Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Six and Three Months Ended June 30, 1997 and 1996 (Amounts in thousands, except per share data) Three Months Ended Six Months Ended March 31, June 30, ----------------- ------------------- 1997 1996 1997 1996 ---- ---- ---- ---- Primary - reported: Weighted average number of common shares outstanding during the period 23,096 23,449 23,379 23,437 Net income for the period $20,896 $17,081 $40,296 $32,514 ------- ------- ------- ------- Net income per share - assuming no dilution $ 0.90 $ 0.73 $ 1.72 $ 1.39 ======= ======= ======= ======= Primary: Weighted average number of common shares outstanding during the period 23,096 23,449 23,379 23,437 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 125 116 124 117 Stock options 327 301 311 310 Common stock units related to Deferred Equity Compensation Plan for Directors 15 - 15 - ------- ------- ------- ------- Total common and common equivalent shares 23,563 23,866 23,829 23,864 ------- ------- ------- ------- Net income per share $ 0.89 $ 0.72 $ 1.69 $ 1.36 ======= ======= ======= ======= Percentage of dilution compared to reported net income per share 1.1% 1.4% 1.7% 2.2% Fully diluted: Weighted average number of common shares outstanding during the period 23,096 23,449 23,379 23,437 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 125 117 125 117 Stock options 341 308 337 310 Common stock units related to Deferred Equity Compensation Plan for Directors 15 - 15 - ------- ------- ------- ------- Total common and common equivalent shares adjusted to calculate fully diluted earnings per share 23,577 23,874 23,856 23,864 ------- ------- ------- ------- Net income per share - assuming full dilution $ 0.89 $ 0.72 $ 1.69 $ 1.36 ======= ======= ======= ======= Percentage of dilution compared to reported net income per share 1.1% 1.4% 1.7% 2.2%