Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Three Months Ended March 31, 1998 and 1997 (Amounts in thousands, except per share data) Three Months Ended March 31, 1998 1997 ------- ------- Basic - assumes no dilution: Net income for the period $22,459 $19,400 ------- ------- Weighted average number of common shares outstanding during the period 44,176 47,330 ------- ------- Net income per share - basic $ 0.51 $ 0.41 ======= ======= Diluted - assumes full dilution: Net income for the period $22,459 $19,400 ------- ------- Weighted average number of common shares outstanding during the period 44,176 47,330 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 259 246 Stock options 492 449 Common stock units related to Deferred Equity Compensation Plan for Directors 34 20 ------- ------- Total common and common equivalent shares adjusted to calculate diluted earnings per share 44,961 48,045 ------- ------- Net income per share - diluted $ 0.50 $ 0.40 ======= ======= Percentage of dilution compared to basic net income per share 2.0% 2.4%