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:        April 25, 2012

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 Annual Report on Form 10-K for the period ended December 31, 2011 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 April 25, 2012, Horace Mann Educators Corporation issued a press release reporting its financial results for the three month period ended March 31, 2012. 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 April 25, 2012 reporting financial results for the three month period ended March 31, 2012.

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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: April 25, 2012

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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 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.

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, 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:

Dwayne Hallman, Executive Vice

  President & Chief Financial Officer

217-788-5708

HORACE MANN REPORTS 21% INCREASE IN OPERATING EPS,

CONTINUED NEW BUSINESS SALES MOMENTUM FOR FIRST QUARTER

SPRINGFIELD, Ill., April 25, 2012 -- Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the first three months of 2012:

Horace Mann Financial Highlights
	Three months ended March 31,
($ in millions, except per share amounts)	2012			2011 (A)			Change
Total revenues		$244.7			$244.6			-
Net income		26.7			25.8			3.5	%
Net income per diluted share		0.64			0.62			3.2	%
Operating income*		26.4			22.1			19.5	%
Operating income per diluted share*		0.64			0.53			20.8	%
Book value per share		27.37			21.80			25.6	%
Book value per share excluding the fair value adjustment for investments*		20.31			19.10			6.3	%
Property and Casualty segment net income		13.2			12.4			6.5	%
Property and Casualty combined ratio		95.0	%		95.0	%		-
Property and Casualty underlying combined ratio*		93.6	%		91.2	%		2.4	pts
Annuity segment net income	$	11.6			$    8.4			38.1	%
Life segment net income		5.2			4.2			23.8	%

* 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.

(A) Effective January 1, 2012, the company adopted new accounting guidance for deferred policy acquisition costs with the effects applied retrospectively. The adoption of this accounting guidance did not have a material effect on the company’s results of operations, but did decrease shareholders’ equity $31.6 million, or 2.9%, after tax at January 1, 2012.

“Operating income was 64 cents per share for the first quarter, an 11 cent -- or 21% -- increase compared to prior year, reflecting improved earnings across all of our operating segments. With solid earnings over the last 12 months and a higher level of unrealized investment gains, book value per share of $27.37 as of March 31, 2012 increased 26% compared to a year ago,” said Peter H. Heckman, President and Chief Executive Officer. “In addition, we are pleased with the sales momentum that carried over into the first quarter of 2012 and resulted in strong new business growth in each of our product lines -- auto, property, annuity and life.”

Property and Casualty Segment

The property and casualty segment recorded net income of $13.2 million for the quarter, a 6% increase compared to the same period in 2011. The total property and casualty combined ratio of 95.0% was equal to the first quarter of 2011. Pretax catastrophe costs in the current quarter of $5.9 million

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decreased $2.1 million compared to a year ago. Favorable prior years’ reserve development totaling $4.0 million was recorded in the first quarter, compared to $2.7 million recorded in the first quarter of 2011. The underlying property and casualty combined ratio of 93.6% increased 2.4 percentage points compared to the prior year quarter, as favorable current accident year property results excluding catastrophes were more than offset by an increase in the underlying auto combined ratio. Florida sinkhole losses incurred in the current quarter were zero compared to $4.7 million, excluding claim settlement expenses, recorded in the first quarter of 2011.

Total property and casualty premiums written decreased 1% compared to the first quarter of 2011, with increases in average property and auto premiums per policy offset by a reduced level of policies in force.

For the current quarter, true new auto sales units -- units associated with new Horace Mann auto policyholders -- increased 42% compared to the prior year, reflecting the continued positive impact of state-specific pricing, underwriting and marketing initiatives implemented during the last several months of 2011. Total new auto units, tempered by a modest increase in additional vehicles added to existing policies, increased 21% compared to a year ago. In addition, property new sales units increased 13% compared to the first quarter of 2011.

Annuity Segment

Annuity segment net income of $11.6 million for the three months ended March 31, 2012, increased $3.2 million compared to the same period in 2011. The interest margin earned on fixed annuity assets increased 17% compared to the first quarter of 2011, with net interest spreads reaching 2.11% for the current period, improving 9 basis points compared to the first quarter of 2011. Largely driven by improved financial markets performance, the evaluation of deferred policy acquisition costs in the quarter had a $2.6 million pretax positive impact on annuity segment earnings compared to a positive $0.9 million positive impact in the prior year. Charges and fees earned in the quarter, primarily on variable annuity contracts, increased 6% compared to prior year. Total accumulated account values increased 7% compared to March 31, 2011. Total cash value persistency of 94.5% improved approximately 1 percentage point compared to a year earlier.

Annuity deposits received decreased slightly compared to the first quarter of 2011, reflecting a 2% increase in single deposit and rollover receipts, offset by scheduled, flexible premium annuity deposit receipts that decreased 3% compared to a year ago.

Total annuity sales increased 9% compared to last year’s first quarter, building on the positive, record-level new business results produced in 2011.

Life Segment

Life segment net income of $5.2 million for the first quarter increased $1.0 million compared to the same period in 2011, primarily due to lower mortality costs in the current period. Life persistency remained strong at 95%.

Life segment insurance premiums and contract deposits increased 1% compared to the first quarter of the prior year.

Total new life sales in the quarter increased by double-digits compared to the prior year, including growth of 24% in sales of Horace Mann-manufactured products -- consistent with the company’s strategic intent to significantly increase its underwritten, mortality-based business.

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Investment Results

Total net investment income increased 7% in the first quarter of 2012 compared to the prior year. Pretax net realized investment gains were $0.4 million in the current period and included no impairment write-downs on securities.

Horace Mann’s net unrealized investment gains on fixed maturity and equity securities of $462.1 million at March 31, 2012 increased compared to the $441.1 million net unrealized gain at December 31, 2011. Net unrealized gains were $180.0 million at March 31, 2011.

Capital Management

During the first three months of 2012, the company repurchased 200,120 shares of its common stock at an aggregate cost of $3.3 million, or an average price per share of $16.65, under its $50 million share repurchase program. As of March 31, 2012, the program had a remaining authorization of $44.6 million. There were 39,773,363 shares outstanding on March 31, 2012.

Webcast Conference Call

Horace Mann’s senior management will discuss the company’s first quarter performance with investors and analysts on April 26, 2012 at 10:00 a.m. Eastern Time. The conference call will be webcast live on the Internet at www.horacemann.com and archived later in the day for replay, which will be available for one month.

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 Annual Report on Form 10-K for the year ended December 31, 2011 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          March 31,
	2012			2011 (A)			% Change
EARNINGS SUMMARY
Net income	$	26.7		$	25.8			3.5	%
Net realized investment gains, after tax		0.3			3.7			-91.9	%
Operating income (B)		26.4			22.1			19.5	%
Per diluted share:
Net income	$	0.64		$	0.62			3.2	%
Net realized investment gains, after tax	$	-		$	0.09			-100.0	%
Operating income (B)	$	0.64		$	0.53			20.8	%
Weighted average number of shares and equivalent shares (in millions) - Diluted		41.5			41.7			-0.5	%
Return on equity (C)		7.3	%		9.9	%		N.M.
OPERATIONS
Insurance premiums written and contract deposits	$	242.8		$	244.1			-0.5	%
Property & Casualty combined ratio		95.0	%		95.0	%		N.M.
Property & Casualty combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (B)		93.6	%		91.2	%		N.M.
FINANCIAL POSITION
Per share (D):
Book value	$	27.37		$	21.80			25.6	%
Effect of the fair value adjustment for investments (E)	$	7.06		$	2.70			161.5	%
Book value excluding the fair value adjustment for investments (B)	$	20.31		$	19.10			6.3	%
Dividends paid	$	0.13		$	0.11			18.2	%
Total assets	$	7,697.7		$	7,123.1			8.1	%
Short-term debt		38.0			38.0			-
Long-term debt		199.8			199.7			0.1	%
Total shareholders’ equity		1,088.8			867.1			25.6	%
ADDITIONAL INFORMATION
Exclusive agencies (F)		555			485			14.4	%
Employee agents (G)		172			262			-34.4	%
Total		727			747			-2.7	%

N.M. - Not meaningful.

(A) Adjusted to reflect the January 1, 2012 adoption and retrospective application by the company of new accounting guidance for deferred policy acquisition costs. The adoption of this accounting guidance did not have a material effect on the company’s results of operations, but did decrease shareholders’ equity $31.6 million, or 2.9%, after tax at January 1, 2012.

(B) 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.

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

(D) Ending shares outstanding were 39,773,363 at March 31, 2012 and 39,784,429 at March 31, 2011.

(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          March 31,
	2012			2011 (A)		% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	165.5		$	166.7		-0.7	%
Net investment income		75.7			70.5		7.4	%
Net realized investment gains		0.4			5.8		-93.1	%
Other income		3.1			1.6		93.8	%
Total revenues		244.7			244.6		0.0	%
Benefits, claims and settlement expenses		107.9			110.6		-2.4	%
Interest credited		40.0			37.4		7.0	%
Policy acquisition expenses amortized		17.8			19.2		-7.3	%
Operating expenses		37.9			37.1		2.2	%
Interest expense		3.6			3.5		2.9	%
Total benefits, losses and expenses		207.2			207.8		-0.3	%
Income before income taxes		37.5			36.8		1.9	%
Income tax expense		10.8			11.0		-1.8	%
Net income	$	26.7		$	25.8		3.5	%
ANALYSIS OF PREMIUMS WRITTEN         AND CONTRACT DEPOSITS
Property & Casualty
Automobile and property (voluntary)	$	127.2		$	128.4		-0.9	%
Involuntary and other property & casualty		0.5			0.4		25.0	%
Total Property & Casualty		127.7			128.8		-0.9	%
Annuity deposits		92.0			92.5		-0.5	%
Life		23.1			22.8		1.3	%
Total	$	242.8		$	244.1		-0.5	%
ANALYSIS OF SEGMENT NET INCOME (LOSS)
Property & Casualty	$	13.2		$	12.4		6.5	%
Annuity		11.6			8.4		38.1	%
Life		5.2			4.2		23.8	%
Corporate and other (B)		(3.3	)		0.8		N.M.
Net income		26.7			25.8		3.5	%

N.M. - Not meaningful.

(A) See footnote (A) on page 1 of these supplemental numerical pages.

(B) 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 5.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended                  March 31,
	2012			2011 (A)			% Change
PROPERTY & CASUALTY
Premiums written	$	127.7		$	128.8			-0.9	%
Premiums earned		135.0			137.4			-1.7	%
Net investment income		8.9			9.2			-3.3	%
Other income		1.6			0.2			N.M.
Losses and loss adjustment expenses (LAE)		93.2			95.3			-2.2	%
Operating expenses (includes policy acquisition expenses amortized)		35.1			35.3			-0.6	%
Income before tax		17.2			16.2			6.2	%
Net income		13.2			12.4			6.5	%
Net investment income, after tax		7.5			7.8			-3.8	%
Catastrophe costs, after tax (B)		3.8			5.2			-26.9	%
Catastrophe losses and LAE, before tax		5.9			8.0			-26.3	%
Reinsurance reinstatement premiums, before tax		-			-			-
Prior years’ reserves favorable (adverse) development, pretax
Voluntary automobile	$	3.3		$	2.7			22.2	%
Total property		0.7			-			N.M.
Other property and casualty		-			-			-
Total		4.0			2.7			48.1	%
Operating statistics:
Loss and loss adjustment expense ratio		69.0	%		69.3	%		N.M.
Expense ratio		26.0	%		25.7	%		N.M.
Combined ratio		95.0	%		95.0	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (B)		4.4	%		5.8	%		N.M.
Prior years’ reserve development		-3.0	%		-2.0	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (C)		93.6	%		91.2	%		N.M.

N.M. - Not meaningful.

(A) See footnote (A) on page 1 of these supplemental numerical pages.

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

(C) These measures are not based on accounting principles generally accepted in the United States (“non-GAAP”).

See footnote (B) 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                  March 31,
	2012			2011 (A)			% Change
PROPERTY & CASUALTY - continued
Additional Operating Information
Automobile and property detail:
Premiums written (voluntary) (B)	$	127.2		$	128.4			-0.9	%
Automobile		89.4			92.0			-2.8	%
Property		37.8			36.4			3.8	%
Premiums earned (voluntary) (B)		134.6			137.3			-2.0	%
Automobile		88.7			92.0			-3.6	%
Property		45.9			45.3			1.3	%
Policies in force (voluntary) (in thousands)		723			748			-3.3	%
Automobile		485			500			-3.0	%
Property		238			248			-4.0	%
Policy renewal rate (voluntary)
Automobile (6 months)		90.7	%		90.1	%		N.M.
Automobile (12 months)		83.2	%		83.2	%		N.M.
Property (12 months)		86.4	%		85.9	%		N.M.
Voluntary automobile operating statistics:
Loss and loss adjustment expense ratio		71.8	%		65.6	%		N.M.
Expense ratio		27.0	%		25.9	%		N.M.
Combined ratio		98.8	%		91.5	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (C)		0.5	%		0.2	%		N.M.
Prior years’ reserve development		-3.7	%		-2.9	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (D)		102.0	%		94.2	%		N.M.
Total property operating statistics:
Loss and loss adjustment expense ratio		63.1	%		76.5	%		N.M.
Expense ratio		24.1	%		25.4	%		N.M.
Combined ratio		87.2	%		101.9	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (C)		11.9	%		17.4	%		N.M.
Prior years’ reserve development		-1.4	%		0.0	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (D)		76.7	%		84.5	%		N.M.

N.M. - Not meaningful.

(A) See footnote (A) on page 1 of these supplemental numerical pages.

(B) Amounts are net of additional ceded premiums to reinstate the Company’s property and casualty catastrophe reinsurance coverage, if any, as quantified on page 3.

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

(D) These measures are not based on accounting principles generally accepted in the United States (“non-GAAP”).

See footnote (B) 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                  March 31,
	2012			2011 (A)			% Change
ANNUITY
Contract deposits	$	92.0		$	92.5			-0.5	%
Variable		27.2			26.9			1.1	%
Fixed		64.8			65.6			-1.2	%
Contract charges earned		5.0			4.7			6.4	%
Net investment income		49.5			44.2			12.0	%
Net interest margin (without realized investment gains and losses)		19.9			17.0			17.1	%
Other income		0.7			0.8			-12.5	%
Mortality loss and other reserve changes		0.2			(0.2	)		N.M.
Operating expenses (includes policy acquisition expenses amortized)		8.5			9.7			-12.4	%
Income before tax		17.3			12.6			37.3	%
Net income		11.6			8.4			38.1	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	2.6		$	0.9			188.9	%
Guaranteed minimum death benefit reserve		0.2			-			N.M.
Annuity contracts in force (in thousands)		184			181			1.7	%
Accumulated value on deposit / Assets under management	$	4,517.6		$	4,208.6			7.3	%
Variable		1,409.1			1,419.5			-0.7	%
Fixed		3,108.5			2,789.1			11.5	%
Annuity accumulated value retention - 12 months
Variable accumulations		93.7	%		92.3	%		N.M.
Fixed accumulations		95.0	%		94.4	%		N.M.
LIFE
Premiums and contract deposits	$	23.1		$	22.8			1.3	%
Premiums and contract charges earned		25.5			24.6			3.7	%
Net investment income		17.5			17.3			1.2	%
Income before tax		8.1			6.6			22.7	%
Net income		5.2			4.2			23.8	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	(0.1	)	$	(0.2	)		-50.0	%
Life policies in force (in thousands)		204			207			-1.4	%
Life insurance in force	$	14,260		$	13,991			1.9	%
Lapse ratio - 12 months
(Ordinary life insurance)		4.6	%		4.8	%		N.M.
CORPORATE AND OTHER (B)
Components of income (loss) before tax:
Net realized investment gains	$	0.4		$	5.8			-93.1	%
Interest expense		(3.6	)		(3.5	)		2.9	%
Other operating expenses, net investment income and other income		(1.9	)		(0.9	)		111.1	%
Income (loss) before tax		(5.1	)		1.4			N.M.
Net income (loss)		(3.3	)		0.8			N.M.

N.M. - Not meaningful.

(A) See footnote (A) on page 1 of these supplemental numerical pages.

(B) 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          March 31,
	2012			2011		% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2012, $4,274.4; 2011, $3,955.9)	$	4,684.2		$	4,127.5		13.5	%
Equity securities, at fair value (cost 2012, $10.9; 2011, $6.5)		11.5			7.3		57.5	%
Short-term investments		19.3			52.7		-63.4	%
Short-term investments, securities lending collateral		-			-		-
Policy loans and other		155.4			122.9		26.4	%
Total Annuity and Life investments		4,870.4			4,310.4		13.0	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2012, $767.1; 2011, $802.1)		815.9			806.7		1.1	%
Equity securities, at fair value (cost 2012, $13.4; 2011, $14.3)		16.3			17.3		-5.8	%
Short-term investments		34.7			6.4		N.M.
Short-term investments, securities lending collateral		-			-		-
Total Property & Casualty investments		866.9			830.4		4.4	%
Corporate investments		20.2			29.7		-32.0	%
Total investments		5,757.5			5,170.5		11.4	%
Net investment income
Before tax	$	75.7		$	70.5		7.4	%
After tax		51.0			47.6		7.1	%
Net realized investment gains (losses) by investment portfolio included in the
Corporate and Other segment income (loss)
Property & Casualty	$	2.7		$	1.6		68.8	%
Annuity		(2.9	)		1.7		N.M.
Life		0.6			2.5		-76.0	%
Corporate and Other		-			-		-
Total, before tax		0.4			5.8		-93.1	%
Total, after tax		0.3			3.7		-91.9	%
Per share, diluted	$	-		$	0.09		-100.0	%

N.M. - Not meaningful.

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