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 http://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.

                                     - 2 -



                    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.

                                     - 5 -

                          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)

                                     - 6 -


DATASOURCE: Horace Mann Educators Corporation



CONTACT:  Dwayne D. Hallman, Senior Vice President - Finance of  Horace

Mann Educators Corporation, [phone]



Web Site:  http://www.horacemann.com/ 

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