CNO Financial Group(US:CNO)2026-02-24 21:54Financial Liabilities and Reinsurance - As of December 31, 2025, total liabilities for insurance products amounted to $31.1 billion, payable over an extended period[89]. - Total reinsurance receivables as of December 31, 2025, were $3,677.5 million, with the principal reinsurer being Wilton Reassurance Company at $2,350.2 million[93]. - The policy risk retention limit of the insurance subsidiaries was generally $0.8 million or less, with reinsurance ceded to third parties representing 9.0% of gross combined life insurance in force[92]. Regulatory Compliance and Oversight - The company is subject to extensive regulation and supervision by insurance regulators across all 50 states, ensuring compliance with financial and business conduct standards[109]. - The NAIC's principle-based reserving approach for life insurance and annuity contracts has been adopted, effective January 1, 2020, with further implementation expected for additional products[115]. - The NAIC's RBC requirements assess the risk inherent in an insurer's business, with a formula that applies prescribed factors to various risk elements to determine minimum capital requirements[140]. - The NAIC increased the RBC factor for structured security residual tranches from 30% to 45%, effective for year-end 2024 RBC filings[142]. - The NAIC's Financial Condition (E) Committee is conducting a holistic review of the insurance regulatory framework to enhance oversight of insurers' investments in complex assets, focusing on the SVO's discretion and reliance on credit rating providers[123]. Employee Relations and Well-being - The company employs approximately 3,300 full-time associates, with no collective bargaining agreements in place, indicating favorable employee relations[96]. - The company focuses on attracting and retaining talented associates through professional development, fair compensation practices, and a supportive work environment[98]. - The company has implemented a comprehensive well-being program that includes medical, dental, and vision insurance, as well as mental health counseling and financial coaching[103]. Community Involvement - The company is committed to community involvement, supporting organizations that address the health and financial wellness of middle-income Americans[108]. Climate and Environmental Regulations - The NYDFS expects insurers to integrate climate-related financial risks into their governance frameworks and risk management processes[180]. - In September 2023, California passed a law requiring firms with annual revenues over $1.0 billion to publicly report greenhouse gas emissions starting in 2026[182]. - The NAIC adopted a new standard for insurers to report climate-related risks as part of its annual Climate Risk Disclosure Survey, applicable to insurers with over $100 million in direct premium[183]. Tax Legislation - The Inflation Reduction Act introduced a 15% minimum tax based on financial statement income and a 1% excise tax on share buybacks, effective for tax years beginning in 2023[191]. - The SECURE 2.0 Act of 2022 introduces new requirements for retirement plans aimed at expanding coverage and increasing savings[192]. - The One Big Beautiful Bill Act of 2025 provides a permanent extension of certain provisions of the Tax Cuts and Jobs Act, impacting the timing of tax deductions[193]. - The company's income tax expense includes deferred income taxes from temporary differences and net operating loss carryforwards, which depend on future taxable income generation[190]. Capital and Solvency Requirements - CNO Bermuda Re is required to maintain a minimum solvency margin of the greater of $0.5 million, 1.5% of assets, or 25% of its enhanced capital requirement (ECR)[148]. - CNO Bermuda Re must maintain statutory economic capital and surplus at a level equal to or in excess of its ECR, which is determined by the Bermuda Solvency Capital Requirement (BSCR) model[149]. - The BSCR model establishes capital requirements based on various risk categories, including fixed income investment risk and operational risk[150]. - The target capital level (TCL) set by the Bermuda Monetary Authority (BMA) is 120% of an insurer's ECR, serving as an early warning tool for regulatory oversight[151]. - CNO Bermuda Re has entered into a Capital and Liquidity Maintenance Agreement with CDOC, which includes conditions for capital contributions if statutory economic capital falls below 150% of its ECR[152]. Legislative Developments - The Dodd-Frank Act established the Financial Stability Oversight Council (FSOC), which can designate non-bank financial institutions as systemically important, subjecting them to heightened supervision[170]. - In November 2023, the FSOC adopted guidance simplifying the process for designating non-bank financial companies as systemically important financial institutions (SIFIs)[171]. - Colorado enacted a law in 2021 prohibiting unfair discrimination in the use of external consumer data and information sources, with regulations effective November 14, 2023[167]. Insurance Product Monitoring - The company is monitoring developments related to federal legislation that may affect its annuity and life insurance products[188]. - The company’s insurance subsidiaries complied with state investment regulations as of December 31, 2025, ensuring diversification and adherence to regulatory limits[155].