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:            July 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 Quarterly Report on Form 10-Q for the period ended March 31, 2012 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 July 25, 2012, Horace Mann Educators Corporation issued a press release reporting its financial results for the three and six month periods ended June 30, 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 July 25, 2012 reporting financial results for the three and six month periods ended June 30, 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:  July 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.

-1-

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:

Ryan Greenier, Vice President, Investor Relations

217-788-5738

HORACE MANN REPORTS INCREASE IN OPERATING EPS,

CONTINUED NEW BUSINESS SALES MOMENTUM FOR SECOND QUARTER

SPRINGFIELD, Ill., July 25, 2012 — Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the three and six months ended June 30, 2012:

	Horace Mann Financial Highlights
	Three months ended June 30,									Six months ended June 30,
($ in millions, except per share amounts)	2012			2011(A)			Change			2012			2011(A)			Change
Total revenues	$	254.1		$	245.2			3.6	%	$	498.8		$	489.8			1.8	%
Net income (loss)		13.1			(11.8	)		N.M.			39.8			14.0			184.3	%
Net income (loss) per diluted share		0.32			(0.30	)		N.M.			0.96			0.34			182.4	%
Operating income (loss)*		6.7			(15.5	)		N.M.			33.1			6.6			N.M.
Operating income (loss) per diluted share*		0.16			(0.39	)		N.M.			0.80			0.16			N.M.
Book value per share											29.06			22.53			29.0	%
Book value per share excluding the fair value adjustment for investments*											20.55			18.66			10.1	%
Property and Casualty segment net income (loss)		(4.1	)		(25.6	)		N.M.			9.1			(13.2	)		N.M.
Property and Casualty combined ratio		112.8	%		134.7	%		-21.9 pts			103.9	%		114.7	%		-10.8 pts
Property and Casualty underlying combined ratio*		94.6	%		95.1	%		-0.5 pts			94.0	%		93.1	%		0.9 pts
Annuity segment net income	$	7.9		$	7.4			6.8	%	$	19.5		$	15.8			23.4	%
Life segment net income		6.1			5.9			3.4	%		11.3			10.1			11.9	%

N.M. - Not meaningful.

* 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) Reflects the retrospective adoption on January 1, 2012 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.

“Operating income was 16 cents per share for the second quarter, a 55 cent improvement compared to the prior year’s net loss, reflecting improved earnings across all of our operating segments. While less severe than last year, this quarter’s catastrophe losses of $29.2 million pretax, or 46 cents per share after tax, related to 13 events, had a significant adverse impact on current period earnings. Despite the continuing weather challenges, net income over the last 12 months coupled with a higher level of unrealized investment gains produced book value per share of $29.06 as of June 30, 2012, an increase of 29% compared to a year ago,” said Peter H. Heckman, President and Chief Executive Officer. “And in terms of growing the business, we are pleased with the sales momentum that has been generated over the last 3+ quarters — across all of our product lines — as well as the improving trends in property and casualty retention ratios and policies in force.”

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Property and Casualty Segment

The property and casualty segment recorded a net loss of $4.1 million for the quarter compared to a net loss of $25.6 million for the same period in 2011. As described above, catastrophe losses were the primary factor for the net losses in both periods. The total property and casualty combined ratio of 112.8% was 21.9 percentage points lower than the second quarter of 2011. Pretax catastrophe losses in the current quarter of $29.2 million decreased $25.8 million compared to a year ago. Favorable prior years’ reserve development totaling $4.5 million was recorded in the second quarter, compared to $1.0 million of favorable development recorded in the second quarter of 2011. The underlying property and casualty combined ratio of 94.6% decreased 0.5 percentage points compared to the prior year quarter, as favorable current accident year property results excluding catastrophes offset an increase in the underlying auto combined ratio. Florida sinkhole losses incurred in the current quarter were zero compared to $1.9 million, excluding claim settlement expenses, recorded in the second quarter of 2011.

For the six months ended June 30, 2012, property and casualty segment net income of $9.1 million improved $22.3 million compared to the same period in 2011, primarily as a result of the lower level of catastrophe losses. Reflecting the factors described above, the year to date underlying combined ratio of 94.0% increased 0.9 percentage points compared to the prior year.

Total property and casualty premiums written of $139.4 million and $267.1 million were comparable to the three and six months ended June 30, 2011, respectively, with increases in average property and auto premiums per policy largely offset by reduced levels of policies in force for both lines.

For the current quarter, true new auto sales units — units associated with new Horace Mann auto policyholders — increased 32% compared to the prior year and contributed to a six-month growth rate of 35%. Total new auto units, tempered by a modest increase in additional vehicles added to existing policies, increased 16% and 18% compared to the three and six months ended June 30, 2011, respectively. In addition, property new sales units increased 23% and 18% compared to the second quarter and first half of 2011, respectively.

Annuity Segment

Annuity segment net income was $7.9 million for the three months ended June 30, 2012, increasing $0.5 million compared to the same period in 2011 and $3.7 million compared to the first half of 2011. The interest margin earned on fixed annuity assets increased 16% compared to the first half of 2011, with year-to-date net interest spreads reaching 2.11%, up 8 basis points compared to the first half of 2011. Largely driven by financial market performance, the evaluation of deferred policy acquisition costs in the quarter had a $1.8 million pretax negative impact on annuity segment earnings compared to a $0.8 million negative impact in the prior year. The respective evaluations had a positive impact of less than $1 million pretax in each of the year-to-date periods. Total accumulated account value of $4.5 billion increased 7% compared to June 30, 2011, and total cash value persistency of 94.7% improved approximately 1 percentage point compared to a year earlier.

For the three and six months ended June 30, 2012, annuity deposits received of $96.4 million and $188.4 million were comparable to the respective prior year periods, reflecting increases in single deposit and rollover receipts offset by decreases in scheduled, flexible premium annuity deposit receipts of 6% and 5% compared to the respective periods in 2011.

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Total annuity sales increased 15% and 12% compared to last year’s second quarter and first half, respectively, building on the positive, record-level new business results produced in each of the last three years.

Life Segment

Life segment net income of $6.1 million for the second quarter increased $0.2 million compared to the same period in 2011. Compared to the first half of 2011, life segment net income increased $1.2 million, primarily due to lower mortality costs in the current period. Life persistency remained strong at 95%.

Life segment insurance premiums and contract deposits of $24.4 million and $47.5 million increased slightly compared to the three and six months ended June 30, 2011, respectively.

Total new life sales growth continued to be strong compared to the prior year second quarter and first half, including growth of 49% and 37%, respectively, in sales of Horace Mann-manufactured products — consistent with the company’s strategic intent to significantly increase its underwritten, mortality-based business.

Investment Results

In 2012, total net investment income increased 6% and 7% compared to the three and six months ended June 30, 2011, respectively. Pretax net realized investment gains were $9.9 million in the second quarter of 2012 and included no impairment write-downs on securities.

Horace Mann’s net unrealized investment gains on fixed maturity and equity securities of $548.7 million at June 30, 2012 increased 18.7% compared to the $462.1 million net unrealized gain at March 31, 2012. Net unrealized gains were $441.1 million at December 31, 2011 and $256.7 million at June 30, 2011.

Capital Management

During the second quarter of 2012, the company repurchased 504,937 shares of its common stock at an aggregate cost of $8.6 million, or an average price per share of $17.05, under its $50 million share repurchase program. As of June 30, 2012, the program had a remaining authorization of $36.0 million. There were 39,357,609 shares outstanding on June 30, 2012.

Webcast Conference Call

Horace Mann’s senior management will discuss the company’s second quarter performance with investors and analysts on July 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.

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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 March 31, 2012 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 June 30,									Six Months Ended June 30,
	2012			2011 (A)			% Change			2012			2011 (A)			% Change
EARNINGS SUMMARY
Net income (loss)	$	13.1		$	(11.8	)		N.M.		$	39.8		$	14.0			184.3	%
Net realized investment gains, after tax		6.4			3.7			73.0	%		6.7			7.4			-9.5	%
Operating income (loss) (B)		6.7			(15.5	)		N.M.			33.1			6.6			N.M.
Per diluted share:
Net income (loss)	$	0.32		$	(0.30	)		N.M.		$	0.96		$	0.34			182.4	%
Net realized investment gains, after tax	$	0.16		$	0.09			77.8	%	$	0.16		$	0.18			-11.1	%
Operating income (loss) (B)	$	0.16		$	(0.39	)		N.M.		$	0.80		$	0.16			N.M.
Weighted average number of shares and equivalent shares (in millions) - Diluted		41.3			39.9			3.5	%		41.4			41.4			—
Return on equity (C)											9.2	%		5.5	%		N.M.
OPERATIONS
Insurance premiums written and contract deposits	$	260.2		$	259.3			0.3	%	$	503.0		$	503.4			-0.1	%
Property & Casualty combined ratio		112.8	%		134.7	%		N.M.			103.9	%		114.7	%		N.M.
Property & Casualty combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (B)		94.6	%		95.1	%		N.M.			94.0	%		93.1	%		N.M.
FINANCIAL POSITION
Per share (D):
Book value										$	29.06		$	22.53			29.0	%
Effect of the fair value adjustment for investments (E)										$	8.51		$	3.87			119.9	%
Book value excluding the fair value adjustment for investments (B)										$	20.55		$	18.66			10.1	%
Ending number of shares outstanding (in millions) (D)											39.4			39.9			-1.3	%
Dividends paid	$	0.13		$	0.11			18.2	%	$	0.26		$	0.22			18.2	%
Total assets										$	7,824.0		$	7,157.7			9.3	%
Short-term debt											38.0			38.0			—
Long-term debt											199.8			199.7			0.1	%
Total shareholders’ equity											1,143.5			899.6			27.1	%
ADDITIONAL INFORMATION
Exclusive agencies (F)											557			495			12.5	%
Employee agents (G)											155			237			-34.6	%
Total											712			732			-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 acquistion 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 39,357,609 at June 30, 2012 and 39,918,707 at June 30, 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 June 30,									Six Months Ended June 30,
	2012			2011 (A)			% Change			2012			2011 (A)			% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	166.3		$	166.3			—		$	331.8		$	333.0			-0.4	%
Net investment income		76.3			71.7			6.4	%		152.0			142.2			6.9	%
Net realized investment gains		9.9			5.7			73.7	%		10.3			11.5			-10.4	%
Other income		1.6			1.5			6.7	%		4.7			3.1			51.6	%
Total revenues		254.1			245.2			3.6	%		498.8			489.8			1.8	%
Benefits, claims and settlement expenses		131.0			163.8			-20.0	%		238.9			274.4			-12.9	%
Interest credited		40.4			38.3			5.5	%		80.4			75.7			6.2	%
Policy acquisition expenses amortized		22.3			20.5			8.8	%		40.1			39.7			1.0	%
Operating expenses		38.5			35.8			7.5	%		76.4			72.9			4.8	%
Interest expense		3.5			3.5			—			7.1			7.0			1.4	%
Total benefits, losses and expenses		235.7			261.9			-10.0	%		442.9			469.7			-5.7	%
Income (loss) before income taxes		18.4			(16.7	)		N.M.			55.9			20.1			178.1	%
Income tax expense (benefit)		5.3			(4.9	)		N.M.			16.1			6.1			163.9	%
Net income (loss)	$	13.1		$	(11.8	)		N.M.		$	39.8		$	14.0			184.3	%
ANALYSIS OF PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty
Automobile and property (voluntary)	$	138.5		$	137.5			0.7	%	$	265.7		$	265.9			-0.1	%
Involuntary and other property & casualty		0.9			1.1			-18.2	%		1.4			1.5			-6.7	%
Total Property & Casualty		139.4			138.6			0.6	%		267.1			267.4			-0.1	%
Annuity deposits		96.4			96.3			0.1	%		188.4			188.8			-0.2	%
Life		24.4			24.4			—			47.5			47.2			0.6	%
Total	$	260.2		$	259.3			0.3	%	$	503.0		$	503.4			-0.1	%
ANALYSIS OF SEGMENT NET INCOME (LOSS)
Property & Casualty	$	(4.1	)	$	(25.6	)		N.M.		$	9.1		$	(13.2	)		N.M.
Annuity		7.9			7.4			6.8	%		19.5			15.8			23.4	%
Life		6.1			5.9			3.4	%		11.3			10.1			11.9	%
Corporate and other (B)		3.2			0.5			N.M.			(0.1	)		1.3			N.M.
Net income (loss)		13.1			(11.8	)		N.M.			39.8			14.0			184.3	%

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 June  30,									Six Months Ended June 30,
	2012			2011 (A)			% Change			2012			2011 (A)			% Change
PROPERTY & CASUALTY
Premiums written	$	139.4		$	138.6			0.6	%	$	267.1		$	267.4			-0.1	%
Premiums earned		135.6			136.4			-0.6	%		270.6			273.8			-1.2	%
Net investment income		9.3			9.3			—			18.2			18.5			-1.6	%
Other income		—			—			—			1.6			0.2			N.M.
Losses and loss adjustment expenses (LAE)		116.5			149.3			-22.0	%		209.7			244.6			-14.3	%
Operating expenses (includes policy acquisition expenses amortized)		36.4			34.4			5.8	%		71.5			69.7			2.6	%
Income (loss) before tax		(8.0	)		(38.0	)		N.M.			9.2			(21.8	)		N.M.
Net income (loss)		(4.1	)		(25.6	)		N.M.			9.1			(13.2	)		N.M.
Net investment income, after tax		8.0			7.9			1.3	%		15.5			15.7			-1.3	%
Catastrophe costs, after tax (B)		19.0			35.8			-46.9	%		22.8			41.0			-44.4	%
Catastrophe losses and LAE, before tax		29.2			55.0			-46.9	%		35.1			63.0			-44.3	%
Reinsurance reinstatement premiums, before tax		—			—			—			—			—			—
Prior years’ reserves favorable (adverse) development, pretax
Voluntary automobile	$	3.4		$	—			N.M.		$	6.7		$	2.7			148.1	%
Total property		1.1			1.0			10.0	%		1.8			1.0			80.0	%
Other property and casualty		—			—			—			—			—			—
Total		4.5			1.0			N.M.			8.5			3.7			129.7	%
Operating statistics:
Loss and loss adjustment expense ratio		85.9	%		109.5	%		N.M.			77.5	%		89.3	%		N.M.
Expense ratio		26.9	%		25.2	%		N.M.			26.4	%		25.4	%		N.M.
Combined ratio		112.8	%		134.7	%		N.M.			103.9	%		114.7	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (B)		21.5	%		40.3	%		N.M.			12.9	%		23.0	%		N.M.
Prior years’ reserve development		-3.3	%		-0.7	%		N.M.			-3.0	%		-1.4	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (C)		94.6	%		95.1	%		N.M.			94.0	%		93.1	%		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.

- 3 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended June  30,									Six Months Ended June 30,
	2012			2011 (A)			% Change			2012			2011 (A)			% Change
PROPERTY & CASUALTY - continued
Additional Operating Information
Automobile and property detail:
Premiums written (voluntary) (B)	$	138.5		$	137.5			0.7	%	$	265.7		$	265.9			-0.1	%
Automobile		88.3			88.5			-0.2	%		177.7			180.5			-1.6	%
Property		50.2			49.0			2.4	%		88.0			85.4			3.0	%
Premiums earned (voluntary) (B)		135.0			135.8			-0.6	%		269.6			273.1			-1.3	%
Automobile		88.8			91.0			-2.4	%		177.5			183.0			-3.0	%
Property		46.2			44.8			3.1	%		92.1			90.1			2.2	%
Policies in force (voluntary) (in thousands)											723			737			-1.9	%
Automobile											485			494			-1.8	%
Property											238			243			-2.1	%
Policy renewal rate (voluntary)
Automobile (6 months)											91.4	%		90.5	%		N.M.
Automobile (12 months)											83.7	%		82.8	%		N.M.
Property (12 months)											87.5	%		85.4	%		N.M.
Voluntary automobile operating statistics:
Loss and loss adjustment expense ratio		74.5	%		77.0	%		N.M.			73.2	%		71.3	%		N.M.
Expense ratio		26.7	%		25.3	%		N.M.			26.8	%		25.6	%		N.M.
Combined ratio		101.2	%		102.3	%		N.M.			100.0	%		96.9	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (C)		3.4	%		4.3	%		N.M.			2.0	%		2.3	%		N.M.
Prior years’ reserve development		-3.8	%		0.0	%		N.M.			-3.8	%		-1.5	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (D)		101.6	%		98.0	%		N.M.			101.8	%		96.1	%		N.M.
Total property operating statistics:
Loss and loss adjustment expense ratio		107.9	%		176.8	%		N.M.			85.5	%		126.4	%		N.M.
Expense ratio		27.4	%		25.1	%		N.M.			25.7	%		25.3	%		N.M.
Combined ratio		135.3	%		201.9	%		N.M.			111.2	%		151.7	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (C)		57.1	%		115.0	%		N.M.			34.5	%		66.0	%		N.M.
Prior years’ reserve development		-2.4	%		-2.3	%		N.M.			-1.9	%		-1.1	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years’ reserve development (“underlying combined ratio”) (D)		80.6	%		89.2	%		N.M.			78.6	%		86.8	%		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.

- 4 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended June 30,									Six Months Ended June 30,
	2012			2011 (A)			% Change			2012			2011 (A)			% Change
ANNUITY
Contract deposits	$	96.4		$	96.3			0.1	%	$	188.4		$	188.8			-0.2	%
Variable		30.1			28.6			5.2	%		57.3			55.5			3.2	%
Fixed		66.3			67.7			-2.1	%		131.1			133.3			-1.7	%
Contract charges earned		5.5			4.8			14.6	%		10.5			9.5			10.5	%
Net investment income		49.8			45.3			9.9	%		99.3			89.5			10.9	%
Net interest margin (without realized investment gains and losses)		19.9			17.4			14.4	%		39.8			34.4			15.7	%
Other income		0.8			0.9			-11.1	%		1.5			1.7			-11.8	%
Mortality loss and other reserve changes		(1.3	)		(0.8	)		62.5	%		(1.1	)		(1.0	)		10.0	%
Operating expenses (includes policy acquisition expenses amortized)		13.1			11.3			15.9	%		21.6			21.0			2.9	%
Income before tax		11.8			11.0			7.3	%		29.1			23.6			23.3	%
Net income		7.9			7.4			6.8	%		19.5			15.8			23.4	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	(1.8	)	$	(0.8	)		125.0	%	$	0.8		$	0.1			N.M.
Guaranteed minimum death benefit reserve		(0.1	)		(0.1	)		—			0.1			(0.1	)		N.M.
Annuity contracts in force (in thousands)											186			182			2.2	%
Accumulated value on deposit / Assets under management										$	4,520.6		$	4,225.1			7.0	%
Variable											1,348.1			1,371.2			-1.7	%
Fixed											3,172.5			2,853.9			11.2	%
Annuity accumulated value retention - 12 months
Variable accumulations											94.0	%		92.6	%		N.M.
Fixed accumulations											95.1	%		94.6	%		N.M.
LIFE
Premiums and contract deposits	$	24.4		$	24.4			—		$	47.5		$	47.2			0.6	%
Premiums and contract charges earned		25.2			25.1			0.4	%		50.7			49.7			2.0	%
Net investment income		17.5			17.4			0.6	%		35.0			34.7			0.9	%
Income before tax		9.6			9.1			5.5	%		17.7			15.7			12.7	%
Net income		6.1			5.9			3.4	%		11.3			10.1			11.9	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	(0.1	)	$	(0.1	)		—		$	(0.2	)	$	(0.3	)		-33.3	%
Life policies in force (in thousands)											202			206			-1.9	%
Life insurance in force										$	14,353		$	14,013			2.4	%
Lapse ratio - 12 months (Ordinary life insurance)											4.5	%		4.7	%		N.M.
CORPORATE AND OTHER (B)
Components of income (loss) before tax:
Net realized investment gains	$	9.9		$	5.7			73.7	%	$	10.3		$	11.5			-10.4	%
Interest expense		(3.5	)		(3.5	)		—			(7.1	)		(7.0	)		1.4	%
Other operating expenses, net investment income and other income		(1.4	)		(1.0	)		40.0	%		(3.3	)		(1.9	)		73.7	%
Income (loss) before tax		5.0			1.2			N.M.			(0.1	)		2.6			N.M.
Net income (loss)		3.2			0.5			N.M.			(0.1	)		1.3			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.

- 5 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended June 30,							Six Months Ended June 30,
	2012		2011		% Change			2012		2011		% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2012, $4,363.7; 2011, $4,034.9)								$	4,854.8	$	4,264.9		13.8	%
Equity securities, at fair value (cost 2012, $7.7; 2011, $6.4)									7.6		7.4		2.7	%
Short-term investments									13.1		7.1		84.5	%
Short-term investments, securities lending collateral									—		—		—
Policy loans and other									183.4		124.8		47.0	%
Total Annuity and Life investments									5,058.9		4,404.2		14.9	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2012, $783.1; 2011, $777.6)									839.9		799.9		5.0	%
Equity securities, at fair value (cost 2012, $29.5; 2011, $14.3)									30.4		17.7		71.8	%
Short-term investments									9.0		6.1		47.5	%
Short-term investments, securities lending collateral									—		—		—
Total Property & Casualty investments									879.3		823.7		6.8	%
Corporate investments									11.4		21.8		-47.7	%
Total investments									5,949.6		5,249.7		13.3	%
Net investment income
Before tax	$	76.3	$	71.7		6.4	%	$	152.0	$	142.2		6.9	%
After tax		51.4		48.5		6.0	%		102.4		96.1		6.6	%
Net realized investment gains (losses) by investment portfolio included in the Corporate and Other segment income (loss)
Property & Casualty	$	4.7	$	2.7		74.1	%	$	7.4	$	4.3		72.1	%
Annuity		4.7		2.5		88.0	%		1.8		4.2		-57.1	%
Life		0.5		0.5		—			1.1		3.0		-63.3	%
Corporate and Other		—		—		—			—		—		—
Total, before tax		9.9		5.7		73.7	%		10.3		11.5		-10.4	%
Total, after tax		6.4		3.7		73.0	%		6.7		7.4		-9.5	%
Per share, diluted	$	0.16	$	0.09		77.8	%	$	0.16	$	0.18		-11.1	%

N.M. - Not meaningful.

- 6 -