AM Best Affirms Credit Ratings of CNO Financial Group, Inc. and Its Life/Health Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the life/health insurance subsidiaries of CNO Financial Group, Inc. (headquartered in Carmel, IN) [NYSE: CNO]. These subsidiaries are referred to collectively as CNO Financial Group (CNO). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) and the Long-Term Issue Credit Ratings (Long-Term IRs) of CNO Financial Group, Inc. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the companies and Long-Term IRs.)

The ratings reflect CNO’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The rating affirmations primarily reflect the stable and consistently diversified operating performance supported by favorable premium growth trends. The company’s move to improve the capital efficiency of its operating company, Bankers Life and Casualty Company, through its reinsurance with newly formed affiliate, CNO Bermuda Re, also factors into the long-term credit ratings. This transaction included $6.2 billion of in-force fixed index annuity (FIA) statutory reserves in addition to new FIA business. CNO has a history of using reinsurance strategically to manage the risks on its operating companies’ balance sheets.

CNO has a well-diversified product portfolio where its broad set of distribution channels offer a wide array of retirement, life and accident and health products. AM Best acknowledges that these markets are very competitive; however, CNO has carved out a competitive position through its diversified distribution and enhanced technological capabilities. Its recent formation of a Bermuda captive was done with an extensive look at the potential risks involved. AM Best views CNO’s risk management capabilities as appropriate, which includes stress testing scenarios and measurement of risks to identify, manage and mitigate its risks.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following key life/health subsidiaries of CNO Financial Group, Inc.:

• Bankers Life and Casualty Company
• Colonial Penn Life Insurance Company
• Bankers Conseco Life Insurance Company
• Washington National Insurance Company

The following Long-Term IRs have been affirmed with stable outlooks.

CNO Financial Group, Inc.—

-- “bbb” (Good) on $500 million 5.25% senior unsecured notes, due 2025

-- “bbb” (Good) on $500 million 5.25% senior unsecured notes, due 2029

-- “bbb-” (Good) on $150 million 5.125% subordinated debentures, due 2060

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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