Financials:
HORACE MANN EDUCATORS CORPORATION
Highlights and Digest of Earnings
Dollars in Millions, Except Per Share Data
Quarter Ended
June 30,
HIGHLIGHTS 1999 1998 % Change
Operations
Insurance premiums written and
contract deposits
Core lines $203.6 $205.7 -1.0%
Total 207.6 210.0 -1.1%
Operating income (1) 13.9 13.6 2.2%
Property & Casualty statutory
combined ratio 100.6% 101.1%
Property & Casualty statutory
combined ratio before
catastrophes 92.5% 87.2%
Per Share
Operating income (1)
Basic $0.34 $0.32 6.3%
Diluted $0.34 $0.31 9.7%
Operating income before
amortization of intangible
assets - diluted $0.36 $0.33 9.1%
Dividends paid $0.0925 $0.08 15.6%
(1) Net income before the after tax impact of realized investment
gains and losses.
HORACE MANN EDUCATORS CORPORATION
Highlights and Digest of Earnings
Dollars in Millions, Except Per Share Data
Six Months Ended
HIGHLIGHTS June 30,
Operations 1999 1998 % Change
Insurance premiums written and
contract deposits
Core lines $397.1 $398.3 -0.3%
Total 405.7 407.0 -0.3%
Operating income (1) 33.0 32.0 3.1%
Return on equity (2) 15.6% 17.2%
Property & Casualty statutory
combined ratio 98.0% 97.7%
Property & Casualty statutory
combined ratio before
catastrophes 92.9% 89.1%
Agents 1,070 1,046 2.3%
Per Share
Operating income (1)
Basic $0.80 $0.73 9.6%
Diluted $0.79 $0.72 9.7%
Operating income before
amortization of intangible
assets - diluted $0.84 $0.77 9.1%
Dividends paid $0.185 $0.16 15.6%
Book value (3) $10.57 $11.31 -6.5%
Financial Position
Total assets $4,327.8 $4,298.3 0.7%
Long-term debt 99.7 99.6
Total shareholders' equity 433.6 486.1 -10.8%
(1) Net income before the after tax impact of realized investment
gains and losses.
(2) Based on 12-month net income and average quarter-end shareholders'
equity.
(3) Before the market value adjustment for investments, book value per
share was $10.57 at June 30, 1999 and $9.90 at June 30, 1998.
Ending shares outstanding were 41,022,344 at June 30, 1999,
42,091,094 at December 31, 1998 and 42,982,894 at June 30, 1998.
HORACE MANN EDUCATORS CORPORATION
Highlights and Digest of Earnings
Dollars in Millions, Except Per Share Data
Quarter Ended
June 30,
1999 1998 % Change
DIGEST OF EARNINGS
Net income $10.4 $15.6 -33.3%
Earnings per share:
Basic $0.25 $0.36 -30.6%
Diluted $0.25 $0.36 -30.6%
Six Months Ended
June 30,
1999 1998 % Change
DIGEST OF EARNINGS
Net income $27.5 $38.1 -27.8%
Earnings per share:
Basic $0.66 $0.87 -24.1%
Diluted $0.65 $0.86 -24.4%
HORACE MANN EDUCATORS CORPORATION
Statements of Operations and Earnings Per Share
Dollars in Millions, Except Per Share Data
Quarter Ended
June 30,
Statements of Operations 1999 1998 % Change
Insurance premiums written
and contract deposits $207.6 $210.0 -1.1%
Insurance premiums and
contract charges earned $148.6 $143.4 3.6%
Net investment income 47.0 48.2
Realized investment gains (losses) (5.4) 3.0
Total revenues 190.2 194.6
Benefits, claims and
settlement expenses 110.6 107.3
Interest credited 22.9 23.8
Policy acquisition expenses
amortized 13.1 11.7
Operating expenses 24.5 26.6
Amortization of intangible assets 1.7 1.9
Interest expense 2.4 2.3
Total benefits, losses
and expenses 175.2 173.6
Income before income taxes 15.0 21.0
Income tax expense 4.6 5.4
Net income $10.4 $15.6 -33.3%
Operating income (1) $13.9 $13.6 2.2%
(1) Net income before the after tax impact of realized investment
gains and losses.
HORACE MANN EDUCATORS CORPORATION
Statements of Operations and Earnings Per Share
Dollars in Millions, Except Per Share Data
Six Months Ended
June 30,
Statements of Operations 1999 1998 % Change
Insurance premiums written
and contract deposits $405.7 $407.0 -0.3%
Insurance premiums and
contract charges earned $294.8 $284.6 3.6%
Net investment income 93.9 96.7
Realized investment gains (losses) (8.5) 9.4
Total revenues 380.2 390.7
Benefits, claims and
settlement expenses 211.9 204.7
Interest credited 46.0 47.9
Policy acquisition expenses
amortized 23.8 23.1
Operating expenses 50.2 53.9
Amortization of intangible assets 3.4 3.7
Interest expense 4.9 4.7
Total benefits, losses
and expenses 340.2 338.0
Income before income taxes 40.0 52.7
Income tax expense 12.5 14.6
Net income $27.5 $38.1 -27.8%
Operating income (1) $33.0 $32.0 3.1%
(1) Net income before the after tax impact of realized investment
gains and losses.
HORACE MANN EDUCATORS CORPORATION
Statements of Operations and Earnings Per Share
Dollars in Millions, Except Per Share Data
Quarter Ended
June 30,
Earnings Per Share 1999 1998 % Change
Diluted
Operating income (1) $0.34 $0.31 9.7%
Realized investment gains
(losses) ($0.09) $0.05
Net income $0.25 $0.36 -30.6%
Common and equivalent shares -
weighted average 41.7 44.2
Six Months Ended
June 30,
Earnings Per Share 1999 1998 % Change
Diluted
Operating income (1) $0.79 $0.72 9.7%
Realized investment gains
(losses) ($0.14) $0.14
Net income $0.65 $0.86 -24.4%
Common and equivalent shares -
weighted average 42.0 44.5
(1) Net income before the after tax impact of realized investment
gains and losses.
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