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Horace Mann Reports Higher Net Income, Higher Fixed Annuity Sales

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NU Online News Service, Aug. 5, 2003, 3:35 p.m. EDT – Horace Mann Educators Corp., Springfield, Ill., is reporting $2.1 million in net income for the second quarter on $209 million in revenue, up from an $18 million net loss on $163 million in revenue for the second quarter of 2002.

The company, which sells life insurance, annuities and personal property-casualty insurance to teachers, benefited from a net $2.2 million gain on investments sold, written down and written off during the quarter. A year ago, the company was reporting $41 million in realized investment losses for the comparable quarter in 2002.

Some insurers say they cut back on sales of fixed annuities during the second quarter because of worries about the narrowing of the spread between what fixed annuities are paying annuity holders and the rates that the insurers earn on their own investments.

But Horace Mann is reporting $40 million in fixed annuity deposits for the latest quarter, up from $31 million in fixed annuity deposits for the second quarter of 2002.

Variable annuity deposits fell to $29 million, from $34 million.