EX-12 4 hm123117ex12.htm EXHIBIT 12 Exhibit


Exhibit 12
 
Horace Mann Educators Corporation
Statement Regarding Computation of Ratios
Computation of Ratio of Earnings to Fixed Charges
For the Years Ended December 31, 2017, 2016, 2015, 2014 and 2013
(Dollars in millions)
 
 
 
Year Ended December 31,
 
 
 
 
2017
 
 
 
2016
 
 
 
2015
 
 
 
2014
 
 
 
2013
 
 
Fixed charges:
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
Interest expense
 
$
11.9

 
 
 
$
11.8

 
 
 
$
13.1

 
 
 
$
14.2

 
 
 
$
14.2

 
 
Interest credited to policyholders on investment
contracts and life insurance products with
account values
 
198.6

 
 
 
192.0

 
 
 
182.8

 
 
 
176.1

 
 
 
169.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
 
$
210.5

 
 
 
$
203.8

 
 
 
$
195.9

 
 
 
$
190.3

 
 
 
$
184.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
Income before income taxes
 
$
88.7

 
 
 
$
114.2

 
 
 
$
129.5

 
 
 
$
146.1

 
 
 
$
154.1

 
 
Add: Interest expense
 
11.9

 
 
 
11.8

 
 
 
13.1

 
 
 
14.2

 
 
 
14.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Subtotal – earnings before interest expense
 
100.6

 
 
 
126.0

 
 
 
142.6

 
 
 
160.3

 
 
 
168.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add: Interest credited to policyholders on
investment contracts and life insurance
products with account values
 
198.6

 
 
 
192.0

 
 
 
182.8

 
 
 
176.1

 
 
 
169.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
 
$
299.2

 
 
 
$
318.0

 
 
 
$
325.4

 
 
 
$
336.4

 
 
 
$
338.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
1.4

x
 
1.6

x
 
1.7

x
 
1.8

x
 
1.8

x
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Supplemental information (A):
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before interest expense
to interest expense
 
8.5

x
 
10.7

x
 
10.9

x
 
11.3

x
 
11.9

x
 
(A)
Fixed charges and earnings in this calculation do not include interest credited to policyholders on investment contracts and life insurance products with account values. This adjusted coverage ratio is not required, but is provided as supplemental information because it is commonly used by individuals who analyze the Company’s results.