CNO Financial : First Quarter 2024 Conseco Life Insurance Company of Texas

STATEMENT AS OF MARCH 31, 2024 OF THE CONSECO LIFE INSURANCE COMPANY OF TEXAS

ASSETS

		Current Statement Date		4
	1	2		3	December 31
				Net Admitted Assets	Prior Year Net
	Assets	Nonadmitted Assets		(Cols. 1 - 2)	Admitted Assets
1. Bonds	................. 12,160,289	...................................	.................	12,160,289	................. 12,164,787

2. Stocks:

	2.1 Preferred stocks		...................................	...................................	...................................	...................................
	2.2 Common stocks		1,029,030,275	...................................	1,029,030,275	1,052,819,421
3.	Mortgage loans on real estate:
	3.1 First liens	..................................................................................................		...................................	...................................	...................................	...................................
	3.2 Other than first liens	...................................	...................................	...................................	...................................
4.	Real estate:
	4.1 Properties occupied by the company (less $
	encumbrances)		...................................	...................................	...................................	...................................
	4.2 Properties held for	the production of income (less
	$		encumbrances)	...................................	...................................	...................................	...................................
	4.3 Properties held for sale (less $
	.......................................................................................encumbrances)		...................................	...................................	...................................	...................................
	......................	801,358
5.	Cash ($		), cash equivalents
	($	30,902,954 ) and short-term
	investments ($	)	31,704,312	...................................	31,704,312	33,613,787
6.	Contract loans (including $	premium notes)	403,067	3	403,064	404,465
7.	Derivatives			...................................	...................................	...................................	...................................
8.	Other invested assets		...................................	...................................	...................................	...................................
9.	Receivables for securities	...................................	...................................	...................................	...................................
10.	Securities lending reinvested collateral assets	...................................	...................................	...................................	...................................
11.	Aggregate write-ins for invested assets	...................................	...................................	...................................	...................................
12.	Subtotals, cash and invested assets (Lines 1 to 11)	1,073,297,943	3	1,073,297,940	1,099,002,459
13.	Title plants less $	charged off (for Title insurers
	only)			...................................	...................................	...................................	...................................
14.	Investment income due and accrued	278,056	...................................	278,056	337,127

15. Premiums and considerations:

15.1	Uncollected premiums and agents' balances in the course of collection	1,334	1,334	1,317
15.2	Deferred premiums, agents' balances and installments booked but
	...................................deferred and not yet due (including $
	earned but unbilled premiums)	10,925	10,925	11,627
15.3	Accrued retrospective premiums ($	) and
	contracts subject to redetermination ($	)	................................... ................................... ................................... ...................................

16. Reinsurance:

	....................................................16.1 Amounts recoverable from reinsurers	..........................5,000	...................................	..........................5,000	..........................5,000
	16.2 Funds held by or deposited with reinsured companies	...................................	...................................	...................................	...................................
	16.3 Other amounts receivable under reinsurance contracts	...................................	...................................	...................................	...................................
17.	Amounts receivable relating to uninsured plans	...................................	...................................	...................................	...................................
18.1	....Current federal and foreign income tax recoverable and interest thereon	................. 14,681,155	...................................	................. 14,681,155	................. 15,917,514
18.2	Net deferred tax asset	...................... 853,242	...................... 853,242	...................................	...................................
19.	Guaranty funds receivable or on deposit	...................................	...................................	...................................	...................................
20.	Electronic data processing equipment and software	...................................	...................................	...................................	...................................
21.	Furniture and equipment, including health care delivery assets
	($	)	...................................	...................................	...................................	...................................
22.	.........Net adjustment in assets and liabilities due to foreign exchange rates	...................................	...................................	...................................	...................................
23.	Receivables from parent, subsidiaries and affiliates	...................................	...................................	...................................	...................................
24.	Health care ($	) and other amounts receivable	........................ 10,851	...................................	........................ 10,851	..........................9,863
25.	........................................Aggregate write-ins for other than invested assets	...................................	...................................	...................................	...................................
26.	Total assets excluding Separate Accounts, Segregated Accounts and
	Protected Cell Accounts (Lines 12 to 25)	............ 1,089,138,506	...................... 853,245	............ 1,088,285,261	............ 1,115,284,907
27.	From Separate Accounts, Segregated Accounts and Protected Cell
	Accounts	...................................	...................................	...................................	...................................
28.	Total (Lines 26 and 27)		1,089,138,506	853,245	1,088,285,261	1,115,284,907
	DETAILS OF WRITE-INS
1101.	......................................................................................................................	....................................	....................................	....................................	....................................
1102.	......................................................................................................................	....................................	....................................	....................................	....................................
1103.	......................................................................................................................	....................................	....................................	....................................	....................................
1198.	Summary of remaining write-ins for Line 11 from overflow page	...................................	...................................	...................................	...................................
1199.	Totals (Lines 1101 through 1103 plus 1198)(Line 11 above)
2501.	.......................................................................................................................	....................................	....................................	....................................	....................................
2502.	.......................................................................................................................	....................................	....................................	....................................	....................................
2503.	.......................................................................................................................	....................................	....................................	....................................	....................................
2598.	...................Summary of remaining write-ins for Line 25 from overflow page	...................................	...................................	...................................	...................................
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)

2

STATEMENT AS OF MARCH 31, 2024 OF THE CONSECO LIFE INSURANCE COMPANY OF TEXAS

LIABILITIES, SURPLUS AND OTHER FUNDS

					1	2
					Current	December 31
					Statement Date	Prior Year
1.	Aggregate reserve for life contracts $	................. 10,516,662	less $	included in Line 6.3
	(including $	Modco Reserve)	10,516,662	10,565,532
2.	Aggregate reserve for accident and health contracts (including $	Modco Reserve)	...................................
3.	Liability for deposit-type contracts (including $	Modco Reserve)	1,486,247	1,472,544
4.	Contract claims:
	4.1 Life		225,153	246,991
	4.2 Accident and health			...................................	...................................
5.	Policyholders' dividends/refunds to members $	and coupons $	due
	and unpaid			...................................	...................................

6. Provision for policyholders' dividends, refunds to members and coupons payable in following calendar year - estimated amounts:

6.1 Policyholders' dividends and refunds to members apportioned for payment (including $ ...................................

		Modco)	........................ 28,062	28,111
	6.2	Policyholders' dividends and refunds to members not yet apportioned (including $	Modco)
	6.3	Coupons and similar benefits (including $	Modco)
7.	Amount provisionally held for deferred dividend policies not included in Line 6
8.	Premiums and annuity considerations for life and accident and health contracts received in advance less
	$	................................... discount; including $	accident and health premiums	..........................1,512	1,188

9. Contract liabilities not included elsewhere:

	9.1	Surrender values on canceled contracts					...................................	...................................
	9.2	Provision for experience rating refunds, including the liability of $	...................................	accident and health
		experience rating refunds of which $	is for medical loss ratio rebate per the Public Health
		Service Act						...................................	...................................
	9.3 Other amounts payable on reinsurance, including $		assumed and $	185
		ceded				185	88
	9.4 Interest Maintenance Reserve			590,316	597,171
10.	Commissions to agents due or accrued-life and annuity contracts $	...................................	, accident and health
	$	...................................	and deposit-type contract funds $		..................................................		...................................	...................................
11.	..............................................................................Commissions and expense allowances payable on reinsurance assumed				...................................	...................................
12.	............................................................................................................................................General expenses due or accrued					...................................	.......................... 3,347
13.	Transfers to Separate Accounts due or accrued (net) (including $		accrued for expense
	allowances recognized in reserves, net of reinsured allowances)					...................................	...................................
14.	Taxes, licenses and fees due or accrued, excluding federal income taxes				................... 4,131,420	................... 2,973,168
15.1	Current federal and foreign income taxes, including $		on realized capital gains (losses)		................. 14,769,510	................... 3,584,278
15.2	Net deferred tax liability						...................................	...................................
16.	Unearned investment income					..........................9,886	..........................8,725
17.	.......................................................................................Amounts withheld or retained by reporting entity as agent or trustee					............................. 483	............................. 175
18.	Amounts held for agents' account, including $	...........................................agents' credit balances		...................................	...................................
19.	........................................................................................................................................Remittances and items not allocated					........................ 23,800	..........................2,522
20.	Net adjustment in assets and liabilities due to foreign exchange rates	....................................................................................				...................................	...................................
21.	.......................................................................................Liability for benefits for employees and agents if not included above					...................................	...................................
22.	Borrowed money $	and interest thereon $	...................................	...........................................		...................................	...................................
23.	.......................................................................................................................Dividends to stockholders declared and unpaid					...................................	...................................
24.	Miscellaneous liabilities:
	...................................................................................................................................................24.01 Asset valuation reserve					........................ 95,631	........................ 91,637
	...................................24.02 Reinsurance in unauthorized and certified ($	.......................................................) companies		...................................	...................................
	24.03 Funds held under reinsurance treaties with unauthorized and certified ($	................................... ) reinsurers		...................................	...................................
	24.04 Payable to parent, subsidiaries and affiliates					............................. 917	........................ 19,540
	...........................................................................................................................................................24.05 Drafts outstanding						...................................	...................................
	............................................................................................................24.06 Liability for amounts held under uninsured plans					...................................	...................................
	........................................................................................................................................24.07 Funds held under coinsurance					...................................	...................................
	24.08 Derivatives						...................................	...................................
	24.09 Payable for securities						...................................	...................................
	.........................................................................................................................................24.10 Payable for securities lending					...................................	...................................
	24.11 Capital notes $	and interest thereon $	...................................	...........................................	...................................	...................................
25.	Aggregate write-ins for liabilities				123,696	122,300
26.	Total liabilities excluding Separate Accounts business (Lines 1 to 25)	.....................................................................................			32,003,480	19,717,317
27.	.........................................................................................................................................From Separate Accounts Statement					...................................	...................................
28.	Total liabilities (Lines 26 and 27)				32,003,480	19,717,317
29.	Common capital stock						700,000	700,000
30.	..............................................................................................................................................................Preferred capital stock						...................................	...................................
31.	..........................................................................................................Aggregate write-ins for other than special surplus funds					...................................	...................................
32.	............................................................................................................................................................................Surplus notes						................749,550,000	................749,550,000
33.	.......................................................................................................................................Gross paid in and contributed surplus					............ 2,827,291,537	............ 2,802,591,537
34.	Aggregate write-ins for special surplus funds					...................................	...................................
35.	Unassigned funds (surplus)						.......... (2,521,259,757)	...........(2,457,273,947)
36.	Less treasury stock, at cost:
	36.1	...................................	shares common (value included in Line 29	$	)
			...................................	...................................
	36.2	...................................	shares preferred (value included in Line 30	$	)
			...................................	...................................
37.	Surplus (Total Lines 31+32+33+34+35-36) (including $		in Separate Accounts Statement)	1,055,581,780	1,094,867,590
38.	Totals of Lines 29, 30 and 37				1,056,281,780	1,095,567,590
39.	Totals of Lines 28 and 38 (Page 2, Line 28, Col. 3)					1,088,285,261	1,115,284,907
	DETAILS OF WRITE-INS
2501.	.......................................................................................................................................................................Unclaimed funds						...................... 123,696	...................... 122,300
2502		....................................	....................................
2503		....................................	....................................
2598.	..............................................................................................Summary of remaining write-ins for Line 25 from overflow page					...................................	...................................
2599.	Totals (Lines 2501 through 2503 plus 2598)(Line 25 above)					123,696	122,300
3101	....................................	....................................

3102. ................................................................................................................................................................................................... .................................... ....................................

3103. ................................................................................................................................................................................................... .................................... ....................................

3198. Summary of remaining write-ins for Line 31 from overflow page .............................................................................................. ................................... ...................................

3199. Totals (Lines 3101 through 3103 plus 3198)(Line 31 above)

3401. ................................................................................................................................................................................................... .................................... ....................................

3402. ................................................................................................................................................................................................... .................................... ....................................

3403. ................................................................................................................................................................................................... .................................... ....................................

3498. Summary of remaining write-ins for Line 34 from overflow page .............................................................................................. ................................... ...................................

3499. Totals (Lines 3401 through 3403 plus 3498)(Line 34 above)

3

STATEMENT AS OF MARCH 31, 2024 OF THE CONSECO LIFE INSURANCE COMPANY OF TEXAS

SUMMARY OF OPERATIONS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Premiums and annuity considerations for life and accident and health contracts	........................ 20,286	........................ 21,375	........................ 80,219
2.	Considerations for supplementary contracts with life contingencies
...................................	...................................	...................................
3.	Net investment income	................. 13,034,041	................. 39,804,974	................393,835,475
4.	Amortization of Interest Maintenance Reserve (IMR)	..........................6,807	..........................5,781	........................ 19,874
5.	Separate Accounts net gain from operations excluding unrealized gains or losses	...................................	...................................	...................................
6.	Commissions and expense allowances on reinsurance ceded	............................... 19	............................... 19	............................... 80
7.	Reserve adjustments on reinsurance ceded	...................................	...................................	...................................
8.	Miscellaneous Income:
	8.1 Income from fees associated with investment management, administration and contract
	guarantees from Separate Accounts	...................................	...................................	...................................
	8.2 Charges and fees for deposit-type contracts	...................................	...................................	...................................
	8.3 Aggregate write-ins for miscellaneous income
9.	Totals (Lines 1 to 8.3)	13,061,153	39,832,149	393,935,648
10.	Death benefits	26,262	.......................178,750	...................... 315,881
11.	Matured endowments (excluding guaranteed annual pure endowments)	..........................6,382	............................(385)	..........................5,155
12.	Annuity benefits	...................................	........................ 19,902	........................ 99,135
13.	Disability benefits and benefits under accident and health contracts	............................... 45	............................... 45	............................. 271
14.	Coupons, guaranteed annual pure endowments and similar benefits	...................................	...................................	...................................
15.	Surrender benefits and withdrawals for life contracts	........................ 47,309	........................ 91,329	.......................217,933
16.	Group conversions	...................................	...................................	...................................
17.	Interest and adjustments on contract or deposit-type contract funds	........................ 12,751	........................ 12,336	........................ 50,490
18.	Payments on supplementary contracts with life contingencies	...................................	...................................	...................................
19.	Increase in aggregate reserves for life and accident and health contracts	(48,870)	(187,109)	(421,167)
20.	Totals (Lines 10 to 19)	........................ 43,880	...................... 114,869	...................... 267,699
21.	Commissions on premiums, annuity considerations, and deposit-type contract funds (direct
	business only)	...................................	...................................	...................................
22.	Commissions and expense allowances on reinsurance assumed	...................................	...................................	...................................
23.	General insurance expenses and fraternal expenses	...................... 124,070	...................... 151,834	...................... 517,098
24.	Insurance taxes, licenses and fees, excluding federal income taxes	...................... (94,485)	.......................(54,474)	.....................(417,772)
25.	Increase in loading on deferred and uncollected premiums	............................. 325	............................(558)	........................ (1,519)
26.	Net transfers to or (from) Separate Accounts net of reinsurance	...................................	...................................	...................................
27.	Aggregate write-ins for deductions
28.	Totals (Lines 20 to 27)	73,790	211,671	365,506
29.	Net gain from operations before dividends to policyholders and federal income taxes (Line 9 minus
	Line 28)	................. 12,987,363	................. 39,620,479	................393,570,141
30.	Dividends to policyholders and refunds to members	5,615	3,850	23,902
31.	Net gain from operations after dividends to policyholders, refunds to members and before federal
	income taxes (Line 29 minus Line 30)	................. 12,981,748	................. 39,616,629	................393,546,239
32.	Federal and foreign income taxes incurred (excluding tax on capital gains)	(3,575,583)	(19,267,787)	(85,582,337)
33.	Net gain from operations after dividends to policyholders, refunds to members and federal income
	taxes and before realized capital gains or (losses) (Line 31 minus Line 32)	................. 16,557,331	................. 58,884,416	................479,128,576

34. Net realized capital gains (losses) (excluding gains (losses) transferred to the IMR) less capital

	gains tax of $	(excluding taxes of $	(13)
	transferred to the IMR)
35.	Net income (Line 33 plus Line 34)		16,557,331	58,884,416	479,128,576
	CAPITAL AND SURPLUS ACCOUNT
36.	Capital and surplus, December 31, prior year	1,095,567,590	1,401,178,564	1,401,178,564
37.	Net income (Line 35)		16,557,331	58,884,416	479,128,576
38.	...............................Change in net unrealized capital gains (losses) less capital gains tax of $	................(50,539,146)	(49,233,621)	(380,628,153)
39.	Change in net unrealized foreign exchange capital gain (loss)	...................................	...................................	...................................
40.	Change in net deferred income tax		(324)	(16,036,087)	(61,570,652)
41.	Change in nonadmitted assets		............................. 325	................. 16,036,086	................. 61,570,648
42.	.......................................Change in liability for reinsurance in unauthorized and certified companies	...................................	...................................	...................................
43.	..........................Change in reserve on account of change in valuation basis, (increase) or decrease	...................................	...................................	...................................
44.	Change in asset valuation reserve		(3,995)	(3,775)	(15,599)
45.	Change in treasury stock		...................................	...................................	...................................
46.	.........................................Surplus (contributed to) withdrawn from Separate Accounts during period	...................................	...................................	...................................
47.	................................................................Other changes in surplus in Separate Accounts Statement	...................................	...................................	...................................
48.	Change in surplus notes		...................................	...................................	...................................
49.	Cumulative effect of changes in accounting principles	...................................	...................................	...................................
50.	Capital changes:
	50.1 Paid in		...................................	...................................	...................................
	..................................................................................50.2 Transferred from surplus (Stock Dividend)	...................................	...................................	...................................
	50.3 Transferred to surplus		...................................	...................................	...................................
51.	Surplus adjustment:
	51.1 Paid in		24,700,000	...................................	34,400,000
	........................................................................................51.2 Transferred to capital (Stock Dividend)	...................................	...................................	...................................
	51.3 Transferred from capital		...................................	...................................	...................................
	...............................................................................51.4 Change in surplus as a result of reinsurance	...................................	...................................	...................................
52.	Dividends to stockholders		................(30,000,000)	................(34,200,000)	..............(438,495,794)
53.	.............................................................................Aggregate write-ins for gains and losses in surplus
54.	Net change in capital and surplus for the year (Lines 37 through 53)	(39,285,810)	(24,552,981)	(305,610,975)
55.	Capital and surplus, as of statement date (Lines 36 + 54)		1,056,281,780	1,376,625,583	1,095,567,590
	DETAILS OF WRITE-INS
08.301.	..............................................................................................................................................................		....................................	....................................	....................................
08.302.	..............................................................................................................................................................		....................................	....................................	....................................
08.303.	..............................................................................................................................................................		....................................	....................................	....................................
........................................................08.398. Summary of remaining write-ins for Line 8.3 from overflow page	...................................	...................................	...................................
08.399. Totals (Lines 08.301 through 08.303 plus 08.398) (Line 8.3 above)
2701	....................................	....................................	....................................
2702	....................................	....................................	....................................
2703	....................................	....................................	....................................
2798.	.........................................................Summary of remaining write-ins for Line 27 from overflow page	...................................	...................................	...................................
2799.	Totals (Lines 2701 through 2703 plus 2798)(Line 27 above)
5301	....................................	....................................	....................................

5302. .............................................................................................................................................................. .................................... .................................... ....................................

5303. .............................................................................................................................................................. .................................... .................................... ....................................

5398. Summary of remaining write-ins for Line 53 from overflow page ............................................................................................ ................................... ...................................

5399. Totals (Lines 5301 through 5303 plus 5398)(Line 53 above)

4

STATEMENT AS OF MARCH 31, 2024 OF THE CONSECO LIFE INSURANCE COMPANY OF TEXAS

CASH FLOW

Cash from Operations

1

Current Year

To Date

2

Prior Year

To Date

3

Prior Year Ended

December 31

1.	Premiums collected net of reinsurance	........................ 20,970	........................ 23,369	........................ 83,331
2.	Net investment income	................. 13,098,410	................. 39,802,636	................393,815,843
3.	Miscellaneous income	19	19	80
4.	Total (Lines 1 to 3)	13,119,399	39,826,024	393,899,254
5.	Benefit and loss related payments	...................... 114,490	...................... 241,915	...................... 661,922
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts	...................................	...................................	...................................
7.	...............................................Commissions, expenses paid and aggregate write-ins for deductions	................. (1,125,321)	........................ 23,302	................. (1,148,233)
8.	Dividends paid to policyholders	..........................5,664	.......................... 5,763	........................ 25,969
9.	Federal and foreign income taxes paid (recovered) net of $	(13) tax on capital
	gains (losses)	(15,997,187)	(17,723,819)	(70,603,279)
10.	Total (Lines 5 through 9)	(17,002,353)	(17,452,839)	(71,063,621)
11.	Net cash from operations (Line 4 minus Line 10)	30,121,752	57,278,864	464,962,875

Cash from Investments

12. Proceeds from investments sold, matured or repaid:

12.1	Bonds	............................. 359	............................. 214	............................. 878
12.2	Stocks	...................................	...................................	...................................
12.3	Mortgage loans	...................................	...................................	...................................
12.4	Real estate	...................................	...................................	...................................
12.5	Other invested assets	...................................	...................................	...................................
12.6	Net gains or (losses) on cash, cash equivalents and short-term investments	............................. (61)	........................ (4,780)	........................ (8,895)
12.7	Miscellaneous proceeds
12.8 Total investment proceeds (Lines 12.1 to 12.7)	............................. 298	........................ (4,565)	........................ (8,018)

13. Cost of investments acquired (long-term only):

	13.1	Bonds	...................................	...................................	...................................
	13.2	Stocks	................. 26,750,000	................. 28,750,000	................. 73,250,000
	13.3	Mortgage loans	...................................	...................................	...................................
	13.4	Real estate	...................................	...................................	...................................
	13.5	Other invested assets	...................................	...................................	...................................
	13.6	Miscellaneous applications
	13.7	Total investments acquired (Lines 13.1 to 13.6)	26,750,000	28,750,000	73,250,000
14.	Net increase (or decrease) in contract loans and premium notes	(1,402)	6,497	12,793
15.	Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)	(26,748,300)	(28,761,062)	(73,270,811)
		Cash from Financing and Miscellaneous Sources
16.	Cash provided (applied):
	16.1	Surplus notes, capital notes	...................................	...................................	...................................
	16.2	Capital and paid in surplus, less treasury stock	................. 24,700,000	...................................	................. 34,400,000
	16.3	Borrowed funds	...................................	...................................	...................................
	16.4	Net deposits on deposit-type contracts and other insurance liabilities	........................ 13,703	.......................(42,795)	.......................(74,439)
	..........................................................................................................16.5 Dividends to stockholders	................. 30,000,000	................. 34,200,000	................438,495,794
	....................................................................................................16.6 Other cash provided (applied)	3,369	11,550	(476)
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)	(5,282,928)	(34,231,244)	(404,170,709)
	RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
18.	.Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	................. (1,909,475)	................. (5,713,443)	................(12,478,645)
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year	..................33,613,787	................. 46,092,432	................. 46,092,432
	19.2 End of period (Line 18 plus Line 19.1)	31,704,312	40,378,990	33,613,787

Note: Supplemental disclosures of cash flow information for non-cash transactions:

5

STATEMENT AS OF MARCH 31, 2024 OF THE CONSECO LIFE INSURANCE COMPANY OF TEXAS

EXHIBIT 1

DIRECT PREMIUMS AND DEPOSIT-TYPE CONTRACTS

		1	2	3
		Current Year	Prior Year	Prior Year Ended
		To Date	To Date	December 31
1.	Individual life	........................ 20,688	........................ 21,819	........................ 82,023
2.	Group life	...................................	...................................	...................................
3.	Individual annuities	...................................	...................................	...................................
4.	Group annuities	...................................	...................................	...................................
5.	Accident & health	...................................	...................................	...................................
6.	Fraternal	...................................	...................................	...................................
7.	Other lines of business	...................................	...................................	...................................
8.	Subtotal (Lines 1 through 7)	20,688	21,819	82,023
9.	Deposit-type contracts	...................................	...................................	...................................
10.	Total (Lines 8 and 9)	20,688	21,819	82,023

6

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