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As Of Filer Filing For·On·As Docs:Size 2/11/20 CNO Financial Group, Inc. 8-K:2,9 2/11/20 15:11M |
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Exhibit |
• | Net income of $409.4 million (including $194 million tax benefit related to a tax planning strategy) compared to a net loss of $315.0 million in 2018 (including the net loss of $661 million related to completion of a long-term care reinsurance transaction) |
• | Operating income (1) per share up 6%, as adjusted to remove the earnings from the long-term care business that was ceded in 3Q18 |
• | Life
and health sales were up 5%; annuity collected premiums were up 12% from 2018 |
• | At December 31, 2019, book value per common share was $31.58, up 52% from $20.78 at December 31, 2018 |
• | At December 31, 2019, book value per diluted share, excluding accumulated other comprehensive income (2), was $22.09, up 13% from $19.52 at December 31, 2018 |
• | Returned
$319 million to shareholders in share repurchases ($252 million) and dividends ($67 million) |
• | Net income of $278.0 million compared to $28.3 million in 4Q18 |
• | Operating
income (1) per share was up 44% from 4Q18 |
• | Life and health sales were up 9% from 4Q18 |
• | Annuity collected premiums were down 9% from 4Q18, reflecting pricing discipline and a difficult comparable from prior year |
• | Recorded a $194 million tax benefit from a tax strategy that will enable the
Company to utilize all of the net operating losses ("NOLs") that would have otherwise expired in 2023, resulting in the elimination of the valuation allowance related to those NOLs |
• | Returned $91 million to shareholders in share repurchases ($75 million) and dividends ($16 million) |
Three
months ended | |||||||
2019 | 2018 | ||||||
(Dollars in millions, except per share data) | |||||||
Net operating income (1) | $ | 78.6 | $ | 59.8 | |||
Net
realized investment gains (losses) from sales and impairments (net of related amortization) | 7.1 | (10.5 | ) | ||||
Net change in market value of investments recognized in earnings | (2.6 | ) | (27.5 | ) | |||
Fair
value changes in embedded derivative liabilities (net of related amortization) | 13.4 | (.8 | ) | ||||
Fair value changes related to agent deferred compensation plan | 2.5 | .9 | |||||
Other | (13.3 | ) | 1.8 | ||||
Non-operating
income (loss) before taxes | 7.1 | (36.1 | ) | ||||
Income tax expense (benefit): | |||||||
On non-operating income (loss) | 1.4 | (7.6 | ) | ||||
Valuation
allowance for deferred tax assets and other tax items | (193.7 | ) | 3.0 | ||||
Net non-operating income (loss) | 199.4 | (31.5 | ) | ||||
Net income | $ | 278.0 | $ | 28.3 | |||
Per
diluted share: | |||||||
Net operating income | $ | .52 | $ | .36 | |||
Net realized investment gains (losses) from sales and impairments (net of related amortization and taxes) | .04 | (.05 | ) | ||||
Net
change in market value of investments recognized in earnings (net of taxes) | (.01 | ) | (.13 | ) | |||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | .07 | — | |||||
Fair
value changes related to agent deferred compensation plan (net of taxes) | .01 | — | |||||
Valuation allowance for deferred tax assets and other tax items | 1.28 | (.02 | ) | ||||
Other | (.07 | ) | .01 | ||||
Net
income | $ | 1.84 | $ | .17 |
Three
months ended | |||||||||||||||
2019 | 2018 | ||||||||||||||
Dollars in | Per diluted | Dollars
in | Per diluted | ||||||||||||
millions | share | millions | share | ||||||||||||
Net operating income (1) | $ | 78.6 | $ | .52 | $ | 59.8 | $ | .36 | |||||||
Significant
items | (7.9 | ) | (.05 | ) | 15.1 | .09 | |||||||||
Net operating earnings, excluding significant items | $ | 70.7 | $ | .47 | $ | 74.9 | $ | .45 |
ASSETS | |||||||
Investments: | |||||||
Fixed maturities, available for sale, at fair value (amortized cost: 2019 - $19,179.5; 2018 - $18,107.8) | $ | 21,295.2 | $ | 18,447.7 | |||
Equity
securities at fair value (cost: 2019 - $44.2; 2018 - $319.8) | 44.1 | 291.0 | |||||
Mortgage loans | 1,566.1 | 1,602.1 | |||||
Policy loans | 124.5 | 119.7 | |||||
Trading
securities | 243.9 | 233.1 | |||||
Investments held by variable interest entities | 1,188.6 | 1,468.4 | |||||
Other invested assets | 1,118.5 | 833.4 | |||||
Total
investments | 25,580.9 | 22,995.4 | |||||
Cash and cash equivalents - unrestricted | 580.0 | 594.2 | |||||
Cash and cash equivalents held by variable interest
entities | 74.7 | 62.4 | |||||
Accrued investment income | 205.9 | 205.2 | |||||
Present value of future profits | 275.4 | 343.6 | |||||
Deferred
acquisition costs | 1,215.5 | 1,322.5 | |||||
Reinsurance receivables | 4,785.7 | 4,925.4 | |||||
Income tax assets, net | 432.6 | 630.0 | |||||
Assets
held in separate accounts | 4.2 | 4.4 | |||||
Other assets | 476.0 | 356.7 | |||||
Total assets | $ | 33,630.9 | $ | 31,439.8 | |||
LIABILITIES
AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Liabilities for insurance products: | |||||||
Policyholder
account liabilities | $ | 12,132.3 | $ | 11,522.8 | |||
Future policy benefits | 11,498.5 | 11,153.7 | |||||
Liability
for policy and contract claims | 522.3 | 521.9 | |||||
Unearned and advanced premiums | 260.5 | 253.9 | |||||
Liabilities
related to separate accounts | 4.2 | 4.4 | |||||
Other liabilities | 750.2 | 632.4 | |||||
Investment borrowings | 1,644.3 | 1,645.8 | |||||
Borrowings
related to variable interest entities | 1,152.5 | 1,417.2 | |||||
Notes payable – direct corporate obligations | 989.1 | 916.8 | |||||
Total liabilities | 28,953.9 | 28,068.9 | |||||
Commitments
and Contingencies | |||||||
Shareholders' equity: | |||||||
Common stock ($0.01 par value, 8,000,000,000 shares authorized, shares issued and outstanding: 2019 - 148,084,178; 2018 - 162,201,692) | 1.5 | 1.6 | |||||
Additional
paid-in capital | 2,767.3 | 2,995.0 | |||||
Accumulated other comprehensive income | 1,372.5 | 177.7 | |||||
Retained earnings | 535.7 | 196.6 | |||||
Total
shareholders' equity | 4,677.0 | 3,370.9 | |||||
Total liabilities and shareholders' equity | $ | 33,630.9 | $ | 31,439.8 |
Three
months ended | Year ended | ||||||||||||||
December 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues: | |||||||||||||||
Insurance
policy income | $ | 623.2 | $ | 616.5 | $ | 2,480.8 | $ | 2,593.1 | |||||||
Net
investment income: | |||||||||||||||
General account assets | 272.0 | 290.4 | 1,105.2 | 1,279.7 | |||||||||||
Policyholder
and other special-purpose portfolios | 101.1 | (107.8 | ) | 257.7 | 26.5 | ||||||||||
Realized investment gains (losses): | |||||||||||||||
Net
realized gains on the transfer of assets related to reinsurance transaction | — | — | — | 363.4 | |||||||||||
Other net realized investment gains (losses), excluding
impairment losses | 11.3 | (37.8 | ) | 40.6 | (8.7 | ) | |||||||||
Impairment losses recognized (a) | (6.8 | ) | (.5 | ) | (12.4 | ) | (2.6 | ) | |||||||
Total
realized gains | 4.5 | (38.3 | ) | 28.2 | 352.1 | ||||||||||
Fee revenue and other income | 68.2 | 17.4 | 143.9 | 62.1 | |||||||||||
Total
revenues | 1,069.0 | 778.2 | 4,015.8 | 4,313.5 | |||||||||||
Benefits and expenses: | |||||||||||||||
Insurance
policy benefits | 600.3 | 426.9 | 2,417.0 | 2,278.6 | |||||||||||
Loss related to reinsurance transaction | — | — | — | 1,067.6 | |||||||||||
Interest
expense | 35.2 | 39.7 | 152.3 | 149.8 | |||||||||||
Amortization | 76.1 | 69.0 | 232.1 | 264.3 | |||||||||||
Loss
on extinguishment of debt | — | — | 7.3 | — | |||||||||||
Loss on extinguishment of borrowings related to variable interest entities | — | — | — | 3.8 | |||||||||||
Other
operating costs and expenses | 250.0 | 205.5 | 932.9 | 814.2 | |||||||||||
Total benefits and expenses | 961.6 | 741.1 | 3,741.6 | 4,578.3 | |||||||||||
Income
(loss) before income taxes | 107.4 | 37.1 | 274.2 | (264.8 | ) | ||||||||||
Income tax expense (benefit): | |||||||||||||||
Tax
expense (benefit) on period income (loss) | 23.1 | 5.8 | 58.5 | (57.6 | ) | ||||||||||
Valuation allowance for deferred tax assets and other tax items | (193.7 | ) | 3.0 | (193.7 | ) | 107.8 | |||||||||
Net
income (loss) | $ | 278.0 | $ | 28.3 | $ | 409.4 | $ | (315.0 | ) | ||||||
Earnings
per common share: | |||||||||||||||
Basic: | |||||||||||||||
Weighted
average shares outstanding | 150,138,000 | 164,118,000 | 156,040,000 | 165,457,000 | |||||||||||
Net income (loss) | $ | 1.85 | $ | .17 | $ | 2.62 | $ | (1.90 | ) | ||||||
Diluted: | |||||||||||||||
Weighted
average shares outstanding | 151,407,000 | 165,890,000 | 157,148,000 | 165,457,000 | |||||||||||
Net income (loss) | $ | 1.84 | $ | .17 | $ | 2.61 | $ | (1.90 | ) |
(a)
| No portion of the other-than-temporary impairments recognized in the periods was included in accumulated other comprehensive income. |
Year ended | |||||||
2019 | 2018 | ||||||
(Dollars
in millions, except per share data) | |||||||
Net operating income (1) | $ | 290.0 | $ | 303.1 | |||
Net realized investment gains from sales and impairments (net of related amortization) | 2.1 | 37.9 | |||||
Net
change in market value of investments recognized in earnings | 25.5 | (48.8 | ) | ||||
Fair value changes in embedded derivative liabilities (net of related amortization) | (81.4 | ) | 55.5 | ||||
Fair
value changes related to agent deferred compensation plan | (20.4 | ) | 11.9 | ||||
Loss related to reinsurance transaction | — | (704.2 | ) | ||||
Loss on extinguishment
of debt | (7.3 | ) | — | ||||
Other | (12.6 | ) | 1.7 | ||||
Non-operating loss before taxes | (94.1 | ) | (646.0 | ) | |||
Income
tax expense (benefit): | |||||||
On non-operating loss | (19.8 | ) | (135.7 | ) | |||
Valuation allowance for deferred tax assets and other tax items | (193.7 | ) | 107.8 | ||||
Net
non-operating income (loss) | 119.4 | (618.1 | ) | ||||
Net income (loss) | $ | 409.4 | $ | (315.0 | ) | ||
Per
diluted share: | |||||||
Net operating income | $ | 1.85 | $ | 1.83 | |||
Net realized investment gains from sales and impairments (net of related amortization and taxes) | .01 | .18 | |||||
Net
change in market value of investments recognized in earnings (net of taxes) | .13 | (.23 | ) | ||||
Fair value changes in embedded derivative liabilities (net of related amortization and taxes) | (.41 | ) | .27 | ||||
Fair
value changes related to agent deferred compensation plan (net of taxes) | (.10 | ) | .06 | ||||
Loss related to reinsurance transaction (net of taxes) | — | (4.00 | ) | ||||
Loss
on extinguishment of debt (net of taxes) | (.04 | ) | — | ||||
Valuation allowance for deferred tax assets and other tax items | 1.23 | (.02 | ) | ||||
Other | (.06 | ) | .01 | ||||
Net
income (loss) | $ | 2.61 | $ | (1.90 | ) |
Year ended | |||||||||||||||
2019 | 2018 | ||||||||||||||
Dollars
in | Per diluted | Dollars in | Per diluted | ||||||||||||
millions | share | millions | share | ||||||||||||
Net
operating income (1) | $ | 290.0 | $ | 1.85 | $ | 303.1 | $ | 1.83 | |||||||
Earnings
on long-term care ceded block | — | — | (14.1 | ) | (.08 | ) | |||||||||
Net operating earnings, excluding the earnings on the long-term care ceded block | 290.0 | 1.85 | 289.0 | 1.75 | |||||||||||
Significant
items | (7.9 | ) | (.05 | ) | 14.2 | .08 | |||||||||
Net operating earnings, excluding significant items and the earnings on the long-term care ceded block | $ | 282.1 | $ | 1.80 | $ | 303.2 | $ | 1.83 |
Three months ended | |||||||
2019 | 2018 | ||||||
Bankers
Life: | |||||||
Medicare supplement | $ | 16.1 | $ | 15.8 | |||
Long-term care | 5.0 | 4.3 | |||||
Supplemental
health | 1.2 | 1.2 | |||||
Other health | .3 | .2 | |||||
Life | 30.1 | 30.2 | |||||
Annuity | 322.8 | 352.7 | |||||
Total | 375.5 | 404.4 | |||||
Washington
National: | |||||||
Supplemental health and other health | 17.9 | 17.1 | |||||
Life | 2.4 | 1.7 | |||||
Annuity | — | .1 | |||||
Total | 20.3 | 18.9 | |||||
Colonial
Penn: | |||||||
Life | 12.8 | 12.0 | |||||
Total | 12.8 | 12.0 | |||||
Total
first-year collected premiums from segments | $ | 408.6 | $ | 435.3 |
Three
months ended | |||||||
2019 | 2018 | ||||||
Bankers Life: | |||||||
Medicare supplement | $ | 194.1 | $ | 189.8 | |||
Long-term
care | 65.3 | 63.6 | |||||
Supplemental health | 6.5 | 6.1 | |||||
Other health | 1.5 | 1.5 | |||||
Life | 119.6 | 116.8 | |||||
Annuity | 324.1 | 354.3 | |||||
Total | 711.1 | 732.1 | |||||
Washington
National: | |||||||
Supplemental health and other health | 160.8 | 156.2 | |||||
Medicare supplement | 10.5 | 11.4 | |||||
Life | 9.7 | 8.5 | |||||
Annuity | .2 | .2 | |||||
Total | 181.2 | 176.3 | |||||
Colonial
Penn: | |||||||
Life | 77.0 | 74.8 | |||||
Medicare supplement and other health | .3 | .4 | |||||
Total | 77.3 | 75.2 | |||||
Long-term
care in run-off: | |||||||
Long-term care | 3.2 | 3.7 | |||||
Total | 3.2 | 3.7 | |||||
Total
collected premiums from segments | $ | 972.8 | $ | 987.3 |
Three months ended | |||||||
2019 | 2018 | ||||||
Bankers
Life: | |||||||
Medicare supplement | $ | 17.2 | $ | 17.9 | |||
Long-term care | 8.0 | 7.4 | |||||
Supplemental
health and other health | 2.2 | 2.0 | |||||
Life | 14.6 | 14.9 | |||||
Total | 42.0 | 42.2 | |||||
Washington
National: | |||||||
Supplemental health | 35.3 | 26.0 | |||||
Life | 4.4 | 4.1 | |||||
Total | 39.7 | 30.1 | |||||
Colonial
Penn: | |||||||
Life | 15.9 | 17.3 | |||||
Total | 15.9 | 17.3 | |||||
Total
new annualized premiums | $ | 97.6 | $ | 89.6 |
2019 | 2018 | ||||||
Bankers
Life | $ | 9,053.2 | $ | 8,600.7 | |||
Washington National | 297.4 | 342.5 | |||||
Total | $ | 9,350.6 | $ | 8,943.2 |
Three months ended | |||||||
2019 | 2018 | ||||||
Net
new client assets (a): | |||||||
Brokerage | $ | 17.4 | $ | (1.1 | ) | ||
Advisory | 45.4 | 13.2 | |||||
Total | $ | 62.8 | $ | 12.1 | |||
Client
assets at end of period (b): | |||||||
Brokerage | $ | 982.9 | $ | 794.1 | |||
Advisory | 532.1 | 310.8 | |||||
Total | $ | 1,515.0 | $ | 1,104.9 |
(a) | Net
new client assets includes total inflows of cash and securities into brokerage and managed advisory accounts less outflows. Inflows include interest and dividends and exclude changes due to market fluctuations. |
(b) | Client assets include cash and securities in brokerage and managed advisory accounts. |
Three months ended | |||||
2019 | 2018 | ||||
Bankers
Life: | |||||
Medicare supplement: | |||||
Earned premium | $189 million | $190 million | |||
Benefit
ratio (5) | 74.2 | % | 76.0 | % | |
Long-term care: | |||||
Earned premium | $63 million | $64
million | |||
Benefit ratio (5) | 120.4 | % | 117.9 | % | |
Interest-adjusted benefit ratio (a non-GAAP measure) (6) | 75.0 | % | 74.7 | % | |
Washington
National: | |||||
Supplemental health: | |||||
Earned premium | $160 million | $156 million | |||
Benefit
ratio (5) | 78.1 | % | 77.7 | % | |
Interest-adjusted benefit ratio (a non-GAAP measure) (6) | 54.2 | % | 53.8 | % |
(1) | Management
believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales and impairments, net of related amortization and taxes; (ii) net change in market value of investments recognized in earnings, net of taxes; (iii) fair value changes due to fluctuations in the interest rates used to discount embedded derivative liabilities related to our fixed index annuities, net of related amortization and taxes; (iv) fair value changes related to the agent deferred compensation plan, net of taxes; (v) loss related to reinsurance transaction, net of taxes; (vi) loss on extinguishment of debt, net of taxes; (vii) changes in the valuation allowance for deferred tax assets and other tax items; and (viii) other non-operating items consisting primarily of earnings attributable to variable interest entities, net of taxes ("Net operating income," a non-GAAP financial measure) is important to evaluate the financial performance
of the company, and is a key measure commonly used in the life insurance industry. Management uses this measure to evaluate performance because the items excluded from net operating income can be affected by events that are unrelated to the company's underlying fundamentals. A reconciliation of Net operating income to Net income applicable to common stock is provided in the tables on pages 2 and 7. Additional information concerning this non-GAAP measure is included in our periodic filings with the Securities and Exchange Commission that are available in the "Investors - SEC Filings" section of CNO's website, CNOinc.com. |
(2) | Book
value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock and performance units were vested and convertible securities were converted. The dilution from options, restricted shares and performance units is calculated using the treasury stock method. Under this method, we assume the proceeds from the exercise of the options (or the unrecognized compensation expense with respect to restricted stock and performance units) will be used to purchase shares of our common stock at the closing market price on the last day of the period. The dilution from convertible securities is calculated assuming the securities were converted on the last day of the period. In addition, the calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes
this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. |
(3) | The calculation of this non-GAAP measure differs from the corresponding GAAP measure because accumulated other comprehensive income (loss) has been excluded from the value of capital used to determine this measure. Management believes this non-GAAP measure is useful because it removes the volatility that arises from changes in the unrealized appreciation (depreciation) of our investments. |
(4) | Measured
by new annualized premium for life and health products, which includes 10% of single premium whole life deposits and 100% of all other premiums (excluding annuities). Medicare Advantage sales are not comparable to other sales and are therefore excluded in all periods. |
(5) | The benefit ratio is calculated by dividing the related product's insurance policy benefits by insurance policy income. |
(6) | The interest-adjusted benefit ratio (a non-GAAP measure) is calculated by dividing the product's insurance policy benefits less
imputed interest income on the accumulated assets backing the insurance liabilities by insurance policy income. Interest income is an important factor in measuring the performance of longer duration health products. The net cash flows generally cause an accumulation of amounts in the early years of a policy (accounted for as reserve increases), which will be paid out as benefits in later policy years (accounted for as reserve decreases). Accordingly, as the policies age, the benefit ratio will typically increase, but the increase in the change in reserve will be partially offset by the imputed interest income earned on the accumulated assets. |
(7) | The
following summarizes the calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); (ii) operating return, excluding significant items, on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure); and (iii) return on equity are as follows (dollars in millions): |
Year
ended | |||||||||
4Q19 | 4Q18 | ||||||||
Net operating income | $ | 290.0 | $ | 303.1 | |||||
Net
operating income, excluding significant items | $ | 282.1 | $ | 317.3 | |||||
Net
income (loss) | $ | 409.4 | $ | (315.0 | ) | ||||
Average
common equity, excluding accumulated other | |||||||||
comprehensive income (loss) and net operating loss | |||||||||
carryforwards (a non-GAAP financial measure) | $ | 2,703.9 | $ | 3,086.7 | |||||
Average
common shareholders' equity | $ | 4,166.8 | $ | 4,200.3 | |||||
Operating
return on equity, excluding accumulated other | |||||||||
comprehensive income (loss) and net operating loss | |||||||||
carryforwards (a non-GAAP financial measure) | 10.7 | % | 9.8 | % | |||||
Operating
return, excluding significant items, on equity, excluding | |||||||||
accumulated other comprehensive income (loss) and net | |||||||||
operating loss carryforwards (a non-GAAP financial measure) | 10.4 | % | 10.3 | % | |||||
Return
on equity | 9.8 | % | (7.5 | )% |
Net
operating | ||||||||||||||||||||||||
Net operating | income, | |||||||||||||||||||||||
income, | excluding | Net | ||||||||||||||||||||||
excluding | significant | income
(loss) - | ||||||||||||||||||||||
Net operating | Significant | significant | items - trailing | Net | trailing | |||||||||||||||||||
income | items
(a) | items | four quarters | income (loss) | four quarters | |||||||||||||||||||
1Q18 | $ | 73.9 | $ | (.9 | ) | $ | 73.0 | $ | 299.6 | $ | 84.3 | $ | 197.6 | |||||||||||
2Q18 | 81.9 | — | 81.9 | 309.0 | 102.2 | 216.4 | ||||||||||||||||||
3Q18 | 87.5 | — | 87.5 | 321.8 | (529.8 | ) | (414.2 | ) | ||||||||||||||||
4Q18 | 59.8 | 15.1 | 74.9 | 317.3 | 28.3 | (315.0 | ) | |||||||||||||||||
1Q19 | 65.8 | — | 65.8 | 310.1 | 51.8 | (347.5 | ) | |||||||||||||||||
2Q19 | 76.4 | — | 76.4 | 304.6 | 37.6 | (412.1 | ) | |||||||||||||||||
3Q19 | 69.2 | — | 69.2 | 286.3 | 42.0 | 159.7 | ||||||||||||||||||
4Q19 | 78.6 | (7.9 | ) | 70.7 | 282.1 | 278.0 | 409.4 | |||||||||||||||||
(a)
The significant items have been discussed in prior press releases. | ||||||||||||||||||||||||
Year
ended | |||||||||
4Q19 | 4Q18 | ||||||||
Pretax operating earnings (a non-GAAP financial measure) | $ | 368.3 | $ | 381.2 | |||||
Income
tax expense | (78.3 | ) | (78.1 | ) | |||||
Net operating income | 290.0 | 303.1 | |||||||
Non-operating items: | |||||||||
Net
realized investment gains (losses) from sales and impairments, net of related amortization | 2.1 | 37.9 | |||||||
Net change in market value of investments recognized in earnings | 25.5 | (48.8 | ) | ||||||
Fair
value changes in embedded derivative liabilities, net of related amortization | (81.4 | ) | 55.5 | ||||||
Fair value changes and amendment related to the agent deferred compensation plan | (20.4 | ) | 11.9 | ||||||
Loss
on reinsurance transaction | — | (704.2 | ) | ||||||
Loss on extinguishment of debt | (7.3 | ) | — | ||||||
Other | (12.6 | ) | 1.7 | ||||||
Non-operating
loss before taxes | (94.1 | ) | (646.0 | ) | |||||
Income tax expense (benefit): | |||||||||
On non-operating loss | (19.8 | ) | (135.7 | ) | |||||
Valuation
allowance for deferred tax assets and other tax items | (193.7 | ) | 107.8 | ||||||
Net non-operating income (loss) | 119.4 | (618.1 | ) | ||||||
Net income
(loss) | $ | 409.4 | $ | (315.0 | ) | ||||
4Q17 | |||||||||||||||||
Consolidated
capital, excluding accumulated other comprehensive | |||||||||||||||||
income (loss) and net operating loss carryforwards | |||||||||||||||||
(a
non-GAAP financial measure) | $ | 3,225.6 | |||||||||||||||
Net operating loss carryforwards | 409.8 | ||||||||||||||||
Accumulated
other comprehensive income | 1,212.1 | ||||||||||||||||
Common shareholders' equity | $ | 4,847.5 | |||||||||||||||
1Q18 | 2Q18 | 3Q18 | 4Q18 | ||||||||||||||
Consolidated
capital, excluding accumulated other comprehensive | |||||||||||||||||
income (loss) and net operating loss carryforwards | |||||||||||||||||
(a
non-GAAP financial measure) | $ | 3,318.7 | $ | 3,366.0 | $ | 2,705.8 | $ | 2,687.3 | |||||||||
Net
operating loss carryforwards | 404.2 | 388.7 | 510.6 | 505.9 | |||||||||||||
Accumulated other comprehensive income | 894.3 | 700.2 | 403.5 | 177.7 | |||||||||||||
Common
shareholders' equity | $ | 4,617.2 | $ | 4,454.9 | $ | 3,619.9 | $ | 3,370.9 | |||||||||
1Q19 | 2Q19 | 3Q19 | 4Q19 | ||||||||||||||
Consolidated
capital, excluding accumulated other comprehensive | |||||||||||||||||
income (loss) and net operating loss carryforwards | |||||||||||||||||
(a
non-GAAP financial measure) | $ | 2,703.4 | $ | 2,702.9 | $ | 2,685.0 | $ | 2,761.9 | |||||||||
Net
operating loss carryforwards | 479.6 | 451.1 | 425.4 | 542.6 | |||||||||||||
Accumulated other comprehensive income | 654.9 | 1,098.2 | 1,442.9 | 1,372.5 | |||||||||||||
Common
shareholders' equity | $ | 3,837.9 | $ | 4,252.2 | $ | 4,553.3 | $ | 4,677.0 | |||||||||
Trailing
four quarter average | |||||||||
4Q19 | 4Q18 | ||||||||
Consolidated capital, excluding accumulated other comprehensive | |||||||||
income (loss) and
net operating loss carryforwards | |||||||||
(a non-GAAP financial measure) | $ | 2,703.9 | $ | 3,086.7 | |||||
Net
operating loss carryforwards | 470.1 | 440.4 | |||||||
Accumulated other comprehensive income | 992.8 | 673.2 | |||||||
Common shareholders'
equity | $ | 4,166.8 | $ | 4,200.3 |
(8) | The following summarizes our estimate of the impact of lower general account asset investment income and changes in amounts impacting spreads on 4Q19 net income compared to 4Q18 net income (dollars in millions): |
4Q19 | 4Q18 | Difference | |||||||||||
Net
investment income on general account assets | $ | 272.0 | $ | 290.4 | $ | (18.4 | ) | ||||||
Impact of amounts credited and cost of options impacting spread: | |||||||||||||
Cost
of interest credited to policyholders | (25.9 | ) | (27.4 | ) | 1.5 | ||||||||
Cost of options to fund index credits, net of forfeitures | (24.8 | ) | (25.9 | ) | 1.1 | ||||||||
Subtotal | 221.3 | 237.1 | (15.8 | ) | |||||||||
Tax
expense (benefit) | 46.5 | 49.8 | (3.3 | ) | |||||||||
Impact on net income, net of income taxes | $ | 174.8 | $ | 187.3 | $ | (12.5 | ) |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
2/12/20 | 5, SC 13G/A | |||
Filed on / For Period end: | 2/11/20 | |||
12/31/19 | 10-K, 5, ARS | |||
12/31/18 | 10-K, 13F-HR, 5, ARS | |||
List all Filings |