SPRINGFIELD, Ill., July 28, 2015 /PRNewswire/ -- Horace Mann Educators Corporation (NYSE: HMN) today reported financial results for the three and six months ended June 30, 2015:



                                                          Horace Mann Financial Highlights
                                                          --------------------------------

                                     Three months ended                                     Six months ended

                                          June 30,                                              June 30,
                                          --------                                              --------

    ($ in millions, except per share
        amounts)
                                                      2015                        2014             Change            2015      2014             Change
    ---                                               ----                        ----             ------            ----      ----             ------

    Total revenues                                  $268.5                      $264.8                       1.4%  $538.6    $526.0                      2.4%
    --------------                                  ------                      ------                        ---   ------    ------                       ---

    Net income                                        16.2                        20.4                     -20.6%    50.5      48.8                      3.5%
    ----------                                        ----                        ----                      -----     ----      ----                       ---

    Net income per diluted share                      0.38                        0.48                     -20.8%    1.19      1.16                      2.6%
    ----------------------------                      ----                        ----                      -----     ----      ----                       ---

    Operating income*                                 15.4                        18.2                     -15.4%    45.7      45.5                      0.4%
    ----------------                                  ----                        ----                      -----     ----      ----                       ---

    Operating income per
        diluted share*
                                                      0.36                        0.43                     -16.3%    1.08      1.08                         -
    ---                                               ----                        ----                      -----     ----      ----                       ---

    Book value per share                                                                                          31.73     31.40                      1.1%
    --------------------                                                                                          -----     -----                       ---

    Book value per share excluding
        the fair value adjustment
        for investments*

                                                                                                                  26.30     24.51                      7.3%
    ---                                                                                                           -----     -----                       ---

    Property and Casualty segment
        net income
                                                       3.3                         4.9                     -32.7%    20.9      18.9                     10.6%
    ---                                                ---                         ---                      -----     ----      ----                      ----

    Property and Casualty
       combined ratio
                                                    103.7%                     102.7%   1.0 pts                   97.0%    98.2%   -1.2 pts
    ---                                              -----                       -----    -------                    ----      ----    --------

    Property and Casualty underlying
       combined ratio*
                                                     91.4%                      88.5%   2.9 pts                   88.7%    90.3%   -1.6 pts
    ---                                               ----                        ----    -------                    ----      ----    --------

    Annuity segment net income                       $11.8                       $11.5                       2.6%   $24.3     $23.8                      2.1%
    --------------------------                       -----                       -----                        ---    -----     -----                       ---

    Life segment net income                            3.6                         5.0                     -28.0%     7.0       8.9                    -21.3%
    -----------------------                            ---                         ---                      -----      ---       ---                     -----


     *  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.

"Horace Mann's second quarter operating income was $0.36 per diluted share, which reflected the impact of adverse weather on our property and casualty segment. Annuity sales were up nearly 15% and we continue to see momentum in our property and casualty sales," said Horace Mann's President and CEO Marita Zuraitis. "We are successfully attracting new customers to Horace Mann through tailored product offerings, client-centric distribution, and the good progress we're making on modernizing our infrastructure. This quarter's results are another step toward becoming the company of choice for educators to protect their short-term risks and secure their long-term financial goals."

Property and Casualty Segment

For the second quarter of 2015, property and casualty net income of $3.3 million decreased 33%, or $1.6 million, compared to the prior year. The current quarter total property and casualty combined ratio of 103.7% increased 1.0 point compared to the favorable results in the second quarter of 2014, primarily attributable to auto. Catastrophe losses decreased modestly compared to the prior year; favorable prior years' reserve development was slightly more than the prior year amount. On an underlying basis, the second quarter auto combined ratio of 101.1% was 4.7 points higher than a year earlier. For property, the underlying combined ratio was 72.5% for the current quarter, 1.0 point lower than the second quarter of 2014.

For the first half of 2015, property and casualty net income of $20.9 million increased $2.0 million compared to the prior year. The current period total property and casualty combined ratio of 97.0% improved 1.2 points compared to a year ago, including an underlying loss ratio that improved 0.5 point compared to the prior year and a lower expense ratio. Catastrophe losses were higher than the first half of 2014; favorable prior years' reserve development was slightly more than the prior year amount. On an underlying basis, the six month auto combined ratio of 98.6% increased 0.2 point compared to a year earlier. For property, the underlying combined ratio was 69.4% for the current year, 5.6 points lower than the first half of 2014 primarily due to the mix of catastrophe and non-catastrophe weather and continued improvement in underlying results.

Total property and casualty written premiums of $152.5 million and $293.0 million each increased 3% compared to the three and six months ended June 30, 2014. The growth was driven primarily by increases in average premium per policy for both auto and property accompanied by reductions in catastrophe reinsurance costs.

Total property and casualty sales increased 4% and 5% compared to the second quarter and first half of 2014. Auto sales increased 2% and 4% compared to the respective prior year periods, while property sales increased 13% and 7%, respectively. Policy retention continues to be strong with auto and property policy retention rates for the current period at 85% and 88%, respectively.

Annuity Segment

Annuity segment net income of $11.8 million and $24.3 million for the current quarter and six months increased 3% and 2%, respectively, compared to the same periods in 2014. In both the current year and prior year periods, the impact of unlocking deferred policy acquisition costs was immaterial.

The 2015 annualized net interest spread of 190 basis points on fixed annuity assets reflected continued solid investment portfolio performance and disciplined crediting rate management. Compared to the first six months of 2014, the net interest margin increased 1%. Total annuity assets under management of $6.0 billion increased 7% compared to June 30, 2014, and total cash value persistency remained strong at approximately 94%.

For the three and six months ended June 30, 2015, annuity deposits of $140.9 million and $282.9 million increased 19% and 30%, respectively, compared to a year ago. The year-to-date increase of $64.6 million included an increase of $31.2 million attributable to changes in the company's employee retirement savings plans. Excluding that item, the remaining $33.4 million year-to-date increase, or 15%, was primarily due to notable growth in the amount of single premium and rollover deposits received in the current period, accompanied by growth in recurring deposit receipts.

Horace Mann's total annuity sales increased 14% and 21%, compared to the three and six months ended June 30, 2014, respectively, including continued growth in sales of the company's fixed indexed annuity product. Annuity sales by the company's agency force increased 23% compared to the six months ended June 30, 2014, while annuity sales from the independent agent distribution channel, which currently produces about 10% of total annuity sales, increased 7% compared to the same period.

Life Segment

Life segment net income of $3.6 million and $7.0 million for the three and six months, respectively, decreased $1.4 million and $1.9 million compared to the same periods in 2014, primarily attributable to an increase in mortality losses in the current year, compared to the prior year periods.

In 2015, life segment insurance premiums and contract deposits of $26.0 million for the current quarter and $49.2 million for the first half of the year were comparable to the same periods in 2014. Life persistency of 96% was also comparable to 12 months earlier. For the first six months, life sales of $4.8 million decreased 4%, or $0.2 million, compared to the first half of 2014, including a decrease of $0.4 million in the second quarter.

Investment Results

Total net investment income increased 3% and 2% compared to the three and six months ended June 30, 2014, respectively, reflecting higher asset balances in the annuity segment, as well as continued strong performance in the fixed maturity and alternative investment portfolios despite the interest rate environment. Pretax net realized investment gains were $1.4 million and $7.5 million for the three and six months ended June 30, 2015, respectively.

Horace Mann's net unrealized investment gains on fixed maturity and equity securities were $397.3 million at June 30, 2015, compared to net unrealized gains of $591.7 million at March 31, 2015 and $528.6 million at December 31, 2014. Net unrealized gains were $501.2 million at June 30, 2014.

Webcast Conference Call

Horace Mann's senior management will discuss the company's second quarter financial results with investors and analysts on July 29, 2015 at 11:00 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.

http://photos.prnewswire.com/prnvar/20141010/151463LOGO

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 March 31, 2015 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 Ended                                                                    Six Months Ended

                                                                                                        June 30,                                                                           June 30,
                                                                                                        --------                                                                           --------

                                                                                                                         2015                                               2014        % Change                             2015                    2014          % Change
                                                                                                                         ----                                               ----        --------                             ----                    ----          --------

    EARNINGS SUMMARY
    ----------------


    Net income                                                                                                       $16.2                                              $20.4                 -20.6%                     $50.5                   $48.8                     3.5%

                                               Net realized investment gains, after tax        0.8                                      2.2                                      -63.6%                        4.8                     3.3                   45.5%

    Operating income (A)                                                                                              15.4                                               18.2                 -15.4%                      45.7                    45.5                     0.4%


    Per diluted share:

                                               Net income                                    $0.38                                    $0.48                                      -20.8%                      $1.19                   $1.16                    2.6%

                                                Net realized investment gains,
                                                after tax                                    $0.02                                    $0.05                                      -60.0%                      $0.11                   $0.08                   37.5%

                                               Operating income (A)                          $0.36                                    $0.43                                      -16.3%                      $1.08                   $1.08                       -


    Weighted average number of shares

                                               and equivalent shares (in millions) - Diluted  42.4                                     42.3                                        0.2%                       42.4                    42.2                    0.5%




    RETURN ON EQUITY
    ----------------


    Net income return on equity (B)                                                                                                                                                                                    8.0%                   9.2%                    N.M.

    Operating income return on equity excluding the fair value

                                               adjustment for investments (A) (C)                                                                                                                           9.3%                  10.8%                   N.M.




    FINANCIAL POSITION
    ------------------


    Per share (D):

                                               Book value                                                                                                                                                 $31.73                  $31.40                    1.1%

                                                Effect of the fair value
                                                adjustment for investments (E)                                                                                                                             $5.43                   $6.89                  -21.2%

                                                Book value excluding the fair value
                                                adjustment for investments (A)                                                                                                                            $26.30                  $24.51                    7.3%


                                               Dividends paid                                $0.25                                    $0.23                                        8.7%                      $0.50                   $0.46                    8.7%


    Ending number of shares outstanding (in millions) (D)                                                                                                                                                              41.2                    40.9                     0.7%


    Total assets                                                                                                                                                                                                   $9,969.5                $9,446.2                     5.5%

    Short-term debt                                                                                                                                                                                                   113.0                    38.0                   197.4%

    Long-term debt, current and noncurrent                                                                                                                                                                            125.0                   199.9                   -37.5%

    Total shareholders' equity                                                                                                                                                                                      1,306.7                 1,283.1                     1.8%




    ADDITIONAL INFORMATION
    ----------------------


    Total Horace Mann Exclusive Agencies (F) & Employee Agents (G)                                                                                                                                                      703                     707                    -0.6%





    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
                            41,178,532 at June 30, 2015 and
                            40,859,718 at June 30, 2014.

    (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 Ended                                                             Six Months Ended

                                                       June 30,                                                                    June 30,
                                                       --------                                                                    --------

                                                                        2015                       2014                         % Change                           2015               2014       % Change
                                                                        ----                       ----                         --------                           ----               ----       --------

    STATEMENTS OF OPERATIONS
    ------------------------


    Insurance premiums and contract
     charges earned                                                $182.4                     $179.1                                    1.8%                  $362.1             $354.5                  2.1%

    Net investment income                                            84.0                       81.4                                    3.2%                   167.3              164.4                  1.8%

    Net realized investment gains                                     1.4                        3.5                                  -60.0%                     7.5                5.2                 44.2%

    Other income                                                      0.7                        0.8                                  -12.5%                     1.7                1.9                -10.5%


                             Total
                             revenues       268.5                             264.8                              1.4%                                  538.6             526.0              2.4%



    Benefits, claims and settlement
     expenses                                                       133.0                      127.2                                    4.6%                   247.0              239.2                  3.3%

    Interest credited                                                45.4                       43.7                                    3.9%                    89.9               86.8                  3.6%

    Policy acquisition expenses
     amortized                                                       24.0                       22.5                                    6.7%                    47.7               45.5                  4.8%

    Operating expenses                                               40.0                       39.3                                    1.8%                    75.9               79.2                 -4.2%

    Interest expense                                                  3.4                        3.6                                   -5.6%                     7.0                7.1                 -1.4%


                            Total
                             benefits,
                             losses
                             and
                             expenses       245.8                             236.3                              4.0%                                  467.5             457.8              2.1%



    Income before income taxes                                       22.7                       28.5                                  -20.4%                    71.1               68.2                  4.3%

                             Income tax
                             expense          6.5                               8.1                            -19.8%                                   20.6              19.4              6.2%


    Net income                                                      $16.2                      $20.4                                  -20.6%                   $50.5              $48.8                  3.5%




    PREMIUMS WRITTEN AND CONTRACT DEPOSITS
    --------------------------------------


    Property & Casualty                                            $152.5                     $148.2                                    2.9%                  $293.0             $285.4                  2.7%


    Annuity deposits                                                140.9                      118.0                                   19.4%                   282.9              218.3                 29.6%


    Life                                                              26.0                       26.2                                   -0.8%                    49.2               49.0                  0.4%


                            Total          $319.4                            $292.4                              9.2%                                 $625.1            $552.7             13.1%




    SEGMENT NET INCOME (LOSS)
    ------------------------


    Property & Casualty                                              $3.3                       $4.9                                  -32.7%                   $20.9              $18.9                 10.6%


    Annuity                                                          11.8                       11.5                                    2.6%                    24.3               23.8                  2.1%


    Life                                                               3.6                        5.0                                  -28.0%                     7.0                8.9                -21.3%


    Corporate and other (A)                                         (2.5)                     (1.0)                                 150.0%                   (1.7)             (2.8)               -39.3%


                            Net income      $16.2                             $20.4                            -20.6%                                  $50.5             $48.8              3.5%





    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.




                             - 2 -



                                                                                                                                      HORACE MANN EDUCATORS CORPORATION

                                                                                                                              Supplemental Business Segment Overview (Unaudited)

                                                                                                                                            (Dollars in Millions)



                                                                                                                  Three Months Ended                                                               Six Months Ended

                                                                                                                       June 30,                                                                      June 30,
                                                                                                                       --------                                                                      --------

                                                                                                                                       2015                                           2014        % Change                       2015               2014          % Change
                                                                                                                                       ----                                           ----        --------                       ----               ----          --------

    PROPERTY & CASUALTY
    -------------------


    Premiums written                                                                                                              $152.5                                         $148.2                   2.9%              $293.0             $285.4                     2.7%

    Premiums earned                                                                                                                147.7                                          144.6                   2.1%               294.4              288.5                     2.0%

    Net investment income                                                                                                            9.0                                            9.4                  -4.3%                18.4               18.7                    -1.6%

    Other income                                                                                                                       -                                             -                     -                 0.2                0.2                        -

    Losses and loss adjustment expenses (LAE)                                                                                      113.5                                          109.9                   3.3%               208.7              204.9                     1.9%

    Operating expenses (includes policy

                                 acquisition expenses amortized)                                             39.5                                     38.5                                   2.6%                      76.9               78.3              -1.8%

    Income before tax                                                                                                                3.7                                            5.6                 -33.9%                27.4               24.2                    13.2%

    Net income                                                                                                                       3.3                                            4.9                 -32.7%                20.9               18.9                    10.6%


    Net investment income, after tax                                                                                                 7.5                                            7.9                  -5.1%                15.4               15.7                    -1.9%


    Catastrophe costs (A)

                                 After tax                                                                   13.8                                     15.3                                  -9.8%                      20.6               19.4               6.2%

                                 Before tax                                                                  21.3                                     23.5                                  -9.4%                      31.8               29.8               6.7%


    Prior years' reserves favorable (adverse)

                                 development, before tax

                                 Automobile                                                                   0.5                                      3.0                                 -83.3%                       2.7                7.0             -61.4%

                                 Property                                                                     1.5                                        -                                  N.M.                       3.3                  -              N.M.

                                 Other liability                                                              1.2                                        -                                  N.M.                       1.2                  -              N.M.


                                                                          Total                                                         3.2                                            3.0                   6.7%                 7.2                7.0                     2.9%


    Operating statistics:

                                 Loss and loss adjustment expense ratio                                     76.9%                                   76.0%                                  N.M.                     70.9%             71.0%              N.M.

                                 Expense ratio                                                              26.8%                                   26.7%                                  N.M.                     26.1%             27.2%              N.M.

                                 Combined ratio                                                            103.7%                                  102.7%                                  N.M.                     97.0%             98.2%              N.M.


                                 Effect on the combined ratio of:

                                                                          Catastrophe costs (A)                                       14.5%                                         16.3%                  N.M.               10.7%             10.3%                    N.M.

                                                                          Prior years' reserve development                            -2.2%                                         -2.1%                  N.M.               -2.4%             -2.4%                    N.M.


                                  Combined ratio excluding the effects of
                                  catastrophe

                                  costs and prior years' reserve
                                  development

                                 ("underlying combined ratio") (B)                                          91.4%                                   88.5%                                  N.M.                     88.7%             90.3%              N.M.


    Policies in force (voluntary) (in thousands)                                                                                                                                                                            709                712                    -0.4%

                                 Automobile                                                                                                                                                                           483                480               0.6%

                                 Property                                                                                                                                                                             226                232              -2.6%


    Policy renewal rate (voluntary) - 12 months

                                 Automobile                                                                                                                                                                         84.9%             84.5%              N.M.

                                 Property                                                                                                                                                                           87.6%             88.8%              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                                                                         Six Months Ended

                                                                                                                                                            June 30,                                                                                  June 30,
                                                                                                                                                            --------                                                                                  --------

                                                                                                                                                                             2015                                                2014          % Change                                2015                     2014           % Change
                                                                                                                                                                             ----                                                ----          --------                                ----                     ----           --------

    ANNUITY
    -------


    Contract deposits                                                                                                                                                   $140.9                                              $118.0                    19.4%                       $282.9                   $218.3                     29.6%

                                                          Variable                                                                      48.2                                                35.2                                         36.9%                          95.3                     67.7                    40.8%

                                                          Fixed                                                                         92.7                                                82.8                                         12.0%                         187.6                    150.6                    24.6%

    Contract charges earned                                                                                                                                                6.5                                                 6.5                        -                         12.7                     12.4                      2.4%

    Net investment income                                                                                                                                                 57.2                                                54.4                     5.1%                        113.6                    110.2                      3.1%

    Interest credited                                                                                                                                                     34.4                                                32.8                     4.9%                         67.9                     65.1                      4.3%

                                                           Net interest margin (without realized
                                                           investment gains/losses)                                                     22.8                                                21.6                                          5.6%                          45.7                     45.1                     1.3%

    Other income                                                                                                                                                           0.5                                                 0.5                        -                          1.1                      1.1                         -

    Mortality loss and other reserve changes                                                                                                                             (0.6)                                              (0.4)                   50.0%                        (0.9)                   (0.8)                    12.5%

    Operating expenses (includes policy

                                                          acquisition expenses amortized)                                               12.2                                                11.4                                          7.0%                          23.3                     23.2                     0.4%

    Income before tax                                                                                                                                                     17.0                                                16.8                     1.2%                         35.3                     34.6                      2.0%

    Net income                                                                                                                                                            11.8                                                11.5                     2.6%                         24.3                     23.8                      2.1%


    Pretax income increase (decrease) due to

                                                          evaluation of:

                                                           Deferred policy acquisition
                                                           costs                                                                      $(0.1)                                               $0.4                                          N.M.                   $         -                    $0.3                  -100.0%

                                                           Guaranteed minimum death
                                                           benefit reserve                                                                 -                                                  -                                            -                             -                       -                       -


    Annuity contracts in force (in thousands)                                                                                                                                                                                                                                     206                      197                      4.6%

    Accumulated account value on deposit / Assets under management                                                                                                                                                                                                           $5,951.5                 $5,544.7                      7.3%

                                                          Variable                                                                                                                                                                                                 1,905.3                  1,814.1                     5.0%

                                                          Fixed                                                                                                                                                                                                    4,046.2                  3,730.6                     8.5%

    Annuity accumulated value retention - 12 months

                                                          Variable accumulations                                                                                                                                                                                     94.0%                   94.1%                    N.M.

                                                          Fixed accumulations                                                                                                                                                                                        94.7%                   94.9%                    N.M.




    LIFE
    ----


    Premiums and contract deposits                                                                                                                                       $26.0                                               $26.2                    -0.8%                        $49.2                    $49.0                      0.4%

    Premiums and contract charges earned                                                                                                                                  28.2                                                28.0                     0.7%                         55.0                     53.6                      2.6%

    Net investment income                                                                                                                                                 18.0                                                17.9                     0.6%                         35.7                     36.0                     -0.8%

    Other income                                                                                                                                                           0.2                                                 0.3                   -33.3%                          0.4                      0.6                    -33.3%

    Death benefits/mortality cost/change in reserves                                                                                                                      18.9                                                16.9                    11.8%                         37.4                     33.5                     11.6%

    Interest credited                                                                                                                                                     11.0                                                10.9                     0.9%                         22.0                     21.7                      1.4%

    Operating expenses (includes policy

                                                          acquisition expenses amortized)                                               10.9                                                10.7                                          1.9%                          20.8                     21.3                    -2.3%

    Income before tax                                                                                                                                                      5.6                                                 7.7                   -27.3%                         10.9                     13.7                    -20.4%

    Net income                                                                                                                                                             3.6                                                 5.0                   -28.0%                          7.0                      8.9                    -21.3%


    Pretax income increase (decrease) due to

                                                          evaluation of:

                                                           Deferred policy acquisition
                                                           costs                                                               $           -                                               $0.1                                       -100.0%                          $0.1                     $0.1                        -


    Life policies in force (in thousands)                                                                                                                                                                                                                                         200                      200                         -

    Life insurance in force                                                                                                                                                                                                                                                   $16,148                  $15,414                      4.8%

    Lapse ratio - 12 months

                                                          (Ordinary life insurance)                                                                                                                                                                                   4.1%                    4.1%                    N.M.




    CORPORATE AND OTHER (A)
    ----------------------


    Components of income (loss) before tax:

                                                          Net realized investment gains                                                 $1.4                                                $3.5                                        -60.0%                          $7.5                     $5.2                    44.2%

                                                          Interest expense                                                             (3.4)                                              (3.6)                                        -5.6%                         (7.0)                   (7.1)                   -1.4%

                                                           Other operating expenses, net investment
                                                           income

                                                                                              (1.6)                                                                         (1.5)                                               6.7%                   (3.0)                        (2.4)                   25.0%

                                                               and other income

    Loss before tax                                                                                                                                                      (3.6)                                              (1.6)                  125.0%                        (2.5)                   (4.3)                   -41.9%

    Net loss                                                                                                                                                             (2.5)                                              (1.0)                  150.0%                        (1.7)                   (2.8)                   -39.3%






    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                                                                 Six Months Ended

                                                                                                               June 30,                                                                        June 30,
                                                                                                               --------                                                                        --------

                                                                                                                             2015                                               2014        % Change                          2015                 2014          % Change
                                                                                                                             ----                                               ----        --------                          ----                 ----          --------

    INVESTMENTS
    -----------


    Annuity and Life

                             Fixed maturities, at fair value
                             (amortized

                             cost 2015, $5,726.5; 2014,
                             $5,412.4)                                                                                                                                                                        $6,085.5             $5,858.0                3.9%

                            Equity securities, at fair value

                            (cost 2015, $35.3;  2014, $40.5)                                                                                                                                                     33.3                 40.3              -17.4%

                            Short-term investments                                                                                                                                                               69.3                  7.8                N.M.

                            Policy loans                                                                                                                                                                        146.9                142.2                3.3%

                            Other investments                                                                                                                                                                    82.8                 62.0               33.5%


                                                              Total Annuity and Life investments                                                                                                                         6,417.8              6,110.3                     5.0%


    Property & Casualty

                             Fixed maturities, at fair value
                             (amortized

                            cost 2015, $778.5;  2014, $775.0)                                                                                                                                                   811.6                818.3               -0.8%

                            Equity securities, at fair value

                            (cost 2015, $58.8;  2014, $56.7)                                                                                                                                                     66.0                 69.2               -4.6%

                            Short-term investments                                                                                                                                                               12.2                 21.3              -42.7%

                            Other investments                                                                                                                                                                    41.2                 31.2               32.1%


                                                              Total Property & Casualty investments                                                                                                                        931.0                940.0                    -1.0%


    Corporate investments                                                                                                                                                                                               36.3                 39.4                    -7.9%


                                                              Total investments                                                                                                                                          7,385.1              7,089.7                     4.2%




    Net investment income

                            Before tax                                                              $84.0                                 $81.4                                        3.2%                      $167.3               $164.4                1.8%

                            After tax                                                                56.3                                  54.7                                        2.9%                       112.2                110.4                1.6%




    Net realized investment gains

                            Before tax                                                               $1.4                                  $3.5                                      -60.0%                        $7.5                 $5.2               44.2%

                            After tax                                                                 0.8                                   2.2                                      -63.6%                         4.8                  3.3               45.5%

                            Per share, diluted                                                      $0.02                                 $0.05                                      -60.0%                       $0.11                $0.08               37.5%





    N.M. - Not meaningful.



                                                                                                                                                    - 5 -

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SOURCE Horace Mann Educators Corporation