HMN Horace Mann Educators Corporation

SPRINGFIELD, Ill., Dec. 10 /PRNewswire-FirstCall/ -- Horace Mann Educators Corporation (NYSE:HMN) Board of Directors announced a quarterly dividend of 5.25 cents per share payable on December 31, 2008 to shareholders of record as of December 22, 2008. In a separate announcement, the company also indicated that it plans to repay $35 million to $40 million of its $75 million outstanding bank borrowing by December 31, 2008. The quarterly dividend amount represents a decrease of 50 percent from the third quarter 2008 dividend. Assuming the number of shares issued and outstanding as of September 30, 2008, the reduction from the previous 10.5 cents per share quarterly dividend would increase the company's capital and statutory surplus by approximately $2 million each quarter. "The Board's decision to reduce the dividend at this time is a prudent measure to preserve capital and protect the strength of our balance sheet as we navigate through the turbulence of the current financial markets," said Louis G. Lower II, President and Chief Executive Officer. "The decision to repay approximately one-half of our outstanding bank borrowing reflects our current assessment that the smaller loan balance, along with the reduced level of shareholder dividends and the earnings generated from business operations, should be more than adequate to address any near-to-intermediate term capital needs that may arise due to the ongoing stress in the financial markets," Lower added. Statements included in this news release that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the company's Quarterly Report on Form 10-Q for the period ended September 30, 2008 and the company's past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements. Horace Mann -- the largest national multiline insurance company focusing on educators' financial needs -- provides auto and homeowners insurance, retirement annuities, life insurance and other financial solutions. Founded by educators for educators in 1945, the company is headquartered in Springfield, Ill. For more information, visit http://www.horacemann.com/. DATASOURCE: Horace Mann Educators Corporation CONTACT: Dwayne D. Hallman, Sr. Vice President-Finance of Horace Mann Educators Corporation, +1-217-788-5708 Web site: http://www.horacemann.com/

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