Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Three and Nine Months Ended September 30, 2002 and 2001 (Amounts in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Basic - assumes no dilution: Net income (loss) for the period $ 549 $ 9,057 $ (2,214) $ 20,829 ---------- ---------- ---------- ---------- Weighted average number of common shares outstanding during the period 40,850 40,659 40,823 40,579 ---------- ---------- ---------- ---------- Net income (loss) per share - basic $ 0.02 $ 0.22 $ (0.05) $ 0.51 ========== ========== ========== ========== Diluted - assumes full dilution: Net income (loss) for the period $ 549 $ 9,057 $ (2,214) $ 20,829 ---------- ---------- ---------- ---------- Weighted average number of common shares outstanding during the period 40,850 40,659 40,823 40,579 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Stock options 8 185 163 122 Common stock units related to Deferred Equity Compensation Plan for Directors 137 119 137 119 Common stock units related to Deferred Compensation Plan for Employees 30 14 30 14 ---------- ---------- ---------- ---------- Total common and common equivalent shares adjusted to calculate diluted earnings per share 41,025 40,977 41,153 40,834 ---------- ---------- ---------- ---------- Net income (loss) per share - diluted $ 0.02 $ 0.22 $ (0.05) $ 0.51 ========== ========== ========== ========== Percentage of dilution compared to basic net income per share 0.0% 0.0% 0.0% 0.0%