CNO Financial Group Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Investments in Variable Interest Entities
The following table provides supplemental information about the revenues and expenses of the VIEs which have been consolidated in accordance with authoritative guidance, after giving effect to the elimination of our investment in the VIEs and investment management fees earned by a subsidiary of the Company (dollars in millions):
| Three months ended · Nine months ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| 2024 | 2023 | 2024 | 2023 | |
| Revenues: | ||||
| Net investment income – policyholder and other special-purpose portfolios | $8.8 | $21.3 | $34.7 | $65.7 |
| Fee revenue and other income | .6 | 1.0 | 2.2 | 3.5 |
| Total revenues | 9.4 | 22.3 | 36.9 | 69.2 |
| Expenses: | ||||
| Interest expense | 7.9 | 17.5 | 29.6 | 52.6 |
| Other operating expenses | 1.6 | .3 | 2.5 | 1.4 |
| Total expenses | 9.5 | 17.8 | 32.1 | 54.0 |
| Income before net investment losses and income taxes | (.1) | 4.5 | 4.8 | 15.2 |
| Net investment losses | (6.8) | (.2) | (12.5) | (4.2) |
| Income (loss) before income taxes | $(6.9) | $4.3 | $(7.7) | $11.0 |
Supplemental Information on Investments Held by VIEs
The following table summarizes the carrying values and gross unrealized losses of the investments held by the VIEs by category as of September 30, 2024 (dollars in millions):
| Carrying value | Percentof fixedmaturities | Grossunrealizedlosses | Percent ofgrossunrealizedlosses | |
|---|---|---|---|---|
| Healthcare/pharmaceuticals | $30.9 | 12.4% | $1.3 | 17.3% |
| Cable/media | 30.9 | 12.3 | 1.7 | 22.6 |
| Technology | 29.7 | 11.9 | .5 | 6.4 |
| Brokerage | 21.2 | 8.5 | — | .2 |
| Food/beverage | 20.4 | 8.2 | 1.6 | 21.5 |
| Building materials | 16.7 | 6.7 | .1 | .7 |
| Chemicals | 13.0 | 5.2 | .2 | 2.4 |
| Consumer products | 11.9 | 4.8 | .6 | 8.5 |
| Paper | 11.8 | 4.7 | .2 | 2.0 |
| Autos | 10.5 | 4.2 | .2 | 2.3 |
| Transportation | 10.1 | 4.0 | .1 | 1.5 |
| Business services | 9.6 | 3.8 | .7 | 9.6 |
| Utilities | 8.2 | 3.3 | .1 | 1.4 |
| Insurance | 7.8 | 3.1 | — | — |
| Capital goods | 7.7 | 3.1 | .1 | 1.4 |
| Metals and mining | 3.6 | 1.4 | — | .1 |
| Other | 6.1 | 2.4 | .2 | 2.1 |
| Total | $250.1 | 100.0% | $7.6 | 100.0% |
The following table sets forth the amortized cost and estimated fair value of those investments held by the VIEs with unrealized losses at September 30, 2024, by contractual maturity. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
| Amortizedcost | Estimatedfairvalue | |
|---|---|---|
| (Dollars in millions) | ||
| Due in one year or less | $9.1 | $8.4 |
| Due after one year through five years | 143.2 | 134.6 |
| Due after five years through ten years | 5.2 | 5.2 |
| Total | $157.5 | $148.2 |
The following summarizes the investments held by the VIEs sold at a loss during the first nine months of 2024 which had been continuously in an unrealized loss position exceeding 20 percent of the amortized cost basis prior to the sale for the period indicated (dollars in millions):
| At date of sale | |||
|---|---|---|---|
| Numberof issuers | Amortized cost | Fair value | |
| Less than 6 months prior to sale | 12 | $13.5 | $10.4 |
| Greater than or equal to 6 months and less than 12 months prior to sale | 5 | 11.6 | 7.3 |
| Greater than 12 months prior to sale | 7 | 12.6 | 6.8 |
| $37.7 | $24.5 | ||
There were no investments held by the VIEs rated below-investment grade not deemed to have credit losses which had been continuously in an unrealized loss position exceeding 20 percent of the cost basis as of September 30, 2024.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.