CNO Financial Group, Inc., a Delaware corporation ("CNO"), is a holding
company for a group of insurance companies operating throughout the United States
that develop, market and administer health insurance, annuity, individual life
insurance and other insurance products. Such terms, when used to describe insurance
business and products, refer to the insurance business and products of CNOs
insurance subsidiaries.
The Company manages its business through the following operating segments:
Bankers Life, Washington National and Colonial Penn, which are defined on the
basis of product distribution; and corporate operations, comprised of holding
company activities and certain noninsurance company businesses. The Company’s
insurance segments are described below:
Bankers Life, which markets and distributes Medicare supplement insurance, interest-sensitive
life insurance, traditional life insurance, fixed annuities and long-term care
insurance products to the middle-income senior market through a dedicated field
force of career agents, financial and investment advisors, and sales managers
supported by a network of community-based sales offices. The Bankers Life segment
includes primarily the business of Bankers Life and Casualty Company ("Bankers
Life"). Bankers Life also has various distribution and marketing agreements
with other insurance companies to use Bankers Lifes career agents to distribute
Medicare Advantage and prescription drug plans ("PDP") products in
exchange for a fee.
Washington National, which markets and distributes supplemental health (including
specified disease, accident and hospital indemnity insurance products) and life
insurance to middle-income consumers at home and at the worksite. These products
are marketed through Performance Matters Associates of Texas, Inc. ("PMA",
a wholly owned subsidiary) and through independent marketing organizations and
insurance agencies including worksite marketing. The products being marketed
are underwritten by Washington National Insurance Company ("Washington
National"). This segments business also includes certain closed blocks
of annuities and Medicare supplement policies which are no longer being actively
marketed by this segment and were primarily issued or acquired by Washington
National.
Colonial Penn, which markets primarily graded benefit and simplified issue life
insurance directly to customers in the senior middle-income market through television
advertising, direct mail, the internet and telemarketing. The Colonial Penn
segment includes primarily the business of Colonial Penn Life Insurance Company
("Colonial Penn").
As further described in the note to the consolidated financial statements entitled
"Sale of Subsidiary", we sold Conseco Life Insurance Company ("CLIC")
on July 1, 2014. The business of CLIC primarily related to traditional and interest-sensitive
life products. In periods prior to 2014, we had an Other CNO Business segment
comprised of the long-term care business that was ceded effective December 31,
2013 and the overhead expense of CLIC that was expected to continue after the
completion of the sale. Beginning on January 1, 2014: (i) the overhead expense
of CLIC that was expected to continue after the completion of the sale was reallocated
primarily to the Bankers Life and Washington National segments; and (ii) there
was no longer an Other CNO Business segment.
Our mission is to be the recognized market leader in providing financial security
for the protection and retirement needs of middle-income American working families
and retirees. Our strategic plans are focused on continuing to grow and deliver
long-term value for all our stakeholders. Specifically, we will focus on the
following priorities:
Growth
Focus on initiatives that drive sales including lead programs, new products,
agent recruitment and retention
Expand offering middle-market consumers a range of investment and planning solutions
Exploring non-organic growth opportunities that are focused on the middle market,
fill product gaps, expand our distribution and geographic footprint and/or enhance
agent recruiting
Increase profitability and return on equity
Maintain our strong capital position and favorable financial metrics
Continue to increase our return on equity
Effectively manage risk and deploy capital
Active enterprise risk management process
Continue to cost effectively repurchase our common stock
Maintain a competitive dividend payout ratio
Further enhance the customer experience and agent productivity
Completion and implementation of new tools to be used by our distribution
force
Further development of capabilities for generating and acting on prospect/customer
data insights making it easier to sell and deliver service
Reduce long-term care exposure by approximately one-half over the next three
to six years
Drive growth of other lines of business
Evaluate reinsurance and/or other potential solutions
Continue to invest in talent
Expanded leadership development programs
Emphasis on skills and experiences that are aligned with our priorities
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