Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Three and Nine Months Ended September 30, 1997 and 1996 (Amounts in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 1997 1996 1997 1996 ---- ---- ---- ---- Primary - reported: Weighted average number of common shares outstanding during the period 22,585 23,474 23,111 23,449 ------- ------- ------- ------- Net income for the period $17,996 $16,324 $58,292 $48,838 ------- ------- ------- ------- Net income per share - assuming no dilution $ 0.80 $ 0.69 $ 2.52 $ 2.08 ======= ======= ======= ======= Primary: Weighted average number of common shares outstanding during the period 22,585 23,474 23,111 23,449 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 127 118 125 117 Stock options 343 307 304 291 Common stock units related to Deferred Equity Compensation Plan for Directors 16 2 16 1 ------- ------- ------- ------- Total common and common equivalent shares 23,071 23,901 23,556 23,858 ------- ------- ------- ------- Net income per share $ 0.78 $ 0.68 $ 2.47 $ 2.05 ======= ======= ======= ======= Percentage of dilution compared to reported net income per share 2.5% 1.4% 2.0% 1.4% Fully diluted: Weighted average number of common shares outstanding during the period 22,585 23,474 23,111 23,449 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 127 118 127 118 Stock options 355 307 347 303 Common stock units related to Deferred Equity Compensation Plan for Directors 16 2 16 1 ------- ------- ------- ------- Total common and common equivalent shares adjusted to calculate fully diluted earnings per share 23,083 23,901 23,601 23,871 ------- ------- ------- ------- Net income per share - assuming full dilution $ 0.78 $ 0.68 $ 2.47 $ 2.05 ======= ======= ======= ======= Percentage of dilution compared to reported net income per share 2.5% 1.4% 2.0% 1.4%