CNO Financial Group, Inc. Announces Third Quarter Share Repurchases, Principal Prepayment under Senior Secured Credit Agreement and Early Payment on Senior Health Note

CARMEL, Ind., Sept. 30, 2011 /PRNewswire/ — CNO Financial Group, Inc. (NYSE:
CNO) today announced that during the third quarter of 2011 it repurchased
6,567,026 shares of its common stock for an aggregate purchase price of $39.5
million under its $100 million share repurchase program. The shares were
repurchased at an average cost of $6.01 per share and represented 2.6% of the
total outstanding shares as of June 30, 2011. Total shares repurchased under the
program to date total 8,773,674 shares for an aggregate purchase price of $55.7
million, at an average cost of $6.35 per share. As of June 30, 2011, CNO had
approximately 249.4 million shares outstanding.

Ed Bonach, CFO and incoming CEO effective October 1st, said “Our excess capital
generation continues to allow us to buy back stock at attractive prices, while
also continuing to reduce leverage on our balance sheet.”

As required under the terms of its Senior Secured Credit Agreement, CNO also
made a principal prepayment today of the same amount as the third quarter share
repurchases ($39.5 million). This prepayment will fully satisfy the remaining
scheduled principal amount that is due on September 30, 2016 and will also
reduce the scheduled principal amount that is due on June 30, 2016. The next
scheduled principal payment under the facility of $10.0 million is due September
30, 2012.

CNO also announced that today it made an early payment of $25.0 million on the
Senior Health Note, in satisfaction of the scheduled amortization payment due
November 12, 2011. The next scheduled amortization payment of $25.0 million on
the Senior Health Note is due November 12, 2012.

The proforma debt to total capital ratio (as defined in our Senior Secured
Credit Agreement) at June 30, 2011 would reduce to 17.8% from 18.7% as a result
of the aforementioned transactions.

About CNO

CNO is a holding company. Our insurance subsidiaries – principally Bankers Life
and Casualty Company, Colonial Penn Life Insurance Company and Washington
National Insurance Company – serve working American families and seniors by
helping them protect against financial adversity and provide for a more secure
retirement. For more information, visit CNO online at www.CNOinc.com.

SOURCE CNO Financial Group, Inc.