Horace Mann Educators (HMN) 10-Q 2005 Q2 Quarterly report

Exhibit 11

Horace Mann Educators Corporation

Computation of Net Income per Share

For the Three and Six Months Ended June 30, 2005 and 2004

(Amounts in thousands, except per share data)

	Three Months Ended June 30,				Six Months Ended June 30,
	2005		2004		2005		2004
Basic - assumes no dilution:
Net income for the period	$	33,507	$	18,937	$	60,155	$	40,628
Weighted average number of common shares outstanding during the period		42,886		42,732		42,876		42,727
Net income per share – basic	$	0.78	$	0.44	$	1.40	$	0.95
Diluted - assumes full dilution:
Net income for the period	$	33,507	$	18,937	$	60,155	$	40,628
Interest expense, net of tax, on dilutive Senior Convertible Notes		685		685		1,369		1,369
Adjusted net income for the period	$	34,192	$	19,622	$	61,524	$	41,997
Weighted average number of common shares outstanding during the period		42,886		42,732		42,876		42,727
Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities:
Stock options		84		58		101		46
Common stock units related to Deferred Equity Compensation Plan for Directors		184		151		184		151
Common stock units related to Deferred Compensation Plan for Employees		146		27		146		27
Restricted common stock units related to Incentive Compensation Plan		189		—		119		—
Weighted average number of common equivalent shares to reflect the dilutive effect of Senior Convertible Notes		4,343		4,343		4,343		4,343
Total common and common equivalent shares adjusted to calculate diluted earnings per share		47,832		47,311		47,769		47,294
Net income per share – diluted	$	0.72	$	0.41	$	1.29	$	0.89