Q4 2021 Investor Supplement

Page

Consolidated Financial Highlights

3

Selected Financial Data - Five Year History

4

Consolidated Statements of Operations

5

Consolidated Balance Sheets

6

Capital Metrics

7

Property & Casualty Segment

Statements of Operations

8

Underwriting Results and Informational Data

9

Supplemental Segment and Informational Data

10

Retirement Segment

Statements of Operations and Informational Data

11

Account Value Rollforward

12

Life Segment

Statements of Operations and Informational Data

13

Corporate & Other Segment

Statements of Operations

14

Investment Earnings Before Taxes Consolidated

15

Composition of Invested Assets Consolidated

16

Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures

17

Reconciliation of Net Income to Core Earnings

18

Reconciliation of Retuon Equity

19

Reconciliation of Book Value per Common Share to Book Value per Common Share, Excluding Net Unrealized Gains on Fixed Maturity Securities

20

Reconciliation of Debt to Total Capitalization to Debt to Total Capitalization, Excluding Net Unrealized Gains on Fixed Maturity Securities

Reconciliation of Investment Yield on Fixed Income Portfolio

21

Operating Ratios - Property & Casualty

22

Ratings and Contact Information

24

($ 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,

2021

2021

2021

2021

2020

2021

2020

Premiums and contract charges earned

$

210.8

$

225.4

$

225.8

$

227.6

$

233.7

$

889.6

$

930.7

Net investment income

114.1

103.7

109.2

95.5

101.2

422.5

357.6

Net investment (losses) gains

(0.4)

(6.5)

4.9

(9.0)

10.5

(11.0)

(2.3)

Other income

6.9

7.0

7.2

7.9

6.9

29.0

24.4

Total revenues

$

331.4

$

329.6

$

347.1

$

322.0

$

352.3

$

1,330.1

$

1,310.4

Net income

$

40.5

$

16.3

$

46.7

$

39.3

$

47.8

$

142.8

$

133.3

Core earnings*

40.8

21.4

42.8

46.4

47.5

151.4

143.1

At Period End

Total assets

$

14,383.9

$

14,266.0

$

14,190.1

$

13,745.5

$

13,471.8

$

14,383.9

$

13,471.8

Total policy liabilities

7,258.8

7,270.5

7,211.7

7,182.8

7,148.6

7,258.8

7,148.6

Debt

502.6

388.6

413.5

437.4

437.3

502.6

437.3

Shareholders' equity

1,807.4

1,796.4

1,816.6

1,692.9

1,790.1

1,807.4

1,790.1

Per Share and Shares Data (in millions)

Net income per share (basic)

$

0.96

$

0.39

$

1.11

$

0.94

$

1.14

$

3.40

$

3.18

Core earnings per share (basic)*

0.97

0.51

1.02

1.11

1.13

3.61

3.41

Net income per share (diluted)

0.96

0.39

1.11

0.93

1.13

3.39

3.17

Core earnings per share (diluted)*

0.97

0.50

1.02

1.10

1.13

3.59

3.40

Weighted average shares (basic)

42.0

42.0

42.0

41.9

42.0

42.0

41.9

Dilutive effect of share equivalents

0.2

0.2

0.1

0.2

0.2

0.2

0.1

Weighted average shares (diluted)

42.2

42.2

42.1

42.1

42.2

42.2

42.0

Book value per share

$

43.66

$

43.30

$

43.78

$

40.83

$

43.22

$

43.66

$

43.22

Per share impact of net unrealized investment gains on fixed maturity securities

7.02

7.40

8.00

5.88

8.84

7.02

8.84

Book value per share excluding net unrealized investment gains on fixed maturity securities*

$

36.64

$

35.90

$

35.78

$

34.95

$

34.38

$

36.64

$

34.38

Dividends paid per share

$

0.31

$

0.31

$

0.31

$

0.31

$

0.30

$

1.24

$

1.20

Financial Ratios

Net Income ROE - LTM(1)

8.0 %

8.5 %

9.8 %

9.3 %

8.1 %

8.0 %

8.1 %

Net Income ROE - Annualized

9.0 %

3.6 %

10.6 %

9.0 %

10.9 %

7.9 %

7.9 %

Core ROE - LTM*

10.3 %

10.9 %

12.1 %

11.2 %

10.5 %

10.3 %

10.5 %

Core ROE - Annualized*

10.9 %

5.8 %

11.7 %

12.9 %

13.5 %

10.3 %

10.4 %

Debt to total capitalization excluding net unrealized investment gains on fixed maturity securities*

24.9 %

20.7 %

21.8 %

23.2 %

23.5 %

24.9 %

23.5 %

Investment yield on fixed income portfolio, pretax - annualized*

4.27 %

4.30 %

4.25 %

4.16 %

4.20 %

4.25 %

4.23 %

Horace Mann Educators Corporation I Fourth-Quarter 2021 Investor Supplement

Page 3

($ in millions, except per share data)

Year Ended December 31,

2021

2020

2019(1)

2018

2017

Consolidated Statement of Operations Data

Premiums and contract charges earned

$

889.6

$

930.7

$

898.0

$

817.3

$

794.7

Net investment income

422.5

357.6

365.1

376.5

373.6

Net income

142.8

133.3

184.4

18.3

169.4

Core earnings*

151.4

143.1

92.2

28.4

72.1

Net income ROE - Annualized

7.9 %

7.9 %

12.9 %

1.3 %

12.1 %

Core ROE - Annualized*

10.3 %

10.4 %

7.3 %

2.4 %

6.2 %

At Period End

Total assets

$

14,383.9

$

13,471.8

$

12,478.7

$

11,031.9

$

11,198.3

Total policy liabilities

7,258.8

7,148.6

6,956.5

6,384.1

6,182.0

Debt

502.6

437.3

433.0

297.7

297.5

Shareholders' equity

1,807.4

1,790.1

1,567.3

1,290.6

1,501.6

Per Share and Shares Data (in millions)

Net income per share (basic)

$

3.40

$

3.18

$

4.42

$

0.44

$

4.10

Core earnings per share (basic)*

3.61

3.41

2.21

0.68

1.75

Net income per share (diluted)

3.39

3.17

4.40

0.44

4.08

Core earnings per share (diluted)*

3.59

3.40

2.20

0.68

1.74

Weighted average shares (basic)

42.0

41.9

41.7

41.6

41.4

Weighted average shares (diluted)

42.2

42.0

41.9

41.9

41.6

Book value per share

$

43.66

$

43.22

$

38.01

$

31.50

$

36.88

Book value per share excluding net unrealized investment gains on fixed maturity securities*

36.64

34.38

32.42

29.13

29.51

Dividends paid per share

$

1.24

$

1.20

$

1.15

$

1.14

$

1.10

Segment Information

Insurance premiums written and contract deposits

Property & Casualty

$

607.8

$

635.5

$

683.1

$

681.5

$

662.8

Supplemental

125.3

130.3

65.7

-

-

Retirement

448.8

429.1

419.4

439.1

453.1

Life

116.9

110.1

113.2

114.4

111.2

Total

$

1,298.8

$

1,305.0

$

1,281.4

$

1,235.0

$

1,227.1

Core earnings (loss)

Property & Casualty

$

57.0

$

76.5

$

54.3

$

(14.3)

$

17.2

Supplemental

46.3

43.1

18.0

-

-

Retirement

52.0

28.2

23.2

41.7

48.9

Life

16.1

10.4

17.6

18.8

17.3

Corporate & Other

(20.0)

(15.1)

(20.9)

(17.8)

(11.3)

Total

$

151.4

$

143.1

$

92.2

$

28.4

$

72.1

Horace Mann Educators Corporation I Fourth-Quarter 2021 Investor Supplement

Page 4

($ in millions)

Three Months Ended

Year Ended

Dec. 31,

Sept. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Dec. 31,

Dec. 31,

2021

2021

2021

2021

2020

2021

2020

Revenues

Premiums and contract charges earned

$

210.8

$

225.4

$

225.8

$

227.6

$

233.7

$

889.6

$

930.7

Net investment income

114.1

103.7

109.2

95.5

101.2

422.5

357.6

Net investment (losses) gains

(0.4)

(6.5)

4.9

(9.0)

10.5

(11.0)

(2.3)

Other income

6.9

7.0

7.2

7.9

6.9

29.0

24.4

Total revenues

331.4

329.6

347.1

322.0

352.3

1,330.1

1,310.4

Benefits, losses and expenses

Benefits, claims and settlement expenses

171.5

164.8

147.1

134.3

135.8

617.7

568.9

Interest credited

10.7

51.9

51.2

50.6

51.3

164.4

204.6

Operating expenses

68.7

64.3

60.5

58.0

64.7

251.5

237.8

DAC amortization expense, excluding DAC unlocking

23.9

23.7

23.9

24.7

25.2

96.2

102.0

DAC unlocking

0.3

(0.8)

(0.4)

(0.6)

(0.3)

(1.5)

(2.1)

Intangible asset amortization expense

3.2

3.3

3.2

3.3

3.5

13.0

14.4

Interest expense

3.5

3.4

3.5

3.5

3.5

13.9

15.2

Other expense - goodwill and intangible asset impairments

-

-

-

-

10.0

-

10.0

Total benefits, losses and expenses

281.8

310.6

289.0

273.8

293.7

1,155.2

1,150.8

Income before income taxes

49.6

19.0

58.1

48.2

58.6

174.9

159.6

Income tax expense

9.1

2.7

11.4

8.9

10.8

32.1

26.3

Net income

$

40.5

$

16.3

$

46.7

$

39.3

$

47.8

$

142.8

$

133.3

Other Statistics

Effective tax rate on net investment income

20.6 %

20.5 %

20.5 %

20.4 %

20.5 %

20.5 %

20.4 %

Net investment income, after tax

$

90.6

$

82.4

$

86.8

$

75.9

$

80.5

$

335.7

$

284.6

Catastrophe losses, net of reinsurance, pretax

11.1

38.6

17.5

11.0

6.1

78.2

84.4

Catastrophe losses, net of reinsurance, after tax

8.8

30.5

13.8

8.7

4.8

61.8

66.7

Impairments on investments(1)

(0.6)

(6.6)

-

(3.2)

-

(10.4)

(5.3)

Horace Mann Educators Corporation I Fourth-Quarter 2021 Investor Supplement

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