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 24, 2017

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

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. The Company 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 quarter ended June 30, 2017 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 24, 2017, the Company issued a press release reporting its financial results for the three and nine month periods ended September 30, 2017. A copy of the press release is attached as Exhibit 99.2 and is incorporated by reference herein.

 The Company’s Investor Financial Supplement has been posted on the investors page of its website, investors.horacemann.com, and the Investor Presentation is anticipated to be posted there by October 25, 2017.

Item 9.01: Financial Statements and Exhibits

(d)Exhibits.

99.1 Glossary of Selected Terms

99.2 Press release dated October 24, 2017 reporting financial results for the three and nine month periods ended September 30, 2017.

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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/ Kimberly A. Johnson
	Name:	Kimberly A. Johnson
	Title:	Vice President & Controller
		(Principal Accounting Officer)

Date: October 24, 2017

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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, not based on accounting principles generally accepted in the United States ("non-GAAP") under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statement of Operations or Consolidated Balance Sheet, and in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States ("GAAP").  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.

Book value per share excluding the fair value adjustment for investments - The result of dividing total shareholders’ equity excluding after tax net unrealized investment gains and losses on fixed maturity and equity securities, including the related effect on certain deferred policy acquisition costs, 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 net unrealized 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.

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

Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports claims and claim 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 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.

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Exclusive Distributor - A licensed representative of Horace Mann. Horace Mann utilizes multiple points of distribution, including, but not limited to, direct sales, employee agents and exclusive agents.

Independent Agents - Non-exclusive distributor 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.

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 investment contracts (annuities) and life products with account values, 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 net realized investment gains and losses - Net income adjusted to exclude after tax net 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 net realized investment gains and losses. Net 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 net realized investment gains and losses is not appropriate on a forward-looking basis because it is not possible to provide a valid forecast of net realized investment gains and losses, which can vary substantially from one period to another and may have a significant impact on net income.

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 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 net 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 NewAnnualized Sales - New annualized sales are measured by the Company as premiums and deposits to be collected over the 12 months following the sale of a new policy for life, automobile and homeowners business, as well as increases in contributions to certain life business. The Retirement segment's annuity sales are measured by the Company based on total recurring deposits as well as single deposits/rollovers. In addition, the Company may disclose new policy count (units) information for automobile and homeowners business. Sales data pertains to Horace Mann products and excludes authorized products sold by Exclusive Distributors and Independent Agents that are underwritten by third-party vendors. Sales should not be viewed as a substitute for any GAAP measure, including "sales" as it relates to non-insurance companies, and the Company’s definition of sales or new annualized 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

News release for immediate release

FOR IMMEDIATE RELEASE

Contact information:

Ryan Greenier, Vice President, Investor Relations

217-788-5738

HORACE MANN REPORTS THIRD QUARTER 2017

NET INCOME OF $0.64 PER SHARE AND OPERATING EPS* OF $0.69

• 5.3 points of Property and Casualty catastrophe losses, a level consistent with the prior year period

• Property and Casualty combined ratio of 95.8% - a 5.7 point improvement, reflecting a lower underlying loss ratio* as well as a lower expense ratio

• Solid operating earnings in the Retirement and Life segments

SPRINGFIELD, Ill., October 24, 2017 — Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the three and nine month periods ended September 30, 2017:

Horace Mann Financial Highlights
	Three Months Ended September 30,							Nine Months Ended September 30,
($ in millions, except per share amounts)	2017			2016			Change	2017			2016			Change
Total revenues	$	289.8		$	291.3		-0.5%	$	868.5		$	846.1		2.6%
Net income	26.5			26.9			-1.5%	44.1			63.9			-31.0%
Net realized investment gains (losses) after tax	(2.2		)	2.7				(0.8		)	3.8
Operating income*	28.7			24.2			18.6%	44.9			60.1			-25.3%
Per diluted share:
Net income	0.64			0.65			-1.5%	1.06			1.55			-31.6%
Net realized investment gains (losses) after tax	(0.05		)	0.07				(0.02		)	0.10
Operating income	0.69			0.58			19.0%	1.08			1.45			-25.5%
Book value per share								34.20			35.94			-4.8%
Book value per share excluding the fair value adjustment for investments*								27.91			27.54			1.3%
Property and Casualty net income	13.4			6.7			100.0%	2.2			16.0			-86.3%
Property and Casualty combined ratio	95.8		%	101.5		%	-5.7 pts	106.5		%	102.4		%	4.1 pts
Property and Casualty underlying combined ratio*	90.8		%	96.6		%	-5.8 pts	94.9		%	92.8		%	2.1 pts
Retirement net income	$	13.6		$	15.7		-13.4%	$	36.9		$	39.3		-6.1%
Life net income	4.8			4.6			4.3%	14.3			13.1			9.2%

* These measures are not based on accounting principles generally accepted in the United States (“non-GAAP”). They are reconciled to the most directly comparable GAAP measures in the supplemental numerical pages of this document and in the Investor Financial Supplement. 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.

The Horace Mann Companies 1 Horace Mann Plaza Springfield, Illinois 62715-0001

217-789-2500 www.horacemann.com

"Horace Mann's third quarter operating income increased 19% compared to the prior year period reflecting stronger Property and Casualty results. Despite a very active catastrophe quarter for the industry, our Property and Casualty operations produced a 95.8% combined ratio including catastrophes. Catastrophe losses of $8.6 million pretax were consistent with the prior year period. The quarter's results reflect significant progress in our efforts to improve auto profitability, and we continue to expect sustained margin improvement to emerge in 2018. In addition, our Retirement and Life results were solid contributors to the quarter's earnings," said Horace Mann's President and Chief Executive Officer Marita Zuraitis.

Property and Casualty Segment

For the third quarter of 2017, Property and Casualty net income increased to $13.4 million compared to $6.7 million in the prior year period. The Property and Casualty combined ratio of 95.8%improved5.7 points compared to the prior year period. These improvements were primarily due to an improved underlying auto loss ratio, reflecting the impact of rate actions and continued profitability initiatives, as well as a strong underlying property loss ratio and lower expenses.

Prior years' reserves continue to develop favorably; however, the favorable development in the third quarter of $0.5 million pretax was $0.2 million pretax lower than the amount a year ago.

Catastrophe activity in the third quarter of 2017 totaled $8.6 million pretax compared to $8.4 million pretax in the prior year period. Losses related to Hurricane Harvey were $5.0 million pretax and losses related to Hurricane Irma were $2.5 million pretax. The remainder, $1.1 million pretax, of catastrophe losses related to four additional events.

On an underlying basis, the third quarter auto combined ratio of 103.4%improved4.9 points and the property combined ratio of 79.9%improved7.8 points as compared to the prior year period. These improvements were driven by both lower loss ratios and improved expense ratios. The underlying auto loss ratio of 74.5%improved3.2 points compared to the prior year period as a result of an increase in earned premium due to rate actions combined with continued stabilization in auto loss trends. The underlying property loss ratio of 46.3%improved6.6 points compared to the prior year period primarily as a result of lower non-catastrophe weather-related losses in the current quarter.

For the first nine months of 2017, Property and Casualty net income decreased to $2.2 million compared to $16.0 million in the prior year period as a result of elevated catastrophe losses and non-catastrophe weather-related losses that occurred in the first half of the year. The Property and Casualty combined ratio of 106.5%increased4.1 points compared to a year ago. Pretax catastrophe losses were $9.8 million higher than the first nine months of 2016; favorable prior years' reserve development was $2.2 million pretax less than the prior year period.

On an underlying basis, the nine month auto loss ratio of 77.0%increased0.5 points compared to the prior year period. For property, the underlying nine month loss ratio of 49.7%increased6.1 points compared to the prior year period and was largely related to the impact of higher non-catastrophe weather-related losses that occurred in the first half of the year. The expense ratio for Property and Casualty of 26.7% was slightly below the prior year period.

Total Property and Casualty written premiums* of $177.2 million and $498.0 million for the three and nine month periods ended September 30, 2017 increased 4% and 5%, respectively, compared to the prior year periods. The growth was driven primarily by rate actions, which resulted in an increase in the average premium per policy for both auto and property.

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Total Property and Casualty sales* increased 5% and 7% compared to the three and nine month periods ended September 30, 2016. For the third quarter 2017, auto sales increased5% and property sales increased6% compared to the prior year period. Policy retention continues to be strong with auto and property policy retention rates for the current quarter at 83% and 88%, respectively.

Retirement Segment

For the third quarter of 2017, Retirement net income of $13.6 milliondecreased$2.1 million compared to the prior year period, primarily due to a $3.4 million pretax decrease in net interest margin and a $1.0 million pretax increase in operating expenses offset by a $1.1 million pretax increase in contract charges.

For the first nine months of 2017, the annualized net interest spread on fixed annuity assets was 188 basis points, a decrease of 7 basis points compared to a year ago. Annuity assets under management of $6.6 billionincreased5% compared to a year ago, and total cash value persistency remained strong at 90% for variable annuities and 93% for fixed annuities.

Overall, the total level of Retirement deposits* was in line with the prior year periods with an increase in asset flows related to fee-based mutual fund offerings largely offsetting a decrease in traditional annuity products. For the three and nine month periods ended September 30, 2017, annuity deposits of $114.8 million and $348.9 million decreased 26% and 11%, respectively, compared to the prior year periods. The decline in annuity deposits was related to lower sales of single premium annuity products in the current year. For the current year, deposits on recurring annuity products increased 1% as compared to the prior year. Sales* and deposit activity related to new retail and institutional Retirement Advantage products, as well as other mutual fund offerings, were strong with $53.0 million of deposits in the current year compared to $28.0 million in the prior year.

Life Segment

Life net income of $4.8 million and $14.3 million for the three and nine month periods ended September 30, 2017, increased 4% and 9%, respectively, largely due to lower operating expenses compared to the third quarter of 2016 and more favorable mortality results compared to the prior nine months of 2016.

Life insurance premiums and contract deposits* of $26.4 million for the current quarter decreased3% compared to the prior year period. For the first nine months of 2017, they increased2%, to $79.8 million compared to the prior year period. Life sales* of $3.2 milliondecreased11% compared to the third quarter of 2016. Life sales for the first nine months of 2017 of $11.6 millionincreased8% compared to the prior year period, primarily due to an increase in single premium sales. Life persistency of 95% was comparable to 12 months earlier.

Investment Results

Total net investment income for the three and nine month periods ended September 30, 2017decreased3% and increased2% compared to the prior year periods, reflecting higher asset balances in the Retirement segment offset by the impact of the current low interest rate environment. Pretax net realized investment losses were $3.5 million and $1.7 million for the three and nine month periods ended

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September 30, 2017, respectively. In the third quarter of 2017, $6.1 million pretax charges for other than temporary impairment were recorded primarily on fixed maturity securities in the construction sector.

Horace Mann's net unrealized investment gains on fixed maturity and equity securities were $455.3 million at September 30, 2017, compared to net unrealized investment gains on fixed maturity and equity securities of $599.3 million at September 30, 2016. The decline in net unrealized gains is largely attributable to an increase in interest rates.

Capital Management

During the third quarter of 2017, the Company repurchased 48,440 shares of its common stock at an aggregate cost of $1.7 million under its share repurchase program. As of September 30, 2017, $27.8 million remained authorized for future share repurchases under the share repurchase program.

Webcast Conference Call

Horace Mann’s senior management will discuss the Company’s third quarter financial results with investors and analysts on October 25, 2017 at 10:00 a.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and archived later in the day for replay.

About Horace Mann

Horace Mann Educators Corporation (NYSE: HMN) is the largest financial services company focused on providing America's educators and school employees with insurance and retirement solutions. Founded by Educators for Educators^® in 1945, the Company is headquartered in Springfield, Illinois. For more information about the Company, visit 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, 2017, and the Company's past and future filings and reports filed with the Securities and Exchange Commission for information concerning important factors that could cause actual results to differ materially from those in forward-looking statements. Information contained in this press release include measures which are based on methodologies other than accounting principles generally accepted in the United States (“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.

# # #

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HORACE MANN EDUCATORS CORPORATION

Financial Highlights (Unaudited)

($ in Millions, except per share data)

	Three Months Ended September 30,							Nine Months Ended September 30,
	2017			2016		Change		2017			2016			Change
EARNINGS SUMMARY
Net income	$	26.5		$	26.9	-1.5	%	$	44.1		$	63.9		-31.0	%
Net realized investment gains (losses), after tax (see below)	(2.2		)	2.7		N.M.		(0.8		)	3.8			-121.1	%
Operating income (A)	28.7			24.2		18.6	%	44.9			60.1			-25.3	%
Per diluted share:
Net income	$	0.64		$	0.65	-1.5	%	$	1.06		$	1.55		-31.6	%
Net realized investment gains (losses), after tax (see below)	$	(0.05	)	$	0.07	N.M.		$	(0.02	)	$	0.10		N.M.
Operating income (A)	$	0.69		$	0.58	19.0	%	$	1.08		$	1.45		-25.5	%
Weighted average number of shares and equivalent shares (in millions) - Diluted	41.6			41.3		0.7	%	41.5			41.4			0.2	%
RETURN ON EQUITY
Net income return on equity (B)								4.7		%	6.3		%	-1.6 pts
Operating income return on equity excluding the fair value adjustment for investments (A) (C)								5.9		%	7.2		%	-1.3 pts
FINANCIAL POSITION
Per share (D):
Book value								$	34.20		$	35.94		-4.8	%
Effect of the fair value adjustment for investments (E)								$	6.29		$	8.40		-25.1	%
Book value excluding the fair value adjustment for investments (A)								$	27.91		$	27.54		1.3	%
Dividends paid	$	0.275		$	0.265	3.8	%	$	0.825		$	0.795		3.8	%
Ending number of shares outstanding (in millions) (D)								40.7			40.2			1.2	%
Total assets								$	11,044.3		$	10,691.1		3.3	%
Long-term debt, current and noncurrent								247.4			247.1			0.1	%
Total shareholders' equity								1,390.4			1,444.1			-3.7	%
ADDITIONAL INFORMATION
Net realized investment gains (losses)
Before tax	$	(3.5	)	$	4.0	N.M.		$	(1.7	)	$	6.9		-124.6	%
After tax	(2.2		)	2.7		N.M.		(0.8		)	3.8			-121.1	%
Per share, diluted	$	(0.05	)	$	0.07	N.M.		$	(0.02	)	$	0.10		-120.0	%

N.M.- Not meaningful.

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

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

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

(D) Ending shares outstanding were 40,661,505 at September 30, 2017 and 40,182,965 at September 30, 2016.

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

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HORACE MANN EDUCATORS CORPORATION

Statements of Operations and Supplemental Consolidated Data (Unaudited)

($ in Millions)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			Change		2017			2016			Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	199.0		$	191.1		4.1	%	$	590.4		$	564.9		4.5	%
Net investment income	92.3			94.9			-2.7	%	275.0			270.7			1.6	%
Net realized investment gains (losses)	(3.5		)	4.0			N.M.		(1.7		)	6.9			-124.6	%
Other income	2.0			1.3			53.8	%	4.8			3.6			33.3	%
Total revenues	289.8			291.3			-0.5	%	868.5			846.1			2.6	%
Benefits, claims and settlement expenses	134.9			135.7			-0.6	%	444.9			403.6			10.2	%
Interest credited	50.1			48.6			3.1	%	148.2			142.9			3.7	%
Policy acquisition expenses amortized	24.2			24.5			-1.2	%	73.9			73.1			1.1	%
Operating expenses	44.2			44.5			-0.7	%	139.1			130.6			6.5	%
Interest expense	3.0			3.0			0	%	8.9			8.9			0	%
Total benefits, losses and expenses	256.4			256.3			0	%	815.0			759.1			7.4	%
Income before income taxes	33.4			35.0			-4.6	%	53.5			87.0			-38.5	%
Income tax expense	6.9			8.1			-14.8	%	9.4			23.1			-59.3	%
Net income	$	26.5		$	26.9		-1.5	%	$	44.1		$	63.9		-31.0	%
PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty	$	177.2		$	169.8		4.4	%	$	498.0		$	476.3		4.6	%
Annuity deposits	114.8			154.6			-25.7	%	348.9			391.9			-11.0	%
Life	26.4			27.2			-2.9	%	79.8			78.4			1.8	%
Total	$	318.4		$	351.6		-9.4	%	$	926.7		$	946.6		-2.1	%
SEGMENT NET INCOME (LOSS)
Property & Casualty	$	13.4		$	6.7		100.0	%	$	2.2		$	16.0		-86.3	%
Retirement	13.6			15.7			-13.4	%	36.9			39.3			-6.1	%
Life	4.8			4.6			4.3	%	14.3			13.1			9.2	%
Corporate and other (A)	(5.3		)	(0.1		)	N.M.		(9.3		)	(4.5		)	106.7	%
Net income	$	26.5		$	26.9		-1.5	%	$	44.1		$	63.9		-31.0	%

N.M.- Not meaningful.

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

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

($ in Millions)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			Change		2017			2016			Change
PROPERTY & CASUALTY
Premiums written	$	177.2		$	169.8		4.4	%	$	498.0		$	476.3		4.6	%
Premiums earned	163.2			155.7			4.8	%	482.0			461.5			4.4	%
Net investment income	9.2			10.0			-8.0	%	26.5			29.0			-8.6	%
Other income	(0.1		)	0.4			-125.0	%	—			0.8			N.M.
Losses and loss adjustment expenses (LAE)	114.9			116.0			-0.9	%	384.9			347.0			10.9	%
Operating expenses (includes policy  acquisition expenses amortized)	41.4			42.0			-1.4	%	128.5			125.3			2.6	%
Income (loss) before tax	16.0			8.1			97.5	%	(4.9		)	19.0			-125.8	%
Net income	13.4			6.7			100.0	%	2.2			16.0			-86.3	%
Net investment income, after tax	7.3			7.9			-7.6	%	21.2			23.2			-8.6	%
Catastrophe costs (A)
After tax	5.6			5.5			1.8	%	37.8			31.5			20.0	%
Before tax	8.6			8.4			2.4	%	58.2			48.4			20.2	%
Prior years' reserves favorable (adverse) development, before tax
Automobile	—			—			0	%	—			—			0	%
Property & other	0.5			0.7			-28.6	%	2.1			4.3			-51.2	%
Total	0.5			0.7			-28.6	%	2.1			4.3			-51.2	%
Operating statistics:
Loss and loss adjustment expense ratio	70.4		%	74.5		%	-4.1 pts		79.8		%	75.2		%	4.6 pts
Expense ratio	25.4		%	27.0		%	-1.6 pts		26.7		%	27.2		%	-0.5 pts
Combined ratio	95.8		%	101.5		%	-5.7 pts		106.5		%	102.4		%	4.1 pts
Effect on the combined ratio of:
Catastrophe costs (A)	5.3		%	5.3		%	0.0 pts		12.0		%	10.5		%	1.5 pts
Prior years' reserve development	-0.3		%	-0.4		%	0.1 pts		-0.4		%	-0.9		%	0.5 pts
Combined ratio excluding the effects of catastrophe costs and prior years' reserve development ("underlying combined ratio") (B)	90.8		%	96.6		%	-5.8 pts		94.9		%	92.8		%	2.1 pts
Policies in force (in thousands)									699			707			-1.1	%
Automobile									482			486			-0.8	%
Property									217			221			-1.8	%
Policy renewal rate - 12 months
Automobile									83.0		%	83.5		%	-0.5 pts
Property									87.6		%	87.8		%	-0.2 pts

N.M.- Not meaningful.

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

(B) This measure is not based on accounting principles generally accepted in the United States ("non-GAAP").

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

-3-

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

($ in Millions)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			Change		2017			2016			Change
RETIREMENT
Contract deposits	$	114.8		$	154.6		-25.7	%	$	348.9		$	391.9		-11.0	%
Variable	38.6			37.7			2.4	%	127.7			117.6			8.6	%
Fixed	76.2			116.9			-34.8	%	221.2			274.3			-19.4	%
Contract charges earned	7.5			6.4			17.2	%	20.8			18.6			11.8	%
Net investment income	64.3			66.3			-3.0	%	192.9			187.0			3.2	%
Interest credited	38.8			37.4			3.7	%	114.4			109.4			4.6	%
Net interest margin (without realized investment gains/losses)	25.5			28.9			-11.8	%	78.5			77.6			1.2	%
Other income	1.7			0.5			N.M.		4.1			2.0			105.0	%
Mortality loss and other reserve changes	(1.6		)	(1.4		)	14.3	%	(4.0		)	(3.1		)	29.0	%
Operating expenses (includes policy acquisition expenses amortized)	15.1			14.1			7.1	%	48.1			41.3			16.5	%
Income before tax	18.0			20.3			-11.3	%	51.3			53.8			-4.6	%
Net income	13.6			15.7			-13.4	%	36.9			39.3			-6.1	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	0.7		$	0.1		N.M.		$	0.1		$	(0.6	)	-116.7	%
Guaranteed minimum death benefit reserve	—			—			0	%	—			—			0	%
Retirement contracts in force (in thousands)									221			215			2.8	%
Annuity accumulated account value on deposit / Assets under management									$	6,634.1		$	6,322.8		4.9	%
Variable									2,051.5			1,873.6			9.5	%
Fixed									4,582.6			4,449.2			3.0	%
Annuity accumulated value retention - 12 months
Variable accumulations									89.7		%	94.6		%	-4.9 pts
Fixed accumulations									92.6		%	94.6		%	-2.0 pts
LIFE
Premiums and contract deposits	$	26.4		$	27.2		-2.9	%	$	79.8		$	78.4		1.8	%
Premiums and contract charges earned	28.3			29.0			-2.4	%	87.6			84.8			3.3	%
Net investment income	19.0			18.8			1.1	%	56.2			55.3			1.6	%
Other income	0.1			0.3			-66.7	%	0.3			0.6			-50.0	%
Death benefits/mortality cost/change in reserves	18.4			18.3			0.5	%	56.0			53.5			4.7	%
Interest credited	11.3			11.2			0.9	%	33.8			33.5			0.9	%
Operating expenses (includes policy acquisition expenses amortized)	10.3			11.5			-10.4	%	32.8			33.4			-1.8	%
Income before tax	7.4			7.1			4.2	%	21.5			20.3			5.9	%
Net income	4.8			4.6			4.3	%	14.3			13.1			9.2	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	—		$	—		0	%	$	0.2		$	0.2		0	%
Life policies in force (in thousands)									197			198			-0.5	%
Life insurance in force									$	17,403		$	16,864		3.2	%
Lapse ratio - 12 months (Ordinary life insurance)									4.7		%	4.1		%	0.6 pts
CORPORATE AND OTHER (A)
Components of income (loss) before tax:
Net realized investment gains (losses)	$	(3.5	)	$	4.0		N.M.		$	(1.7	)	$	6.9		-124.6	%
Interest expense	(3.0		)	(3.0		)	0	%	(8.9		)	(8.9		)	0	%
Other operating expenses, net investment income and other income	(1.5		)	(1.5		)	0	%	(3.8		)	(4.1		)	-7.3	%
Loss before tax	(8.0		)	(0.5		)	N.M.		(14.4		)	(6.1		)	136.1	%
Net loss	(5.3		)	(0.1		)	N.M.		(9.3		)	(4.5		)	106.7	%

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.

-4-

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

($ in Millions)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017		2016		Change		2017		2016		Change
INVESTMENTS
Retirement and Life
Fixed maturities, at fair value (amortized cost 2017, $6,451.2; 2016, $6,144.0)							$	6,849.5	$	6,675.5	2.6	%
Equity securities, at fair value (cost 2017, $80.3;  2016, $62.2)							83.6		65.0		28.6	%
Short-term investments							83.4		178.6		-53.3	%
Policy loans							153.6		150.7		1.9	%
Other investments							212.4		132.0		60.9	%
Total Retirement and Life investments							7,382.5		7,201.8		2.5	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2017, $743.2;  2016, $763.6)							$	781.1	$	818.6	-4.6	%
Equity securities, at fair value (cost 2017, $59.9;  2016, $62.6)							75.7		72.6		4.3	%
Short-term investments							13.3		2.1		N.M.
Other investments							69.8		40.6		71.9	%
Total Property & Casualty investments							939.9		933.9		0.6	%
Corporate investments							14.7		33.5		-56.1	%
Total investments							8,337.1		8,169.2		2.1	%
Net investment income
Before tax	$	92.3	$	94.9	-2.7	%	$	275.0	$	270.7	1.6	%
After tax	61.4		63.0		-2.5	%	182.8		180.3		1.4	%

N.M.- Not meaningful.

-5-