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, 2004.
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)
REQUIRED INFORMATION
Financial Statements:
Item 4. In lieu of the requirements of Items 1-3, audited statements and schedule are prepared in accordance with the requirements of ERISA for the Plan’s fiscal years ended December 31, 2004 and 2003, and are presented on pages 3 through 13.
Financial Statements and Supplemental Schedule
Horace Mann Service Corporation
Supplemental Retirement and Savings Plan
Years ended December 31, 2004 and 2003
with Reports of Independent Registered Public Accounting Firms
Retirement and Savings Plan
Financial Statements
and Supplemental Schedule
Years ended December 31, 2004 and 2003
Contents
| 1 | ||
| 2 | ||
| Financial Statements |
||
| 3 | ||
| 4 | ||
| 5 | ||
| Schedule H, Line 4i – Schedule of Assets (Held at End of Year) |
14 | |
Report of Independent Registered Public Accounting Firm
Pension Committee and The Board of Directors
Horace Mann Educators Corporation
We have audited the accompanying statement of net assets available for benefits of Horace Mann Supplemental Retirement and Savings Plan (the Plan) as of December 31, 2004, and the related statement of changes in net assets available for benefits for the year 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 audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 audit provides 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, 2004, and the changes in net assets available for benefits for the year then ended, in conformity with U.S. generally accepted accounting principles.
Our audit was performed for the purpose of forming an opinion on the 2004 basic financial statements taken as a whole. The supplemental schedule, Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2004, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
| Chicago, Illinois | /s/ KPMG LLP | |
| June 28, 2005 |
1
Report of Independent Registered Public Accounting Firm
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 as of December 31, 2003 and 2002, 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 the standards of the Public Company Accounting Oversight Board (United States). 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, 2003 and 2002, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. 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 schedule of assets (held at end of year) as of December 31, 2003, is presented for purposes of additional analysis and is not a required part of the financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
| Chicago, Illinois | /s/ Ernst & Young LLP | |
| May 7, 2004 |
2
Horace Mann Supplemental Retirement and Savings Plan
Statements of Net Assets Available for Benefits
| December 31, | ||||||
| 2004 |
2003 | |||||
| Assets |
||||||
| Investments: |
||||||
| Group Annuity Contract: |
||||||
| Equity securities, at fair value |
$ | 45,987,476 | $ | 39,800,473 | ||
| Fixed income securities, at fair value |
9,395,785 | 9,625,919 | ||||
| Fixed fund, at contract value |
37,227,928 | 36,797,699 | ||||
| Horace Mann Educators Corporation Common Stock, at fair value |
7,762,573 | 6,031,534 | ||||
| Participant loans |
1,888,313 | 1,559,518 | ||||
| Cash |
293,074 | 204,984 | ||||
| Total assets |
102,555,149 | 94,020,127 | ||||
| Liabilities |
||||||
| Accrued administrative expenses |
94,717 | 42,911 | ||||
| Net assets available for benefits |
$ | 102,460,432 | $ | 93,977,216 | ||
See accompanying notes to financial statements.
3
Horace Mann Supplemental Retirement and Savings Plan
Statements of Changes in Net Assets Available for Benefits
| Year ended December 31, |
||||||||
| 2004 |
2003 |
|||||||
| Additions |
||||||||
| Investment income: |
||||||||
| Net realized and unrealized appreciation of investments |
$ | 7,674,405 | $ | 10,220,905 | ||||
| Dividends and interest |
1,857,908 | 1,996,058 | ||||||
| 9,532,313 | 12,216,963 | |||||||
| Contributions: |
||||||||
| Employer |
3,574,063 | 3,704,732 | ||||||
| Employees |
6,434,479 | 6,448,028 | ||||||
| Total additions |
19,540,855 | 22,369,723 | ||||||
| Deductions |
||||||||
| Withdrawals by participants |
(10,537,571 | ) | (9,569,188 | ) | ||||
| Administrative fees |
(520,068 | ) | (561,472 | ) | ||||
| Total deductions |
(11,057,639 | ) | (10,130,660 | ) | ||||
| Net increase during year |
8,483,216 | 12,239,063 | ||||||
| Net assets available for benefits |
||||||||
| Beginning of year |
93,977,216 | 81,738,153 | ||||||
| End of year |
$ | 102,460,432 | $ | 93,977,216 | ||||
See accompanying notes to financial statements.
4
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements
December 31, 2004
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 are 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 for additional information.
The Plan is a 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), as amended.
Contributions and Vesting
Participating employees may contribute up to 20% of eligible compensation, including salary, overtime, commissions, and certain incentive bonuses on a before-tax basis to one or more of twenty available investment funds. Effective January 1, 2004, compensation used to determine Company contributions will no longer include bonuses for non-commissioned employees.
The total pre-tax contributions by a participant were limited to $13,000 in 2004 and $12,000 in 2003 (the limit will increase to $1,000 each year until it reaches $15,000 in 2006, after which the limit will be subject to adjustments to reflect increases in the cost of living pursuant to Section 402(g) of the Internal Revenue Code). Participating employees who reached age 50 or older during the Plan year have the opportunity to make pretax, catch-up contributions subject to federal limits.
Prior to January 1, 2002, the Company contributed an amount equal to 50% of the first 6% of eligible compensation contributed by participating employees. Employer contributions and earnings thereon vested 20% for each year of service, with full vesting occurring after five 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. Effective January 1, 2002, the Plan became a “safe harbor” Plan.
5
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
1. General Plan Information (continued)
The Company contributes 3% of eligible compensation to every employee. The automatic 3% Company contribution replaces the 50% Company match of the first 6% contributed. The 3% Company contribution is 100% vested at the time the contribution is made and is participant-directed. Company match contributions made prior to January 1, 2002, will continue to vest at the rate of 20% per year of service.
In accordance with the Omnibus Budget Reconciliation Act of 1993, eligible compensation for purposes of contributions was limited to $205,000 and $200,000 in 2004 and 2003, respectively.
Participant Accounts and Benefits
Each participant’s account is credited with the participant’s contribution, the Company’s contribution, and an allocation of Plan investment earnings and charged with an allocation of administrative expenses. 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 2,416 and 2,553 participants at December 31, 2004 and 2003, respectively.
Trust Agreement
Except for participant loans, all Plan assets are in a Master Trust held by The Northern Trust Quantitative Advisors, Inc. The Master Trust also includes the specifically identified assets of the HMSC Money Purchase Pension Plan. At December 31, 2004 and 2003, the assets of the Plan represent 46% and 45%, respectively of the total assets in the Master Trust. The assets of the Plan are participant-directed investments and are deposited in a Horace Mann Life Insurance Company (HMLIC) Group Annuity Contract (Fixed Account), mutual funds, or HMEC Common Stock. Prior to September 30, 2004, investments were available through the HMLIC Group Annuity Contract Separate Account that consisted of seven Horace Mann Mutual Funds. Other mutual fund options listed on the following page were also available. Effective October 1, 2004, the sponsorship of the Horace Mann Mutual Funds was transferred to Wilshire Associates, Inc.
6
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
1. General Plan Information (continued)
The following presents investments held at December 31, 2004 and 2003:
| December 31, | ||||||
| Description of Investment |
2004 |
2003 | ||||
| Mutual Funds: |
||||||
| Wilshire VIT Equity Fund-HM Shares* |
$ | 12,679,219 | $ | — | ||
| Horace Mann Equity Fund* |
— | 12,679,207 | ||||
| Wilshire VIT Balanced Fund-HM Shares* |
7,892,270 | — | ||||
| Horace Mann Balanced Fund* |
— | 8,316,232 | ||||
| Wilshire VIT Small Cap Growth Fund-HM Shares |
5,047,901 | — | ||||
| Horace Mann Small Cap Growth Fund* |
— | 5,176,423 | ||||
| T. Rowe Price Small Cap Value Fund |
3,894,835 | 2,721,361 | ||||
| Wilshire VIT Socially Responsible Fund-HM Shares |
3,719,999 | — | ||||
| Horace Mann Socially Responsible Fund |
— | 3,570,384 | ||||
| Fidelity VIP Mid Cap Portfolio |
3,302,552 | 1,929,880 | ||||
| Wilshire VIT International Equity Fund-HM Shares |
3,106,843 | — | ||||
| Horace Mann International Equity Fund |
— | 2,921,609 | ||||
| Wilshire 5000 Index Portfolio |
3,092,617 | 2,529,593 | ||||
| Wilshire Large Company Growth Portfolio |
2,882,528 | 2,387,328 | ||||
| T. Rowe Price Small Cap Stock Fund |
1,929,794 | 1,252,846 | ||||
| Fidelity VIP Growth Portfolio |
1,723,221 | 1,424,878 | ||||
| Strong Opportunity Fund II |
1,528,066 | 1,268,766 | ||||
| Wilshire VIT Income Fund-HM Shares |
1,263,972 | — | ||||
| Horace Mann Income Fund |
— | 1,106,574 | ||||
| Fidelity VIP Overseas Portfolio |
942,228 | 536,309 | ||||
| Davis Value Portfolio |
913,547 | 549,030 | ||||
| Putnam VT Vista Fund |
628,626 | 504,349 | ||||
| J.P. Morgan U.S. Disciplined Equity Portfolio |
595,500 | 348,510 | ||||
| Wilshire VIT Short-Term Investment Fund-HM Shares |
239,543 | — | ||||
| Horace Mann Short-Term Investment Fund |
— | 203,113 | ||||
| Total mutual funds |
55,383,261 | 49,426,392 | ||||
| HMLIC Fixed Account* |
37,227,928 | 36,797,699 | ||||
| Horace Mann Educators Corporation Common Stock* |
7,762,573 | 6,031,534 | ||||
| $ | 100,373,762 | $ | 92,255,625 | |||
| * | Represents 5% or more of the Plan’s net assets held at year end. |
7
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
1. General Plan Information (continued)
Transfers and Withdrawals
Participants may transfer all or a portion of their account balance between the various investment funds on a daily basis. Participant withdrawals (as allowed under the Plan) are permitted on a weekly basis.
Loans
Effective October 1, 2002, participants may borrow a minimum of $1,000 up to a maximum of 50% of their vested account balance but no more than $50,000. The minimum term for a loan is 12 months and the maximum is 60 months (180 months for primary residence loans). Participants may have up to two active loans at one time. A $65 loan administration fee is deducted from the participant’s loan proceeds. Loans totaling $1,888,313 and $1,559,518 from 238 and 177 active participants were outstanding at December 31, 2004 and 2003, respectively. Interest rates charged on loans ranged from 5.00% to 6.00%.
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 pre-January 1, 2002, matching contributions and related investment earnings.
Forfeited Accounts
Amounts that are forfeited relate to the Company’s pre-January 1, 2002 matching contributions and any investment gains on those amounts and are used to offset the Company’s future contributions. Forfeitures were $14,188 and $30,670 for the years ended December 31, 2004 and 2003, respectively.
2. Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements have been prepared using the accrual basis of accounting.
8
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Investment Valuation and Income Recognition
The Plan’s investments are stated at fair value. Quoted market prices are used to value investments in common stock. Shares of mutual funds are valued at the net asset value of shares held by the Plan at year-end. Investments in the fixed fund are stated at contract value, which approximates fair value. Purchases and sales of securities are recorded on a trade-date basis. Participant loans are valued at the unpaid principal balance, which approximates fair value. Interest and dividend income is recorded as earned on an accrual basis.
Net Appreciation in Fair Value of Investments
In the statements of changes in net assets available for benefits, the Plan presents the net appreciation (depreciation) in the fair value of its investments which consists of realized gains or losses and the unrealized appreciation (depreciation) on those investments.
Plan Expenses
The Plan pays all Plan administrative expenses, consisting primarily of recordkeeping, trustee, audit, and legal fees. All investment fees have been included in the quarterly performance gains or losses reported for individual Plan funds.
Payment of Benefits
Benefit payments are recorded when paid.
Use of Estimates
The preparation of the Plan’s financial statements in conformity with U.S. Generally Accepted Accounting Principles requires the Plan administrator to make estimates and assumptions that affect the reported amounts of net assets available for benefits at the date of the financial statements and the changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates.
9
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Risks and Uncertainties
The Plan provides for investments in mutual funds and Horace Mann Educator Corporation common stock. Investment securities are exposed to various risks including, but not limited to, interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term.
3. Investments
HMLIC Group Annuity Contract (Fixed and Separate Accounts)
Fixed Account
Within the HMLIC Group Annuity Contract plan, participants may invest in a fixed interest rate fund. Plan assets invested in this fixed interest rate fund 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 fair value of the group annuity contract is approximately equal to contract value at December 31, 2004 and 2003.
The actual credited interest rate on the group annuity contract was 4.50% for the years ended December 31, 2004 and 2003, respectively.
The minimum guaranteed annual interest rate per the group annuity contract is 4.50%. The actual credited interest rate may be reset by HMLIC with 30 days advance notice. The rate was unchanged from 2003 at 4.50%.
10
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Separate Account
Prior to October 1, 2004, a separate account was available within the HMLIC Group Annuity Contract for the purpose of separately investing Plan assets in one or more of seven HMLIC mutual funds, (Equity Fund, Balanced Fund, Small Cap Growth Fund, Socially Responsible Fund, International Equity Fund, Income Fund, and Short-Term Investment Fund) and 11 additional mutual fund options including the Wilshire Funds, the Fidelity Funds, T. Rowe Price Small Cap Stock Fund and the T. Rowe Price Small Cap Value Fund, the Davis Value Portfolio, the Strong Opportunity Fund II, the J.P. Morgan U.S. Disciplined Equity Portfolio, and the Putnam VT Vista Fund. The sponsorship of the HMLIC mutual funds was transferred to Wilshire Associates Inc. on October 1, 2004.
The investments of the underlying mutual funds are primarily common stocks, U.S. government and corporate bonds, and short-term commercial paper. Short-term commercial paper is presented at cost, which approximates fair value.
Appreciation (Depreciation)
The Plan’s investments (including realized gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value during 2004 and 2003 as follows:
| Net Realized and Unrealized Appreciation (Depreciation) in Fair Value of Investments |
|||||||
| 2004 |
2003 |
||||||
| Mutual funds |
$ | 5,534,342 | $ | 10,813,393 | |||
| Common stock |
2,140,063 | (592,488 | ) | ||||
| $ | 7,674,405 | $ | 10,220,905 | ||||
11
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Total annual returns for each of the mutual funds were as follows:
| Annual Investment Return |
||||||
| 2004 |
2003 |
|||||
| (unaudited) | ||||||
| Mutual Funds |
||||||
| Wilshire VIT Equity Fund-HM Shares |
9.55 | % | 27.57 | % | ||
| Wilshire VIT Balanced Fund-HM Shares |
7.60 | 19.56 | ||||
| Wilshire VIT Small Cap Growth Fund-HM Shares |
3.83 | 58.95 | ||||
| T. Rowe Price Small Cap Value Fund |
24.81 | 36.24 | ||||
| Wilshire VIT Socially Responsible Fund-HM Shares |
12.69 | 28.45 | ||||
| Fidelity VIP Mid Cap Portfolio |
24.03 | 38.25 | ||||
| Wilshire VIT International Equity Fund-HM Shares |
10.03 | 32.49 | ||||
| Wilshire 5000 Index Portfolio |
10.96 | 29.62 | ||||
| Wilshire Large Company Growth Portfolio |
6.53 | 26.44 | ||||
| T. Rowe Price Small Cap Stock Fund |
17.87 | 32.06 | ||||
| Fidelity VIP Growth Portfolio |
2.60 | 32.52 | ||||
| Strong Opportunity Fund II |
17.61 | 37.01 | ||||
| Wilshire VIT Income Fund-HM Shares |
4.38 | 7.25 | ||||
| Fidelity VIP Overseas Portfolio |
12.75 | 43.04 | ||||
| Davis Value Portfolio |
11.76 | 29.76 | ||||
| Putnam VT Vista Fund |
17.97 | 33.16 | ||||
| J.P. Morgan U.S. Disciplined Equity Portfolio |
8.94 | 28.14 | ||||
| Wilshire VIT Short-Term Investment Fund-HM Shares |
.67 | 1.03 | ||||
12
Horace Mann Supplemental Retirement and Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
HMEC Common Stock Fund
The Plan’s HMEC Common Stock Fund at December 31, 2004 and 2003, consisted of 406,843 shares and 431,749 shares, 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 fair value with a quoted market price at December 31, 2004 and 2003 of $19.08 and $13.97 per share, respectively.
Total annual returns for investments in the HMEC Common Stock Fund were as follows:
| Annual Investment Returns |
||||||
| 1 Year | Since inception (November 1991) |
|||||
| 2004 |
2003 |
|||||
| 39.90% |
(6.18 | )% | 7.65 | % | ||
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service (IRS) dated August 21, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the “Code”), and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax exempt.
5. Related Party Transactions
Investment options available to Plan participants include investments in the common stock of the Plan sponsor’s parent, Horace Mann Educators Corporation, and investments in annuity contracts guaranteed by Horace Mann Life Insurance Company, a subsidiary of Horace Mann Educators Corporation.
The parent provides staffing, building space, and supplies at no cost to the Plan.
13
Plan: 004
Horace Mann Supplemental Retirement and Savings Plan
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
December 31, 2004
| Number of Shares or Units |
Description of Investment |
Contract or Fair Value | |||
| Mutual Funds: |
|||||
| 559,283 | Wilshire VIT Equity Fund-HM Shares |
$ | 12,679,219 | ||
| 376,347 | Wilshire VIT Balanced Fund-HM Shares |
7,892,270 | |||
| 402,313 | Wilshire VIT Small Cap Growth Fund- HM Shares |
5,047,901 | |||
| 90,459 | T. Rowe Price Small Cap Value Fund |
3,894,835 | |||
| 212,148 | Wilshire VIT Socially Responsible Fund- HM Shares |
3,719,999 | |||
| 108,556 | Fidelity VIP Mid Cap Portfolio |
3,302,552 | |||
| 252,107 | Wilshire VIT International Equity Fund- HM Shares |
3,106,843 | |||
| 289,473 | Wilshire 5000 Index Portfolio |
3,092,617 | |||
| 87,227 | Wilshire Large Company Growth Portfolio |
2,882,528 | |||
| 50,771 | T. Rowe Price Small Cap Stock Fund |
1,929,794 | |||
| 50,431 | Fidelity VIP Growth Portfolio |
1,723,221 | |||
| 48,454 | Strong Opportunity Fund II |
1,528,066 | |||
| 70,811 | Wilshire VIT Income Fund-HM Shares |
1,263,972 | |||
| 46,369 | Fidelity VIP Overseas Portfolio |
942,228 | |||
| 74,530 | Davis Value Portfolio |
913,547 | |||
| 44,008 | Putnam VT Vista Fund |
628,626 | |||
| 42,722 | J.P. Morgan U.S. Disciplined Equity Portfolio |
595,500 | |||
| 20,924 | Wilshire VIT Short-Term Investment Fund- HM Shares |
239,543 | |||
| Total mutual funds |
55,383,261 | ||||
| N/A | HMLIC Fixed Account* |
37,227,928 | |||
| 406,843 | Horace Mann Educators Corporation Common Stock* |
7,762,573 | |||
| Participant loans (338 loans, interest rates ranging 5.00% to 6.00%, maturing Jan. 15, 2005 to July 31, 2019) |
1,888,313 | ||||
| $ | 102,262,075 | ||||
| * | Represents a party- in-interest. |
See accompanying report of independent registered public accounting firm.
14
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 28 June 2005 |
HORACE MANN SUPPLEMENTAL RETIREMENT | |
| AND SAVINGS PLAN | ||
| Kathryn E. Karr | ||
| Plan Administrator | ||
| Vice President, | ||
| Human Resources Operations | ||
15
EXHIBITS
| 23. | Consent of Independent Registered Public Accounting Firm |
Exhibit 23
CONSENT OF KPMG LLP, INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in the Registration Statement (No. 33-45152), on Form S-8 of the Horace Mann Supplemental Retirement and Savings Plan (the “Plan”) of our report dated June 28, 2005 with respect to the statement of net assets available for benefits of the Plan as of December 31, 2004, the related statement of changes in net assets available for plan benefits for the year then ended, and the supplemental schedule of assets (held at year end) as of December 31, 2004, which report appears in the December 31, 2004 Form 11-K of the Plan.
Chicago, Illinois
June 28, 2005
16