hmn-20230403
0000850141false00008501412023-04-032023-04-03


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

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

Date of Report: April 3, 2023

HORACE MANN EDUCATORS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware1-1089037-0911756
(State of incorporation)(Commission File Number)(I.R.S. Employer Identification No.)


1 Horace Mann Plaza, Springfield, Illinois 62715‑0001
(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: 217‑789‑2500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange
on which registered
Common Stock, $0.001 par valueHMNNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 7.01: Regulation FD Disclosure.
On April 3, 2023, Horace Mann Educators Corporation (the "Company") made available a Supplemental Exhibit to illustrate the anticipated changes to the presentation of the Company's prior period financial results as a result of the adoption of Accounting Standards Update No. 2018-12, “Targeted Improvements to the Accounting for Long-Duration Contracts”. The Company adopted this update effective January 1, 2023 using the modified retrospective approach where permitted with changes applied as of January 1, 2021, also referred to as the transition date.
This information is being made available to provide investors with additional information regarding the expected impact of the accounting standards update to the Company's historical financial results and the presentation thereof prior to the Company's earnings release for the quarter ended March 31, 2023. A copy of the Supplemental Exhibit is attached as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated by reference herein.
In accordance with General Instruction B.2 of Form 8-K, the information furnished pursuant to Item 7.01 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any of the Company’s filings under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01: Financial Statements and Exhibits
(d)Exhibits.
Exhibit 99.1    Glossary of Selected Terms.
Exhibit 99.2    Horace Mann Educators Corporation recast Investor Supplement for December 31, 2022
Exhibit 104    Cover Page Interactive Data File (formatted as Inline XBRL)

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

HORACE MANN EDUCATORS CORPORATION
By:/s/ Donald M. Carley
Name:Donald M. Carley
Title:Executive Vice President, General Counsel and Corporate Secretary

Date: April 3, 2023
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Exhibit 99.1
Glossary of Selected Terms

The following measures are used by the Company’s management to evaluate performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, are not based on accounting principles generally accepted in the United States of America (non-GAAP) under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statements of Operations and Comprehensive Income (Loss) or Consolidated Balance Sheets or are not required to be disclosed in the Notes to the Consolidated Financial Statements or, in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States of America (GAAP).
In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company's financial performance. Internally, the Company's management uses the measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons.
Some of these measures exclude net investment gains (losses), net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Also, some of these measures exclude goodwill and intangible asset impairments and intangible asset amortization.
Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.
Adjusted book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company’s underlying insurance operations.
Tangible book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities after-tax net reserve remeasurements attributable to discount rates, goodwill and other intangible assets (including the related impact of deferred taxes) by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure.
Debt to total capitalization ratio, excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates - The result of dividing (1) total debt by (2) total debt plus common shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates from common shareholders' equity. The debt to total capitalization ratio is the most directly comparable GAAP measure.
Catastrophe costs - The sum of catastrophe losses, net of reinsurance and before income tax benefits that includes allocated loss adjustment expenses and reinsurance reinstatement premiums, excluding unallocated loss adjustment expenses.
Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of a covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports claims and claim expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their
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effects are not included in earnings or claim and claim expense reserves prior to occurrence. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.
Core earnings (loss) - Consolidated net income (loss) excluding the after-tax impact of net investment gains (losses), discontinued operations, the after-tax impact of goodwill and intangible asset impairments and the cumulative effect of changes in accounting principles when applicable. Net income is the most directly comparable GAAP measure.
•Pretax core earnings (loss) - Pretax net income (loss) excluding the pretax impact of net investment gains (losses), discontinued operations, the pretax impact of goodwill and intangible asset impairments and cumulative effect of changes in accounting principles when applicable. Income before income taxes is the most directly comparable GAAP measure.
•Segment core earnings (loss) - Determined in the same manner as core earnings (loss) on a consolidated basis. Management uses segment core earnings to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core earnings when analyzing the results and trends of insurance companies.
Core earnings (loss) per share - Core earnings on a per common share basis. Earnings per share is the most directly comparable GAAP measure.
Adjusted core earnings (loss) – Determined in the same manner as core earnings (loss) but this measure is further adjusted to exclude intangible asset amortization to calculate adjusted core earnings (loss). Net income is the most directly comparable GAAP measure.
•Pretax adjusted core earnings (loss) – Determined in the same manner as pretax core earnings (loss) but this measure is further adjusted to exclude pretax intangible asset amortization to calculate pretax adjusted core earnings (loss). Income before income taxes is the most directly comparable GAAP measure.
Net premiums written and contract deposits – Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating business growth. Premiums and contract charges earned is the most directly comparable GAAP measure.
Net premiums written and contract deposits for the Company’s operating segments are as follows:
Property & Casualty
Net premiums written: Reflects the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers. The difference between premiums written and premiums earned is premiums unearned.
Life & Retirement
Life Insurance Product Lines:
•Net premiums written and contract deposits: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Contract deposits include amounts received from customers on deposit-type contracts.
Retirement Product Lines:
•Net annuity contract deposits: Reflects total recurring deposits and single deposits/rollovers – net of contract deposits ceded to reinsurers.


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Supplemental & Group Benefits
Worksite Direct Product Lines:
•Net premiums written and contract deposits: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders/certificate holders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Contract deposits include amounts received from customers on deposit-type contracts.
Employer-Sponsored Product Lines:
•Net premiums written: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business.
Investment yield, excluding limited partnership interests - annualized, pretax and after-tax - For the three month periods presented, investment yields are calculated by annualizing the result of year-to-date total net investment income, pretax adjusted to exclude (1) investment income from deposit asset on reinsurance, (2) investment income from limited partnership interests (excluding investment income on commercial mortgage loan funds) and (3) FHLB interest credited for the corresponding periods, divided by the average quarter-end and beginning of quarter carrying amount of the total investment portfolio as presented in the Consolidated Balance Sheets adjusted to exclude (1) FHLB funding agreements, (2) the carrying amount of limited partnership interests (excluding the carrying amount of commercial mortgage loan funds), and (3) gross unrealized investment gains (losses) on fixed maturity securities. For full year periods presented, investment yields are calculated by (i) summing the investment yields for each respective three-month period applicable to the year and (ii) dividing that sum per the calculation in (i) by four. Net investment income is the most directly comparable GAAP measure.
Net income return on equity - LTM: The ratio of (1) trailing 12 month net income to (2) the average of ending shareholders’ equity for the current quarter end and the preceding four quarter ends - referred to as the 5 quarter average of shareholders' equity.
•Net income return on equity - Annualized: The ratio of (1) annualized net income to (2) the 2 quarter average of shareholders' equity.
•Core return on equity - LTM: The ratio of (1) trailing 12 month core earnings to (2) the 5 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - LTM is the most directly comparable GAAP measure.
•Core return on equity - Annualized: The ratio of (1) annualized core earnings to (2) the 2 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - Annualized is the most directly comparable GAAP measure.
•Adjusted core return on equity - LTM: The ratio of (1) trailing 12 month adjusted core earnings to (2) the 5 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - LTM is the most directly comparable GAAP measure.
•Adjusted core return on equity - Annualized: The ratio of (1) annualized adjusted core earnings to (2) the 2 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - Annualized is the most directly comparable GAAP measure.
Net reserves - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables.
Prior years’ reserve development - A measure which the Company reports for its Property & Casualty segment which identifies the increase or decrease in net incurred claim and claim expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of management, a discussion of prior
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years’ reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years.
Property & Casualty operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results.
•Loss ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net earned premiums.
•Underlying loss ratio - The sum of the loss ratio adjusted to remove the effect of catastrophe losses and prior years' reserve development. The loss ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods.
•Expense ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs to (2) net earned premiums.
•Combined ratio - The sum of the loss ratio and the expense ratio. A combined ratio less than 100% generally indicates profitable underwriting prior to the consideration of net investment income.
•Underlying combined ratio or combined ratio excluding catastrophe losses and prior years’ reserve development - The sum of the loss ratio and the expense ratio adjusted to remove the effect of catastrophe losses and prior years’ reserve development. The combined ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company’s underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years’ reserve development, the amounts of which may be significant and may vary significantly between periods.
Sales – Sales data pertains to Horace Mann products and excludes authorized products sold by exclusive agents that are underwritten by third-party vendors. Sales should not be viewed as a substitute for any GAAP measure, including "sales" as it relates to non-insurance companies, and the Company’s definition of sales, sales deposits or new annualized sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends.
Sales for the Company’s operating segments are as follows:
Property & Casualty
•Sales: Sales are measured as premiums to be collected over the 12 months following the sale of new automobile and property policies.
Life & Retirement
Life Insurance Product Lines:
•Annualized sales: Annualized sales are based on the total yearly premium that the Company would expect to receive if all first year recurring premium policies would remain in force, plus 10% of single and indexed universal life excess premiums. Annualized sales measure activity associated with gaining new insurance business in the current period, and includes deposits received related to universal-life-type products.
Supplemental & Group Benefits
Worksite Direct Product Lines:
•Sales: Based on application received date on the submitted policy and measured as the submitted annual premium.
Employer-Sponsored Product Lines:
•Sales: Sales are measured based on the first year annualized premium on the effective date of sale.
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Table of Contents
Page
Consolidated Financial Highlights
Selected Financial Data - Five Year History
Consolidated Statements of Operations
Consolidated Balance Sheets
Capital Metrics
Property & Casualty Segment
Statements of Operations
Auto / Property and Other Products
Life & Retirement Segment
Statements of Operations
Life Insurance / Retirement Products
Account Value Rollforward
Supplemental & Group Benefits
Statements of Operations
Worksite Direct / Employer-Sponsored Products
Corporate & Other Segment
Statements of Operations
Investment Earnings Before Taxes Consolidated
Composition of Invested Assets Consolidated
Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliation of Net Income (Loss) to Core Earnings (Loss) and Adjusted Core Earnings
Reconciliation of Life & Retirement Net Income to Core Earnings and Adjusted Core Earnings
Reconciliation of Supplemental & Group Benefits Net Income to Core Earnings and Adjusted Core Earnings
Reconciliation of Return on Equity
Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share and Tangible Book Value per Common Share
Reconciliation of Debt to Total Capitalization Ratio to Debt to Total Capitalization Ratio, Excluding Net Unrealized Gains (Losses) on Fixed Maturity Securities and Net Reserve Remeasurements Attributable to Discount Rates
Reconciliation of Investment Yield, Excluding Limited Partnership Interests
Operating Ratios - Property & Casualty
24
Ratings and Contact Information
26
Note: The information contained in this document includes measures which are based on methodologies other than accounting principles generally accepted in the United States of America (non-GAAP) and are marked with an asterisk (*) within this document. Reconciliations of non-GAAP measures to the closest GAAP measures are contained in the supplemental numerical pages of HMEC's quarterly earnings releases (and related SEC filings), and additional descriptions of non-GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to HMEC's SEC filings.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Consolidated Financial Highlights
($ in millions, except per share data)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net premiums and contract charges earned$259.1 $257.4 $255.4 $255.8 $210.6 $1,027.7 $888.8 
Net investment income100.2 97.6 105.2 97.9 114.1 400.9 422.5 
Net investment losses(12.7)(12.8)(15.5)(15.5)(0.4)(56.5)(11.0)
Other income(0.2)0.4 0.8 8.5 6.9 9.5 29.0 
Total revenues$346.4 $342.6 $345.9 $346.7 $331.2 $1,381.6 $1,329.3 
Net income (loss)$(16.7)$20.4 $(4.2)$20.3 $46.9 $19.8 $170.4 
Core earnings (loss)*(2.9)30.5 8.0 32.5 47.2 68.1 179.0 
Adjusted core earnings (loss)*0.5 33.8 11.3 35.8 49.8 81.4 189.3 
At Period End
Total assets$13,310.5 $13,166.6 $13,665.0 $14,408.0 $14,465.4 $13,310.5 $14,465.4 
Total policy liabilities7,668.8 7,649.6 7,783.8 7,956.7 7,733.1 7,668.8 7,733.1 
Debt498.0 497.9 497.8 502.7 502.6 498.0 502.6 
Shareholders' equity1,098.3 1,092.3 1,197.2 1,351.5 1,499.0 1,098.3 1,499.0 
Per Share and Shares Data (in millions)(1)
Net income (loss) per share (basic)$(0.40)$0.49 $(0.10)$0.48 $1.12 $0.48 $4.06 
Net income (loss) per share (diluted)(0.40)0.49 (0.10)0.48 1.11 0.47 4.04 
Core earnings (loss) per share (diluted)*(0.06)0.73 0.19 0.77 1.12 1.62 4.24 
Adjusted core earnings per share (diluted)*0.02 0.82 0.26 0.85 1.18 1.94 4.48 
Weighted average shares (basic)41.4 41.4 41.8 41.9 42.0 41.6 42.0 
Dilutive effect of share equivalents0.2 0.2 — 0.2 0.2 0.2 0.2 
Weighted average shares (diluted)41.6 41.6 41.8 42.1 42.2 41.8 42.2 
Book value per share$26.85 $26.71 $29.06 $32.66 $36.21 $26.85 $36.21 
Per share impact of net unrealized investment gains (losses) on fixed maturity securities*(10.99)(12.14)(6.84)0.31 8.39 (10.99)8.39 
Per share impact of net reserve remeasurements attributable to discount rates*1.44 1.80 (0.90)(4.96)(9.35)1.44 (9.35)
Adjusted book value per share*$36.40 $37.05 $36.80 $37.31 $37.17 $36.40 $37.17 
Tangible book value per share*$30.58 $30.99 $30.69 $31.12 $32.62 $30.58 $32.62 
Dividends paid per share$0.32 $0.32 $0.32 $0.32 $0.31 $1.28 $1.24 
Financial Ratios
Net Income ROE - LTM(2)
1.6 %6.3 %5.9 %9.8 %11.6 %1.6 %11.6 %
Net Income ROE - Annualized(6.1)%7.1 %(1.3)%5.7 %12.6 %1.5 %11.9 %
Core ROE - LTM*4.5 %7.8 %7.4 %10.3 %11.9 %4.5 %11.9 %
Core ROE - Annualized*(0.8)%8.0 %2.1 %8.4 %12.4 %4.5 %12.1 %
Adjusted Core ROE - LTM*5.4 %8.6 %8.2 %11.0 %12.6 %5.4 %12.6 %
Adjusted Core ROE - Annualized*0.1 %8.9 %3.0 %9.3 %13.1 %5.4 %12.8 %
Debt to total capitalization excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates*25.1 %24.7 %24.7 %24.6 %24.6 %25.1 %24.6 %
Investment yield, excluding limited partnership interests, pretax - annualized*4.01 %4.26 %4.28 %4.29 %4.32 %4.25 %4.27 %
(1) Calculated using basic shares when in a net loss or core loss position.
(2) LTM = Last twelve months.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 3
Selected Financial Data - Five Year History
($ in millions, except per share data)Year Ended December 31,
2022(1)
20212020
2019(1)
2018
Consolidated Statement of Operations Data
Net premiums and contract charges earned$1,027.7 $888.8 $930.7 $898.0 $817.3 
Net investment income400.9 422.5 357.6 365.1 376.5 
Net income (loss)19.8 170.4 133.3 184.4 18.3 
Net income ROE - Annualized1.5 %11.9 %7.9 %12.9 %1.3 %
At Period End
Total assets$13,310.5 $14,465.4 $13,471.8 $12,478.7 $11,031.9 
Total policy liabilities7,668.8 7,733.1 7,148.6 6,956.5 6,384.1 
Debt498.0 502.6 437.3 433.0 297.7 
Shareholders' equity1,098.3 1,499.0 1,790.1 1,567.3 1,290.6 
Per Share and Shares Data (in millions)
Net income (loss) per share (basic)$0.48 $4.06 $3.18 $4.42 $0.44 
Net income (loss) per share (diluted)0.47 4.04 3.17 4.40 0.44 
Weighted average shares (basic)41.6 42.0 41.9 41.7 41.6 
Weighted average shares (diluted)41.8 42.2 42.0 41.9 41.9 
Book value per share$26.85 $36.21 $43.22 $38.01 $31.50 
Adjusted book value per share*36.40 37.17 34.38 32.42 29.13 
Tangible book value per share*30.58 32.62 29.52 26.90 27.91 
Dividends paid per share$1.28 $1.24 $1.20 $1.15 $1.14 
Segment Information
Net premiums written and contract deposits*
Property & Casualty$617.5 $607.8 $635.5 $683.1 $681.5 
Life & Retirement544.8 563.0 536.3 529.6 550.4 
Supplemental & Group Benefits274.7 128.0 133.2 68.7 3.1 
Total$1,437.0 $1,298.8 $1,305.0 $1,281.4 $1,235.0 
Net income (loss)
Property & Casualty$(44.4)$57.0 $76.5 $54.3 $(14.3)
Life & Retirement63.8 89.1 30.7 12.6 60.4 
Supplemental & Group Benefits65.9 52.9 42.9 18.2 0.1 
Corporate & Other(65.5)(28.6)(16.8)99.3 (27.9)
Total$19.8 $170.4 $133.3 $184.4 $18.3 
(1) The acquisition of NTA Life Enterprises, LLC closed on July 1, 2019. The acquisition of Madison National Life Insurance Company, Inc. closed on January 1, 2022. Both entities are reported in the Supplemental & Group Benefits segment.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Consolidated Statements of Operations
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Revenues
Net premiums and contract charges earned$259.1 $257.4 $255.4 $255.8 $210.6 $1,027.7 $888.8 
Net investment income100.2 97.6 105.2 97.9 114.1 400.9 422.5 
Net investment losses(12.7)(12.8)(15.5)(15.5)(0.4)(56.5)(11.0)
Other income(0.2)0.4 0.8 8.5 6.9 9.5 29.0 
Total revenues346.4 342.6 345.9 346.7 331.2 1,381.6 1,329.3 
Benefits, losses and expenses
Benefits, claims and settlement expenses201.2 167.2 203.4 175.2 165.9 747.0 590.7 
Interest credited47.5 44.8 41.4 39.7 9.6 173.4 160.0 
Operating expenses86.1 75.5 77.2 76.7 68.6 315.5 251.0 
DAC amortization expense22.6 22.2 21.4 22.0 22.6 88.2 90.6 
Intangible asset amortization expense4.2 4.2 4.2 4.2 3.2 16.8 13.0 
Interest expense5.9 5.3 4.3 3.9 3.5 19.4 13.9 
Other expense - goodwill and intangible asset impairments4.8 — — — — 4.8 — 
Total benefits, losses and expenses372.3 319.2 351.9 321.7 273.4 1,365.1 1,119.2 
Income (loss) before income taxes(25.9)23.4 (6.0)25.0 57.8 16.5 210.1 
Income tax expense (benefit)(9.2)3.0 (1.8)4.7 10.9 (3.3)39.7 
Net income (loss)$(16.7)$20.4 $(4.2)$20.3 $46.9 $19.8 $170.4 
Other Statistics
Effective tax rate on net investment income20.7 %20.6 %20.6 %20.5 %20.6 %20.6 %20.5 %
Net investment income, after tax$79.5 $77.5 $83.5 $77.8 $90.6 $318.3 $335.7 
Credit loss and intent-to-sell impairments(1)
(0.3)(6.7)(1.9)(1.8)(0.6)(10.7)(10.4)
Catastrophe losses, net of reinsurance, pretax12.4 14.6 45.7 7.3 11.1 80.0 78.2 
Catastrophe losses, net of reinsurance, after tax9.8 11.5 36.2 5.7 8.8 63.2 61.8 
(1) Included in pretax net investment losses.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 5
Consolidated Balance Sheets
($ in millions, except per share data)Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Sept. 30,
202220222022202220212021
Assets
Investments
Fixed maturity securities, available for sale, at fair value$5,185.0 $5,272.1 $5,688.0 $5,987.4 $6,239.3 $6,512.0 
Equity securities, at fair value99.6 113.8 117.3 126.8 147.2 152.3 
Limited partnership interests983.7 997.5 828.4 801.9 712.8 615.4 
Short-term and other investments319.3 254.6 302.7 337.0 350.2 251.6 
Total investments6,587.6 6,638.0 6,936.4 7,253.1 7,449.5 7,531.3 
Cash42.8 36.2 50.1 49.1 133.7 40.2 
Deferred policy acquisition costs330.6 328.8 326.5 323.8 324.4 323.4 
Reinsurance balances receivable506.2 497.5 497.6 510.9 153.2 137.4 
Deposit asset on reinsurance2,516.6 2,525.6 2,507.1 2,491.8 2,481.5 2,477.9 
Intangible assets185.2 192.2 196.4 200.6 145.4 148.7 
Goodwill54.3 56.3 56.3 56.3 43.5 43.5 
Other assets294.9 292.4 283.4 300.5 293.2 318.8 
Separate Account variable annuity assets2,792.3 2,599.6 2,811.2 3,221.9 3,441.0 3,326.8 
Total assets$13,310.5 $13,166.6 $13,665.0 $14,408.0 $14,465.4 $14,348.0 
Liabilities and Shareholders' Equity
Policy liabilities
Investment contract and future policy benefit reserves$6,820.5 $6,902.6 $7,042.0 $7,237.8 $7,051.5 $7,052.5 
Unpaid claims and claim expenses582.2 479.1 488.1 473.8 425.9 440.1 
Unearned premiums266.1 267.9 253.7 245.1 255.7 261.8 
Total policy liabilities7,668.8 7,649.6 7,783.8 7,956.7 7,733.1 7,754.4 
Other policyholder funds953.6 1,000.3 1,027.3 1,009.8 945.9 994.3 
Other liabilities299.5 326.9 347.7 365.4 343.8 402.4 
Short-term debt249.0 249.0 249.0 249.0 249.0 135.0 
Long-term debt249.0 248.9 248.8 253.7 253.6 253.6 
Separate Account variable annuity liabilities2,792.3 2,599.6 2,811.2 3,221.9 3,441.0 3,326.8 
Total liabilities12,212.2 12,074.3 12,467.8 13,056.5 12,966.4 12,866.5 
Common stock, $0.001 par value0.1 0.1 0.1 0.1 0.1 0.1 
Additional paid-in capital502.6 500.4 498.1 496.6 495.3 492.9 
Retained earnings1,512.4 1,542.4 1,535.3 1,553.0 1,547.0 1,513.2 
Accumulated other comprehensive income, net of taxes:
Net unrealized investment gains (losses) on fixed maturity securities(449.6)(496.8)(281.8)13.0 347.1 366.4 
Net reserve remeasurements attributable to discount rates59.0 73.8 (36.9)(205.4)(386.9)(390.1)
Net funded status of benefit plans(8.8)(10.2)(10.2)(10.2)(10.2)(11.2)
Treasury stock, at cost(517.4)(517.4)(507.4)(495.6)(493.4)(489.8)
Total shareholders' equity1,098.3 1,092.3 1,197.2 1,351.5 1,499.0 1,481.5 
Total liabilities and shareholders' equity$13,310.5 $13,166.6 $13,665.0 $14,408.0 $14,465.4 $14,348.0 
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 6
Capital Metrics
($ in millions, except per share data)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Debt and Total Capitalization
Short-term debt due under revolving credit facility(1)
$249.0 $249.0 $249.0 $249.0 $249.0 $249.0 $249.0 
Senior Debt:
4.50% Senior notes due December 1, 2025249.0 248.9 248.8 248.7 248.6 249.0 248.6 
FHLB Borrowing— — — 5.0 5.0 — 5.0 
Total debt498.0 497.9 497.8 502.7 502.6 498.0 502.6 
Shareholders' equity1,098.3 1,092.3 1,197.2 1,351.5 1,499.0 1,098.3 1,499.0 
Total capitalization$1,596.3 $1,590.2 $1,695.0 $1,854.2 $2,001.6 $1,596.3 $2,001.6 
Debt to shareholders' equity45.3 %45.6 %41.6 %37.2 %33.5 %45.3 %33.5 %
Debt to total capitalization31.2 %31.3 %29.4 %27.1 %25.1 %31.2 %25.1 %
Debt to total capitalization excluding net unrealized investment gains (losses) on fixed
maturity securities and net reserve remeasurements attributable to discount rates*
25.1 %24.7 %24.7 %24.6 %24.6 %25.1 %24.6 %
Capital Returned to Shareholders
Number of shares of common stock repurchased (thousands)— 295.4 315.7 59.7 96.1 670.8 140.8 
Common stock repurchased(2)
$— $10.0 $11.8 $2.2 $3.6 $24.0 $5.3 
Cash dividends paid13.1 13.1 13.2 13.2 12.8 52.6 51.4 
Total capital returned to shareholders$13.1 $23.1 $25.0 $15.4 $16.4 $76.6 $56.7 
(1) Amount available for borrowing is $76.0 million; At LIBOR +115 bps; Expires on July 12, 2026.
(2) As of December 31, 2022, the Company's 2022 program had a remaining authorization of $41.3 million..
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 7
Property & Casualty Segment I Statements of Operations
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Underwriting Results
Net premiums written*$153.5 $166.4 $158.0 $139.6 $146.6 $617.5 $607.8 
Net premiums earned155.7 152.4 149.9 150.2 153.3 608.2 617.4 
Losses and loss adjustment expenses
Current accident year before catastrophe losses127.1 105.7 98.5 101.0 98.6 432.3 376.9 
Current accident year catastrophe losses12.4 14.6 45.7 7.3 11.1 80.0 78.2 
Prior years' reserve development(1)
14.0 2.0 6.0 — — 22.0 (7.2)
Total losses and loss adjustment expenses153.5 122.3 150.2 108.3 109.7 534.3 447.9 
Operating expenses, including DAC amortization expense45.8 41.6 40.1 39.4 43.3 166.9 164.8 
Underwriting gain (loss)(43.6)(11.5)(40.4)2.5 0.3 (93.0)4.7 
Net investment income8.5 8.0 7.7 7.2 17.3 31.4 61.1 
Other income0.7 0.7 1.2 0.8 0.5 3.4 4.5 
Interest expense— — — — — — 0.1 
Income (loss) before income taxes(34.4)(2.8)(31.5)10.5 18.1 (58.2)70.2 
Income tax expense (benefit)(9.4)(0.3)(6.1)2.0 3.6 (13.8)13.2 
Net income (loss)(2)
$(25.0)$(2.5)$(25.4)$8.5 $14.5 $(44.4)$57.0 
Core earnings (loss)*$(25.0)$(2.5)$(25.4)$8.5 $14.5 $(44.4)$57.0 
Underwriting Ratios (%)
Losses and loss adjustment expenses
Current accident year before catastrophe losses and prior years' reserve development81.6 69.3 65.7 67.3 64.4 71.3 61.0 
Current accident year catastrophe losses8.0 9.6 30.5 4.8 7.2 13.0 12.7 
Prior years' reserve development(1)
9.0 1.3 4.0 0.0 0.0 3.6 (1.2)
Total losses and loss adjustment expenses98.6 80.2 100.2 72.1 71.6 87.9 72.5 
Expense Ratio29.4 27.3 26.7 26.3 28.3 27.4 26.7 
Combined ratio128.0 107.5 126.9 98.4 99.9 115.3 99.2 
Combined ratio before catastrophe losses120.0 97.9 96.4 93.6 92.7 102.3 86.5 
Combined ratio before catastrophe losses and prior years' reserve development*111.0 96.6 92.4 93.6 92.7 98.7 87.7 
Informational Data
Sales* (Annualized premium)(3)
$16.4 $18.5 $17.4 $14.8 $15.2 $67.1 $67.9 
Risks in force (in thousands)(4)
538 540 545 547 553 538 553 
(1) (Favorable) unfavorable.
(2) Net investment gains (losses) are not allocated by segment.
(3) Horace Mann products.
(4) Includes assumed risks in force of 4 for auto.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 8
Property & Casualty Segment I Auto Products
Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Auto Underwriting Results
Net premiums written*$98.0 $102.5 $99.0 $94.5 $94.4 $394.0 $394.5 
Net premiums earned98.8 97.7 97.1 97.1 98.7 390.7 403.3 
Auto Underwriting Ratios (%)
Loss and loss adjustment expense ratio114.5 83.1 93.2 76.0 79.9 91.8 69.4 
Expense ratio29.1 27.7 26.1 25.8 28.5 27.2 26.7 
Combined ratio143.6 110.8 119.3 101.8 108.4 119.0 96.1 
Prior years' reserve development(1)
14.2 2.0 12.4 0.0 0.0 7.2 (1.2)
Catastrophe losses0.5 2.7 3.9 0.5 0.6 1.8 1.6 
Combined ratio before catastrophe losses and prior years' reserve development*128.9 106.1 103.0 101.3 107.8 110.0 95.7 
Auto Informational Data
Household Retention - LTM(2)
87.0 %86.9 %86.8 %86.5 %86.1 %87.0 %83.7 %
Sales* (Annualized premium)(3)
$12.6 $14.1 $13.6 $11.5 $11.5 $51.8 $52.5 
Risks in force (in thousands)(4)
367 368 371 372 376 367 376 
(1) (Favorable) unfavorable.
(2) Retention is based on retained households. History has been restated to reflect this change.
(3) Horace Mann products.
(4) Includes assumed risks in force of 4.
Property & Casualty Segment I Property and Other Products
Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Property and Other Underwriting Results
Net premiums written*$55.5 $63.9 $59.0 $45.1 $52.2 $223.5 $213.3 
Net premiums earned56.9 54.7 52.8 53.1 54.6 217.5 214.1 
Property and Other Underwriting Ratios (%)
Loss and loss adjustment expense ratio70.9 75.1 113.0 65.0 56.6 80.7 78.5 
Expense ratio30.1 26.8 28.0 27.3 28.1 28.1 26.9 
Combined ratio101.0 101.9 141.0 92.3 84.7 108.8 105.4 
Prior years' reserve development(1)
0.0 0.0 (11.4)0.0 0.0 (2.8)(1.0)
Catastrophe losses21.0 21.8 79.7 12.7 19.3 33.4 33.6 
Combined ratio before catastrophe losses and prior years' development*80.0 80.1 72.7 79.6 65.4 78.2 72.8 
Property and Other Informational Data
Household Retention - LTM(2)
89.6 %89.5 %89.5 %89.3 %88.9 %89.6 %88.3 %
Sales* (Annualized premium)(3)
$3.8 $4.4 $3.8 $3.3 $3.7 $15.3 $15.4 
Risks in force (in thousands)171 172 174 175 177 171 177 
(1) (Favorable) unfavorable.
(2) Retention is based on retained households. History has been restated to reflect this change.
(3) Horace Mann products.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 9
Life & Retirement Segment I Statements of Operations
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net premiums written and contract deposits*$136.8 $138.0 $133.6 $136.4 $135.6 $544.8 $563.0 
Revenues
Net premiums and contract charges earned$35.1 $36.7 $36.4 $35.8 $25.7 $144.0 $143.4 
Net investment income84.3 81.4 88.4 84.2 91.2 338.3 338.6 
Other income3.6 4.1 4.4 4.9 5.1 17.0 20.0 
Total revenues123.0 122.2 129.2 124.9 122.0 499.3 502.0 
Benefits and Expenses
Death benefits / mortality costs(1)
14.9 17.5 14.8 21.4 17.2 68.6 74.5 
Interest credited46.9 44.4 41.2 39.6 9.6 172.1 159.7 
Change in reserves15.5 10.6 13.8 13.0 31.6 52.9 35.4 
Operating expenses27.8 24.1 24.8 25.7 26.9 102.4 100.6 
DAC amortization expense5.9 6.0 5.4 5.7 5.7 23.0 22.1 
Intangible asset amortization expense0.3 0.2 0.3 0.3 0.3 1.1 1.3 
Other expense - goodwill and intangible asset impairments4.8 — — — — 4.8 — 
Total benefits and expenses116.1 102.8 100.3 105.7 91.3 424.9 393.6 
Income before income taxes6.9 19.4 28.9 19.2 30.7 74.4 108.4 
Income tax expense0.1 1.7 5.2 3.6 5.2 10.6 19.3 
Net income(2)
$6.8 $17.7 $23.7 $15.6 $25.5 $63.8 $89.1 
Core earnings*10.6 17.7 23.7 15.6 25.5 67.6 89.1 
Adjusted core earnings*$10.9 $17.9 $23.9 $15.8 $25.8 $68.5 $90.1 
(1) Ordinary life insurance.
(2) Net investment gains (losses) are not allocated by segment.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 10
Life & Retirement Segment I Life Insurance Products
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net premiums written and contract deposits*$31.8 $30.0 $29.4 $24.4 $31.4 $115.6 $114.2 
Net investment income19.1 21.5 18.6 21.5 20.5 22.5 79.7 82.7 
Death benefits / mortality costs(1)
14.9 17.5 14.8 21.4 17.2 68.6 74.5 
Earnings margin (before tax)
Return on net premiums - LTM29.1 %39.4 %40.2 %39.0 %38.5 %29.1 %38.5 %
Informational Data
Lapse ratio - LTM(1)
4.0 %4.0 %3.8 %3.8 %3.5 %4.0 %3.5 %
Annualized sales*$3.1 $2.2 $2.2 $1.8 $2.3 $9.3 $8.7 
Insurance in force$20,030 $19,815 $19,714 $19,595 $19,548 $20,030 $19,548 
Policies in force (in thousands)162 162 162 163 163 162 163 
(1) Ordinary life insurance. Definition changed to death benefits paid plus the change in claims reserve in recast.
Life & Retirement Segment I Retirement Products
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net annuity contract deposits*$105.0 $108.1 $104.2 $112.0 $104.2 $429.3 $448.8 
Net investment income - managed portfolio39.1 36.0 41.2 38.8 42.7 155.1 154.8 
Interest credited18.9 16.5 13.9 12.8 13.1 62.1 51.8 
Net interest margin20.2 19.5 27.3 26.0 29.6 93.0 103.0 
Investment income - deposit asset on reinsurance26.1 26.7 25.8 24.9 26.0 103.5 101.1 
Interest credited - reinsured block27.1 27.1 26.5 26.1 26.7 106.8 104.6 
Net interest margin - reinsured block$(1.0)$(0.4)$(0.7)$(1.2)$(0.7)$(3.3)$(3.5)
Fixed annuity interest spread - Annualized198 193 303 286 344 246 290 
Variable annuity fee margin - Annualized146 155 142 136 148 135 146 
Informational Data
Assets under administration (AUA)
Annuity assets under management(1)
$4,837.9 $4,694.6 $4,841.9 $5,134.5 $5,285.7 $4,837.9 $5,285.7 
Brokerage and advisory assets under administration2,112.6 2,058.3 2,176.3 2,486.0 2,597.9 2,112.6 2,597.9 
Recordkeeping assets under administration1,169.8 1,124.6 1,192.5 1,407.2 1,572.0 1,169.8 1,572.0 
Total AUA$8,120.3 $7,877.5 $8,210.7 $9,027.7 $9,455.6 $8,120.3 $9,455.6 
Total Persistency - LTM93.7 %94.0 %94.1 %94.3 %94.4 %93.7 %94.4 %
Annuity contracts in force (in thousands)228 227 228 229 230 228 230 
Horace Mann Retirement Advantage® contracts in force (in thousands)
17 16 16 16 15 17 15 
(1) Amount reported as of December 31, 2022 excludes $637.7 million of assets under management held under modified coinsurance reinsurance.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 11
Life & Retirement Segment I Account Value Rollforward
($ in millions)Three Months Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Sept. 30,
202220222022202220212021
Fixed Account Annuities(1)
Beginning balance$2,033.2 $2,023.3 $2,012.8 $2,007.4 $2,011.7 $2,004.6 
Reinsurance transfer7.9 (20.8)(16.3)(10.1)(6.2)(21.9)
Deposits52.3 59.8 46.0 46.6 43.4 57.0 
Withdrawals(113.4)(82.6)(74.5)(79.9)(99.0)(72.7)
Net transfers5.9 7.9 15.8 11.0 10.5 8.1 
Interest credited47.1 44.6 41.4 39.9 40.8 40.7 
Other(4.1)1.0 (1.9)(2.1)6.2 (4.1)
Ending balance$2,028.9 $2,033.2 $2,023.3 $2,012.8 $2,007.4 $2,011.7 
Fixed Indexed Account Annuities(2)
Beginning balance$516.9 $518.2 $518.3 $522.6 $513.4 $512.1 
Deposits7.0 8.1 8.0 9.3 9.6 10.3 
Withdrawals(11.4)(10.9)(10.2)(11.9)(10.2)(14.9)
Net transfers(1.4)(0.7)(0.2)(0.1)(0.6)(0.9)
Index credits— — 0.7 2.5 5.4 5.1 
Other(0.8)2.2 1.6 (4.1)5.0 1.7 
Ending balance$510.3 $516.9 $518.2 $518.3 $522.6 $513.4 
Variable Account Annuities(3)
Beginning balance$2,599.6 $2,811.2 $3,221.8 $3,441.0 $3,326.9 $3,256.7 
Deposits55.5 55.9 62.1 66.8 66.2 71.0 
Withdrawals(47.4)(47.3)(44.9)(47.3)(55.5)(45.6)
Net transfers(4.5)(7.2)(15.5)(10.9)(9.9)(7.2)
Fees and charges(10.6)(10.8)(11.2)(11.7)(13.2)(12.4)
Market appreciation (depreciation)199.7 (202.2)(401.1)(216.1)126.5 64.4 
Other— — — — — — 
Ending balance$2,792.3 $2,599.6 $2,811.2 $3,221.8 $3,441.0 $3,326.9 
Held under modified coinsurance agreement637.7 600.8 658.4 767.8 834.6 820.2 
Ending balance net of reinsurance$2,154.6 $1,998.8 $2,152.8 $2,454.0 $2,606.4 $2,506.7 
Fixed and variable annuities in payout phase$144.1 $145.7 $147.6 $149.4 $149.3 $149.9 
(1) Represents account balances having a guarantee of principal and a guaranteed minimum rate of return.
(2) Represents account balances with a contingent return linked to the Standard & Poor's 500 Index and/or the Dow Jones Industrial Average.
(3) Represents account balances invested in various mutual funds at the direction of the contractholders who bear the investment risk.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 12
Supplemental & Group Benefits I Statements of Operations
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Revenues
Net premiums and contract charges earned$68.2 $68.3 $69.1 $69.9 $31.6 $275.5 $128.0 
Net investment income7.9 8.7 9.6 7.1 6.2 33.3 25.2 
Other income(5.0)(5.2)(4.8)1.6 0.7 (13.4)2.6 
Total revenues71.1 71.8 73.9 78.6 38.5 295.4 155.8 
Benefits and Expenses
Benefits, settlement expenses and change in reserves17.9 17.1 24.8 32.6 7.5 92.4 33.2 
Operating expenses (includes DAC amortization expense)27.3 24.4 26.3 25.3 11.0 103.3 43.5 
Intangible asset amortization expense3.9 4.0 3.9 3.9 2.9 15.7 11.7 
Total benefits and expenses49.1 45.5 55.0 61.8 21.4 211.4 88.4 
Income before income taxes22.0 26.3 18.9 16.8 17.1 84.0 67.4 
Income tax expense5.0 5.6 3.8 3.7 3.6 18.1 14.5 
Net income(1)
$17.0 $20.7 $15.1 $13.1 $13.5 $65.9 $52.9 
Core earnings*$17.0 $20.7 $15.1 $13.1 $13.5 $65.9 $52.9 
Adjusted core earnings*$20.1 $23.8 $18.2 $16.2 $15.8 $78.3 $62.2 
Informational Data
Sales*$4.5 $4.4 $3.5 $3.7 $2.3 $16.1 $6.5 
Benefits ratio(2)
26.2 %25.1 %35.8 %46.7 %23.6 %33.5 %25.9 %
Operating expense ratio(3)
38.4 %33.9 %35.6 %32.2 %28.5 %35.0 %27.9 %
Pretax profit margin(3)
30.9 %36.7 %25.6 %21.3 %44.5 %28.5 %43.3 %
(1) Net investment gains (losses) are not allocated by segment.
(2) Benefits ratio measured to net premiums earned.
(3) Operating expense ratio and pretax profit margin measured to total revenues.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
Page 13
Supplemental & Group Benefits I Worksite Direct Products

($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net premiums written and contract deposits*$29.5 $30.3 $30.8 $30.4 $31.2 $121.0 $125.3 
Informational Data
Sales*$3.4 $2.2 $2.2 $1.4 $2.3 $9.2 $6.5 
Benefits ratio(1)
16.9 %25.4 %27.2 %22.2 %22.2 %23.0 %25.4 %
Operating expense ratio(2)
31.9 %26.3 %26.7 %28.5 %27.6 %28.3 %27.0 %
Pretax profit margin(2)
46.6 %46.0 %45.3 %46.2 %46.4 %46.0 %44.4 %
Premium persistency (rolling 12 months)90.4 %91.3 %92.0 %92.1 %92.5 %90.4 %92.5 %
Policies in force (in thousands)268 272 274 275 278 268 278 
(1) Benefits ratio measured to net premiums earned.
(2) Operating expense ratio and pretax profit margin measured to total revenues.
Supplemental & Group Benefits I Employer-Sponsored Products
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net premiums written and contract deposits*$38.4 $38.0 $37.5 $39.8 N.M.$153.7 N.M.
Informational Data
Sales*$1.1 $2.2 $1.3 $2.3 N.M.$6.9 N.M.
Benefits ratio(1)
33.3 %24.8 %42.6 %65.9 %N.M.41.8 %N.M.
Operating expense ratio(2)
45.0 %42.3 %45.8 %35.7 %N.M.41.9 %N.M.
Pretax profit margin(2)
14.8 %26.5 %2.9 %(1.9)%N.M.10.0 %N.M.
Covered lives (in thousands)735 731 714 717 N.M.735 N.M.
N.M. - Not meaningful.
(1) Benefits ratio measured to net premiums earned.
(2) Operating expense ratio and pretax profit margin measured to total revenues.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Corporate & Other Segment I Statements of Operations
($ in millions, amounts are net of consolidating eliminations)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Revenues
Net investment income$(0.5)$(0.5)$(0.5)$(0.6)$(0.6)$(2.1)$(2.4)
Other income0.5 0.8 — 1.2 0.6 2.5 1.9 
Total revenues— 0.3 (0.5)0.6 — 0.4 (0.5)
Expenses
Interest expense5.9 5.3 4.3 3.9 3.5 19.4 13.8 
Other operating expenses1.9 1.7 2.0 2.6 4.2 8.2 10.6 
Total expenses7.8 7.0 6.3 6.5 7.7 27.6 24.4 
Loss before income taxes(7.8)(6.7)(6.8)(5.9)(7.7)(27.2)(24.9)
Income tax benefit(2.4)(1.3)(1.4)(1.1)(1.4)(6.2)(4.9)
Core loss* after tax$(5.4)$(5.4)$(5.4)$(4.8)$(6.3)$(21.0)$(20.0)
Net investment losses, pretax(1)
(12.7)(12.8)(15.5)(15.5)(0.4)(56.5)(11.0)
Tax on net investment losses (1)
(2.7)(2.7)(3.3)(3.3)(0.1)(12.0)(2.4)
Net investment losses, after tax(1)
(10.0)(10.1)(12.2)(12.2)(0.3)(44.5)(8.6)
Net loss$(15.4)$(15.5)$(17.6)$(17.0)$(6.6)$(65.5)$(28.6)
Net Investment Losses
Gross realized gains$0.7 $1.1 $1.3 $5.8 $8.8 $8.9 $25.5 
Gross realized losses, excluding impairment charges(14.0)(2.8)(2.3)(2.4)(5.8)(21.5)(23.8)
Change in fair value of equity securities0.9 (4.4)(12.6)(17.1)(2.8)(33.2)(2.3)
Credit loss and intent-to-sell impairments(0.3)(6.7)(1.9)(1.8)(0.6)(10.7)(10.4)
Total net investment losses$(12.7)$(12.8)$(15.5)$(15.5)$(0.4)$(56.5)$(11.0)
(1) Corporate level transactions, such as net investment gains (losses), are not allocated to the operating segments consistent with how management evaluates the results of those segments.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Investment Earnings Before Taxes Consolidated
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Net Investment Income
Fixed maturity securities(1)
Taxable$60.7 $61.4 $59.3 $55.6 $55.5 $237.0 $223.5 
Tax-exempt2.0 2.5 2.7 3.0 2.9 10.2 12.1 
Total fixed maturity securities62.7 63.9 62.0 58.6 58.4 247.2 235.6 
Equity securities1.9 1.8 4.0 1.3 1.5 9.0 5.3 
Policy loans2.1 2.0 2.0 2.0 2.3 8.1 9.3 
Commercial mortgage loan funds1.4 2.1 1.4 5.9 4.0 10.8 11.6 
Limited partnership interests7.8 2.9 11.9 7.1 23.9 29.7 67.4 
Short-term investments and other0.9 0.9 0.6 0.7 0.8 3.1 2.3 
Investment income76.8 73.6 81.9 75.6 90.9 307.9 331.5 
Investment expense2.7 2.7 2.5 2.6 2.8 10.5 10.1 
Total net investment income - investment portfolio74.1 70.9 79.4 73.0 88.1 297.4 321.4 
Investment income - Deposit asset on reinsurance26.1 26.7 25.8 24.9 26.0 103.5 101.1 
Total gross investment income$100.2 $97.6 $105.2 $97.9 $114.1 $400.9 $422.5 
Investment yield, pretax - annualized(2)
4.25 %4.19 %4.86 %4.58 %5.61 %4.47 %5.12 %
Investment yield, after tax - annualized(2)
3.38 %3.34 %3.86 %3.64 %4.46 %3.56 %4.08 %
Investment yield, excluding limited partnership interests, pretax - annualized(2)
4.01 %4.26 %4.28 %4.29 %4.32 %4.25 %4.27 %
Investment yield, excluding limited partnership interests, after tax - annualized(2)
3.19 %3.40 %3.40 %3.42 %3.44 %3.38 %3.40 %
Portfolio Net Investment Income by Segment
Property & Casualty$8.5 $8.0 $7.7 $7.2 $17.3 $31.4 $61.1 
Life & Retirement58.2 54.6 62.7 59.3 65.2 234.8 237.5 
Supplemental & Group Benefits7.9 8.7 9.6 7.1 6.2 33.3 25.2 
Corporate & Other, including intersegment eliminations(0.5)(0.4)(0.6)(0.6)(0.6)(2.1)(2.4)
Total net investment income$74.1 $70.9 $79.4 $73.0 $88.1 $297.4 $321.4 
Earnings on Limited Partnership Interests by Segment
Property & Casualty$2.4 $1.9 $(0.3)$0.7 $11.2 $4.7 $34.9 
Life & Retirement4.9 0.3 9.9 5.2 11.1 20.3 28.1 
Supplemental & Group Benefits0.5 0.7 2.3 1.2 1.6 4.7 4.4 
Total limited partnership interests$7.8 $2.9 $11.9 $7.1 $23.9 $29.7 $67.4 
(1) Includes income on short-term bonds.
(2) Yields calculated by annualizing the result of year-to-date net investment income divided by the average period-end and beginning of year invested assets at cost, amortized cost, or adjusted carrying value, as applicable.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Composition of Invested Assets Consolidated
($ in millions)December 31,September 30, June 30, March 31, December 31,September 30,
202220222022202220212021
 AmountPercentAmountPercentAmountPercentAmountPercentAmountPercentAmountPercent
Fixed maturity securities, at fair value(1)
$5,185.0 78.7 %$5,272.1 79.4 %$5,688.0 82.0 %$5,987.4 82.5 %$6,239.3 83.7 %$6,512.0 86.5 %
Equity securities, at fair value99.6 1.5 %113.8 1.7 %117.3 1.7 %126.8 1.8 %147.2 2.0 %152.3 2.0 %
Policy loans, at outstanding balance139.3 2.1 %139.8 2.1 %140.8 2.0 %141.0 2.0 %142.1 1.9 %143.9 1.9 %
Commercial mortgage loan funds593.6 9.0 %601.5 9.1 %446.4 6.5 %429.2 5.9 %346.8 4.7 %265.9 3.5 %
Limited partnership interests390.1 5.9 %396.0 6.0 %382.0 5.5 %372.7 5.1 %366.0 4.9 %349.5 4.7 %
Short-term investments and other180.0 2.8 %114.8 1.7 %161.9 2.3 %196.0 2.7 %208.1 2.8 %107.7 1.4 %
Total investments$6,587.6 100.0 %$6,638.0 100.0 %$6,936.4 100.0 %$7,253.1 100.0 %$7,449.5 100.0 %$7,531.3 100.0 %
Asset-backed securities$276.9 5.3 %$290.4 5.5 %$293.6 5.2 %$289.7 4.8 %$274.1 4.4 %$302.7 4.6 %
Collateralized loan obligations677.9 13.1 %679.7 12.9 %680.5 12.0 %679.4 11.3 %669.1 10.7 %687.8 10.6 %
Commercial mortgage-backed securities298.1 5.7 %290.9 5.5 %302.5 5.3 %297.5 5.0 %310.3 5.0 %318.5 4.9 %
Corporate1,935.3 37.3 %1,963.2 37.2 %2,192.0 38.5 %2,338.5 39.1 %2,432.3 39.0 %2,495.6 38.3 %
Municipal1,269.7 24.5 %1,307.9 24.8 %1,426.2 25.1 %1,579.5 26.4 %1,703.4 27.3 %1,775.5 27.3 %
Residential mortgage-backed securities381.9 7.4 %394.6 7.5 %421.9 7.4 %436.9 7.3 %484.2 7.7 %523.0 8.0 %
U.S. Treasuries and government agencies345.2 6.7 %345.4 6.6 %371.3 6.5 %365.9 6.1 %365.9 5.9 %408.9 6.3 %
Total fixed maturity securities$5,185.0 100.0 %$5,272.1 100.0 %$5,688.0 100.0 %$5,987.4 100.0 %$6,239.3 100.0 %$6,512.0 100.0 %
U.S. government/government agencies$949.2 18.3 %$954.5 18.1 %$1,012.3 17.8 %$1,013.3 16.9 %$1,064.8 17.1 %$1,139.0 17.5 %
AAA556.8 10.7 %564.5 10.7 %571.3 10.0 %590.4 9.9 %624.4 10.0 %634.0 9.7 %
AA1,099.0 21.2 %1,088.2 20.6 %1,179.4 20.7 %1,258.7 21.0 %1,260.4 20.2 %1,341.1 20.6 %
A916.4 17.7 %939.9 17.8 %1,020.8 17.9 %1,112.2 18.6 %1,192.8 19.1 %1,203.4 18.5 %
BBB1,249.4 24.1 %1,247.1 23.7 %1,356.6 23.9 %1,419.3 23.7 %1,468.4 23.5 %1,547.5 23.8 %
Not rated(2)
163.3 3.1 %180.0 3.4 %191.3 3.4 %213.9 3.6 %241.7 3.9 %262.8 4.0 %
     Total investment grade$4,934.1 95.1 %$4,974.2 94.3 %$5,331.7 93.7 %$5,607.8 93.7 %$5,852.5 93.8 %$6,127.8 94.1 %
BB and below142.6 2.8 %186.9 3.5 %243.7 4.3 %274.2 4.5 %281.5 4.5 %280.4 4.3 %
Not rated(2)
108.3 2.1 %111.0 2.1 %112.6 2.0 %105.4 1.8 %105.3 1.7 %103.8 1.6 %
     Total below investment grade$250.9 4.9 %$297.9 5.7 %$356.3 6.3 %$379.6 6.3 %$386.8 6.2 %$384.2 5.9 %
 Total fixed maturity securities $5,185.0 100.0 %$5,272.1 100.0 %$5,688.0 100.0 %$5,987.4 100.0 %$6,239.3 100.0 %$6,512.0 100.0 %
Investments by Segment
Property & Casualty$777.3 11.8 %$754.9 11.4 %$792.1 11.4 %$846.0 11.7 %$975.9 13.1 %$985.3 13.1 %
Life & Retirement5,003.7 76.0 %5,064.9 76.3 %5,302.1 76.4 %5,542.8 76.4 %5,790.2 77.7 %5,863.9 77.8 %
Supplemental & Group Benefits804.6 12.2 %813.3 12.2 %830.1 12.0 %863.2 11.9 %681.4 9.2 %680.7 9.1 %
Corporate & Other(3)
2.0 — %4.9 0.1 %12.1 0.2 %1.1 — %2.0 — %1.4 — %
Total investments$6,587.6 100.0 %$6,638.0 100.0 %$6,936.4 100.0 %$7,253.1 100.0 %$7,449.5 100.0 %$7,531.3 100.0 %
(1) Amortized cost, net of $5,756.9, $5,904.1, $6,046.5, $5,970.7, $5,797.7, and $6,045.6, at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, December 31, 2021, and September 30, 2021, respectively.
(2) Securities denoted as not-rated by an NRSRO were classified as investment or non-investment grade according to the securities' respective NAIC designation.
(3) Corporate & Other segment assets are comprised primarily of short-term investments.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures

The following measures are used by the Company's management to evaluate financial performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, are not based on accounting principles generally accepted in the United States of America (non-GAAP) under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statements of Operations or the Consolidated Balance Sheets or are not required to be disclosed in the Notes to the Consolidated Financial Statements or, in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States of America (GAAP). Reconciliations of these measures to the most comparable GAAP measures also follow.
In the opinion of the Company's management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company's periodic results of operations and how management evaluates the Company's financial performance. Internally, the Company's management uses these measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons, which are discussed below.
Some of these measures exclude net investment gains (losses), net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends.
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.
Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company's management.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Reconciliations of GAAP Measures to Non-GAAP Measures
($ in millions after tax)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Reconciliation of Net Income (Loss) to Core Earnings (Loss) and Adjusted Core Earnings (Loss)
Net income (loss)$(16.7)$20.4 $(4.2)$20.3 $46.9 $19.8 $170.4 
Less: Net investment losses(10.0)(10.1)(12.2)(12.2)(0.3)(44.5)(8.6)
Other expense - goodwill and intangible asset impairments(3.8)— — — — (3.8)— 
Core earnings (loss)*$(2.9)$30.5 $8.0 $32.5 $47.2 $68.1 $179.0 
Less: Intangible asset amortization3.4 3.3 3.3 3.3 2.6 13.3 10.3 
Adjusted core earnings (loss)*$0.5 $33.8 $11.3 $35.8 $49.8 $81.4 $189.3 
Pretax net income (loss)$(25.9)$23.4 $(6.0)$25.0 $57.8 $16.5 $210.1 
Less: Pretax net investment losses(12.7)(12.8)(15.5)(15.5)(0.4)(56.5)(11.0)
Other expense - goodwill and intangible asset impairments, pretax(4.8)— — — — (4.8)— 
Pretax core earnings (loss)*$(8.4)$36.2 $9.5 $40.5 $58.2 $77.8 $221.1 
Less: Pretax Intangible asset amortization4.2 4.2 4.2 4.2 3.2 16.8 13.0 
Adjusted pretax core earnings (loss)*$(4.2)$40.4 $13.7 $44.7 $61.4 $94.6 $234.1 
Reconciliation of Net Income (Loss) per Share to Core Earnings (Loss) per Share and Adjusted Core Earnings (Loss) per Share on a Basic and Diluted Basis
Net income (loss) per share (basic)$(0.40)$0.49 $(0.10)$0.48 $1.12 $0.48 $4.06 
Less: Net investment losses(0.25)(0.25)(0.29)(0.29)(0.01)(1.06)(0.21)
Other expense - goodwill and intangible asset impairments(0.09)— — — — (0.09)— 
Core earnings (loss) per share (basic)*$(0.06)$0.74 $0.19 $0.77 $1.13 $1.63 $4.27 
Less: Intangible asset amortization0.08 0.08 0.08 0.08 0.06 0.32 0.24 
Adjusted core earnings per share (basic)*$0.02 $0.82 $0.27 $0.85 $1.19 $1.95 $4.51 
Net income (loss) per share (diluted)N/A$0.49 $(0.10)$0.48 $1.11 $0.47 $4.04 
Less: Net investment lossesN/A(0.24)(0.29)(0.29)(0.01)(1.06)(0.20)
Other expense - goodwill and intangible asset impairmentsN/A— — — — (0.09)— 
Core earnings (loss) per share (diluted)*N/A$0.73 $0.19 $0.77 $1.12 $1.62 $4.24 
Less: Intangible asset amortizationN/A0.09 0.07 0.08 0.06 0.32 0.24 
Adjusted core earnings (loss) per share (diluted)*N/A$0.82 $0.26 $0.85 $1.18 $1.94 $4.48 
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Reconciliations of GAAP Measures to Non-GAAP Measures
($ in millions after tax)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Reconciliation of Life & Retirement Net Income to Core Earnings and Adjusted Core Earnings
Net income$6.8 $17.7 $23.7 $15.6 $25.5 $63.8 $89.1 
Less: Net investment gains (losses)— — — — — — — 
Other expense - goodwill and intangible asset impairments(3.8)— — — — (3.8)— 
Core earnings*$10.6 $17.7 $23.7 $15.6 $25.5 $67.6 $89.1 
Less: Intangible asset amortization0.3 0.2 0.2 0.2 0.3 0.9 1.0 
Adjusted core earnings*$10.9 $17.9 $23.9 $15.8 $25.8 $68.5 $90.1 
Reconciliation of Supplemental & Group Benefits Net Income to Core Earnings and Adjusted Core Earnings
Net income$17.0 $20.7 $15.1 $13.1 $13.5 $65.9 $52.9 
Less: Net investment gains (losses)— — — — — — — 
Other expense - goodwill and intangible asset impairments— — — — — — — 
Core earnings*$17.0 $20.7 $15.1 $13.1 $13.5 $65.9 $52.9 
Less: Intangible asset amortization3.1 3.1 3.1 3.1 2.3 12.4 9.3 
Adjusted core earnings*$20.1 $23.8 $18.2 $16.2 $15.8 $78.3 $62.2 
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Reconciliations of GAAP Measures to Non-GAAP Measures
($ in millions)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Reconciliation of Return on Equity
Average Shareholders' Equity
Shareholders' equity$1,098.3 $1,092.3 $1,197.2 $1,351.5 $1,499.0 $1,098.3 $1,499.0 
Net unrealized investment gains (losses) on fixed maturity securities(449.6)(496.8)(281.8)13.0 347.1 (449.6)347.1 
Net reserve remeasurements attributable to discount rates59.0 73.8 (36.9)(205.4)(386.9)59.0 (386.9)
Five quarter average shareholders' equity1,247.7 1,324.3 1,403.3 1,447.3 1,471.3 1,247.7 1,471.3 
Two quarter average shareholders' equity1,095.3 1,144.8 1,274.4 1,425.3 1,490.3 1,298.7 1,428.5 
Five quarter average shareholders' equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates1,520.6 1,523.8 1,520.0 1,507.5 1,498.4 1,520.6 1,498.4 
Two quarter average shareholders' equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates1,502.1 1,515.6 1,529.9 1,541.4 1,522.0 1,513.9 1,478.5 
Net Income Return on Equity - LTM
Numerator: LTM net income$19.8 $83.4 $83.2 $141.6 $170.4 $19.8 $170.4 
Denominator: Five quarter average shareholders' equity1,247.7 1,324.3 1,403.3 1,447.3 1,471.3 1,247.7 1,471.3 
Net income ROE - LTM1.6 %6.3 %5.9 %9.8 %11.6 %1.6 %11.6 %
Net Income Return on Equity - Annualized
Numerator: Annualized net income$(66.8)$81.6 $(16.8)$81.2 $187.6 $19.8 $170.4 
Denominator: Two quarter average shareholders' equity1,095.3 1,144.8 1,274.4 1,425.3 1,490.3 1,298.7 1,428.5 
Net income ROE - Annualized(6.1)%7.1 %(1.3)%5.7 %12.6 %1.5 %11.9 %
Core Return on Equity - LTM
Numerator: LTM core earnings$68.1 $118.2 $113.1 $155.4 $179.0 $68.1 $179.0 
Denominator: Five quarter average shareholders' equity excluding net unrealized investment
gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates
1,520.6 1,523.8 1,520.0 1,507.5 1,498.4 1,520.6 1,498.4 
Core ROE - LTM4.5 %7.8 %7.4 %10.3 %11.9 %4.5 %11.9 %
Core Return on Equity - Annualized
Numerator: Annualized core earnings$(11.6)$122.0 $32.0 $130.0 $188.8 $68.1 $179.0 
Denominator: Two quarter average shareholders' equity excluding net unrealized investment
gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates
1,502.1 1,515.6 1,529.9 1,541.4 1,522.0 1,513.9 1,478.5 
Core ROE - Annualized(0.8)%8.0 %2.1 %8.4 %12.4 %4.5 %12.1 %
Adjusted Core Return on Equity - LTM
Numerator: LTM adjusted core earnings$81.4 $130.7 $124.9 $166.4 $189.3 $81.4 $189.3 
Denominator: Five quarter average shareholders' equity excluding net unrealized investment
gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates
1,520.6 1,523.8 1,520.0 1,507.5 1,498.4 1,520.6 1,498.4 
Adjusted core ROE - LTM5.4 %8.6 %8.2 %11.0 %12.6 %5.4 %12.6 %
Adjusted Core Return on Equity - Annualized
Numerator: Annualized adjusted core earnings$2.0 $135.2 $45.2 $143.2 $199.2 $81.4 $189.3 
Denominator: Two quarter average shareholders' equity excluding net unrealized investment
gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates
1,502.1 1,515.6 1,529.9 1,541.4 1,522.0 1,513.9 1,478.5 
Adjusted core ROE - Annualized0.1 %8.9 %3.0 %9.3 %13.1 %5.4 %12.8 %
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Reconciliations of GAAP Measures to Non-GAAP Measures
($ in millions)Twelve Months Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,
20222022202220222021
Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share and Tangible Book Value per Common Share
Shareholders' equity$1,098.3 $1,092.3 $1,197.2 $1,351.5 $1,499.0 
Less: Net unrealized investment gains (losses) on fixed maturity securities(449.6)(496.8)(281.8)13.0 347.1 
Less: Net reserve remeasurements attributable to discount rates59.0 73.8 (36.9)(205.4)(386.9)
Adjusted common shareholders' equity1,488.9 1,515.3 1,515.9 1,543.9 1,538.8 
Less: Goodwill54.3 56.3 56.3 56.3 43.5 
Other intangible assets185.2 192.2 196.4 200.6 145.4 
Impact of deferred taxes(1.6)(0.6)(0.8)(0.9)(0.4)
Tangible shareholders' equity$1,251.0 $1,267.4 $1,264.0 $1,287.9 $1,350.3 
Common shares outstanding40.9 40.9 41.2 41.4 41.4 
Book value per share$26.85 $26.71 $29.06 $32.66 $36.21 
Adjusted book value per share*36.40 37.05 36.80 37.31 37.17 
Tangible book value per share*30.58 30.99 30.69 31.12 32.62 
Reconciliation of Debt to Total Capitalization Ratio to Debt to Total Capitalization Ratio, Excluding Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities and Net Reserve Remeasurements Attributable to Discount Rates
Debt to total capitalization
Numerator: Total debt$498.0 $497.9 $497.8 $502.7 $502.6 
Denominator:
Total debt498.0 497.9 497.8 502.7 502.6 
Common shareholders' equity1,098.3 1,092.3 1,197.2 1,351.5 1,499.0 
Total capital1,596.3 1,590.2 1,695.0 1,854.2 2,001.6 
Debt to total capitalization31.2 %31.3 %29.4 %27.1 %25.1 %
Debt to total capitalization excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates
Numerator: Total debt$498.0 $497.9 $497.8 $502.7 $502.6 
Denominator:
Total debt498.0 497.9 497.8 502.7 502.6 
Common shareholders' equity1,098.3 1,092.3 1,197.2 1,351.5 1,499.0 
Less: Net unrealized investment gains (losses) on fixed maturity securities(449.6)(496.8)(281.8)13.0 347.1 
         Net reserve remeasurements attributable to discount rates59.0 73.8 (36.9)(205.4)(386.9)
Total capital excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates1,986.9 2,013.2 2,013.7 2,046.6 2,041.4 
Debt to total capitalization excluding net unrealized investment gains (losses) on fixed maturity
securities and net reserve remeasurements attributable to discount rates*
25.1 %24.7 %24.7 %24.6 %24.6 %
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Reconciliations of GAAP Measures to Non-GAAP Measures
($ in millions after tax)Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Reconciliation of Investment Yield, Excluding Limited Partnership Interests
Numerator:
Total net investment income, pretax$100.2 $97.6 $105.2 $97.9 $114.1 $400.9 $422.5 
Less: Investment income on deposit asset on reinsurance26.1 26.7 25.8 24.9 26.0 103.5 101.1 
Investment income on limited partnership interests(1)
7.8 2.9 11.9 7.1 23.9 29.7 67.4 
FHLB interest credited2.0 3.6 1.6 0.8 0.8 8.0 2.9 
Adjusted net investment income, pretax64.3 64.4 65.9 65.1 63.4 259.7 251.1 
Denominator:
Adjusted investment portfolio, beginning of period(2)
$6,031.5 $6,046.4 $6,081.2 $5,859.4 $5,882.9 $5,859.4 $5,815.6 
Adjusted investment portfolio, end of period(2)
5,976.9 6,031.5 6,046.4 6,081.2 5,859.4 5,976.9 5,859.4 
Average adjusted investment portfolio for the period6,004.2 6,039.0 6,063.8 5,970.3 5,871.2 5,918.2 5,837.5 
Investment yield, excluding limited partnership interests, pretax - annualized(3)
4.01 %4.26 %4.35 %4.36 %4.32 %4.25 %4.27 %
Investment yield, excluding limited partnership interests, after tax - annualized(3)(4)3.19 %3.40 %3.46 %3.47 %3.44 %3.38 %3.40 %
(1) Excludes investment income on commercial mortgage loan funds.
(2) Represents the carrying amount of the total investment portfolio as presented in the Consolidated Balance Sheets adjusted to exclude the carrying amount of FHLB funding agreements, the carrying amount of limited partnership interests (excluding the carrying amount of commercial mortgage loan funds) and gross unrealized investment gains (losses) on fixed maturity securities.
(3) For each of the three month periods presented, investment yields are calculated by annualizing the result of year-to-date net investment income divided by the average quarter-end and beginning of quarter carrying amount of invested assets. For the periods ended December 31, 2022 and 2021 presented, investment yields are calculated by (i) summing the investment yields for each respective three month period applicable to the period and (ii) dividing that sum per the calculation in (i) by four.
(4) Investment yield, excluding limited partnership interests, after tax - annualized is calculated using the effective tax rate in effect for each applicable period.
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Reconciliations of GAAP Measures to Non-GAAP Measures
Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31, Dec. 31,
2022202220222022202120222021
Operating Ratios - Property & Casualty
Property & Casualty
Claims and claims expense ("loss") ratio98.6 80.2 100.2 72.1 71.6 87.9 72.5 
Expense ratio29.4 27.3 26.7 26.3 28.3 27.4 26.7 
Combined ratio128.0 107.5 126.9 98.4 99.9 115.3 99.2 
Loss ratio98.6 80.2 100.2 72.1 71.6 87.9 72.5 
Less: Effect of catastrophe losses8.0 9.6 30.5 4.8 7.2 13.0 12.7 
Effect of prior years' reserve development(1)
9.0 1.3 4.0 — — 3.6 (1.2)
Underlying loss ratio*81.6 69.3 65.7 67.3 64.4 71.3 61.0 
Reconciliation of combined ratio to underlying combined ratio
Combined ratio128.0 107.5 126.9 98.4 99.9 115.3 99.2 
Effect of catastrophe losses8.0 9.6 30.5 4.8 7.2 13.0 12.7 
Effect of prior years' reserve development(1)
9.0 1.3 4.0 — — 3.6 (1.2)
Underlying combined ratio*111.0 96.6 92.4 93.6 92.7 98.7 87.7 
Auto
Claims and claims expense ("loss") ratio114.5 83.1 93.2 76.0 79.9 91.8 69.4 
Expense ratio29.1 27.7 26.1 25.8 28.5 27.2 26.7 
Combined ratio143.6 110.8 119.3 101.8 108.4 119.0 96.1 
Loss ratio114.5 83.1 93.2 76.0 79.9 91.8 69.4 
Less: Effect of catastrophe losses0.5 2.7 3.9 0.5 0.6 1.8 1.6 
Effect of prior years' reserve development(1)
14.2 2.0 12.4 — — 7.2 (1.2)
Underlying loss ratio*99.8 78.4 76.9 75.5 79.3 82.8 69.0 
Reconciliation of combined ratio to underlying combined ratio
Combined ratio143.6 110.8 119.3 101.8 108.4 119.0 96.1 
Effect of catastrophe losses0.5 2.7 3.9 0.5 0.6 1.8 1.6 
Effect of prior years' reserve development(1)
14.2 2.0 12.4 — — 7.2 (1.2)
Underlying combined ratio*128.9 106.1 103.0 101.3 107.8 110.0 95.7 
(1) (Favorable) unfavorable.
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Reconciliations of GAAP Measures to Non-GAAP Measures
Three Months Ended Year Ended
Dec. 31,Sept. 30, Jun. 30, Mar. 31, Dec. 31,Dec. 31,Dec. 31,
2022202220222022202120222021
Operating Ratios - Property & Casualty (Cont.)
Property
Claims and claims expense ("loss") ratio70.9 75.1 113.0 65.0 56.6 80.7 78.5 
Expense ratio30.1 26.8 28.0 27.3 28.1 28.1 26.9 
Combined ratio101.0 101.9 141.0 92.3 84.7 108.8 105.4 
Loss ratio70.9 75.1 113.0 65.0 56.6 80.7 78.5 
Less: Effect of catastrophe losses21.0 21.8 79.7 12.7 19.3 33.4 33.6 
Effect of prior years' reserve development(1)
— — (11.4)— — (2.8)(1.0)
Underlying loss ratio*49.9 53.3 44.7 52.3 37.3 50.1 45.9 
Reconciliation of combined ratio to underlying combined ratio
Combined ratio101.0 101.9 141.0 92.3 84.7 108.8 105.4 
Effect of catastrophe losses21.0 21.8 79.7 12.7 19.3 33.4 33.6 
Effect of prior years' reserve development(1)
— — (11.4)— — (2.8)(1.0)
Underlying combined ratio*80.0 80.1 72.7 79.6 65.4 78.2 72.8 
(1) (Favorable) unfavorable.
Horace Mann Educators Corporation I Fourth-Quarter 2022 Investor Supplement - Recast
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Ratings and Contact Information

Address:March 31, 2023Insurance Financial Strength Ratings (Outlook)Debt Ratings (Outlook)Affirmed/Reviewed
1 Horace Mann PlazaA.M. Best
Springfield, IL 62715HMEC (parent company)N.A.bbb(stable)7/28/2022
HMEC's Life & Retirement subsidiariesA(stable)N.A.7/28/2022
Corporate Website:HMEC's Property & Casualty subsidiariesA(stable)N.A.7/28/2022
www.horacemann.comHMEC's Supplemental & Group Benefits subsidiaries
Madison National Life Insurance CompanyA-(stable)N.A.7/28/2022
Contact:National Teachers Associates Life Insurance CompanyA(stable)N.A.7/28/2022
Heather J. WietzelFitchA(stable)BBB(stable)10/18/2022
Vice PresidentMoody's
Investor Relations   HMEC (parent company)Baa2(stable)8/3/2022
Phone: 217-788-5144   HMEC's Life GroupA2(stable)7/27/2022
[email protected]   HMEC's P&C GroupA2(stable)8/3/2022
S&PA(stable)BBB(stable)2/14/2022
Transfer Agent
American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219
Phone: 800-937-5449
E-mail: [email protected]
Corporate Website: https://us.astfinancial.com/ShareHolder/GeneralAccountInformation


COMMON STOCK
Common stock of Horace Mann Educators Corporation is traded on the New York Stock Exchange under the symbol "HMN".

This report is for information purposes only. It should be read in conjunction with documents filed by Horace Mann Educators Corporation with the U.S. Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
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