8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report: October 31, 2016

HORACE MANN EDUCATORS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-10890	37-0911756
(State of incorporation)	(Commission File Number)	(I.R.S. Employer
		Identification No.)

1 Horace Mann Plaza, Springfield, Illinois 62715-0001

(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: 217-789-2500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Forward-looking Information

Statements included in the accompanying press release that state Horace Mann Educators Corporation’s (the “Company”) or its management’s intentions, hopes, beliefs, expectations or predictions of future events or the Company’s future financial performance are forward-looking statements and involve known and unknown risks, uncertainties and other factors. 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. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Please refer to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2016 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.

Item 2.02: Results of Operations and Financial Condition

On October 31, 2016, Horace Mann Educators Corporation issued a press release reporting its financial results for the three and nine month periods ended September 30, 2016. A copy of the press release is attached as Exhibit 99.2 and is incorporated by reference herein.

The Company’s Investor Financial Supplement has been posted on the investors page of its website, investors.horacemann.com, and the Investor Presentation is anticipated to be posted there on November 1, 2016.

Item 9.01: Financial Statements and Exhibits

(d)	Exhibits.
	99.1	Glossary of Selected Terms

99.2 Press release dated October 31, 2016 reporting financial results for the three and nine month periods ended September 30, 2016.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HORACE MANN EDUCATORS CORPORATION
By:	/s/ Bret A. Conklin
	Name:	Bret A. Conklin
	Title:	Senior Vice President & Controller
		(Principal Accounting Officer)

Date: October 31, 2016

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EX-99.1

Exhibit 99.1

Glossary of Selected Terms

The following measures are used by the Company’s management to evaluate performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, may be considered non-GAAP financial measures under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statement of Operations or Consolidated Balance Sheet, and in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in a GAAP financial measure. In the opinion of the Company’s management, a discussion of these measures is meaningful to provide investors with an understanding of the significant factors that comprise the Company’s periodic results of operations and financial condition.

Agent - A licensed representative of an insurer in marketing insurance products.

· Exclusive Agency - A local Horace Mann agency created and owned by an independent contractor who has signed an Exclusive Agent agreement with the Company (an “Exclusive Agent”). That agreement states that only the Company’s products and limited additional third-party vendor products authorized by the Company will be marketed by the agency. An independent contractor may sign multiple Exclusive Agent agreements with the Company and/or manage more than one Exclusive Agency territory.

· Employee Agents - 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.

· Independent Agents - Non-exclusive independent contractors who are under contract with the Company to market the Company’s annuity products but who are not restricted to writing only the Company’s products and products authorized by the Company.

Book value per share excluding the fair value adjustment for investments - The result of dividing total shareholders’ equity excluding after tax net unrealized gains and losses on fixed maturities and equity securities, including the related effect on certain deferred policy acquisition costs and value of acquired insurance in force, by ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding unrealized net investment gains and losses in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company’s underlying insurance operations.

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Catastrophe costs - The sum of catastrophe losses and property and casualty catastrophe reinsurance reinstatement premiums.

Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports claims and claim expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their effects are not included in earnings or claim and claim expense reserves prior to occurrence. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

Insurance premiums written and contract deposits - Premiums written represent (1) the amount charged for policies issued during a fiscal period for property and casualty business, such amounts may be earned and included in financial results over future fiscal periods, and (2) the amount charged for policies in force during a fiscal period for traditional life and group life business. Amounts are reported net of reinsurance, unless otherwise specified. Contract deposits include amounts received from customers on deposit-type contracts, such as investment contracts (annuities) and life products with account values, including deposit amounts and any related contract or policy fees. Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating the business growth of its operating segments. Insurance premiums and contract charges earned is the most directly comparable GAAP measure.

Net Reserves - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables.

Operating income or Net income before realized investment gains and losses - Net income adjusted to exclude after tax realized investment gains and losses. Net income is the most directly comparable GAAP measure. Management believes the measure provides investors with a valuable measure of the Company’s ongoing performance because it reveals trends in the business that may be obscured by the net effect of realized investment gains and losses. Realized investment gains and losses may vary significantly between periods and are generally driven by business decisions and external economic developments that are unrelated to the insurance underwriting process. Operating income is used by management along with other components of net income to assess their performance and adjusted measures of operating income and operating income per diluted share are used in incentive compensation programs. Management believes that a projection of net income including after tax realized investment gains and losses is not appropriate on a forward-looking basis because it is not possible to provide a valid forecast of realized investment gains and losses, which can vary substantially from one period to another and may have a significant impact on net income.

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Prior Years’ Reserve Development - A measure which the Company reports for its property and casualty segment which identifies the increase or decrease in net incurred claim and claim expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of the Company’s management, a discussion of prior years’ loss reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years.

Property and casualty operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results.

· Loss Ratio or Loss and Loss Adjustment Expense Ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net earned premiums.

· Expense Ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs to (2) net earned premiums.

· Combined Ratio - The sum of the Loss Ratio and the Expense Ratio. A Combined Ratio less than 100% generally indicates profitable underwriting prior to the consideration of investment income.

· Combined Ratio Excluding Catastrophes and Prior Years’ Reserve Development or Underlying Combined Ratio - The sum of the Loss Ratio and the Expense Ratio adjusted to remove the effect of catastrophe costs and prior years’ reserve development. The Combined Ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company’s underlying underwriting performance that may be obscured by the effects of catastrophe costs and prior years’ reserve development, the amounts of which may be significant and may vary significantly between periods.

Return on equity - The ratio of (1) trailing 12 month net income to (2) the average of ending shareholders’ equity for the current quarter end and the preceding four quarter ends.

Sales or Annualized New Sales - Sales represent the amount of new business sold during the period and exclude renewal of policies sold in previous periods. Sales are measured by the Company as premiums and deposits to be collected over the 12 months following the sale of a new policy for annuity, life, automobile and homeowners business, as well as increases in contributions to annuity and certain life business, and this time period may extend into the following calendar year. In addition, the Company may disclose new policy count (units) information for automobile and homeowners business. Sales data pertains to Horace Mann products and excludes authorized products sold by Exclusive Agents, Employee Agents, and their licensed staff which are underwritten by third-party vendors. Sales should not be viewed as a substitute for any financial measure determined in accordance with GAAP, including "sales" as it relates to non-insurance companies, and the Company’s definition of sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends.

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EX-99.2

Exhibit 99.2

[Horace Mann Educators Corporation logo]

Contact information:

Ryan Greenier, Vice President, Investor Relations

217-788-5738

HORACE MANN REPORTS THIRD QUARTER 2016

NET INCOME PER SHARE OF $0.65; OPERATING EPS OF $0.58

· Third quarter net income increased 23%, driven primarily by strong investment results

· Sales increased in all lines for the quarter

· Book value per share excluding the fair value adjustment for investments of $27.54, up 4% compared to a year ago

SPRINGFIELD, Ill., October 31, 2016 — Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the three and nine months ended September 30, 2016:

Horace Mann Financial Highlights
	Three months ended September 30,			Nine months ended September 30,
($ in millions, except per share amounts)	2016	2015	Change	2016	2015	Change
Total revenues	$291.3	$265.7	9.6%	$846.1	$804.3	5.2%
Net income	26.9	21.9	22.8%	63.9	72.4	-11.7%
Net income per diluted share	0.65	0.52	25.0%	1.55	1.71	-9.4%
Operating income*	24.2	21.2	14.2%	60.1	66.9	-10.2%
Operating income per diluted share*	0.58	0.50	16.0%	1.45	1.58	-8.2%
Book value per share				35.94	32.09	12.0%
Book value per share excluding the fair value adjustment for investments*				27.54	26.52	3.8%
Property and Casualty segment net income	6.7	11.2	-40.2%	16.0	32.1	-50.2%
Property and Casualty combined ratio	101.5%	95.4%	6.1 pts	102.4%	96.5%	5.9 pts
Property and Casualty underlying combined ratio*	96.6%	93.9%	2.7 pts	92.8%	90.5%	2.3 pts
Annuity segment net income	$  15.7	$   8.7	80.5%	$  39.3	$  33.0	19.1%
Life segment net income	4.6	3.6	27.8%	13.1	10.6	23.6%

* 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.

N.M. - Not meaningful.

“Horace Mann’s third quarter operating income was $0.58 per diluted share. Each of our segments reflected an increase in investment income, and the annuity net interest spread improved in the quarter. Property and casualty results in the quarter were impacted by adverse weather, resulting in an elevated level of catastrophe and non-catastrophe losses. Sales results were strong, with increases across all four of our product lines,” said Horace Mann’s President and CEO Marita Zuraitis.

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“We are revising our estimate of full-year 2016 operating income to between $1.80 and $1.90 per share to incorporate third quarter results, as well as our current pretax estimate, $9 million to $11 million, of catastrophe losses related to Hurricane Matthew. In addition, we updated our guidance to include the elevated automobile loss severity and frequency trends,” stated Zuraitis.

Property and Casualty Segment

For the third quarter of 2016, property and casualty recorded net income of $6.7 million compared to $11.2 million for the same period in the prior year. The total property and casualty combined ratio of 101.5% increased 6.1 points compared to a year earlier. Catastrophe losses of $8.4 million pretax were $3.4 million higher than the third quarter of 2015, representing 1.9 points of the combined ratio increase. Prior years’ reserves continue to develop favorably; however, the favorable development in the current quarter was $2.1 million pretax lower than the amount a year ago, representing 1.5 points of the combined ratio increase. On an underlying basis, the auto loss ratio of 77.7% increased 1.1 points compared to a year earlier, primarily as a result of elevated auto loss frequencies. Despite a 3.9 point increase in the underlying property loss ratio, the current quarter’s result of 52.9% was strong; the increase reflected the impact of higher weather-related loss frequencies, partially offset by lower reinsurance costs. The total property and casualty expense ratio increased modestly compared to the third quarter of 2015, as anticipated. For both the three and nine months, property and casualty investment income improved by approximately $3 million.

For the first nine months of 2016, property and casualty net income of $16.0 million decreased $16.1 million compared to the prior year. The current period total property and casualty combined ratio of 102.4% increased 5.9 points compared to a year ago, including an underlying loss ratio that increased 1.4 points compared to the prior year, as well as a slightly higher expense ratio. Catastrophe losses were $11.6 million higher than the first nine months of 2015; favorable prior years’ reserve development was $5.7 million less than the prior year amount. On an underlying basis, the nine month auto loss ratio of 76.5% increased 3.1 points compared to a year earlier. For property, the underlying loss ratio was 43.6% for the current year, 2.3 points lower than the first nine months of 2015.

Compared to the first nine months of 2015, the property and casualty expense ratio of 27.2% increased 0.9 points, primarily due to a reduction in incentive compensation accruals recorded in the first quarter of 2015. The majority of that 2015 cost reduction benefited the property and casualty segment, increasing that segment’s net income by approximately $2 million and decreasing the combined ratio by approximately 1 percentage point for the nine months ended September 30, 2015.

Total property and casualty written premiums of $169.8 million and $476.3 million for the three and nine months ended September 30, 2016, respectively, each increased 5% compared to the prior year. The growth was driven primarily by increases in average premium per policy for both auto and property, accompanied by an increase in auto policies in force and reductions in catastrophe reinsurance costs.

Total property and casualty sales increased 3% and 7% compared to the three and nine months ended September 30, 2015, respectively. Auto sales increased 3% for the current quarter and 8% for the nine months compared to the prior year periods, while property sales increased 2% and 4% for the respective periods. Policy retention continues to be strong with auto and property policy retention rates for the current period at 84% and 88%, respectively.

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Annuity Segment

For the three and nine months ended September 30, 2016, annuity segment net income of $15.7 million and $39.3 million, respectively, increased $7.0 million and $6.3 million compared to the prior year periods. In the current year, both periods reflected an increase in the net interest margin partially offset by an increase in operating expenses including costs related to the company’s continued modernization of technology and infrastructure. And, in the current year, the impact of unlocking deferred policy acquisition costs had a minimal impact on pretax income compared to the $1.9 million decrease to pretax income recorded in both the three and nine months ended September 30, 2015. The annuity segment also benefited from a reduction in income tax of approximately $1.5 million related to the filing of the prior calendar year tax return.

The nine month 2016 annualized net interest spread on fixed annuity assets was 195 basis points. This measure increased 10 basis points from a year ago, which reflected an increase in investment prepayments and favorable returns on alternative investments, offset somewhat by the impact of the continued low interest rate environment. Total annuity assets under management of $6.3 billion increased 8% compared to September 30, 2015, and total cash value persistency remained strong at approximately 95%.

For the three months ended September 30, 2016, annuity deposits of $154.6 million increased 11% compared to the prior year period, while annuity deposits of $391.9 million for the current nine months decreased 7% compared to a year ago. The majority of the decline in annuity deposits for the current nine months was due to an elevated level of non-recurring deposits in the first half of 2015 related to changes in the company’s employee retirement savings plans.

Horace Mann’s total annuity sales increased 11% for the current quarter and decreased 4% compared to the nine months ended September 30, 2015, with the year-to-date change primarily reflecting reductions in single premium and rollover deposits, largely related to the company’s employee retirement savings plans, as well as a modest decrease in recurring deposit business for the nine months.

Life Segment

Life segment net income of $4.6 million and $13.1 million for the current three and nine months, respectively, increased $1.0 million and $2.5 million compared to the respective periods in 2015, primarily attributable to increases in investment income, as well as a year to date decrease in mortality losses in 2016, compared to the prior year periods.

In 2016, life segment insurance premiums and contract deposits of $27.2 million for the current quarter and $78.4 million for the nine months increased 9% and 6% compared to the respective periods in 2015. Life sales of $3.6 million increased $1.0 million compared to the third quarter of 2015, including an increase of $0.6 million for single premium sales, which included the company’s new Indexed Universal Life product. Similarly, the year to date sales of $10.7 million increased $3.3 million with $2.3 million of the increase attributable to single premium sales. Life persistency of 96% was comparable to 12 months earlier.

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Investment Results

Total net investment income increased 17% and 9% compared to the three and nine months ended September 30, 2015, respectively. While asset balances in the annuity segment continued to grow, overall investment results reflected the increase in investment prepayment activity and favorable returns on alternative investments, partially offset by the impact of the current low interest rate environment. Pretax net realized investment gains were $4.0 million and $6.9 million for the three and nine months ended September 30, 2016, respectively.

Horace Mann’s net unrealized investment gains on fixed maturity and equity securities were $599.3 million at September 30, 2016, compared to net unrealized gains of $584.1 million at June 30, 2016 and $309.8 million at December 31, 2015. Net unrealized gains were $403.2 million at September 30, 2015.

Webcast Conference Call

Horace Mann’s senior management will discuss the company’s third quarter financial results with investors and analysts on November 1, 2016 at 9:00 a.m. Eastern Time. The conference call will be webcast live on the Internet at investors.horacemann.com and archived later in the day for replay.

Horace Mann — the largest national multiline insurance company focusing on educators' financial needs — provides auto, homeowners and life insurance, retirement products 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 June 30, 2016 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.

# # #

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HORACE MANN EDUCATORS CORPORATION

Financial Highlights (Unaudited)

(Dollars in Millions, Except Per Share Data)

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2016		2015		% Change			2016			2015			% Change
EARNINGS SUMMARY
Net income	$	26.9	$	21.9		22.8	%	$	63.9		$	72.4			-11.7	%
Net realized investment gains, after tax (see below)		2.7		0.7		N.M.			3.8			5.5			-30.9	%
Operating income (A)		24.2		21.2		14.2	%		60.1			66.9			-10.2	%
Per diluted share:
Net income	$	0.65	$	0.52		25.0	%	$	1.55		$	1.71			-9.4	%
Net realized investment gains, after tax (see below)	$	0.07	$	0.02		N.M.		$	0.10		$	0.13			-23.1	%
Operating income (A)	$	0.58	$	0.50		16.0	%	$	1.45		$	1.58			-8.2	%
Weighted average number of shares  and equivalent shares (in millions) - Diluted		41.3		42.3		-2.4	%		41.4			42.4			-2.4	%
RETURN ON EQUITY
Net income return on equity (B)									6.3	%		7.7	%		N.M.
Operating income return on equity excluding the fair value adjustment for investments (A) (C)									7.2	%		9.0	%		N.M.
FINANCIAL POSITION
Per share (D):
Book value								$	35.94		$	32.09			12.0	%
Effect of the fair value adjustment for investments (E)								$	8.40		$	5.57			50.8	%
Book value excluding the fair value adjustment for investments (A)								$	27.54		$	26.52			3.8	%
Dividends paid	$	0.265	$	0.250		6.0	%	$	0.795		$	0.750			6.0	%
Ending number of shares outstanding (in millions) (D)									40.2			40.7			-1.2	%
Total assets								$	10,691.1		$	9,903.5			8.0	%
Short-term debt									-			113.0			-100.0	%
Long-term debt, current and noncurrent									247.1			125.0			97.7	%
Total shareholders' equity									1,444.1			1,307.2			10.5	%
ADDITIONAL INFORMATION
Net realized investment gains
Before tax	$	4.0	$	1.3		N.M.		$	6.9		$	8.8			-21.6	%
After tax		2.7		0.7		N.M.			3.8			5.5			-30.9	%
Per share, diluted	$	0.07	$	0.02		N.M.		$	0.10		$	0.13			-23.1	%

N.M. - Not meaningful.

(A) 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.

(B) Based on trailing 12-month net income and average quarter-end shareholders' equity.

(C) Based on trailing 12-month operating income and average quarter-end shareholders' equity which has been adjusted to exclude the fair value adjustment for investments, net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.

(D) Ending shares outstanding were 40,182,965 at September 30, 2016 and 40,741,071 at September 30, 2015.

(E) Net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.

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HORACE MANN EDUCATORS CORPORATION

Statements of Operations and Supplemental Consolidated Data (Unaudited)

(Dollars in Millions)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2016			2015			% Change			2016			2015			% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	191.1		$	182.8			4.5	%	$	564.9		$	544.9			3.7	%
Net investment income		94.9			81.0			17.2	%		270.7			248.3			9.0	%
Net realized investment gains		4.0			1.3			N.M.			6.9			8.8			-21.6	%
Other income		1.3			0.6			116.7	%		3.6			2.3			56.5	%
Total revenues		291.3			265.7			9.6	%		846.1			804.3			5.2	%
Benefits, claims and settlement expenses		135.7			121.1			12.1	%		403.6			368.1			9.6	%
Interest credited		48.6			46.2			5.2	%		142.9			136.1			5.0	%
Policy acquisition expenses amortized		24.5			25.7			-4.7	%		73.1			73.4			-0.4	%
Operating expenses		44.5			39.7			12.1	%		130.6			115.6			13.0	%
Interest expense		3.0			2.6			15.4	%		8.9			9.6			-7.3	%
Total benefits, losses and expenses		256.3			235.3			8.9	%		759.1			702.8			8.0	%
Income before income taxes		35.0			30.4			15.1	%		87.0			101.5			-14.3	%
Income tax expense		8.1			8.5			-4.7	%		23.1			29.1			-20.6	%
Net income	$	26.9		$	21.9			22.8	%	$	63.9		$	72.4			-11.7	%
PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty	$	169.8		$	162.0			4.8	%	$	476.3		$	455.0			4.7	%
Annuity deposits		154.6			139.3			11.0	%		391.9			422.2			-7.2	%
Life		27.2			24.9			9.2	%		78.4			74.1			5.8	%
Total	$	351.6		$	326.2			7.8	%	$	946.6		$	951.3			-0.5	%
SEGMENT NET INCOME (LOSS)
Property & Casualty	$	6.7		$	11.2			-40.2	%	$	16.0		$	32.1			-50.2	%
Annuity		15.7			8.7			80.5	%		39.3			33.0			19.1	%
Life		4.6			3.6			27.8	%		13.1			10.6			23.6	%
Corporate and other (A)		(0.1	)		(1.6	)		-93.8	%		(4.5	)		(3.3	)		36.4	%
Net income	$	26.9		$	21.9			22.8	%	$	63.9		$	72.4			-11.7	%

N.M. - Not meaningful.

(A) 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 4.

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HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2016			2015			% Change			2016			2015			% Change
PROPERTY & CASUALTY
Premiums written	$	169.8		$	162.0			4.8	%	$	476.3		$	455.0			4.7	%
Premiums earned		155.7			149.2			4.4	%		461.5			443.6			4.0	%
Net investment income		10.0			7.4			35.1	%		29.0			25.8			12.4	%
Other income		0.4			-			N.M.			0.8			0.2			N.M.
Losses and loss adjustment expenses (LAE)		116.0			102.7			13.0	%		347.0			311.4			11.4	%
Operating expenses (includes policy acquisition expenses amortized)		42.0			39.8			5.5	%		125.3			116.7			7.4	%
Income before tax		8.1			14.1			-42.6	%		19.0			41.5			-54.2	%
Net income		6.7			11.2			-40.2	%		16.0			32.1			-50.2	%
Net investment income, after tax		7.9			6.5			21.5	%		23.2			21.9			5.9	%
Catastrophe costs (A)
After tax		5.5			3.3			66.7	%		31.5			23.9			31.8	%
Before tax		8.4			5.0			68.0	%		48.4			36.8			31.5	%
Prior years' reserves favorable (adverse) development, before tax
Automobile		-			1.5			-100.0	%		-			4.2			-100.0	%
Property		0.7			1.3			-46.2	%		4.3			4.6			-6.5	%
Other liability		-			-			-			-			1.2			-100.0	%
Total		0.7			2.8			-75.0	%		4.3			10.0			-57.0	%
Operating statistics:
Loss and loss adjustment expense ratio		74.5	%		68.8	%		N.M.			75.2	%		70.2	%		N.M.
Expense ratio		27.0	%		26.6	%		N.M.			27.2	%		26.3	%		N.M.
Combined ratio		101.5	%		95.4	%		N.M.			102.4	%		96.5	%		N.M.
Effect on the combined ratio of:
Catastrophe costs (A)		5.3	%		3.4	%		N.M.			10.5	%		8.3	%		N.M.
Prior years' reserve development		-0.4	%		-1.9	%		N.M.			-0.9	%		-2.3	%		N.M.
Combined ratio excluding the effects of catastrophe costs and prior years' reserve development ("underlying combined ratio") (B)		96.6	%		93.9	%		N.M.			92.8	%		90.5	%		N.M.
Policies in force (voluntary) (in thousands)											707			710			-0.4	%
Automobile											486			485			0.2	%
Property											221			225			-1.8	%
Policy renewal rate (voluntary) - 12 months
Automobile											83.5	%		84.8	%		N.M.
Property											87.8	%		88.1	%		N.M.

N.M. - Not meaningful.

(A) Includes allocated loss adjustment expenses and, when applicable, catastrophe reinsurance reinstatement premiums.

For the periods presented, there were no reinsurance reinstatement premiums.

(B) This measure is not based on accounting principles generally accepted in the United States ("non-GAAP").

See footnote (A) on page 1 of these supplemental numerical pages.

- 3 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
	2016			2015			% Change			2016			2015			% Change
ANNUITY
Contract deposits	$	154.6		$	139.3			11.0	%	$	391.9		$	422.2			-7.2	%
Variable		37.7			37.3			1.1	%		117.6			132.6			-11.3	%
Fixed		116.9			102.0			14.6	%		274.3			289.6			-5.3	%
Contract charges earned		6.4			6.6			-3.0	%		18.6			19.3			-3.6	%
Net investment income		66.3			56.2			18.0	%		187.0			169.8			10.1	%
Interest credited		37.4			35.1			6.6	%		109.4			103.0			6.2	%
Net interest margin (without realized investment gains/losses)		28.9			21.1			37.0	%		77.6			66.8			16.2	%
Other income		0.5			0.4			25.0	%		2.0			1.5			33.3	%
Mortality loss and other reserve changes		(1.4	)		(1.0	)		40.0	%		(3.1	)		(1.9	)		63.2	%
Operating expenses (includes policy acquisition expenses amortized)		14.1			14.1			-			41.3			37.4			10.4	%
Income before tax		20.3			13.0			56.2	%		53.8			48.3			11.4	%
Net income		15.7			8.7			80.5	%		39.3			33.0			19.1	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	0.1		$	(1.9	)		N.M.		$	(0.6	)	$	(1.9	)		-68.4	%
Guaranteed minimum death benefit reserve		-			(0.1	)		-100.0	%		-			(0.1	)		-100.0	%
Annuity contracts in force (in thousands)											215			207			3.9	%
Accumulated account value on deposit / Assets under management										$	6,322.8		$	5,879.1			7.5	%
Variable											1,873.6			1,742.0			7.6	%
Fixed											4,449.2			4,137.1			7.5	%
Annuity accumulated value retention - 12 months
Variable accumulations											94.6	%		94.1	%		N.M.
Fixed accumulations											94.6	%		94.8	%		N.M.
LIFE
Premiums and contract deposits	$	27.2		$	24.9			9.2	%	$	78.4		$	74.1			5.8	%
Premiums and contract charges earned		29.0			27.0			7.4	%		84.8			82.0			3.4	%
Net investment income		18.8			17.7			6.2	%		55.3			53.4			3.6	%
Other income		0.3			0.1			N.M.			0.6			0.5			20.0	%
Death benefits/mortality cost/change in reserves		18.3			17.4			5.2	%		53.5			54.8			-2.4	%
Interest credited		11.2			11.1			0.9	%		33.5			33.1			1.2	%
Operating expenses (includes policy acquisition expenses amortized)		11.5			10.7			7.5	%		33.4			31.5			6.0	%
Income before tax		7.1			5.6			26.8	%		20.3			16.5			23.0	%
Net income		4.6			3.6			27.8	%		13.1			10.6			23.6	%
Pretax income increase (decrease) due to evaluation of:
Deferred policy acquisition costs	$	-		$	-			-		$	0.2		$	0.1			100.0	%
Life policies in force (in thousands)											198			201			-1.5	%
Life insurance in force										$	16,864		$	16,312			3.4	%
Lapse ratio - 12 months
(Ordinary life insurance)											4.1	%		4.0	%		N.M.
CORPORATE AND OTHER (A)
Components of income (loss) before tax:
Net realized investment gains	$	4.0		$	1.3			207.7	%	$	6.9		$	8.8			-21.6	%
Interest expense		(3.0	)		(2.6	)		15.4	%		(8.9	)		(9.6	)		-7.3	%
Other operating expenses, net investment income and other income		(1.5	)		(1.0	)		50.0	%		(4.1	)		(4.0	)		2.5	%
Loss before tax		(0.5	)		(2.3	)		-78.3	%		(6.1	)		(4.8	)		27.1	%
Net loss		(0.1	)		(1.6	)		-93.8	%		(4.5	)		(3.3	)		36.4	%

N.M. - Not meaningful.

(A) 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.

- 4 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	Three Months Ended							Nine Months Ended
	September 30,							September 30,
	2016		2015		% Change			2016		2015		% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2016, $6,144.0; 2015, $5,892.0)								$	6,675.5	$	6,261.6		6.6	%
Equity securities, at fair value (cost 2016, $62.2;  2015, $35.3)									65.0		33.2		95.8	%
Short-term investments									178.6		72.3		147.0	%
Policy loans									150.7		147.4		2.2	%
Other investments									132.0		80.5		64.0	%
Total Annuity and Life investments									7,201.8		6,595.0		9.2	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2016, $763.6;  2015, $784.5)									818.6		817.1		0.2	%
Equity securities, at fair value (cost 2016, $62.6;  2015, $59.8)									72.6		62.9		15.4	%
Short-term investments									2.1		4.4		-52.3	%
Other investments									40.6		35.8		13.4	%
Total Property & Casualty investments									933.9		920.2		1.5	%
Corporate investments									33.5		26.0		28.8	%
Total investments									8,169.2		7,541.2		8.3	%
Net investment income
Before tax	$	94.9	$	81.0		17.2	%	$	270.7	$	248.3		9.0	%
After tax		63.0		54.3		16.0	%		180.3		166.5		8.3	%

N.M. - Not meaningful.

- 5 -