CNO Financial Group, Inc.

Non-Operating Items

Net realized investment losses in 3Q26 were $48.3 million, including the unfavorable change in the allowance for credit losses of $5.4 million. Net realized investment losses in 3Q25 were $8.8 million, including the favorable change in the allowance for credit losses of $8.0 million.

During 3Q26 and 3Q25, we recognized a decrease in earnings of $16.4 million and an increase of $5.8 million, respectively, due to the net change in market value of investments.

During 3Q26 and 3Q25, we recognized an increase in earnings of $69.7 million and a decrease of $18.1 million, respectively, resulting from changes in the estimated fair value of embedded derivative liabilities and market risk benefits related to our fixed indexed annuities. Such amounts include the impacts of changes in market interest rates and equity impacts used to determine the estimated fair values of the embedded derivatives and market risk benefits and the unfavorable impact resulting from our comprehensive annual actuarial review of $11.2 million and $14.3 million in 3Q26 and 3Q25, respectively.

During 3Q26 and 3Q25, we incurred $10.1 million and $7.2 million, respectively, of expense related to TechMod, our technology modernization initiative that began in 2025.

During 3Q26, other non-operating items primarily included a $10.0 million mark-to-market change in the agent deferred compensation plan liability, which was impacted by changes in the underlying actuarial assumptions used to value the liability. We recognize the mark-to-market change in the estimated value of this liability through earnings as assumptions change.

During 3Q25, we recognized a $96.7 million non-operating charge for the impairment of goodwill and other assets related to the acquisitions of Web Benefits Design and DirectPath in 2019 and 2021, respectively. This reflected macroeconomic uncertainty and market conditions including the decline in the value of comparable publicly traded companies and revised financial projections for the business.

During 3Q26, we recognized a $22.1 million valuation allowance on deferred tax assets associated with capital loss carryforwards. The valuation allowance reflects realized capital losses generated primarily from asset sales in anticipation of executing the internal reinsurance transaction on October 1, 2026, portfolio optimization activities, and from capital loss allocations from partnership investments together with a reduction in unrealized capital gains available to support realization of those losses as interest rates increased.