EX-12 4 hm123117ex12.htm EXHIBIT 12
Exhibit 12
Horace Mann Educators Corporation
Statement Regarding Computation of Ratios
Computation of Ratio of Earnings to Fixed Charges
For the Years Ended December 31, 2017, 2016, 2015, 2014 and 2013
(Dollars in millions)

|  | Year Ended December 31, |  |
|  | 2017 |  |  |  | 2016 |  |  |  | 2015 |  |  |  | 2014 |  |  |  | 2013 |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 11.9 |  |  |  |  | $ | 11.8 |  |  |  |  | $ | 13.1 |  |  |  |  | $ | 14.2 |  |  |  |  | $ | 14.2 |  |  |
Interest credited to policyholders on investment contracts and life insurance products with account values |  | 198.6 |  |  |  |  | 192.0 |  |  |  |  | 182.8 |  |  |  |  | 176.1 |  |  |  |  | 169.9 |  |  |
Total fixed charges |  | $ | 210.5 |  |  |  |  | $ | 203.8 |  |  |  |  | $ | 195.9 |  |  |  |  | $ | 190.3 |  |  |  |  | $ | 184.1 |  |  |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income before income taxes |  | $ | 88.7 |  |  |  |  | $ | 114.2 |  |  |  |  | $ | 129.5 |  |  |  |  | $ | 146.1 |  |  |  |  | $ | 154.1 |  |  |
Add: Interest expense |  | 11.9 |  |  |  |  | 11.8 |  |  |  |  | 13.1 |  |  |  |  | 14.2 |  |  |  |  | 14.2 |  |  |
Subtotal – earnings before interest expense |  | 100.6 |  |  |  |  | 126.0 |  |  |  |  | 142.6 |  |  |  |  | 160.3 |  |  |  |  | 168.3 |  |  |
Add: Interest credited to policyholders on investment contracts and life insurance products with account values |  | 198.6 |  |  |  |  | 192.0 |  |  |  |  | 182.8 |  |  |  |  | 176.1 |  |  |  |  | 169.9 |  |  |
Earnings before fixed charges |  | $ | 299.2 |  |  |  |  | $ | 318.0 |  |  |  |  | $ | 325.4 |  |  |  |  | $ | 336.4 |  |  |  |  | $ | 338.2 |  |  |
Ratio of earnings to fixed charges |  | 1.4 |  | x |  | 1.6 |  | x |  | 1.7 |  | x |  | 1.8 |  | x |  | 1.8 |  | x
Supplemental information (A): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ratio of earnings before interest expense to interest expense |  | 8.5 |  | x |  | 10.7 |  | x |  | 10.9 |  | x |  | 11.3 |  | x |  | 11.9 |  | x

(A) | Fixed charges and earnings in this calculation do not include interest credited to policyholders on investment contracts and life insurance products with account values. This adjusted coverage ratio is not required, but is provided as supplemental information because it is commonly used by individuals who analyze the Company’s results.