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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [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, 2016 and 2015
(Dollars in thousands, except per share data) 
 
 
 
 
December 31,
 
 
 
 
2016
 
 
 
2015
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Investments and cash
 
$
4,069
 
 
$
13,237
 
Investment in subsidiaries
 
 
1,487,457
 
 
 
1,451,290
 
Other assets
 
 
60,057
 
 
 
57,743
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,551,583
 
 
$
1,522,270
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Long-term debt
 
$
247,209
 
 
$
246,975
 
Other liabilities
 
 
10,392
 
 
 
10,634
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
257,601
 
 
 
257,609
 
 
 
 
 
 
 
 
 
 
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, 2016, 64,917,683; 2015, 64,537,554
 
 
65
 
 
 
65
 
Additional paid-in capital
 
 
453,479
 
 
 
442,648
 
Retained earnings
 
 
1,155,732
 
 
 
1,116,277
 
Accumulated other comprehensive income (loss), net of taxes:
 
 
 
 
 
 
 
 
Net unrealized investment gains on fixed maturities and equity securities
 
 
175,738
 
 
 
175,167
 
Net funded status of pension benefit obligations
 
 
(11,817
)
 
 
(11,794
)
Treasury stock, at cost, 2016, 24,672,932 shares; 2015, 23,971,522 shares
 
 
(479,215
)
 
 
(457,702
)
 
 
 
 
 
 
 
 
 
Total shareholders' equity
 
 
1,293,982
 
 
 
1,264,661
 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
 
$
1,551,583
 
 
$
1,522,270
 
   
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,
 
 
 
 
2016
 
 
 
2015
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
$
20
 
 
$
33
 
 
$
10
 
Realized investment gains
 
 
-
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
20
 
 
 
33
 
 
 
10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Interest
 
 
11,808
 
 
 
13,122
 
 
 
14,198
 
Debt retirement costs
 
 
-
 
 
 
2,338
 
 
 
-
 
Other
 
 
5,631
 
 
 
5,153
 
 
 
5,071
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total expenses
 
 
17,439
 
 
 
20,613
 
 
 
19,269
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income tax benefit and equity in net earnings of subsidiaries
 
 
(17,419
)
 
 
(20,580
)
 
 
(19,259
)
Income tax benefit
 
 
(6,076
)
 
 
(7,202
)
 
 
(6,734
)
Loss before equity in net earnings of subsidiaries
 
 
(11,343
)
 
 
(13,378
)
 
 
(12,525
)
Equity in net earnings of subsidiaries
 
 
95,108
 
 
 
106,860
 
 
 
116,768
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
83,765
 
 
$
93,482
 
 
$
104,243
 
 
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,
 
 
 
 
2016
 
 
 
2015
 
 
 
2014
 
Cash flows - operating activities
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense paid
 
$
(11,754
)
 
$
(13,521
)
 
$
(13,902
)
Federal income taxes recovered
 
 
8,914
 
 
 
8,413
 
 
 
10,030
 
Cash dividends received from subsidiaries
 
 
59,600
 
 
 
50,000
 
 
 
46,000
 
Other, net, including settlement of payables to subsidiaries
 
 
(3,434
)
 
 
(4,097
)
 
 
(1,478
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
 
53,326
 
 
 
40,795
 
 
 
40,650
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows - investing activities
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in investments
 
 
9,161
 
 
 
15,402
 
 
 
(4,647
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) investing activities
 
 
9,161
 
 
 
15,402
 
 
 
(4,647
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows - financing activities
 
 
 
 
 
 
 
 
 
 
 
 
Dividends paid to shareholders
 
 
(44,310
)
 
 
(42,523
)
 
 
(39,237
)
Proceeds from issuance of Senior Notes due 2025
 
 
-
 
 
 
246,937
 
 
 
-
 
Redemption of Senior Notes due 2016
 
 
-
 
 
 
(127,292
)
 
 
-
 
Maturity of Senior Notes due 2015
 
 
-
 
 
 
(75,000
)
 
 
-
 
Principal repayment on Bank Credit Facility
 
 
-
 
 
 
(38,000
)
 
 
-
 
Acquisition of treasury stock
 
 
(21,513
)
 
 
(21,950
)
 
 
(5,411
)
Exercise of stock options
 
 
3,329
 
 
 
1,629
 
 
 
8,252
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash used in financing activities
 
 
(62,494
)
 
 
(56,199
)
 
 
(36,396
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net decrease in cash
 
 
(7
)
 
 
(2
)
 
 
(393
)
Cash at beginning of period
 
 
75
 
 
 
77
 
 
 
470
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash at end of period
 
$
68
 
 
$
75
 
 
$
77
 
   
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.