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Schedule II Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2018
Condensed Financial Information Disclosure [Abstract]  
Schedule II Condensed Financial Information of Registrant HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
BALANCE SHEETS
As of December 31, 2018 and 2017
($ in thousands, except share data)
 
 
 
December 31,
 
 
2018
 
2017
ASSETS
 
 
 
 
 
Investments and cash
 
$
5,255

 
$
6,464

Investment in subsidiaries
 
1,473,538

 
1,685,390

Other assets
 
66,138

 
66,445

 
 
 
 
 
Total assets
 
$
1,544,931

 
$
1,758,299

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
Long-term debt
 
$
247,740

 
$
247,469

Other liabilities
 
6,641

 
9,257

 
 
 
 
 
Total liabilities
 
254,381

 
256,726

 
 
 
 
 
Preferred stock, $0.001 par value, authorized 1,000,000 shares;
none issued
 
—

 
—

Common stock, $0.001 par value, authorized 75,000,000 shares;
issued, 2018, 65,820,369; 2017, 65,439,245
 
66

 
65

Additional paid-in capital
 
475,109

 
464,246

Retained earnings
 
1,216,582

 
1,231,177

Accumulated other comprehensive income (loss), net of taxes:
 
 

 
 

Net unrealized investment gains on securities
 
96,941

 
300,177

Net funded status of benefit plans
 
(12,185
)
 
(13,217
)
Treasury stock, at cost, 2018, 24,850,484 shares;
2017, 24,721,372 shares
 
(485,963
)
 
(480,875
)
 
 
 
 
 
Total shareholders' equity
 
1,290,550

 
1,501,573

 
 
 
 
 
Total liabilities and shareholders' equity
 
$
1,544,931

 
$
1,758,299

 









See accompanying Note to Condensed Financial Statements.
See accompanying Report of Independent Registered Public Accounting Firm.
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
STATEMENTS OF OPERATIONS
 
($ in thousands)
 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Revenues
 
 

 
 

 
 

Net investment income
 
$
100

 
$
34

 
$
20

Realized investment gains
 
—

 
—

 
—

 
 
 
 
 
 
 
Total revenues
 
100

 
34

 
20

 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
Interest expense
 
11,892

 
11,835

 
11,808

Other
 
10,898

 
5,101

 
5,631

 
 
 
 
 
 
 
Total expenses
 
22,790

 
16,936

 
17,439

 
 
 
 
 
 
 
Loss before income tax benefit and equity in net earnings of subsidiaries
 
(22,690
)
 
(16,902
)
 
(17,419
)
Income tax benefit
 
(4,723
)
 
(6,667
)
 
(6,076
)
Loss before equity in net earnings of subsidiaries
 
(17,967
)
 
(10,235
)
 
(11,343
)
Equity in net earnings of subsidiaries
 
36,310

 
179,694

 
95,108

 
 
 
 
 
 
 
Net income
 
$
18,343

 
$
169,459

 
$
83,765

 





















See accompanying Note to Condensed Financial Statements.
See accompanying Report of Independent Registered Public Accounting Firm.
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
STATEMENTS OF CASH FLOWS
 
($ in thousands)
 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
Cash flows - operating activities
 
 

 
 

 
 

Interest expense paid
 
$
(11,892
)
 
$
(11,503
)
 
$
(11,754
)
Income taxes recovered (paid)
 
(216
)
 
(373
)
 
8,914

Cash dividends received from subsidiaries
 
61,000

 
56,900

 
59,600

Other, net, including settlement of payables to subsidiaries
 
1,214

 
4,201

 
581

 
 
 
 
 
 
 
Net cash provided by operating activities
 
50,106

 
49,225

 
57,341

 
 
 
 
 
 
 
Cash flows - investing activities
 
 
 
 
 
 
Net increase (decrease) in investments
 
1,621

 
(2,338
)
 
9,161

 
 
 
 
 
 
 
Net cash provided by (used in) investing activities
 
1,621

 
(2,338
)
 
9,161

 
 
 
 
 
 
 
Cash flows - financing activities
 
 
 
 
 
 
Dividends paid to shareholders
 
(46,689
)
 
(46,114
)
 
(44,310
)
Acquisition of treasury stock
 
(5,088
)
 
(1,660
)
 
(21,513
)
Exercise of stock options
 
3,627

 
4,190

 
3,329

Withholding tax payments on RSUs tendered
 
(3,165
)
 
(3,245
)
 
(4,015
)
 
 
 
 
 
 
 
Net cash used in financing activities
 
(51,315
)
 
(46,829
)
 
(66,509
)
 
 
 
 
 
 
 
Net increase (decrease) in cash
 
412

 
58

 
(7
)
Cash at beginning of period
 
126

 
68

 
75

 
 
 
 
 
 
 
Cash at end of period
 
$
538

 
$
126

 
$
68

 














See accompanying Note to Condensed Financial Statements.
See accompanying Report of Independent Registered Public Accounting Firm.
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
NOTE TO CONDENSED FINANCIAL STATEMENTS
 
The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the accompanying notes thereto.