Schedule II Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019

($ in thousands, except share data)

	December 31,
	2020		2019
ASSETS
Investments and cash	$	4,146	$	1,453
Investment in subsidiaries	2,120,982		1,901,725
Other assets	58,852		62,442
Total assets	$	2,183,980	$	1,965,620
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term debt	$	135,000	$	135,000
Long-term debt	248,323		248,025
Other liabilities	10,578		15,310
Total liabilities	393,901		398,335
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, 2020, 66,316,797; 2019, 66,088,808	66		66
Additional paid-in capital	488,367		480,962
Retained earnings	1,434,634		1,352,539
Accumulated other comprehensive income (loss), net of taxes:
Net unrealized investment gains on fixed maturity securities	366,285		230,448
Net funded status of benefit plans	(11,165)		(10,767)
Treasury stock, at cost, 2020, 24,902,579 shares; 2019, 24,850,484 shares	(488,108)		(485,963)
Total shareholders' equity	1,790,079		1,567,285
Total liabilities and shareholders' equity	$	2,183,980	$	1,965,620

See accompanying Note to Condensed Financial Statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II (continued)

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS

 ($ in thousands)

	Year Ended December 31,
	2020		2019		2018
Revenues
Net investment income	$	(174)	$	(135)	$	100
Realized investment gains	—		—		—
Total revenues	(174)		(135)		100
Expenses
Interest expense	14,771		14,272		11,892
Other	5,750		12,632		10,898
Total expenses	20,521		26,904		22,790
Loss before income tax benefit and equity in net earnings of subsidiaries	(20,695)		(27,039)		(22,690)
Income tax benefit	(5,307)		(6,029)		(4,723)
Loss before equity in net earnings of subsidiaries	(15,388)		(21,010)		(17,967)
Equity in net earnings of subsidiaries	148,703		205,453		36,310
Net income	$	133,315	$	184,443	$	18,343

See accompanying Note to Condensed Financial Statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II (continued)

HORACE MANN EDUCATORS CORPORATION

(Parent Company Only)

CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS

($ in thousands)

	Year Ended December 31,
	2020		2019		2018
Cash flows from operating activities
Net Income	$	133,315	$	184,443	$	18,343
Equity in net income of subsidiaries	(148,703)		(205,453)		(36,310)
Dividends received from subsidiaries	167,000		363,250		61,000
Changes in:
Income taxes	1,956		3,369		(4,939)
Operating assets and liabilities	(5,894)		8,310		(1,792)
Other	1,681		686		13,804
Net cash provided by operating activities	149,355		354,605		50,106
Cash flows from investing activities
Purchase of equity securities	1,000		—		—
Net increase (decrease) in short-term investments	(1,456)		3,336		1,621
Capital contributions to subsidiaries	(97,000)		—		—
Acquisition of businesses	—		(444,124)		—
Net cash provided by (used in) investing activities	(97,456)		(440,788)		1,621
Cash flows from financing activities
Dividends paid to shareholders	(49,620)		(47,333)		(46,689)
Principal borrowings on senior revolving credit facility	—		135,000		—
Acquisition of treasury stock	(2,145)		—		(5,088)
Proceeds from exercise of stock options	2,402		1,730		3,627
Withholding tax payments on RSUs tendered	(2,299)		(3,680)		(3,165)
Net cash (used in) provided by financing activities	(51,662)		85,717		(51,315)
Net increase (decrease) in cash	237		(466)		412
Cash at beginning of period	72		538		126
Cash at end of period	$	309	$	72	$	538

See accompanying Note to Condensed Financial Statements.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II (continued)

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.