CNO Financial Group, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Data Security
Employee Diversity & Inclusion
Business Ethics
Professional Integrity
Transparent Information & Fair Advice for Customers
Incorporation of Environmental, Social and Governance Factors in Investment Management
Policies Designed to Incentivize Responsible Behavior
Environmental Risk Exposure
Systemic Risk Management

Building an inclusive, representative workforce is a significant priority; Diversity, equity and inclusion (DE&I) is one of CNO’s highest corporate values.
In 2022, $300 million was funded in impact investments (exceeding a $100 million goal) in municipal bonds, green/sustainable bonds, and impact funds addressing environmental issues and promoting health and well-being.

Associates are required to promptly report any suspected or actual violations of law, the Code of Conduct, or other company policies; Reports can be made to contacts listed in the Code of Conduct, including a 24/7 third-party managed ethics hotline.

Maintaining a best-in-class cybersecurity program in the face of evolving risks.
Managing capital- and liquidity-related risks associated with systemic non-insurance activities.

Holistic information security management strategy including comprehensive security policies, security awareness programs, and advanced layered defenses; Regular assessments of data security program and risks to drive improvements.
ERM framework encompassing all entities; Stress tests of capital and liquidity under a range of adverse scenarios.

Frameworks Used: SASB

In 2022, achieved commitment to reducing scope 1 and 2 greenhouse gas emissions by 25% by 2030, eight years ahead of goal
Integrated ESG principles into investment process, including measuring carbon footprint of investment portfolio and funding approximately $158 million in new impact investments

Continued to offer annual cash incentives or sales incentive programs to all associates
Invested in a new well-being platform launched in January 2024
Enhanced paid time-off benefits by expanding bereavement time off, increasing paternal and maternity leave, and adding two new Company-paid holidays for 2024
Offered flexible work arrangements for the vast majority of associates
Maintained corporate social responsibility metrics in Annual Cash Incentive/P4P Plan
Approximately $2.5 million in total, local community impact from philanthropic efforts of CNO, associates, and insurance agents

Adopted a new Clawback Policy, effective October 2, 2023, covering each individual who serves or served as an executive officer from and after October 2, 2023
Shareholders expressed strong support for executive compensation design at 2023 Annual Meeting, with over 96% of votes cast in favor of the non-binding advisory resolution on executive compensation
Board unanimously approved the Fifth Amended and Restated Section 382 Rights Plan

Insurance industry faced significant expense-related headwinds in 2023 from higher inflation and regulatory administration
Uncertainty related to the adoption of a new accounting standard related to targeted improvements to the accounting for long-duration insurance contracts, which became effective on January 1, 2023
Potential IRS challenge to the Tax Benefits
Potential effects on liquidity due to the Fifth Amended Rights Plan
Potential impact on value due to the Fifth Amended Rights Plan
Potential anti-takeover effect of the Fifth Amended Rights Plan

Remained focused on balancing expense discipline and operating efficiency against continued investments to drive profitable growth and enhance technology capabilities and customer service
Disciplined expense management resulted in a full-year expense ratio, excluding significant items, of 19.4%, which aligned with stated guidance for the year
Fifth Amended Rights Plan designed to prevent certain transfers of Company 382 Securities that would adversely affect ability to utilize tax net operating losses (NOLs) and certain other tax losses (Tax Benefits)

Frameworks Used: TCFD