BUSINESS SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Operating Information by Segment

Operating information by segment is as follows (dollars in millions):


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Revenues:
Annuity:
Insurance policy income	$	8.4	$	9.3	$	18.2	$	16.6
Net investment income	155.3		140.5		303.3		275.0
Total annuity revenues	163.7		149.8		321.5		291.6
Health:
Insurance policy income	412.5		403.6		824.5		802.0
Net investment income	75.9		75.1		151.0		149.4
Total health revenues	488.4		478.7		975.5		951.4
Life:
Insurance policy income	230.4		228.6		459.3		451.3
Net investment income	37.8		36.7		75.4		73.2
Total life revenues	268.2		265.3		534.7		524.5
Change in market values of the underlying options supporting the fixed indexed annuity and life products (offset by market value changes credited to policyholder balances)	79.5		38.9		9.3		178.6
Investment income not allocated to product lines	128.2		108.3		242.0		179.9
Fee revenue and other income:
Fee revenue	33.5		32.0		80.9		82.5
Amounts netted in expenses not allocated to product lines	1.2		1.3		2.2		2.5
Total segment revenues	$	1,162.7	$	1,074.3	$	2,166.1	$	2,211.0

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	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Expenses:
Annuity:
Insurance policy benefits	$	10.0	$	(8.4)	$	20.3	$	2.9
Interest credited	73.4		61.2		141.7		119.5
Amortization and non-deferred commissions	25.5		20.9		50.2		41.1
Total annuity expenses	108.9		73.7		212.2		163.5
Health:
Insurance policy benefits	313.3		302.3		633.6		610.8
Amortization and non-deferred commissions	41.1		40.5		81.7		81.7
Total health expenses	354.4		342.8		715.3		692.5
Life:
Insurance policy benefits	144.5		144.6		282.6		288.6
Interest credited	13.8		12.4		26.8		24.9
Amortization and non-deferred commissions	27.6		24.3		53.6		47.8
Advertising expense	18.7		20.9		39.9		45.5
Total life expenses	204.6		202.2		402.9		406.8
Allocated expenses	149.4		154.6		310.6		316.2
Expenses not allocated to product lines	26.5		18.8		47.8		36.8
Market value changes of options credited to fixed indexed annuity and life policyholders	79.5		38.9		9.3		178.6
Amounts netted in investment income not allocated to product lines:
Interest expense	53.3		54.4		107.5		102.7
Interest credited	26.9		10.4		54.0		17.6
Impact of annual option forfeitures related to fixed indexed annuity surrenders	(1.5)		(6.0)		(5.0)		(12.2)
Amortization	0.8		0.5		1.6		0.9
Other expenses	14.9		4.2		12.1		13.8
Expenses netted in fee revenue:
Commissions and other operating expenses	32.7		31.2		80.9		70.4
Total segment expenses	1,050.4		925.7		1,949.2		1,987.6
Pre-tax measure of profitability:
Annuity margin	54.8		76.1		109.3		128.1
Health margin	134.0		135.9		260.2		258.9
Life margin	63.6		63.1		131.8		117.7
Total insurance product margin	252.4		275.1		501.3		504.7
Allocated expenses	(149.4)		(154.6)		(310.6)		(316.2)
Income from insurance products	103.0		120.5		190.7		188.5
Fee income margin	0.8		0.8		—		12.1
Investment income not allocated to product lines	33.8		44.8		71.8		57.1
Expenses not allocated to product lines	(25.3)		(17.5)		(45.6)		(34.3)
Operating earnings before taxes	112.3		148.6		216.9		223.4
Income tax expense on operating income	24.8		34.0		48.3		51.3
Net operating income	$	87.5	$	114.6	$	168.6	$	172.1

Schedule of Reconciliation of Segment Revenues and Expenses to Consolidated Revenues and Expenses and Net Income (Loss)

A reconciliation of segment revenues and expenses to consolidated revenues and expenses and net income is as follows (dollars in millions):


	Three months ended				Six months ended
	June 30,				June 30,
	2025		2024		2025		2024
Total segment revenues	$	1,162.7	$	1,074.3	$	2,166.1	$	2,211.0
Total investment gains (losses)	(18.4)		(17.2)		(25.2)		(9.4)
Revenues related to earnings attributable to VIEs	7.2		9.1		14.7		21.1
Consolidated revenues	1,151.5		1,066.2		2,155.6		2,222.7

Total segment expenses	1,050.4		925.7		1,949.2		1,987.6
Insurance policy benefits - fair value changes in embedded derivative liabilities	(25.2)		(16.8)		44.4		(80.8)
Expenses attributable to VIEs	7.1		10.2		14.5		22.6
Fair value changes related to agent deferred compensation plan	—		(3.5)		—		(3.5)

Other expenses	1.2		—		1.7		—
Consolidated expenses	1,033.5		915.6		2,009.8		1,925.9
Income before tax	118.0		150.6		145.8		296.8

Income tax expense	26.2		34.3		32.5		68.2

Net income	$	91.8	$	116.3	$	113.3	$	228.6

Schedule of Balance Sheet Information, by Segment

Segment balance sheet information is as follows (dollars in millions):


	June 30		December 31
	2025		2024
Assets:
Annuity	$	13,000.0	$	13,001.4
Health	9,093.2		9,116.7
Life	4,193.7		4,194.7
Investments not allocated to product lines	10,419.0		10,599.1
Assets of our non-life companies included in the fee income segment	232.3		257.7
Assets of our other non-life companies	390.9		679.7
Total assets	$	37,329.1	$	37,849.3
Liabilities:
Annuity	$	13,935.6	$	13,539.6
Health	9,521.7		9,490.7
Life	4,359.9		4,311.2
Liabilities associated with investments not allocated to product lines (a)	6,747.4		7,541.1
Liabilities of our non-life companies included in the fee income segment	31.8		37.0
Liabilities of our other non-life companies	210.0		414.5
Total liabilities	$	34,806.4	$	35,334.1

___________

(a) Includes investment borrowings, policyholder account balances related to funding agreements, borrowings related to VIEs and notes payable - direct corporate obligations.

CNO Financial Group, Inc. 10-Q