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Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Registrant
SCHEDULE II
 
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
BALANCE SHEETS
As of December 31, 2015 and 2014
(Dollars in thousands, except per share data)
 
 
 
 
December 31,
 
 
 
 
2015
 
 
 
2014
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
Investments and cash
 
$
13,237
 
 
$
28,640
 
Investment in subsidiaries
 
 
1,451,290
 
 
 
1,515,769
 
Other assets
 
 
60,114
 
 
 
58,365
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,524,641
 
 
$
1,602,774
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Short-term debt
 
$
-
 
 
$
38,000
 
Long-term debt, current and noncurrent
 
 
249,346
 
 
 
199,939
 
Other liabilities
 
 
10,634
 
 
 
28,372
 
 
 
 
 
 
 
 
 
 
Total liabilities
 
 
259,980
 
 
 
266,311
 
 
 
 
 
 
 
 
 
 
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, 2015, 64,537,554; 2014, 64,245,048
 
 
65
 
 
 
64
 
Additional paid-in capital
 
 
442,648
 
 
 
422,232
 
Retained earnings
 
 
1,116,277
 
 
 
1,065,318
 
Accumulated other comprehensive income (loss), net of taxes:
 
 
 
 
 
 
 
 
Net unrealized gains on fixed maturities
 
 
 
 
 
 
 
 
and equity securities
 
 
175,167
 
 
 
297,554
 
Net funded status of pension and other
 
 
 
 
 
 
 
 
postretirement benefit obligations
 
 
(11,794
)
 
 
(12,953
)
Treasury stock, at cost, 2015, 23,971,522 shares;
 
 
 
 
 
 
 
 
2014, 23,308,430 shares
 
 
(457,702
)
 
 
(435,752
)
 
 
 
 
 
 
 
 
 
Total shareholders' equity
 
 
1,264,661
 
 
 
1,336,463
 
 
 
 
 
 
 
 
 
 
Total liabilities and shareholders' equity
 
$
1,524,641
 
 
$
1,602,774
 
 
See accompanying Note to Condensed Financial Statements.
 
See accompanying Report of Independent Registered Public Accounting Firm.
 
SCHEDULE II
 
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
STATEMENTS OF OPERATIONS
 
(Dollars in thousands)
 
 
 
 
Year Ended December 31,
 
 
 
 
2015
 
 
 
2014
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
$
33
 
 
$
10
 
 
$
6
 
Realized investment gains
 
 
-
 
 
 
-
 
 
 
208
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
33
 
 
 
10
 
 
 
214
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
 
 
 
 
 
 
Interest
 
 
13,122
 
 
 
14,198
 
 
 
14,236
 
Debt retirement costs
 
 
2,338
 
 
 
-
 
 
 
-
 
Other
 
 
5,153
 
 
 
5,071
 
 
 
4,832
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total expenses
 
 
20,613
 
 
 
19,269
 
 
 
19,068
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss before income tax benefit
 
 
 
 
 
 
 
 
 
 
 
 
and equity in net earnings of subsidiaries
 
 
(20,580
)
 
 
(19,259
)
 
 
(18,854
)
Income tax benefit
 
 
(7,202
)
 
 
(6,734
)
 
 
(6,599
)
Loss before equity in net earnings of subsidiaries
 
 
(13,378
)
 
 
(12,525
)
 
 
(12,255
)
Equity in net earnings of subsidiaries
 
 
106,860
 
 
 
116,768
 
 
 
123,148
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
$
93,482
 
 
$
104,243
 
 
$
110,893
 
 
See accompanying Note to Condensed Financial Statements.
 
See accompanying Report of Independent Registered Public Accounting Firm.
 
SCHEDULE II
 
HORACE MANN EDUCATORS CORPORATION
(Parent Company Only)
 
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 
STATEMENTS OF CASH FLOWS
 
(Dollars in thousands)
 
 
 
 
Year Ended December 31,
 
 
 
 
2015
 
 
 
2014
 
 
 
2013
 
Cash flows - operating activities
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense paid
 
$
(13,521
)
 
$
(13,902
)
 
$
(13,825
)
Federal income taxes recovered
 
 
6,539
 
 
 
8,740
 
 
 
5,996
 
Cash dividends received from subsidiaries
 
 
50,000
 
 
 
46,000
 
 
 
41,000
 
Other, net, including settlement of payables to subsidiaries
 
 
(2,223
)
 
 
(188
)
 
 
(21,235
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
 
40,795
 
 
 
40,650
 
 
 
11,936
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows - investing activities
 
 
 
 
 
 
 
 
 
 
 
 
Net (increase) decrease in investments
 
 
15,402
 
 
 
(4,647
)
 
 
5,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) investing activities
 
 
15,402
 
 
 
(4,647
)
 
 
5,488
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows - financing activities
 
 
 
 
 
 
 
 
 
 
 
 
Dividends paid to shareholders
 
 
(42,523
)
 
 
(39,237
)
 
 
(32,550
)
Proceeds from issuance of Senior Notes due 2025
 
 
246,937
 
 
 
-
 
 
 
-
 
Redemption of Senior Notes due 2016
 
 
(127,292
)
 
 
-
 
 
 
-
 
Maturity of Senior Notes due 2015
 
 
(75,000
)
 
 
-
 
 
 
-
 
Principal repayment on Bank Credit Facility
 
 
(38,000
)
 
 
-
 
 
 
-
 
Acquisition of treasury stock
 
 
(21,950
)
 
 
(5,411
)
 
 
(3,889
)
Exercise of stock options
 
 
1,629
 
 
 
8,252
 
 
 
19,336
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash used in financing activities
 
 
(56,199
)
 
 
(36,396
)
 
 
(17,103
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash
 
 
(2
)
 
 
(393
)
 
 
321
 
Cash at beginning of period
 
 
77
 
 
 
470
 
 
 
149
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash at end of period
 
$
75
 
 
$
77
 
 
$
470
 
 
See accompanying Note to Condensed Financial Statements.
 
See accompanying Report of Independent Registered Public Accounting Firm.
  
SCHEDULE II
 
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.