collected annuity premiums and client assets in brokerage and advisory services is expected to contribute to revenue expansion. CNO Financial has demonstrated a consistent upward trend in these areas, reflecting strong demand for retirement and financial planning solutions.
3. Product Innovation and Enhanced Offerings: CNO Financial is committed to launching innovative products and improving its existing portfolio. This strategy aims to capture future insurance premium growth by meeting evolving customer needs, as exemplified by the introduction and anticipated improvement in products like Optavise Clear, which bundles existing services with new Medicare advocacy and improved technology.
4. Strategic Repositioning through Bermuda Treaty and Business Exit: The execution of a second Bermuda treaty and the strategic exit from the Worksite fee services business are expected to accelerate operating return on equity (ROE) improvement. While not a direct revenue driver, this streamlining and enhanced capital efficiency allow the company to sharpen its focus on higher-growth, more profitable core insurance offerings, indirectly supporting revenue growth.
5. Favorable Demographic Trends: An aging U.S. population presents a significant tailwind for CNO Financial. The increasing number of Americans entering retirement age drives strong demand for the company's diversified product portfolio, which includes annuity, health, and life insurance offerings catering to the growing needs of the middle-income market.

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Share Repurchases

• CNO Financial repurchased $60.0 million of common stock in Q3 2025, buying 1.6 million shares at an average cost of $38.19 per share.
• As of September 30, 2025, the company had authority to repurchase up to an additional $480.4 million of common stock.
• In Q2 2025, CNO repurchased $100 million in shares, contributing to a year-to-date total of $234 million in shareholder returns, and had an authorization of approximately $540.4 million remaining as of June 30, 2025.
• For the full year 2024, CNO returned $349 million to shareholders, a 50% increase from 2023. In February 2025, the Board approved an additional $500 million for share repurchases, adding to the $240.3 million remaining capacity as of December 31, 2024.
• In 2023, CNO returned more than $230 million to shareholders.
• In 2022, CNO returned $245 million to shareholders in the form of share repurchases and dividends, with $10.0 million in share repurchases in Q4 2022.
• In 2021, the company returned $468.1 million to shareholders, which included a record $402.4 million in share repurchases. In May 2021, an additional $500 million was approved for share repurchases, adding to approximately $169 million remaining capacity as of March 31, 2021.
• In 2020, CNO repurchased 14.5 million shares for $263.0 million, and had remaining repurchase authority of $269.3 million as of December 31, 2020.

Share Issuance

• As of September 30, 2025, CNO Financial had 95.8 million shares outstanding. This is a decrease from 98.6 million weighted average diluted shares outstanding in Q3 2025.
• Weighted average diluted shares outstanding decreased by 7% from Q4 2021 to Q4 2022.

Outbound Investments

• In October 2025, CNO decided to streamline its Worksite Division operations by exiting the fee services side of the business, which included services acquired in the Web Benefits Design and DirectPath acquisitions. This exit is expected to be substantially complete in the first half of 2026.

Capital Expenditures

• CNO generally balances growth investments and technology expenditures against operating efficiency. The company continues to invest in technology and sales tools to support operational efficiency.