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Horace Mann Reports Fourth Quarter 2012 Operating EPS Of $0.67

        Horace Mann Reports Fourth Quarter 2012 Operating EPS Of $0.67

- Results reflect solid performance across all business segments

- Book value per share excluding the fair value adjustment for investments of
$21.93 at December 31, 2012 increased 11% compared to a year ago

- Full-year 2013 operating income guidance of $1.75 to $1.95 per diluted share

PR Newswire

SPRINGFIELD, Ill., Feb. 5, 2013

SPRINGFIELD, Ill., Feb. 5, 2013 /PRNewswire/ --Horace Mann Educators
Corporation (NYSE:HMN) today reported financial results for the three and
twelve months ended December 31, 2012:

Horace Mann Financial Highlights
                          Three months ended       Year ended

                          December 31,             December 31,
($ in millions, except
per share                 2012    2011(A) Change   2012       2011(A) Change

amounts)
Total revenues            $255.4  $247.6  3.2%     $1,010.8   $998.3  1.3%
Net income                31.9    32.9    -3.0%    103.9      70.5    47.4%
Net income per diluted    0.77    0.79    -2.5%    2.51       1.70    47.6%
share
Operating income*         27.9    29.6    -5.7%    86.3       46.1    87.2%
Operating income per                                             

diluted share*            0.67    0.71    -5.6%    2.08       1.11    87.4%
Book value per share                               31.65      26.53   19.3%
Book value per share                                                
excluding
                                                                    
the fair value adjustment
                                                   21.93      19.79   10.8%
for investments*
Property and Casualty                                            
segment
                          14.5    17.4    -16.7%   37.1       5.9     N.M.
net income
Property and Casualty                                            

combined ratio            92.4%   92.4%   -        98.3%      106.6%  -8.3 pts
Property and Casualty                                            
underlying
                          94.5%   92.4%   2.1 pts  93.5%      92.8%   0.7 pts
combined ratio*
Annuity segment net       $ 11.1 $ 10.4 6.7%     $   40.5 $ 30.9 31.1%
income
Life segment net income   5.7     5.7     -        21.9       19.4    12.9%

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.

"Horace Mann's fourth quarter operating income was $0.67 per share -- a strong
finish to an excellent year. We are pleased with another quarter of solid
growth and underlying earnings performance across all three segments of our
multiline insurance platform," said Horace Mann's President and CEO Peter H.
Heckman. "In property and casualty, compared to fourth quarter 2011, both
written and earned premiums increased, retention ratios continued to improve,
catastrophe losses were minimal and reserves continued to develop favorably.
In our annuity business, assets under management were up 10% over prior year,
with increased earnings benefitting from higher fixed annuity spreads and
another quarter of positive deferred policy acquisition cost unlocking. And,
in our life segment, fourth quarter sales of Horace Mann products increased
57% compared to a year earlier, while lower than expected mortality losses
continued to have a favorable impact on earnings."

"We are projecting full-year 2013 operating income of between $1.75 and $1.95
per share," said Heckman. "This estimate anticipates a modest improvement in
our underlying property and casualty combined ratio, which we expect to be
more than offset by a reduced level of favorable prior years' reserve
development as well as a return to more normal levels of annuity deferred
policy acquisition cost unlocking and life mortality and $3 million to $4
million in customer experience investments."

Property and Casualty Segment

The property and casualty segment recorded net income of $14.5 million for the
quarter compared to $17.4 million for the same period in 2011. The total
property and casualty combined ratio of 92.4% was equal to the fourth quarter
of 2011. Pretax catastrophe losses in the current quarter of $2.8 million
decreased $1.9 million compared to a year ago. Favorable prior years' reserve
development totaling $5.7 million was recorded in the fourth quarter, compared
to $4.6 million of favorable development recorded in the fourth quarter of
2011. The underlying property and casualty combined ratio of 94.5% increased
2.1 percentage points compared to the prior year quarter, reflecting less
favorable current accident year property results excluding catastrophes
partially offset by an improvement in the underlying auto combined ratio.

For the year ended December 31, 2012, property and casualty segment net income
of $37.1 million improved $31.2 million compared to 2011, primarily as a
result of a lower level of catastrophe losses. The full year 2012 underlying
combined ratio was 93.5%, a slight increase compared to the prior year
reflecting less favorable underlying auto results partially offset by
improvement in current accident year property results excluding catastrophes.

Total property and casualty premiums written of $137.2 million and $550.8
million increased 3% and 1% compared to the three and twelve months ended
December 31, 2011, respectively, with increases in average property and auto
premiums per policy somewhat offset by fewer policies in force for both lines.

True new auto sales units -- units associated with new Horace Mann auto
policyholders -- decreased 3% in the current quarter but increased 20%
compared to full year 2011. The full year growth in total new auto units of
12% included a modest increase in the number of additional vehicles added to
existing policies. Meanwhile, property new sales units increased 12% and 16%
compared to the fourth quarter and twelve months of 2011, respectively.

Annuity Segment

Annuity segment net income was $11.1 million for the three months ended
December 31, 2012, increasing $0.7 million compared to the same period in
2011, which contributed to a $9.6 million increase for the full year. The net
interest margin on fixed annuity assets increased 15% compared to full year
2011, with the related net interest spread of 2.11% increasing 9 basis
points. The evaluation of deferred policy acquisition costs in the quarter
had a $2.5 million pretax positive impact on annuity segment earnings compared
to a $2.2 million positive impact in the prior year. Largely due to the
change in financial market performance, the respective evaluations had a
positive impact of $3.8 million pretax for full year 2012 and a negative
impact of $2.5 million pretax in 2011. Total accumulated account value of
$4.8 billion increased 10% compared to December 31, 2011, and total cash value
persistency of 95.0% improved approximately 1 percentage point compared to a
year earlier.

For the three months ended December 31, 2012, annuity deposits received of
$114.7 million were comparable to the prior year, while full year deposits
received of $417.6 million decreased 4% compared to 2011, primarily due to a
decrease in scheduled deposit receipts in 2012.

Total annuity sales were up 3% compared to fourth quarter 2011 and increased
1% for the full year. Within the full year result, annuity sales by Horace
Mann's agency force increased 14%, while sales from the supplemental
independent agent distribution channel declined year-over-year.

Life Segment

Life segment net income of $5.7 million for the fourth quarter was equal to
the same period in 2011. Compared to full year 2011, life segment net income
increased $2.5 million largely due to favorable mortality experience in 2012.
Life persistency of 96% improved approximately 1 percentage point compared to
12 months earlier.

Life segment insurance premiums and contract deposits of $27.6 million and
$99.3 million increased approximately 1% compared to the three and twelve
months ended December 31, 2011, respectively.

Total new life sales continued to be strong compared to the prior year, with
fourth quarter and full year growth rates of 57% and 40%, 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 4% and 6% compared to the three
and twelve months ended December 31, 2011, respectively. Pretax net realized
investment gains were $6.2 million in the current quarter and $27.3 million
for the full year. No impairment write-downs on securities were recorded in
2012.

Horace Mann's net unrealized investment gains on fixed maturity and equity
securities of $651.9 million at December 31, 2012 increased slightly compared
to September 30, 2012. Net unrealized gains were $441.1 million at December
31, 2011.

Capital Management

During the fourth quarter of 2012, the company repurchased 114,809 shares of
its common stock at an aggregate cost of $2.1 million, or an average price per
share of $18.23, under its $50 million share repurchase program. As of
December 31, 2012, the program had a remaining authorization of $32.2
million. There were 39,367,862 shares outstanding on December 31, 2012.

Webcast Conference Call

Horace Mann's senior management will discuss the company's fourth quarter and
full year performance, as well as 2013 operating income guidance, with
investors and analysts on February 6, 2013 at 9:00 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
Quarterly Report on Form 10-Q for the period ended September 30, 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                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
EARNINGS SUMMARY
Net income                $       $       -3.0%     $       $      47.4%
                          31.9     32.9               103.9   70.5
  Net realized investment 4.0      3.3      21.2%     17.6     24.4     -27.9%
  gains, after tax
Operating income (B)      27.9     29.6     -5.7%     86.3     46.1     87.2%
Per diluted share:
  Net income              $       $       -2.5%     $      $      47.6%
                          0.77     0.79               2.51    1.70
      Net realized        $       $                 $      $  
      investment gains,   0.10     0.08     25.0%     0.43    0.59    -27.1%
      after tax
  Operating income (B)    $       $       -5.6%     $      $      87.4%
                          0.67     0.71               2.08    1.11
Weighted average number
of shares
  and equivalent shares   41.3     41.4     -0.2%     41.4     41.4     -
  (in millions) - Diluted
Return on equity (C)                                  9.0%     7.5%     N.M.
OPERATIONS
Insurance premiums                                    $        $
written and contract      $ 279.5  $ 276.1  1.2%      1,067.7  1,078.4  -1.0%
deposits
Property & Casualty       92.4%    92.4%    -         98.3%    106.6%   N.M.
combined ratio
Property & Casualty
combined ratio excluding
  the effects of
  catastrophe costs and
  prior years'
  reserve development
  ("underlying combined   94.5%    92.4%    N.M.      93.5%    92.8%    N.M.
  ratio") (B)
FINANCIAL POSITION
Per share (D):
  Book value                                          $       $       19.3%
                                                      31.65   26.53
      Effect of the fair                              $      $  
      value adjustment                                9.72    6.74    44.2%
      for investments (E)
  Book value excluding
  the fair value                                      $       $       10.8%
  adjustment for                                      21.93   19.79
  investments (B)
  Dividends paid          $       $       23.1%     $      $      19.6%
                          0.16     0.13               0.55    0.46
Ending number of shares
outstanding (in millions)                             39.4     39.8     -1.0%
(D)
Total assets                                          $        $        9.9%
                                                      8,167.7  7,435.2
Short-term debt                                       38.0     38.0     -
Long-term debt                                        199.8    199.7    0.1%
Total shareholders'                                   1,245.8  1,055.4  18.0%
equity
ADDITIONAL INFORMATION
Exclusive agencies (F)                                624      549      13.7%
Employee agents (G)                                   136      196      -30.6%
  Total                                               760      745      2.0%
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.
         Ending shares outstanding were 39,367,862 at
(D)      December 31, 2012 and 39,775,432 at December 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.
- 1 -
HORACE MANN EDUCATORS CORPORATION
Statements of Operations and Supplemental Consolidated Data (Unaudited)
(Dollars in Millions)
                          Three Months                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
STATEMENTS OF OPERATIONS
Insurance premiums and    $ 170.8  $ 167.0  2.3%      $       $       0.5%
contract charges earned                               670.5   667.1
Net investment income     77.3     74.6     3.6%      306.0    288.3    6.1%
Net realized investment   6.2      5.0      24.0%     27.3     37.7     -27.6%
gains
Other income              1.1      1.0      10.0%     7.0      5.2      34.6%
      Total revenues      255.4    247.6    3.2%      1,010.8  998.3    1.3%
Benefits, claims and      103.3    103.6    -0.3%     448.2    502.4    -10.8%
settlement expenses
Interest credited         41.8     39.9     4.8%      163.6    154.9    5.6%
Policy acquisition        19.0     18.7     1.6%      79.5     83.4     -4.7%
expenses amortized
Operating expenses        41.6     39.6     5.1%      156.1    148.7    5.0%
Interest expense          3.5      3.6      -2.8%     14.2     14.0     1.4%
      Total benefits,     209.2    205.4    1.9%      861.6    903.4    -4.6%
      losses and expenses
Income before income      46.2     42.2     9.5%      149.2    94.9     57.2%
taxes
  Income tax expense      14.3     9.3      53.8%     45.3     24.4     85.7%
Net income                $       $       -3.0%     $       $      47.4%
                          31.9     32.9               103.9   70.5
ANALYSIS OF PREMIUMS
WRITTEN
 AND CONTRACT
DEPOSITS __
Property & Casualty
  Automobile and property $ 135.8  $ 132.1  2.8%      $       $       1.0%
  (voluntary)                                         547.2   542.0
  Involuntary and other   1.4      1.6      -12.5%    3.6      3.9      -7.7%
  property & casualty
      Total Property &    137.2    133.7    2.6%      550.8    545.9    0.9%
      Casualty
Annuity deposits          114.7    115.0    -0.3%     417.6    433.9    -3.8%
Life                      27.6     27.4     0.7%      99.3     98.6     0.7%
      Total               $ 279.5  $ 276.1  1.2%      $        $        -1.0%
                                                      1,067.7  1,078.4
ANALYSIS OF SEGMENT NET
INCOME (LOSS)
Property & Casualty       $       $       -16.7%    $      $     N.M.
                          14.5     17.4               37.1    5.9
Annuity                   11.1     10.4     6.7%      40.5     30.9     31.1%
Life                      5.7      5.7      -         21.9     19.4     12.9%
Corporate and other (B)   0.6      (0.6)    N.M.      4.4      14.3     -69.2%
  Net income              31.9     32.9     -3.0%     103.9    70.5     47.4%
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.
- 2 -
HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited)
(Dollars in Millions)
                          Three Months                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
PROPERTY & CASUALTY
Premiums written          $ 137.2  $ 133.7  2.6%      $       $       0.9%
                                                      550.8   545.9
Premiums earned           138.8    137.0    1.3%      546.3    547.5    -0.2%
Net investment income     9.6      9.5      1.1%      36.8     36.9     -0.3%
Other income              -        -        -         1.5      0.3      N.M.
Losses and loss           89.1     89.9     -0.9%     389.4    442.5    -12.0%
adjustment expenses (LAE)
Operating expenses
(includes policy
  acquisition expenses    39.1     36.9     6.0%      147.3    141.6    4.0%
  amortized)
Income before tax         20.2     19.7     2.5%      47.9     0.6      N.M.
Net income                14.5     17.4     -16.7%    37.1     5.9      N.M.
Net investment income,    8.0      8.1      -1.2%     31.1     31.4     -1.0%
after tax
Catastrophe costs, after  1.9      3.1      -38.7%    28.2     55.9     -49.6%
tax (B)
  Catastrophe losses and  2.8      4.7      -40.4%    43.3     86.0     -49.7%
  LAE, before tax
  Reinsurance
  reinstatement premiums, -        -        -         -        -        -
  before tax
Prior years' reserves
favorable (adverse)
  development, pretax
      Voluntary           $      $      178.9%    $      $     152.6%
      automobile          5.3      1.9                14.4    5.7
      Total property      0.4      2.7      -85.2%    2.8      4.6      -39.1%
      Other property and  -        -        -         -        -        -
      casualty
         Total            5.7      4.6      23.9%     17.2     10.3     67.0%
Operating statistics:
  Loss and loss
  adjustment expense      64.2%    65.6%    N.M.      71.3%    80.8%    N.M.
  ratio
  Expense ratio           28.2%    26.8%    N.M.      27.0%    25.8%    N.M.
  Combined ratio          92.4%    92.4%    -         98.3%    106.6%   N.M.
      Effect on the
      combined ratio of:
         Catastrophe      2.0%     3.4%     N.M.      8.0%     15.7%    N.M.
         costs (B)
         Prior years'
         reserve          -4.1%    -3.4%    N.M.      -3.2%    -1.9%    N.M.
         development
  Combined ratio
  excluding the effects
  of catastrophe
      costs and prior
      years' reserve
      development
      ("underlying
      combined ratio")    94.5%    92.4%    N.M.      93.5%    92.8%    N.M.
      (C)
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                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
PROPERTY & CASUALTY -
continued
Additional Operating
Information
Automobile and property
detail:
  Premiums written        $ 135.8  $ 132.1  2.8%      $       $       1.0%
  (voluntary) (B)                                     547.2   542.0
      Automobile          90.7     88.6     2.4%      360.3    359.9    0.1%
      Property            45.1     43.5     3.7%      186.9    182.1    2.6%
  Premiums earned         136.9    135.0    1.4%      542.6    544.1    -0.3%
  (voluntary) (B)
      Automobile          90.1     89.7     0.4%      357.1    363.0    -1.6%
      Property            46.8     45.3     3.3%      185.5    181.1    2.4%
  Policies in force
  (voluntary) (in                                     721      725      -0.6%
  thousands)
      Automobile                                      484      486      -0.4%
      Property                                        237      239      -0.8%
  Policy renewal rate
  (voluntary)
      Automobile (6                                   91.8%    90.5%    N.M.
      months)
      Automobile (12                                  84.7%    83.0%    N.M.
      months)
      Property (12                                    88.1%    85.6%    N.M.
      months)
  Voluntary automobile
  operating statistics:
      Loss and loss
      adjustment expense  72.5%    78.5%    N.M.      72.3%    74.0%    N.M.
      ratio
      Expense ratio       28.3%    27.4%    N.M.      27.3%    26.1%    N.M.
      Combined ratio      100.8%   105.9%   N.M.      99.6%    100.1%   N.M.
      Effect on the
      combined ratio of:
         Catastrophe      0.4%     0.3%     N.M.      1.4%     1.8%     N.M.
         costs (C)
         Prior years'
         reserve          -5.9%    -2.1%    N.M.      -4.0%    -1.6%    N.M.
         development
      Combined ratio
      excluding the
      effects of
      catastrophe
         costs and prior
         years' reserve
         development
         ("underlying
         combined ratio") 106.3%   107.7%   N.M.      102.2%   99.9%    N.M.
         (D)
  Total property
  operating statistics:
      Loss and loss
      adjustment expense  47.3%    40.2%    N.M.      68.6%    94.3%    N.M.
      ratio
      Expense ratio       28.1%    26.1%    N.M.      26.4%    25.4%    N.M.
      Combined ratio      75.4%    66.3%    N.M.      95.0%    119.7%   N.M.
      Effect on the
      combined ratio of:
         Catastrophe      5.1%     9.6%     N.M.      20.6%    44.0%    N.M.
         costs (C)
         Prior years'
         reserve          -0.8%    -5.8%    N.M.      -1.5%    -2.6%    N.M.
         development
      Combined ratio
      excluding the
      effects of
      catastrophe
         costs and prior
         years' reserve
         development
         ("underlying
         combined ratio") 71.1%    62.5%    N.M.      75.9%    78.3%    N.M.
         (D)
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                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
ANNUITY
Contract deposits         $ 114.7  $ 115.0  -0.3%     $       $       -3.8%
                                                      417.6   433.9
  Variable                30.0     28.0     7.1%      113.2    109.0    3.9%
  Fixed                   84.7     87.0     -2.6%     304.4    324.9    -6.3%
Contract charges earned   5.8      4.5      28.9%     21.8     18.9     15.3%
Net investment income     50.8     47.8     6.3%      200.8    182.8    9.8%
Net interest margin
(without realized         19.7     18.3     7.7%      79.4     69.2     14.7%
investment gains and
losses)
Other income              0.3      0.3      -         2.7      2.3      17.4%
Mortality loss and other  (1.0)    (0.3)    N.M.      (3.3)    (1.9)    N.M.
reserve changes
Operating expenses
(includes policy
  acquisition expenses    9.2      8.4      9.5%      41.0     44.1     -7.0%
  amortized)
Income before tax         15.6     14.4     8.3%      59.6     44.4     34.2%
Net income                11.1     10.4     6.7%      40.5     30.9     31.1%
Pretax income increase
(decrease) due to
  evaluation of:
      Deferred policy     $      $      13.6%     $     $      N.M.
      acquisition costs   2.5      2.2                3.8     (2.5)
      Guaranteed minimum
      death benefit       -        0.1      -100.0%   0.2      (0.3)    N.M.
      reserve
Annuity contracts in                                  189      184      2.7%
force (in thousands)
Accumulated value on                                  $        $
deposit / Assets under                                4,762.5  4,335.5  9.8%
management
  Variable                                            1,398.3  1,273.8  9.8%
  Fixed                                               3,364.2  3,061.7  9.9%
Annuity accumulated value
retention - 12 months
  Variable accumulations                              94.3%    93.5%    N.M.
  Fixed accumulations                                 95.4%    94.9%    N.M.
LIFE
Premiums and contract     $       $       0.7%      $      $      0.7%
deposits                  27.6     27.4               99.3    98.6
Premiums and contract     26.2     25.5     2.7%      102.4    100.7    1.7%
charges earned
Net investment income     17.2     17.6     -2.3%     69.4     69.6     -0.3%
Income before tax         8.8      8.7      1.1%      34.2     30.8     11.0%
Net income                5.7      5.7      -         21.9     19.4     12.9%
Pretax income increase
(decrease) due to
  evaluation of:
      Deferred policy     $       $       -28.6%    $      $      -33.3%
      acquisition costs   (0.5)    (0.7)             (0.8)   (1.2)
Life policies in force                                202      204      -1.0%
(in thousands)
Life insurance in force                               $        $        3.3%
                                                      14,632  14,161
Lapse ratio - 12 months
  (Ordinary life                                      4.2%     4.7%     N.M.
  insurance)
CORPORATE AND OTHER (B)
Components of income
(loss) before tax:
  Net realized investment $      $      24.0%     $      $      -27.6%
  gains                   6.2      5.0                27.3    37.7
  Interest expense        (3.5)    (3.6)    -2.8%     (14.2)   (14.0)   1.4%
  Other operating
  expenses, net
  investment income
      and other income    (1.1)    (2.0)    -45.0%    (5.6)    (4.6)    21.7%
Income (loss) before tax  1.6      (0.6)    N.M.      7.5      19.1     -60.7%
Net income (loss)         0.6      (0.6)    N.M.      4.4      14.3     -69.2%
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                Year Ended
                          Ended
                          December 31,                December 31,
                          2012     2011     % Change  2012     2011     %
                                   (A)                         (A)      Change
INVESTMENTS
Annuity and Life
  Fixed maturities, at
  fair value (amortized
      cost 2012,                                      $        $
      $4,543.3; 2011,                                5,129.9  4,621.1  11.0%
      $4,225.1)
  Equity securities, at
  fair value
      (cost 2012, $6.6;                              6.5      10.7     -39.3%
      2011, $9.7)
  Short-term investments                              49.3     56.7     -13.1%
  Short-term investments,
  securities
      lending collateral                              -        -        -
  Policy loans                                        135.0    128.5    5.1%
  Other investments                                   53.8     -        N.M.
         Total Annuity
         and Life                                     5,374.5  4,817.0  11.6%
         investments
Property & Casualty
  Fixed maturities, at
  fair value (amortized
      cost 2012, $768.1;                             832.3    800.7    3.9%
      2011, $759.3)
  Equity securities, at
  fair value
      (cost 2012, $45.8;                             47.0     16.1     191.9%
      2011, $13.4)
  Short-term investments                              8.9      25.1     -64.5%
  Short-term investments,
  securities
      lending collateral                              -        -        -
         Total Property &
         Casualty                                     888.2    841.9    5.5%
         investments
Corporate investments                                 29.4     18.6     58.1%
         Total                                        6,292.1  5,677.5  10.8%
         investments
Net investment income
  Before tax              $       $       3.6%      $       $       6.1%
                          77.3     74.6               306.0   288.3
  After tax               52.0     50.4     3.2%      206.1    194.8    5.8%
Net realized investment
gains
by investment portfolio
included in the
Corporate and Other
segment income
  Property & Casualty     $      $      16.7%     $      $      -
                          3.5      3.0                12.2    12.2
  Annuity                 2.4      -        N.M.      10.7     12.3     -13.0%
  Life                    0.3      2.0      -85.0%    4.4      13.2     -66.7%
  Corporate and Other     -        -        -         -        -        -
      Total, before tax   6.2      5.0      24.0%     27.3     37.7     -27.6%
      Total, after tax    4.0      3.3      21.2%     17.6     24.4     -27.9%
         Per share,       $       $       25.0%     $      $      -27.1%
         diluted          0.10     0.08               0.43    0.59
N.M. - Not meaningful.
- 6 -

SOURCE Horace Mann Educators Corporation

Website: http://www.horacemann.com
Contact: Ryan Greenier, Vice President, Investor Relations, +1-217-788-5738
 
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