<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One):
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1997.
-----------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15 [d] OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from __________ to _________
Commission file number 1-10890
---------------
HORACE MANN SUPPLEMENTAL RETIREMENT AND SAVINGS PLAN
(Full title of the Plan)
HORACE MANN EDUCATORS CORPORATION
1 Horace Mann Plaza, Springfield, Illinois 62715
Registrant's telephone number, including area code:
(217) 789 - 2500
(Name, Address and Telephone Number of Issuer)
1
<PAGE>
REQUIRED INFORMATION
Financial Statements:
Item 4. In lieu of the requirements of Items 1-3, audited statements and
schedules prepared in accordance with the requirements of ERISA for the Plan's
fiscal years ended December 31, 1997 and 1996 are presented on pages 3 through
17.
2
<PAGE>
Financial Statements
and Supplemental Schedules
Horace Mann Supplemental
Retirement and Savings Plan
Years ended December 31, 1997 and 1996
with Report of Independent Auditors
3
<PAGE>
Horace Mann Supplemental
Retirement and Savings Plan
Financial Statements
and Supplemental Schedules
Years ended December 31, 1997 and 1996
CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Report of Independent Auditors............................................. 1
Audited Financial Statements
Statements of Net Assets Available for Benefits............................ 2
Statements of Changes in Net Assets Available for Benefits................. 3
Notes to Financial Statements.............................................. 4
Supplemental Schedules
Assets Held for Investment.................................................10
Reportable Transactions (all other required schedules are not applicable)..11
</TABLE>
4
<PAGE>
Report of Independent Auditors
Pension Committee and The Board of Directors
Horace Mann Educators Corporation
We have audited the accompanying statements of net assets available for benefits
of Horace Mann Supplemental Retirement and Savings Plan ("Plan") as of December
31, 1997 and 1996 and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1997 and 1996, and the changes in its net assets available for
benefits for the years then ended in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment as of December 31, 1997, and reportable transactions for the
year then ended, are presented for purposes of complying with the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, and are not a required part of the
financial statements. The fund information in the statements of changes in net
assets available for benefits is presented for purposes of additional analysis
rather than to present the changes in net assets available for benefits of each
fund. The supplemental schedules and fund information have been subjected to the
auditing procedures applied in our audits of the financial statements and, in
our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
April 24, 1998
/s/ ERNST & YOUNG LLP
5
<PAGE>
Horace Mann Supplemental Retirement and Savings Plan
Statements of Net Assets Available for Benefits
<TABLE>
<CAPTION>
December 31
1997 1996
-------------------------
<S> <C> <C>
ASSETS
Separate Account - Horace Mann
Mutual Funds, at market value:
Growth Fund (cost $24,565,768 $27,898,008 $20,950,425
in 1997, $18,849,476 in 1996)
Balanced Fund (cost $13,861,976 15,448,640 13,065,409
in 1997, cost $11,815,332 in 1996)
Small Cap Growth Fund (cost $2,041,076
in 1997) 2,079,756 --
Socially Responsible Fund (cost $722,477
in 1997) 744,854 --
International Equity Fund (cost $526,040
in 1997) 508,207 --
Income Fund (cost $317,515
in 1997, $491,996 in 1996) 318,120 481,674
Short-Term Investment Fund (cost $63,391
in 1997, $56,464 in 1996) 61,843 55,327
-------------------------
Total Separate Account -
Horace Mann Mutual Funds 47,059,428 34,552,835
Group annuity contract,
at contract value 37,158,317 38,666,126
Horace Mann Educators Corporation Common
Stock, at market value (cost $3,864,843
in 1997, $2,291,974 in 1996) 6,866,985 3,721,647
-------------------------
Total assets 91,084,730 76,940,608
LIABILITIES
Withdrawals payable to participants 1,027,985 463,070
-------------------------
Net assets available for benefits $90,056,745 $76,477,538
=========================
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
HORACE MANN SUPPLEMENTAL RETIREMENT & SAVINGS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
<TABLE>
<CAPTION>
GROWTH GROWTH BALANCED BALANCED
1997 1996 FUND FUND FUND FUND
TOTAL TOTAL 1997 1996 1997 1996
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions
Investment Income:
Net realized and unrealized
appreciation (depreciation)
of investments $ 4,005,686 $ 2,638,306 $ 1,671,306 $ 1,273,395 $ 658,649 $ 560,022
Interest 2,667,364 2,696,366 - - - -
Dividends 5,342,702 4,126,417 3,407,944 2,615,589 1,838,198 1,440,092
---------------------------------------------------------------------------------
12,015,752 9,461,089 5,079,250 3,888,984 2,496,847 2,000,114
Contributions:
Employer 2,125,037 1,816,466 944,344 730,335 391,973 391,510
Participants 5,148,509 4,301,452 2,306,797 1,752,509 952,080 926,778
---------------------------------------------------------------------------------
Total additions 19,289,298 15,579,007 8,330,391 6,371,828 3,840,900 3,318,402
Deductions
Withdrawals by participants (5,710,091) (4,541,444) (1,149,657) (957,513) (1,039,407) (602,860)
Interfund transfers (0) (0) (393,201) 2,032,914 (783,621) 53,938
---------------------------------------------------------------------------------
Net increase (decrease) 13,579,207 11,037,563 6,787,533 7,447,229 2,017,872 2,769,480
Net assets available for
benefits
Beginning of year 76,477,538 65,439,975 $20,845,901 $13,398,672 $12,952,173 $10,182,693
---------------------------------------------------------------------------------
End of year $90,056,745 $76,477,538 $27,633,434 $20,845,901 $14,970,045 $12,952,173
---------------------------------------------------------------------------------
F F F F F F
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP SMALL CAP SOCIALLY SOCIALLY
GROWTH GROWTH RESPONSIBLE RESPONSIBLE
FUND FUND FUND FUND
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Additions
Investment Income:
Net realized and unrealized
appreciation (depreciation)
of investments $ 38,869 $ - $ 22,507 $ -
Interest - - - -
Dividends - - 12,243 -
-----------------------------------------------------
38,869 - 34,750 -
Contributions:
Employer 58,109 - 24,862 -
Participants 141,985 - 59,197 -
-----------------------------------------------------
Total additions 238,963 - 118,809 -
Deductions
Withdrawals by participants (12,418) - (10,949) -
Interfund transfers 1,845,863 - 628,745 -
-----------------------------------------------------
Net increase (decrease) 2,072,408 - 736,605 -
Net assets available for
benefits
Beginning of year - - - -
-----------------------------------------------------
End of year $ 2,072,408 $ - $ 736,605 $ -
-----------------------------------------------------
F F
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
EQUITY EQUITY INCOME INCOME SHORT-TERM SHORT-TERM
FUND FUND FUND FUND FUND FUND
1997 1996 1997 1996 1997 1996
------------- ------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Additions
Investment Income:
Net realized and unrealized
appreciation (depreciation)
of investments ($23,352) - $ 14,872 $ (10,709) $ (259) $ 738
Interest -- - - - - -
Dividends 3,968 - 20,181 28,025 3,193 2,402
---------------------------------------------------------------------------------
(19,384) - 35,053 17,316 2,934 3,140
Contributions:
Employer 28,134 - 14,920 18,524 4,822 6,532
Participants 70,363 - 36,297 44,004 11,195 16,064
---------------------------------------------------------------------------------
Total additions 79,113 - 86,270 79,844 18,951 25,736
Deductions
Withdrawals by participants (1,079) - (27,124) (20,950) (9,345) (1,441)
Interfund transfers 430,123 - (218,438) 19,154 (3,089) (14,594)
---------------------------------------------------------------------------------
Net increase (decrease) 508,157 - (159,292) 78,048 6,517 9,701
Net assets available for
benefits
Beginning of year -- - $ 477,411 $ 399,363 $ 55,326 $ 45,625
---------------------------------------------------------------------------------
End of year $ 508,157 $ - $ 318,119 $ 477,411 $ 61,843 $ 55,326
=================================================================================
</TABLE>
<TABLE>
<CAPTION>
FIXED FIXED STOCK STOCK
FUND FUND FUND FUND
1997 1996 1997 1996
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Additions
Investment Income:
Net realized and unrealized
appreciation (depreciation)
of investments $ - $ - $1,623,094 $ 814,860
Interest 2,667,165 2,696,255 199 111
Dividends - - 56,975 40,309
----------------------------------------------------
2,667,165 2,696,255 1,680,268 855,280
Contributions:
Employer 478,285 543,806 179,588 125,759
Participants 1,136,862 1,265,304 433,733 296,793
----------------------------------------------------
Total additions 4,282,312 4,505,365 2,293,589 1,277,832
Deductions
Withdrawals by participants (3,109,941) (2,794,816) (350,171) (163,864)
Interfund transfers (2,618,277) (1,570,864) 1,111,895 (520,548)
----------------------------------------------------
Net increase (decrease) (1,445,906) 139,685 3,055,313 593,420
Net assets available for
benefits
Beginning of year $38,444,325 $38,304,640 $3,702,402 $3,108,982
----------------------------------------------------
End of year $36,998,419 $38,444,325 $6,757,715 $3,702,402
====================================================
</TABLE>
7
<PAGE>
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements
December 31, 1997
1. GENERAL PLAN INFORMATION
DESCRIPTION OF THE PLAN
The Horace Mann Supplemental Retirement and Savings Plan (the Plan) is sponsored
by Horace Mann Service Corporation (HMSC) which is a wholly owned subsidiary of
Horace Mann Educators Corporation (HMEC; HMSC and HMEC collectively referred to
as the Company). The following brief description of the Plan is provided for
general information purposes. Readers should refer to the actual Plan Document
or the employee Summary Plan Description entitled Your Horace Mann Benefits
Program for additional information.
The Plan is a voluntary defined contribution plan covering all employees of the
Company. It is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
CONTRIBUTIONS AND VESTING
Participating employees may contribute up to 10% of eligible compensation,
including salary, overtime, commissions and certain incentive bonuses on a
before-tax basis to one or more of nine available investment funds.
The Company contributes an amount equal to 50% of the first 6% of eligible
compensation contributed by participating employees. Employer contributions and
earnings thereon are 20% vested for each year of service, with full vesting
occurring after 5 years of service. In addition, employer contributions
generally become fully vested in the event of disability or death. Forfeitures
of nonvested employer contributions serve to reduce future Company matching
contributions. Participant contributions and earnings thereon are fully vested
at all times.
In accordance with the Omnibus Budget Reconciliation Act of 1993, eligible
compensation for purposes of contributions was limited to $160,000 in 1997 and
$150,000 in 1996. Highly compensated employees are limited to 6% participant
contributions and 3% Company matching contributions.
8
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
1. GENERAL PLAN INFORMATION (CONTINUED)
PARTICIPANT ACCOUNTS AND BENEFITS
Each participant's account is credited with the participant's contribution, the
Company's matching contribution and an allocation of Plan investment earnings.
The benefit to which a given participant is entitled is the benefit that can be
provided from that participant's vested account. A participant subaccount is
maintained in each of the investment funds in which a participant chooses to
invest. There were 2,161 and 1,982 participants at December 31, 1997 and 1996,
respectively. At December 31, 1997 and 1996, the number of participants'
subaccounts in the respective investment funds were as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Separate Account - Horace
Mann Mutual Funds:
Growth Fund 1,750 1,487
Balanced Fund 1,149 1,075
Small Cap Growth Fund 434 -
Socially Responsible Fund 229 -
International Equity Fund 210 -
Income Fund 144 159
Short-Term Investment Fund 55 56
Fixed Fund 1,289 1,408
HMEC Common Stock Fund 848 558
</TABLE>
TRANSFERS AND WITHDRAWALS
Participants may transfer all or a portion of their account balance between the
various investment funds on a monthly basis. Participant withdrawals (as
allowed under the Plan) are permitted on a monthly basis.
TERMINATION
Although it has not expressed any intent to do so, the Company has the right to
terminate the Plan at any time, subject to the provisions of ERISA. In the event
of Plan termination, participants become fully vested in the Company's matching
contributions and related investment earnings.
9
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
2. INVESTMENTS
TRUST AGREEMENT
All plan assets are held in trust by American National Bank and Trust Company of
Chicago, pursuant to a trust agreement. The assets of the Plan are deposited in
participant-directed investments: any of seven Horace Mann Mutual Fund options
available within the HMLIC Separate Account, a group annuity contract with
Horace Mann Life Insurance Company (HMLIC, a subsidiary of HMEC), or an HMEC
Common Stock Fund.
SEPARATE ACCOUNT - HORACE MANN MUTUAL FUNDS
A separate account has been established by HMLIC for the purpose of separately
investing Plan assets in one or more of seven mutual funds, Growth Fund,
Balanced Fund, Small Cap Growth Fund, Socially Responsible Fund, International
Equity Fund, Income Fund, and Short-Term Investment Fund, collectively the
Horace Mann Funds. Three of these mutual funds, the Small Cap Growth Fund,
Socially Responsible Fund, and International Equity Fund, were added in 1997.
The investment in the separate account is stated at market value. The
investments of the underlying mutual funds are primarily common stocks, U.S.
Government and corporate bonds and short-term commercial paper. The common
stocks and bonds are presented at market value, based on quoted market prices,
and the short-term commercial paper is presented at cost, which approximates
market value.
10
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
2. INVESTMENTS (CONTINUED)
The units owned by the Plan through its investment in the separate account and
unit values of each of the Separate Account - Horace Mann Mutual Funds at
December 31, 1997 and 1996 were as follows:
<TABLE>
<CAPTION>
SEPARATE ACCOUNT - HORACE 1997 1996
-----------------------------------------------------
MANN MUTUAL FUNDS UNITS OWNED UNIT VALUE UNITS OWNED UNIT VALUE
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Growth Fund 1,087,218 $25.66 881,752 $23.76
Balanced Fund 779,447 19.82 689,831 18.94
Small Cap Growth Fund 177,757 11.70 - -
Socially Responsible Fund 61,558 12.10 - -
International Equity Fund 49,485 10.27 - -
Income Fund 24,471 13.00 37,957 12.69
Short-Term Investment Fund 6,191 9.99 5,516 10.03
Total annual returns for each of the Horace Mann
Mutual Funds were as follows:
ANNUAL INVESTMENT RETURNS
-------------------------------------------------------------
SEPARATE ACCOUNT - HORACE ONE YEAR PERIODS ENDED DECEMBER 31, 1997
-------------------------------------------------------------
MANN MUTUAL FUNDS 1997 1996 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------------------------
Growth Fund 23.45% 25.28% 19.80% 16.66%
Balanced Fund 19.03 18.27 15.35 14.14
Small Cap
Growth Fund 21.36 - - -
Socially Responsible
Fund 27.60 - - -
International Equity
Fund 3.34 - - -
Income Fund 9.42 3.50 6.57 8.51
Short-Term
Investment Fund 5.09 5.02 4.33 5.37
</TABLE>
11
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
2. INVESTMENTS (CONTINUED)
The composition of the underlying investments in each of the Separate Account -
Horace Mann Mutual Funds at December 31, 1997 and 1996 was as follows:
<TABLE>
<CAPTION>
1997 1996
-----------------
<S> <C> <C>
Growth Fund:
Common and preferred stock 97% 96%
Cash and short-term investments 3 4
Balanced Fund:
Common and preferred stock 62% 69%
U.S. and foreign government and agency obligations 25 23
U.S. and foreign corporate bonds/notes 12 7
Cash and short-term investments 1 1
Small Cap Growth Fund:
Common Stock 90% ---%
Cash and short-term investments 10 ---
Socially Responsible Fund:
Common and preferred stock 97% ---%
Cash and short-term investment 2 ---
Convertible Securities 1 ---
International Equity Fund:
Common and preferred stock 90% ---%
Cash and short-term investments 10 ---
Income Fund:
U.S. and foreign government and agency obligations 61% 68%
U.S. and foreign corporate bonds/notes 32 30
Cash and short-term investments 3 2
Municipal Bonds 4 ---
Short-Term Investment Fund:
U.S. and foreign government and agency obligations 100% 99%
Cash and short-term investments --- 1
</TABLE>
12
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
GROUP ANNUITY CONTRACT
Plan participants may invest in a fixed interest rate group annuity contract
with HMLIC (Fixed Fund). Plan assets invested in this contract are guaranteed by
HMLIC and, as a result, are presented in the financial statements at contract
value. Contract value represents contributions made under the contract, plus
interest at the contract rate, less withdrawals by participants. The market
value of the group annuity contract is approximately equal to contract value.
The actual credited interest rate on the group annuity contract was 7.25% for
the years ended December 31, 1997 and 1996.
The minimum guaranteed annual interest rate per the group annuity contract is
4.5%. The actual credited interest rate may be reset by HMLIC with 30 days
advance notice, but is generally changed once at the beginning of each Plan
year. Beginning January 1, 1998, the actual crediting rate was reduced to
7.00%.
HMEC COMMON STOCK FUND
The Plan's HMEC Common Stock Fund at December 31, 1997 and 1996 consisted of a
pooled investment in 241,472 shares and 184,354 shares (adjusted for November,
1997 stock split), respectively, of HMEC common stock, which is traded on the
New York Stock Exchange under the symbol HMN. This investment is presented in
the financial statements at market value of $28.44 and $20.19 per share
(adjusted for November 1997 stock split), respectively.
Total annual returns for investments in the HMEC Common Stock Fund were as
follows:
<TABLE>
<CAPTION>
ANNUAL INVESTMENT RETURNS
------------------------------------
1 YEAR
---------------- SINCE INCEPTION
1997 1996 (NOVEMBER 1991)
------------------------------------
<S> <C> <C> <C>
42.5% 30.9% 22.0%
</TABLE>
13
<PAGE>
Horace Mann Supplemental Retirement Savings Plan
Notes to Financial Statements (continued)
3. ADMINISTRATIVE EXPENSES
The Company pays all administrative costs for the operation of the Plan and
related trust, which consist primarily of trustee, audit and legal fees. The
investment results of the separate account are net of investment and operating
expenses charged by HMLIC and the Separate Account -Horace Mann Mutual Funds.
Minimal brokerage and commission fees for the purchase of HMEC common stock are
paid directly by the Trustee from the HMEC Common Stock Fund.
4. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
that the Plan has met the provisions of the Internal Revenue Code (the Code) as
being exempt from federal income tax.
The Plan is organized in accordance with section 401(k) of the Code.
Participants are not subject to federal income tax on amounts contributed to the
Plan or on earnings attributable to such contributions until such time as these
amounts are either distributed to or withdrawn by the participants.
14
<PAGE>
Supplemental Schedules
15
<PAGE>
Horace Mann Supplemental Retirement and Savings Plan
Assets Held for Investment
December 31, 1997
<TABLE>
<CAPTION>
Number
of Shares Contract or
or Units Name Cost Market Value
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Separate Account - Horace
Mann Mutual Funds:
1,087,218 Growth Fund $24,565,768 $27,898,008
779,447 Balanced Fund 13,861,976 15,448,640
177,757 Small Cap Growth Fund 2,041,076 2,079,756
61,558 Socially Responsible Fund 722,477 744,854
49,485 International Equity Fund 526,040 508,207
24,471 Income Fund 317,515 318,120
6,191 Short-Term Investment Fund 63,391 61,843
-------------------------
Total Separate Account - Horace
Mann Mutual Funds 42,098,243 47,059,428
N/A HMLIC Group Annuity Contract 37,158,317 37,158,317
241,472 Horace Mann Educators
Corporation Common Stock 3,864,843 6,866,985
-------------------------
$83,121,403 $91,084,730
=========================
</TABLE>
16
<PAGE>
Horace Mann Supplemental Retirement and Savings Plan
Reportable Transactions
Year Ended December 31, 1997
<TABLE>
<CAPTION>
Purchase Selling Number of Cost of
Identity of Party Involved Description of Asset Price Price Transactions Asset Net Gain
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Horace Mann Life Insurance
Company Separate Account Horace Mann Mutual Funds:
Growth Fund(1) $7,433,895 - 34 $7,433,895 -
- $2,157,618 20 1,717,603 $ 440,015
Balanced Fund(1) 3,452,983 - 35 3,452,983 -
- 1,728,401 20 1,406,339 322,062
Small Cap Growth Fund(1) 2,045,957 - 28 2,045,957 -
- 5,070 5 4,881 189
Socially Responsible Fund(1) 725,047 - 22 725,047 -
- 2,700 4 2,570 130
International Equity Fund(1) 646,482 - 26 646,482 -
- 114,923 2 120,442 (5,519)
Income Fund(1) 120,453 - 29 120,453 -
- 298,879 19 294,934 3,945
Short-Term Investment Fund(1) 32,644 - 27 32,644 -
- 25,869 18 25,717 152
Horace Mann Life Insurance Group Annuity Contract(1) 4,792,884 - 54 4,792,884 -
Company - 6,300,693 27 6,300,693 -
Horace Mann Educators Common Stock(1) 1,638,101 21 1,638,101 -
Common Stock Fund - 115,857 4 65,232 50,625
</TABLE>
(1) Party-in-interest investment which is not a prohibited investment under
ERISA rules and regulations.
17
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Pension Plan Committee of the Horace Mann Supplemental Retirement and Savings
Plan has duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date 29 June 1998 HORACE MANN SUPPLEMENTAL RETIREMENT AND SAVINGS PLAN
------------
/s/ Kathryn E. Karr
--------------------
Kathryn E. Karr
Plan Administrator
Secretary Employee Benefits
Administration
18
<PAGE>
EXHIBITS
23. Consent of Independent Auditors
19
<PAGE>
Exhibit 23
CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
--------------------------------------------------
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 33-45152) pertaining to the Horace Mann Supplemental Retirement and
Savings Plan and in the related Prospectus of our report date April 24, 1998,
with respect to the financial statements and supplemental schedules of the
Horace Mann Supplemental Retirement and Savings Plan included in this Annual
Report (Form 11-K) for the year ended December 31, 1997.
Chicago, Illinois
June 29, 1998
