CNO Financial Group Update on Share Repurchase Program

CARMEL, Ind., Aug. 29, 2011 /PRNewswire/ — CNO Financial Group, Inc. (NYSE:
CNO) today announced that through August 26, 2011, it had repurchased 3,684,800
shares of its common stock in the third quarter for an aggregate purchase price
of $22.9 million under its $100 million share repurchase program. The shares
were repurchased at an average cost of $6.22 per share and represented 1.5% of
the total outstanding shares as of June 30, 2011. Total shares repurchased under
the program to date total 5,891,448 shares for an aggregate purchase price of
$39.1 million, at an average cost of $6.64 per share. As of June 30, 2011, CNO
had approximately 249.4 million shares outstanding.

The percentage of CNO’s outstanding common stock owned by certain investment
funds and accounts managed by Paulson & Co. Inc. (“Paulson”), CNO’s largest
shareholder, is nearing 10%, a percentage of ownership that under state
insurance laws may require prior approval by state insurance regulators. Paulson
has informed CNO that Paulson currently does not intend to allow its ownership
percentage to exceed 10%. Paulson has also informed CNO that it has made Form A
filings with the state insurance regulatory authorities in the five states in
which the Company’s insurance subsidiaries are domiciled (Indiana, Illinois, New
York, Pennsylvania and Texas), which filings, if approved, would allow Paulson’s
ownership of CNO to exceed 10%. Following receipt of insurance regulatory
approvals, Paulson may, in its discretion, allow its ownership percentage to
exceed 10% or continue to not allow its ownership percentage to exceed 10%.

As required under the terms of its Senior Secured Credit Agreement, CNO will be
making a principal prepayment at the end of the third quarter of the same amount
as the share repurchases in the quarter. 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.

The proforma debt to total capital ratio (as defined in our Senior Secured
Credit Agreement) at June 30, 2011 would reduce to 18.5% 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.