Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Registrant [Abstract]

Condensed Financial Information of Registrant

SCHEDULE II

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

BALANCE SHEETS

As of December 31, 2013 and 2012

(Dollars in thousands, except per share data)

	December 31,
	2013		2012
ASSETS
Investments and cash	$	24,387	$	29,554
Investment in subsidiaries		1,282,614		1,406,641
Other assets		60,164		52,223
Total assets	$	1,367,165	$	1,488,418
LIABILITIES AND SHAREHOLDERS’ EQUITY
Short-term debt	$	38,000	$	38,000
Long-term debt		199,874		199,809
Other liabilities		29,986		4,806
Total liabilities		267,860		242,615
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued		-		-
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2013,     63,629,105; 2012, 62,311,787		64		62
Additional paid-in capital		407,056		383,135
Retained earnings		1,000,312		921,969
Accumulated other comprehensive income (loss), net of taxes:
Net unrealized gains on fixed maturities and equity securities		133,990		382,400
Net funded status of pension and other postretirement benefit obligations		(11,776)		(15,311)
Treasury stock, at cost, 2013, 23,117,554 shares; 2012, 22,943,925 shares		(430,341)		(426,452)
Total shareholders' equity		1,099,305		1,245,803
Total liabilities and shareholders' equity	$	1,367,165	$	1,488,418

See accompanying note to condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF OPERATIONS

(Dollars in thousands)

	Year Ended December 31,
	2013		2012		2011
Revenues
Net investment income	$	6	$	2	$	(3)
Realized investment gains		208		-		-
Total revenues		214		2		(3)
Expenses
Interest		14,236		14,249		14,007
Other		4,832		4,576		3,590
Total expenses		19,068		18,825		17,597
Loss before income tax benefit and equity in net earnings of subsidiaries		(18,854)		(18,823)		(17,600)
Income tax benefit		(6,599)		(6,196)		(8,197)
Loss before equity in net earnings of subsidiaries		(12,255)		(12,627)		(9,403)
Equity in net earnings of subsidiaries		123,148		116,493		79,909
Net income	$	110,893	$	103,866	$	70,506

See accompanying note to condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

	Year Ended December 31,
	2013		2012		2011
Cash flows - operating activities
Interest expense paid	$	(13,825)	$	(13,948)	$	(13,515)
Federal income taxes (paid) recovered		5,996		(118)		12,058
Cash dividends received from subsidiaries		41,000		50,000		26,000
Other, net, including settlement of payables to subsidiaries		(21,235)		7,703		(10,012)
Net cash provided by operating activities		11,936		43,637		14,531
Cash flows - investing activities
Net (increase) decrease in investments		5,488		(10,762)		4,240
Net cash provided by (used in) investing activities		5,488		(10,762)		4,240
Cash flows - financing activities
Dividends paid to shareholders		(32,550)		(22,541)		(18,990)
Acquisition of treasury stock		(3,889)		(15,735)		(2,047)
Exercise of stock options		19,336		5,421		2,127
Net cash used in financing activities		(17,103)		(32,855)		(18,910)
Net increase (decrease) in cash		321		20		(139)
Cash at beginning of period		149		129		268
Cash at end of period	$	470	$	149	$	129

See accompanying note to condensed financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

 

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT

NOTE TO CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the accompanying notes thereto.