CNO FINANCIAL GROUP, INC. MANAGEMENT REPORT ON CONSOLIDATED FINANCIAL POSITION AND RESULTS OF OPERATIONS. (Type 10-Q)

On this part, we assessment the consolidated monetary situation of CNO at
June 30, 2022, and its consolidated outcomes of operations for the six months
ended June 30, 2022 and 2021, and, the place applicable, components which will have an effect on
future monetary efficiency. Please learn this dialogue along with
the accompanying consolidated monetary statements and notes. Outcomes for
interim durations aren't essentially indicative of the outcomes that could be
anticipated for a full yr.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS


Our statements, pattern analyses and different info contained on this report
and elsewhere (similar to in filings by CNO with the SEC, press releases,
displays by CNO or its administration or oral statements) relative to markets
for CNO's merchandise and traits in CNO's operations or monetary outcomes, as effectively
as different statements, comprise forward-looking statements inside the which means of
the federal securities legal guidelines and the Personal Securities Litigation Reform Act of
1995. Ahead-looking statements usually are recognized by way of phrases
similar to "anticipate," "consider," "plan," "estimate," "anticipate," "mission,"
"intend," "might," "will," "would," "ponder," "doable," "try," "search,"
"ought to," "may," "objective," "goal," "on observe," "snug with,"
"optimistic," "steering," "outlook" and comparable phrases, though some
forward-looking statements are expressed otherwise. You need to take into account
statements that comprise these phrases rigorously as a result of they describe our
expectations, plans, methods and targets and our beliefs regarding future
enterprise situations, our outcomes of operations, monetary place, and our
enterprise outlook or they state different "forward-looking" info primarily based on
at present out there info. The "Threat Elements" part of our 2021 Annual
Report on Type 10-Okay supplies examples of dangers, uncertainties and occasions that
may trigger our precise outcomes to vary materially from the expectations
expressed in our forward-looking statements. Assumptions and different vital
components that might trigger our precise outcomes to vary materially from these
anticipated in our forward-looking statements embrace, amongst different issues:

•the continuing COVID-19 pandemic and the ensuing monetary market, financial and
different impacts, together with the deferral of healthcare by policyholders and the
potential for future ensuing elevated declare prices, may adversely have an effect on our
enterprise, outcomes of operations, monetary situation and liquidity;

•normal financial, market and political situations and uncertainties, together with
the efficiency and fluctuations of the monetary markets which can have an effect on the
worth of our investments in addition to our means to boost capital or refinance
current indebtedness and the price of doing so;

•publicity to rate of interest danger, together with rate of interest volatility, might adversely have an effect on our outcomes of operations, monetary situation or money flows;


•modifications to future funding earnings, together with the impression of realized losses
(together with other-than-temporary impairment prices) might diminish the worth of
our invested belongings and negatively impression our profitability, our monetary
situation and our liquidity;

•the last word consequence of lawsuits introduced towards us and different authorized and regulatory proceedings to which we’re topic;

• our means to make early modifications to sure non-guaranteed components of our life insurance coverage merchandise;

• our means to acquire satisfactory and well timed worth will increase on our healthcare merchandise, together with our long-term care enterprise;

•receipt of all required regulatory approvals for dividend and curiosity funds on extra debentures of our insurance coverage subsidiaries;


•mortality, morbidity, the elevated value and utilization of well being care companies,
persistency, the adequacy of our earlier reserve estimates, modifications within the
well being care market and different components which can have an effect on the profitability of our
insurance coverage merchandise;

•modifications in our assumptions relating to deferred acquisition prices or the current worth of future earnings;

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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•the recoverability of our deferred tax belongings and the impact of doable modifications in possession and tax charges on their worth;

• our assumption that the positions we tackle our tax filings won’t be efficiently challenged by the Inner Income Service;

•modifications in accounting ideas and their interpretation;

• our means to proceed to fulfill monetary ratio and breakeven necessities and different covenants in our debt agreements;

•the efficiency and valuation of our investments;

• our means to determine merchandise and markets wherein we are able to compete successfully towards opponents with larger market share, greater scores, larger monetary assets and higher model recognition;

• our means to generate enough money to fulfill our debt service obligations and different money necessities;

•modifications in capital deployment alternatives;

•our means to keep up efficient controls over monetary reporting and modeling;

• our means to proceed to recruit and retain productive brokers and distribution companions;

•buyer response to new merchandise, distribution channels and advertising initiatives;


•inflation might impression the gross sales and persistency of insurance coverage merchandise, a portion
of our insurance coverage coverage advantages affected by elevated medical protection prices
and varied working bills together with payroll;

•our means to keep up the monetary power scores of CNO and our insurance coverage
firm subsidiaries in addition to the impression of our scores on our enterprise, our
means to entry capital, and the price of capital;

•regulatory modifications or actions, together with: these regarding regulation of the
monetary affairs of our insurance coverage firms, such because the calculation of
risk-based capital and minimal capital necessities, and fee of dividends
and surplus debenture curiosity to us; regulation of the sale, underwriting and
pricing of merchandise; and well being care regulation affecting medical health insurance
merchandise;

•modifications in federal earnings tax legal guidelines and rules which will have an effect on or eradicate the relative tax benefits of a few of our merchandise or have an effect on the worth of our deferred tax belongings;

•the supply and effectiveness of reinsurance agreements, in addition to the impression of any default or default by reinsurers;

•the efficiency of third-party service suppliers and potential difficulties arising from outsourcing preparations;

•the expansion fee of turnover, premiums obtained, pension deposits and belongings;

• interruption of telecommunications, info expertise or different operational programs or incapacity to keep up the safety, privateness or confidentiality of delicate knowledge on such programs;


•occasions of terrorism, cyber-attacks, pure disasters or different catastrophic
occasions, together with losses from a illness pandemic or potential adversarial impacts
from local weather change;

•the ineffectiveness of danger administration insurance policies and procedures in figuring out, monitoring and managing dangers; and

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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• the danger components or uncertainties listed on occasion in our filings with the SECOND.

Different components and assumptions not recognized above are additionally related to the forward-looking statements and, if incorrect, may additionally trigger precise outcomes to vary materially from these projected.


All written or oral forward-looking statements attributable to us are expressly
certified of their entirety by the foregoing cautionary assertion. Our
forward-looking statements communicate solely as of the date made. We assume no
obligation to replace or to publicly announce the outcomes of any revisions to any
of the forward-looking statements to replicate precise outcomes, future occasions or
developments, modifications in assumptions or modifications in different components affecting the
forward-looking statements.

The assertion of risk-based capital (“RBC”) measures shouldn’t be meant to rank an insurance coverage firm or to be used in advertising, promoting or promotional actions.

OVERVIEW


We're a holding firm for a bunch of insurance coverage firms working all through
america that develop, market and administer medical health insurance, annuity,
particular person life insurance coverage and different insurance coverage merchandise. We deal with serving
middle-income pre-retiree and retired People, which we consider are
engaging, underserved, excessive development markets. We promote our merchandise by means of
unique brokers, unbiased producers (a few of whom promote a number of of our
product strains completely) and direct advertising.

We view our operations as three insurance coverage product strains (annuity, well being and
life) and the funding and price earnings segments. Our segments are aligned primarily based
on their frequent traits, comparability of revenue margins and the best way
administration makes working selections and assesses the efficiency of the
enterprise.

Our insurance coverage product line segments (annuity, well being and life) embrace
advertising, underwriting and administration of the insurance policies our insurance coverage
subsidiaries promote. The enterprise written in every of the three product classes
by means of all of our insurance coverage subsidiaries is aggregated permitting administration and
buyers to evaluate the efficiency of every product class. When analyzing
profitability of those segments, we use insurance coverage product margin because the measure
of profitability, which is: (i) insurance coverage coverage earnings; and (ii) web funding
earnings allotted to the insurance coverage product strains; much less (i) insurance coverage coverage
advantages and curiosity credited to policyholders; and (ii) amortization,
non-deferred commissions and promoting expense. Web funding earnings is
allotted to the product strains utilizing the e book yield of investments backing the
block of enterprise, which is utilized to the common insurance coverage liabilities, web of
insurance coverage intangibles, for the block in every interval.

Earnings from insurance coverage merchandise is the sum of the insurance coverage margins of the
annuity, well being and life product strains, much less bills allotted to the insurance coverage
strains. It excludes the earnings from our price earnings enterprise, funding earnings
not allotted to product strains, web bills not allotted to product strains
(primarily holding firm bills) and earnings taxes. Administration believes
insurance coverage product margin and earnings from insurance coverage merchandise assist present a
higher understanding of the enterprise and a extra significant evaluation of the
outcomes of our insurance coverage product strains.

We market our insurance coverage merchandise by means of the Client and Development Divisions which replicate the purchasers served by the Firm.


The Client Division serves particular person customers, participating with them on the
telephone, nearly, on-line, face-to-face with brokers, or by means of a mix of
gross sales channels. This construction unifies shopper capabilities right into a single
division and integrates the power of our agent gross sales forces with one of many
largest direct-to-consumer insurance coverage companies with confirmed expertise in
promoting, net/digital and name heart assist.

The Worksite Division focuses on worksite and group gross sales for companies,
associations, and different membership teams, interacting with prospects at their
place of employment and nearly. With a separate Worksite Division, we're
bringing a sharper focus to this high-growth enterprise whereas additional capitalizing
on the power of our acquisitions of WBD and Optavise. Gross sales within the Worksite
Division have been significantly adversely impacted by the COVID-19 pandemic
given the challenges of interacting with prospects at their place of employment.
The Worksite Division is growing its recruiting efforts to rebuild its agent
power which was adversely impacted by the COVID-19 pandemic.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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The Client and Worksite Divisions are primarily centered on advertising insurance coverage
merchandise, a number of forms of that are bought in each divisions and underwritten in
the identical method. Gross sales of group underwritten insurance policies are at present not
important, however are anticipated to extend inside the Worksite Division.

We have now additionally centralized sure practical areas beforehand housed within the three
enterprise segments, together with advertising, enterprise unit finance and gross sales coaching
and assist, amongst others. All coverage, contract, and certificates phrases,
situations, and advantages stay unchanged.

The funding phase includes the administration of our capital assets,
together with investments and the administration of company debt and liquidity. Our
measure of profitability of this phase is the overall web funding earnings not
allotted to the insurance coverage merchandise. Funding earnings not allotted to product
strains represents web funding earnings much less: (i) fairness returns credited to
policyholder account balances; (ii) the funding earnings allotted to our
product strains; (iii) curiosity expense on notes payable and funding
borrowings; (iv) bills associated to the FABN program; and (v) sure bills
associated to learn plans which might be offset by special-purpose funding earnings.
Funding earnings not allotted to product strains consists of funding earnings on
investments in extra of common insurance coverage liabilities, investments held by our
holding firms, the unfold we earn from our FHLB funding borrowing and
FABN applications and variable elements of funding earnings (together with name and
prepayment earnings, changes to returns on structured securities attributable to money
circulation modifications, earnings (loss) from COLI and various funding earnings not
allotted to product strains), web of curiosity expense on company debt.

Our price earnings phase consists of the earnings generated from gross sales of third-party
insurance coverage merchandise, companies offered by WBD (our on-line profit administration
agency), Optavise (a nationwide supplier of year-round technology-driven worker
advantages administration companies) and the operations of our dealer seller and
registered funding advisor.

Bills not allotted to product strains embrace bills for our company actions, excluding curiosity expense on debt.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Here’s a abstract of our revenues for the three and 6 months ending
June 30, 2022 and 2021 (in tens of millions of {dollars}, besides per share knowledge):

                                                 Three months ended               Six months ended
                                                      June 30,                        June 30,
                                                  2022             2021          2022          2021
Insurance coverage product margin
Annuity margin                             $      37.1           $  66.0      $    81.7      $ 123.9
Well being margin                                    113.4             120.9          238.2        245.6
Life margin                                       56.8              39.7           76.6         66.8
Whole insurance coverage product margin                   207.3             226.6          396.5        436.3
Allotted bills                              (152.2)           (141.6)        (297.0)      (282.7)
Earnings from insurance coverage merchandise                    55.1              85.0    

99.5 153.6


Charge earnings                                         3.2               6.6           13.1         13.9
Funding earnings not allotted to product
strains                                             68.5              47.8           97.0         90.8
Bills not allotted to product strains            2.9             (23.8)         (11.9)       (45.8)
Working earnings earlier than taxes                  129.7             115.6          197.7        212.5
Earnings tax expense on working earnings           (29.6)            (26.5)         (46.5)       (48.2)
Web working earnings (a)                         100.1              89.1          151.2        164.3
Web realized funding positive aspects (losses)
from gross sales and alter in allowance for
credit score losses (web of associated
amortization)                                    (26.1)             24.3          (33.2)        27.9
Web change in market worth of investments
acknowledged in earnings                           (21.7)              5.7          (47.2)         (.7)
Truthful worth modifications associated to agent
deferred compensation plan                        14.0                 -           36.7         13.2
Truthful worth modifications in embedded by-product
liabilities (web of associated amortization)         79.7             (44.9)   

170.5 37.2


Different                                              (.2)               .9             .2          1.5
Web non-operating earnings (loss) earlier than
taxes                                             45.7             (14.0)   

127.0 79.1


Earnings tax (expense) profit on
non-operating earnings (loss)                       (9.7)              2.9    

(29.8) (18.0)


Web non-operating earnings (loss)                   36.0             (11.1)          97.2         61.1
Web earnings                                 $     136.1           $  78.0      $   248.4      $ 225.4
Per diluted share
Web working earnings                       $       .85           $   .66      $    1.27      $  1.22
Web non-operating earnings (loss)                    .31              (.08)           .81          .45
Web earnings                                 $      1.16           $   .58      $    2.08      $  1.67


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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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____________

(a)Administration believes that an evaluation of web earnings relevant to frequent inventory
earlier than: (i) web realized funding positive aspects (losses) from gross sales, impairments and
change in allowance for credit score losses, web of associated amortization and taxes;
(ii) web change in market worth of investments acknowledged in earnings, web of
taxes; (iii) truthful worth modifications attributable to fluctuations within the rates of interest used
to low cost embedded by-product liabilities associated to our mounted index
annuities, web of associated amortization and taxes; (iv) truthful worth modifications
associated to the agent deferred compensation plan, web of taxes; (v) modifications in
the valuation allowance for deferred tax belongings and different tax objects; and (vi)
different non-operating objects consisting primarily of earnings attributable to VIEs
("web working earnings," a non-GAAP monetary measure) is vital to guage
the monetary efficiency of the corporate, and is a key measure generally utilized in
the life insurance coverage trade. Administration makes use of this measure to guage
efficiency as a result of the objects excluded from web working earnings will be affected
by occasions which might be unrelated to the Firm's underlying fundamentals. The desk
above reconciles the non-GAAP measure to the corresponding GAAP measure.

As well as, administration makes use of these non-GAAP monetary measures in its budgeting
course of, monetary evaluation of phase efficiency and in assessing the
allocation of assets. We consider these non-GAAP monetary measures improve an
investor's understanding of our monetary efficiency and permits them to make
extra knowledgeable judgments in regards to the Firm as an entire. These measures additionally
spotlight working traits that may not in any other case be obvious. Nevertheless, web
working earnings shouldn't be a measurement of monetary efficiency underneath GAAP and
shouldn't be thought of as a substitute for money circulation from working
actions, as measures of liquidity, or as a substitute for web earnings as
measures of our working efficiency or some other measures of efficiency
derived in accordance with GAAP. As well as, web working earnings shouldn't be
construed as an inference that our future outcomes will likely be unaffected by uncommon
or non-recurring objects. Web working earnings has limitations as an analytical
software, and you shouldn't take into account such measure both in isolation or as a
substitute for analyzing our outcomes as reported underneath GAAP. Our definition and
calculation of web working earnings aren't essentially corresponding to different
equally titled measures utilized by different firms attributable to totally different strategies of
calculation.

CRITICAL ACCOUNTING METHODS


Discuss with "Crucial Accounting Insurance policies" in our 2021 Annual Report on Type 10-Okay
for info on our different accounting insurance policies that we take into account important in
getting ready our consolidated monetary statements.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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RESULTS OF OPERATIONS

The next tables and feedback summarize the working outcomes of our segments (in tens of millions of {dollars}):

                                                               Three months ended                      Six months ended
                                                                    June 30,                               June 30,
                                                             2022                 2021               2022              2021
Insurance coverage product margin
Annuity:
Insurance coverage coverage earnings                               $       5.8              $    4.3          $    10.8          $   9.7
Web funding earnings                                       114.8                 114.9              229.9            230.6
Insurance coverage coverage advantages                                   (27.6)                 (1.3)             (45.4)            (7.5)
Curiosity credited                                           (42.3)                (36.9)             (83.6)           (75.6)
Amortization and non-deferred commissions                   (13.6)                (15.0)             (30.0)           (33.3)
Annuity margin                                               37.1                  66.0               81.7            123.9
Well being:
Insurance coverage coverage earnings                                     403.5                 415.4              810.2            831.9
Web funding earnings                                        71.6                  71.6              143.4            143.1
Insurance coverage coverage advantages                                  (315.7)               (323.3)            (617.0)          (629.9)
Amortization and non-deferred commissions                   (46.0)                (42.8)             (98.4)           (99.5)
Well being margin                                               113.4                 120.9              238.2            245.6
Life:
Insurance coverage coverage earnings                                     216.3                 210.8              429.6            421.3
Web funding earnings                                        36.2                  36.1               72.5             71.9
Insurance coverage coverage advantages                                  (138.4)               (149.5)            (302.0)          (313.1)
Curiosity credited                                           (11.3)                (11.0)             (22.9)           (21.6)
Amortization and non-deferred commissions                   (23.4)                (21.8)             (48.7)           (43.5)
Promoting expense                                         (22.6)                (24.9)             (51.9)           (48.2)
Life margin                                                  56.8                  39.7               76.6             66.8
Whole insurance coverage product margin                              207.3                 226.6              396.5            436.3
Allotted bills:
Department workplace bills                                      (15.4)                (16.2)             (33.5)           (34.7)
Different allotted bills                                   (136.8)               (125.4)            (263.5)          (248.0)
Earnings from insurance coverage merchandise                               55.1                  85.0               99.5            153.6

Charge earnings                                                    3.2                   6.6               13.1             13.9
Funding earnings not allotted to product strains             68.5                  47.8               97.0             90.8
Bills not allotted to product strains                       2.9                 (23.8)             (11.9)           (45.8)
Working earnings earlier than taxes                             129.7                 115.6              197.7            212.5
Earnings tax expense on working earnings                      (29.6)                (26.5)             (46.5)           (48.2)
Web working earnings                                  $     100.1              $   89.1          $   151.2          $ 164.3



CNO is the highest tier holding firm for a bunch of insurance coverage firms working
all through america that develop, market and administer well being
insurance coverage, annuity, particular person life insurance coverage and different insurance coverage merchandise. We
view our operations by segments, which encompass insurance coverage product strains. These
merchandise are distributed by our two divisions. The Client Division serves
particular person customers, participating with them on the telephone, nearly, on-line,
face-to-face with brokers, or by means of a mix of gross sales channels. The
Worksite Division focuses on worksite and group gross sales for companies,
associations, and different membership teams, interacting with prospects at their
place of employment and nearly.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Insurance coverage product margin is administration's measure of the profitability of its
annuity, well being and life product strains' efficiency and consists of insurance coverage
coverage earnings plus allotted funding earnings much less insurance coverage coverage advantages,
curiosity credited, commissions, promoting expense and amortization of
acquisition prices. Earnings from insurance coverage merchandise is the sum of the insurance coverage
margins of the annuity, well being and life product strains, much less bills allotted
to the insurance coverage strains. It excludes the earnings from our price earnings enterprise,
funding earnings not allotted to product strains, web bills not allotted to
product strains (primarily holding firm bills) and earnings taxes. Administration
believes insurance coverage product margin and earnings from insurance coverage merchandise assist
present a greater understanding of the enterprise and a extra significant evaluation of
the outcomes of our insurance coverage product strains.

Funding earnings is allotted to the product strains utilizing the e book yield of
investments backing the block of enterprise, which is utilized to the common
insurance coverage liabilities, web of insurance coverage intangibles, for the block in every
interval. Funding earnings not allotted to product strains represents web
funding earnings much less: (i) fairness returns credited to policyholder account
balances; (ii) the funding earnings allotted to our product strains; (iii)
curiosity expense on notes payable and funding borrowings; (iv) bills
associated to the FABN program; and (v) sure bills associated to learn plans
which might be offset by special-purpose funding earnings. Funding earnings not
allotted to product strains consists of funding earnings on investments in extra
of common insurance coverage liabilities, investments held by our holding firms, the
unfold we earn from our FHLB funding borrowing and FABN applications and variable
elements of funding earnings (together with name and prepayment earnings,
changes to returns on structured securities attributable to money circulation modifications, earnings
(loss) from COLI and various funding earnings not allotted to product
strains), web of curiosity expense on company debt.

Abstract of Working Outcomes: Web working earnings was $100.1 million within the
second quarter of 2022, up from $89.1 million within the second quarter of 2021, and
was $151.2 million within the first six months of 2022, down from $164.3 million in
the primary six months of 2021.

Insurance coverage product margin was $207.3 million within the second quarter of 2022
in comparison with $226.6 million within the second quarter of 2021, and was $396.5 million
within the first six months of 2022 in comparison with $436.3 million within the first six
months of 2021. Insurance coverage product margin has been considerably impacted by the
COVID-19 pandemic. Our life margin mirrored adversarial mortality on account of
elevated deaths associated to COVID-19 of roughly nil and $11 million within the
second quarters of 2022 and 2021, respectively, and $16 million and $30 million
within the first six months of 2022 and 2021, respectively. Our well being margin
continues to match favorably to the margins skilled previous to the COVID-19
pandemic. We estimate the favorable impacts on our well being margin attributable to COVID-19
to be roughly $21 million and $30 million within the second quarters of 2022
and 2021, respectively, and $53 million and $70 million within the first six months
of 2022 and 2021, respectively. As well as, the margin from mounted index
annuities within the three and 6 months ended June 30, 2022 decreased by $26
million and $36 million, respectively, attributable to latest market volatility, as
in comparison with the identical durations in 2021.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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The price earnings phase is summarized under (in tens of millions of {dollars}):

                                       Three months ended               Six months ended
                                            June 30,                        June 30,
                                        2022             2021           2022            2021
Charge income                      $     31.1            $ 31.1      $    71.4          $ 63.4
Working prices and bills          (27.9)            (24.5)         (58.3)          (49.5)
Web price earnings                   $      3.2            $  6.6      $    13.1          $ 13.9



Working prices and bills within the price earnings phase within the 2022 durations
primarily replicate greater bills associated to our companies that present
advantages administration and worker advantages administration companies. Such bills
within the first six months of 2022 are partially offset by the expansion associated to
the gross sales of third social gathering merchandise in latest durations and modifications to our
assumptions reflecting favorable coverage persistency.

Funding earnings not allotted to product strains usually fluctuates from
interval to interval primarily based on the extent of prepayment earnings (together with name
premiums) and buying and selling account earnings; the efficiency of our various
investments (that are usually reported 1 / 4 in arrears); the earnings
associated to the investments underlying our COLI; and the unfold we earn from our
FHLB funding borrowing and FABN applications.

Bills not allotted to product strains embrace sure important objects listed within the desk under. Bills not allotted to product strains, adjusted for these important objects, are summarized under (in tens of millions of {dollars}):

                                                        Three months ended                        Six months ended
                                                             June 30,                                 June 30,
                                                       2022                 2021               2022                2021
Bills not allotted to product strains         $     (2.9)              $  23.8          $    11.9             $  45.8
Expertise refund associated to a reinsurance
settlement (a)                                         22.5                     -               22.5                   -
Web bills associated to important authorized and
regulatory issues                                       -                  (4.5)                 -                (9.8)
Transaction bills associated to acquisition of
Optavise                                                 -                     -                  -                (2.5)
Adjusted whole                                  $     19.6               $  19.3          $    34.4             $  33.5



_______________
(a)  Underneath the phrases of the reinsurance settlement to cede a considerable portion
of our legacy long-term care block, we're entitled to obtain an expertise
refund of as much as $22.5 million if sure fee will increase are permitted and
carried out. As of June 30, 2022, all necessities to earn the utmost
expertise refund have been met and the refund has been acknowledged. Pursuant to
the phrases of the settlement, the refund is payable within the second half of 2023.
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Annuity Product Margin ($ tens of millions):

                                                               Three months ended                       Six months ended
                                                                    June 30,                                June 30,
                                                            2022                2021                2022                2021
Annuity margin:
Mounted index annuities
Insurance coverage coverage earnings                                 $      3.7          $      3.3          $      6.7          $     6.3
Web funding earnings                                         88.4                84.9               176.1              169.8
Insurance coverage coverage advantages                                    (24.0)                3.8               (37.7)               5.4
Curiosity credited                                            (30.4)              (23.4)              (59.7)             (48.3)
Amortization and non-deferred commissions                    (11.9)              (13.3)              (26.4)             (29.6)
Margin from mounted index annuities                       $     25.8          $     55.3          $     59.0          $   103.6
Common web insurance coverage liabilities                       $  8,420.5          $  7,643.4          $  8,344.4          $ 7,554.1
Margin/common web insurance coverage liabilities                      1.23  %             2.89  %             1.41  %            2.74  %
Mounted curiosity annuities
Insurance coverage coverage earnings                                 $       .3          $       .1          $       .4          $      .3
Web funding earnings                                         20.6                23.7                42.1               48.1
Insurance coverage coverage advantages                                      (.6)                 .2                 (.9)               (.5)
Curiosity credited                                            (11.3)              (12.8)              (22.7)             (26.0)
Amortization and non-deferred commissions                     (1.6)               (1.7)               (3.4)              (3.6)
Margin from mounted curiosity annuities                    $      7.4          $      9.5          $     15.5          $    18.3
Common web insurance coverage liabilities                       $  1,713.6          $  1,899.5          $  1,737.8          $ 1,925.5
Margin/common web insurance coverage liabilities                      1.73  %             2.00  %             1.78  %            1.90  %
Different annuities
Insurance coverage coverage earnings                                 $      1.8          $       .9                 3.7          $     3.1
Web funding earnings                                          5.8                 6.3                11.7               12.7
Insurance coverage coverage advantages                                     (3.0)               (5.3)               (6.8)             (12.4)
Curiosity credited                                              (.6)                (.7)               (1.2)              (1.3)
Amortization and non-deferred commissions                      (.1)                  -                 (.2)               (.1)
Margin from different annuities                             $      3.9          $      1.2          $      7.2          $     2.0
Common web insurance coverage liabilities                       $    481.6          $    506.8          $    484.8          $   509.5
Margin/common web insurance coverage liabilities                      3.24  %              .95  %             2.97  %             .79  %
Whole annuity margin                                    $     37.1          $     66.0          $     81.7          $   123.9
Common web insurance coverage liabilities                       $ 10,615.7          $ 10,049.7          $ 10,567.0          $ 9,989.1
Margin/common web insurance coverage liabilities                      1.40  %             2.63  %             1.55  %            2.48  %



Margin from mounted index annuities was $25.8 million within the second quarter of
2022 in comparison with $55.3 million within the second quarter of 2021, and was $59.0
million within the first six months of 2022 in comparison with $103.6 million within the first
six months of 2021. The lower in margin within the 2022 durations is primarily
pushed by unfavorable impacts ensuing from market situations (primarily greater
rates of interest and decrease fairness markets) in 2022 as in comparison with the 2021
durations. Accordingly, the margin from mounted index annuities decreased $26
million within the second quarter of 2022 and $36 million within the first six months of
2022, as in comparison with the identical durations in 2021. Common web insurance coverage liabilities
(whole insurance coverage liabilities much less: (i) quantities associated to reinsured enterprise;
(ii) deferred acquisition prices; (iii) current worth of future income; and (iv)
the worth of unexpired choices credited to insurance coverage liabilities) had been $8,420.5
million and $7,643.4 million within the second quarters of 2022 and 2021,
respectively, and had been $8,344.4 million and $7,554.1 million within the first six
months of 2022 and 2021, respectively, pushed by deposits and reinvested returns
in extra of withdrawals. The rise in web insurance coverage liabilities ends in
greater web funding earnings allotted, nonetheless, the earned yield was 4.20
% within the second quarter of 2022, down from 4.44 %
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within the second quarter of 2021, and was 4.22 % within the first six months of
2022 down from 4.50 % within the first six months of 2021, reflecting decrease
market yields. We consider the margin on mounted index annuities was favorably
impacted by roughly $3 million and $6 million within the three and 6 months
ended June 30, 2021, respectively, primarily attributable to persistency impacts
not directly associated to the pandemic. There have been no materials COVID-19 impacts in
the 2022 durations.

Web funding earnings and curiosity credited exclude the change in market values
of the underlying choices supporting the mounted index annuity merchandise and
corresponding offsetting quantity credited to policyholder account balances. Such
quantities had been $(80.1) million and $68.3 million within the second quarters of 2022
and 2021, respectively, and had been $(144.4) million and $106.0 million within the
first six months of 2022 and 2021, respectively.

Margin from mounted curiosity annuities was $7.4 million within the second quarter of
2022 in comparison with $9.5 million within the second quarter of 2021, and was $15.5
million within the first six months of 2022 in comparison with $18.3 million within the first
six months of 2021, pushed primarily by a discount within the dimension of the block and
decrease funding yields. Common web insurance coverage liabilities had been $1,713.6 million
within the second quarter of 2022 in comparison with $1,899.5 million within the second quarter
of 2021, and had been $1,737.8 million within the first six months of 2022 in comparison with
$1,925.5 million within the first six months of 2021, pushed by withdrawals in
extra of deposits and reinvested returns. The lower in web insurance coverage
liabilities ends in decrease web funding earnings allotted. The earned yield
decreased to 4.81 % within the second quarter of 2022 from 4.99 % within the
second quarter of 2021, and to 4.85 % within the first six months of 2022 from
5.00 % within the first six months of 2021, reflecting decrease market yields.

Margin from different annuities was $3.9 million within the second quarter of 2022
in comparison with $1.2 million within the second quarter of 2021, and was $7.2 million in
the primary six months of 2022 in comparison with $2.0 million within the first six months of
2021. The margin on this comparatively small block of enterprise is delicate to
annuitant mortality associated to contracts with life contingencies. A rise in
mortality on this block will lead to a lower in insurance coverage liabilities and
insurance coverage coverage advantages. Such mortality was greater within the 2022 durations
in comparison with the identical durations in 2021. We consider the margin from different annuities
mirrored favorable (unfavorable) COVID-19 impacts of roughly $1 million
in each the three and 6 months ended June 30, 2022, and roughly $(1)
million and $(3) million within the three and 6 months ended June 30, 2021.


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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Margin of Well being merchandise (in tens of millions of {dollars}):

                                                Three months ended            Six months ended
                                                     June 30,                     June 30,
                                                2022           2021          2022          2021
Well being margin:
Supplemental well being
Insurance coverage coverage earnings                     $   172.0       $ 170.0       $ 345.5       $ 339.8
Web funding earnings                            37.8          36.3          75.3          72.4
Insurance coverage coverage advantages                      (128.5)       (130.9)       (252.9)       (257.2)
Amortization and non-deferred commissions       (29.0)        (27.9)        (58.4)        (57.1)
Margin from supplemental well being             $    52.3       $  47.5       $ 109.5       $  97.9
Margin/insurance coverage coverage earnings                     30  %         28  %         32  %         29  %
Medicare complement
Insurance coverage coverage earnings                     $   165.1       $ 179.7       $ 331.9       $ 360.7
Web funding earnings                             1.4           1.3           2.7           2.6
Insurance coverage coverage advantages                      (115.5)       (123.0)       (225.7)       (243.0)
Amortization and non-deferred commissions       (14.6)        (12.3)        (36.3)        (36.4)
Margin from Medicare complement             $    36.4       $  45.7       $  72.6       $  83.9
Margin/insurance coverage coverage earnings                     22  %         25  %         22  %         23  %
Lengthy-term care margin
Insurance coverage coverage earnings                     $    66.4       $  65.7       $ 132.8       $ 131.4
Web funding earnings                            32.4          34.0          65.4          68.1
Insurance coverage coverage advantages                       (71.7)        (69.4)       (138.4)       (129.7)
Amortization and non-deferred commissions        (2.4)         (2.6)         (3.7)         (6.0)
Margin from long-term care                  $    24.7       $  27.7       $  56.1       $  63.8
Margin/insurance coverage coverage earnings                     37  %         42  %         42  %         49  %
Whole well being margin                         $   113.4       $ 120.9       $ 238.2       $ 245.6
Margin/insurance coverage coverage earnings                     28  %         29  %      

29% 30%




Margin from supplemental well being enterprise was $52.3 million within the second quarter
of 2022, up 10 % from the second quarter of 2021, and was $109.5 million
within the first six months of 2022, up 12 % from the primary six months of
2021, reflecting development within the block and favorable declare expertise. The margin
as a share of insurance coverage coverage earnings was 30 % within the second quarter
of 2022 in comparison with 28 % within the prior yr interval, and was 32 % in
the primary six months of 2022 in comparison with 29 % within the first six months of
2021. The supplemental well being margin continues to match favorably to the
margins skilled previous to the COVID-19 pandemic. We estimate the favorable
impacts attributable to COVID-19 on the supplemental well being margin within the three and 6
months ended June 30, 2022 had been roughly $6 million and $15 million,
respectively, and roughly $2 million and $8 million, respectively, within the
three and 6 months ended June 30, 2021, respectively, relative to our
expectations and former expertise previous to COVID-19. Declare expertise will
fluctuate from interval to interval and there's no assurance that such favorable
impacts will proceed.

Our supplemental well being merchandise (together with specified illness, accident and
hospital indemnity merchandise) usually present mounted or restricted advantages. For
instance, funds underneath most cancers insurance coverage insurance policies are usually made instantly
to, or on the course of, the policyholder following analysis of, or
therapy for, a lined sort of most cancers. Roughly three-fourths of our
supplemental well being insurance policies inforce (primarily based on coverage depend) are bought with
return of premium or money worth riders. The return of premium rider usually
supplies that after a coverage has been inforce for a specified variety of years or
upon the policyholder reaching a specified age, we can pay to the policyholder,
or a beneficiary underneath the coverage, the mixture quantity of all premiums paid
underneath the coverage, with out curiosity, much less the mixture quantity of all claims
incurred underneath the coverage. The money worth rider is much like the return of
premium rider, but in addition supplies for fee of a graded portion of the return
of premium profit if the coverage terminates earlier than the return of premium profit
is earned. Accordingly, the online money flows from these merchandise usually outcome
within the accumulation of quantities within the early years of a coverage (mirrored in our
earnings as reserve
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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will increase which is a element of insurance coverage coverage advantages) which will likely be paid
out as advantages in later coverage years (mirrored in our earnings as reserve
decreases which offset the recording of profit funds). Because the insurance policies age,
insurance coverage coverage advantages will usually enhance, however the enhance in advantages
will likely be partially offset by funding earnings earned on the amassed belongings.

Margin from Medicare complement enterprise was $36.4 million and $45.7 million in
the second quarters of 2022 and 2021, respectively, and $72.6 million and $83.9
million within the first six months of 2022 and 2021, respectively. The margin on
the Medicare complement enterprise within the 2022 and 2021 durations continued to
examine favorably to the margins skilled previous to the COVID-19 pandemic. We
estimate that the favorable impacts attributable to COVID-19 (primarily based on precise claims
incurred and persistency relative to our expectations and former expertise
previous to COVID-19) on the Medicare complement margin had been roughly $4
million and $11 million within the three and 6 months ended June 30, 2022,
respectively, and $11 million and $20 million within the three and 6 months ended
June 30, 2021, respectively. Declare expertise will fluctuate from interval to
interval and there's no assurance that such favorable impacts will proceed.
Insurance coverage coverage earnings was $165.1 million within the second quarter of 2022, down
8.1 % from the second quarter of 2021, and was $331.9 million within the first
six months of 2022, down 8.0 % from the primary six months of 2021,
reflecting decrease gross sales in latest durations partially offset by premium fee
will increase. We have now skilled a shift within the sale of Medicare complement
insurance policies to the sale of Medicare Benefit insurance policies. We obtain price earnings when
Medicare Benefit insurance policies of different suppliers are bought, which is recorded in
our Charge earnings phase. We proceed to put money into each our Medicare complement
merchandise and Medicare Benefit distribution to fulfill our prospects' wants and
preferences. For instance, we launched a brand new aggressive Medicare complement
product within the second quarter of 2022.

Medicare complement enterprise consists of each particular person and group insurance policies.
Authorities rules usually require we attain and preserve a ratio of whole
advantages incurred to whole premiums earned (excluding modifications in coverage advantages
reserves which is a element of Insurance coverage coverage advantages) of not lower than 65
% on particular person merchandise and never lower than 75 % on group merchandise.
The ratio is decided after three years from the unique issuance of the
coverage and over the lifetime of the coverage and measured in accordance with
statutory accounting ideas. Because the insurance coverage product liabilities we
set up for Medicare complement enterprise are topic to important estimates,
the last word declare legal responsibility we incur for a specific interval is prone to be
totally different than our preliminary estimate. Modifications to our estimates are mirrored in
insurance coverage coverage advantages within the interval the change is decided.

Margin from Lengthy-term care merchandise was $24.7 million within the second quarter of
2022, down 11 % from the second quarter of 2021, and was $56.1 million in
the primary six months of 2022, down 12 % from the primary six months of 2021.
The margin as a share of insurance coverage coverage earnings was 37 % within the
second quarter of 2022 in comparison with 42 % within the second quarter of 2021, and
was 42 % within the first six months of 2022 in comparison with 49 % within the
first six months of 2021. The margin in each the 2022 and 2021 durations continued
to match favorably to the margins skilled previous to the COVID-19 pandemic.
As well as, a rise in policyholder deaths attributable to the pandemic
resulted in greater than anticipated reserve releases within the first quarter of 2021.
We estimate the favorable impacts attributable to COVID-19 (primarily based on precise claims
incurred and persistency relative to our expectations and former expertise
previous to COVID-19) on the long-term care margin had been roughly $11 million
and $27 million within the three and 6 months ended June 30, 2022, respectively,
and by roughly $17 million and $42 million within the three and 6 months
ended June 30, 2021, respectively. Declare expertise will fluctuate from interval
to interval and there's no assurance that such favorable impacts will proceed.
As well as, the margin has been favorably impacted by the extra worthwhile
enterprise at present being bought and the run-off of much less worthwhile older long-term
care enterprise.
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Life insurance coverage product margin (tens of millions of {dollars}):

                                                                 Three months ended                   Six months ended
                                                                      June 30,                            June 30,
                                                                2022              2021              2022              2021
Life margin:
Curiosity-sensitive life
Insurance coverage coverage earnings                                     $    43.8          $  41.4          $    86.9          $  82.2
Web funding earnings                                            12.9             12.4               25.9             24.8
Insurance coverage coverage advantages                                       (15.8)           (20.0)             (37.0)           (42.7)
Curiosity credited                                               (11.1)           (10.8)             (22.6)           (21.3)
Amortization and non-deferred commissions                        (8.0)            (6.2)             (14.5)           (12.0)
Margin from interest-sensitive life                         $    21.8          $  16.8          $    38.7          $  31.0
Common web insurance coverage liabilities                           $ 1,020.3          $ 970.0          $ 1,016.1          $ 962.4
Curiosity margin                                             $     1.8          $   1.6          $     3.3          $   3.5
Curiosity margin/common web insurance coverage liabilities                 .71  %           .66  %             .65  %           .73  %
Underwriting margin                                         $    20.0          $  15.2          $    35.4          $  27.5
Underwriting margin/insurance coverage coverage earnings                        46  %            37  %              41  %            33  %
Conventional life
Insurance coverage coverage earnings                                     $   172.5          $ 169.4          $   342.7          $ 339.1
Web funding earnings                                            23.3             23.7               46.6             47.1
Insurance coverage coverage advantages                                      (122.6)          (129.5)            (265.0)          (270.4)
Curiosity credited                                                 (.2)             (.2)               (.3)             (.3)
Amortization and non-deferred commissions                       (15.4)           (15.5)             (34.2)           (31.4)
Promoting expense                                             (22.6)           (25.0)             (51.9)           (48.3)
Margin from conventional life                                $    35.0          $  22.9          $    37.9          $  35.8
Margin/insurance coverage coverage earnings                                     20  %            14  %              11  %            11  %
Margin excluding promoting expense/insurance coverage coverage
earnings                                                             33  %            28  %              26  %            25  %
Whole life margin                                           $    56.8          $  39.7          $    76.6          $  66.8



Margin from interest-sensitive life enterprise was $21.8 million within the second
quarter of 2022, up 30 % from the second quarter of 2021, and was $38.7
million within the first six months of 2022, up 25 % from the primary six months
of 2021. The change in margin displays much less unfavorable mortality associated to
COVID-19 within the 2022 durations, in comparison with the 2021 durations and development within the
block attributable to gross sales in latest durations. We estimate that the unfavorable impression
from loss of life claims associated to COVID-19 on the margin of this block of enterprise
was roughly nil and $3 million within the three and 6 months ended June 30,
2022, respectively, and roughly $4 million and $11 million within the three
and 6 months ended June 30, 2021, respectively.

The curiosity margin was $1.8 million and $1.6 million within the second quarters of
2022 and 2021, respectively, and was $3.3 million and $3.5 million within the first
six months of 2022 and 2021, respectively. Web funding earnings within the 2022
durations was barely greater than the 2021 durations. The rise in common web
insurance coverage liabilities ends in greater web funding earnings allotted, which
is partially offset by decrease earned yields. The earned yield was 5.06 %
and 5.11 % within the second quarters of 2022 and 2021, respectively, and was
5.10 % and 5.15 % within the first six months of 2022 and 2021,
respectively. Curiosity credited to policyholders could also be modified yearly however is
topic to minimal assured charges and, in consequence, any discount in our
earned fee is probably not totally mirrored within the fee credited to policyholders.

Web funding earnings and curiosity credited exclude the change in market values
of the underlying choices supporting the mounted index life merchandise and
corresponding offsetting quantity credited to policyholder account balances. Such
quantities had been $(12.3) million and $7.8 million within the second quarters of 2022 and
2021, respectively, and had been $(19.9) million and $12.6 million within the first six
months of 2022 and 2021, respectively.
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Margin from conventional life enterprise was $35.0 million and $22.9 million within the
second quarters of 2022 and 2021, respectively, and was $37.9 million and $35.8
million within the first six months of 2022 and 2021, respectively. Insurance coverage coverage
advantages had been $122.6 million within the second quarter of 2022, down 5.3 %
from the identical interval in 2021, and had been $265.0 million within the first six months of
2022, down 2.0 % from the identical interval in 2021. We estimate that the impression
from loss of life claims associated to COVID-19 elevated insurance coverage coverage advantages by
roughly nil and $13 million within the three and 6 months ended June 30,
2022, respectively, and by roughly $7 million and $19 million within the three
and 6 months ended June 30, 2021, respectively. As well as, amortization is
greater within the first six months of 2022, as in comparison with the identical interval in 2021,
primarily associated to modestly decrease persistency and better deferred acquisition
prices in latest durations attributable to sturdy gross sales, together with gross sales of our
direct-to-consumer merchandise by means of third social gathering distributors.
Allotted web funding earnings within the 2022 durations was corresponding to the 2021
durations, as the expansion within the block was offset by decrease common funding
yields.

Promoting expense was $22.6 million within the second quarter of 2022, down 9.6
% from the comparable interval in 2021, and was $51.9 million within the first
six months of 2022, up 7.5 % from the comparable interval in 2021. The
demand and price of tv promoting can fluctuate from interval to interval.
We're disciplined with our advertising expenditures and can enhance or lower
our advertising spend relying on costs or different components.

Collected Premiums From Annuity and Curiosity-Delicate Life Merchandise ({dollars} in
tens of millions):

                                                                   Three months ended                     Six months ended
                                                                        June 30,                              June 30,
                                                                  2022                2021              2022              2021
Collected premiums from annuity and interest-sensitive life
merchandise:
Annuities                                                   $    435.0             $ 344.3          $   803.6          $ 669.7
Curiosity-sensitive life                                           56.6                54.6              113.2            109.1
Whole collected premiums from annuity and
interest-sensitive life merchandise                            $    491.6      

$398.9 $916.8 $778.8




Collected premiums from annuity and interest-sensitive merchandise elevated 23
% within the second quarter of 2022 in comparison with the second quarter of 2021,
and 18 % within the first six months of 2022 in comparison with the primary six months
of 2021, primarily attributable to greater premium collections from mounted index annuity
merchandise.


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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Funding earnings not allotted to product strains (in tens of millions of {dollars}):

                                                              Three months ended                     Six months ended
                                                                   June 30,                              June 30,
                                                             2022                2021              2022              2021
Web funding earnings                                  $    223.9             $ 379.2          $   432.1          $ 717.4
Allotted to product strains:
Annuity                                                    (114.8)             (114.9)            (229.9)          (230.6)
Well being                                                      (71.6)              (71.6)            (143.4)          (143.1)
Life                                                        (36.2)              (36.1)             (72.5)           (71.9)
Fairness returns credited to policyholder account
balances                                                     92.4               (76.1)             164.3           (118.6)

Quantities allotted to product strains and credited to policyholder account balances

                              (130.2)             (298.7)            (281.5)          (564.2)

Quantity associated to variable curiosity entities and different non-operating objects

                                          (9.1)               (8.0)             (16.3)           (15.8)
Curiosity expense on debt                                    (15.6)              (15.6)             (31.3)           (31.1)
Curiosity expense on funding borrowings                    (4.7)               (2.5)              (7.1)            (5.2)
Bills associated to FABN program                             (7.6)                  -              (14.9)               -

Much less quantities credited to deferred compensation plans (offsetting funding earnings)

                               11.8                (6.6)              16.0            (10.3)
Whole changes                                           (25.2)              (32.7)             (53.6)           (62.4)

Funding earnings not allotted to product strains $68.5

$47.8 $97.0 $90.8




The above desk reconciles web funding earnings to funding earnings not
allotted to product strains. Such quantity will usually fluctuate from interval to
interval primarily based on the extent of prepayment earnings (together with name premiums) and
buying and selling account earnings; the efficiency of our various investments (which
are usually reported 1 / 4 in arrears); the earnings associated to the
investments underlying our COLI; and the unfold we earn from our FHLB funding
borrowing and FABN applications.

Web non-operating revenue (loss):

Here’s a abstract of our web non-operating earnings (loss) for the three and 6 months ending June 30, 2022 and 2021 (in tens of millions of {dollars}):

                                                              Three months ended                      Six months ended
                                                                   June 30,                               June 30,
                                                             2022                2021              2022               2021

Web realized funding positive aspects (losses) on gross sales and alter in allowance for credit score losses (web of associated amortization)

                                          $    (26.1)          

$24.3 $(33.2) $27.9
Web change in market worth of investments acknowledged in revenue or loss

                                                 (21.7)                5.7               (47.2)             (.7)
Truthful worth modifications associated to agent deferred
compensation plan                                            14.0                   -                36.7             13.2

Modifications in truthful worth of embedded by-product liabilities (web of corresponding amortization)

                                79.7               (44.9)              170.5             37.2

Different                                                         (.2)                 .9                  .2              1.5
Web non-operating earnings (loss) earlier than taxes           $     45.7           

$(14.0) $127.0 $79.1




Web realized funding losses, web of associated amortization, within the three and
six months ended June 30, 2022, had been $26.1 million and $33.2 million,
respectively, together with the unfavorable change within the allowance for credit score
losses of $23.7 million and $54.4 million, respectively, which was recorded in
earnings. Web realized funding positive aspects, web of associated amortization, within the
three and 6 months ended June 30, 2021, had been $24.3 million and $27.9 million,
respectively, together with the favorable change within the allowance for credit score losses
of $5.7 million and $15.3 million, respectively, which was recorded in earnings.
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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The change in market worth of investments acknowledged in earnings was a rise
(lower) of $(21.7) million and $5.7 million within the second quarters of 2022
and 2021, respectively, and $(47.2) million and $(0.7) million within the first six
months of 2022 and 2021, respectively. The change in worth will fluctuate from
interval to interval primarily based on market situations.

In the course of the first six months of 2022 and 2021, we acknowledged a rise in
earnings of $36.7 million and $13.2 million, respectively, for the
mark-to-market change within the agent deferred compensation plan legal responsibility which
was impacted by modifications within the underlying actuarial assumptions used to worth
the legal responsibility.  We acknowledge the mark-to-market change within the estimated worth of
this legal responsibility by means of earnings as assumptions change.

The truthful worth modifications in embedded by-product liabilities associated to our mounted
index annuities (web of associated amortization) elevated earnings by $170.5
million and $37.2 million within the first six months of 2022 and 2021,
respectively, ensuing from modifications within the estimated truthful worth of embedded
by-product liabilities associated to our mounted index annuities, web of associated
amortization. Such quantities embrace the impacts of modifications in market curiosity
charges used to find out the by-product's estimated truthful worth. The low cost fee
is predicated on risk-free charges (U.S. Treasury charges for comparable durations) adjusted
for our non-performance danger and danger margins for non-capital market inputs. The
enhance in U.S. Treasury charges in 2022 was the first issue within the change in
estimated truthful worth of the embedded by-product liabilities.

Different non-operating objects embrace earnings attributable to VIEs that we’re required to consolidate, web of associated quantities. These earnings aren’t indicative of, and unrelated to, the underlying fundamentals of the Firm.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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CASH AND CAPITAL RESOURCES

Outlook 2022


Market volatility adversely impacted our ends in the primary half of 2022
(particularly the lower in fairness markets, the upper fairness market
volatility and enhance in rates of interest), reducing our mounted index annuity
margin by roughly $36 million. If such market volatility persists in
future durations, we anticipate it will have directionally comparable adversarial impacts on
our ends in these durations.

For the rest of 2022, we anticipate:


•continued optimistic gross sales momentum with respect to new annualized premiums,
collected premiums and price income;
•continued web favorable COVID-19 impacts on insurance coverage product margin, however
really fizzling out over the course of the yr;
•funding earnings allotted to product strains to be comparatively flat to barely
up in comparison with 2021;
•web funding earnings not allotted to product strains to pattern decrease in 2022, as
in comparison with the elevated ranges in 2021, because the yield on various investments
moderates;
•earnings from our price earnings phase to be greater in 2022 in comparison with 2021;
•whole bills allotted and never allotted to product strains in 2022 to pattern
modestly greater than 2021 (excluding sure important objects associated to authorized
and regulatory issues, an expertise refund associated to a reinsurance settlement,
and transaction bills associated to the acquisition of Optavise) as we seize
working efficiencies, whereas additionally investing in development; and
•efficient tax fee in 2022 to be greater than 2021 primarily attributable to greater state
earnings taxes.

Within the mixture, our consolidated RBC capital degree and extra holding firm
liquidity are roughly $95 million under our goal capital ranges, however
above our danger tolerance thresholds (see "-Liquidity for Insurance coverage Operations"
under).

We anticipate free money circulation to be lower than the $380 million generated in 2021,
reflecting moderating yield on various investments and tapering of web
favorable COVID-19 impacts, capital pressure from new enterprise, and our determination
in 2021 to scale back capital and extra holding firm liquidity to focus on ranges
which contributed to greater ranges of free money circulation in 2021.

Our expectations are primarily based on our monetary mannequin, which displays our greatest
estimate assumptions of varied key variables. Given the unprecedented nature of
the COVID-19 pandemic and the present macro-economic and geopolitical
setting, the assumptions utilized in our modeling are primarily based on variables that
are inherently unpredictable, are topic to alter, and have been tough to
predict precisely in prior durations. There are numerous believable assumptions which
may lead to materially totally different projected outcomes from these utilized in our
modeling which may have an effect on our enterprise, outcomes of operations, monetary
situation and liquidity. The end result generated by the applying of up to date
assumptions could also be materially totally different from these described above.


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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Our capital construction as of June 30, 2022 and December 31, 2021 was as follows
({dollars} in tens of millions):
                                                     June 30,
                                                       2022         December 31, 2021
   Whole capital:
   Company notes payable                          $ 1,138.0      $          1,137.3
   Shareholders' fairness:
   Widespread inventory                                           1.1                     1.2
   Extra paid-in capital                         2,032.7                 2,184.2
   Accrued different complete earnings (loss)     (1,165.0)                1,947.1
   Retained earnings                                  1,343.2                 1,127.2
   Whole shareholders' fairness                         2,212.0                 5,259.7
   Whole capital                                    $ 3,350.0      $          6,397.0



The next desk summarizes sure monetary ratios as of and for the six
months ended June 30, 2022 and as of and for the yr ended December 31, 2021:
                                                                     June 30,
                                                                       2022             December 31, 2021
E book worth per frequent share                                        $    

$19.27 $43.69 E book worth per frequent share, excluding amassed different complete earnings (a)

                                         29.42                     27.52
Debt to whole capital ratios:
Company debt to whole capital                                          34.0  %                   17.8  %

Company debt to whole capital, excluding amassed different complete earnings (a)

                                          25.2  %                   25.6  %


_____________________

(a)This non-GAAP measure differs from the corresponding GAAP measure offered
instantly above, as a result of amassed different complete earnings (loss) has
been excluded from the worth of capital used to find out this
measure. Administration believes this non-GAAP measure is beneficial as a result of it removes
the volatility that arises from modifications in amassed different complete
earnings (loss). Such volatility is commonly brought on by modifications within the estimated truthful
worth of our funding portfolio ensuing from modifications on the whole market
rates of interest reasonably than the enterprise selections made by administration. Nevertheless,
this measure doesn't substitute the corresponding GAAP measure.

Liquidity for insurance coverage transactions


Our insurance coverage firms usually obtain satisfactory money flows from premium
collections and funding earnings to fulfill their obligations. Life insurance coverage,
long-term care and supplemental medical health insurance and annuity liabilities are
usually long-term in nature. Life and annuity policyholders might, nonetheless,
withdraw funds or give up their insurance policies, topic to any relevant penalty
provisions; there are usually no withdrawal or give up advantages for
long-term care insurance coverage. We actively handle the connection between the
length of our invested belongings and the estimated length of profit funds
arising from contract liabilities.

Three of the Firm's insurance coverage subsidiaries (Bankers Life, Washington Nationwide
and Colonial Penn) are members of the FHLB. As members of the FHLB, our
insurance coverage subsidiaries have the power to borrow on a collateralized foundation from
the FHLB. We're required to carry sure minimal quantities of FHLB frequent inventory
as a situation of membership within the FHLB, and extra quantities primarily based on the
quantity of the borrowings. At June 30, 2022, the carrying worth of the FHLB
frequent inventory was $75.2 million. As of June 30, 2022, collateralized borrowings
from the FHLB totaled $1.6 billion and the proceeds had been used to buy mounted
maturity securities. The borrowings are labeled as funding borrowings in
the accompanying consolidated steadiness sheet. The borrowings are collateralized
by investments with an estimated truthful worth of $2.0 billion at June 30, 2022,
that are maintained in custodial accounts for the good thing about the FHLB.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
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Within the third quarter of 2021, Bankers Life established a FABN program pursuant
to which Bankers Life might difficulty funding agreements to a Delaware statutory belief
organized in sequence (the "Belief") to generate spread-based earnings. The utmost
mixture principal quantity of funding agreements permitted to be excellent at
anybody time underneath the FABN program is $3 billion. In October 2021, Bankers Life
issued a funding settlement to a sequence of the Belief in an mixture principal
quantity of $500 million. In January 2022, Bankers Life issued two further
funding agreements, every to a sequence of the Belief, totaling $900 million. Underneath
present market situations, we anticipate the FABN program to offer roughly
100 foundation factors of annualized pre-tax unfold earnings on the notional quantity of
the funding agreements excellent, web of the expense related to the
program. The exercise associated to the funding agreements is reported in
funding earnings not allotted to product strains.

State legal guidelines usually give state insurance coverage regulatory businesses broad authority to
shield policyholders of their jurisdictions. Regulators have used this
authority up to now to limit the power of our insurance coverage subsidiaries to
pay any dividends or different quantities with out prior approval. We can't be assured
that the regulators won't search to say larger supervision and management over
our insurance coverage subsidiaries' companies and monetary affairs.

Our estimated consolidated statutory RBC ratio was 360 % at June 30, 2022,
in comparison with 386 % at December 31, 2021. Within the first six months of 2022,
the RBC ratio mirrored our estimated consolidated statutory working earnings
of $124 million and insurance coverage firm dividends (web of capital contributions)
of $84.0 million that had been paid to the holding firm. Our RBC ratio at
June 30, 2022, was 15 share factors under our focused statutory RBC ratio
of 375 % (which is equal to roughly $85 million of capital) however
above the minimal 350 % that's mirrored in our danger urge for food assertion
that we share and talk about with score businesses and insurance coverage regulators. Our
focused RBC ratio of 375 % permits for a discount within the ratio towards our
minimal threshold of 350 % in pressured market situations similar to we're
experiencing this yr. Our holding firm liquidity at June 30, 2022, was
$140.9 million which was under our minimal goal degree of $150 million (see
"-Liquidity of the Holding Firms" under). Within the mixture, our RBC capital
degree and extra holding firm liquidity had been roughly $95 million under
our goal capital ranges, however above our danger tolerance thresholds. We anticipate to
handle again to $150 million of holding firm liquidity and the 375 %
focused consolidated statutory RBC ratio over time. We consider that the 375
% RBC ratio goal continues to adequately assist our monetary power
and credit score scores and is aligned with our danger urge for food.

Our insurance coverage subsidiaries switch publicity to sure danger to others by means of
reinsurance preparations. Once we get hold of reinsurance, we're nonetheless accountable for
these transferred dangers within the occasion the reinsurer defaults on its obligations.
The failure, insolvency, incapacity or unwillingness of a number of of the
Firm's reinsurers to carry out in accordance with the phrases of its reinsurance
settlement may negatively impression our earnings or monetary place and our
consolidated statutory RBC ratio.

Monetary power scores of our insurance coverage subsidiaries


Monetary power scores offered by AM Greatest Firm ("AM Greatest"), Fitch
Rankings ("Fitch"), Moody's Investor Companies, Inc. ("Moody's") and S&P are the
score company's opinions of the power of our insurance coverage subsidiaries to pay
policyholder claims and obligations when due.

On January 26, 2022, AM Greatest upgraded the monetary power scores of our
major insurance coverage subsidiaries to "A" from "A-" and the outlook for these
scores is steady. The "A" score is assigned to firms which have an
glorious means, in AM Greatest's opinion, to fulfill their ongoing obligations to
policyholders. AM Greatest scores for the trade at present vary from "A++
(Superior)" to "F (In Liquidation)" and a few firms aren't rated. An "A++"
score signifies a superior means to fulfill ongoing obligations to
policyholders. AM Greatest has sixteen doable scores. There are two scores above
the "A" score of our major insurance coverage subsidiaries and 13 scores that
are under that score.

On December 2, 2021, Fitch affirmed its "A-" monetary power scores of our
major insurance coverage subsidiaries. The outlook for these scores stay steady. An
insurer rated "A", in Fitch's opinion, signifies a low expectation of ceased or
interrupted funds and signifies sturdy capability to fulfill policyholder and
contract obligations. This capability might, nonetheless, be extra weak to
modifications in circumstances or in financial situations than is the case for greater
scores. Fitch scores for the trade vary from "AAA Exceptionally Sturdy" to
"C Distressed" and a few firms aren't rated. Pluses and minuses present the
relative standing inside a class. Fitch has nineteen doable scores. There
are six scores above the "A-" score of our major insurance coverage subsidiaries and
twelve scores which might be under that score.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________
On September 28, 2021, Moody's affirmed its "A3" monetary power scores of
our major insurance coverage subsidiaries. The outlook for these scores stays
steady. Moody's monetary power scores vary from "Aaa" to "C". These
scores could also be supplemented with numbers "1", "2", or "3" to indicate relative
standing inside a class. In Moody's view, an insurer rated "A" presents good
monetary safety, nonetheless, sure components could also be current which suggests a
susceptibility to impairment someday sooner or later. Moody's has twenty-one
doable scores. There are six scores above the "A3" score of our major
insurance coverage subsidiaries and fourteen scores which might be under that score.

On June 21, 2019, S&P upgraded the monetary power scores of our major
insurance coverage subsidiaries to "A-" from
"BBB+" and the outlook for these scores is steady. S&P monetary power
scores vary from "AAA" to "R" and a few firms aren't rated.  An insurer
rated "A", in S&P's opinion, has sturdy monetary safety traits, however
is considerably extra prone to be affected by adversarial enterprise situations than are
insurers with greater scores. Pluses and minuses present the relative standing
inside a class.  S&P has twenty-one doable scores. There are six scores
above the "A-" score of our major insurance coverage subsidiaries and fourteen scores
which might be under that score.

Score businesses have elevated the frequency and scope of their credit score critiques
and requested further info from the businesses that they fee,
together with us. They could additionally regulate upward the capital and different necessities
employed within the score company fashions for upkeep of sure scores
ranges. We can not predict what actions score businesses might take, or what actions
we might soak up response. Accordingly, downgrades and outlook revisions associated
to us or the life insurance coverage trade might happen sooner or later at any time and
with out discover by any score company. These may enhance coverage surrenders and
withdrawals, adversely have an effect on relationships with our distribution channels,
scale back new gross sales, scale back our means to borrow and enhance our future borrowing
prices.

Liquidity of holding firms

Availability and sources and makes use of of holding firm money; Limitations on the power of insurance coverage subsidiaries to pay dividends and curiosity funds on extra debentures to holding firms; Limitations on the actions of the holding firm


At June 30, 2022, CNO, CDOC, Inc. ("CDOC", our wholly owned subsidiary and the
speedy guardian of Washington Nationwide and Conseco Life Insurance coverage Firm of
Texas ("CLTX")) and our different non-insurance subsidiaries held $140.9 million of
money and investments which was comprised of: (i) unrestricted money and money
equivalents of $104.6 million; and (ii) exchange-traded funds that put money into
mounted earnings securities of $36.3 million. Our holding firm liquidity was
roughly $10 million under our minimal goal degree, however above our danger
tolerance thresholds. We anticipate to handle again to our minimal goal degree of
$150 million over time. Discuss with "-Liquidity for Insurance coverage Operations" above
relating to our mixture capital ranges relative to our consolidated statutory
RBC ratio goal and minimal holding firm liquidity goal.

CNO and CDOC are holding firms with no enterprise operations of their very own;
they rely on their working subsidiaries for money to make principal and
curiosity funds on debt, and to pay administrative bills and earnings
taxes. CNO and CDOC obtain money from insurance coverage subsidiaries, consisting of
dividends and distributions, curiosity funds on surplus debentures and
tax-sharing funds, in addition to money from non-insurance subsidiaries consisting
of dividends, distributions, loans and advances. The principal non-insurance
subsidiaries that present money to CNO and CDOC are 40|86 Advisors, Inc., which
receives charges from the insurance coverage subsidiaries for funding companies, and CNO
Companies, LLC which receives charges from the insurance coverage subsidiaries for offering
administrative companies. The agreements between our insurance coverage subsidiaries and
CNO Companies, LLC and 40|86 Advisors, Inc., respectively, had been beforehand
permitted by the home insurance coverage regulator for every insurance coverage firm, and any
funds thereunder don't require additional regulatory approval.

The flexibility of our insurance coverage subsidiaries to pay dividends is topic to state
insurance coverage division rules and is predicated on the monetary statements of our
insurance coverage subsidiaries ready in accordance with statutory accounting
practices prescribed or permitted by regulatory authorities, which differ from
GAAP. These rules usually allow dividends to be paid from statutory
earned surplus of the insurance coverage firm with out regulatory approval for any
12-month interval in quantities equal to the larger of (or in some states, the
lesser of): (i) statutory web acquire from operations or web earnings for the prior
yr; or (ii) 10 % of statutory capital and surplus as of the top of the
previous yr. Nevertheless, as every of the speedy insurance coverage subsidiaries of CDOC
has important adverse earned surplus, any dividend funds from the
insurance coverage subsidiaries require the prior approval of the director or
commissioner of the relevant state insurance coverage division. Within the first six
months of 2022,
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________
our insurance coverage subsidiaries paid dividends to CDOC totaling $98.6 million. We
anticipate to obtain regulatory approval for future dividends from our
subsidiaries, however there will be no assurance that such funds will likely be permitted
or that the monetary situation of our insurance coverage subsidiaries won't change,
making future approvals much less possible.

CDOC holds surplus debentures from CLTX with an mixture principal quantity of
$749.6 million. Curiosity funds on these surplus debentures don't require
further approval offered the RBC ratio of CLTX exceeds one hundred pc (however do
require prior written discover to the Texas state insurance coverage division). The
estimated RBC ratio of CLTX was 312 % at June 30, 2022. CDOC additionally holds a
surplus debenture from Colonial Penn with a principal steadiness of $160.0 million.
Curiosity funds on that surplus debenture require prior approval by the
Pennsylvania state insurance coverage division. Dividends and different funds from our
non-insurance subsidiaries, together with 40|86 Advisors, Inc. and CNO Companies,
LLC, to CNO or CDOC don't require approval by any regulatory authority or different
third social gathering. Nevertheless, insurance coverage regulators might prohibit funds by our
insurance coverage subsidiaries to guardian firms in the event that they decide that such funds
may very well be adversarial to our policyholders or contractholders.

The insurance coverage subsidiaries of CDOC obtain funds to pay dividends primarily
from: (i) the earnings of their direct companies; (ii) tax sharing funds
obtained from subsidiaries (if relevant); and (iii) with respect to CLTX,
dividends obtained from subsidiaries. At June 30, 2022, the subsidiaries of CLTX
had earned surplus (deficit) as summarized under ({dollars} in tens of millions):
 Subsidiaries of CLTX       Earned surplus (deficit)        Extra info
Bankers Life               $                   297.8                 (a)
Colonial Penn                                 (442.4)                (b)


____________________
(a)Bankers Life paid dividends of $45.0 million to CLTX within the first six months
of 2022. Bankers Life might pay dividends with out regulatory approval or prior
discover for any 12-month interval if such dividends are lower than the larger of:
(i) statutory web earnings for the prior yr; or (ii) 10 % of statutory
capital and surplus as of the top of the previous yr. Dividends in extra of
these ranges require 30 days prior discover.
(b)The deficit is primarily attributable to transactions which occurred a number of years
in the past, together with a tax planning transaction and the price paid to recapture a block
of enterprise beforehand ceded to an unaffiliated insurer.

A big deterioration within the monetary situation, earnings or money circulation of
the fabric subsidiaries of CNO or CDOC for any cause may hinder such
subsidiaries' means to pay money dividends or different disbursements to CNO and/or
CDOC, which, in flip, may restrict CNO's means to fulfill debt service
necessities and fulfill different monetary obligations. As well as, we might select
to retain capital in our insurance coverage subsidiaries or to contribute further
capital to our insurance coverage subsidiaries to keep up or strengthen their surplus or
fund reinsurance transactions, and these selections may restrict the quantity
out there at our prime tier insurance coverage subsidiaries to pay dividends to the holding
firms. Within the first six months of 2022, CDOC made a capital contribution of
$14.6 million to CLTX.

To June 30, 2022there aren’t any excellent quantities underneath our $250 million
revolving credit score settlement and there aren’t any scheduled repayments of our direct company obligations till Could 2025.


Free money circulation is a measure of holding firm liquidity and is calculated as:
(i) dividends, administration charges and surplus debenture curiosity funds obtained
from our subsidiaries; plus (ii) earnings on company investments; much less (iii)
curiosity expense, company bills and web tax funds. Within the first six
months of 2022, we generated $85 million of such free money circulation. The Firm is
dedicated to deploying one hundred pc of its free money circulation into investments to
speed up worthwhile development, frequent inventory dividends and share repurchases. The
quantity and timing of future share repurchases (if any) will likely be primarily based on enterprise
and market situations and different components together with, however not restricted to, out there
free money circulation, the present worth of our frequent inventory and funding
alternatives. Free money circulation will likely be pressured within the close to time period as we handle
again to our focused capital ranges for the RBC ratio and holding firm
liquidity. Within the first six months of 2022, we repurchased 6.6 million shares of
frequent inventory for $160.0 million underneath our securities repurchase program. The
Firm had remaining repurchase authority of $206.9 million as of June 30,
2022.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________

Within the first six months of 2022, dividends declared on frequent shares totaled
$32.4 million ($0.27 per frequent share). In Could 2022the Firm elevated its quarterly frequent inventory dividend to $0.14 per share of $0.13 per share.


On January 26, 2022, AM Greatest upgraded our issuer credit score and senior unsecured
debt scores to "bbb" from "bbb-" and the outlook for these scores is steady.
In AM Greatest's view, an organization rated "bbb" has an satisfactory means to fulfill the
phrases of its obligations; nonetheless, the issuer is extra vulnerable to modifications in
financial or different situations. Pluses and minuses present the relative standing
inside a class. AM Greatest has a complete of twenty-two doable scores starting from "aaa
(Distinctive)" to "d (In default)". There are eight scores above CNO's "bbb"
score and 13 scores which might be under its score.

On December 2, 2021, Fitch affirmed its "BBB-" score on our senior unsecured
debt. The outlook for these scores stay steady. In Fitch's view, an
obligation rated "BBB" signifies that expectations of default danger are at present
low. The capability for fee of monetary commitments is taken into account satisfactory
however adversarial enterprise or financial situations usually tend to impair this
capability. Pluses and minuses present the relative standing inside a class. Fitch
has a complete of 21 doable scores starting from "AAA" to "D". There are 9
scores above CNO's "BBB-" score and eleven scores which might be under its score.

On September 28, 2021, Moody's affirmed its "Baa3" score on our senior
unsecured debt. The outlook for these scores stays steady. In Moody's view,
obligations rated "Baa" are topic to reasonable credit score danger and should possess
sure speculative traits. A score is supplemented with numerical
modifiers "1", "2" or "3" to indicate the relative standing inside a class.
Moody's has a complete of 21 doable scores starting from "Aaa" to "C". There are
9 scores above CNO's "Baa3" score and eleven scores which might be under its
score.

On June 21, 2019, S&P upgraded our senior unsecured debt score to "BBB-" from
"BB+" and the outlook for these scores is steady. In S&P's view, an obligation
rated "BBB" displays satisfactory safety parameters. Nevertheless, adversarial financial
situations or altering circumstances usually tend to result in a weakened
capability of the obligor to fulfill its monetary dedication on the duty.
Pluses and minuses present the relative standing inside a class. S&P has a complete
of twenty-two doable scores starting from "AAA (Extraordinarily Sturdy)" to "D (Cost
Default)". There are 9 scores above CNO's "BBB-" score and twelve scores
which might be under its score.

We consider that the present money out there to the holding firm, the money
flows to be generated from operations and different transactions will likely be enough
to permit us to fulfill our debt service obligations, pay company bills and
fulfill different monetary obligations. Nevertheless, our money circulation is affected by a
number of components, lots of that are outdoors of our management, together with
insurance coverage regulatory points, competitors, monetary markets and different normal
enterprise situations. We can not present assurance that we are going to possess enough
earnings and liquidity to fulfill all of our debt service necessities and different
holding firm obligations.

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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________

INVESTMENTS

To June 30, 2022amortized value, gross unrealized positive aspects, gross unrealized losses, allowance for credit score losses and estimated truthful worth of mounted maturities, out there on the market, had been as follows (in tens of millions of {dollars}):

                                                                         Gross                Gross                                   Estimated
                                                   Amortized           unrealized          unrealized          Allowance for            truthful
                                                     value                positive aspects               losses            credit score losses            worth
Funding grade (a):
Company securities                             $ 13,126.5          $     149.7          $ (1,220.7)         $      (35.8)         $ 12,019.7
United States Treasury securities and
obligations of United States authorities
firms and businesses                             168.8                  6.7                (3.2)                    -               172.3
States and political subdivisions                   2,687.4                 63.6              (276.3)                  (.9)            2,473.8
Overseas governments                                    74.6                   .2                (8.1)                  (.7)               66.0
Asset-backed securities                             1,124.6                  1.7               (72.0)                  (.2)            1,054.1
Company residential mortgage-backed securities          32.0                  1.1                   -                     -                33.1
Non-agency residential mortgage-backed
securities                                          1,188.9                  6.9              (109.6)                    -             1,086.2
Collateralized mortgage obligations                       720.4                    -               (32.9)                    -               687.5
Industrial mortgage-backed securities               2,325.2                   .9              (155.3)                    -             2,170.8
Whole funding grade mounted maturities,
out there on the market                                 21,448.4                230.8            (1,878.1)                (37.6)           19,763.5
Under-investment grade (a) (b):
Company securities                                  794.6                  1.6               (71.5)                (16.4)              708.3
States and political subdivisions                      11.6                    -                 (.4)                  (.2)               11.0

Asset-backed securities                               134.5                    -               (12.0)                    -               122.5
Non-agency residential mortgage-backed
securities                                            620.3                 62.8                (6.9)                    -               676.2
Collateralized mortgage obligations                         7.5                    -                (1.0)                    -                 6.5
Industrial mortgage-backed securities                  83.9                    -                (9.2)                    -                74.7
Whole below-investment grade mounted maturities,
out there on the market                                  1,652.4                 64.4              (101.0)                (16.6)            1,599.2

Whole mounted maturities, out there on the market $23,100.8 $295.2 $(1,979.1) $(54.2) $21,362.7

_______________

(a)Funding scores are assigned the second lowest score by Nationally
Acknowledged Statistical Score Organizations ("NRSROs") (Moody's, S&P or Fitch),
or if not rated by such corporations, the score assigned by the Nationwide Affiliation
of Insurance coverage Commissioners (the "NAIC"). NAIC designations of "1" or "2" embrace
mounted maturities usually rated funding grade (rated "Baa3" or greater by
Moody's or rated "BBB-" or greater by S&P and Fitch). NAIC designations of "3"
by means of "6" are known as below-investment grade (which usually are rated
"Ba1" or decrease by Moody's or rated "BB+" or decrease by S&P and Fitch). References
to funding grade or below-investment grade all through our consolidated
monetary statements are decided as described above.
(b)  Sure structured securities rated below-investment grade by NRSROs could also be
assigned a NAIC 1 or NAIC 2 designation primarily based on the associated fee foundation of the safety
relative to estimated recoverable quantities as decided by the NAIC. Discuss with
the desk under for a abstract of our mounted maturity securities, out there for
sale, by NAIC designations.
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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________
The NAIC evaluates the mounted maturity investments of insurers for regulatory and
capital evaluation functions and assigns securities to one in every of six credit score high quality
classes referred to as NAIC designations, that are utilized by insurers when getting ready
their annual statements primarily based on statutory accounting ideas. The NAIC
designations are usually much like the credit score high quality designations of the
NRSROs for marketable mounted maturity securities, apart from sure structured
securities. Nevertheless, sure structured securities rated under funding grade
by the NRSROs will be assigned NAIC 1 or NAIC 2 designations relying on the
value foundation of the holding relative to estimated recoverable quantities as
decided by the NAIC. The next summarizes the NAIC designations and NRSRO
equal scores:
                     NAIC Designation       NRSRO Equal Score
                            1                       AAA/AA/A
                            2                         BBB
                            3                          BB
                            4                          B
                            5                    CCC and decrease
                            6                  In or close to default




A abstract of our mounted maturity securities, out there on the market, by NAIC
designations (or for mounted maturity securities held by non-regulated entities,
primarily based on NRSRO scores) as of June 30, 2022 is as follows ({dollars} in tens of millions):
                                                           Estimated truthful       Proportion of whole
        NAIC designation             Amortized value            worth           estimated truthful worth
               1                    $      13,388.4      $       12,460.1                    58.3  %
               2                            8,665.9               7,969.8                    37.3

Whole NAIC 1 and a pair of (funding

             grade)                        22,054.3              20,429.9                    95.6
               3                              707.0                 632.2                     3.0
               4                              302.5                 265.8                     1.2
               5                               36.0                  34.8                      .2
               6                                1.0                     -                       -
Whole NAIC 3, 4, 5 and 6
(below-investment grade)                    1,046.5                 932.8                     4.4
Whole                               $      23,100.8      $       21,362.7                   100.0  %



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                   CNO FINANCIAL GROUP, INC. AND SUBSIDIARIES
                              ___________________

Mounted maturity securitiesAccessible on the market


The next desk summarizes the carrying values and gross unrealized losses
of our mounted maturity securities, out there on the market, by class as of June 30,
2022 ({dollars} in tens of millions):
                                                                                          P.c of
                                                       P.c of          Gross             gross
                                                          mounted          unrealized       unrealized
                                  Carrying worth       maturities          losses           losses
States and political
subdivisions                     $       2,484.8            11.6  %    $      276.7            14.0  %
Industrial mortgage-backed
securities                               2,245.5            10.5              164.5             8.3
Non-agency residential
mortgage-backed securities               1,762.4             8.3              116.5             5.9
Banks                                    1,718.8             8.0              180.0             9.1
Insurance coverage                                1,321.5             6.2              140.4             7.1
Utilities                                1,277.2             6.0              120.7             6.1
Healthcare/prescription drugs               1,191.8             5.6              142.0             7.2
Asset-backed securities                  1,176.6             5.5               84.0             4.2
Brokerage                                  968.7             4.5              105.4             5.3
Expertise                                 836.4             3.9              117.9             6.0
Meals/beverage                              732.6             3.4               60.2             3.0
Collateralized mortgage obligations            694.0             3.2               33.9             1.7
Vitality                                     563.1             2.6               37.7             1.9
Cable/media                                488.3             2.3               65.1             3.3
Transportation                             408.2             1.9               24.8             1.3
Actual property/REITs                          398.8             1.9               30.6             1.5
Telecom                                    357.0             1.7               14.8              .8
Capital items                              336.6             1.6               23.8             1.2
Chemical compounds                                  301.2             1.4               26.1             1.3
Client merchandise                          206.6             1.0               30.0             1.5

Different                                    1,892.6             8.9              184.0             9.3
Whole mounted maturities,
out there on the market               $      21,362.7           100.0  %    $    1,979.1           100.0  %


Under Funding Grade Securities


At June 30, 2022, the amortized value of the Firm's below-investment grade
mounted maturity securities, out there on the market, was $1,652.4 million, or 7.2
% of the Firm's mounted maturity portfolio (or $1,046.5 million, or 4.5
%, of the Firm's mounted maturity portfolio measured on credit score high quality
scores assigned by the NAIC). The estimated truthful worth of the below-investment
grade portfolio was $1,599.2 million, or 97 % of the amortized value.

Under-investment grade company debt securities usually have totally different
traits than funding grade company debt securities. Primarily based on
historic efficiency, likelihood of default by the borrower is considerably
larger for below-investment grade company debt securities and in lots of instances
severity of loss is comparatively larger as such securities are usually
unsecured and infrequently subordinated to different indebtedness of the issuer. Additionally,
issuers of below-investment grade company debt securities often have
greater ranges of debt relative to investment-grade issuers, therefore, all different
issues being equal, are usually extra delicate to adversarial financial
situations. The Firm makes an attempt to scale back the general danger associated to its
funding in below-investment grade securities, as in all investments, by means of
cautious credit score evaluation, strict funding coverage tips, and
diversification by issuer and/or guarantor and by trade.

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Web realized and unrealized losses on investments


In the course of the first six months of 2022, we acknowledged $56.9 million of realized
losses on gross sales of $1,106.0 million of mounted maturity securities, out there for
sale, together with: (i) $37.6 million associated to numerous company securities; (ii)
$10.2 million associated to non-agency residential mortgage-backed securities;
(iii) $4.2 million associated to states and political subdivisions; and (iv) $4.9
million associated to numerous different investments. Securities are usually bought at a
loss following unexpected issuer-specific occasions or situations or shifts in
perceived relative values. These causes embrace however aren't restricted to: (i)
modifications within the funding setting; (ii) expectation that the market worth
may deteriorate; (iii) our need to scale back our publicity to an asset class, an
issuer or an trade; (iv) potential or precise modifications in credit score high quality; (v)
higher match sure traits of our funding portfolio with the
corresponding traits of our insurance coverage liabilities; or (vi) modifications in
anticipated portfolio money flows.

In the course of the first six months of 2021, we acknowledged $18.2 million of realized
losses on gross sales of $310.7 million of mounted maturity securities, out there for
sale, primarily associated to numerous company securities.

The next summarizes the investments bought at a loss throughout the first six
months of 2022 which had been
constantly in an unrealized loss place exceeding 20 % of the
amortized value foundation previous to the sale for the interval
indicated ({dollars} in tens of millions):

                                                               At date of sale
                                        Quantity
                                      of issuers       Amortized value       Truthful worth
Lower than 6 months previous to sale          5           $          34.8      

$15.0




Future occasions might happen, or further info might grow to be out there, which
might necessitate future realized losses in our portfolio. Important losses
may have a cloth adversarial impact on our consolidated monetary statements in
future durations.

The next desk units forth the amortized value and estimated truthful worth of
these mounted maturities, out there on the market, with unrealized losses at June 30,
2022, by contractual maturity. Precise maturities will differ from contractual
maturities as a result of debtors might have the fitting to name or prepay obligations
with or with out penalties. Structured securities often embrace provisions
for periodic principal funds and allow periodic unscheduled funds.
                                                                     Estimated
                                                     Amortized          truthful
                                                       value            worth
                                                       ({Dollars} in tens of millions)
          Due in a single yr or much less                  $      27.7      $     

26.7

Due between one and 5 years 1,425.6 1,340.8

Due between 5 and ten years 1,820.9 1,644.9

          Due after ten years                          9,843.8        

8,471.4

          Subtotal                                    13,118.0       

11,483.8

          Structured securities                        5,371.4        
4,972.3
          Whole                                    $  18,489.4      $ 16,456.1



The next summarizes the investments in our portfolio rated below-investment
grade not deemed to have credit score losses which have been constantly in an
unrealized loss place exceeding 20 % of the associated fee foundation for the interval
indicated as of June 30, 2022 ({dollars} in tens of millions):

                         Quantity          Value       Unrealized        Estimated
                       of issuers       foundation          loss          truthful worth
Lower than 6 months         15          $ 45.0      $     (10.4)     $      34.6



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The next desk summarizes the gross unrealized losses of our mounted maturity
securities, out there on the market, by class and scores class as of June 30,
2022 ({dollars} in tens of millions):
                                                          Funding grade                      Under-investment grade
                                                                                                                                       Whole gross
                                                                                                                     B+ and            unrealized
                                                     AAA/AA/A             BBB                    BB                  under               losses
States and political subdivisions                  $   270.2          $     6.1          $          -             $      .4          $      276.7
Banks                                                   96.8               82.3                    .8                    .1                 180.0
Industrial mortgage-backed securities                  126.2               29.1                   7.9                   1.3                 164.5
Healthcare/prescription drugs                              93.1               44.1                   3.3                   1.5                 142.0
Insurance coverage                                               69.1               67.7                   2.7                    .9                 140.4
Utilities                                               59.6               58.4                   2.1                    .6                 120.7
Expertise                                              62.6               45.8                   5.8                   3.7                 117.9
Non-agency residential mortgage-backed securities       58.3               51.3                   2.3                   4.6                 116.5
Brokerage                                               40.6               61.1                   2.8                    .9                 105.4
Asset-backed securities                                 25.4               46.6                  10.5                   1.5                  84.0
Cable/media                                              6.2               48.8                   4.0                   6.1                  65.1
Meals/beverage                                           13.1               44.4                    .5                   2.2                  60.2
Vitality                                                   3.8               28.7                   5.2                     -                  37.7
Collateralized mortgage obligations                         28.1                4.8                   1.0                     -                  33.9
Actual property/REITs                                       18.5               11.1                   1.0                     -                  30.6
Client merchandise                                       16.0                9.9                   1.1                   3.0                  30.0
Retail                                                  17.0                7.7                   3.5                    .1                  28.3
Chemical compounds                                                2.4               21.7                    .8                   1.2                  26.1
Transportation                                           9.4               14.5                    .2                    .7                  24.8
Capital items                                           12.3                9.3                   1.5                    .7                  23.8
Aerospace/protection                                        4.0               18.4                     -                   1.2                  23.6
Autos                                                    3.3               16.9                   2.1                    .2                  22.5
Constructing supplies                                       3.9               14.3                   1.0                    .8                  20.0
Telecom                                                    -               14.8                     -                     -                  14.8
Metals and mining                                         .6                7.8                    .9                    .2                   9.5
Overseas governments                                      3.3                4.8                     -                     -                   8.1
Paper                                                     .6                5.9                    .1                    .8                   7.4
Leisure/resorts                                     4.2                1.2                    .3                   1.6                   7.3
United States Treasury securities and obligations
of United States authorities firms and
businesses                                                 3.2                  -                     -                     -                   3.2
Enterprise companies                                          -                 .2                   1.1                    .8                   2.1

Different                                                   33.8               14.8                   2.8                    .6                  52.0

Whole mounted maturities, out there on the market $1,085.6 $792.5 $65.3

             $    35.7          $    1,979.1



Our funding technique is to maximise, over a sustained interval and inside
acceptable parameters of high quality and danger, funding earnings and whole
funding return by means of lively strategic asset allocation and funding
administration. Accordingly, we might promote securities at a acquire or a loss to reinforce
the projected whole return of the portfolio as market alternatives change, to
replicate altering perceptions of danger, or to higher match sure traits
of our funding portfolio with the corresponding traits of our
insurance coverage liabilities.
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Structured securities


At June 30, 2022, mounted maturity investments included structured securities with
an estimated truthful worth of $5.9 billion (or 27.7 % of all mounted maturity
securities). The yield traits of structured securities usually differ
in some respects from these of conventional company fixed-income securities or
authorities securities. For instance, curiosity and principal funds on
structured securities might happen extra often, typically month-to-month. In lots of
situations, we're topic to variability within the quantity and timing of principal
and curiosity funds. For instance, in lots of instances, partial prepayments might happen
on the choice of the issuer and prepayment charges are influenced by various
components that can not be predicted with certainty, together with: the relative
sensitivity of prepayments on the underlying belongings backing the safety to
modifications in rates of interest and asset values; the supply of other
financing; a wide range of financial, geographic and different components; the timing, tempo
and proceeds of liquidations of defaulted collateral; and varied
security-specific structural issues (for instance, the compensation precedence
of a given safety in a securitization construction). As well as, the overall
quantity of funds for non-agency structured securities could also be affected by
modifications to cumulative default charges or loss severities of the associated
collateral.

The amortized value and estimated truthful worth of structured securities at June 30,
2022, summarized by sort of safety, had been as follows ({dollars} in tens of millions):
                                                                                           Estimated truthful worth
                                                                                                           P.c
                                                               Amortized                                   of mounted
Kind                                                              value              Quantity                maturities
Asset-backed securities                                       $ 1,259.1          $  1,176.6                        5.5  %
Company residential mortgage-backed securities                      32.0                33.1                         .2
Non-agency residential mortgage-backed securities               1,809.2             1,762.4                        8.3
Collateralized mortgage obligations                                   727.9               694.0                        3.2
Industrial mortgage-backed securities                           2,409.1             2,245.5                       10.5

Whole structured securities                                   $ 6,237.3          $  5,911.6                       27.7  %



Residential mortgage-backed securities ("RMBS") embrace transactions
collateralized by agency-guaranteed and non-agency mortgage obligations.
Non-agency RMBS investments are primarily categorized by underlying borrower
credit score high quality: Prime, Alt-A, Non-Certified Mortgage ("Non-QM"), and Subprime.
Prime debtors usually default with the bottom frequency, Alt-A and Non-QM
default at greater charges, and Subprime debtors default with the best
frequency.  Along with borrower credit score classes, RMBS investments embrace
Re-Performing Mortgage ("RPL") and Credit score Threat Switch ("CRT") transactions.  RPL
transactions embrace debtors with prior issue assembly the unique
mortgage phrases and had been subsequently modified, leading to a sustainable
payback association.  CRT securities are collateralized by Authorities-Sponsored
Enterprise ("GSE") conforming mortgages and Prime debtors, however with out an
company assure towards default losses.

Industrial mortgage-backed securities ("CMBS") are secured by industrial actual
property mortgages, usually earnings producing properties which might be managed for
revenue. Property varieties embrace, however aren't restricted to, multi-family dwellings
together with residences, retail facilities, resorts, eating places, hospitals, nursing
houses, warehouses, and workplace buildings. Whereas most CMBS have name safety
options whereby underlying debtors might not prepay their mortgages for said
durations of time with out incurring prepayment penalties, recoveries on defaulted
collateral might lead to involuntary prepayments.


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INVESTMENTS IN VARIABLE HOLDER ENTITIES


The next desk supplies supplemental details about the revenues and
bills of the VIEs which have been consolidated in accordance with
authoritative steering, after giving impact to the elimination of our funding
within the VIEs and funding administration charges earned by a subsidiary of the Firm
({dollars} in tens of millions):

                                                         Three months ended                        Six months ended
                                                              June 30,                                 June 30,
                                                       2022                 2021                2022                2021
Revenues:
Web funding earnings - policyholder and different
special-purpose portfolios                      $     12.8               $   11.7          $    23.6             $   23.5
Charge income and different earnings                           1.1                    1.4                2.5                  2.7
Whole revenues                                        13.9                   13.1               26.1                 26.2
Bills:
Curiosity expense                                       7.5                    5.9               13.2                 11.8
Different working bills                                .7                     .4                1.1                   .8
Whole bills                                         8.2                    6.3               14.3                 12.6
Earnings earlier than web funding positive aspects (losses) and
earnings taxes                                           5.7                    6.8               11.8                 13.6
Web funding positive aspects (losses)                         (7.0)                   1.0              (10.2)                 5.1

Earnings (loss) earlier than earnings taxes               $     (1.3)              $    7.8          $     1.6             $   18.7




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Extra Info on Investments Held by VIEs


The next desk summarizes the carrying values and gross unrealized losses
of the investments held by the VIEs by class as of June 30, 2022 ({dollars} in
tens of millions):

                                                                                        P.c of
                                                        P.c           Gross           gross
                                                        of mounted       unrealized       unrealized
                                  Carrying worth       maturities        losses           losses
   Expertise                    $         136.0           12.3  %    $       7.3           12.1  %
   Healthcare/prescription drugs              126.2           11.4               7.4           12.2
   Cable/media                             122.8           11.1               6.7           11.1
   Meals/beverage                            81.7            7.4               4.9            8.1
   Capital items                            61.4            5.5               3.4            5.7
   Chemical compounds                                61.2            5.5               2.5            4.1
   Brokerage                                55.7            5.0               2.9            4.8
   Constructing supplies                       53.9            4.9               2.6            4.3
   Paper                                    47.6            4.3               2.3            3.8
   Client merchandise                        46.6            4.2               3.4            5.6
   Utilities                                38.2            3.4               2.4            4.0
   Transportation                           36.0            3.3               2.2            3.6
   Aerospace/protection                        35.4            3.2               1.6            2.6
   Insurance coverage                                33.6            3.0               1.7            2.8
   Autos                                    33.5            3.0               2.2            3.6
   Enterprise companies                        23.1            2.1               1.6            2.6
   Retail                                   16.6            1.5                .7            1.2
   Banks                                    12.7            1.1                .5             .8

   Different                                    85.5            7.8               4.2            7.0
   Whole                         $       1,107.7          100.0  %    $      60.5          100.0  %



The next desk units forth the amortized value and estimated truthful worth of
these investments held by the VIEs with unrealized losses at June 30, 2022, by
contractual maturity. Precise maturities will differ from contractual maturities
as a result of debtors might have the fitting to name or prepay obligations with or
with out penalties.

                                                                      Estimated
                                                     Amortized          truthful
                                                        value            worth
                                                       ({Dollars} in tens of millions)
          Due after one yr by means of 5 years    $      635.5      $   597.5
          Due after 5 years by means of ten years          537.7          503.0

          Whole                                    $    1,173.2      $ 1,100.5



There have been no investments bought at a loss throughout the first six months of 2022
which had been constantly in an unrealized loss place exceeding 20 %
of the amortized value foundation previous to the sale.

There have been no investments in our portfolio rated under funding grade not deemed to have credit score losses that had been constantly in an unrealized loss place larger than 20% of value foundation.

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NEW ACCOUNTING STANDARDS

See “Lately Issued Accounting Requirements” within the Notes to the Consolidated Monetary Statements for a dialogue of lately issued accounting requirements.

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