Horace Mann Educators (HMN) 10-K 2008 FY Annual report

Exhibit 99.2

UPDATED NUMERICAL EXHIBITS TO THE COMPANY’S EARNINGS RELEASE

FOR THE YEAR ENDED DECEMBER 31, 2008

HORACE MANN EDUCATORS CORPORATION

Digest of Earnings and Highlights (Unaudited)

(Dollars in Millions, Except Per Share Data)

	Quarter Ended December 31,								Year Ended December 31,
	2008			2007			% Change		2008			2007			% Change
DIGEST OF EARNINGS
Net income	$	22.9		$	18.0		27.2	%	$	10.9		$	82.8		-86.8	%
Net income per share:
Basic	$	0.59		$	0.42		40.5	%	$	0.27		$	1.92		-85.9	%
Diluted (A)	$	0.58		$	0.41		41.5	%	$	0.27		$	1.86		-85.5	%
Weighted average number of shares and equivalent shares (in millions) (B):
Basic		39.1			43.0		-9.1	%		39.8			43.1		-7.7	%
Diluted (A)		39.8			43.9		-9.3	%		40.6			44.6		-9.0	%
HIGHLIGHTS
Operations
Insurance premiums written and contract deposits	$	239.1		$	239.2		0.0	%	$	960.1		$	974.7		-1.5	%
Return on equity (C)										1.9	%		12.3	%	N.M.
Property & Casualty GAAP combined ratio		92.9	%		91.9	%	N.M.			100.7	%		91.9	%	N.M.
Effect of catastrophe costs on the Property & Casualty combined ratio		7.2	%		4.3	%	N.M.			13.7	%		4.4	%	N.M.
Experienced agents										524			569		-7.9	%
Financed agents										146			221		-33.9	%
Total Horace Mann agents										670			790		-15.2	%
Licensed producers										394	��		253		55.7	%
Total points of distribution (D)										1,064			1,043		2.0	%
Additional Per Share Information
Dividends paid	$	0.0525		$	0.105		-50.0	%	$	0.3675		$	0.42		-12.5	%
Book value (E)									$	11.49		$	16.41		-30.0	%
Financial Position
Total assets									$	5,507.7		$	6,259.3		-12.0	%
Short-term debt										38.0			—		N.M.
Long-term debt										199.5			199.5		—
Total shareholders’ equity										448.8			693.3		-35.3	%

N.M. - Not meaningful.

(A) Effective December 31, 2004, the Company adopted EITF Consensus 04-8, “The Effect of Contingently Convertible Instruments on Diluted Earnings per Share”. Diluted per share information for all periods is presented on a basis consistent with this consensus. On May 14, 2007, the Company redeemed all remaining Senior Convertible Notes. For the year ended December 31, 2007, the Senior Convertible Notes represented 0.4 million equivalent shares and had after tax interest expense of $0.3 million.

(B) In November and December 2007, the Company repurchased 1,111,600 shares of its common stock at an aggregate cost of $20.7 million, or an average cost of $18.66 per share. 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.

(C) Based on trailing 12-month net income and average quarter-end shareholders’ equity.

(D) Includes licensed producers working in Horace Mann agents’ offices and excludes independent agents.

(E) Book value per share excluding the fair value adjustment for investments was $16.15 at December 31, 2008 and $16.47 at December 31, 2007. Ending shares outstanding were 39,061,788 at December 31, 2008 and 42,240,484 at December 31, 2007.

- 1 -

HORACE MANN EDUCATORS CORPORATION

Statements of Operations and Supplemental GAAP Consolidated Data (Unaudited)

(Dollars in Millions)

	Quarter Ended December 31,								Year Ended December 31,
	2008			2007			% Change		2008			2007			% Change
STATEMENTS OF OPERATIONS
Insurance premiums and contract charges earned	$	168.8		$	166.3		1.5	%	$	658.5		$	654.3		0.6	%
Net investment income		58.1			57.5		1.0	%		230.3			223.8		2.9	%
Net realized investment losses		(8.2	)		(5.5	)	49.1	%		(63.9	)		(3.4	)	N.M.
Other income		2.4			3.3		-27.3	%		9.9			12.3		-19.5	%
Total revenues		221.1			221.6		-0.2	%		834.8			887.0		-5.9	%
Benefits, claims and settlement expenses		111.3			101.5		9.7	%		471.5			408.5		15.4	%
Interest credited		33.9			32.2		5.3	%		131.8			127.2		3.6	%
Policy acquisition expenses amortized		23.1			20.0		15.5	%		79.1			75.7		4.5	%
Operating expenses		33.7			37.8		-10.8	%		132.4			139.0		-4.7	%
Amortization of intangible assets		1.2			1.4		-14.3	%		5.3			5.4		-1.9	%
Interest expense		4.3			3.5		22.9	%		14.5			14.1		2.8	%
Total benefits, losses and expenses		207.5			196.4		5.7	%		834.6			769.9		8.4	%
Income before income taxes		13.6			25.2		-46.0	%		0.2			117.1		-99.8	%
Income tax expense (benefit)		(9.3	)		7.2		N.M.			(10.7	)		34.3		N.M.
Net income	$	22.9		$	18.0		27.2	%	$	10.9		$	82.8		-86.8	%
ANALYSIS OF PREMIUMS WRITTEN AND CONTRACT DEPOSITS
Property & Casualty
Automobile and property (voluntary)	$	134.8		$	129.5		4.1	%	$	542.2		$	530.6		2.2	%
Involuntary and other property & casualty		2.3			2.6		-11.5	%		3.7			4.6		-19.6	%
Total Property & Casualty		137.1			132.1		3.8	%		545.9			535.2		2.0	%
Annuity deposits		73.9			78.8		-6.2	%		311.7			337.1		-7.5	%
Life		28.1			28.3		-0.7	%		102.5			102.4		0.1	%
Total	$	239.1		$	239.2		0.0	%	$	960.1		$	974.7		-1.5	%
ANALYSIS OF SEGMENT NET INCOME (LOSS)
Property & Casualty	$	14.5		$	16.1		-9.9	%	$	28.1		$	61.2		-54.1	%
Annuity		2.9			3.9		-25.6	%		17.3			17.6		-1.7	%
Life		4.2			4.6		-8.7	%		16.4			17.3		-5.2	%
Corporate and other (A)		1.3			(6.6	)	N.M.			(50.9	)		(13.3	)	N.M.
Net income		22.9			18.0		27.2	%		10.9			82.8		-86.8	%
Catastrophe costs, after tax, included above (B)		(6.5	)		(3.8	)	71.1	%		(48.1	)		(15.3	)	214.4	%

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 December 31,								Year Ended December 31,
		2008			2007			% Change		2008			2007			% Change
PROPERTY & CASUALTY
Premiums written		$	137.1		$	132.1		3.8	%	$	545.9		$	535.2		2.0	%
Premiums earned			139.1			135.9		2.4	%		541.1			535.1		1.1	%
Net investment income			8.7			10.2		-14.7	%		35.7			38.0		-6.1	%
Other income			0.4			0.9		-55.6	%		1.5			2.9		-48.3	%
Losses and loss adjustment expenses (LAE)			95.9			90.1		6.4	%		416.1			360.4		15.5	%
Operating expenses (includes policy acquisition expenses amortized)			33.2			34.8		-4.6	%		128.5			130.9		-1.8	%
Income before tax			19.1			22.1		-13.6	%		33.7			84.7		-60.2	%
Net income			14.5			16.1		-9.9	%		28.1			61.2		-54.1	%
Net investment income, after tax			7.2			8.3		-13.3	%		29.8			31.3		-4.8	%
Catastrophe costs, after tax (A)			6.5			3.8		71.1	%		48.1			15.3		214.4	%
Catastrophe losses and LAE, before tax			9.9			5.9		67.8	%		73.9			23.6		213.1	%
Reinsurance reinstatement premiums, before tax			—			—		—			—			—		—
Operating statistics:
Loss and loss adjustment expense ratio			69.0	%		66.3	%	N.M.			76.9	%		67.4	%	N.M.
Expense ratio			23.9	%		25.6	%	N.M.			23.8	%		24.5	%	N.M.
Combined ratio			92.9	%		91.9	%	N.M.			100.7	%		91.9	%	N.M.
Effect of catastrophe costs on the combined ratio			7.2	%		4.3	%	N.M.			13.7	%		4.4	%	N.M.
Automobile and property detail:
Premiums written (voluntary) (B)		$	134.8		$	129.5		4.1	%	$	542.2		$	530.6		2.2	%
Automobile	��		92.6			90.7		2.1	%		367.8			365.3		0.7	%
Property			42.2			38.8		8.8	%		174.4			165.3		5.5	%
Premiums earned (voluntary) (B)			136.1			132.5		2.7	%		537.8			525.1		2.4	%
Automobile			91.9			91.3		0.7	%		365.5			364.6		0.2	%
Property			44.2			41.2		7.3	%		172.3			160.5		7.4	%
Policies in force (voluntary) (in thousands)											798			801		-0.4	%
Automobile											535			535		—
Property											263			266		-1.1	%
Policy renewal rate (voluntary)
Automobile (6 months)											91.1	%		91.0	%	N.M.
Property (12 months)											88.6	%		88.3	%	N.M.
Voluntary automobile operating statistics:
Loss and loss adjustment expense ratio			67.0	%		70.2	%	N.M.			68.0	%		69.7	%	N.M.
Expense ratio			23.4	%		25.3	%	N.M.			23.5	%		24.5	%	N.M.
Combined ratio			90.4	%		95.5	%	N.M.			91.5	%		94.2	%	N.M.
Effect of catastrophe costs on the combined ratio			0.0	%		0.3	%	N.M.			1.2	%		0.5	%	N.M.
Total property operating statistics:
Loss and loss adjustment expense ratio			74.7	%		58.2	%	N.M.			97.2	%		60.4	%	N.M.
Expense ratio			24.8	%		26.7	%	N.M.			24.2	%		25.2	%	N.M.
Combined ratio			99.5	%		84.9	%	N.M.			121.4	%		85.6	%	N.M.
Effect of catastrophe costs on the combined ratio			21.6	%		12.9	%	N.M.			40.4	%		13.6	%	N.M.
Prior years’ reserves favorable (adverse) development, pretax
Voluntary automobile		$	6.3		$	5.1		23.5	%	$	16.0		$	12.3		30.1	%
Total property			(0.6	)		0.1		N.M.			(0.5	)		7.7		N.M.
Other property and casualty			1.0			—		N.M.			2.6			—		N.M.
Total			6.7			5.2		28.8	%		18.1			20.0		-9.5	%

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 December 31,								Year Ended December 31,
	2008			2007			% Change		2008			2007			% Change
ANNUITY
Contract deposits	$	73.9		$	78.8		-6.2	%	$	311.7		$	337.1		-7.5	%
Variable		31.8			38.7		-17.8	%		134.4			149.9		-10.3	%
Fixed		42.1			40.1		5.0	%		177.3			187.2		-5.3	%
Contract charges earned		3.9			5.4		-27.8	%		17.7			21.8		-18.8	%
Net investment income		34.7			32.8		5.8	%		136.2			128.9		5.7	%
Net interest margin (without realized investment gains and losses)		10.5			10.0		5.0	%		42.7			38.9		9.8	%
Other income		0.8			1.5		-46.7	%		4.9			5.7		-14.0	%
Mortality loss and other reserve changes		(1.3	)		0.7		N.M.			(1.7	)		(0.2	)	N.M.
Operating expenses (includes policy acquisition expenses amortized)		12.8			10.6		20.8	%		39.0			36.2		7.7	%
Amortization of intangible assets		0.9			1.1		-18.2	%		4.0			4.1		-2.4	%
Income (loss) before tax		0.2			5.9		-96.6	%		20.6			25.9		-20.5	%
Net income		2.9			3.9		-25.6	%		17.3			17.6		-1.7	%
Pretax income increase (decrease) due to valuation of:
Deferred policy acquisition costs	$	(4.1	)	$	(1.4	)	192.9	%	$	(4.0	)	$	(1.2	)	233.3	%
Value of acquired insurance in force		—			(0.1	)	-100.0	%		—			(0.2	)	-100.0	%
Guaranteed minimum death benefit reserve		(1.0	)		0.8		N.M.			(1.3	)		0.7		N.M.
Annuity contracts in force (in thousands)										171			167		2.4	%
Accumulated value on deposit									$	3,262.3		$	3,714.1		-12.2	%
Variable										965.2			1,562.2		-38.2	%
Fixed										2,297.1			2,151.9		6.7	%
Annuity accumulated value retention - 12 months
Variable accumulations										93.2	%		90.9	%	N.M.
Fixed accumulations										93.5	%		91.6	%	N.M.
LIFE
Premiums and contract deposits	$	28.1		$	28.3		-0.7	%	$	102.5		$	102.4		0.1	%
Premiums and contract charges earned		25.8			25.0		3.2	%		99.7			97.4		2.4	%
Net investment income		14.8			14.6		1.4	%		59.3			57.0		4.0	%
Income before tax		6.4			7.0		-8.6	%		25.6			26.6		-3.8	%
Net income		4.2			4.6		-8.7	%		16.4			17.3		-5.2	%
Pretax income increase (decrease) due to valuation of:
Deferred policy acquisition costs	$	(0.3	)	$	(0.2	)	50.0	%	$	(0.2	)	$	(0.2	)	—
Life policies in force (in thousands)										221			226		-2.2	%
Life insurance in force									$	13,672		$	13,577		0.7	%
Lapse ratio - 12 months (Ordinary life insurance)										5.4	%		5.8	%	N.M.
CORPORATE AND OTHER (A)
Components of loss before tax:
Net realized investment losses	$	(8.2	)	$	(5.5	)	49.1	%	$	(63.9	)	$	(3.4	)	N.M.
Interest expense		(4.3	)		(3.5	)	22.9	%		(14.5	)		(14.1	)	2.8	%
Other operating expenses, net investment income and other income		0.4			(0.8	)	N.M.			(1.3	)		(2.6	)	-50.0	%
Loss before tax		(12.1	)		(9.8	)	23.5	%		(79.7	)		(20.1	)	N.M.
Net income (loss)		1.3			(6.6	)	N.M.			(50.9	)		(13.3	)	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 December 31,								Year Ended December 31,
	2008			2007			% Change		2008			2007			% Change
INVESTMENTS
Annuity and Life
Fixed maturities, at fair value (amortized cost 2008, $3,145.4; 2007, $3,136.8)									$	2,876.7		$	3,135.1		-8.2	%
Equity securities, at fair value (cost 2008, $55.6; 2007, $55.7)										38.3			50.8		-24.6	%
Short-term investments										154.1			33.5		360.0	%
Short-term investments, securities lending collateral										—			76.7		-100.0	%
Policy loans and other										109.2			102.8		6.2	%
Total Annuity and Life investments										3,178.3			3,398.9		-6.5	%
Property & Casualty
Fixed maturities, at fair value (amortized cost 2008, $642.5; 2007, $733.5)										608.6			737.9		-17.5	%
Equity securities, at fair value (cost 2008, $30.6; 2007, $38.4)										23.3			35.7		-34.7	%
Short-term investments										66.0			7.7		N.M.
Short-term investments, securities lending collateral										—			—		—
Total Property & Casualty investments										697.9			781.3		-10.7	%
Corporate investments										25.6			0.1		N.M.
Total investments										3,901.8			4,180.3		-6.7	%
Net investment income
Before tax	$	58.1		$	57.5		1.0	%	$	230.3		$	223.8		2.9	%
After tax		39.3			39.1		0.5	%		156.3			152.1		2.8	%
Net realized investment gains (losses) by investment portfolio included in
Corporate and Other segment income (loss)
Property & Casualty	$	(2.8	)	$	(0.5	)	N.M.		$	(16.4	)	$	(0.7	)	N.M.
Annuity		(5.3	)		(5.0	)	N.M.			(47.1	)		(1.5	)	N.M.
Life		(0.1	)		—		N.M.			(0.4	)		(1.2	)	N.M.
Corporate and Other		0.0			—		N.M.			0.0			—		N.M.
Total, before tax		(8.2	)		(5.5	)	N.M.			(63.9	)		(3.4	)	N.M.
Total, after tax		2.7			(3.6	)	N.M.			(41.5	)		(2.2	)	N.M.
Per share, diluted	$	0.07		$	(0.08	)	N.M.		$	(1.02	)	$	(0.05	)	N.M.

N.M. - Not meaningful.

- 5 -

HORACE MANN EDUCATORS CORPORATION

Supplemental Business Segment Overview (Unaudited)

(Dollars in Millions)

	December 31, 2008					September 30, 2008			June 30, 2008			December 31, 2007
	Fair Value		Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss)
FIXED MATURITY & EQUITY SECURITY INVESTMENTS
Fixed income securities
U.S. government and federally sponsored agency bonds	$	139.0	$	4.9		$	0.2		$	0.8		$	2.3
Municipal bonds		493.3		(14.1	)		(22.8	)		(5.1	)		6.0
Corporate bonds
Financial institutions		181.1		(19.9	)		(31.6	)		(13.5	)		(3.0	)
Other		1,285.3		(122.6	)		(113.5	)		(34.1	)		11.0
High yield		129.2		(38.0	)		(17.2	)		(9.5	)		(4.6	)
Foreign government bonds		14.9		0.5			0.5			0.9			1.5
Mortgage-backed securities
Prime agency		849.5		20.5			(0.6	)		(2.3	)		1.9
Prime other		15.7		(0.6	)		(0.1	)		(1.6	)		0.5
Sub-prime, Alt-A		7.1		(0.7	)		(0.7	)		(0.6	)		(0.1	)
Commercial mortgage-backed securities		221.7		(108.6	)		(47.1	)		(23.9	)		(5.4	)
Asset-backed securities
Sub-prime, Alt-A		3.9		0.1			(0.3	)		(0.1	)		—
Collateralized debt obligations, collateralized loan obligations		16.7		(0.4	)		(1.2	)		(2.5	)		(3.8	)
Other		88.5		(8.5	)		(3.8	)		(1.1	)		0.4
Preferred stocks
Financial institutions		65.7		(29.8	)		(25.1	)		(9.4	)		(7.6	)
Other		33.0		(10.0	)		(8.1	)		(4.2	)		(3.4	)
Total fixed income securities		3,544.6		(327.2	)		(271.4	)		(106.2	)		(4.3	)
Common stocks		2.3		—			0.3			0.3			(0.5	)
Derivatives		—		—			—			—			—
Total fixed maturity and equity security investments	$	3,546.9	$	(327.2	)	$	(271.1	)	$	(105.9	)	$	(4.8	)

	December 31, 2008						September 30, 2008
	Investment Positions	Fair Value		Net Unrealized Gain (Loss)			Net Unrealized Gain (Loss)
COMMERCIAL MORTGAGE-BACKED SECURITIES
By Standard & Poor’s Corporation Rating:
AAA	74	$	133.4	$	(32.2	)	$	(12.1	)
AA	25		57.4		(17.4	)		(7.6	)
A	28		30.4		(58.9	)		(27.4	)
BBB or below	1		0.5		(0.1	)		—
Total	128	$	221.7	$	(108.6	)	$	(47.1	)
By Vintage Year:
2003 and prior	17	$	25.9	$	(4.2	)	$	(1.6	)
2004	14		14.5		(8.7	)		(2.4	)
2005	37		58.4		(71.3	)		(29.2	)
2006	25		32.7		(21.8	)		(10.4	)
2007 and later	35		90.2		(2.6	)		(3.5	)
Total	128	$	221.7	$	(108.6	)	$	(47.1	)

- 6 -