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:         October 28, 2010

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 June 30, 2010 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 October 28, 2010, Horace Mann Educators Corporation issued a press release reporting its financial results for the three and nine month periods ended September 30, 2010. A copy of the press release is attached as Exhibit 99.2 and is incorporated by reference herein.

Item 9.01:    Financial Statements and Exhibits

(d)	Exhibits.
	99.1	Glossary of Selected Terms
	99.2	Press release dated October 28, 2010 reporting financial results for the three and nine month periods ended September 30, 2010.

1

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:  October 28, 2010

2

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, require 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.

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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 Claims Service, 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.

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 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.

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

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.

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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 - 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.

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, and this time period may extend into the following calendar year. In addition to the Company’s products, sales data includes 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:

Todd Nelson, Vice President – Finance

217-788-5738

HORACE MANN REPORTS RESULTS

FOR THIRD QUARTER

SPRINGFIELD, Ill., October 28, 2010 – – Horace Mann Educators Corporation (NYSE:HMN) today reported net income of $20.1 million (49 cents per share) and $65.7 million ($1.61 per share) for the three and nine months ended September 30, 2010, compared to $19.3 million (48 cents per share) and $51.3 million ($1.27 per share) for the same periods in 2009. Included in net income were net realized gains on securities of $12.1 million ($7.7 million after tax, or 19 cents per share) and $25.3 million ($16.3 million after tax, or 40 cents per share) for the three and nine months ended September 30, 2010, respectively. In the same periods in 2009, net income included net realized investment gains of $11.5 million ($7.4 million after tax, or 19 cents per share) and $21.7 million ($14.0 million after tax, or 35 cents per share), respectively. All per-share amounts are stated on a diluted basis.

“The continued improvement in Horace Mann’s net unrealized investment gain position, coupled with strong underlying operating results in the third quarter in our lead auto and annuity lines, resulted in a September 30, 2010 reported book value per share of $24.69, an increase of 33 percent over the last twelve months,” said Peter H. Heckman, President and Chief Executive Officer. “Net income before realized investment gains and losses was 30 cents per share for the third quarter, a 1 cent increase compared to a year ago, as adverse results in the property line were more than offset by improved earnings in auto and financial services,” continued Heckman. “Due to a significant level of catastrophe and non-catastrophe weather-related losses, as well as an increase in Florida sinkhole claims, our property and casualty earnings decreased compared to the third quarter of the prior year. The accident year combined ratio excluding catastrophes was 99.5 percent in the current quarter, which was about 2 percentage points higher than the same period last year. Partially offsetting the unfavorable property results, our auto current accident year combined ratio improved by almost 3 percentage points compared to prior year. And, further reflecting the benefits of our diverse sources of earnings, combined annuity and life segment net income increased significantly in the third quarter compared to prior year, including a notable improvement in the interest margin and a decrease in mortality costs.”

“We are lowering our estimate of full-year 2010 net income before realized investment gains and losses to between $1.55 and $1.65 per share, primarily reflecting the higher level of catastrophe and sinkhole losses in our property line, as well as the two previously disclosed one-time charges related to the write-off of property system

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development costs in the current quarter and the acceleration of CEO retirement expenses in the fourth quarter,” Heckman said. “This projection assumes a normal level of property and casualty weather losses and a continuing high level of sinkhole losses, along with moderate appreciation in the financial markets in the fourth quarter.”

Segment Earnings

The property and casualty segment recorded net income of $1.5 million for the quarter, a decrease of $2.3 million compared to the same period in 2009. Pretax catastrophe costs in the current quarter of $17.5 million increased $5.2 million compared to the $12.3 million incurred in the third quarter of 2009 and included $7.5 million of unfavorable development for catastrophes occurring in the first six months of 2010, primarily second quarter storms in the Midwest. The third quarter 2010 property and casualty combined ratio was 106.8 percent, including 12.6 percentage points due to catastrophe costs, compared to 104.1 percent, including 8.9 percentage points due to catastrophe costs, in the prior year period. An increase in non-catastrophe weather-related losses in the current quarter represented approximately 8 percentage points of the increase in the property combined ratio compared to the third quarter of 2009. Excluding claim settlement expenses, Florida sinkhole losses incurred in the current quarter and for the nine months of $6.9 million and $14.9 million, respectively, were somewhat higher than the company’s experience in the last two quarters of 2009; and, they exceeded the $5.0 million and $7.8 million incurred in the three and nine months ended September 30, 2009. “While high catastrophe and sinkhole losses continue to be a challenge to property and casualty earnings, our Florida risk mitigation plan, primarily focused on non-renewals, remains ahead of schedule,” said Heckman. Favorable prior years’ reserve development totaling $7.3 million was recorded in the third quarter, which represented 5.2 percentage points on the combined ratio, compared to $2.8 million, or 2.0 percentage points on the combined ratio, recorded in the third quarter of 2009. As previously disclosed, the segment’s third quarter 2010 operating expenses included a charge of $2.2 million to write off software development costs related to an upgrade of its property insurance administrative system. This charge was approximately 4 cents per share after tax and represented 1.6 percentage points and 0.5 percentage points of the total property and casualty combined ratios for the three and nine months ended September 30, 2010, respectively.

Annuity segment net income was $8.5 million for the three months ended September 30, 2010, increasing $1.2 million compared to the same period in 2009. The current quarter included a reduction in amortization as a result of the evaluation of deferred policy acquisition costs of $1.9 million compared to a reduction of $2.5 million due to the evaluation in the prior year. The interest margin earned on fixed annuity assets increased 23 percent compared to the third quarter of 2009, with year-to-date net interest spreads of 1.98 percent for the current period improving 38 basis points compared to a year ago. Charges and fees earned in the quarter, primarily on variable annuity contracts, increased 17 percent compared to prior

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year. Total annuity net fund flows continued to be positive in the current period, as they were throughout 2008 and 2009, with total accumulated account values increasing 9 percent compared to 12 months earlier. Total cash value persistency of 94 percent increased slightly compared to prior year.

Life segment net income of $5.6 million for the third quarter increased $1.1 million compared to the same period in 2009, due to growth in investment income and lower mortality costs in the current period. Life persistency remained strong at 95 percent.

Segment Revenues

Compared to 2009, the company’s total premiums written and contract deposits increased 6 percent and 3 percent for the quarter and year-to-date, respectively, driven by the current quarter increase in annuity deposit receipts.

Total property and casualty premiums written were comparable to the third quarter of 2009 and increased 1 percent for the nine months, each including increases in average property and auto premiums per policy.

Annuity deposits received increased 18 percent compared to the three months ended September 30, 2009, reflecting a 33 percent increase in single deposit and rollover receipts and scheduled, flexible premium annuity deposit receipts that were comparable to the prior year. For the nine months, total annuity deposit receipts increased 8 percent compared to a year earlier, also driven by single deposit and rollover receipts. Life segment insurance premiums and contract deposits decreased 1 percent compared to both the three and nine months of the prior year.

Sales and Distribution

For the three and nine months ended September 30, 2010, total new auto sales units decreased 8 percent and 5 percent, respectively, compared to the same periods in the prior year, primarily reflecting decreases in true new auto sales of 10 percent and 6 percent, respectively. Driven by increases in single premium and rollover deposits, total annuity sales increased 32 percent in the third quarter and 2 percent for the nine months, which was on top of the 38 percent growth in the nine months ended September 30, 2009. Total new life production decreased 24 percent and 9 percent compared to the prior year quarter and nine months, primarily due to decreases in sales of third-party vendor products.

At September 30, 2010, there was a combined total of 701 Exclusive Agencies and Employee Agents, compared to 716 at December 31, 2009 and 694 at September 30, 2009. “Our total number of agencies and agents increased during the quarter and was up compared to a year ago,” said Heckman. “We expect continued growth in the agency force in the fourth quarter to result in a favorable prior year comparison at year-end.” At September 30, 2010, there were 387 Horace Mann Exclusive

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Agencies, an increase of 137 compared to December 31, 2009. The company’s Exclusive Agent opportunity was launched on January 1, 2009. Of the 387 Exclusive Agencies at quarter-end, 196 were formed by previous Employee Agents and 191 were formed by new appointments. In addition to the Exclusive Agencies, there were 314 Employee Agents at quarter-end.

Investment Gains and Losses

In the third quarter of 2010, pretax net realized investment gains were $12.1 million. The company realized $16.8 million of gross gains on securities during the quarter, partially offset by a $4.3 million credit-related impairment write-down on one security that the company no longer intended to hold until the value was fully recovered and $0.4 million of realized impairment losses on security disposals.

Horace Mann’s net unrealized investment gains on fixed maturity and equity securities of $360.5 million at September 30, 2010 continued to reflect improvement compared to the net unrealized gains of $222.8 million, $36.1 million and $84.1 million at June 30, 2010, December 31, 2009 and September 30, 2009, respectively.

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 June 30, 2010 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.

# # #

HORACE MANN EDUCATORS CORPORATION

Digest of Earnings and Highlights (Unaudited)

(Dollars in Millions, Except Per Share Data)

	Quarter Ended September 30,									Nine Months Ended September  30,
	2010			2009			% Change			2010			2009			% Change
DIGEST OF EARNINGS
Net income	$	20.1		$	19.3			4.1	%	$	65.7		$	51.3			28.1	%
Net income per share:
Basic	$	0.51		$	0.49			4.1	%	$	1.67		$	1.31			27.5	%
Diluted	$	0.49		$	0.48			2.1	%	$	1.61		$	1.27			26.8	%
Weighted average number of shares and equivalent shares (in millions)
Basic		39.4			39.2			0.5	%		39.3			39.2			0.3	%
Diluted		41.1			40.6			1.2	%		40.9			40.6			0.7	%
HIGHLIGHTS
Operations
Insurance premiums written and contract deposits	$	289.3		$	271.7			6.5	%	$	782.8		$	757.7			3.3	%
Return on equity (A)											10.8	%		14.1	%		N.M.
Property & Casualty GAAP combined ratio		106.8	%		104.1	%		N.M.			100.8	%		100.9	%		N.M.
Effect of catastrophe costs on the Property & Casualty combined ratio		12.6	%		8.9	%		N.M.			9.8	%		7.8	%		N.M.
Exclusive agencies (B)											387			208			86.1	%
Employee agents (C)											314			486			-35.4	%
Total											701			694			1.0	%
Additional Per Share Information
Dividends paid	$	0.08		$	0.0525			52.4	%	$	0.24		$	0.1575			52.4	%
Book value (D)										$	24.69		$	18.59			32.8	%
Financial Position
Total assets										$	6,984.5		$	6,292.1			11.0	%
Short-term debt											38.0			38.0			-
Long-term debt											199.7			199.6			0.1	%
Total shareholders’ equity											973.9			728.6			33.7	%

N.M. - Not meaningful.

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

(B) 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.

(C) 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.

(D) Book value per share excluding the fair value adjustment for investments was $19.19 at September 30, 2010 and $17.30 at September 30, 2009. Ending shares outstanding were 39,444,031 at September 30, 2010 and 39,184,363 at September 30, 2009.

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HORACE MANN EDUCATORS CORPORATION

Statements of Operations and Supplemental GAAP Consolidated Data (Unaudited)

(Dollars in Millions)

	Quarter Ended September 30,									Nine Months Ended September 30,
	2010			2009			% Change			2010			2009			% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	168.0		$	165.8			1.3	%	$	502.8		$	491.8			2.2	%
Net investment income		68.3			62.5			9.3	%		203.3			181.4			12.1	%
Net realized investment gains		12.1			11.5			5.2	%		25.3			21.7			16.6	%
Other income		1.6			1.8			-11.1	%		5.3			6.6			-19.7	%
Total revenues		250.0			241.6			3.5	%		736.7			701.5			5.0	%
Benefits, claims and settlement expenses		124.9			122.6			1.9	%		356.2			348.6			2.2	%
Interest credited		37.1			35.3			5.1	%		108.9			103.5			5.2	%
Policy acquisition expenses amortized		20.2			18.1			11.6	%		66.1			60.2			9.8	%
Operating expenses		36.1			34.9			3.4	%		104.2			105.6			-1.3	%
Amortization of intangible assets		-			-			-			-			0.2			-100.0	%
Interest expense		3.4			3.5			-2.9	%		10.4			10.5			-1.0	%
Total benefits, losses and expenses		221.7			214.4			3.4	%		645.8			628.6			2.7	%
Income before income taxes		28.3			27.2			4.0	%		90.9			72.9			24.7	%
Income tax expense		8.2			7.9			3.8	%		25.2			21.6			16.7	%
Net income	$	20.1		$	19.3			4.1	%	$	65.7		$	51.3			28.1	%
ANALYSIS OF PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty
Automobile and property (voluntary)	$	146.0		$	146.3			-0.2	%	$	419.0		$	414.2			1.2	%
Involuntary and other property & casualty		0.6			0.6			-			3.1			2.5			24.0	%
Total Property & Casualty		146.6			146.9			-0.2	%		422.1			416.7			1.3	%
Annuity deposits		118.6			100.5			18.0	%		288.7			268.1			7.7	%
Life		24.1			24.3			-0.8	%		72.0			72.9			-1.2	%
Total	$	289.3		$	271.7			6.5	%	$	782.8		$	757.7			3.3	%
ANALYSIS OF SEGMENT NET INCOME
Property & Casualty	$	1.5		$	3.8			-60.5	%	$	21.0		$	19.8			6.1	%
Annuity		8.5			7.3			16.4	%		22.7			14.8			53.4	%
Life		5.6			4.5			24.4	%		15.7			12.9			21.7	%
Corporate and other (A)		4.5			3.7			21.6	%		6.3			3.8			65.8	%
Net income		20.1			19.3			4.1	%		65.7			51.3			28.1	%
Catastrophe costs, after tax, included above (B)		(11.3	)		(8.0	)		41.3	%		(26.3	)		(20.7	)		27.1	%

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.

(B) Includes allocated loss adjustment expenses and catastrophe reinsurance reinstatement premiums. See also page 3.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Quarter Ended September 30,									Nine Months Ended September 30,
	2010			2009			% Change			2010			2009			% Change
PROPERTY & CASUALTY
Premiums written	$	146.6		$	146.9			-0.2	%	$	422.1		$	416.7			1.3	%
Premiums earned		139.3			137.6			1.2	%		415.8			408.4			1.8	%
Net investment income		9.2			8.8			4.5	%		27.1			25.6			5.9	%
Other income		0.1			0.3			-66.7	%		0.4			2.3			-82.6	%
Losses and loss adjustment expenses (LAE)		112.0			108.9			2.8	%		313.9			309.2			1.5	%
Operating expenses (includes policy acquisition expenses amortized)		36.9			34.4			7.3	%		105.2			102.8			2.3	%
Income (loss) before tax		(0.3	)		3.4			N.M.			24.2			24.3			-0.4	%
Net income		1.5			3.8			-60.5	%		21.0			19.8			6.1	%
Net investment income, after tax		7.9			7.6			3.9	%		23.3			21.8			6.9	%
Catastrophe costs, after tax (A)		11.3			8.0			41.3	%		26.3			20.7			27.1	%
Catastrophe losses and LAE, before tax		17.5			12.3			42.3	%		40.5			31.9			27.0	%
Reinsurance reinstatement premiums, before tax		-			-			-			-			-			-
Operating statistics:
Loss and loss adjustment expense ratio		80.4	%		79.2	%		N.M.			75.5	%		75.7	%		N.M.
Expense ratio		26.4	%		24.9	%		N.M.			25.3	%		25.2	%		N.M.
Combined ratio		106.8	%		104.1	%		N.M.			100.8	%		100.9	%		N.M.
Effect on the combined ratio of:
Catastrophe costs		12.6	%		8.9	%		N.M.			9.8	%		7.8	%		N.M.
Write-off software development costs (operating expense)		1.6	%		-			N.M.			0.5	%		-			N.M.
Claims office consolidation costs (all in LAE)		-			0.3	%		N.M.			-			0.9	%		N.M.
Automobile and property detail:
Premiums written (voluntary) (B)	$	146.0		$	146.3			-0.2	%	$	419.0		$	414.2			1.2	%
Automobile		93.9			94.7			-0.8	%		279.9			279.3			0.2	%
Property		52.1			51.6			1.0	%		139.1			134.9			3.1	%
Premiums earned (voluntary) (B)		138.7			137.1			1.2	%		413.7			406.8			1.7	%
Automobile		93.0			92.8			0.2	%		279.1			276.8			0.8	%
Property		45.7			44.3			3.2	%		134.6			130.0			3.5	%
Policies in force (voluntary) (in thousands)											772			790			-2.3	%
Automobile											516			529			-2.5	%
Property											256			261			-1.9	%
Policy renewal rate (voluntary)
Automobile (6 months)											91.4	%		91.7	%		N.M.
Property (12 months)											88.0	%		89.5	%		N.M.
Voluntary automobile operating statistics:
Loss and loss adjustment expense ratio		66.4	%		72.9	%		N.M.			66.8	%		70.9	%		N.M.
Expense ratio		25.1	%		25.1	%		N.M.			24.8	%		25.4	%		N.M.
Combined ratio		91.5	%		98.0	%		N.M.			91.6	%		96.3	%		N.M.
Effect on the combined ratio of:
Catastrophe costs		1.7	%		1.3	%		N.M.			1.1	%		0.9	%		N.M.
Claims office consolidation costs (all in LAE)		-			0.4	%		N.M.			-			1.1	%		N.M.
Total property operating statistics:
Loss and loss adjustment expense ratio		109.0	%		92.3	%		N.M.			93.2	%		86.0	%		N.M.
Expense ratio		29.3	%		24.4	%		N.M.			26.4	%		24.6	%		N.M.
Combined ratio		138.3	%		116.7	%		N.M.			119.6	%		110.6	%		N.M.
Effect on the combined ratio of:
Catastrophe costs		35.4	%		25.4	%		N.M.			28.1	%		22.9	%		N.M.
Write-off software development costs (operating expense)		5.0	%		-			N.M.			1.7	%		-			N.M.
Claims office consolidation costs (all in LAE)		-			0.1	%		N.M.			-			0.5	%		N.M.
Prior years' reserves favorable (adverse) development, pretax
Voluntary automobile	$	5.2		$	1.7			205.9	%	$	10.7		$	6.7			59.7	%
Total property		2.1			0.9			133.3	%		3.9			0.9			N.M.
Other property and casualty		-			0.2			-100.0	%		-			0.7			-100.0	%
Total		7.3			2.8			160.7	%		14.6			8.3			75.9	%

N.M. - Not meaningful.

(A) Includes allocated loss adjustment expenses and catastrophe reinsurance reinstatement premiums.

(B) Amounts are net of additional ceded premiums to reinstate the Company's property and casualty catastrophe reinsurance coverage, if any, as quantified above.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Quarter Ended         September 30,						% Change			Nine Months Ended         September 30,						% Change
	2010			2009						2010			2009
ANNUITY
Contract deposits	$	118.6		$	100.5			18.0	%	$	288.7		$	268.1			7.7	%
Variable		26.0			26.5			-1.9	%		81.8			82.5			-0.8	%
Fixed		92.6			74.0			25.1	%		206.9			185.6			11.5	%
Contract charges earned		4.2			3.6			16.7	%		13.0			10.2			27.5	%
Net investment income		42.1			37.8			11.4	%		125.2			109.6			14.2	%
Net interest margin (without realized investment gains and losses)		15.1			12.3			22.8	%		46.5			35.5			31.0	%
Other income		0.9			0.8			12.5	%		2.9			2.2			31.8	%
Mortality loss and other reserve changes		(0.3	)		0.4			N.M.			(1.2	)		0.7			N.M.
Operating expenses (includes policy acquisition expenses amortized)		7.3			6.2			17.7	%		29.5			26.7			10.5	%
Income before tax		12.6			10.9			15.6	%		31.7			21.9			44.7	%
Net income		8.5			7.3			16.4	%		22.7			14.8			53.4	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	1.9		$	2.5			-24.0	%	$	(0.9	)	$	0.8			N.M.
Guaranteed minimum death benefit reserve		0.1			0.5			-80.0	%		-			0.7			-100.0	%
Annuity contracts in force (in thousands)											178			177			0.6	%
Accumulated value on deposit										$	3,934.4		$	3,601.5			9.2	%
Variable											1,267.6			1,153.7			9.9	%
Fixed											2,666.8			2,447.8			8.9	%
Annuity accumulated value retention - 12     months
Variable accumulations											93.4	%		93.4	%		N.M.
Fixed accumulations											94.6	%		94.1	%		N.M.
LIFE
Premiums and contract deposits	$	24.1		$	24.3			-0.8	%	$	72.0		$	72.9			-1.2	%
Premiums and contract charges earned		24.5			24.6			-0.4	%		74.0			73.2			1.1	%
Net investment income		17.3			16.2			6.8	%		51.8			47.0			10.2	%
Income before tax		8.9			6.9			29.0	%		24.6			20.2			21.8	%
Net income		5.6			4.5			24.4	%		15.7			12.9			21.7	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	(0.3	)	$	(0.1	)		200.0	%	$	(0.4	)	$	(0.2	)		100.0	%
Life policies in force (in thousands)											208			215			-3.3	%
Life insurance in force										$	13,833		$	13,667			1.2	%
Lapse ratio - 12 months
(Ordinary life insurance)											5.0	%		5.5	%		N.M.
CORPORATE AND OTHER (A)
Components of income (loss) before tax:
Net realized investment gains	$	12.1		$	11.5			5.2	%	$	25.3		$	21.7			16.6	%
Interest expense		(3.4	)		(3.5	)		-2.9	%		(10.4	)		(10.5	)		-1.0	%
Other operating expenses, net investment income and other income		(1.6	)		(2.0	)		-20.0	%		(4.5	)		(4.7	)		-4.3	%
Income before tax		7.1			6.0			18.3	%		10.4			6.5			60.0	%
Net income		4.5			3.7			21.6	%		6.3			3.8			65.8	%

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)

	Quarter Ended     September 30,							Nine Months Ended          September 30,
	2010		2009		% Change			2010		2009			% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2010, $3,642.3; 2009, $3,207.9)								$	3,951.9	$	3,263.3			21.1	%
Equity securities, at fair value (cost 2010, $29.8; 2009, $45.4)									31.2		41.3			-24.5	%
Short-term investments									142.0		359.3			-60.5	%
Short-term investments, securities lending collateral									-		-			-
Policy loans and other									119.6		113.8			5.1	%
Total Annuity and Life investments									4,244.7		3,777.7			12.4	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2010, $767.9; 2009, $717.3)									814.7		750.3			8.6	%
Equity securities, at fair value (cost 2010, $18.0; 2009, $19.4)									20.8		19.2			8.3	%
Short-term investments									7.2		17.3			-58.4	%
Short-term investments, securities lending collateral									-		-			-
Total Property & Casualty investments									842.7		786.8			7.1	%
Corporate investments									29.2		26.3			11.0	%
Total investments									5,116.6		4,590.8			11.5	%
Net investment income
Before tax	$	68.3	$	62.5		9.3	%	$	203.3	$	181.4			12.1	%
After tax		46.3		42.5		8.9	%		137.8		123.1			11.9	%
Net realized investment gains (losses) by investment portfolio included in Corporate and Other segment loss
Property & Casualty	$	1.2	$	3.4		-64.7	%	$	4.9	$	(2.5	)		N.M.
Annuity		7.3		4.9		49.0	%		15.8		16.3			-3.1	%
Life		3.6		3.2		12.5	%		4.4		7.9			-44.3	%
Corporate and Other		-		-		-			0.2		-			N.M.
Total, before tax		12.1		11.5		5.2	%		25.3		21.7			16.6	%
Total, after tax		7.7		7.4		4.1	%		16.3		14.0			16.4	%
Per share, diluted	$	0.19	$	0.19		-		$	0.40	$	0.35			14.3	%

N.M. - Not meaningful.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	September 30, 2010					June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
	Fair     Value		Net Unrealized     Gain (Loss)			Net Unrealized     Gain (Loss)			Net Unrealized     Gain (Loss)			Net Unrealized     Gain (Loss)			Net Unrealized     Gain (Loss)
FIXED MATURITY & EQUITY SECURITY INVESTMENTS
Fixed income securities
U.S. government and federally sponsored agency bonds	$	560.1	$	27.0		$	11.4		$	(10.0	)	$	(13.8	)	$	2.0
Municipal bonds		1,011.7		72.7			46.5			28.9			22.8			56.1
Corporate bonds
Financial institutions		303.2		26.9			14.0			14.1			8.1			6.9
Other		1,389.2		168.6			127.6			88.7			73.0			84.6
High yield		192.9		6.1			(2.4	)		(1.8	)		(5.9	)		(11.8	)
Foreign government bonds		47.1		4.1			1.4			2.8			2.0			3.0
Mortgage-backed securities
Prime agency		504.2		37.2			35.1			17.6			18.3			23.9
Prime other		16.1		1.1			0.6			0.3			0.4			0.5
Sub-prime, Alt-A		0.3		-			(0.1	)		(0.1	)		(0.1	)		(0.4	)
Commercial mortgage-backed securities		286.6		(11.2	)		(23.9	)		(51.5	)		(67.5	)		(71.7	)
Asset-backed securities
Sub-prime, Alt-A		0.2		-			-			-			-			(0.5	)
Collateralized debt obligations, collateralized loan obligations		32.4		1.0			(1.6	)		(1.9	)		(4.1	)		(3.3	)
Other		347.0		20.8			15.0			12.0			8.2			4.5
Preferred stocks
Financial institutions		82.2		0.5			(3.4	)		(1.3	)		(6.4	)		(9.5	)
Other		43.6		4.7			1.6			2.8			0.3			(0.7	)
Total fixed income securities		4,816.8		359.5			221.8			100.6			35.3			83.6
Common stocks		1.7		1.0			1.0			1.1			0.8			0.5
Derivatives		-		-			-			-			-			-
Total fixed maturity and equity security investments	$	4,818.5	$	360.5		$	222.8		$	101.7		$	36.1		$	84.1

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