Exhibit 11 Horace Mann Educators Corporation Computation of Net Income per Share For the Three and Nine Months Ended September 30, 1998 and 1997 (Amounts in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ---------------------- ---------------------- 1998 1997 1998 1997 ------- ------- ------- ------- Basic - assumes no dilution: Net income for the period $24,933 $17,996 $63,040 $58,292 ------- ------- ------- ------- Weighted average number of common shares outstanding during the period 42,811 45,170 43,523 46,222 ------- ------- ------- ------- Net income per share - basic $ 0.58 $ 0.40 $ 1.45 $ 1.26 ======= ======= ======= ======= Diluted - assumes full dilution: Net income for the period $24,933 $17,996 $63,040 $58,292 ------- ------- ------- ------- Weighted average number of common shares outstanding during the period 42,811 45,170 43,523 46,222 Weighted average number of common equivalent shares to reflect the dilutive effect of common stock equivalent securities: Warrants 98 253 99 250 Stock options 456 448 472 396 Common stock units related to Deferred Equity Compensation Plan for Directors 46 31 46 31 Common stock units related to Deferred Compensation Plan for Employees 2 - 1 - ------- ------- ------- ------- Total common and common equivalent shares adjusted to calculate diluted earnings per share 43,413 45,902 44,141 46,899 ------- ------- ------- ------- Net income per share - diluted $ 0.57 $ 0.39 $ 1.43 $ 1.24 ======= ======= ======= =======