exhibit991.htm

Fourth Quarter 2009

Financial and Operating Results

For the period ended December 31, 2009

Conseco, Inc.

February 26, 2010

Forward-Looking Statements

Cautionary Statement Regarding Forward-Looking Statements. Our statements, trend analyses and other information contained in these
materials relative to markets for Conseco’s products and trends in Conseco’s operations or financial results, as well as other statements,
contain forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements typically are identified by the use of terms such as “anticipate,” “believe,” “plan,” “estimate,” “expect,” “project,”
“intend,” “may,” “will,” “would,” “contemplate,” “possible,” “attempt,” “seek,” “should,” “could,” “goal,” “target,” “on track,” “comfortable with,”
“optimistic” and similar words, although some forward-looking statements are expressed differently. You should consider statements that
contain these words carefully because they describe our expectations, plans, strategies and goals and our beliefs concerning future business
conditions, our results of operations, financial position, and our business outlook or they state other ‘‘forward-looking’’ information based on
currently available information. Assumptions and other important factors that could cause our actual results to differ materially from those
anticipated in our forward-looking statements include, among other things: (i) our ability to continue to satisfy the financial ratio and balance
requirements and other covenants of our debt agreements; (ii) general economic, market and political conditions, including the performance and
fluctuations of the financial markets which may affect our ability to raise capital or refinance existing indebtedness and the cost of doing so; (iii)
our ability to generate sufficient liquidity to meet our debt service obligations and other cash needs; (iv) our ability to obtain adequate and timely
rate increases on our supplemental health products, including our long-term care business; (v) the receipt of any required regulatory approvals
for dividend and surplus debenture interest payments from our insurance subsidiaries; (vi) mortality, morbidity, the increased cost and usage of
health care services, persistency, the adequacy of our previous reserve estimates and other factors which may affect the profitability of our
insurance products; (vii) changes in our assumptions related to the cost of policies produced or the value of policies in force at the effective
date; (viii) the recoverability of our deferred tax assets and the effect of potential ownership changes and tax rate changes on its value; (ix) our
assumption that the positions we take on our tax return filings, including our position that our 7.0% convertible senior debentures due 2016 will
not be treated as stock for purposes of Section 382 of the Internal Revenue Code of 1986, as amended, and will not trigger an ownership
change, will not be successfully challenged by the Internal Revenue Service; (x) changes in accounting principles and the interpretation thereof;
(xi) our ability to achieve anticipated expense reductions and levels of operational efficiencies including improvements in claims adjudication
and continued automation and rationalization of operating systems, (xii) performance and valuation of our investments, including the impact of
realized losses (including other-than-temporary impairment charges); (xiii) our ability to identify products and markets in which we can compete
effectively against competitors with greater market share, higher ratings, greater financial resources and stronger brand recognition; (xiv) the
ultimate outcome of lawsuits filed against us and other legal and regulatory proceedings to which we are subject; (xv) our ability to complete the
remediation of the material weakness in internal controls over our actuarial reporting process and to maintain effective controls over financial
reporting; (xvi) our ability to continue to recruit and retain productive agents and distribution partners and customer response to new products,
distribution channels and marketing initiatives; (xvii) our ability to achieve eventual upgrades of the financial strength ratings of Conseco and
our insurance company subsidiaries as well as the impact of rating downgrades on our business and our ability to access capital; (xviii) the risk
factors or uncertainties listed from time to time in our filings with the Securities and Exchange Commission; (xix) regulatory changes or actions,
including those relating to regulation of the financial affairs of our insurance companies, such as the payment of dividends and surplus
debenture interest to us, regulation of financial services affecting (among other things) bank sales and underwriting of insurance products,
regulation of the sale, underwriting and pricing of products, and health care regulation affecting health insurance products; and (xx) changes in
the Federal income tax laws and regulations which may affect or eliminate the relative tax advantages of some of our products.Other factors
and assumptions not identified above are also relevant to the forward-looking statements, and if they prove incorrect, could also cause actual
results to differ materially from those projected. All written or oral forward-looking statements attributable to us are expressly qualified in their
entirety by the foregoing cautionary statement. Our forward-looking statements speak only as of the date made. We assume no obligation to
update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results, future events or
developments, changes in assumptions or changes in other factors affecting the forward-looking statements.

Non-GAAP Measures

This presentation contains the following financial measures that differ from the comparable measures
under Generally Accepted Accounting Principles (GAAP): operating earnings measures; book value,
excluding accumulated other comprehensive income (loss) per share; operating return measures;
earnings before net realized investment gains (losses) and corporate interest and taxes; debt to capital
ratios, excluding accumulated other comprehensive income (loss); and interest-adjusted benefit ratios.
Reconciliations between those non-GAAP measures and the comparable GAAP measures are
included in the Appendix, or on the page such measure is presented.

While management believes these measures are useful to enhance understanding and comparability
of our financial results, these non-GAAP measures should not be considered substitutes for the most
directly comparable GAAP measures.

Additional information concerning non-GAAP measures is included in our periodic filings with the
Securities and Exchange Commission that are available in the “Investor - SEC Filings” section of
Conseco’s website, www.conseco.com.

Q4 2009 Summary

CNO

§ Fourth consecutive quarter of net income

§ Core sales* of $118.9 million, up 18% from Q4 2008

§ Net operating income** of $32.0 million, compared to net
operating income of $33.4 million in Q4 2008

• Results impacted by legal and regulatory accruals of $16 million
($0.04 per share)

• Strong Bankers Life results and expected Colonial Penn results

• CIG affected by legal and regulatory accruals

§ Material control weakness status

*Excludes PFFS.

**Management believes that an analysis of earnings or loss before net realized investment gains (losses),

discontinued operations, corporate interest and taxes (“EBIT,” a non-GAAP financial measure) provides a

clearer comparison of the operating results of the company quarter-over-quarter because it excludes:

(1) corporate interest expense; and (2) net realized investment gains (losses) that are unrelated to the

company’s underlying fundamentals. The table on page 10 reconciles the non-GAAP measure to the

corresponding GAAP measure.

Impact of

Capital Management Actions

CNO

§ Common equity increased by $296 million through sale of stock ($223
million public issue/$73 million private placement)

§ Senior Credit Facility

• Balance reduced by $198 million

• Covenants restructured and extended to provide greater flexibility

§ Old 3.5% Convertible Debentures

• $176.5 million purchased through tender offer in November 2009

• $64 million purchased privately in February 2010

• Both funded largely through issuance of new 7% Convertible Debentures
due 2016

• $52.5 million of 3.5% Debentures still outstanding; callable in 10/10

§ Holding company liquidity increased from $85 million at 9/30/09 to
$146 million at year-end

§ RBC at insurance companies now 309%, up by 57 points from 9/30/09

Litigation and Regulatory Exams

CNO

§ Reached settlement in principle involving approximately 700
policyholders who opted out of previously settled R-factor class
action

• Resolves final R-factor litigation pending against Conseco Life

§ Reached settlement in principle of multi-state market conduct
examination involving approximately 15,000 holders of
“Lifetrend” life insurance products

• Resolves regulatory issues related to sale and administration of
Lifetrend policies

• Also resolves regulatory issues on Conseco Life’s ability to manage
non-guaranteed elements in Lifetrend block

§ $16 million in additional legal and regulatory accruals in Q4 2009

Material Control Weakness

CNO

§ Considerable progress has been made; issue isolated to
portion of Specified Disease policies, comprising
approximately 1% of total company reserves

§ Newly enhanced controls have not been operating for
sufficient time to demonstrate their effectiveness

§ Given our enhanced controls and remediation efforts, we
believe total policy reserves are reasonably stated

Collected Premiums

CNO

§ Total collected premiums
for trailing 4 quarters down
9% vs 2008

§ Decline at Bankers due to
termination of PFFS group
quota share contracts and
lower annuity sales

§ Consistent growth at
Colonial Penn

§ Slight decline at CIG due to
focus on more profitable
business and de-
emphasizing annuity and
Med Supp sales

($ millions)

CIG

Collected Premiums-Trailing 4 Quarters

Q4 2008

$4,524.9

Q1 2009

$4,549.3

Q2 2009

$4,494.9

Q3 2009

$4,423.1

Q4 2009

$4,114.8

BLC

Q4 2009

Summary of Results

CNO

$84.6

5.9

(6.7)

(35.9)

47.9

(12.7)

(17.5)

$17.7

Pre-Tax

After Tax

EPS

($ millions, except per-share amounts)

$32.0

(3.0)

(8.3)

(2.5)

$18.2

$0.15

(0.01)

(0.04)

(0.01)

$0.09

*Management believes that an analysis of earnings before net realized investment gains (losses), increases to our

valuation allowance for deferred tax assets and loss on extinguishment or modification of debt (a non-GAAP financial

measure) provides an alternative measure of the operating results of the company because such items are unrelated

to the company’s continuing operations. The table above provides a reconciliation to the corresponding GAAP measure.

**See Appendix for a reconciliation to the corresponding GAAP measure. Increase in valuation allowance of

$3.0 million consists of the previously disclosed increase of $18 million that we established upon the completion

of a reinsurance transaction with Wilton Re, net of a $15 million reduction based on the higher income earned in

recent periods compared to amounts expected in our deferred tax valuation allowance.

Bankers Life

Colonial Penn

Conseco Insurance Group

Corporate operations and interest expense

Income before net realized investment losses

and valuation allowance for deferred tax assets*

Decrease in valuation allowance for deferred tax assets**

Loss on extinguishment or modification of debt

Net realized investment losses**

Total

Q4 Earnings

CNO Consolidated

*Management believes that an analysis of earnings before gain (loss) on extinguishment or modification of debt,
net realized investment gains (losses), losses related to the transfer of Senior Health to an independent trust
(included in Discontinued Operations) and corporate interest and taxes (“EBIT,” a non-GAAP financial measure)
provides an alternative measure to compare the operating results of the company quarter-over-quarter because it
excludes: (1) corporate interest expense; and (2) items that are unrelated to the company’s continuing operations.
The table above provides a reconciliation of EBIT to net income (loss).

($ millions)

Operating ROE

CNO

Operating ROE*, Trailing 4 Quarters

*Operating return excludes gain (loss) on extinguishment or modification of debt, net realized investment gains
(losses), valuation allowance related to deferred tax assets and discontinued operations. Equity excludes
accumulated other comprehensive income (loss) and the value of net operating loss carryforwards. See
Appendix for corresponding GAAP measure.

Operating EPS (Diluted)*

CNO

*Operating earnings per share exclude gain (loss) on extinguishment or modification of debt, net realized

investment gains (losses), valuation allowance related to deferred tax assets and discontinued operations.

See Appendix for a reconciliation to the corresponding GAAP measure.

**Calculated based upon 217.5 million shares, which includes dilution impact of $176.5 million in convertible

debentures issued. EPS calculated on shares outstanding for the first nine months of 2009 would be $0.17

per share.

§ Q4 2009 impacted by:

• Legal and regulatory accruals
($0.04 per share)

Book Value

CNO

*See Appendix for a reconciliation to the corresponding GAAP measure.

$3,400.7

(1,770.7)

$1,630.0

184.8

$8.82

$18.41

Shareholders’ Equity (excluding AOCL)

Accumulated Other Comprehensive Loss

Total Shareholders’ Equity

Shares Outstanding

Book Value Per Share

Book Value Per Share (Excluding AOCL)

12/31/08

$3,431.7

(1,840.5)

$1,591.2

184.8

$8.61

$18.57

3/31/09

$3,461.9

(1,046.9)

$2,415.0

184.9

$13.06

$18.72

6/30/09

$3,479.7

(146.0)

$3,333.7

184.9

$18.03

$18.82

9/30/09

$3,796.7

(264.3)

$3,532.4

250.8

$14.09

$15.14

12/31/09

(millions, except per-share amounts)

Q4 2009 Liquidity

CNO

($ millions)

Cash Balance 9/30/09

Sources

Equity Proceeds, net of expenses

Net Proceeds from New Convertible Debentures

Surplus Debenture Interest

Management and Investment Fees and Other

Total Sources

Uses

Interest

Debt Repayments:

Senior Credit Facility

Retirement of Old Convertible Debentures

Senior Health Note

Holding Company Expenses

Total Uses

Cash Balance 12/31/09

$85.6

$297.7

172.0

12.3

21.4

503.4

24.9

198.2

176.5

25.0

18.3

442.9

$146.1

Consolidated RBC Ratio*

CNO

*Risk-Based Capital (“RBC”) requirements provide a tool for insurance regulators to determine the levels of

statutory capital and surplus an insurer must maintain in relation to its insurance and investment risks. The

RBC ratio is the ratio of the statutory consolidated adjusted capital of our insurance subsidiaries to RBC.

§ Exceeded year-end target of 275%
and mid-term target of 300%+

§ Q4 2009 positive impacts:

• RMBS re-rating (35 pts)

• Statutory operating results (12 pts)

• Bankers reinsurance transaction
with Wilton Re (9 pts)

Consolidated RBC Ratio -

Changes Over Last Four Quarters

CNO

12/31/08

RBC

12/31/09

RBC

255%

309%

+50%

-51%

-32%

+22%

+35%

+34%

-4%

Q4 Summary

Bankers

§ Earnings of $84.6 million, up 112% over Q4 2008:

• Higher PDP and PFFS income due to favorable IBNR development (+$24
million)

• Higher LTC income due to favorable development of prior-period reserves
and policyholder actions following recent rate increases (+$7 million)

• Favorable Med Supp claims and persistency (+$5 million)

• Favorable reserve adjustment in UL and growth in block (+$10 million)

§ Q4 2009 impacted by:

• PFFS quota share income ($9 million)

• Favorable UL reserve adjustment ($6 million)

• Higher LTC income ($10 million) related to favorable development of prior
-period reserves

§ Record-setting sales for both Life and Med Supp

§ Record agent recruits: 12% increase in new agent recruits YTD

Bankers

($ millions)

Quarterly Core NAP (Excludes PFFS)

NAP-Quarterly*: $72.8 $94.5 $69.4 $62.3 $92.8

PFFS NAP-Quarterly*: $0.9 $34.1** $6.3 $(0.2) $1.1

*Excludes group business not sold by Bankers agents.

**Net of $7 million reserve for anticipated chargebacks related to sales still within their 90-day disenrollment period.

Sales & Distribution Results

§ Core NAP up 28% vs Q4 2008

• Strong Med Supp sales include
successful conversion of portion of
Coventry PFFS policyholders
(+104%)

• Increases in Life (+20%) and LTC
(+6%)

• Lower sales of Annuities (-49%),
consistent with overall industry
results and driven by interest rates

• Average agent count for year
5,143, up 9% vs 2008

Medicare Update

Bankers

§ As previously disclosed, approximately 51,000 Coventry PFFS policies
terminated as of 12/31/09. During Q4 2009:

• 18% of these customers purchased a Bankers Med Supp product
(recognized in Q4 sales)

• Another 17% of these customers purchased Humana Med-Advantage
plans (fee-only arrangement with Humana; to be recognized in Q1 2010
sales)

• Successful annual election period (11/15-12/31/09); sales ahead of target
(to be recognized in Q1 2010)

§ Medigap Modernization

• New product filed in 49 states and approved in 33 as of 12/31/09

• Market rates will be competitive, which will yield pricing levels and product
margins consistent with previous block

Q4 Earnings

Bankers

($ millions)

Trailing 4 Quarter Operating Return on Equity: 11.5%

Management believes that an analysis of income (loss) before net realized investment gains (losses), net of
related amortization (a non-GAAP financial measure), is important to evaluate the financial performance of
our business, and is a measure commonly used in the life insurance industry. Management uses this
measure to evaluate performance because realized gains or losses can be affected by events that are
unrelated to a company’s underlying fundamentals. The table on Page 10 reconciles the non-GAAP measure
to the corresponding GAAP measure. See Appendix for a reconciliation of the return on equity measure to
the corresponding GAAP measure.

Q4 Summary

Colonial Penn

§ Earnings of $5.9 million, down 12% from Q4 2008

• Primarily due to lower investment income, partially offset by expense
reductions

§ Life sales of $8.4 million, down 22% from Q4 2008

• Consistent with advertising reductions arising from capital management
activities

§ Collected premium grew consistently despite capital restrictions

• Q4 premiums increased 10% over Q4 2008

• YTD premiums increased 6% over 2008

Q4 Earnings

Colonial Penn

($ millions)

Trailing 4 Quarter Operating Return on Equity: 13.9%

Q4 Summary

CIG

§ NAP of $18.8 million, up 4% vs Q4 2008

• Second consecutive quarter of positive sales comparisons

• Full-year NAP up, despite de-emphasis of Annuities and Med Supp

§ Strong sales growth in both CIG Sales and PMA

• Worksite sales continue strong momentum, up 11% for year

• Strong recruiting results

§ Loss of $6.7 million vs income of $31.5 million in Q4 2008

• Q4 2008 impacted by favorable Specified Disease deferred ROP
adjustment ($12 million)

• Lower investment income (-$11 million) due to decline in book yield and
lower invested asset levels due to reinsurance transaction in Q4 2009

• Higher expenses (+$12 million) related to legal accruals

§ Taking action to boost ROE, including improving underperforming
blocks and building revenue with more profitable business

CIG

($ millions)

§ Supplemental Health sales up 27%
over Q4 2008

§ Life sales up 163% over Q4 2008

Q4 2008

Q4 2009

Q4 2009 Sales Results

Q4 Earnings

CIG

($ millions)

Unrealized Gain/Loss*

CNO

• Includes debt and equity securities classified as available for sale. Excludes investments from a variable

interest entity which we consolidate under GAAP.

Q4 2009 Realized Gain/Loss

CNO

Gains on sales

Losses on sales

Losses due to recognition of other-

than-temporary impairments*

Amortization adjustment to insurance

intangibles

Net investment losses before tax

Tax benefit

Release of tax valuation allowance

Net investment losses after tax

($ millions)

$110.5

(96.4)

(31.1)

(0.5)

(17.5)

6.1

8.9

$(2.5)

Amount Recognized
through Net Income

*Includes $5.0 million related to reinsurance transaction. In addition, $29.7 million of other-than-temporary

impairment losses were recognized in accumulated other comprehensive loss.

Q4 2009 Impairments

CNO

Corporates

Alt-A

ABS

CMBS

Prime Jumbos

Commercial Mortgage Loans

Other*

Total

($ millions)

Gross

Amounts

Amount Recognized
through Accumulated
Other Comprehensive
Loss

Amount Recognized
through Net Income

$5.3

4.1

1.6

0.3

5.7

8.8

5.3

$31.1

$0.0

0.4

12.7

(0.3)

16.9

0.0

$29.7

$5.3

4.5

14.3

0.0

22.6

8.8

5.3

$60.8

*Includes $5.0 million related to reinsurance transaction

Asset Allocation at 12/31/09*

Improved MTM reflects lower rates and
tighter spreads

CNO

($ millions)

*Excludes investments from a variable interest entity which we consolidate under GAAP (the related liabilities are
non-recourse to Conseco).

Investment Quality:

Fixed Maturities*

CNO

Actively Managed Fixed Maturities by Rating at
12/31/09 (Market Value)

% of Bonds which are Investment Grade:

12/31/08

92%

3/31/09

91%

6/30/09

91%

9/30/09

93%

12/31/09

93%

*Excludes investments from a variable interest entity which we consolidate under GAAP (the related liabilities are
non-recourse to Conseco).

AAA

15%

30%

BBB

41%

§ 93% investment-grade:

Impact at 12/31/09 of

NAIC RMBS Rerates

CNO

Total

(RBC points)

New NAIC Rating

Total

(1)

Alt-A at 12/31/09

CNO

BBB

Total

$13.9

$2.4

$142.7

$159.0

$17.1

$4.1

$188.6

$209.8

8.7%

1.5%

89.8%

100.0%

0.06%

0.01%

0.66%

0.73%

Market

Value (mil.)

Book

Value (mil.)

% of

Alt-A*

% of

Portfolio*

Rating

§ Allocation reduced by 57% (book value) during 2009

§ 100% fixed-rate collateral

§ Collateral performing better than overall Alt-A market in terms of delinquency and accumulated
loss trends

§ All securities evaluated using market-consistent estimates of collateral performance

§ Relative to recovery of book values, adequate credit support relative to expected cumulative
losses

693

694

710

708

Avg.
FICO

14.6%

18.7%

9.8%

10.3%

Avg.

Support

10.8%

14.5%

22.5%

21.4%

Avg. 60+

Delinq.

*Market value.

($ millions)

1.51%

4.84%

2.06%

Avg. Accum.

Loss

Prime Jumbo at 12/31/09

CNO

AAA

BBB

Total

$107.1

$30.6

$41.3

$22.2

$177.5

$378.7

$120.7

$34.1

$57.6

$29.8

$245.8

$488.0

28.3%

8.1%

10.9%

5.9%

46.8%

100.0%

0.50%

0.14%

0.19%

0.10%

0.82%

1.75%

Market

Value (mil.)

Book

Value (mil.)

% of

Prime
Jumbo*

% of

Portfolio*

Rating

§ Allocation reduced by 55% (book value) during 2009

§ 1.75% of total invested assets, reduced from 4.04% at 12/31/08

§ 97% fixed-rate collateral

§ All securities evaluated using market-consistent estimates of collateral performance

§ Credit support remains substantial relative to anticipated cumulative losses

735

742

744

742

739

Avg.
FICO

6.3%

4.6%

5.3%

4.4%

6.6%

6.1%

Avg.

Support

1.6%

2.3%

4.7%

2.9%

11.3%

6.7%

Avg. 60+

Delinq.

*Market value.

($ millions)

0.05%

0.17%

0.27%

0.78%

0.43%

Avg. Accum.

Loss

CMBS at 12/31/09

CNO

(GAAP book value - $ millions)

$182.5

$135.6

$207.0

$0.0

$47.1

$71.2

$643.4

$630.2

$40.5

$8.8

$22.0

$14.7

$0.0

$86.0

$67.8

$35.8

$10.7

$9.9

$8.2

$0.0

$64.6

$39.0

$12.0

$19.6

$37.3

$9.8

$0.0

$78.7

$33.6

$0.0

$1.6

$0.0

$1.6

$0.3

Pre-2004

2004

2005

2006

2007

2009

Total BV

Total MV

AAA

BBB

CMBS at 12/31/09

CNO

AAA

BBB

Total

$630.2

$67.8

$39.0

$33.6

0.3

$770.9

$643.4

$86.0

$64.6

$78.7

$1.6

$874.3

81.7%

8.8%

5.1%

4.4%

0.0%

100.0%

2.92%

0.31%

0.18%

0.16%

0.00%

3.57%

Market

Value (mil.)

Book

Value (mil.)

% of

CMBS*

% of

Portfolio*

Rating

§ 3.57% of invested assets

§ Collateral performing materially better than overall CMBS market in terms of delinquency and
cumulative loss

§ All securities evaluated using market-consistent estimates of collateral performance

§ Substantial credit support inherent in structures relative to expected cumulative losses

31.8%

18.9%

9.0%

7.3%

6.0%

28.4%

Avg.

Support

2.0%

0.9%

1.0%

1.9%

6.7%

1.9%

Avg. 60+

Del. & FCR

*% of market value

($ millions)

0.36%

0.08%

0.14%

0.03%

0.00%

0.31%

Avg. Cum.

Loss

Commercial Mortgage Loans

at 12/31/09

By Vintage

CNO

§ Current LTV of approximately 63%

§ Trailing debt service coverage ratio (DSCR) stable at approximately 1.56

§ Reduced overall allocation by $132 million in 2009 via prepayments, etc.

CNO Summary

CNO

§ Core sales and agent recruitment continue to improve in
declining market

§ Recapitalization addressed company’s most pressing financial
priority

• Refinances the 3.5% convertible debentures

• Structured to protect the NOLs

• Demonstrates investor confidence in Conseco

§ Capital and risk management remain significant priorities

• Insurance company merger anticipated in Q1/Q2 2010

CNO

§ First of Boomer population will become Medicare-eligible next year; in
10 years, number of those 65 and over will increase by 50%

§ Boomers confess to being unprepared for retirement and greatly
concerned about unforeseen health care costs and adequacy of
retirement income

§ As consumers transition toward retirement, open to new/additional
advisor relationship

§ Bankers’ community-based branches create unique access into
underserved markets

§ Both Medicare and Life sales had double-digit percentage growth over
previous year and projected to continue growing steadily

Riding the Age Wave of America

Outlook - Resuming

Our Investment in Growth

CNO

§ Bankers

• Retain more new LTC and Med Supp business by reducing
reinsurance

• Continued expansion of sales force

§ Colonial Penn

• Capital improvement at CNO permits re-focusing on profitable
growth in 2010

• Funding increase for direct response sales and marketing
operations

§ CIG:

• Continued emphasis on Supplemental Health and Life

• Implement changes in non-guaranteed elements where
appropriate

Questions and Answers

Appendix

Recapitalization of Conseco -

Update

CNO

§ November 2009

• Completed first closing of $176.5 million of new 7% Debentures (due
2016) upon settlement of tender offer for old 3.5% Debentures

• Completed private placement of stock and warrants to Paulson

§ December 2009

• Completed public equity offering of 49.5 million shares for $235.1
million, before issuance costs

§ February 2010

• Repurchased $64.0 million of 3.5% Debentures in privately
negotiated transaction

• Completed second closing of $64.0 million of 7% Debentures

• $52.5 million of 3.5% Debentures remain outstanding and are
callable on 10/3/10

§ Gradual tightening of covenants through 2012 instead of
“snap-back” in Q3 2010

§ Lenders to be paid $150 million of first $200 million of net
proceeds from public offering of common stock, plus 50% of
any net offering proceeds in excess of $200 million (credit
facility previously required company to pay lenders 50% of
net proceeds of any equity issuance)

§ Principal repayment schedule modified to eliminate any
principal payments in 2010; principal payments now due in
2011 ($35 million), 2012 ($40 million) and 2013 ($40 million)

§ 1% PIK interest replaced with payment of equal amount in
cash

CNO

Amendment to Senior Credit Facility -
December 2009

§ Minimum risk-based capital ratio will remain at 200% through
12/31/10 and increase to 225% for 2011 and 250% for 2012 (had
been scheduled to return to 250% after 6/30/10)

§ Minimum statutory capital and surplus will remain at $1.1
billion through 12/31/10 and increase to $1.2 billion for 2011
and $1.3 billion for 2012 (had been scheduled to return to $1.27
billion after 6/30/10)

§ Minimum interest coverage ratio will remain at 1.5x through
12/31/10 and increase to 1.75x for 2011 and 2.0x for 2012 (had
been scheduled to return to 2.0x after 6/30/10)

§ Maximum debt to total capital ratio will remain at 32.5%
through 12/31/09 and decrease to 30.0% thereafter (had been
scheduled to return to 30.0% after 6/30/09)

CNO

Amendment to Senior Credit Facility -
December 2009

Statutory Surplus ($ millions)

*Excludes Accumulated Other Comprehensive Loss, as defined by the senior credit facility.

$1,200

$1,100

Prior Amendment Level

New 2011 Level

New 2012 Level

CNO

250%

200%

1.5x

2.0x

1.75x

225%

$1,300

Covenant Metrics

Key Debt Covenants

CNO

*Calculated per bank covenants; excludes Accumulated Other Comprehensive Loss.

($ millions)

Debt/Capital Ratio*

Covenant Maximum

Actual

Interest Coverage

Covenant Minimum

Actual

Statutory Capital

Covenant Minimum

Actual

RBC Ratio

Covenant Minimum

Actual

Q2 2009

Covenant Margins as of 12/31/09

Reduction to statutory capital and
surplus of approximately $507
million, or an increase to the risk-
based capital of approximately
$253 million.

Reduction to combined statutory
capital and surplus of
approximately $339 million.

Reduction in cash flows to the
holding company of
approximately $58 million.

Reduction to shareholders’ equity of
approximately $1,620 million or
additional debt of $780 million.

Q4 2008

30.0%

28.3%

2.00X

2.35X

$1,270

$1,366

250%

255%

Q1 2009

32.5%

27.9%

1.50X

3.07X

$1,100

$1,301

200%

230%

32.5%

27.0%

1.50X

3.31X

$1,100

$1,279

200%

247%

Q3 2009

32.5%

26.8%

1.50X

3.12X

$1,100

$1,308

200%

252%

Q4 2009

32.5%

21.6%

1.50X

2.38X

$1,100

$1,439

200%

309%

CNO

Senior Credit Facility (10/13)

6% Senior Note

3.5% Convertible Debentures

Unamortized Discount on 3.5% Convertible Debentures

7.0% Convertible Debentures (12/16)

Unamortized Discount on 7.0% Convertible Debentures

Total Corporate Notes Payable

Common Stock

Additional Paid In Capital

Accumulated Other Comprehensive Loss (AOCL)

Accumulated Deficit

Total Shareholders’ Equity

Total Capital

Debt/Total Capital (excluding AOCL)

Book Value per Share

Book Value per Share (excluding AOCL)

$854.6

125.0

293.0

(10.7)

$1,261.9

1.9

4,110.6

(146.0)

(632.8)

$3,333.7

$4,595.6

26.6%

$18.03

$18.82

Actual

9/30/09

($ millions)

$(25.0)

1.7

0.1

$(23.2)

1.9

(118.3)

26.5

$(89.9)

$(113.1)

$652.1

100.0

116.5

(3.3)

176.5

(4.4)

$1,037.4

2.5

4,408.8

(264.3)

(614.6)

$3,532.4

$4,569.8

21.5%

$14.09

$15.14

Actual

12/31/09

Q4 2009

Activity

$(202.5)

(176.5)

5.7

176.5

(4.5)

$(201.3)

0.6

296.3

(8.3)

$288.6

$87.3

Recapitalization

Adjustments

Capital Structure

Book Value Per Share*

*Book value excludes accumulated other comprehensive income (loss). See Appendix for a reconciliation to the
corresponding GAAP measure.

§ Decrease in Q4 2009
primarily due to common
stock issuance

Net Investment Income

CNO

($ millions)

General Account Investment Income

Yield:

5.93%

5.67%

5.65%

5.63%

5.66%

§ Q4 2009 results consistent with
declining market yields and
reductions in invested assets,
compared to prior periods

Commercial Mortgage Loans

at 12/31/09

Geographic Distribution

CNO

Pacific

8.8%

Mountain

9.4%

West North
Central

12.3%

West South
Central

5.9%

East North
Central

22.4%

East South
Central

5.4%

New England

8.9%

Middle
Atlantic

6.4%

South
Atlantic

20.3%

Commercial Mortgage Loans

at 12/31/09

By Maturity

CNO

($ millions)

Expenses

CNO

($ millions)

Adjusted Operating Expenses*

*Adjusted operating expenses exclude primarily acquisition costs, capitalization of software development
costs, initial PFFS marketing costs and contractual vacancy charges related to exiting the Merchandise Mart
in Chicago. This measure is used by the Company to evaluate its progress in reducing operating expenses.
Expenses have been restated for all periods to reflect the SHIP separation.

§ Approximately $20 million in
savings from back-office
consolidation realized in 2007 and
2008; remaining $5 million in 2009

§ Q4 2009 expenses include higher
litigation cost; increase in IT
expense and investment in
Operations re-engineering

Segment Performance

Bankers

*Operating earnings exclude net realized gains (losses). See Appendix for corresponding GAAP measure of
our consolidated results of operations.

PTOI-Trailing 4 Quarters: $171.5 $187.1 $215.8 $233.4 $278.0

Revenues-Quarterly: $691.4 $635.1 $662.8 $695.1 $654.5

Pre-Tax Operating Income*

Revenues -Tr. 4 Quarters: $2,679.1 $2,686.3 $2,668.4 $2,684.4 $2,647.5

($ millions)

§ Earnings up 112% vs Q4 2008,
positively affected by:

• Higher PFFS/PDP income

• Favorable persistency and lower
incurred claims in Med Supp

• Favorable development of prior-
period LTC reserves and policyholder
actions following recent rate
increases

• One-time reserve release and growth
in Life block

Premiums -

Medicare Supplement

Bankers

§ First-year premiums up 23%
vs Q4 2008

Med. Supp. First-Year Prems.-Tr. 4 Qtrs: $81.3 $81.9 $83.6 $86.5 $91.7

Med. Supp. Total Premiums-Quarterly: $172.3 $155.8 $155.2 $168.9 $173.8

Med. Supp. NAP-Quarterly: $27.9 $18.4 $19.2 $19.9 $56.8

Med. Supp. NAP-Trailing 4 Quarters: $78.6 $79.9 $82.1 $85.4 $114.3

($ millions)

Premiums -

Long-Term Care

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $42.7 $35.9 $30.0 $22.1 $17.7

Total Premiums-Quarterly: $159.1 $145.9 $151.9 $154.3 $149.5

Long-Term Care - First-Year Premiums*

NAP-Quarterly: $7.9 $7.5 $9.8 $9.8 $8.3

NAP-Trailing 4 Quarters: $39.4 $37.5 $36.6 $35.0 $35.4

*Includes $4.4 million in both Q1 2009 and Q2 2009, $6.6 million in Q3 2009, and $3.9 million in Q4 2009

of premiums ceded under new business reinsurance agreement.

Q2 2009

(Direct)

$9.1

Q1 2009

(Direct)

$8.6

Q3 2009

(Direct)

$9.5

Q4 2009

(Direct)

$9.8

§ Quarterly first-year premium
declines due to new business
reinsurance

§ NAP decline attributable to three
main factors:

• Overall industry sales decline

• Agent force shift toward other products

• Tightened underwriting

Premiums -

Life Insurance

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $80.7 $79.0 $75.9 $79.8 $82.6

Total Premiums-Quarterly: $55.7 $48.9 $55.3 $63.2 $61.4

Life - First-Year Premiums

NAP-Quarterly: $11.4 $12.6 $15.6 $15.8 $13.7

NAP-Trailing 4 Quarters: $51.9 $52.8 $52.7 $55.4 $57.7

SPWL

Non-

SPWL

Q4 2008

$20.2

$8.2

$12.0

Q1 2009

$16.8

$6.2

$10.6

Q2 2009

$19.4

$7.8

$11.6

Q3 2009

$23.4

$10.5

$12.9

Q4 2009

$23.0

$10.8

$12.2

§ Fluctuations in first-year
premiums primarily reflect
variance in sales of single-
premium policies

§ Non-SPWL premiums up 2%
vs Q4 2008

Premiums -

Annuity

Bankers

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $1,220.6 $1,294.1 $1,308.7 $1,270.3 $1,057.1

Total Premiums-Quarterly: $411.2 $302.1 $275.4 $284.7 $198.2

Annuity - First-Year Premiums

§ First-year premiums down
52% from Q4 2008 as result
of current interest rate
environment

Annuity Surrenders

Bankers

IA Surrenders

(annualized quarterly rate)

Non-IA Surrenders

(annualized quarterly rate)

§ Surrenders: both indexed and non-
indexed annuity surrenders lower
than prior year

§ Total account value:

• IAs - $1.6 billion

• Non-IAs - $4.8 billion

§ Average account value:

• IAs - $41,000

• Non-IAs - $36,000

§ Over 89% of our annuities are
subject to surrender charge:

• IAs - 95%

• Non-IAs - 87%

Benefit Ratio* - PDP

Bankers

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§ Down 16% from Q4 2008:

• Impacted by favorable IBNR
development

Benefit Ratio* -

PFFS Individual Business

Bankers

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§ Down 20% vs Q4 2008:

• Impacted by favorable IBNR
development

Benefit Ratio* -

Medicare Supplement

Bankers

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§ 4Q 2009 ratio in line with
expectations

Interest-Adjusted Benefit Ratio* -

Long Term Care

Bankers

*We calculate interest-adjusted benefit ratios by dividing insurance policy benefits less interest income on
the accumulated assets backing the insurance liabilities by insurance policy income.

Trailing 4 Quarter Avg.: 74.0% 71.4% 67.6% 68.2% 67.9%

Qtrly. non-int. adjusted: 102.2% 105.1% 103.2% 108.3% 104.3%

§ Favorable development of prior-
period LTC reserves

LTC Update

Bankers

§ Rate increase filings (2008 round - policies issued prior to
2002) exceeded original filing goals

• Completed filing of $102.5 million of rate increases

• As of 12/31/09:

• Approvals = $81.8 million, 116% of original goal

• Projected financial impact = $59.6 million, 112% of original goal

Segment Performance

Colonial Penn

*Operating earnings exclude net realized gains (losses). See Appendix for corresponding GAAP measure of
our consolidated results of operations.

PTOI-Trailing 4 Quarters: $25.2 $26.6 $29.3 $30.2 $29.4

Revenues-Quarterly: $57.2 $57.1 $62.7 $58.1 $57.8

Pre-Tax Operating Income*

Revenues -Tr. 4 Quarters: $226.2 $229.4 $234.0 $235.1 $235.7

($ millions)

§ Q4 2008 to Q4 2009 decrease:

• Primarily due to lower investment
income, partially offset by expense
reductions

§ Q3 2009 to Q4 2009 decrease:

• Lower margins due to portion of
reinsurance pool termination in Q3 2009

• Lower premiums on lower sales

• Higher operating expenses

Premiums -

Life Insurance

Colonial Penn

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $35.0 $35.8 $35.3 $34.4 $33.0

Total Premiums-Quarterly: $43.8 $47.0 $45.8 $45.6 $48.9

Life - First-Year Premiums

NAP-Quarterly: $10.8 $12.3 $10.6 $10.6 $8.4

NAP-Trailing 4 Quarters: $50.1 $49.7 $45.8 $44.3 $41.9

§ NAP:

• Consistent with previous communication,
quarterly and trailing four quarters aligned
with capital management actions

§ Premium:

• First-year premium trending lower due to
lower sales

• Total premium growth for the quarter
primarily due to collection of $3.4 million
from reinsurance pool termination

Segment Performance

CIG

*Operating earnings exclude net realized gains (losses). See Appendix for corresponding GAAP measure
of our consolidated results of operations.

PTOI-Trailing 4 Quarters: $121.3 $129.2 $118.1 $105.5 $67.3

Revenues-Quarterly: $382.4 $379.2 $382.5 $381.2 $357.7

Pre-Tax Operating Income (loss)*

Revenues-Tr. 4 Quarters: $1,513.1 $1,511.7 $1,515.9 $1,525.3 $1,500.6

($ millions)

§ Q4 2008 favorably impacted by
Specified Disease deferred ROP
adjustment

§ Higher expenses related to legal
and regulatory accruals

Premiums -

Medicare Supplement

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $9.6 $8.3 $7.9 $8.0 $7.2

Total Premiums-Quarterly: $52.6 $42.8 $44.4 $46.9 $43.7

Medicare Supplement - First-Year Premiums

NAP-Quarterly: $3.5 $1.7 $1.3 $1.3 $1.5

NAP-Trailing 4 Quarters: $8.9 $8.3 $8.3 $7.8 $5.8

§ First-year collections down 33%
from Q4 2008:

• Focus on profitable products
(i.e., Specified Disease)

Premiums -

Specified Disease

CIG

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $39.4 $40.2 $41.5 $43.6 $45.4

Total Premiums-Quarterly: $95.6 $93.0 $95.1 $96.2 $99.0

Specified Disease - First-Year Premiums

NAP-Quarterly: $12.0 $11.5 $14.7 $16.1 $15.2

NAP-Trailing 4 Quarters: $46.8 $48.7 $51.0 $54.3 $57.5

§ NAP up 27% from Q4 2008:

• Increased CIG Sales focus on
Specified Disease products

• Increased recruitment of Health
IMOs

• Momentum increasing in
Worksite market

Premiums -

Annuity

CIG

($ millions)

First-Year Prems.-Tr. 4 Qtrs: $119.9 $98.5 $84.7 $83.0 $71.8

Total Premiums-Quarterly: $23.7 $19.5 $22.3 $25.2 $11.4

Annuity - First-Year Premiums

§ First-year collections down
53% from Q4 2008:

• Focus on profitable products
(i.e., Specified Disease)

Benefit Ratio* -

Medicare Supplement

CIG

Trailing 4 Quarter Avg.: 68.4% 68.8% 68.6% 67.3% 68.3%

*We calculate benefit ratios by dividing insurance policy benefits by insurance policy income.

§ In line with expectations and
recent trends

§ Stable persistency

Interest-Adjusted Benefit Ratio* -

Specified Disease

Trailing 4 Quarter Avg.: 43.3% 41.8% 42.6% 41.2% 46.0%

Qtrly. non-int. adjusted: 63.8% 76.0% 83.3% 76.6% 82.0%

*We calculate interest-adjusted benefit ratios by dividing insurance policy benefits, less interest income on
the accumulated assets backing the insurance liabilities, by insurance policy income.

§ Q4 2008 included recognition of
deferred ROP adjustment
related to prior periods

Information Related to Certain Non-GAAP Financial Measures

The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a
numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are normally excluded
or included in the most directly comparable measure calculated and presented in accordance with GAAP. While management believes these
measures are useful to enhance understanding and comparability of our financial results, these non-GAAP measures should not be considered
as substitutes for the most directly comparable GAAP measures. Additional information concerning non-GAAP measures is included in our
periodic filings with the Securities and Exchange Commission that are available in the “Investor - SEC Filings” section of Conseco’s website,
www.conseco.com.

Operating earnings measures
Management believes that an analysis of net income applicable to common stock before gain (loss) on extinguishment or modification of debt,
net realized gains or losses, discontinued operations and increases to our valuation allowance for deferred tax assets (“net operating income,” a
non-GAAP financial measure) is important to evaluate the performance of the Company and is a key measure commonly used in the life
insurance industry. Management uses this measure to evaluate performance because gain (loss) on extinguishment or modification of debt,
realized investment gains or losses, discontinued operations and increases to our valuation allowance for deferred tax assets are unrelated to
the Company’s continuing operations.

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of net income applicable to common stock to net operating income (and related per-share amounts) is as follows (dollars in
millions, except per-share amounts):

Book value, excluding accumulated other comprehensive income, per share
This non-GAAP financial measure differs from book value per diluted share because accumulated other comprehensive income has been
excluded from the book value used to determine the measure. Management believes this non-GAAP financial measure is useful because it
removes the volatility that arises from changes in accumulated other comprehensive income. Such volatility is often caused by changes in the
estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made
by management.

A reconciliation from book value per share to book value per share, excluding accumulated other comprehensive income (loss) is as follows
(dollars in millions, except per share amounts):

Information Related to Certain Non-GAAP Financial Measures

Operating return measures

Management believes that an analysis of return before gain (loss) on extinguishment or modification of debt, net realized gains or losses,
discontinued operations and increases to our valuation allowance for deferred tax assets (“net operating income,” a non-GAAP financial
measure) is important to evaluate the performance of the Company and is a key measure commonly used in the life insurance industry.
Management uses this measure to evaluate performance because gain (loss) on extinguishment or modification of debt, realized investment
gains or losses, discontinued operations and increases to our valuation allowance for deferred tax assets are unrelated to the Company’s
continued operations.

This non-GAAP financial measure also differs from return on equity because accumulated other comprehensive income (loss) has been
excluded from the value of equity used to determine this ratio. Management believes this non-GAAP financial measure is useful because it
removes the volatility that arises from changes in accumulated other comprehensive income (loss). Such volatility is often caused by changes in
the estimated fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions
made by management.

In addition, our equity includes the value of significant net operating loss carryforwards (included in income tax assets). In accordance with
GAAP, these assets are not discounted, and accordingly will not provide a return to shareholders (until after it is realized as a reduction to taxes
that would otherwise be paid). Management believes that excluding this value from the equity component of this measure enhances the
understanding of the effect these non-discounted assets have on operating returns and the comparability of these measures from period-to-
period. Operating return measures are used in measuring the performance of our business units and are used as a basis for incentive
compensation.

All references to segment operating return measures assume a 25% debt to total capital ratio at the segment level. Additionally, corporate
expenses have been allocated to the segments.

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of return on common equity to operating return on common equity (excluding accumulated other comprehensive income (loss) and
net operating loss carryforwards) is as follows (dollars in millions, except per share amounts):

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of pretax operating earnings (a non-GAAP financial measure) to segment operating income (loss) and consolidated net income
(loss) for the year ended December 31, 2009, is as follows (dollars in millions):

(Continued on next page)

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of common shareholders’ equity, excluding accumulated other comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure) to common shareholders’ equity at December 31, 2009, is as follows (dollars in millions):

(Continued on next page)

(Continued from previous page)

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of average common shareholders’ equity, excluding accumulated other comprehensive income (loss) and net operating loss
carryforwards (a non-GAAP financial measure) to average common shareholders’ equity at December 31, 2009, is as follows (dollars in millions):

(Continued from previous page)

Information Related to Certain Non-GAAP Financial Measures

A reconciliation of the debt to capital ratio to debt to capital, excluding accumulated other comprehensive loss is as follows (dollars in millions):

Debt to capital ratio, excluding accumulated other comprehensive income (loss)

This non-GAAP financial measure differs from the debt to capital ratio because accumulated other comprehensive income has been excluded
from the value of capital used to determine this measure. Management believes this non-GAAP financial measure is useful because it removes
the volatility that arises from changes in accumulated other comprehensive income. Such volatility is often caused by changes in the estimated
fair value of our investment portfolio resulting from changes in general market interest rates rather than the business decisions made by
management.

Information Related to Certain Non-GAAP Financial Measures