Company Profile

Cont en t s

A Message from Scott Perry

Financial Highlights

The Bankers Difference

Service Excellence

Product Leadership

Making a Difference in Our Community

The Bankers Tradition

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Bankers is a subsidiary of CNO Financial Group, Inc., a holding company for a group of insurance companies operating throughoutthe United States. With more than $4 billion in annual revenue, CNO companies develop, market and administer supplemental healthinsurance, annuities, individual life insurance and other insurance products.

A Mes sag e f rom Scott Perry

At Bankers Life and Casualty Company, we’re dedicated to delivering affordable solutions thataddress retirees’ most pressing concerns—payment of healthcare expenses and adequacy ofretirement income.

This understanding guides our business practices. It drives our plans for growth. And it inspiresBankers’ commitment to maintain our strength, our stability and our uncompromising dedicationto service.

StrengthFor more than 130 years, we’ve helped policyholders relieve their financial concerns. And with$12 billion in assets under management and more than 200 branch offices nationwide, Bankerswill be there to support our policyholders when they need us most.

StabilityAs a leader in offering Medicare Supplement insurance policies and long-term care insurance,Bankers’ tenure in the industry remains unsurpassed. Combined with our life insurance andannuity products, we offer one of the most comprehensive portfolios designed to meet theretirement planning needs of the senior market.

ServiceOutstanding customer service is just one of the reasons more than 1.3 million policyholders trustus to meet their needs. By focusing on the ways we address retirees’ specific concerns, Bankersbacks the customer experience with dedicated career agents and timely claims payment.

In ClosingWhile strength, stability and service shape our culture, we’ve never lost sight of our vision—to become a leading provider of health and life insurance products and annuities to the middle-income retirement market. By continuously challenging ourselves to better understand our marketand by delivering increasingly beneficial products and services, Bankers is taking an active rolein achieving our vision.

Thank you for your interest.

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Scott R. Perry, President

$11.8

$3.0$35.4

$57.7 $64.8

$114.3

Assets UnderManagement(In billions)

Long-Term Care Sales(In millions)

MedicareSupplement

Sales(In millions)

Life Sales(In millions)

AnnuitySales

(In millions)

2009 Financial Highlights 1

Key Business Measures

Dollars in Millions 2009

Assets Under Management............................ $11,847

Policies In Force (In thousands) 2 ..................... 1,336

Collected Premium ........................................ $3,000.9

Sales

Long-Term Care ................................................. $35.4

Medicare Supplement ........................................ $114.3

Life .................................................................... $57.7

Annuities ........................................................... $64.8

Total ......................................................... $272.2

EBIT ............................................................... $278

Reserves......................................................... $11,478

Insurance Policy Benefits ................................ $1,667

Sales Offices .................................................. 242

Agents (On average) ...................................... 5,143

Asset Allocation ProfileTotal Investments ($11.8 billion) by Type

Bond Quality ProfileBonds ($10.6 billion) by NAIC Quality Rating

90% Bonds

2% Other1% Stocks

95% Classes 1 and 2:Highest and High Quality

5% Class 3 or lower7% Commercial mortgage loans

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1 Calculated using GAAP financial reporting, which includes affiliates.2 Excluding PFFS and PDP.

CollectedPremium

(In billions)

The Bankers Di f f e r enc e

Get to know Bankers—and learn why our more than

1.3 million customers trust their retirement to us.

For more than 130 years, Bankers Life and Casualty Company has been helping

individuals and families protect their financial security and prepare for retirement.

Our broad selection of affordable, quality health and life insurance products and

annuities offers clients solutions for every stage of life—whether retirement is years

away, or they are already retired.

With over 200 branch offices across the country, our more than 5,000 agents live

and work in the communities they serve. Our customers have their own Bankers

agent who takes the time to get to know their family, listens to their needs and

values, and is dedicated to helping them meet their goals for a secure retirement.

At Bankers, our commitment to service is backed by the financial strength

of $12 billion in assets under management and the stability of century-long

experience. Get to know Bankers—and learn why our more than 1.3 million

customers trust their retirement to us.

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Service Exc e l l enc e

At Bankers, service excellence is a philosophy that guides

the way we think about our policyholders. And it’s an approach

that defines the Bankers customer experience.

Financial Assurance

Financial stability, security and integrity take on new meaning when we near

retirement. Bankers agents understand this and develop comprehensive insurance

solutions based on the lifestyles and retirement planning goals of our customers.

Superior Customer Service

The personal service of our more than 5,000 dedicated career agents helps set

Bankers apart from other insurance companies. In fact, we still make house calls.

It’s important that our customers have a local Bankers agent to service their needs.

Our customer service department supports the service provided by agents and in

2009 alone responded to more than 2.5 million inquiries from policyholders and

their families.

Claims Payment

When you’re recovering from an illness or injury, the last thing you need to worry

about is claims payment. In 2009, Bankers processed more than seven million

claims and paid out more than $1.2 billion in policy benefits.

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Product Leadersh i p

As a leader in the retirement market, Bankers’

comprehensive product suite offers real-life solutions.

Long-Term Care, Short-Term Careand Home Health Care Insurance

A pioneer in the development and

marketing of long-term care insurance,

today Bankers is a top provider of

these products. We also offer flexible

short-term care and home health care

insurance options that enable our

customers to receive care at home

whenever possible.

Life Insurance

Whether our clients are looking for

final expense, whole or universal life

insurance, Bankers products can help

protect a family’s financial security and

help build a legacy to pass on.

Annuities

Our portfolio of traditional fixed

and indexed annuities is designed

with retirees’ unique concerns and

retirement planning goals in mind.

Medicare Supplement Insurance3

A market leader for more than 40 years,

we offer supplemental insurance

products to help policyholders manage

unexpected medical bills by helping

pay the difference between traditional

Medicare payments and out-of-pocket

expenses.

Medicare Advantage Plans3

When it comes to healthcare plans,

one size doesn’t fit all. That’s why

Bankers expanded our product

portfolio to include Medicare

Advantage Plans. Now, retirees have

more choices when deciding how to

receive their Medicare benefits.

Medicare Part DPrescription Drug Plans3

Customers can enhance their Medicare

coverage with a wide selection of drug

plans that help save money on everyday

prescription medications.

3 Offered through one of our affiliated carriers.Coverage available in most states.

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Making a di f ference in our Commun i t y

Bankers is proud to support the causes that affect

our customers and their families. That’s why our community

partnerships are so important to us.

Alzheimer’s Association

Experts estimate as many as 5.3 million Americans have Alzheimer’s disease.

By 2050, that number is expected to grow to as many as 16 million.4

The Alzheimer’s Association is the nation’s leading voluntary health organization

in Alzheimer’s care, support and research. Bankers is a proud national sponsor of the

Alzheimer’s Association and supports its vision for a world without Alzheimer’s.

For eight years running, Bankers has organized Forget Me Not Days®, our

nationwide fundraising campaign to collect donations for the Alzheimer’s

Association and raise public awareness of the disease. Since 2003, Bankers

has helped raise more than $2 million for the Association through the fundraiser

and corporate donations.

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4 Alzheimer’s Association, 2010.

Meals on Wheels Chicago

Every weekday, Meals on Wheels Chicago, in partnership with the Chicago

Department of Family and Support Services, delivers more than 8,000 meals

to Chicago’s homebound seniors. In some cases, it’s their only opportunity

for healthy, nutritious meals on a regular basis. In addition, daily contact with a

caring driver gives Meals on Wheels Chicago clients a social connection to the

outside world.

Since 2004, Bankers has contributed $200,000 to Meals on Wheels Chicago to

help support programs such as Home Delivered Meals, Holiday Meals, Short-Term

Immediate Meals and Home Modification, which involves adapting a recipient’s

home to his or her unique needs.

United Way

United Way of America is a national network of more than 1,300 locally governed

organizations that work to create lasting change. The United Way helps sustain

vital human services for those who need help most, while reducing such needs

for future generations.

Each year, United Way conducts a nationwide campaign to raise money for charities

and cooperative agencies. Its core values include diversity and inclusion, advocating

that a variety of voices are heard and supported. It supports programs in the areas

of education, income and health that lead to successful lives for all Americans.

In 2009, Bankers employees generated more than $37,000 to the United Way

Workplace Campaign.

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The Bankers Trad i t i on130 years and count ing

Our Foundation

On January 17, 1879, our predecessor, the Hotel Men’s Mutual Benefit

Association of the United States and Canada, began operating. In 1942,

John D. MacArthur merged his companies, the Hotel Men’s Mutual Benefit

Association, the Illinois Standard Life Insurance Company and Bankers Life

and Casualty Company, under the “Bankers” brand name.

Our Heritage

MacArthur studied the great American manufacturers. He learned how they

branded and mass-marketed a range of household goods and services. MacArthur

reasoned that if he could reduce the high cost of selling insurance, he could make

insurance affordable for middle-income Americans. So began Bankers’ unparalleled

growth through direct mail marketing campaigns. And by the end of 1956, Bankers

Life and Casualty Company had become one of the largest individual insurers

in the health and accident field. In the 1960s, we turned our attention toward

America’s growing senior market. And shortly after President Lyndon B. Johnson

signed the Medicare bill into law, Bankers became one of the first insurance

companies to offer Medicare Supplement plans.

Our Future

While strength, stability and service shape our culture, we’ve never lost sight

of our vision—to become a leading provider of financial security to retirees and

their families. That’s why our insurance product portfolio now includes long-term

care, life insurance, annuities and Medicare Part D prescription drug coverage.

It’s also why we’ll continue to grow and innovate to meet the changing needs

of our customers.

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1879

1946

1950 – 60s

1977

1980 – 90s

2004

Bankers Life and Casualty Company’s predecessor, the Hotel Men’s Mutual Benefit Association, begins operations.

Bankers’ president John D. MacArthur develops massmarketing of low-cost health insurance policies throughthe mail.

Bankers enters the senior market and becomes one ofthe nation’s first insurers to develop and offer Medicare Supplement insurance.

Bankers expands our product offerings to includeretirement products. Company assets surpass $1 billion.

In 1985, Bankers releases our first comprehensive long-termcare insurance plan, positioning us as a leader in seniors’health insurance products. Five years later, Bankersintroduces our first senior life insurance product, enablingagents to deliver the first complete portfolio of health andlife insurance and annuity products developed specificallyfor seniors.

Bankers Life and Casualty Company celebrates our 125th anniversary.

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Bankers Life and Casualty CompanyChicago, ILbankers.com