8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: February 9, 2015

HORACE MANN EDUCATORS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-10890	37-0911756
(State of incorporation)	(Commission File Number)	(I.R.S. Employer
		Identification No.)

1 Horace Mann Plaza, Springfield, Illinois 62715-0001

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: 217-789-2500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Forward-looking Information

Statements included in the accompanying press release that state Horace Mann Educators Corporation's (the “Company”) or its management's intentions, hopes, beliefs, expectations or predictions of future events or the Company's future financial performance are forward-looking statements and involve known and unknown risks, uncertainties and other factors. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Please refer to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2014 and the Company’s past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements.

Item 2.02:          Results of Operations and Financial Condition

On February 9, 2015, Horace Mann Educators Corporation issued a press release reporting its financial results for the three and twelve month periods ended December 31, 2014. A copy of the press release is attached as Exhibit 99.2 and is incorporated by reference herein.

The Company’s Investor Financial Supplement has been posted on the investors page of its website, investors.horacemann.com, and the Investor Presentation is anticipated to be posted there on February 10, 2015.

Item 9.01:          Financial Statements and Exhibits

(d)      Exhibits.

99.1 Glossary of Selected Terms

99.2 Press release dated February 9, 2015 reporting financial results for the three and twelve month periods ended December 31, 2014.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HORACE MANN EDUCATORS CORPORATION
By:	/s/ Bret A. Conklin
	Name: Bret A. Conklin
	Title:  Senior Vice President & Controller
	(Principal Accounting Officer)

Date: February 9, 2015

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EX-99.1

Exhibit 99.1

Glossary of Selected Terms

The following measures are used by the Company's management to evaluate performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, may be considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statement of Operations or Consolidated Balance Sheets, and in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in a GAAP financial measure. In the opinion of the Company's management, a discussion of these measures is meaningful to provide investors with an understanding of the significant factors that comprise the Company's periodic results of operations and financial condition.

Agent - A licensed representative of an insurer in marketing insurance products.

· Exclusive Agency - A local Horace Mann agency created and owned by an independent contractor who has signed an Exclusive Agent agreement with the Company (an “Exclusive Agent”).  That agreement states that only the Company's products and limited additional third-party vendor products authorized by the Company will be marketed by the agency.  An independent contractor may sign multiple Exclusive Agent agreements with the Company and manage more than one Exclusive Agency.

· Employee Agents - Agents who have employee status with the Company and by contract market only the Company's products and limited additional third-party vendor products authorized by the Company.

· Independent Agents - Non-exclusive independent contractors who are under contract with the Company to market the Company's annuity products but who are not restricted to writing only the Company's products and products authorized by the Company.

Book value per share excluding the fair value adjustment for investments - The result of dividing total shareholders' equity excluding after tax net unrealized gains and losses on fixed maturities and equity securities, including the related effect on certain deferred policy acquisition costs and value of acquired insurance in force, by ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding unrealized net investment gains and losses in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company’s underlying insurance operations. 

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Catastrophe costs - The sum of catastrophe losses and property and casualty catastrophe reinsurance reinstatement premiums.

Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports loss and loss adjustment expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their effects are not included in earnings or claim and claim adjustment expense reserves prior to occurrence. In the opinion of the Company's management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Insurance premiums written and contract deposits - Premiums written represent (1) the amount charged for policies issued during a fiscal period for property and casualty business, such amounts may be earned and included in financial results over future fiscal periods, and (2) the amount charged for policies in force during a fiscal period for traditional life and group life business. Amounts are reported net of reinsurance, unless otherwise specified. Contract deposits include amounts received from customers on deposit-type contracts, such as annuities and interest-sensitive life policy accounts, including deposit amounts and any related contract or policy fees. Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating the business growth of its operating segments. Insurance premiums and contract charges earned is the most directly comparable GAAP measure.

Net Reserves - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables.

Operating income or Net income before realized investment gains and losses - Net income adjusted to exclude after tax realized investment gains and losses. Net income is the most directly comparable GAAP measure. Management believes the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in the business that may be obscured by the net effect of realized investment gains and losses. Realized investment gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments that are unrelated to the insurance underwriting process. Operating income is used by management along with other components of net income to assess their performance and adjusted measures of operating income and operating income per diluted share are used in incentive compensation programs. Management believes that a projection of net income including after tax realized investment gains and losses is not appropriate on a forward-looking basis because it is not possible to provide a valid forecast of realized investment gains and losses, which can vary substantially from one period to another and may have a significant impact on net income.

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Prior Years' Reserve Development - A measure which the Company reports for its property and casualty segment which identifies the increase or decrease in net incurred claim and claim adjustment expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of the Company's management, a discussion of prior years' loss reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years.

Property and casualty operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results.

· Loss Ratio or Loss and Loss Adjustment Expense Ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net earned premiums.

· Expense Ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs to (2) net earned premiums.

· Combined Ratio - The sum of the Loss Ratio and the Expense Ratio.  A Combined Ratio less than 100% generally indicates profitable underwriting prior to the consideration of investment income.

· Combined Ratio Excluding Catastrophes and Prior Years' Reserve Development or Underlying Combined Ratio - The sum of the Loss Ratio and the Expense Ratio adjusted to remove the effect of catastrophe costs and prior years' reserve development.  The Combined Ratio is the most directly comparable GAAP measure.  Management believes this ratio provides a valuable measure of the Company’s underlying underwriting performance that may be obscured by the effects of catastrophe costs and prior years’ reserve development, the amounts of which may be significant and may vary significantly between periods.

Return on equity - The ratio of (1) trailing 12-month net income to (2) the average of ending shareholders' equity for the current quarter end and the preceding four quarter ends.

Sales or Annualized New Sales - Sales represent the amount of new business sold during the period and exclude renewal of policies sold in previous periods. Sales are measured by the Company as premiums and deposits to be collected over the 12 months following the sale of a new policy for annuity, life, automobile and homeowners business, as well as increases in contributions to annuity and certain life business, and this time period may extend into the following calendar year. In addition, the Company discloses new policy count (units) information for automobile and homeowners business. Sales data pertains to Horace Mann products and excludes authorized products sold by Employee Agents, Exclusive Agents, and their licensed staff which are underwritten by third-party vendors. Sales should not be viewed as a substitute for any financial measure determined in accordance with GAAP, including "sales" as it relates to non-insurance companies, and the Company's definition of sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends.

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EX-99.2

Exhibit 99.2

 [Horace Mann Educators Corporation logo]

Contact information:

Ryan Greenier, Vice President, Investor Relations

217-788-5738

HORACE MANN REPORTS FOURTH QUARTER 2014

OPERATING EPS OF $0.68

· Full year operating income of $2.30 per diluted share

· Strong sales growth in all business segments, led by new fixed indexed annuity product

· Book value per share excluding the fair value adjustment for investments of $25.38, up 7% compared to a year ago

· Full year 2015 operating income guidance of $2.15 to $2.35 per diluted share

SPRINGFIELD, Ill., February 9, 2015 — Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the three and twelve months ended December 31, 2014:

Horace Mann Financial Highlights
	Three months ended December 31,			Twelve months ended December 31,
($ in millions, except per share amounts)	2014	2013	Change	2014	2013	Change
Total revenues	$269.1	$259.1	3.9%	$1,060.7	$1,031.2	2.9%
Net income	30.0	34.3	-12.5%	104.2	110.9	-6.0%
Net income per diluted share	0.71	0.81	-12.3%	2.47	2.66	-7.1%
Operating income*	28.7	33.4	-14.1%	97.3	96.5	0.8%
Operating income per diluted share*	0.68	0.79	-13.9%	2.30	2.32	-0.9%
Book value per share				32.65	27.14	20.3%
Book value per share excluding the fair value adjustment for investments*				25.38	23.83	6.5%
Property and Casualty segment net income	16.2	19.0	-14.7%	46.9	44.4	5.6%
Property and Casualty combined ratio	91.9%	87.4%	4.5 pts	96.1%	96.3%	-0.2 pts
Property and Casualty underlying combined ratio*	94.4%	91.0%	3.4 pts	92.5%	92.4%	0.1 pts
Annuity segment net income	$  11.2	$ 12.8	-12.5%	$     45.3	$     44.7	1.3%
Life segment net income	4.7	4.7	0.0%	17.5	20.4	-14.2%

 * These measures are not based on accounting principles generally accepted in the United States (“non-GAAP”). They are reconciled to the most directly comparable GAAP measures in the supplemental numerical pages of this document. An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the company’s reports filed with the SEC.

“Including fourth quarter operating income of $0.68 per diluted share, Horace Mann’s full year operating income was $2.30 per diluted share, reflecting another year of strong performance across all three segments of our multiline insurance platform. Sales in the fourth quarter were strong, with double-digit increases in all three of our segments,” said Horace Mann’s President and CEO Marita Zuraitis. “The full year property and casualty combined ratio of 96.1% reflected a decreased level of catastrophe

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losses and continued improvement in auto underlying results, partially offset by a higher level of non-catastrophe losses in property. Excluding unlocking, net income in the annuity segment increased 9% for the year, primarily due to growth in assets under management as well as proactive actions to maintain favorable net interest spreads. For the life segment, net income decreased primarily due to a more normal level of mortality losses, compared to the favorable experience for full year 2013. Annuity sales continued to be strong, up over 20% for the quarter and full year, led by sales of the new fixed indexed annuity product. Sales of our life products with recurring premiums increased 50% for the quarter and 30% on a full year basis. And, auto sales increased 13% and 6% for the quarter and full year, respectively.”

“We are projecting full-year 2015 operating income of between $2.15 and $2.35 per diluted share,” stated Zuraitis. “This estimate anticipates continued improvement in our underlying property and casualty combined ratio, somewhat offset by a lower amount of favorable prior years’ reserve development, investment interest rate pressure and continued strategic investments in our operations.”

Property and Casualty Segment

For the full year, property and casualty net income of $46.9 million increased $2.5 million compared to 2013. The combined ratio of 96.1% improved 0.2 percentage point and the underlying combined ratio was comparable to full year 2013, primarily reflecting improvement in the underlying auto loss ratio. This improvement was offset somewhat by a higher underlying property loss ratio, resulting from a recent trend of more severe non-catastrophe weather. Both catastrophe losses and favorable prior years’ reserve development were slightly lower than the 2013 amounts. On an underlying basis, the full year auto combined ratio of 101.0% improved 1.1 points, reflecting improvement in the loss ratio. For property, the underlying combined ratio of 76.5% was 3.5 percentage points higher than the prior year, reflecting the aforementioned trend of more severe non-catastrophe weather. The full year total property and casualty expense ratio of 27.4% was comparable to the prior year.

For the fourth quarter of 2014, property and casualty net income of $16.2 million declined 15% compared to the prior year. The current quarter total property and casualty combined ratio of 91.9% increased 4.5 points compared to the prior year, reflecting the impact of elevated seasonal loss experience in auto and lower favorable prior years’ reserve development somewhat offset by a reduction in catastrophe losses. On an underlying basis, the fourth quarter auto combined ratio of 107.5% increased 3.3 points compared to a year earlier. For property, the underlying combined ratio was 70.5% for the current quarter, an increase of 4.7 points compared to a year earlier.

Total property and casualty written premiums of $144.4 million and $584.4 million each increased 2% compared to the three and twelve months ended December 31, 2013, respectively. The growth was driven by increases in average premium per policy for both auto and property accompanied by reductions in catastrophe reinsurance costs.

Total property and casualty sales increased 11% and 3% compared to the fourth quarter and twelve months ended December 31, 2013, respectively. Auto sales increased 13% and 6% compared to the fourth quarter and full year 2013, respectively, while property sales increased 5% for the fourth quarter and decreased 6% for the full year. Policy retention continues to be strong with auto and property policy retention rates for the current year at 85% and 88%, respectively.

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Annuity Segment

Annuity segment net income increased $0.6 million to $45.3 million for the full year, and decreased $1.6 million to $11.2 million compared to the prior year fourth quarter. These 2014 results included $1.2 million of negative pretax unlocking for the twelve months and $0.3 million of negative pretax unlocking for the fourth quarter, compared to positive unlocking of $3.7 million and $1.8 million in the respective prior year periods.

For the full year 2014, the net interest spread of 201 basis points on fixed annuity assets reflected continued solid investment portfolio performance and proactive crediting rate management, which contributed to a 10% increase in the net interest margin compared to 2013. Total annuity assets under management of $5.7 billion increased 6% compared to December 31, 2013, and total cash value persistency remained strong at approximately 94%.

For the three and twelve months ended December 31, 2014, annuity deposits of $118.9 million and $480.6 million increased 12% and 14%, respectively, compared to the prior year periods, primarily due to an increase in the amount of single premium and rollover deposits received in the current periods, with recurring deposit receipts also exceeding the prior year amounts.

In 2014, Horace Mann’s total annuity sales for the fourth quarter and full year increased over 20%, led by sales of the company’s new fixed indexed annuity product. Annuity sales by the company’s agency force increased approximately 30% compared to the three and twelve months ended December 31, 2013, respectively, while annuity sales from the independent agent distribution channel, which currently produces about 10% of total annuity sales, decreased 30% and 8% compared to the same periods.

Life Segment

Life segment net income of $17.5 million for the full year decreased $2.9 million compared to 2013, primarily attributable to a more normal level of mortality losses — consistent with actuarial models — in the current year, compared to the favorable experience in 2013. Net income of $4.7 million for the fourth quarter was equal to the prior year period, including a current period favorable variance in the level of mortality losses.

In 2014, life segment insurance premiums and contract deposits of $29.0 million and $102.7 million for the fourth quarter and full year, respectively, increased 6% and 2% compared to the same periods in 2013. Life persistency of 96% was comparable to 12 months earlier. For the full year, life sales of $11.1 million increased 31% compared to 2013, including notable growth in the fourth quarter.

Investment Results

Total net investment income increased 3% and 5% compared to the three and twelve months ended December 31, 2013, respectively, reflecting higher asset balances in the annuity segment, as well as continued strong performance in the fixed maturity and alternative investment portfolios. Pretax net realized investment gains were $2.2 million and $10.9 million in the current quarter and twelve months, respectively.

Horace Mann’s net unrealized investment gains on fixed maturity and equity securities were $528.6 million at December 31, 2014, compared to $479.5 million of net unrealized gains at September 30, 2014. Net unrealized gains were $232.5 million at December 31, 2013.

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Webcast Conference Call

Horace Mann’s senior management will discuss the company’s fourth quarter financial results with investors and analysts on February 10, 2015 at 9:30 a.m. Eastern Time. The conference call will be webcast live on the Internet at investors.horacemann.com and archived later in the day for replay.

Horace Mann — the largest national multiline insurance company focusing on educators' financial needs — provides auto and homeowners insurance, retirement annuities, life insurance and other financial solutions. Founded by Educators for Educators^® in 1945, the company is headquartered in Springfield, Ill. For more information, visit www.horacemann.com.

Statements included in this news release that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the company's Quarterly Report on Form 10-Q for the period ended September 30, 2014 and the company's past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements. The information contained in this press release includes financial measures which are based on methodologies other than United States generally accepted accounting principles (“GAAP”). Reconciliations of non-GAAP measures to the closest GAAP measures are contained in the supplemental numerical pages of this release and additional descriptions of the non-GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to the company’s SEC filings.

# # #

 HORACE MANN EDUCATORS CORPORATION

Financial Highlights (Unaudited)

(Dollars in Millions, Except Per Share Data)

	Three Months Ended							Year Ended
	December 31,							December 31,
	2014		2013		% Change			2014			2013			% Change
EARNINGS SUMMARY
Net income	$	30.0	$	34.3		-12.5	%	$	104.2		$	110.9			-6.0	%
Net realized investment gains, after tax		1.3		0.9		44.4	%		6.9			14.4			-52.1	%
Operating income (A)		28.7		33.4		-14.1	%		97.3			96.5			0.8	%
Per diluted share:
Net income	$	0.71	$	0.81		-12.3	%	$	2.47		$	2.66			-7.1	%
Net realized investment gains, after tax	$	0.03	$	0.02		50.0	%	$	0.17		$	0.34			-50.0	%
Operating income (A)	$	0.68	$	0.79		-13.9	%	$	2.30		$	2.32			-0.9	%
Weighted average number of shares and equivalent shares (in millions) - Diluted		42.4		42.2		0.5	%		42.2			41.6			1.4	%
RETURN ON EQUITY
Net income return on equity (B)									8.4	%		9.6	%		N.M.
Operating income return on equity excluding the fair value adjustment for investments (A) (C)									9.7	%		10.6	%		N.M.
FINANCIAL POSITION
Per share (D):
Book value								$	32.65		$	27.14			20.3	%
Effect of the fair value adjustment for investments (E)								$	7.27		$	3.31			119.6	%
Book value excluding the fair value adjustment for investments (A)								$	25.38		$	23.83			6.5	%
Dividends paid	$	0.230	$	0.195		17.9	%	$	0.92		$	0.78			17.9	%
Ending number of shares outstanding (in millions) (D)									40.9			40.5			1.0	%
Total assets								$	9,768.5		$	8,826.7			10.7	%
Short-term debt									38.0			38.0			-
Long-term debt, current and noncurrent									199.9			199.9			-
Total shareholders' equity									1,336.5			1,099.3			21.6	%
ADDITIONAL INFORMATION
Exclusive agencies (F)									682			654			4.3	%
Employee agents (G)									73			105			-30.5	%
Total									755			759			-0.5	%

N.M. - Not meaningful.

(A) These measures are not based on accounting principles generally accepted in the United States ("non-GAAP"). An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the Company's reports filed with the SEC.

(B) Based on trailing 12-month net income and average quarter-end shareholders' equity.

(C) Based on trailing 12-month operating income and average quarter-end shareholders' equity which has been adjusted to exclude the fair value adjustment for investments, net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.

(D) Ending shares outstanding were 40,936,618 at December 31, 2014 and 40,511,551 at December 31, 2013.

(E) Net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.

(F) Local Horace Mann agencies created and owned by independent contractors who have signed Exclusive Agent agreements with the Company ("Exclusive Agents"). Those agreements state that only the Company's products and limited additional third-party vendor products authorized by the Company will be marketed by the agencies. An independent contractor may sign multiple Exclusive Agent agreements with the Company and manage more than one Exclusive Agency.

(G) Agents who have employee status with the Company and by contract market only the Company's products and limited additional third-party vendor products authorized by the Company.

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HORACE MANN EDUCATORS CORPORATION

Statements of Operations and Supplemental Consolidated Data (Unaudited)

(Dollars in Millions)

	Three Months Ended									Year Ended
	December 31,									December 31,
	2014			2013			% Change			2014			2013		% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	182.2		$	176.4			3.3	%	$	715.8		$	690.9		3.6	%
Net investment income		82.8			80.4			3.0	%		329.8			313.6		5.2	%
Net realized investment gains		2.2			1.3			69.2	%		10.9			22.2		-50.9	%
Other income		1.9			1.0			90.0	%		4.2			4.5		-6.7	%
Total revenues		269.1			259.1			3.9	%		1,060.7			1,031.2		2.9	%
Benefits, claims and settlement expenses		111.8			102.1			9.5	%		468.4			448.3		4.5	%
Interest credited		44.8			43.5			3.0	%		176.1			169.9		3.6	%
Policy acquisition expenses amortized		23.8			20.6			15.5	%		93.8			84.6		10.9	%
Operating expenses		43.0			40.9			5.1	%		162.1			160.1		1.2	%
Interest expense		3.6			3.5			2.9	%		14.2			14.2		-
Total benefits, losses and expenses		227.0			210.6			7.8	%		914.6			877.1		4.3	%
Income before income taxes		42.1			48.5			-13.2	%		146.1			154.1		-5.2	%
Income tax expense		12.1			14.2			-14.8	%		41.9			43.2		-3.0	%
Net income	$	30.0		$	34.3			-12.5	%	$	104.2		$	110.9		-6.0	%
PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty	$	144.4		$	141.8			1.8	%	$	584.4		$	570.4		2.5	%
Annuity deposits		118.9			106.2			12.0	%		480.6			423.0		13.6	%
Life		29.0			27.4			5.8	%		102.7			100.8		1.9	%
Total	$	292.3		$	275.4			6.1	%	$	1,167.7		$	1,094.2		6.7	%
SEGMENT NET INCOME (LOSS)
Property & Casualty	$	16.2		$	19.0			-14.7	%	$	46.9		$	44.4		5.6	%
Annuity		11.2			12.8			-12.5	%		45.3			44.7		1.3	%
Life		4.7			4.7			-			17.5			20.4		-14.2	%
Corporate and other (A)		(2.1	)		(2.2	)		-4.5	%		(5.5	)		1.4		N.M.
Net income	$	30.0		$	34.3			-12.5	%	$	104.2		$	110.9		-6.0	%

N.M. - Not meaningful.

(A) The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. See detail for this segment on page 4.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended									Year Ended
	December 31,									December 31,
	2014			2013			% Change			2014			2013			% Change
PROPERTY & CASUALTY
Premiums written	$	144.4		$	141.8			1.8	%	$	584.4		$	570.4			2.5	%
Premiums earned		147.7			143.7			2.8	%		581.8			561.9			3.5	%
Net investment income		9.2			9.3			-1.1	%		36.8			36.2			1.7	%
Other income		1.2			-			N.M.			1.4			0.2			N.M.
Losses and loss adjustment expenses (LAE)		94.7			85.5			10.8	%		399.5			385.6			3.6	%
Operating expenses (includes policy acquisition expenses amortized)		41.2			40.0			3.0	%		159.7			155.5			2.7	%
Income before tax		22.2			27.5			-19.3	%		60.8			57.2			6.3	%
Net income		16.2			19.0			-14.7	%		46.9			44.4			5.6	%
Net investment income, after tax		7.7			7.7			-			30.9			30.5			1.3	%
Catastrophe costs (A)
After tax		1.3			1.9			-31.6	%		24.4			26.1			-6.5	%
Before tax		2.0			2.9			-31.0	%		37.5			40.2			-6.7	%
Prior years' reserves favorable (adverse) development, before tax
Automobile		2.7			7.5			-64.0	%		13.2			17.2			-23.3	%
Property		2.2			0.6			266.7	%		2.2			0.8			175.0	%
Other property and casualty		0.7			-			N.M.			1.6			-			N.M.
Total		5.6			8.1			-30.9	%		17.0			18.0			-5.6	%
Operating statistics:
Loss and loss adjustment expense ratio		64.1	%		59.5	%		N.M.			68.7	%		68.6	%		N.M.
Expense ratio		27.8	%		27.9	%		N.M.			27.4	%		27.7	%		N.M.
Combined ratio		91.9	%		87.4	%		N.M.			96.1	%		96.3	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (A)		1.3	%		2.1	%		N.M.			6.5	%		7.2	%		N.M.
Prior years' reserve development		-3.8	%		-5.7	%		N.M.			-2.9	%		-3.3	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years' reserve development ("underlying combined ratio") (B)		94.4	%		91.0	%		N.M.			92.5	%		92.4	%		N.M.
Policies in force (voluntary) (in thousands)											710			717			-1.0	%
Automobile											481			482			-0.2	%
Property											229			235			-2.6	%
Policy renewal rate (voluntary) - 12 months
Automobile											84.7	%		84.8	%		N.M.
Property											87.9	%		89.0	%		N.M.

N.M. - Not meaningful.

(A) Includes allocated loss adjustment expenses and, when applicable, catastrophe reinsurance reinstatement premiums. For the periods presented, there were no reinsurance reinstatement premiums.

(B) This measure is not based on accounting principles generally accepted in the United States ("non-GAAP"). See footnote (A) on page 1 of these supplemental numerical pages.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended									Year Ended
	December 31,									December 31,
	2014			2013			% Change			2014			2013			% Change
ANNUITY
Contract deposits	$	118.9		$	106.2			12.0	%	$	480.6		$	423.0			13.6	%
Variable		38.2			34.6			10.4	%		140.6			131.7			6.8	%
Fixed		80.7			71.6			12.7	%		340.0			291.3			16.7	%
Contract charges earned		6.6			5.9			11.9	%		25.6			22.6			13.3	%
Net investment income		55.9			53.6			4.3	%		222.1			208.4			6.6	%
Interest credited		33.8			32.7			3.4	%		132.5			127.0			4.3	%
Net interest margin (without realized investment gains/losses)		22.1			20.9			5.7	%		89.6			81.4			10.1	%
Other income		0.5			0.7			-28.6	%		1.8			3.0			-40.0	%
Mortality loss and other reserve changes		(0.5	)		(0.4	)		25.0	%		(2.2	)		(1.8	)		22.2	%
Operating expenses (includes policy acquisition expenses amortized)		12.7			9.8			29.6	%		48.1			42.0			14.5	%
Income before tax		16.0			17.3			-7.5	%		66.7			63.2			5.5	%
Net income		11.2			12.8			-12.5	%		45.3			44.7			1.3	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	(0.3	)	$	1.8			N.M.		$	(1.2	)	$	3.7			N.M.
Guaranteed minimum death benefit reserve		-			0.1			-100.0	%		(0.1	)		0.2			N.M.
Annuity contracts in force (in thousands)											203			195			4.1	%
Accumulated account value on deposit / Assets under management										$	5,698.7		$	5,365.2			6.2	%
Variable											1,813.6			1,748.0			3.8	%
Fixed											3,885.1			3,617.2			7.4	%
Annuity accumulated value retention - 12 months
Variable accumulations											94.0	%		94.0	%		N.M.
Fixed accumulations											94.5	%		95.2	%		N.M.
LIFE
Premiums and contract deposits	$	29.0		$	27.4			5.8	%	$	102.7		$	100.8			1.9	%
Premiums and contract charges earned		27.9			26.8			4.1	%		108.4			106.4			1.9	%
Net investment income		17.9			17.7			1.1	%		71.8			69.9			2.7	%
Other income		0.3			0.3			-			1.1			1.3			-15.4	%
Death benefits/mortality cost/change in reserves		16.6			16.2			2.5	%		66.7			60.9			9.5	%
Interest credited		11.0			10.8			1.9	%		43.6			42.9			1.6	%
Operating expenses (includes policy acquisition expenses amortized)		11.4			10.8			5.6	%		44.1			42.5			3.8	%
Income before tax		7.1			7.0			1.4	%		26.9			31.3			-14.1	%
Net income		4.7			4.7			-			17.5			20.4			-14.2	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	0.1		$	-			N.M.		$	0.1		$	(0.1	)		N.M.
Life policies in force (in thousands)											201			200			0.5	%
Life insurance in force										$	15,801		$	15,104			4.6	%
Lapse ratio - 12 months
(Ordinary life insurance)											4.0	%		4.4	%		N.M.
CORPORATE AND OTHER (A)
Components of income (loss) before tax:
Net realized investment gains	$	2.2		$	1.3			69.2	%	$	10.9		$	22.2			-50.9	%
Interest expense		(3.6	)		(3.5	)		2.9	%		(14.2	)		(14.2	)		-
Other operating expenses, net investment income and other income		(1.8	)		(1.1	)		63.6	%		(5.0	)		(5.6	)		-10.7	%
Income (loss) before tax		(3.2	)		(3.3	)		-3.0	%		(8.3	)		2.4			N.M.
Net income (loss)		(2.1	)		(2.2	)		-4.5	%		(5.5	)		1.4			N.M.

N.M. - Not meaningful.

(A) The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions) 

	Three Months Ended							Year Ended
	December 31,							December 31,
	2014		2013		% Change			2014		2013		% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2014, $5,597.1; 2013, $5,023.2)								$	6,066.1	$	5,243.3		15.7	%
Equity securities, at fair value (cost 2014, $41.5;  2013, $35.5)									39.7		32.4		22.5	%
Short-term investments									94.9		152.9		-37.9	%
Policy loans									145.4		140.6		3.4	%
Other investments									76.0		59.9		26.9	%
Total Annuity and Life investments									6,422.1		5,629.1		14.1	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2014, $778.1;  2013, $761.0)									827.0		766.3		7.9	%
Equity securities, at fair value (cost 2014, $58.4;  2013, $49.3)									70.9		59.5		19.2	%
Short-term investments									4.1		13.6		-69.9	%
Other investments									36.3		30.7		18.2	%
Total Property & Casualty investments									938.3		870.1		7.8	%
Corporate investments									43.1		40.3		6.9	%
Total investments									7,403.5		6,539.5		13.2	%
Net investment income
Before tax	$	82.8	$	80.4		3.0	%	$	329.8	$	313.6		5.2	%
After tax		55.6		53.9		3.2	%		221.4		210.8		5.0	%
Net realized investment gains
Before tax	$	2.2	$	1.3		69.2	%	$	10.9	$	22.2		-50.9	%
After tax		1.3		0.9		44.4	%		6.9		14.4		-52.1	%
Per share, diluted	$	0.03	$	0.02		50.0	%	$	0.17	$	0.34		-50.0	%

N.M. - Not meaningful. 

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