Horace Mann Reports Results for Second Quarter

SPRINGFIELD, Ill., July 30 /PRNewswire-FirstCall/ -- Horace Mann Educators
Corporation (NYSE: HMN) today reported net income of $18.6 million (46 cents
per share) and $32.0 million (79 cents per share) for the three and six months
ended June 30, 2009, respectively, compared to $4.5 million (11 cents per
share) and $18.8 million (45 cents per share) for the same periods in 2008.
Included in net income were net realized gains on securities of $11.0 million
($7.2 million after tax, or 18 cents per share) and $10.2 million ($6.6
million after tax, or 16 cents per share) for the three and six months ended
June 30, 2009, respectively. In the same periods in 2008, net income included
net realized investment losses of $8.1 million ($5.1 million after tax, or 12
cents per share) and $10.5 million ($6.7 million after tax, or 16 cents per
share), respectively. All per-share amounts are stated on a diluted basis.

"As the financial markets have begun to stabilize and improve, our confidence
in the quality of our investment portfolio has been substantiated. Spread
narrowing in the credit markets has significantly improved our unrealized loss
position, with reported book value per share increasing 26 percent
sequentially to $14.34. Meanwhile, book value per share excluding FAS 115 is
now slightly higher than a year ago - just prior to the meltdown of the
financial markets. Key balance sheet ratios, including risk based capital,
remain consistent with our ratings, which have now been reaffirmed by all
three primary rating agencies," said Louis G. Lower, President and Chief
Executive Officer. "That financial stability, combined with Horace Mann's
established position in our educator niche market, contributed to another very
strong quarter in annuity sales, which increased 50 percent compared to a year
ago. While the recession's impact on new car sales continued to pressure
applications for true new auto units, we're beginning to close the gap to
prior year and would expect continued improvement, as our growth in total
points of distribution and recent growth in agent count build on the momentum
we've established to transform our distribution system to a new, more powerful
model. Finally, while catastrophes and non-catastrophe weather impacted our
property results, the underlying profitability in all of our segments remained
solid and generally consistent with expectations."

"Net income before realized investment gains and losses was 28 cents per share
for the second quarter," continued Lower. "For the current accident year and
excluding catastrophes, our property and casualty combined ratio of
approximately 94 percent in the quarter was about 2 percentage points higher
than the prior year period, largely reflecting the increase in non-catastrophe
weather-related losses. In addition, combined annuity and life segment pretax
earnings increased approximately 10 percent in the second quarter, compared to
prior year, due to the positive impact of market performance on the valuations
of deferred policy acquisition costs and the guaranteed minimum death benefit
reserve."

Segment Earnings
The property and casualty segment recorded net income of $3.6 million for the
quarter, an increase of $1.7 million compared to the same period in 2008.
Pretax catastrophe costs in the current quarter were $15.1 million compared to
$22.4 million incurred in the second quarter of 2008. The second quarter 2009
property and casualty combined ratio was 103.8 percent, including 11.1
percentage points due to catastrophe costs, compared to 106.7 percent,
including 16.6 percentage points due to catastrophe costs, in the prior year
period. Favorable prior years' reserve development totaling $2.1 million was
recorded in the second quarter, which represented 1.5 percentage points on the
combined ratio, compared to $2.4 million, or 1.8 percentage points on the
combined ratio, recorded in the second quarter of 2008.

Annuity segment net income was $6.3 million for the three months ended June
30, 2009, reflecting an increase of $1.2 million compared to the same period
in 2008. In the second quarter, the positive market performance had a
favorable impact on both the valuation of annuity deferred policy acquisition
costs and the level of guaranteed minimum death benefit reserves. In
contrast, however, financial market performance over the past 12 months
adversely affected the level of charges and fees earned on variable contract
deposits in the quarter compared to prior year, which offset the higher
interest margin earned on fixed annuity assets in the current period. Total
annuity net fund flows continued to be positive in the quarter, as they were
throughout 2008, and total cash value persistency of nearly 94 percent
increased about 2 percentage points compared to a year earlier."

Life segment net income of $5.0 million for the second quarter decreased $0.2
million compared to the same period in 2008, as an increase in mortality costs
offset the growth in investment income. Life persistency remained in excess
of 94 percent.

Segment Revenues
The company's total premiums written and contract deposits increased 8 percent
and 3 percent compared to the three and six months ended June 30, 2008,
respectively, primarily reflecting increases in annuity deposit receipts in
the current periods.

Total property and casualty premiums written increased 2 percent compared to
both the three and six months ended June 30, 2008, primarily reflecting
increases in average property and auto premiums per policy.

Annuity new contract deposits received increased 22 percent and 8 percent
compared to the three and six months ended June 30, 2008, respectively. Life
segment insurance premiums and contract deposits decreased 2 percent compared
to the prior year three and six months.

Sales and Distribution
For both the three and six months ended June 30, 2009, total new auto sales
units were 5 percent lower in the current periods than in the prior year. "In
spite of the adverse prior year comparisons in total units, average agent true
new auto productivity increased in the current periods," said Lower. Flexible
premium annuity sales increased 32 percent in the quarter and 68 percent for
the six months compared to the respective prior year periods. Coupled with
year-to-date growth of 44 percent in single premium rollover deposits,
including both Horace Mann and partner company products, total annuity sales
increased 50 percent compared to the first six months of 2008. "Horace Mann
has approved annuity payroll reduction capabilities in approximately one-third
of the 15,500 public school districts in the United States. This access will
continue to benefit the Company's marketing opportunities," said Lower.

While the 684 Horace Mann agents at June 30, 2009 reflected a 5 percent
decrease compared to a year earlier, the number of agents increased again in
the current quarter, resulting in a 2 percent increase in agent count since
year-end 2008. Including 474 licensed producers who work for the agents,
Horace Mann's total points of distribution increased to 1,158, a growth of 11
percent over a year earlier. "We are encouraged by the increase in the number
of agents in the first half of the year. Based on current trends, we
anticipate showing year-over-year agent growth by the end of next quarter.
That expectation, coupled with the positive impact that our new Agency
Business Model is having on productivity and the recent enhancements made to
our field sales management structure, bodes well for Horace Mann's future
growth prospects," said Lower.

Investment Gains and Losses
In the second quarter of 2009, pretax net realized investment gains were $11.0
million, which included $3.8 million of credit-related impairment write-downs,
primarily associated with a single collateralized debt obligation security,
and $4.1 million of realized impairment losses on securities that were
disposed of during the quarter, primarily financial institution and
telecommunications sector securities. The impairment amounts were largely
offset by $6.1 million of realized gains on previously impaired securities
that were disposed of during the quarter, primarily financial sector
securities. In addition, the second quarter reflected approximately $13
million of realized gains on other security sales.

Horace Mann's net unrealized investment losses on fixed maturity and equity
securities of $171.3 million at June 30, 2009 improved significantly compared
to the $359.6 million and $327.2 million levels recorded at March 31, 2009 and
December 31, 2008, respectively. "Credit spreads improved across virtually
all asset classes in the second quarter, with our investment grade corporate
bond portfolio experiencing the most significant reduction in net unrealized
losses. Some of the more highly stressed asset classes also showed
improvement, including our financial institution bond and preferred stock
holdings and our CMBS portfolio," said Lower. "In light of this widespread
improvement in the credit markets, coupled with our insignificant exposure to
sub-prime, Alt-A and other lower-quality structured securities, we remain very
comfortable with the underlying credit quality of our investment portfolio and
have a high level of confidence that any future investment losses relating to
the current economic environment will be very manageable."

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, 2009 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.

HORACE MANN EDUCATORS CORPORATION
Digest of Earnings and Highlights (Unaudited)
(Dollars in Millions, Except Per Share Data)

Quarter Ended Six Months Ended
June 30, June 30,
2009 2008 % Change 2009 2008 % Change
DIGEST OF EARNINGS

Net income $18.6 $4.5 313.3% $ 32.0 $ 18.8 70.2%

Net income
per share:
Basic $0.48 $0.11 336.4% $ 0.82 $ 0.46 78.3%
Diluted $0.46 $0.11 318.2% $ 0.79 $ 0.45 75.6%

Weighted average
number of shares
and equivalent
shares (in
millions) (A):
Basic 39.2 40.1 -2.2% 39.2 40.6 -3.4%
Diluted 40.5 41.2 -1.7% 40.5 41.7 -2.9%

HIGHLIGHTS

Operations

Insurance premiums
written and
contract
deposits $264.7 $245.0 8.0% $486.0 $469.6 3.5%

Return on
equity (B) 4.8% 8.5% N.M.

Property &
Casualty GAAP
combined ratio 103.8% 106.7% N.M. 99.2% 100.2% N.M.
Effect of
catastrophe
costs on the
Property &
Casualty
combined ratio 11.1% 16.6% N.M. 7.2% 10.4% N.M.

Dedicated
agents (C) 684 721 -5.1%
Licensed
producers (D) 474 322 47.2%
Total points of
distribution 1,158 1,043 11.0%

Additional Per
Share Information

Dividends
paid $0.0525 $0.105 -50.0% $0.105 $ 0.21 -50.0%

Book value (E) $14.34 $15.13 -5.2%

Financial
Position

Total assets $5,828.2 $6,053.0 -3.7%
Short-term debt 38.0 - N.M.
Long-term debt 199.6 199.5 0.1%
Total
shareholders'
equity 561.8 591.1 -5.0%

N.M. - Not meaningful.
(A) During the three months ended March 31, 2008, the Company repurchased
1,636,376 shares of its common stock at an aggregate cost of $29.5
million, or an average cost of $18.01 per share. During the three
months ended June 30, 2008, the Company repurchased 1,561,849 shares
of its common stock at an aggregate cost of $24.8 million, or an
average cost of $15.93 per share.
(B) Based on trailing 12-month net income and average quarter-end
shareholders' equity.
(C) Agents under contract with the Company to market only the Company's
products and limited additional third-party vendor products
authorized by the Company.
(D) Includes licensed producers working in dedicated agents' offices and
excludes independent agents.
(E) Book value per share excluding the fair value adjustment for
investments was $16.86 at June 30, 2009 and $16.71 at June 30, 2008.
Ending shares outstanding were 39,176,856 at June 30, 2009 and
39,061,788 at June 30, 2008.

- 1 -

HORACE MANN EDUCATORS CORPORATION
Statements of Operations and Supplemental GAAP Consolidated
Data (Unaudited)
(Dollars in Millions)

Quarter Ended Six Months Ended
June 30, June 30,
2009 2008 % Change 2009 2008 % Change
STATEMENTS OF
OPERATIONS

Insurance
premiums and
contract charges
earned $163.5 $163.8 -0.2% $326.0 $326.3 -0.1%
Net investment
income 61.0 57.8 5.5% 118.9 114.4 3.9%
Net realized
investment
gains (losses) 11.0 (8.1) N.M. 10.2 (10.5) N.M.
Other income 1.9 2.7 -29.6% 4.8 5.3 -9.4%

Total
revenues 237.4 216.2 9.8% 459.9 435.5 5.6%

Benefits, claims
and settlement
expenses 118.2 122.1 -3.2% 226.0 229.0 -1.3%
Interest
credited 34.5 32.6 5.8% 68.2 64.7 5.4%
Policy
acquisition
expenses
amortized 19.1 18.8 1.6% 42.1 39.8 5.8%
Operating
expenses 35.0 33.3 5.1% 70.7 68.1 3.8%
Amortization of
intangible
assets - 1.6 -100.0% 0.2 2.8 -92.9%
Interest expense 3.5 3.4 2.9% 7.0 6.8 2.9%

Total benefits,
losses and
expenses 210.3 211.8 -0.7% 414.2 411.2 0.7%

Income before
income taxes 27.1 4.4 515.9% 45.7 24.3 88.1%
Income tax
expense
(benefit) 8.5 (0.1) N.M. 13.7 5.5 149.1%

Net income $18.6 $4.5 313.3% $ 32.0 $ 18.8 70.2%

ANALYSIS OF
PREMIUMS WRITTEN
AND CONTRACT
DEPOSITS

Property &
Casualty
Automobile and
property
(voluntary) $139.7 $137.7 1.5% $267.9 $264.3 1.4%
Involuntary
and other
property &
casualty 1.0 0.8 25.0% 1.9 1.0 90.0%

Total
Property &
Casualty 140.7 138.5 1.6% 269.8 265.3 1.7%

Annuity
deposits 98.9 80.8 22.4% 167.6 154.7 8.3%

Life 25.1 25.7 -2.3% 48.6 49.6 -2.0%

Total $264.7 $245.0 8.0% $486.0 $469.6 3.5%

ANALYSIS OF
SEGMENT NET
INCOME (LOSS)

Property &
Casualty $3.6 $1.9 89.5% $ 16.0 $ 14.9 7.4%

Annuity 6.3 5.1 23.5% 7.5 8.1 -7.4%

Life 5.0 5.2 -3.8% 8.4 7.8 7.7%

Corporate and
other (A) 3.7 (7.7) N.M. 0.1 (12.0) N.M.

Net income 18.6 4.5 313.3% 32.0 18.8 70.2%

Catastrophe
costs,
after tax,
included
above (B) (9.8) (14.5) -32.4% (12.7) (18.0) -29.4%

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. See detail for this segment
on page 4.
(B) Includes allocated loss adjustment expenses and catastrophe
reinsurance reinstatement premiums. See also page 3.

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HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited)
(Dollars in Millions)

Quarter Ended Six Months Ended
June 30, June 30,
2009 2008 % Change 2009 2008 % Change
PROPERTY & CASUALTY

Premiums
written $140.7 $138.5 1.6% $269.8 $265.3 1.7%
Premiums
earned 135.8 134.5 1.0% 270.8 267.5 1.2%
Net investment
income 8.5 9.1 -6.6% 16.8 18.3 -8.2%
Other income 0.6 0.5 20.0% 2.0 1.1 81.8%
Losses and
loss adjustment
expenses (LAE) 106.7 111.0 -3.9% 200.3 202.7 -1.2%
Operating
expenses
(includes
policy
acquisition
expenses
amortized) 34.2 32.5 5.2% 68.4 65.2 4.9%
Income before
tax 4.0 0.6 566.7% 20.9 19.0 10.0%
Net income 3.6 1.9 89.5% 16.0 14.9 7.4%

Net investment
income, after
tax 7.2 7.6 -5.3% 14.2 15.3 -7.2%

Catastrophe costs,
after tax (A) 9.8 14.5 -32.4% 12.7 18.0 -29.4%
Catastrophe
losses and
LAE, before
tax 15.1 22.4 -32.6% 19.6 27.8 -29.5%
Reinsurance
reinstatement
premiums,
before tax - - - - - -

Operating
statistics:
Loss and loss
adjustment
expense ratio 78.5% 82.5% N.M. 73.9% 75.8% N.M.
Expense
ratio 25.3% 24.2% N.M. 25.3% 24.4% N.M.
Combined
ratio 103.8% 106.7% N.M. 99.2% 100.2% N.M.

Effect on
the
combined
ratio of:
Catastrophe
costs 11.1% 16.6% N.M. 7.2% 10.4% N.M.
Claims
office
consoli-
dation
costs
(all in
LAE) 0.2% - N.M. 1.2% - N.M.

Automobile and
property detail:
Premiums
written
(voluntary)
(B) $139.7 $137.7 1.5% $267.9 $264.3 1.4%
Automobile 91.7 90.3 1.6% 184.6 182.1 1.4%
Property 48.0 47.4 1.3% 83.3 82.2 1.3%

Premiums
earned
(voluntary)
(B) 135.3 134.1 0.9% 269.7 267.4 0.9%
Automobile 92.3 91.1 1.3% 184.0 182.0 1.1%
Property 43.0 43.0 - 85.7 85.4 0.4%

Policies in
force
(voluntary)
(in
thousands) 793 799 -0.8%
Automobile 531 535 -0.7%
Property 262 264 -0.8%

Policy renewal
rate (voluntary)
Automobile
(6 months) 91.5% 91.3% N.M.
Property
(12 months) 89.3% 88.8% N.M.

Voluntary
automobile
operating
statistics:
Loss and
loss
adjustment
expense
ratio 69.3% 71.7% N.M. 69.9% 71.4% N.M.
Expense
ratio 25.2% 24.3% N.M. 25.5% 24.3% N.M.
Combined
ratio 94.5% 96.0% N.M. 95.4% 95.7% N.M.

Effect on
the combined
ratio of:
Catastrophe
costs 0.9% 2.5% N.M. 0.7% 1.4% N.M.
Claims office
consolidation
costs (all
in LAE) 0.2% - N.M. 1.5% - N.M.

Total property
operating
statistics:
Loss and
loss
adjustment
expense
ratio 98.5% 106.2% N.M. 82.7% 86.2% N.M.
Expense
ratio 25.3% 23.9% N.M. 24.8% 24.4% N.M.
Combined
ratio 123.8% 130.1% N.M. 107.5% 110.6% N.M.

Effect on
the
combined
ratio of:
Catastrophe
costs 33.6% 47.5% N.M. 21.6% 29.8% N.M.
Claims
office
consolidation
costs (all
in LAE) 0.2% - N.M. 0.8% - N.M.

Prior years'
reserves
favorable
(adverse)
development, pretax
Voluntary
automobile $2.5 $2.2 13.6% $ 5.0 $ 3.5 42.9%
Total
property (0.4) 0.2 N.M. - 0.6 -100.0%
Other
property
and
casualty - - N.M. 0.5 1.0 -50.0%

Total 2.1 2.4 -12.5% 5.5 5.1 7.8%

N.M. - Not meaningful.
(A) Includes allocated loss adjustment expenses and catastrophe
reinsurance reinstatement premiums.
(B) Amounts are net of additional ceded premiums to reinstate the
Company's property and casualty catastrophe reinsurance coverage, if
any, as quantified above.

- 3 -

HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited)
(Dollars in Millions)

Quarter Ended Six Months Ended
June 30, June 30,
2009 2008 % Change 2009 2008 % Change
ANNUITY

Contract
deposits $98.9 $80.8 22.4% $167.6 $154.7 8.3%
Variable 29.8 35.3 -15.6% 56.0 70.9 -21.0%
Fixed 69.1 45.5 51.9% 111.6 83.8 33.2%
Contract charges
earned 3.4 4.9 -30.6% 6.6 9.6 -31.3%
Net investment
income 37.0 34.0 8.8% 71.8 67.1 7.0%
Net interest
margin (without
realized
investment
gains and
losses) 12.4 10.9 13.8% 23.2 21.4 8.4%
Other income 0.6 1.4 -57.1% 1.4 2.7 -48.1%
Mortality loss
and other
reserve changes 0.9 0.4 125.0% 0.3 (0.1) N.M.
Operating expenses
(includes policy
acquisition
expenses
amortized) 8.0 8.7 -8.0% 20.5 20.2 1.5%
Amortization of
intangible
assets - 1.3 -100.0% - 2.2 -100.0%
Income before
tax 9.3 7.6 22.4% 11.0 11.2 -1.8%
Net income 6.3 5.1 23.5% 7.5 8.1 -7.4%

Pretax income
increase
(decrease) due
to valuation of:
Deferred policy
acquisition
costs $1.3 $0.2 550.0% $(1.7) $(2.1) -19.0%
Value of
acquired
insurance in
force - (0.3) -100.0% - (0.2) -100.0%
Guaranteed
minimum death
benefit
reserve 0.7 - N.M. 0.2 (0.1) N.M.

Annuity contracts
in force (in
thousands) 177 168 5.4%
Accumulated value
on deposit $3,401.1 $3,600.6 -5.5%
Variable 1,012.5 1,382.7 -26.8%
Fixed 2,388.6 2,217.9 7.7%
Annuity accumulated
value retention -
12 months
Variable
accumulations 93.4% 91.8% N.M.
Fixed
accumulations 94.1% 92.4% N.M.

LIFE

Premiums and
contract
deposits $25.1 $25.7 -2.3% $ 48.6 $ 49.6 -2.0%
Premiums and
contract
charges earned 24.3 24.4 -0.4% 48.6 49.2 -1.2%
Net investment
income 15.8 14.9 6.0% 30.8 29.5 4.4%
Income before
tax 7.9 7.9 - 13.3 12.3 8.1%
Net income 5.0 5.2 -3.8% 8.4 7.8 7.7%

Pretax income
increase
(decrease) due
to valuation of:
Deferred policy
acquisition
costs $ - $(0.1) -100.0% $(0.1) $(0.1) -

Life policies in
force (in
thousands) 219 225 -2.7%
Life insurance
in force $13,680 $13,647 0.2%
Lapse ratio -
12 months
(Ordinary life
insurance) 5.5% 5.6% N.M.

CORPORATE AND
OTHER (A)

Components of income
(loss) before tax:
Net realized
investment
gains
(losses) $11.0 $(8.1) N.M. $ 10.2 $(10.5) N.M.
Interest
expense (3.5) (3.4) 2.9% (7.0) (6.8) 2.9%
Other operating
expenses, net
investment
income
and other
income (1.6) (0.2) N.M. (2.7) (0.9) 200.0%
Income (loss)
before tax 5.9 (11.7) N.M. 0.5 (18.2) N.M.
Net income (loss) 3.7 (7.7) N.M. 0.1 (12.0) N.M.

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)

Quarter Ended Six Months Ended
June 30, June 30,
2009 2008 % Change 2009 2008 % Change
INVESTMENTS

Annuity and
Life
Fixed
maturities,
at fair
value
(amortized
cost 2009,
$3,105.7;
2008,
$3,223.7) $2,953.7 $3,137.5 -5.9%
Equity securities,
at fair value
(cost 2009,
$46.3;
2008,
$52.9) 36.6 47.7 -23.3%
Short-term
investments 341.9 52.4 552.5%
Short-term
investments,
securities
lending
collateral - 63.1 -100.0%
Policy loans
and other 111.7 104.3 7.1%
Total Annuity
and Life
investments 3,443.9 3,405.0 1.1%

Property & Casualty
Fixed maturities,
at fair
value
(amortized
cost 2009,
$705.4;
2008,
$682.9) 698.7 671.3 4.1%
Equity securities,
at fair value
(cost 2009,
$20.0;
2008, $39.9) 17.1 37.0 -53.8%
Short-term
investments 18.1 26.1 -30.7%
Short-term
investments,
securities
lending collateral - - -
Total Property
& Casualty
investments 733.9 734.4 -0.1%

Corporate
investments 29.1 4.1 N.M.

Total
investments 4,206.9 4,143.5 1.5%

Net investment
income
Before tax $61.0 $57.8 5.5% $118.9 $114.4 3.9%
After tax 41.5 39.3 5.6% 80.6 77.8 3.6%

Net realized
investment
gains (losses)
by investment
portfolio
included in
Corporate and
Other segment
income (loss)
Property &
Casualty $2.3 $(1.5) N.M. $(5.9) $(1.7) 247.1%
Annuity 7.3 (7.7) N.M. 11.4 (11.1) N.M.
Life 1.4 1.1 27.3% 4.7 2.3 104.3%
Corporate
and Other - - N.M. - - N.M.
Total,
before
tax 11.0 (8.1) N.M. 10.2 (10.5) N.M.
Total,
after tax 7.2 (5.1) N.M. 6.6 (6.7) N.M.
Per share,
diluted $0.18 $(0.12) N.M. $ 0.16 $(0.16) N.M.

N.M. - Not meaningful.

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HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited)
(Dollars in Millions)

March December June December
31, 31, 30, 31,
June 30, 2009 2009 2008 2008 2007
Net Net Net Net Net
Fair Unreal- Unreal- Unreal- Unreal- Unreal-
Value ized ized ized ized ized
Gain Gain Gain Gain Gain
(Loss) (Loss) (Loss) (Loss) (Loss)

FIXED MATURITY
& EQUITY
SECURITY
INVESTMENTS
Fixed income
securities
U.S. government
and federally
sponsored
agency bonds $216.6 $(2.5) $3.4 $ 4.9 $ 0.8 $ 2.3
Municipal
bonds 743.8 6.3 (3.7) (14.1) (5.1) 6.0
Corporate
bonds
Financial
institutions 219.3 (11.0) (35.3) (19.9) (13.5) (3.0)
Other 1,362.7 (14.3) (140.1) (122.6) (34.1) 11.0
High yield 163.8 (26.4) (28.0) (38.0) (9.5) (4.6)
Foreign
government
bonds 24.7 0.7 (0.1) 0.5 0.9 1.5
Mortgage-backed
securities
Prime
agency 490.1 18.5 21.2 20.5 (2.3) 1.9
Prime
other 15.2 (0.8) (0.2) (0.6) (1.6) 0.5
Sub-prime,
Alt-A 3.6 (0.8) (0.9) (0.7) (0.6) (0.1)
Commercial
mortgage-
backed
securities 257.7 (106.6) (115.8) (108.6) (23.9) (5.4)
Asset-backed
securities
Sub-prime,
Alt-A 1.1 (0.3) (0.1) 0.1 (0.1) -
Collateralized
debt
obligations,
collateralized
loan
obligations 10.7 (4.0) (4.7) (0.4) (2.5) (3.8)
Other 101.9 (4.8) (8.3) (8.5) (1.1) 0.4
Preferred
stocks
Financial
institutions 59.8 (19.7) (34.2) (29.8) (9.4) (7.6)
Other 33.6 (6.1) (12.5) (10.0) (4.2) (3.4)

Total
fixed
income
securities 3,704.6 (171.8) (359.3) (327.2) (106.2) (4.3)

Common stocks 1.5 0.5 (0.3) - 0.3 (0.5)
Derivatives - - - - - -

Total
fixed
maturity
and equity
security
invest-
ments $3,706.1 $(171.3) $(359.6)$(327.2) $(105.9) $ (4.8)

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SOURCE Horace Mann Educators Corporation

Dwayne D. Hallman, Senior Vice President - Finance of Horace Mann Educators
Corporation, +1-217-788-5708