# EDGAR Filing Document

**Accession Number:** 0000850141
**File Stem:** 0001628280-25-038406
**Filing Date:** 2025-8
**Character Count:** 646215
**Document Hash:** f17985a51acee32fff5f9af9ba105b52
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-038406.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001628280-25-038406

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 257

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HORACE MANN EDUCATORS CORP /DE/
- **CENTRAL INDEX KEY:** 0000850141
- **STANDARD INDUSTRIAL CLASSIFICATION:** FIRE, MARINE & CASUALTY INSURANCE [6331]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 370911756
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10890
- **FILM NUMBER:** 251190501

**BUSINESS ADDRESS:**
- **STREET 1:** 1 HORACE MANN PLZ
- **CITY:** SPRINGFIELD
- **STATE:** IL
- **ZIP:** 62715-0001
- **BUSINESS PHONE:** 2177892500

**MAIL ADDRESS:**
- **STREET 1:** 1 HORACE MANN PLZ
- **CITY:** SPRINGFIELD
- **STATE:** IL
- **ZIP:** 62715-0001

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HORACE MANN EDUCATORS CORP
- **DATE OF NAME CHANGE:** 19920108

?xml version='1.0' encoding='ASCII'? hmn-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q** 

**☒ &nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended June 30, 2025** 

**or**

**☐&nbsp;&nbsp;&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ________ to ________**

**Commission file number 1-10890** 

**HORACE MANN EDUCATORS CORPORATION** 

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **37-0911756** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**1 Horace Mann Plaza, Springfield, Illinois&nbsp;&nbsp;&nbsp;&nbsp; 62715-0001** 

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: **217-789-2500** 

---

| | | |
|:---|:---|:---|
| Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: | Securities registered pursuant to Section 12(b) of the Act: |
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange<br>on which registered** |
| Common Stock, $0.001 par value | HMN | New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☑ | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). Yes ☐ No ☑

As of July 31, 2025, the registrant had 40,695,729 common shares, $0.001 par value, outstanding.

------

**HORACE MANN EDUCATORS CORPORATION**

**QUARTERLY REPORT ON FORM 10-Q**

**FOR THE QUARTERLY PERIOD ENDED June 30, 2025** 

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| <u>[PART I - FINANCIAL INFORMATION](#ib384d55e0e5a4824a6adf57b04321d8e_10)</u> | <u>[PART I - FINANCIAL INFORMATION](#ib384d55e0e5a4824a6adf57b04321d8e_10)</u> | Page |
| Item 1. | <u>[Consolidated Financial Statements](#ib384d55e0e5a4824a6adf57b04321d8e_13)</u> |  |
|  | <u>[Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024](#ib384d55e0e5a4824a6adf57b04321d8e_16)</u> | <u>[1](#ib384d55e0e5a4824a6adf57b04321d8e_16)</u> |
|  | &nbsp;&nbsp;&nbsp;<u>[Consolidated Statements of Operations and Comprehensive Income (Loss) for the](#ib384d55e0e5a4824a6adf57b04321d8e_19)</u><br><u>[Three and Six Months Ended June 30, 2025 and 2024 (Unaudited)](#ib384d55e0e5a4824a6adf57b04321d8e_19)</u> | <u>[2](#ib384d55e0e5a4824a6adf57b04321d8e_19)</u> |
|  | <u>[Consolidated Statements of Changes in Shareholders' Equity for the Three and Six](#ib384d55e0e5a4824a6adf57b04321d8e_22)</u> <br>&nbsp;&nbsp;&nbsp;&nbsp; <u>[Months Ended June 30, 2025 and 2024 (Unaudited)](#ib384d55e0e5a4824a6adf57b04321d8e_22)</u> | <u>[3](#ib384d55e0e5a4824a6adf57b04321d8e_22)</u> |
|  | <u>[Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited)](#ib384d55e0e5a4824a6adf57b04321d8e_25)</u> | <u>[4](#ib384d55e0e5a4824a6adf57b04321d8e_25)</u> |
|  | <u>[Notes to Consolidated Financial Statements (Unaudited)](#ib384d55e0e5a4824a6adf57b04321d8e_28)</u> |  |
|  | &nbsp;&nbsp;<u>[Note 1 - Basis of Presentation and Significant Accounting Policies](#ib384d55e0e5a4824a6adf57b04321d8e_31)</u> | <u>[5](#ib384d55e0e5a4824a6adf57b04321d8e_31)</u> |
|  | &nbsp;&nbsp;<u>Note 2 - Investments</u> | <u>[6](#ib384d55e0e5a4824a6adf57b04321d8e_34)</u> |
|  | &nbsp;&nbsp;<u>[Note 3 - Fair Value of Financial Instruments](#ib384d55e0e5a4824a6adf57b04321d8e_37)</u> | <u>[12](#ib384d55e0e5a4824a6adf57b04321d8e_37)</u> |
|  | &nbsp;&nbsp;<u>[Note 4 - Short-Duration Insurance Contracts](#ib384d55e0e5a4824a6adf57b04321d8e_43)</u> | <u>[19](#ib384d55e0e5a4824a6adf57b04321d8e_43)</u> |
|  | &nbsp;&nbsp;<u>[Note 5 - Long-Duration Insurance Contracts](#ib384d55e0e5a4824a6adf57b04321d8e_46)</u> | <u>[20](#ib384d55e0e5a4824a6adf57b04321d8e_46)</u> |
|  | &nbsp;&nbsp;<u>[Note 6 - Reinsurance](#ib384d55e0e5a4824a6adf57b04321d8e_49)</u> | <u>[33](#ib384d55e0e5a4824a6adf57b04321d8e_49)</u> |
|  | &nbsp;&nbsp;<u>[Note 7 - Segment Information](#ib384d55e0e5a4824a6adf57b04321d8e_52)</u> | <u>[34](#ib384d55e0e5a4824a6adf57b04321d8e_52)</u> |
|  | &nbsp;&nbsp;<u>[Note 8 - Accumulated Other Comprehensive Income (Loss)](#ib384d55e0e5a4824a6adf57b04321d8e_55)</u> | <u>[38](#ib384d55e0e5a4824a6adf57b04321d8e_55)</u> |
|  | &nbsp;&nbsp;<u>[Note 9 - Supplemental Consolidated Cash and Cash Flow Information](#ib384d55e0e5a4824a6adf57b04321d8e_58)</u> | <u>[39](#ib384d55e0e5a4824a6adf57b04321d8e_58)</u> |
|  | &nbsp;&nbsp;<u>[Note 10 - Contingencies and Commitments](#ib384d55e0e5a4824a6adf57b04321d8e_61)</u> | <u>[39](#ib384d55e0e5a4824a6adf57b04321d8e_61)</u> |
| Item 2. | &nbsp;&nbsp;&nbsp;<u>[Management's Discussion and Analysis of Financial Condition](#ib384d55e0e5a4824a6adf57b04321d8e_64)</u><br><u>[and Results of Operations](#ib384d55e0e5a4824a6adf57b04321d8e_64)</u> | <u>[40](#ib384d55e0e5a4824a6adf57b04321d8e_64)</u> |
| Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#ib384d55e0e5a4824a6adf57b04321d8e_109)</u> | <u>[61](#ib384d55e0e5a4824a6adf57b04321d8e_109)</u> |
| Item 4. | <u>[Controls and Procedures](#ib384d55e0e5a4824a6adf57b04321d8e_112)</u> | <u>[62](#ib384d55e0e5a4824a6adf57b04321d8e_112)</u> |
| <u>[PART II - OTHER INFORMATION](#ib384d55e0e5a4824a6adf57b04321d8e_115)</u> | <u>[PART II - OTHER INFORMATION](#ib384d55e0e5a4824a6adf57b04321d8e_115)</u> |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 1. | <u>[Legal Proceedings](#ib384d55e0e5a4824a6adf57b04321d8e_118)</u> | <u>[63](#ib384d55e0e5a4824a6adf57b04321d8e_118)</u> |
| Item 1A. | <u>[Risk Factors](#ib384d55e0e5a4824a6adf57b04321d8e_121)</u> | <u>[63](#ib384d55e0e5a4824a6adf57b04321d8e_121)</u> |
| Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ib384d55e0e5a4824a6adf57b04321d8e_124)</u> | <u>[63](#ib384d55e0e5a4824a6adf57b04321d8e_124)</u> |
| Item 5. | <u>[Other Information](#ib384d55e0e5a4824a6adf57b04321d8e_127)</u> | <u>[63](#ib384d55e0e5a4824a6adf57b04321d8e_127)</u> |
| Item 6. | <u>[Exhibits](#ib384d55e0e5a4824a6adf57b04321d8e_133)</u> | <u>[64](#ib384d55e0e5a4824a6adf57b04321d8e_133)</u> |
| <u>[SIGNATURES](#ib384d55e0e5a4824a6adf57b04321d8e_136)</u> | <u>[SIGNATURES](#ib384d55e0e5a4824a6adf57b04321d8e_136)</u> | <u>[65](#ib384d55e0e5a4824a6adf57b04321d8e_136)</u> |

---

------

**PART I: FINANCIAL INFORMATION**

ITEM 1. I Consolidated Financial Statements

**HORACE MANN EDUCATORS CORPORATION**

**CONSOLIDATED BALANCE SHEETS** 

**($ in millions, except share data)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| | **(Unaudited)** | |
| ***Assets*** | | |
| Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities, available for sale, at fair value<br>(amortized cost, net 2025, $5,847.4; 2024, $5,842.5) | $5453.3 | $5387.9 |
| &nbsp;&nbsp;&nbsp;Equity securities at fair value, (cost $72.5 and $78.8) | 58.3 | 66.5 |
| &nbsp;&nbsp;&nbsp;Limited partnership interests <br>&nbsp;&nbsp;&nbsp;&nbsp;(carried under fair value option, 2025, $36.6; 2024, $28.9) | 1137.8 | 1121.3 |
| &nbsp;&nbsp;&nbsp;Policy loans  | 139.0 | 140.8 |
| &nbsp;&nbsp;&nbsp;Short-term and other investments | 252.2 | 199.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments | 7040.6 | 6916.4 |
| Cash | 40.9 | 38.1 |
| Deferred policy acquisition costs | 351.4 | 347.2 |
| Reinsurance balances receivable | 403.7 | 424.8 |
| Deposit asset on reinsurance | 2412.6 | 2434.3 |
| Intangible assets | 148.6 | 155.8 |
| Goodwill | 54.3 | 54.3 |
| Other assets | 412.9 | 408.1 |
| Separate Account variable annuity assets | 3863.3 | 3708.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $14728.3 | $14487.8 |
| ***Liabilities and Shareholders' Equity*** |  |  |
| Policy liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Future policy benefit reserves | $1624.4 | $1622.8 |
| &nbsp;&nbsp;&nbsp;Policyholders' account balances | 5076.4 | 5100.3 |
| &nbsp;&nbsp;&nbsp;Unpaid claims and claim expenses | 576.6 | 569.2 |
| &nbsp;&nbsp;&nbsp;Unearned premiums | 351.0 | 344.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total policy liabilities | 7628.4 | 7636.5 |
| Other policyholder funds | 1005.8 | 995.7 |
| Other liabilities | 323.0 | 312.3 |
| Long-term debt | 547.5 | 547.0 |
| Separate Account variable annuity liabilities | 3863.3 | 3708.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 13368.0 | 13200.3 |
| &nbsp;&nbsp;Preferred stock, $0.001 par value, authorized<br>1,000,000 shares; none issued |  |  |
| &nbsp;&nbsp;Common stock, $0.001 par value, authorized 75,000,000 shares;<br>issued, 2025, 67,179,644; 2024, 67,032,164 | 0.1 | 0.1 |
| Additional paid-in capital | 530.4 | 525.2 |
| Retained earnings | 1586.5 | 1548.2 |
| Accumulated other comprehensive income (loss), net of tax: |  |  |
| &nbsp;&nbsp;&nbsp;Net unrealized investment losses on fixed maturity securities | (309.9) | (357.4) |
| &nbsp;&nbsp;&nbsp;Net reserve remeasurements attributable to discount rates | 99.8 | 110.9 |
| &nbsp;&nbsp;&nbsp;Net funded status of benefit plans | (7.0) | (7.0) |
| &nbsp;&nbsp;Treasury stock, at cost, 2025, 26,345,978 shares;<br>2024, 26,167,246 shares | (539.6) | (532.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 1360.3 | 1287.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity | $14728.3 | $14487.8 |

---

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Horace Mann Educators Corporation 1 Second Quarter 2025 Form 10-Q

------

**HORACE MANN EDUCATORS CORPORATION**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)**

**($ in millions, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| ***Statements of Operations*** |  |  |  |  |
| Revenues |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | $302.6 | $280.9 | $600.9 | $556.1 |
| &nbsp;&nbsp;&nbsp;Net investment income | 110.8 | 108.4 | 226.7 | 213.8 |
| &nbsp;&nbsp;Net investment gains (losses) | (5.9) | (5.9) | (9.2) | (3.7) |
| &nbsp;&nbsp;&nbsp;Other income | 4.2 | 4.7 | 9.7 | 7.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 411.7 | 388.1 | 828.1 | 774.1 |
| Benefits, losses and expenses |  |  |  |  |
| &nbsp;&nbsp;Benefits, claims and settlement expenses <br>&nbsp;&nbsp;&nbsp;&nbsp;(Reserve remeasurement (gains)/losses, $(2.4); $(0.5); $(0.3); $(0.3)) | 183.5 | 207.3 | 366.7 | 383.6 |
| &nbsp;&nbsp;&nbsp;Interest credited | 52.7 | 53.8 | 105.5 | 106.7 |
| &nbsp;&nbsp;&nbsp;Operating expenses | 96.9 | 83.0 | 187.7 | 167.5 |
| &nbsp;&nbsp;&nbsp;DAC amortization expense | 29.9 | 27.0 | 59.5 | 54.0 |
| &nbsp;&nbsp;&nbsp;Intangible asset amortization expense | 3.6 | 3.7 | 7.2 | 7.3 |
| &nbsp;&nbsp;&nbsp;Interest expense | 8.6 | 8.7 | 17.5 | 17.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total benefits, losses and expenses | 375.2 | 383.5 | 744.1 | 736.5 |
| Income before income taxes | 36.5 | 4.6 | 84.0 | 37.6 |
| Income tax expense  | 7.1 | 0.8 | 16.4 | 7.3 |
| Net income | $29.4 | $3.8 | $67.6 | $30.3 |
| Net income per share |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.71 | $0.09 | $1.64 | $0.74 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.71 | $0.09 | $1.63 | $0.73 |
| Weighted average number of shares and equivalent shares |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 41.3 | 41.4 | 41.3 | 41.3 |
| &nbsp;&nbsp;&nbsp;Diluted | 41.6 | 41.6 | 41.6 | 41.5 |
| ***Statements of Comprehensive Income (Loss)*** |  |  |  |  |
| Net income | $29.4 | $3.8 | $67.6 | $30.3 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in net unrealized investment losses on <br>&nbsp;&nbsp;&nbsp;&nbsp;fixed maturity securities | 4.6 | (22.4) | 47.5 | (42.1) |
| &nbsp;&nbsp;&nbsp;Change in net reserve remeasurements attributable <br>&nbsp;&nbsp;&nbsp;&nbsp;to discount rates | 0.7 | 32.0 | (11.1) | 73.4 |
| &nbsp;&nbsp;&nbsp;Change in net funded status of benefit plans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income | 5.3 | 9.6 | 36.4 | 31.3 |
| Comprehensive income | $34.7 | $13.4 | $104.0 | $61.6 |

---

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Horace Mann Educators Corporation 2 Second Quarter 2025 Form 10-Q

------

**HORACE MANN EDUCATORS CORPORATION**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED)**

**($ in millions, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Common stock, $0.001 par value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | $0.1 | $0.1 | $0.1 | $0.1 |
| &nbsp;&nbsp;&nbsp;Options exercised |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of common stock units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of restricted stock units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Ending balance | 0.1 | 0.1 | 0.1 | 0.1 |
| Additional paid-in capital |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | 526.1 | 513.1 | 525.2 | 510.9 |
| &nbsp;&nbsp;&nbsp;Options exercised and conversion of common and <br> restricted stock units | 1.7 | 0.3 | 0.1 | 0.2 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | 2.6 | 2.4 | 5.1 | 4.7 |
| &nbsp;&nbsp;&nbsp;Ending balance | 530.4 | 515.8 | 530.4 | 515.8 |
| Retained earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | 1571.7 | 1514.4 | 1548.2 | 1502.2 |
| &nbsp;&nbsp;Net income | 29.4 | 3.8 | 67.6 | 30.3 |
| &nbsp;&nbsp;Dividends, 2025, $0.35 per share; 2024, $0.34 per share | (14.6) | (14.2) | (29.3) | (28.5) |
| &nbsp;&nbsp;&nbsp;Ending balance | 1586.5 | 1504.0 | 1586.5 | 1504.0 |
| Accumulated other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | (222.4) | (292.3) | (253.5) | (314.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in net unrealized investment losses<br>on fixed maturity securities | 4.6 | (22.4) | 47.5 | (42.1) |
| &nbsp;&nbsp;Change in net reserve remeasurements attributable <br>&nbsp;&nbsp;&nbsp;&nbsp;to discount rates | 0.7 | 32.0 | (11.1) | 73.4 |
| &nbsp;&nbsp;&nbsp;Change in net funded status of benefit plans |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Ending balance | (217.1) | (282.7) | (217.1) | (282.7) |
| Treasury stock, at cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning balance | (532.7) | (523.9) | (532.5) | (523.9) |
| &nbsp;&nbsp;&nbsp;Treasury stock acquired - share repurchase authorization | (6.9) | (4.5) | (7.1) | (4.5) |
| &nbsp;&nbsp;&nbsp;Ending balance | (539.6) | (528.4) | (539.6) | (528.4) |
| Shareholders' equity at end of period | $1360.3 | $1208.8 | $1360.3 | $1208.8 |

---

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Horace Mann Educators Corporation 3 Second Quarter 2025 Form 10-Q

------

**HORACE MANN EDUCATORS CORPORATION**

**CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

**($ in millions)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** |
| Cash flows - operating activities |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) | $67.6 | $30.3 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash provided <br> by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment gains (losses) | 9.2 | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and intangible asset amortization | 13.6 | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expense | 5.2 | 5.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss (gain) from equity method investments, net of dividends or distributions | (2.4) | 14.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insurance liabilities | 75.9 | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts due under reinsurance agreements | 21.1 | 23.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax liabilities | (8.1) | 13.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other operating assets and liabilities | 86.2 | 12.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions to defined benefits plan | (0.4) | (0.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net | 4.2 | (1.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 272.1 | 114.7 |
| Cash flows - investing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities purchases | (446.5) | (602.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities sales | 129.9 | 193.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities maturities, paydowns, calls and redemptions | 314.3 | 248.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities purchases | (1.3) | (1.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity securities sales and repayments | 6.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests purchases | (33.6) | (37.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests sales | 19.5 | 49.4 |
| &nbsp;&nbsp;&nbsp;Change in short-term and other investments, net | (65.3) | 63.2 |
| &nbsp;&nbsp;&nbsp;Other-net | 4.7 | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (72.0) | (87.2) |
| Cash flows - financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Dividends paid to shareholders | (28.6) | (27.8) |
| &nbsp;&nbsp;&nbsp;Treasury stock acquired | (7.1) | (4.5) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 1.4 | 1.1 |
| &nbsp;&nbsp;&nbsp;Withholding tax payments on RSUs tendered | (2.1) | (1.7) |
| &nbsp;&nbsp;&nbsp;Annuity contracts: variable, fixed and FHLB funding agreements: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposits | 576.2 | 409.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits, withdrawals and net transfers to<br> Separate Account variable annuity assets | (309.8) | (288.2) |
| &nbsp;&nbsp;&nbsp; Repayment of FHLB funding agreements | (354.5) | (155.0) |
| &nbsp;&nbsp;&nbsp;Life policy accounts deposits, withdrawals, and surrenders | 8.2 | 5.9 |
| &nbsp;&nbsp;&nbsp;Change in deposit asset on reinsurance | (70.4) | (30.5) |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in reverse repurchase agreements | (12.0) | 45.0 |
| &nbsp;&nbsp;&nbsp;Change in book overdrafts | 1.4 | 3.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (197.3) | (42.6) |
| Net decrease in cash | 2.8 | (15.1) |
| Cash at beginning of period | 38.1 | 29.7 |
| Cash at end of period | $40.9 | $14.6 |

---

The accompanying Notes are an integral part of these Consolidated Financial Statements.

Horace Mann Educators Corporation 4 Second Quarter 2025 Form 10-Q

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**HORACE MANN EDUCATORS CORPORATION**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**NOTE 1 - Basis of Presentation and Significant Accounting Policies**

**Business**

Horace Mann Educators Corporation is a holding company for insurance subsidiaries that market and underwrite personal lines of property and casualty insurance products (primarily personal lines of auto and property insurance), life insurance products, retirement products (primarily tax-qualified fixed and variable annuities), individual supplemental insurance products (primarily cancer, heart, hospital, supplemental disability and accident coverages), and group benefit products (primarily short-term and long-term group disability, and group term life coverages), primarily to K-12 teachers, administrators and other employees of public schools and their families (collectively, HMEC, the Company or Horace Mann).

The Company conducts and manages its business in four reporting segments: (1) Property & Casualty, (2) Life & Retirement, (3) Supplemental & Group Benefits and (4) Corporate & Other.

**Basis of Presentation**

The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in conformity with GAAP, but are not required for interim reporting purposes, have been omitted. These Consolidated Financial Statements and Notes thereto should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Part II - Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The results of operations for the three and six months ended June 30, 2025 are not necessarily indicative of the results to be expected for the full year.

The accompanying Consolidated Financial Statements and Notes thereto are unaudited and reflect all adjustments (generally consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Part II - Item 8, Note 1 of the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

In the quarter ended June 30, 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error related to private debt securities associated with the Company's limited partnership investments. The $8.1 million after tax ($10.2 million pre-tax) adjustment decreases net income for the following segments: Life & Retirement $5.3 million; and Supplemental & Group Benefits, $2.8 million. The out-of-period correction would have resulted in a decrease of net income for year ended December 31, 2024 and 2023 by $4.4 and $1.3 million, respectively. The out-of-period correction would have resulted in a decrease of net income for the three and six months ended June 30, 2024 by $0.8 and $2.5 million, respectively.

The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation.

**Consolidation**

All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated.

**Use of Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Horace Mann Educators Corporation 5 Second Quarter 2025 Form 10-Q

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**NOTE 1 - Basis of Presentation and Significant Accounting Policies (continued)**

The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves.

**Future Adoption of New Accounting Standards**

*Improvements to Income Tax Disclosures*

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.

This guidance will be effective for the Company for annual periods beginning after December 15, 2024 and interim periods beginning after December 15, 2025. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows.

*Disaggregation of Income Statement Expenses*

In November 2024, the FASB issued ASU 2024-04, 03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance will improve the disclosures regarding a public business entity's expenses by requiring (1) disclosure of the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption, (2) inclusion of certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements, (3) disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and (4) disclosure of the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses.

The amendments in this guidance will be effective for the Company for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows.

**NOTE 2 - Investments**

**Net Investment Income**

The components of net investment income for the following periods were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Fixed maturity securities | $59.4 | $72 | $131 | $142.4 |
| Equity securities | 1.0 | 1.4 | 2.0 | 2.6 |
| Limited partnership interests | 23.2 | 8.2 | 39.5 | 14.4 |
| Short-term and other investments | 5.2 | 4.3 | 10.6 | 9.0 |
| Investment expenses | (3.1) | (3.2) | (5.9) | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income - investment portfolio | 85.7 | 82.7 | 177.2 | 162.6 |
| Investment income - deposit asset on reinsurance | 25.1 | 25.7 | 49.5 | 51.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total net investment income<sup>(1)</sup> | $110.8 | $108.4 | $226.7 | $213.8 |

---

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Horace Mann Educators Corporation 6 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

**Net Investment Gains (Losses)**

Net investment gains (losses) for the following periods were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Fixed maturity securities | $(4.1) | $(2.3) | $(3.9) | $(3.3) |
| Equity securities | (0.7) | (2.1) | (2.0) | 0.5 |
| Short-term investments and other | (1.1) | (1.5) | (3.3) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | $(5.9) | $(5.9) | $(9.2) | $(3.7) |

---

The Company, from time to time, sells fixed maturity securities subsequent to the reporting date but prior to the issuance of the financial statements that were in an unrealized loss position but no credit loss was recognized and there was no intent to sell the securities at the reporting date. Such sales are due to issuer-specific events occurring subsequent to the reporting date that result in a change in the Company's intent to sell a fixed maturity security. The types of events that may result in a sale include significant changes in the economic facts and circumstances related to the invested asset, significant unforeseen changes in liquidity needs, or changes in the Company's investment strategy.

**Net Investment Gains (Losses) by Transaction Type**

The breakdown of net investment gains (losses) by transaction type for the following periods were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Credit loss impairments | $(0.9) | $0.9 | $(0.9) | $— |
| Intent-to-sell impairments | (2.2) |  | (2.2) |  |
| &nbsp;&nbsp;&nbsp;Total impairments | (3.1) | 0.9 | (3.1) |  |
| Sales and other, net | 2.0 | (3.2) | 4.1 | (3.3) |
| Change in fair value - equity securities | (0.7) | (2.1) | (1.9) | 0.5 |
| &nbsp;&nbsp;&nbsp;Change in fair value and gains (losses) realized<br>on settlements - derivatives | (4.1) | (1.5) | (8.3) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | $(5.9) | $(5.9) | $(9.2) | $(3.7) |

---

**Allowance for Credit Loss Impairments on Fixed Maturity Securities**

The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Beginning balance | $0.9 | $2.1 | $0.9 | $1.2 |
| &nbsp;&nbsp;&nbsp;Credit losses on fixed maturity securities for which credit losses were not previously reported | 3.1 | 0.8 | 3.1 | 1.7 |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) related to credit losses previously reported | (0.9) | (0.9) | (0.9) | (0.9) |
| &nbsp;&nbsp;&nbsp;Reduction of credit allowances related to sales |  | (0.9) |  | (0.9) |
| &nbsp;&nbsp;&nbsp;Write-offs |  |  |  |  |
| Ending balance | $3.1 | $1.1 | $3.1 | $1.1 |

---

Horace Mann Educators Corporation 7 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

**Fixed Maturity Securities**

The Company's investment portfolio is comprised primarily of fixed maturity securities. Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Amortized<br>Cost, net** | **Gross Unrealized<br>Gains** | **Gross Unrealized<br>Losses** | **Fair<br>Value** |
| June 30, 2025 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally<br>sponsored agency obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $643.5 | $5.5 | $43.5 | $605.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including U.S. Treasury securities | 424.4 | 0.7 | 61.5 | 363.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1240.0 | 17.5 | 105.6 | 1151.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 14.1 |  | 0.8 | 13.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 1955.1 | 24.2 | 208.5 | 1770.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 1570.3 | 12.5 | 34.6 | 1548.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $5847.4 | $60.4 | $454.5 | $5453.3 |
| December 31, 2024 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally<br>sponsored agency obligations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $827.9 | $2.7 | $74.8 | $755.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including U.S. Treasury securities | 426.5 | 0.1 | 69.0 | 357.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1239.1 | 17.5 | 105.8 | 1150.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 14.1 |  | 1.0 | 13.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 1995.2 | 17.3 | 230.1 | 1782.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 1339.7 | 10.8 | 22.3 | 1328.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $5842.5 | $48.4 | $503.0 | $5387.9 |

---

Horace Mann Educators Corporation 8 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of June 30, 2025 and December 31, 2024, respectively. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of June 30, 2025 as due to factors other than a credit loss. As of June 30, 2025, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell the fixed maturity securities with unrealized losses before a recovery of the amortized cost basis. In reaching our conclusion that an allowance for credit is unnecessary, we considered the factors described in the evaluation of credit loss impairments for fixed maturity securities critical accounting estimate in our Annual Report on Form 10-K. In the current six months ended June 30, 2025, the performance of fixed maturity securities has been impacted by the change in interest rates, specifically interest rates being at relatively high levels compared to interest rates at the time of acquisition of the securities. In consideration of the factors, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the following table.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **12 Months or Less** | **12 Months or Less** | **More than 12 Months** | **More than 12 Months** | **Total** | **Total** |
| | **Fair Value** | **Gross<br>Unrealized<br>Losses** | **Fair Value** | **Gross<br>Unrealized<br>Losses** | **Fair Value** | **Gross<br>Unrealized<br>Losses** |
| June 30, 2025 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally <br>sponsored agency obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $61.8 | $1 | $249.4 | $42.5 | $311.2 | $43.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 19.8 | 0.2 | 280.4 | 61.3 | 300.2 | 61.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 255.9 | 9.0 | 625.4 | 96.6 | 881.3 | 105.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 1.0 |  | 11.9 | 0.8 | 12.9 | 0.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 131.9 | 11.7 | 1064.1 | 196.8 | 1196.0 | 208.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 188.9 | 1.2 | 445.1 | 33.4 | 634.0 | 34.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $659.3 | $23.1 | $2676.3 | $431.4 | $3335.6 | $454.5 |
| &nbsp;&nbsp;Number of positions with a<br>&nbsp;&nbsp;&nbsp;&nbsp;gross unrealized loss | 511 |  | 1783 |  | 2294 |  |
| &nbsp;&nbsp;Fair value as a percentage of total fixed<br>&nbsp;&nbsp;&nbsp;&nbsp;maturity securities at fair value | 12.1% |  | 49.1% |  | 61.2% |  |
| December 31, 2024 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally <br>sponsored agency obligations: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $208.3 | $3.1 | $419.3 | $71.7 | $627.6 | $74.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | 77.1 | 1.5 | 274.6 | 67.6 | 351.7 | 69.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 193.5 | 3.4 | 632.0 | 102.4 | 825.5 | 105.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 1.5 |  | 11.7 | 0.9 | 13.2 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 235.4 | 10.3 | 1075.8 | 219.8 | 1311.2 | 230.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 133.3 | 0.9 | 338.3 | 21.4 | 471.6 | 22.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $849.1 | $19.2 | $2751.7 | $483.8 | $3600.8 | $503 |
| &nbsp;&nbsp;Number of positions with a<br>&nbsp;&nbsp;&nbsp;&nbsp;gross unrealized loss | 665 |  | 1862 |  | 2527 |  |
| &nbsp;&nbsp;Fair value as a percentage of total fixed<br>&nbsp;&nbsp;&nbsp;&nbsp;maturity securities at fair value | 15.8% |  | 51.1% |  | 66.9% |  |

---

Horace Mann Educators Corporation 9 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings were as follows:

---

| | | |
|:---|:---|:---|
| | **Number of Positions** | **Number of Positions** |
| | **June 30, 2025** | **December 31, 2024** |
| Credit Rating |  |  |
| &nbsp;&nbsp;&nbsp;AAA | 141 | 155 |
| &nbsp;&nbsp;&nbsp;AA | 894 | 899 |
| &nbsp;&nbsp;&nbsp;A | 308 | 320 |
| &nbsp;&nbsp;&nbsp;BBB | 340 | 370 |
| &nbsp;&nbsp;Total investment grade  | 1683 | 1744 |
| &nbsp;&nbsp;&nbsp;BB | 37 | 40 |
| &nbsp;&nbsp;&nbsp;B | 11 | 18 |
| &nbsp;&nbsp;&nbsp;CCC or lower | 4 | 4 |
| &nbsp;&nbsp;Total below investment grade | 52 | 62 |
| &nbsp;&nbsp;&nbsp;Not rated | 48 | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals: | 1783 | 1862 |

---

Fixed maturity securities with an investment grade rating represented 97.1% of the gross unrealized losses as of June 30, 2025. For the same reasons discussed above, we expect to receive cash flow sufficient to recover the entire amortized cost basis of the securities in the previous table.

*Maturities of Fixed Maturity Securities*

The following table presents the distribution of the Company's fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments.

---

| | | | |
|:---|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Amortized<br>Cost, net** | **Fair<br>Value** | **Percent of Total Fair Value** |
| Estimated expected maturity: |  |  |  |
| &nbsp;&nbsp;&nbsp;Due in 1 year or less | $2251.8 | $2189.5 | 40.2% |
| &nbsp;&nbsp;&nbsp;Due after 1 year through 5 years | 925.6 | 898.5 | 16.5% |
| &nbsp;&nbsp;&nbsp;Due after 5 years through 10 years | 925.0 | 893.4 | 16.4% |
| &nbsp;&nbsp;&nbsp;Due after 10 years through 20 years | 981.5 | 859.8 | 15.8% |
| &nbsp;&nbsp;&nbsp;Due after 20 years | 763.5 | 612.1 | 11.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $5847.4 | $5453.3 | 100.0% |
| Average option-adjusted duration, in years | 5.7 |  |  |

---

Horace Mann Educators Corporation 10 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

*Sales of Fixed Maturity and Equity Securities*

Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Fixed maturity securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds received | $52.1 | $105.1 | $129.9 | $193.0 |
| &nbsp;&nbsp;&nbsp;Gross gains realized | 0.5 | 0.7 | 1.7 | 2.0 |
| &nbsp;&nbsp;&nbsp;Gross losses realized | (1.5) | (3.9) | (2.5) | (5.3) |
| Equity securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds received | $6.3 | $— | $6.3 | $— |
| &nbsp;&nbsp;&nbsp;Gross gains realized |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross losses realized |  |  |  |  |

---

*Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities*

The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net unrealized investment gains (losses)<br> on fixed maturity securities, net of tax |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Beginning of period | $(314.5) | $(348.0) | $(357.4) | $(328.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in net unrealized investment gains<br> (losses) on fixed maturity securities | 1.4 | (24.1) | 44.4 | (44.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of net investment losses<br> on fixed maturity securities to net income | 3.2 | 1.7 | 3.1 | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;End of period | $(309.9) | $(370.4) | $(309.9) | $(370.4) |

---

**Limited Partnership Interests**

Investments in limited partnership interests are predominately accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, real estate equity funds, private equity funds, infrastructure equity funds, infrastructure debt funds and other funds. In addition, we have two limited partnership investments accounted for at fair value using the fair value option (FVO). Principal factors influencing carrying amount appreciation or depreciation include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. The carrying amounts of EMA limited partnership interests were as follows:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | | |
| | **June 30, 2025** | **December 31, 2024** |
| Commercial mortgage loan funds | $591.1 | $596.0 |
| Real estate equity funds | 144.8 | 144.7 |
| Private equity funds  | 110.9 | 102.2 |
| Infrastructure equity funds | 83.8 | 81.7 |
| Infrastructure debt funds | 67.2 | 69.0 |
| Other funds<sup>(1)</sup> | 140.0 | 127.7 |
| &nbsp;&nbsp;&nbsp;Total | $1137.8 | $1121.3 |

---

<sup>(1)</sup> Other funds consist primarily of limited partnership interests in corporate mezzanine, venture capital and private credit funds.

Horace Mann Educators Corporation 11 Second Quarter 2025 Form 10-Q

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 **NOTE 2 - Investments (continued)**

**Offsetting of Assets and Liabilities**

The Company's derivatives are subject to enforceable master netting arrangements. Collateral support agreements associated with each master netting arrangement provides that the Company will receive or pledge financial collateral in the event minimum thresholds have been reached. The Company's reverse repurchase agreements are also subject to enforceable master netting arrangements but there was no offsetting in their presentation in the Company's Consolidated Balance Sheets. Information regarding the Company's derivatives is contained in Part II - Item 8, Note 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The following table presents instruments that were subject to a master netting arrangement for the Company.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | | **Gross<br>Amounts<br>Offset in the<br>Consolidated<br>Balance<br>Sheets** | **Net Amounts<br>of Assets/<br>Liabilities<br>Presented<br>in the<br>Consolidated<br>Balance<br>Sheets** | **Gross Amounts Not Offset<br>in the Consolidated<br>Balance Sheets** | **Gross Amounts Not Offset<br>in the Consolidated<br>Balance Sheets** | |
| | **Gross<br>Amounts** | **Gross<br>Amounts<br>Offset in the<br>Consolidated<br>Balance<br>Sheets** | **Net Amounts<br>of Assets/<br>Liabilities<br>Presented<br>in the<br>Consolidated<br>Balance<br>Sheets** | **Financial<br>Instruments** | **Cash<br>Collateral<br>Received** | **Net<br>Amount** |
| June 30, 2025 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset derivatives: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Free-standing derivatives | $15.9 | $— | $15.9 | $— | $15.3 | $0.6 |
| December 31, 2024 |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset derivatives: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Free-standing derivatives | $18.5 | $— | $18.5 | $— | $20.4 | $(1.9) |

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**Reverse Repurchase Agreements**

In connection with reverse repurchase agreements, the Company transfers primarily U.S. government, government agency and corporate securities and receives cash. For reverse repurchase agreements, the Company receives cash in an amount equal to at least 95% of the fair value of the securities transferred, and the agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The Company accounts for reverse repurchase agreements as secured borrowings. The securities transferred under reverse repurchase agreements are included in Fixed maturity securities with the obligation to repurchase those securities reported in Other liabilities on the Company's Consolidated Balance Sheets. The fair value of the securities transferred was $0.0 million as of June 30, 2025 and $12.4 million as of December 31, 2024. The obligation for securities sold under reverse repurchase agreements was a net amount of $0.0 million as of June 30, 2025 and $12.0 million as of December 31, 2024.

**Deposits**

As of June 30, 2025 and December 31, 2024, fixed maturity securities with a fair value of $25.8 million and $27.1 million were on deposit with governmental agencies as required by law in various states for which the insurance subsidiaries of HMEC conduct business. In addition, as of June 30, 2025 and December 31, 2024, fixed maturity securities with a fair value of $1,127.7 million and $1,072.2 million, respectively, were on deposit with the Federal Home Loan Bank of Chicago (FHLB) as collateral for amounts subject to funding agreements, advances and borrowings which were equal to $999.5 million as of June 30, 2025 and $989.5 million as of December 31, 2024. The deposited securities are reported as Fixed maturity securities on the Company's Consolidated Balance Sheets.

**NOTE 3 - Fair Value of Financial Instruments** 

The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values for the Company's insurance contracts other than annuity contracts (which are investment contracts) and equity method limited partnership interests are not required to be disclosed in fair value hierarchy. The estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk through the matching of investment maturities with amounts due under insurance contracts.

Information regarding the three-level fair value hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at each reporting date is included in Part II - Item 8, Note 3 of the

Horace Mann Educators Corporation 12 Second Quarter 2025 Form 10-Q

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**NOTE 3 - Fair Value of Financial Instruments (continued)**

Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

**Financial Instruments Measured and Carried at Fair Value on a Recurring Basis**

The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the six months ended June 30, 2025 and 2024, there were no transfers between Level 1 and Level 2. As of June 30, 2025, Level 3 invested assets comprised 9.1% of the Company's total investment portfolio at fair value.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Carrying<br>Amount** | **Fair<br>Value** | **Fair Value Measurements at<br>Reporting Date Using** | **Fair Value Measurements at<br>Reporting Date Using** | **Fair Value Measurements at<br>Reporting Date Using** |
| | **Carrying<br>Amount** | **Fair<br>Value** | **Level 1** | **Level 2** | **Level 3** |
| June 30, 2025 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally<br> sponsored agency obligations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $605.5 | $605.5 | $— | $605.5 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including U.S. Treasury securities | 363.6 | 363.6 | 24.9 | 338.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1151.9 | 1151.9 |  | 1076.0 | 75.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 13.3 | 13.3 |  | 13.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 1770.8 | 1770.8 | 4.9 | 1423.9 | 342.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 1548.2 | 1548.2 |  | 1485.0 | 63.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | 5453.3 | 5453.3 | 29.8 | 4942.4 | 481.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 58.3 | 58.3 | 1.3 | 52.7 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests | 33.7 | 33.7 |  |  | 33.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 155.6 | 155.6 | 155.6 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 15.9 | 15.9 |  | 15.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $5716.8 | $5716.8 | $186.7 | $5011.0 | $519.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Account variable annuity assets<sup>(1)</sup> | $3863.3 | $3863.3 | $3863.3 | $— | $— |
| &nbsp;&nbsp;Financial Liabilities<sup>(2)</sup> | $78.1 | $78.1 | $— | $4.1 | $74.0 |
| December 31, 2024 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally<br> sponsored agency obligations: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $755.8 | $755.8 | $— | $755.8 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including U.S. Treasury securities | 357.6 | 357.6 | 24.7 | 332.9 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1150.8 | 1150.8 |  | 1075.9 | 74.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign government bonds | 13.1 | 13.1 |  | 13.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 1782.4 | 1782.4 | 7.7 | 1423.4 | 351.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 1328.2 | 1328.2 |  | 1254.5 | 73.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | 5387.9 | 5387.9 | 32.4 | 4855.6 | 499.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 66.5 | 66.5 | 1.4 | 60.9 | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests | 28.9 | 28.9 |  |  | 28.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term investments | 101.1 | 101.1 | 101.1 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investments | 18.5 | 18.5 |  | 18.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | $5602.9 | $5602.9 | $134.9 | $4935.0 | $533.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Account (variable annuity) assets<sup>(1)</sup> | $3708.8 | $3708.8 | $3708.8 | $— | $— |
| &nbsp;&nbsp;Financial Liabilities<sup>(2)</sup> | $79.6 | $79.6 | $— | $4.1 | $75.5 |

---

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets.

<sup>(2)</sup> Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.

Horace Mann Educators Corporation 13 Second Quarter 2025 Form 10-Q

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**NOTE 3 - Fair Value of Financial Instruments (continued)**

**Changes in Level 3 Fair Value Measurements**

The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial**<br>**Liabilities**<sup>(1)</sup> |
| | **Municipal<br>Bonds** | **Corporate<br>Bonds** | <br>**Mortgage-Backed**<br>**and Other**<br>**Asset-**<br>**Backed**<br>**Securities**<sup>(2)</sup> | **Total<br>Fixed<br>Maturity<br>Securities** | **Equity Securities & Limited Partnership Interests** | **Total** | |
| Beginning balance, April 1, 2025 | $76.1 | $340.9 | $67.1 | $484.1 | $38.9 | $523.0 | $74.3 |
| &nbsp;&nbsp;Transfers into Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Transfers out of Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total gains or losses |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) included in net income |  |  |  |  | (0.9) | (0.9) |  |
| &nbsp;&nbsp;&nbsp; Net investment (gains) losses included in net income related to financial liabilities  |  |  |  |  |  |  | 3.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses) <br>&nbsp;&nbsp;&nbsp;&nbsp;included in OCI | 0.1 | 2.4 | 0.3 | 2.8 |  | 2.8 | (0.4) |
| &nbsp;&nbsp;&nbsp;Purchases |  | 8.9 |  | 8.9 |  | 8.9 |  |
| &nbsp;&nbsp;&nbsp;Issuances |  |  |  |  |  |  | 0.7 |
| &nbsp;&nbsp;&nbsp;Sales |  | (3.0) | (1.7) | (4.7) |  | (4.7) |  |
| &nbsp;&nbsp;&nbsp;Settlements |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Paydowns, maturities and distributions | (0.3) | (7.3) | (2.5) | (10.1) |  | (10.1) | (4.3) |
| Ending balance, June 30, 2025 | $75.9 | $342.0 | $63.2 | $481.0 | $38.0 | $519.0 | $74.0 |
| Beginning balance, January 1, 2025 | $74.9 | $351.3 | $73.7 | $499.9 | $33.1 | $533.0 | $75.5 |
| &nbsp;&nbsp;Transfers into Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Transfers out of Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total gains or losses |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) included in net income |  |  |  |  | 4.9 | 4.9 |  |
| &nbsp;&nbsp;&nbsp; Net investment (gains) losses included in net income related to financial liabilities  |  |  |  |  |  |  | 5.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains (losses)<br>&nbsp;&nbsp;&nbsp;&nbsp;included in OCI | 1.5 | 1.8 | (0.2) | 3.0 |  | 3.0 | (0.2) |
| &nbsp;&nbsp;&nbsp;Purchases |  | 22.3 |  | 22.3 |  | 22.3 |  |
| &nbsp;&nbsp;&nbsp;Issuances |  |  |  |  |  |  | 2.1 |
| &nbsp;&nbsp;&nbsp;Sales |  | (25.3) | (1.8) | (27.1) |  | (27.1) |  |
| &nbsp;&nbsp;&nbsp;Settlements |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Paydowns, maturities and distributions | (0.5) | (8.1) | (8.5) | (17.1) |  | (17.1) | (9.0) |
| Ending balance, June 30, 2025 | $75.9 | $342.0 | $63.2 | $481.0 | $38.0 | $519.0 | $74.0 |

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<sup>(1)</sup> Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.

<sup>(2)</sup> Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities.

<sup>(3)</sup> Transfers into and out of Level 3 during the three and six months ended June 30, 2025 and 2024 were related to changes in the primary pricing source or changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined.

Horace Mann Educators Corporation 14 Second Quarter 2025 Form 10-Q

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**NOTE 3 - Fair Value of Financial Instruments (continued)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial Assets** | **Financial<br>Liabilities**<sup>(1)</sup> |
| | **Municipal<br>Bonds** | **Corporate<br>Bonds** | <br>**Mortgage-Backed**<br>**and Other**<br>**Asset-**<br>**Backed**<br>**Securities**<sup>(2)</sup> | **Total<br>Fixed<br>Maturity<br>Securities** | **Equity<br>Securities** | **Total** | |
| Beginning balance, April 1, 2024 | $73.2 | $345.5 | $88.7 | $507.4 | $2.5 | $509.9 | $80.8 |
| &nbsp;&nbsp;Transfers into Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Transfers out of Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total gains or losses |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) included in net income |  | (0.8) | 0.8 |  | 0.2 | 0.2 |  |
| &nbsp;&nbsp;&nbsp; Net investment (gains) losses included in net income related to financial liabilities  |  |  |  |  |  |  | (0.3) |
| &nbsp;&nbsp;&nbsp;Net unrealized gains (losses)<br>&nbsp;&nbsp;&nbsp;&nbsp;included in OCI | (0.7) | 0.4 | (0.9) | (1.2) |  | (1.2) | 0.1 |
| &nbsp;&nbsp;&nbsp;Purchases |  | 27.6 | 1.8 | 29.4 |  | 29.4 |  |
| &nbsp;&nbsp;&nbsp;Issuances |  |  |  |  |  |  | 1.4 |
| &nbsp;&nbsp;&nbsp;Sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Settlements |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Paydowns, maturities and distributions | (0.4) | (6.3) | (5.0) | (11.7) |  | (11.7) | (4.1) |
| Ending balance, June 30, 2024 | $72.1 | $366.4 | $85.4 | $523.9 | $2.7 | $526.6 | $77.9 |
| Beginning balance, January 1, 2024 | $74 | $342.5 | $97.5 | $514 | $4.5 | $518.5 | $82.4 |
| &nbsp;&nbsp;Transfers into Level 3<sup>(3)</sup> |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Transfers out of Level 3<sup>(3)</sup> |  | (4.4) |  | (4.4) |  | (4.4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total gains or losses |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) included in net income |  | (0.8) | 0.8 |  | 0.3 | 0.3 |  |
| &nbsp;&nbsp;&nbsp; Net investment (gains) losses included in net income related to financial liabilities |  |  |  |  |  |  | 1.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gains/losses <br>&nbsp;&nbsp;&nbsp;&nbsp;included in OCI | (1.4) | (0.2) | 1.5 | (0.1) |  | (0.1) |  |
| &nbsp;&nbsp;&nbsp;Purchases |  | 41.7 | 1.8 | 43.5 |  | 43.5 |  |
| &nbsp;&nbsp;&nbsp;Issuances |  |  |  |  |  |  | 2.8 |
| &nbsp;&nbsp;&nbsp;Sales |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Settlements |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Paydowns, maturities and distributions | (0.5) | (12.4) | (16.2) | (29.1) | (2.1) | (31.2) | (8.3) |
| Ending balance, June 30, 2024 | $72.1 | $366.4 | $85.4 | $523.9 | $2.7 | $526.6 | $77.9 |

---

For the three and six months ended June 30, 2025, the Company had net losses of $0.9 million and net gains $4.9 million with respect to Level 3 financial assets. For the three and six months ended June 30, 2024, the Company had net gains of $0.2 million and $0.3 million with respect to Level 3 financial assets.

For the three and six months ended June 30, 2025, the Company had net losses of $3.7 million and $5.6 million, respectively, that were included in net income and attributable to changes in the fair value of Level 3 financial liabilities. For the three and six months ended June 30, 2024, the Company had net gains of $0.3 million and net losses of $1.0 million, respectively, that were included in net income that were attributable to changes in the fair value of Level 3 financial liabilities.

Horace Mann Educators Corporation 15 Second Quarter 2025 Form 10-Q

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**NOTE 3 - Fair Value of Financial Instruments (continued)**

**Level 3 Assets and Liabilities by Price Source** 

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources:

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| | | | |
|:---|:---|:---|:---|
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** |
| | **Total** | **Internal**  | **External** |
| June 30, 2025 |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally sponsored agency obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 75.9 |  | 75.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 342.0 | 203.7 | 138.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 63.2 |  | 63.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | 481.1 | 203.7 | 277.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 4.3 |  | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests | 33.7 |  | $33.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | 519.1 | 203.7 | 315.4 |
| &nbsp;&nbsp;Financial Liabilities<sup>(1)</sup> | 74.0 | 74.0 |  |
| December 31, 2024 |  |  |  |
| &nbsp;&nbsp;Financial Assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed maturity securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally sponsored agency obligations: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 74.9 |  | 74.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | 351.3 | 199.3 | 152.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed securities | 73.7 |  | 73.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | 499.9 | 199.3 | 300.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity securities | 4.2 |  | 4.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnership interests | 28.9 |  | 28.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Totals | 533.0 | 199.3 | 333.7 |
| Financial Liabilities<sup>(1)</sup> | $75.5 | $75.5 | $— |

---

<sup>(1)</sup> Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets.

External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available.

Horace Mann Educators Corporation 16 Second Quarter 2025 Form 10-Q

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**NOTE 3 - Fair Value of Financial Instruments (continued)**

**Quantitative Information about Level 3 Fair Value Measurements**

The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized with Level 3.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | **($ in millions)** | |
|  | **Fair Value** <br>**as of** <br>**June 30, 2025** | **Valuation Technique(s)** | **Unobservable Inputs** | **Range** <br>**(Weighted Average)**<br>**and Single Point** <br>**Best Estimate**<sup>(1)</sup> | **Impact of Increase in Input on Fair Value**  |
| Financial Assets  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Corporate bonds  | $203.7 | discounted cash flow  | yield | 3.4% - 9.2% | decrease |
|  |  | discounted cash flow | option adjusted spread | 282 bps - 808 bps | decrease |
| Financial Liabilities  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivatives embedded in fixed indexed annuity products | $80.7 | discounted cash flow | lapse rate | 6.4% | decrease |
|  |  |  | mortality multiplier<sup>(2)</sup> | 67.0% | decrease |
|  |  |  | option budget | 0.9% - 3.8% | increase |
|  |  |  | non-performance adjustment<sup>(3)</sup> | 5.0% | decrease |
| &nbsp;&nbsp;&nbsp;Net MRBs | $(6.7) | discounted cash flow | lapse rate | 6.4% | decrease |
|  |  |  | mortality multiplier<sup>(2)</sup> | 67.0% | increase |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>When a range of unobservable inputs is not readily available, the Company uses a single point best estimate.

<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Mortality multiplier is applied to the Annuity 2000 table.

<sup>(3)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Determined as a percentage of the risk-free rate.

The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets and financial liabilities classified as Level 3 are subject to the processes as described in Part II - Item 8, Note 3 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Generally, valuation techniques for corporate bonds include using discounted cash flow techniques where the unobservable input is the yield.

Horace Mann Educators Corporation 17 Second Quarter 2025 Form 10-Q

------

**NOTE 3 - Fair Value of Financial Instruments (continued)**

**Financial Instruments Not Carried at Fair Value**

The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. These financial assets and financial liabilities are further described in Part II - Item 8, Note 3 in the Company's Annual Report on Form 10-K for the year ended December 31, 2024. The following table presents the carrying amount and fair value of the Company's financial assets and financial liabilities not carried at fair value and the level within the fair value hierarchy at which such financial assets and liabilities are categorized.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Carrying<br>Amount** | **Fair<br>Value** | **Fair Value Measurements at<br>Reporting Date Using** | **Fair Value Measurements at<br>Reporting Date Using** | **Fair Value Measurements at<br>Reporting Date Using** |
| | **Carrying<br>Amount** | **Fair<br>Value** | **Level 1** | **Level 2** | **Level 3** |
| June 30, 2025 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | $219.7 | $222.9 | $— | $37.5 | $185.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset on reinsurance | 2412.6 | 2145.2 |  |  | 2145.2 |
| &nbsp;&nbsp;&nbsp;Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Policyholders' account balances  | 5090.9 | 4726.0 |  |  | 4726.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other policyholder funds | 1005.8 | 1005.8 |  | 1002.9 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 547.5 | 577.1 |  | 577.1 |  |
| December 31, 2024 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial Assets |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investments | $221.0 | $224.3 | $— | $37.0 | $187.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deposit asset on reinsurance | 2434.3 | 2121.9 |  |  | 2121.9 |
| &nbsp;&nbsp;&nbsp;Financial Liabilities |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Policyholders' account balances | 5020.2 | 4710.1 |  |  | 4710.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reverse repurchase agreement | 12.0 | 12.4 |  | 12.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other policyholder funds | 995.7 | 995.7 |  | 992.9 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 547.0 | 575.1 |  | 575.1 |  |

---

Horace Mann Educators Corporation 18 Second Quarter 2025 Form 10-Q

------

**NOTE 4 - Short-Duration Insurance Contracts**

*Property & casualty Unpaid Claims and Claim Expense Reserves*

The following table is a summary reconciliation of the beginning and ending property & casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net property & casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. Also included in property & casualty claims expense reserves are legacy commercial line exposures, which are included in the Corporate & Other segment for segment reporting purposes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Property & Casualty |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning gross reserves | $416.7 | $418.2 | $420.6 | $416.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: reinsurance recoverables | 98.3 | 103.6 | 100.8 | 104.0 |
| &nbsp;&nbsp;Net reserves, beginning of period<sup>(1)</sup> | 318.4 | 314.6 | 319.8 | 312.8 |
| &nbsp;&nbsp;&nbsp;Incurred claims and claim expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Claims occurring in the current period | 141.9 | 159.0 | 265.7 | 283.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in estimated reserves for claims occurring in prior periods<sup>(2)</sup> | (5.5) | (6.2) | (10.8) | (6.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total claims and claim expenses incurred | 136.4 | 152.8 | 254.9 | 277.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Claims and claim expense payments<br>for claims occurring during: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period | 89.7 | 94.2 | 139.7 | 138.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior periods | 44.0 | 42.0 | 113.9 | 120.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total claims and claim expense payments | 133.7 | 136.2 | 253.6 | 259.1 |
| &nbsp;&nbsp;Net reserves, end of period<sup>(1)</sup> | 321.0 | 331.2 | 321.0 | 331.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: reinsurance recoverables | 98.8 | 101.7 | 98.8 | 101.7 |
| &nbsp;&nbsp;&nbsp;Ending gross reserves | $419.8 | $432.9 | $419.8 | $432.9 |

---

<sup>(1)</sup> Reserves net of expected reinsurance recoverables.

<sup>(2)</sup> Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

The company recognized $5.5 million and $10.8 million of net favorable prior years' reserve development for the three and six months ended June 30, 2025. There was $6.2 million prior years' reserve development for Property & Casualty claims for the three and six months ended June 30, 2024. The net favorable development for the six months ended June 30, 2025 was primarily a result of favorable loss trends in auto and property for accident years 2024 and prior. The net favorable development for the six months ended June 30, 2024 was primarily a result of favorable loss trends in auto and property for accident years 2023 and prior.

*Group Benefits Unpaid Claims and Claim Expense Reserves*

The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.

Horace Mann Educators Corporation 19 Second Quarter 2025 Form 10-Q

------

**NOTE 4 - Short-Duration Insurance Contracts (continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Group Benefits |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Beginning gross reserves | $109.0 | $114.3 | $104.9 | $116.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: reinsurance recoverables | 25.9 | 27.6 | 25.2 | 27.7 |
| &nbsp;&nbsp;Net reserves, beginning of period<sup>(1)</sup> | 83.1 | 86.7 | 79.7 | 88.9 |
| &nbsp;&nbsp;&nbsp;Incurred claims and claim expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Claims occurring in the current period | 18.6 | 19.4 | 37.0 | 39.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in estimated reserves for claims occurring in prior periods<sup>(2)</sup> | (3.0) | (3.3) | (2.6) | (9.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total claims and claim expenses incurred | 15.6 | 16.1 | 34.4 | 30.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Claims and claim expense payments<br>for claims occurring during: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current period | 5.9 | 8.2 | 9.7 | 12.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior periods | 5.4 | 6.5 | 17.0 | 18.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total claims and claim expense payments | 11.3 | 14.7 | 26.7 | 31.0 |
| &nbsp;&nbsp;Net reserves, end of period<sup>(1)</sup> | 87.4 | 88.1 | 87.4 | 88.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: reinsurance recoverables | 25.8 | 28.0 | 25.8 | 28.0 |
| &nbsp;&nbsp;&nbsp;Ending gross reserves | $113.2 | $116.1 | $113.2 | $116.1 |

---

<sup>(1)</sup> Reserves net of expected reinsurance recoverables.

<sup>(2)</sup> Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

Net favorable prior years' reserve development for Group Benefits was $3.0 million and $3.3 million for the three months ended June 30, 2025 and 2024, and $2.6 million and $9.4 million for the six months ended June 30, 2025 and 2024, respectively. The favorable development for the six months ended June 30, 2025 was primarily the result of favorable loss trends in group life and disability for loss years 2024 and prior. The favorable development for the six months ended June 30, 2024 was primarily the result of favorable loss trends in specialty health and group life and disability for loss years 2023 and prior.

*Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets*

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **As of June 30, 2025** | **As of December 31, 2024** |
| Ending gross reserves |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property & Casualty | $419.8 | $420.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Benefits | 113.2 | 104.9 |
| &nbsp;&nbsp;&nbsp;Total short-duration insurance contracts | 533.0 | 525.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other than short-duration<sup>(1)</sup> | 43.6 | 43.7 |
| &nbsp;&nbsp;&nbsp;Total unpaid claims and claims expenses | $576.6 | $569.2 |

---

<sup>(1)</sup> This line includes Life & Retirement, Supplemental, and other certain group benefit reserves.

**Note 5 - Long-Duration Insurance Contracts**

**Liability for Future Policy Benefits**

As of and for the three and six months ended June 30, 2025 and 2024, the Company updated the net premium ratio when updating for actual historical experience for the quarter; future cash flow assumptions were reviewed but not changed.

The following tables summarize balances and changes in LFPB for traditional and limited-pay contracts.

Horace Mann Educators Corporation 20 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The balances of and changes in LFPB as of and for the three months ended June 30, 2025 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | | | | | | |
| | **Whole Life** | **Term Life** | **Experience**<br>**Life**<sup>(1)</sup> | **Limited-Pay Whole Life** | **Supplemental**<br>**Health**<sup>(2)</sup> | **SPIA (life contingent)** |
| Present value of expected net premiums: | Present value of expected net premiums: |  |  |  |  |  |
| Balance at April 1, 2025 | $231.0 | $249.6 | $64.9 | $34.0 | $182.6 | $— |
| April 1, 2025 balance at original discount rate | 262.0 | 271.0 | 63.1 | 36.2 | 214.6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in cash flow assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 1.9 | 0.5 | 3.2 | 0.1 |  |  |
| Adjusted balance at April 1, 2025 | 263.9 | 271.5 | 66.3 | 36.3 | 214.6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances<sup>(3)</sup> | 3.4 | 5.9 |  | 0.5 | 6.6 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals<sup>(4)</sup> | 2.1 | 2.8 | 0.9 | 0.3 | 1.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums collected<sup>(5)</sup> | (4.7) | (6.9) | (1.8) | (1.0) | (6.4) | (0.7) |
| June 30, 2025 balance at original discount rate | 264.7 | 273.3 | 65.4 | 36.1 | 216.6 |  |
| &nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (30.3) | (20.1) | 2.2 | (1.9) | (30.4) |  |
| Balance at June 30, 2025 | 234.4 | 253.2 | 67.6 | 34.2 | 186.2 |  |
| Present value of expected future policy benefits: | Present value of expected future policy benefits: |  |  |  |  |  |
| Balance at April 1, 2025 | 510.7 | 387.9 | 814.8 | 87.7 | 385.6 | 97.2 |
| April 1, 2025 balance at original discount rate | 618.2 | 437.3 | 776.3 | 115.1 | 480.1 | 106.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in cash flow assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 3.1 | 0.6 | 5.4 | 0.3 | (1.0) | 0.2 |
| Adjusted balance at April 1, 2025 | 621.3 | 437.9 | 781.7 | 115.4 | 479.1 | 106.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances | 3.5 | 5.9 |  | 0.5 | 6.6 | 0.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals | 5.2 | 4.3 | 11.5 | 1.1 | 3.5 | 1.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit payments<sup>(6)</sup> | (7.9) | (5.7) | (21.4) | (0.6) | (12.4) | (2.8) |
| June 30, 2025 balance at original discount rate | 622.1 | 442.4 | 771.8 | 116.4 | 476.8 | 105.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (108.1) | (48.2) | 38.9 | (27.6) | (92.1) | (8.1) |
| Balance at June 30, 2025 | 514.0 | 394.2 | 810.7 | 88.8 | 384.7 | 97.1 |
| Net liability for future policy benefits | 279.5 | 141.0 | 743.1 | 54.6 | 198.5 | 97.1 |
| Less: Reinsurance recoverable | (60.1) | (20.4) | (0.8) | (1.5) | (4.2) | (3.7) |
| Net liability for future policy benefits, after reinsurance recoverable | 219.4 | 120.6 | 742.3 | 53.1 | 194.3 | 93.4 |
| Impact of flooring on net liability for future policy benefits |  |  |  |  |  |  |
| Net liability for future policy benefits at June 30, 2025 | $219.4 | $120.6 | $742.3 | $53.1 | $194.3 | $93.4 |

---

<sup>(1)</sup> Experience Life contains both whole life and term elements.

<sup>(2)</sup> As of June 30, 2025, the net LFPB for Supplemental Health was $69.4 million for cancer, $18.6 million for accident, $22.1 million for disability and $84.2 million for other supplemental health policies.

<sup>(3)</sup> Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.

<sup>(4)</sup> Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

<sup>(5)</sup> Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.

<sup>(6)</sup> Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.

Horace Mann Educators Corporation 21 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The balances of and changes in LFPB as of and for the six months ended June 30, 2025 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | | | | | | |
| | **Whole Life** | **Term Life** | **Experience**<br>**Life**<sup>(1)</sup> | **Limited-Pay Whole Life** | **Supplemental**<br>**Health**<sup>(2)</sup> | **SPIA (life contingent)** |
| Present value of expected net premiums: | Present value of expected net premiums: |  |  |  |  |  |
| Balance at January 1, 2025 | $229.1 | $245.9 | $66.6 | $34.2 | $179.9 | $— |
| January 1, 2025 balance at original discount rate | 263.2 | 271.2 | 65.4 | 36.8 | 214.6 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in cash flow assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 1.3 | (2.0) | 1.6 | (0.2) | (1.5) |  |
| Adjusted balance at January 1, 2025 | 264.5 | 269.2 | 67.0 | 36.6 | 213.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances<sup>(3)</sup> | 5.9 | 11.7 |  | 1.0 | 12.7 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals<sup>(4)</sup> | 4.1 | 5.6 | 1.8 | 0.7 | 3.5 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums collected<sup>(5)</sup> | (9.8) | (13.2) | (3.4) | (2.2) | (12.7) | (1.3) |
| June 30, 2025 balance at original discount rate | 264.7 | 273.3 | 65.4 | 36.1 | 216.6 |  |
| &nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (30.3) | (20.1) | 2.2 | (1.9) | (30.4) |  |
| Balance at June 30, 2025 | 234.4 | 253.2 | 67.6 | 34.2 | 186.2 |  |
| Present value of expected future policy benefits: | Present value of expected future policy benefits: |  |  |  |  |  |
| Balance at January 1, 2025 | 504.3 | 377.8 | 813.2 | 86.2 | 383.4 | 97.3 |
| January 1, 2025 balance at original discount rate | 617.4 | 433.2 | 782.8 | 114.3 | 482.8 | 107.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in cash flow assumptions |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 2.0 | (2.6) | 3.2 | (0.1) | (3.1) |  |
| Adjusted balance at January 1, 2025 | 619.4 | 430.6 | 786.0 | 114.2 | 479.7 | 107.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances | 5.9 | 11.8 |  | 1.0 | 12.7 | 1.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals | 10.4 | 8.6 | 23.0 | 2.2 | 7.0 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit payments<sup>(6)</sup> | (13.6) | (8.6) | (37.2) | (1.0) | (22.6) | (5.5) |
| June 30, 2025 balance at original discount rate | 622.1 | 442.4 | 771.8 | 116.4 | 476.8 | 105.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (108.1) | (48.2) | 38.9 | (27.6) | (92.1) | (8.1) |
| Balance at June 30, 2025 | 514.0 | 394.2 | 810.7 | 88.8 | 384.7 | 97.1 |
| Net liability for future policy benefits | 279.5 | 141.0 | 743.1 | 54.6 | 198.5 | 97.1 |
| Less: Reinsurance recoverable | (60.1) | (20.4) | (0.8) | (1.5) | (4.2) | (3.7) |
| Net liability for future policy benefits, after reinsurance recoverable | 219.4 | 120.6 | 742.3 | 53.1 | 194.3 | 93.4 |
| Impact of flooring on net liability for future policy benefits |  |  |  |  |  |  |
| Net liability for future policy benefits at June 30, 2025 | $219.4 | $120.6 | $742.3 | $53.1 | $194.3 | $93.4 |

---

<sup>(1)</sup> Experience Life contains both whole life and term elements.

<sup>(2)</sup> As of June 30, 2025, the net LFPB for Supplemental Health was $69.4 million for cancer, $18.6 million for accident, $22.1 million for disability and $84.2 million for other supplemental health policies.

<sup>(3)</sup> Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.

<sup>(4)</sup> Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

<sup>(5)</sup> Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.

<sup>(6)</sup> Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.

Horace Mann Educators Corporation 22 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The balances of and changes in LFPB as of and for the year ended December 31, 2024 were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | | | | | | |
| | **Whole Life** | **Term Life** | **Experience**<br>**Life**<sup>(1)</sup> | **Limited-Pay Whole Life** | **Supplemental**<br>**Health**<sup>(2)</sup> | **SPIA (life contingent)** |
| Present value of expected net premiums: | Present value of expected net premiums: |  |  |  |  |  |
| Balance at January 1, 2024 | $223.2 | $240.0 | $71.7 | $32.2 | $182.0 | $— |
| January 1, 2024 balance at original discount rate | 247.1 | 256.6 | 67.0 | 33.9 | 213.4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in cash flow assumptions | 13.8 | 4.6 | 1.5 | 2.2 | (5.2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 3.2 | (0.5) |  |  | 2.9 |  |
| Adjusted balance at January 1, 2024 | 264.1 | 260.7 | 68.5 | 36.1 | 211.1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances<sup>(3)</sup> | 12.6 | 25.2 |  | 4.0 | 20.9 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals<sup>(4)</sup> | 7.6 | 10.7 | 3.7 | 1.4 | 6.8 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums collected<sup>(5)</sup> | (21.1) | (25.4) | (6.8) | (4.7) | (24.2) | (2.8) |
| December 31, 2024 balance at original discount rate | 263.2 | 271.2 | 65.4 | 36.8 | 214.6 |  |
| &nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (34.1) | (25.3) | 1.2 | (2.6) | (34.7) |  |
| Balance at December 31, 2024 | 229.1 | 245.9 | 66.6 | 34.2 | 179.9 |  |
| Present value of expected future policy benefits: | Present value of expected future policy benefits: |  |  |  |  |  |
| Balance at January 1, 2024 | 522.0 | 370.1 | 883.0 | 89.6 | 427.6 | 104.2 |
| January 1, 2024 balance at original discount rate | 592.1 | 405.4 | 797.5 | 105.6 | 517.9 | 111.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in cash flow assumptions | 13.7 | 5.6 | 2.2 | 2.4 | (6.5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual variances from expected experience | 3.4 | (1.0) | 0.2 |  | 2.5 | 0.2 |
| Adjusted balance at January 1, 2024 | 609.2 | 410.0 | 799.9 | 108.0 | 513.9 | 111.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuances | 12.6 | 25.5 |  | 4.0 | 20.9 | 2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest accruals | 19.8 | 16.1 | 46.7 | 4.2 | 14.4 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefit payments<sup>(6)</sup> | (24.2) | (18.4) | (63.8) | (1.9) | (66.4) | (11.4) |
| December 31, 2024 balance at original discount rate | 617.4 | 433.2 | 782.8 | 114.3 | 482.8 | 107.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Effect of changes in discount rate assumptions | (113.1) | (55.4) | 30.4 | (28.1) | (99.4) | (10.0) |
| Balance at December 31, 2024 | 504.3 | 377.8 | 813.2 | 86.2 | 383.4 | 97.3 |
| Net liability for future policy benefits | 275.2 | 131.8 | 746.6 | 52.1 | 203.5 | 97.3 |
| Less: Reinsurance recoverable | (60.2) | (19.3) | (0.9) | (1.4) | (4.7) | (3.5) |
| Net liability for future policy benefits, after reinsurance recoverable | 215.0 | 112.5 | 745.7 | 50.7 | 198.8 | 93.8 |
| Impact of flooring on net liability for future policy benefits |  |  |  |  |  |  |
| Net liability for future policy benefits at December 31, 2024 | $215.0 | $112.5 | $745.7 | $50.7 | $198.8 | $93.8 |

---

<sup>(1)</sup> Experience Life contains both whole life and term elements.

<sup>(2)</sup> As of December 31, 2024, the net LFPB for Supplemental Health was $72.2 million for cancer, $18.8 million for accident, $21.4 million for disability and $86.4 million for other supplemental health policies.

<sup>(3)</sup> Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period.

<sup>(4)</sup> Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate.

<sup>(5)</sup> Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business.

<sup>(6)</sup> Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions.

Horace Mann Educators Corporation 23 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **December 31, 2024** |
| Whole life | $279.5 | $275.2 |
| Term life | 141.0 | 131.8 |
| Experience life | 743.1 | 746.6 |
| Limited-pay whole life | 54.6 | 52.1 |
| Supplemental health | 198.5 | 203.5 |
| SPIA (life contingent) | 97.1 | 97.3 |
| Limited-pay whole life DPL | 5.5 | 5.2 |
| SPIA (life contingent) DPL | 1.5 | 1.5 |
| Reconciling items<sup>(1)</sup> | 103.7 | 109.6 |
| &nbsp;&nbsp;&nbsp;Total | $1624.4 | $1622.8 |

---

<sup>(1)</sup> Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves.

The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Gross premiums or assessments** | **Gross premiums or assessments** | **Gross premiums or assessments** | **Gross premiums or assessments** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Whole life | $7.4 | $6.9 | $14.4 | $13.8 |
| Term life | 11.1 | 11.0 | 22.8 | 22.2 |
| Experience life | 7.3 | 7.7 | 14.7 | 15.4 |
| Limited-pay whole life | 1.6 | 1.6 | 3.4 | 3.4 |
| Supplemental health | 31.2 | 30.0 | 62.1 | 60.4 |
| SPIA (life contingent) | 0.7 | 0.5 | 1.3 | 1.7 |
| &nbsp;&nbsp;&nbsp;Total | $59.3 | $57.7 | $118.7 | $116.9 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Interest expense** | **Interest expense** | **Interest expense** | **Interest expense** |
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Whole life | $3.2 | $3 | $6.3 | $6 |
| Term life | 1.5 | 1.3 | 2.9 | 2.6 |
| Experience life | 10.5 | 10.8 | 21.1 | 21.6 |
| Limited-pay whole life | 0.7 | 0.7 | 1.5 | 1.4 |
| Supplemental health | 1.7 | 1.9 | 3.5 | 3.9 |
| SPIA (life contingent) | 1.0 | 1.1 | 2.1 | 2.2 |
| &nbsp;&nbsp;&nbsp;Total | $18.6 | $18.8 | $37.4 | $37.7 |

---

Horace Mann Educators Corporation 24 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **As of** <br>**June 30, 2025** | **As of** <br>**June 30, 2025** | **As of**<br>**December 31, 2024** | **As of**<br>**December 31, 2024** |
| | **Undiscounted** | **Discounted** | **Undiscounted** | **Discounted** |
| Whole life |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums | $526.4 | $353.1 | $524.0 | $350.5 |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 1283.2 | 622.1 | 1272.9 | 617.4 |
| Term life |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums | 720.8 | 467.7 | 712.1 | 464.2 |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 755.5 | 442.5 | 736.2 | 433.2 |
| Experience Life |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums | 477.5 | 268.6 | 497.8 | 279.3 |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 1602.8 | 771.8 | 1639.0 | 782.8 |
| Limited-pay whole life |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums | 72.7 | 54.1 | 73.6 | 54.7 |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 312.0 | 116.4 | 307.2 | 114.3 |
| Supplemental health |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums | 1606.3 | 1165.3 | 1595.3 | 1165.4 |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 686.2 | 476.8 | 684.6 | 482.8 |
| SPIA (life contingent) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future gross premiums |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Expected future benefits and expenses | 147.7 | 105.2 | 150.7 | 107.3 |

---

For the six months ended June 30, 2025 and for the year ended December 31, 2024, net premiums exceeded gross premiums for several cohorts in the Whole Life and Term Life product lines. This resulted in an immaterial change to current period benefit expense for both periods.

The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Supplemental Health**  | **SPIA (life contingent)** |
| Mortality / Morbidity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Actual experience | 0.9% | 0.1% - 0.4% | 1.9% | 0.2% | 37.6% | N.M. |
| &nbsp;&nbsp;&nbsp;Expected experience | 0.8% | 0.1% - 0.9% | 1.9% | 0.3% | 26.9% | N.M. |
| Lapses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Actual experience | 3.3% | 3.7% - 10.1% | 3.6% | 3.4% | 11.0% | N.M. |
| &nbsp;&nbsp;&nbsp;Expected experience | 3.8% | 5.1% - 9.6% | 3.0% | 4.0% | 14.0% | N.M. |
|  | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** | **June 30, 2024** |
|  | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Supplemental Health** | **SPIA (life contingent)** |
| Mortality / Morbidity |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Actual experience | 0.7% | 0.1% - 0.3% | 1.9% | 0.2% | 35.6% | N.M. |
| &nbsp;&nbsp;&nbsp;Expected experience | 0.7% | 0.1% - 0.8% | 1.7% | 0.3% | 26.3% | N.M. |
| Lapses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Actual experience | 2.9% | 3.7% - 28.6% | 3.0% | 3.5% | 9.8% | N.M. |
| &nbsp;&nbsp;&nbsp;Expected experience | 4.4% | 5.4% - 12.8% | 3.0% | 4.7% | 13.8% | N.M. |

---

Horace Mann Educators Corporation 25 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The following table provides the weighted-average durations of LFPB, in years:

---

| | | |
|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** |
| | **2025** | **2024** |
| Whole life | 19.4 | 17.8 |
| Term life | 15.8 | 16.6 |
| Experience life | 10.0 | 10.3 |
| Limited-pay whole life | 24.1 | 21.7 |
| Supplemental health | 11.6 | 11.0 |
| SPIA (life contingent) | 7.5 | 7.6 |

---

The following table provides ranges of the weighted-average interest rates for LFPB:

---

| | | |
|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** |
| | **2025** | **2024** |
| Whole life |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 1.7% - 4.8% | 1.7% - 4.9% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 4.9% - 5.7% | 4.8% - 5.6% |
| Term life |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 4.2% - 4.2% | 4.2% - 4.2% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 5.3% - 5.4% | 5.4% - 5.5% |
| Experience life |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 6.1% | 6.1% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 5.5% | 5.6% |
| Limited-pay whole life |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 4.0% | 4.0% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 5.8% | 5.7% |
| Supplemental health |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 1.7% - 2.8% | 1.7% - 2.7% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 5.5% - 5.7% | 5.6% - 5.7% |
| SPIA (life contingent) |  |  |
| &nbsp;&nbsp;&nbsp;Interest accretion rate | 1.7% - 4.1% | 1.7% - 4.1% |
| &nbsp;&nbsp;&nbsp;Current discount rate | 5.2% - 5.3% | 5.4% - 5.5% |

---

Horace Mann Educators Corporation 26 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

**Liability for Policyholders' Account Balances**

The Company recognizes a liability for policyholders' account balances. The following tables summarize balances of and changes in policyholders' account balances:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Indexed Universal Life** | **Experience Life** | **Fixed Account Annuities** | **Fixed Indexed Account Annuities** | **SPIA (non-life contingent)** |
| Balance at April 1, 2025 | $78.2 | $57.4 | $4495.9 | $399.7 | $28.3 |
| &nbsp;&nbsp;&nbsp;Premiums received<sup>(1)</sup> | $4.9 | $(0.2) | $46.6 | $3.4 | $0.8 |
| &nbsp;&nbsp;&nbsp;Surrenders and withdrawals<sup>(2)</sup> | (0.4) | (1.0) | (80.8) | (11.2) |  |
| &nbsp;&nbsp;&nbsp;Benefit payments<sup>(3)</sup> |  | (0.4) | (21.4) | (0.7) | (1.1) |
| &nbsp;&nbsp;&nbsp;Net transfers from (to) separate account | (0.1) |  | 8.2 | (0.4) |  |
| &nbsp;&nbsp;&nbsp;Interest credited<sup>(4)</sup> | 0.8 | 0.7 | 40.9 | 2.8 | 0.2 |
| &nbsp;&nbsp;&nbsp;Other | (1.1) |  | 5.7 | (5.0) | (0.3) |
| Balance at June 30, 2025 | $82.3 | $56.5 | $4495.1 | $388.6 | $27.9 |
| Weighted-average crediting rate | 4.1% | 5.0% | 3.7% | 2.9% | 2.9% |
| Net amount at risk<sup>(5)</sup> | $— | $— | $24.7 | $— | $— |
| Cash surrender value | $62.4 | $55.9 | $4448.7 | $382.7 | $27.6 |
| **($ in millions)** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Indexed Universal Life** | **Experience Life** | **Fixed Account Annuities** | **Fixed Indexed Account Annuities** | **SPIA (non-life contingent)** |
| Balance at April 1, 2024 | $61.0 | $60.1 | $4519.9 | $437.4 | $31.6 |
| &nbsp;&nbsp;&nbsp;Premiums received<sup>(1)</sup> | $4.9 | $(0.2) | $42.8 | $4.1 | $0.1 |
| &nbsp;&nbsp;&nbsp;Surrenders and withdrawals<sup>(2)</sup> | (0.3) | (0.8) | (86.4) | (13.5) | (0.3) |
| &nbsp;&nbsp;&nbsp;Benefit payments<sup>(3)</sup> |  | (0.4) | (16.3) | (0.8) | (1.3) |
| &nbsp;&nbsp;&nbsp;Net transfers from (to) separate account |  |  | 6.3 | (0.6) |  |
| &nbsp;&nbsp;&nbsp;Interest credited<sup>(4)</sup> | 0.8 | 0.8 | 41.3 | 3.2 | 0.3 |
| &nbsp;&nbsp;&nbsp;Other | (1.2) | (0.1) | 1.9 | (3.2) |  |
| Balance at June 30, 2024 | $65.2 | $59.4 | $4509.5 | $426.6 | $30.4 |
| Weighted-average crediting rate | 5.2% | 5.5% | 3.7% | 3.0% | 3.9% |
| Net amount at risk<sup>(5)</sup> | $— | $— | $30.9 | $— | $— |
| Cash surrender value | $47.1 | $58.8 | $4466.3 | $428.4 | $31.4 |

---

<sup>(1)</sup> Premiums received represents premiums collected from policyholder during the period of in force business.

<sup>(2)</sup> Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance.

<sup>(3)</sup> Benefit payments represent benefits due under contract that were paid to a policyholder during the periods.

<sup>(4)</sup> Interest credited represents interest earned and credited to policyholders' account balance during the periods.

<sup>(5)</sup> Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date.

Horace Mann Educators Corporation 27 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Indexed Universal Life** | **Experience Life** | **Fixed Account Annuities** | **Fixed Indexed Account Annuities** | **SPIA (non-life contingent)** |
| Balance at January 1, 2025 | $72.9 | $58.0 | $4508.4 | $409.5 | $28.6 |
| &nbsp;&nbsp;&nbsp;Premiums received<sup>(1)</sup> | $10.9 | $(0.4) | $90.0 | $7.6 | $1.4 |
| &nbsp;&nbsp;&nbsp;Surrenders and withdrawals<sup>(2)</sup> | (0.8) | (1.8) | (170.0) | (24.4) | (0.2) |
| &nbsp;&nbsp;&nbsp;Benefit payments<sup>(3)</sup> |  | (0.7) | (43.2) | (2.4) | (2.3) |
| &nbsp;&nbsp;&nbsp;Net transfers from (to) separate account | (0.2) |  | 20.2 | (0.6) |  |
| &nbsp;&nbsp;&nbsp;Interest credited<sup>(4)</sup> | 1.8 | 1.4 | 83.6 | 6.2 | 0.5 |
| &nbsp;&nbsp;&nbsp;Other | (2.3) |  | 6.1 | (7.3) | (0.1) |
| Balance at June 30, 2025 | $82.3 | $56.5 | $4495.1 | $388.6 | $27.9 |
| Weighted-average crediting rate | 4.8% | 5.0% | 3.8% | 3.2% | 3.7% |
| Net amount at risk<sup>(5)</sup> | $— | $— | $24.7 | $— | $— |
| Cash surrender value | $62.4 | $55.9 | $4448.7 | $382.7 | $27.6 |
| **($ in millions)** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Indexed Universal Life** | **Experience Life** | **Fixed Account Annuities** | **Fixed Indexed Account Annuities** | **SPIA (non-life contingent)** |
| Balance at January 1, 2024 | $57.8 | $61.2 | $4556.0 | $449.0 | $32.6 |
| &nbsp;&nbsp;&nbsp;Premiums received<sup>(1)</sup> | $8.8 | $(0.3) | $91.8 | $7.7 | $0.9 |
| &nbsp;&nbsp;&nbsp;Surrenders and withdrawals<sup>(2)</sup> | (0.8) | (2.1) | (198.6) | (26.8) | (0.9) |
| &nbsp;&nbsp;&nbsp;Benefit payments<sup>(3)</sup> |  | (0.9) | (36.9) | (1.6) | (2.7) |
| &nbsp;&nbsp;&nbsp;Net transfers from (to) separate account | (0.1) |  | 8.2 | (1.4) |  |
| &nbsp;&nbsp;&nbsp;Interest credited<sup>(4)</sup> | 1.6 | 1.5 | 83.0 | 5.9 | 0.5 |
| &nbsp;&nbsp;&nbsp;Other | (2.1) |  | 6.0 | (6.2) |  |
| Balance at June 30, 2024 | $65.2 | $59.4 | $4509.5 | $426.6 | $30.4 |
| Weighted-average crediting rate | 5.4% | 5.0% | 3.7% | 2.7% | 3.1% |
| Net amount at risk<sup>(5)</sup> | $— | $— | $30.9 | $— | $— |
| Cash surrender value | $47.1 | $58.8 | $4466.3 | $428.4 | $31.4 |

---

<sup>(1)</sup> Premiums received represents premiums collected from policyholder during the period of in force business.

<sup>(2)</sup> Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance.

<sup>(3)</sup> Benefit payments represent benefits due under contract that were paid to a policyholder during the periods.

<sup>(4)</sup> Interest credited represents interest earned and credited to policyholders' account balance during the periods.

<sup>(5)</sup> Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date.

Horace Mann Educators Corporation 28 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balances Sheets:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **December 31, 2024** |
| Indexed universal life | $82.3 | $72.9 |
| Experience Life | 56.5 | 58.0 |
| Fixed account annuities | 4495.1 | 4508.4 |
| Fixed indexed account annuities | 388.6 | 409.5 |
| SPIA (non-life contingent) | 27.9 | 28.6 |
| Reconciling items<sup>(1)</sup> | 26.0 | 22.9 |
| &nbsp;&nbsp;&nbsp;Total | $5076.4 | $5100.3 |

---

<sup>(1)</sup> Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs.

The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **At Guaranteed Minimum** | **1-50 Basis Points Above** | **51-150 Basis Points Above** | **Greater Than 150 Basis Points Above**  | **Total**<sup>(1)</sup> |
| **Guaranteed minimum crediting rates:** | | | | | |
| &nbsp;&nbsp;&nbsp;Less than 2% | $9.4 | $12.8 | $367.2 | $380.2 | $769.6 |
| &nbsp;&nbsp;&nbsp;Equal to 2% but less than 3% | 81.2 | 149.9 | 109.4 | 164.3 | 504.8 |
| &nbsp;&nbsp;&nbsp;Equal to 3% but less than 4% | 562.4 | 9.7 | 14.0 | 52.4 | 638.5 |
| &nbsp;&nbsp;&nbsp;Equal to 4% but less than 5% | 2575.8 |  |  |  | 2575.8 |
| &nbsp;&nbsp;&nbsp;5% or higher | 80.4 |  |  |  | 80.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3309.2 | $172.4 | $490.6 | $596.9 | $4569.1 |
| **($ in millions)** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **At Guaranteed Minimum** | **1-50 Basis Points Above** | **51-150 Basis Points Above** | **Greater Than 150 Basis Points Above** | **Total**<sup>(1)</sup> |
| **Guaranteed minimum crediting rates:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Less than 2% | $15.9 | $77.3 | $400.4 | $304.0 | $797.6 |
| &nbsp;&nbsp;&nbsp;Equal to 2% but less than 3% | 94.5 | 122.2 | 97.9 | 134.8 | 449.4 |
| &nbsp;&nbsp;&nbsp;Equal to 3% but less than 4% | 545.6 | 43.3 | 13.3 | 51.2 | 653.4 |
| &nbsp;&nbsp;&nbsp;Equal to 4% but less than 5% | 2600.0 |  |  |  | 2600.0 |
| &nbsp;&nbsp;&nbsp;5% or higher | 81.8 |  |  |  | 81.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $3337.8 | $242.8 | $511.6 | $490.0 | $4582.2 |

---

<sup>(1)</sup> Excludes products not containing a fixed guaranteed minimum crediting rate.

**Separate Account Liabilities**

Separate account assets and liabilities consist of investment accounts established and maintained by the Company for certain variable contracts. Some of these variable contracts include minimum guarantees such as GMDBs that guarantee a minimum payment to the policyholder in the event of death.

The assets that support variable contracts are measured at fair value and are reported as separate account assets on the Consolidated Balance Sheets. An equivalent amount is reported as separate account liabilities. MRB assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. MRBs are discussed further in the market risk benefits section of this Note to the Consolidated Financial Statements. Policy charges assessed against the policyholders for mortality,

Horace Mann Educators Corporation 29 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

administration and other services are included in the life premiums and contract charges line item on the Consolidated Statements of Operations and Comprehensive Income (Loss).

The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets<sup>(1)</sup>:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **Retirement Services** | **Retirement Services** |
| | **Variable Account Annuities** | **Variable Account Annuities** |
| | **June 30, 2025** | **December 31, 2024** |
| Balance, beginning of year | $3708.8 | $3294.1 |
| &nbsp;&nbsp;&nbsp;Deposits | 137.4 | 266.2 |
| &nbsp;&nbsp;&nbsp;Withdrawals | (146.4) | (290.3) |
| &nbsp;&nbsp;&nbsp;Net transfers | (19.6) | (21.1) |
| &nbsp;&nbsp;&nbsp;Fees and charges | (27.0) | (53.3) |
| &nbsp;&nbsp;&nbsp;Market appreciation (depreciation) | 210.1 | 513.2 |
| &nbsp;&nbsp;&nbsp;Other |  |  |
| Balance, end of period | $3863.3 | $3708.8 |

---

<sup>(1)</sup> The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access.

**Market Risk Benefits**

The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three and six months ended June 30, 2025 and 2024, respectively:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | **2025** | **2024** | **2025** | **2024** |
| Balance, beginning of period | $(5.2) | $(6.3) | $(6.8) | $(3.9) |
| Balance, beginning of period, before effects of changes in the instrument-specific credit risk | (6.0) | (6.8) | (7.4) | (4.5) |
| &nbsp;&nbsp;&nbsp;Changes in market risk benefits<sup>(1)</sup> | (1.0) |  | 0.4 | (2.3) |
| Balance, end of period<sup>(2)</sup> | $(7.0) | $(6.8) | $(7.0) | $(6.8) |
| &nbsp;&nbsp;&nbsp;Effect of changes in the instrument-specific credit risk | 0.3 | 0.6 | 0.3 | 0.6 |
| Balance, end of period | $(6.7) | $(6.2) | $(6.7) | $(6.2) |
| Net amount at risk<sup>(3)</sup> | $13.8 | $16.5 | $13.8 | $16.5 |
| Weighted-average attained age of contract holders | 62 | 63 | 62 | 62 |

---

<sup>(1)</sup> Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions.

<sup>(2)</sup> Balance, end of period, before the effect of changes in the instrument-specific credit risk.

<sup>(3)</sup> Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date.

The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **(Asset)** | **Liability** | **Net** | **(Asset)** | **Liability** | **Net** |
| Deferred variable annuities | $(8.7) | $2.0 | $(6.7) | $(8.8) | $2.0 | $(6.8) |

---

Horace Mann Educators Corporation 30 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

**Deferred Acquisition Costs** 

The following tables roll-forward DAC for the periods indicated:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Indexed Universal Life** | **Supplemental Health** | **Total Annuities** |
| Balance, beginning of period | $24.1 | $34.5 | $5.4 | $8 | $19.8 | $11.2 | $210.4 |
| Capitalizations | 0.8 | 1.0 | 0.1 | 0.2 | 0.8 | 1.1 | 3.2 |
| Amortization expense | (0.3) | (0.7) | (0.1) | (0.1) | (0.3) | (0.2) | (3.9) |
| Experience adjustment |  |  |  |  |  |  | (0.3) |
| Balance, end of period | $24.6 | $34.8 | $5.4 | $8.1 | $20.3 | $12.1 | $209.4 |
| **($ in millions)** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Indexed Universal Life** | **Supplemental Health** | **Total Annuities** |
| Balance, beginning of period | $22.6 | $32.9 | $5.7 | $7.5 | $17.1 | $8.7 | $212.9 |
| Capitalizations | 0.7 | 1.4 |  | 0.3 | 0.9 | 0.8 | 4.1 |
| Amortization expense | (0.3) | (0.8) | (0.1) | (0.1) | (0.2) | (0.2) | (4.2) |
| Experience adjustment |  |  |  |  |  |  | (0.4) |
| Balance, end of period | $23.0 | $33.5 | $5.6 | $7.7 | $17.8 | $9.3 | $212.4 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Indexed Universal Life** | **Supplemental Health** | **Total Annuities** |
| Balance, beginning of period | $23.8 | $34.2 | $5.5 | $8.0 | $19.2 | $10.6 | $211.4 |
| Capitalizations | 1.4 | 2.2 | 0.1 | 0.3 | 1.6 | 2.1 | 6.8 |
| Amortization expense | (0.6) | (1.6) | (0.2) | (0.2) | (0.5) | (0.5) | (7.9) |
| Experience adjustment |  |  |  |  |  | (0.1) | (0.9) |
| Balance, end of period | $24.6 | $34.8 | $5.4 | $8.1 | $20.3 | $12.1 | $209.4 |
| **($ in millions)** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Whole Life** | **Term Life** | **Experience Life** | **Limited-Pay Whole Life** | **Indexed Universal Life** | **Supplemental Health** | **Total Annuities** |
| Balance, beginning of period | $22.3 | $32.6 | $5.7 | $7.4 | $16.8 | $8.2 | $214.0 |
| Capitalizations | 1.4 | 2.6 | 0.1 | 0.5 | 1.6 | 1.6 | 8.0 |
| Amortization expense | (0.6) | (1.7) | (0.2) | (0.2) | (0.5) | (0.4) | (7.9) |
| Experience adjustment | (0.1) |  |  |  | (0.1) | (0.1) | (1.7) |
| Balance, end of period | $23.0 | $33.5 | $5.6 | $7.7 | $17.8 | $9.3 | $212.4 |

---

Horace Mann Educators Corporation 31 Second Quarter 2025 Form 10-Q

------

**NOTE 5 - Long-Duration Insurance Contracts (continued)**

The following table presents a reconciliation of DAC to the Consolidated Balance Sheets:

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **December 31, 2024** |
| Whole life | $24.6 | $23.8 |
| Term life | 34.8 | 34.2 |
| Experience life | 5.4 | 5.5 |
| Limited pay whole life | 8.1 | 8.0 |
| Indexed universal life | 20.3 | 19.2 |
| Supplemental health | 12.1 | 10.6 |
| Total annuities | 209.4 | 211.4 |
| Reconciling item<sup>(1)</sup> | 36.7 | 34.5 |
| &nbsp;&nbsp;&nbsp;Total | $351.4 | $347.2 |

---

<sup>(1)</sup> Reconciling item relates to DAC associated with the Property & Casualty reporting segment.

The assumptions used to amortize DAC were consistent with the assumptions used to estimate LFPB for traditional and limited-payment contracts. The underlying assumptions for DAC and LFPB were updated at the same time.

In the second quarter of 2025 and 2024, the Company conducted a review of all significant assumptions and did not make any changes to future assumptions because actual experience for mortality and lapses was materially consistent with underlying assumptions.

Horace Mann Educators Corporation 32 Second Quarter 2025 Form 10-Q

------

**NOTE 6 - Reinsurance**

The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, claims incurred but not yet reported and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on net premiums written and contract deposits; net premiums and contract charges earned; and benefits, claims and settlement expenses were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Direct<br>Amount** | **Ceded to**<br>**Other**<br>**Companies** | **Assumed<br>from Other<br>Companies** | **Net<br>Amount** |
| Three months ended June 30, 2025<sup>(1)</sup> |  |  |  |  |
| &nbsp;&nbsp;Net premiums written and contract deposits<sup>(2)</sup> | $427.9 | $15.4 | $6.3 | $418.8 |
| &nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | 311.9 | 15.3 | 6.0 | 302.6 |
| &nbsp;&nbsp;&nbsp;Benefits, claims and settlement expenses | 192.1 | 11.0 | 2.4 | 183.5 |
| Three months ended June 30, 2024 |  |  |  |  |
| &nbsp;&nbsp;Net premiums written and contract deposits<sup>(2)</sup> | $413.8 | $18.1 | $7.8 | $403.5 |
| &nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | 293.1 | 19.8 | 7.6 | 280.9 |
| &nbsp;&nbsp;&nbsp;Benefits, claims and settlement expenses | 213.0 | 10.2 | 4.5 | 207.3 |
| Six months ended June 30, 2025<sup>(1)</sup> |  |  |  |  |
| &nbsp;&nbsp;Net premiums written and contract deposits<sup>(2)</sup> | $830.3 | $30.5 | $12.2 | $812.0 |
| &nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | 618.6 | 29.7 | 12.0 | 600.9 |
| &nbsp;&nbsp;&nbsp;Benefits, claims and settlement expenses | 381.7 | 22.0 | 7.0 | 366.7 |
| Six months ended June 30, 2024 |  |  |  |  |
| &nbsp;&nbsp;Net premiums written and contract deposits<sup>(2)</sup> | $800.2 | $36.2 | $15.1 | $779.1 |
| &nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | 581.1 | 39.6 | 14.6 | 556.1 |
| &nbsp;&nbsp;&nbsp;Benefits, claims and settlement expenses | 399.9 | 24.8 | 8.5 | 383.6 |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Direct amount is net of the annuity reinsurance transaction accounted for using the deposit method.

<sup>(2)</sup> &nbsp;&nbsp;&nbsp;&nbsp;This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as Exhibit 99.1 in the Company's reports filed with the SEC.

Horace Mann Educators Corporation 33 Second Quarter 2025 Form 10-Q

------

**Note 7 - Segment Information**

The Company conducts and manages its business through four reporting segments. The three reporting segments representing the major lines of business are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those reporting segments, but classifies those items in the fourth reporting segment, Corporate & Other. Corporate & Other includes corporate debt service, net investment gains (losses) and certain public company expenses, as well as corporate debt retirement costs, when applicable. In addition to these transactions, Corporate & Other also includes legacy commercial claims.

The accounting policies of the reporting segments are the same as those described in Note 1-Basis of Presentation and Significant Accounting Policies. Expense allocations are based on certain assumptions and estimates primarily related to direct cost, revenue and activity; methodologies are applied consistently. Stated segment operating results would change if different methods were applied.

The Company's Chief Operating Officer is the chief operating decision maker (CODM), responsible for reviewing financial performance and making decisions regarding the allocation of resources for the reporting segments. The Company measures and analyzes segment performance based on core earnings which differs from total income as presented in our consolidated statements of operations due to excluding the after-tax impact of net investment gains (losses), discontinued operations, the after-tax impact of goodwill and intangible asset impairments, other non-recurring or infrequent items and the cumulative effect of changes in accounting principles when applicable, and for the period ended June 30, 2025, the impacts of the immaterial correction of the prior period error discussed in Note 1. We believe core earnings is a better performance measure and indicator of the profitability and underlying trends in our business. The CODM considers actual-to-budget variances in core earnings on a monthly basis when making decisions about allocating capital and personnel to segments and evaluating product pricing.

Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2025, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| **($ in millions)** | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| Net premiums and contract charges earned | $197.3 | $39.6 | $65.7 | $— | $302.6 |
| Net investment income<sup>(1)</sup> | 14.9 | 97.2 | 10.6 | (1.6) | 121.1 |
| Other segment income  | 0.7 | 4.9 | (1.9) | 0.5 | 4.2 |
| &nbsp;&nbsp;Total segment revenues  | $212.9 | $141.7 | $74.4 | $(1.1) | $427.9 |
| Benefits and claims expenses <br>&nbsp;&nbsp;&nbsp;&nbsp;(excluding catastrophe losses) | $89.6 | $25.2 | $22.9 | $— | $137.7 |
| Catastrophe losses | 29.7 |  |  |  | 29.7 |
| Loss adjustment expenses  | 17.1 |  |  |  | 17.1 |
| Interest credited  |  | 51.5 | 1.2 |  | 52.7 |
| Operating & admin expenses  | 33.4 | 24.0 | 21.1 | 3.7 | 82.2 |
| Commissions expense  | 16.5 | 9.8 | 11.2 |  | 37.5 |
| Taxes, licenses and fees  | 6.1 | 1.4 | 1.7 | 0.1 | 9.3 |
| Deferred policy acquisition costs  | (24.7) | (6.1) | (1.2) |  | (32.0) |
| Deferred policy acquisition <br>&nbsp;&nbsp;&nbsp;&nbsp;cost amortization | 23.9 | 5.7 | 0.4 |  | 29.9 |
| Interest expense  |  |  |  | 8.6 | 8.6 |
| &nbsp;&nbsp;Total segment expenses  | $191.6 | $111.5 | $57.3 | $12.4 | $372.8 |
| Pretax profit (loss)  | $21.3 | $30.2 | $17.1 | $(13.5) | $55.1 |
| Income tax expense | 4.8 | 5.6 | 3.7 | (3.2) | 10.9 |
| Segment profit (loss) (Core earnings)  | 16.5 | 24.6 | 13.4 | (10.3) | 44.2 |
| Net investment losses (after-tax) |  |  |  | 4.7 | 4.7 |
| Non-core income adjustments (after-tax)<sup>(1)</sup> |  | 4.6 | 5.5 |  | 10.1 |
| Net income  | $16.5 | $20.0 | $7.9 | $(15.0) | $29.4 |

---

\*-Corporate & Other is net of intersegment eliminations.

Horace Mann Educators Corporation 34 Second Quarter 2025 Form 10-Q

------

**NOTE 7 - Segment Information (continued)**

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2025, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| **($ in millions)** | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| Net premiums and contract charges earned | $390 | $78.1 | $132.8 | $— | $600.9 |
| Net investment income<sup>(1)</sup> | 26.6 | 186.2 | 20.0 | 4.1 | 236.9 |
| Other segment income  | 2.0 | 9.7 | (3.0) | 1.0 | 9.7 |
| &nbsp;&nbsp;Total segment revenues  | $418.6 | $274 | $149.8 | $5.1 | $847.5 |
| Benefits and claims expenses <br>&nbsp;&nbsp;&nbsp;&nbsp;(excluding catastrophe losses) | $175.3 | $61.8 | $49.8 | $— | $286.9 |
| Catastrophe losses | 46.1 |  |  |  | 46.1 |
| Loss adjustment expenses  | 33.4 |  |  |  | 33.4 |
| Interest credited  |  | 103.1 | 2.4 |  | 105.5 |
| Operating & admin expenses  | 66.8 | 47.9 | 38.5 | 6.0 | 159.2 |
| Commissions expense  | 33.4 | 19.6 | 22.5 |  | 75.5 |
| Taxes, licenses and fees  | 11.0 | 2.3 | 3.1 | 0.3 | 16.7 |
| Deferred policy acquisition costs  | (49.0) | (12.2) | (2.4) |  | (63.6) |
| Deferred policy acquisition <br>&nbsp;&nbsp;&nbsp;&nbsp;cost amortization | 46.9 | 11.7 | 0.9 |  | 59.5 |
| Interest expense  |  |  |  | 17.5 | 17.5 |
| &nbsp;&nbsp;Total segment expenses  | $363.9 | $234.1 | $114.8 | $23.8 | $736.6 |
| Pretax profit (loss)  | $54.7 | $39.9 | $35 | $(18.7) | $110.9 |
| Income tax expense | 11.4 | 7.3 | 7.6 | (4.4) | 21.9 |
| Segment profit (loss) (Core earnings)  | 43.3 | 32.5 | 27.4 | (14.3) | 89.0 |
| Net investment losses (after-tax) |  |  |  | 7.3 | 7.3 |
| Non-core income adjustments (after-tax)<sup>(1)</sup> |  | 5.7 | 8.3 |  | 14.0 |
| Net income  | $43.3 | $26.8 | $19.1 | $(21.6) | $67.6 |

---

\*-Corporate & Other is net of intersegment eliminations.

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Horace Mann Educators Corporation 35 Second Quarter 2025 Form 10-Q

------

**NOTE 7 - Segment Information (continued)**

Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2024, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| **($ in millions)** | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| Net premiums and contract charges earned | $179.2 | $38.0 | $63.7 | $— | $280.9 |
| Net investment income<sup>(1)</sup> | 9.5 | 88.9 | 10.5 | (0.5) | 108.4 |
| Other segment income  | 0.6 | 4.6 | (1.2) | 0.6 | 4.6 |
| &nbsp;&nbsp;Total segment revenues  | $189.3 | $131.5 | $73.0 | $0.1 | $393.9 |
| Benefits and claims expenses <br>&nbsp;&nbsp;&nbsp;&nbsp;(excluding catastrophe losses) | $93.8 | $31.0 | $23.5 | $— | $148.3 |
| Catastrophe losses | 40.9 |  |  |  | 40.9 |
| Loss adjustment expenses  | 18.1 |  |  |  | 18.1 |
| Interest credited  |  | 52.6 | 1.2 |  | 53.8 |
| Operating & admin expenses  | 28.6 | 23.0 | 16.4 | 3.1 | 71.1 |
| Commissions expense  | 15.7 | 10.3 | 9.5 |  | 35.5 |
| Taxes, licenses and fees  | 4.9 | 0.9 | 1.5 | 0.3 | 7.6 |
| Deferred policy acquisition costs  | (22.7) | (7.5) | (1.1) |  | (31.3) |
| Deferred policy acquisition <br>&nbsp;&nbsp;&nbsp;&nbsp;cost amortization | 20.5 | 6.1 | 0.4 |  | 27.0 |
| Interest expense  |  |  |  | 8.7 | 8.7 |
| &nbsp;&nbsp;Total segment expenses  | $199.8 | $116.4 | $51.4 | $12.1 | $379.7 |
| Pretax profit (loss)  | $(10.5) | $15.0 | $21.6 | $(11.9) | $14.2 |
| Income tax expense | (1.9) | 2.7 | 4.6 | (2.5) | 2.9 |
| Segment profit (loss) (Core earnings)  | (8.6) | 12.3 | 17.0 | (9.4) | 11.3 |
| Net investment losses (after-tax) |  |  |  | (4.6) | (4.6) |
| Change in MRB (after-tax) |  |  |  |  |  |
| Intangible asset amortization (after-tax) |  |  | (2.9) |  | (2.9) |
| Net income  | $(8.6) | $12.3 | $14.1 | $(14.0) | $3.8 |

---

\*-Corporate & Other is net of intersegment eliminations.

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Horace Mann Educators Corporation 36 Second Quarter 2025 Form 10-Q

------

**NOTE 7 - Segment Information (continued)**

Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2024, is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| **($ in millions)** | **Property & Casualty**  | **Life & Retirement** | **Supplemental & Group Benefits**  | **Corporate & Other\*** | **Totals** |
| Net premiums and contract charges earned | $352.4 | $75.8 | $127.9 | $— | $556.1 |
| Net investment income<sup>(1)</sup> | 21.8 | 174.7 | 18.3 | (1.0) | 213.8 |
| Other segment income  | 1.3 | 9.4 | (4.2) | 1.3 | 7.8 |
| &nbsp;&nbsp;Total segment revenues  | $375.5 | $259.9 | $142 | $0.3 | $777.7 |
| Benefits and claims expenses <br>&nbsp;&nbsp;&nbsp;&nbsp;(excluding catastrophe losses) | $184.9 | $63.2 | $45.3 | $— | $293.4 |
| Catastrophe losses | 57.1 |  |  |  | 57.1 |
| Loss adjustment expenses  | 35.5 |  |  |  | 35.5 |
| Interest credited  |  | 104.4 | 2.3 |  | 106.7 |
| Operating & admin expenses  | 58.9 | 44.9 | 34.4 | 5.1 | 143.3 |
| Commissions expense  | 29.6 | 19.8 | 18.9 |  | 68.3 |
| Taxes, licenses and fees  | 9.6 | 1.9 | 3.0 | 0.5 | 15.0 |
| Deferred policy acquisition costs  | (43.0) | (14.2) | (2.0) |  | (59.2) |
| Deferred policy acquisition <br>&nbsp;&nbsp;&nbsp;&nbsp;cost amortization | 40.3 | 12.7 | 1.0 |  | 54.0 |
| Interest expense  |  |  |  | 17.4 | 17.4 |
| &nbsp;&nbsp;Total segment expenses  | $372.9 | $232.7 | $102.9 | $23 | $731.5 |
| Pretax profit (loss) | $2.6 | $27.1 | $39.1 | $(22.6) | $46.2 |
| Income tax expense | 0.6 | 4.9 | 8.3 | (4.7) | 9.1 |
| Segment profit (loss) (Core earnings)  | 2.0 | 22.2 | 30.8 | (17.9) | 37.1 |
| Net investment losses (after-tax) |  |  |  | (2.9) | (2.9) |
| Change in MRB (after-tax) |  | 1.8 |  |  | 1.8 |
| Intangible asset amortization (after-tax)  |  |  | (5.7) |  | (5.7) |
| Net income  | $2.0 | $24.0 | $25.1 | $(20.8) | $30.3 |

---

\*-Corporate & Other is net of intersegment eliminations.

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **December 31, 2024** |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;Property & Casualty | $1335.2 | $1272.3 |
| &nbsp;&nbsp;&nbsp;Life & Retirement | 11865.7 | 11670.7 |
| &nbsp;&nbsp;&nbsp;Supplemental & Group Benefits | 1370.2 | 1377.6 |
| &nbsp;&nbsp;&nbsp;Corporate & Other | 193.5 | 191.0 |
| &nbsp;&nbsp;&nbsp;Intersegment eliminations | (36.3) | (23.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $14728.3 | $14487.8 |

---

Horace Mann Educators Corporation 37 Second Quarter 2025 Form 10-Q

------

**NOTE 8 - Accumulated Other Comprehensive Income (Loss)**

AOCI represents the accumulated change in shareholders' equity from transactions and other events and circumstances from non-shareholder sources. For the Company, AOCI includes the after tax change in net unrealized investment gains (losses) on fixed maturity securities, the after tax change in net reserve remeasurements attributable to discount rates and the after tax change in net funded status of benefit plans for the periods as shown in the Consolidated Statements of Changes in Shareholders' Equity. The following table reconciles these components.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Net Unrealized Investment**<br> **Gains (Losses)**<br> **on Fixed Maturity Securities**<sup>(1)</sup> | **Net Reserve Remeasurements Attributable to Discount Rates**<sup>(1)</sup> | **Net Funded Status of**<br>**Benefit Plans**<sup>(1)</sup> | **Total**<sup>(1)</sup> |
| Beginning balance, April 1, 2025 | $(314.5) | $99.1 | $(7.0) | $(222.4) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 1.4 | 0.7 |  | 2.1 |
| &nbsp;&nbsp;Amounts reclassified from AOCI<sup>(2)</sup> | 3.2 |  |  | 3.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | 4.6 | 0.7 |  | 5.3 |
| Ending balance, June 30, 2025 | $(309.9) | $99.8 | $(7.0) | $(217.1) |
| Beginning balance, April 1, 2024 | $(348.0) | $63.3 | $(7.6) | $(292.3) |
| &nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (24.1) | 32.0 |  | 7.9 |
| &nbsp;&nbsp;Amounts reclassified from AOCI<sup>(3)</sup> | 1.7 |  |  | 1.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | (22.4) | 32.0 |  | 9.6 |
| Ending balance, June 30, 2024 | $(370.4) | $95.3 | $(7.6) | $(282.7) |
| Beginning balance, January 1, 2025 | $(357.4) | $110.9 | $(7.0) | $(253.5) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | 44.4 | (11.1) |  | 33.3 |
| &nbsp;&nbsp;Amounts reclassified from AOCI<sup>(2)</sup> | 3.1 |  |  | 3.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | 47.5 | (11.1) |  | 36.4 |
| Ending balance, June 30, 2025 | $(309.9) | $99.8 | $(7.0) | $(217.1) |
| Beginning balance, January 1, 2024 | $(328.3) | $21.9 | $(7.6) | $(314.0) |
| &nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before reclassifications | (44.6) | 73.4 |  | 28.8 |
| &nbsp;&nbsp;Amounts reclassified from AOCI<sup>(3)</sup> | 2.5 |  |  | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net current period other comprehensive income (loss) | (42.1) | 73.4 |  | 31.3 |
| Ending balance, June 30, 2024 | $(370.4) | $95.3 | $(7.6) | $(282.7) |

---

<sup>(1)</sup> All amounts are net of tax.

<sup>(2)</sup> The pretax amounts reclassified from AOCI, $(4.1) million and $(3.9) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.9) million and $(0.8) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2025, respectively.

<sup>(3)</sup> The pretax amounts reclassified from AOCI, $(2.2) million and $(3.2) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.5) million and $(0.7) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2024, respectively.

Comparative information for elements that are not required to be reclassified in their entirety to net income (loss) in the same reporting period is disclosed in Note 2.

Horace Mann Educators Corporation 38 Second Quarter 2025 Form 10-Q

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**NOTE 9 - Supplemental Consolidated Cash and Cash Flow Information**

---

| | | |
|:---|:---|:---|
| **($ in millions)** | | |
| | **June 30, 2025** | **December 31, 2024** |
| Cash | $38.7 | $33.1 |
| Restricted cash | 2.2 | 5.0 |
| &nbsp;&nbsp;&nbsp;Total cash and restricted cash reported in the Consolidated Balance Sheets | $40.9 | $38.1 |

---

---

| | | |
|:---|:---|:---|
| **($ in millions)** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest  | $16.9 | $16.8 |
| &nbsp;&nbsp;&nbsp;Income taxes | 21.5 | 13.3 |

---

Non-cash activities were not material for the three and six months ended June 30, 2025 and 2024, respectively.

**NOTE 10 - Contingencies and Commitments**

**Lawsuits and Legal Proceedings**

Companies in the insurance industry have been subject to substantial litigation resulting from claims, disputes and other matters. For instance, they have faced expensive claims, including class action lawsuits, alleging, among other things, improper sales practices and improper claims settlement procedures. Negotiated settlements of certain such actions have had a material adverse effect on many insurance companies. At the time of issuance of this Interim Report on Form 10-Q, except as noted below, the Company does not have pending litigation from which there is a reasonable possibility of material loss.

In 2023, the Horace Mann Insurance Company (HMIC) was named as a defendant in one lawsuit and received various demands for reimbursement and notices of claims related to legacy, long-tail commercial lines claims, including asbestos, environmental, and sexual molestation claims. It is alleged that HMIC reinsured certain commercial lines policies as a member of various insurance pooling arrangements in the late 1960s and early 1970s. The related policies were written prior to the 1975 acquisition of Horace Mann by INA discussed in Part I - Item 1 of the Annual Report on Form 10-K. HMEC's available records indicate that on January 1, 1975, HMIC entered a quota share retrocession treaty with INA. It is the Company's understanding that claims arising under these legacy policies were handled by various third parties pursuant to the terms of that treaty and its subsequent amendments entered into on behalf of HMIC. Ultimately, after amendments to the treaty and various corporate transactions involving the reinsurer, these obligations were assumed by companies that were affiliated with R&Q Reinsurance Company (R&Q).

The matters noted above arose following the March 23, 2023, Order of Liquidation in Pennsylvania of R&Q. HMIC is defending itself against the pending litigation and is in the process of investigating and evaluating the other demands and claims notices under a complete reservation of rights. In addition, in order to preserve its rights, HMIC submitted a proof of claim in the pending R&Q liquidation proceeding.

In the fourth quarter of 2024, the Company recorded $15.7 million, after-tax of costs related to these non-core legacy commercial liability policies in the Corporate & Other Segment. As noted above, these policies were issued as early as the 1960s and prior to the current ownership structure of the Company.

**Investment Commitments**

The Company has outstanding commitments to fund investments primarily in limited partnership interests. Such unfunded commitments were $423.0 million and $449.9 million as of June 30, 2025 and December 31, 2024, respectively.

Horace Mann Educators Corporation 39 Second Quarter 2025 Form 10-Q

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ITEM 2. I Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

---

| | |
|:---|:---|
| | **<u>Page</u>** |
| <u>[Introduction](#ib384d55e0e5a4824a6adf57b04321d8e_70)</u> | <u>[40](#ib384d55e0e5a4824a6adf57b04321d8e_70)</u> |
| <u>[Corporate Strategy](#ib384d55e0e5a4824a6adf57b04321d8e_73)</u> | <u>[40](#ib384d55e0e5a4824a6adf57b04321d8e_73)</u> |
| <u>[Consolidated Financial Highlights](#ib384d55e0e5a4824a6adf57b04321d8e_76)</u> | <u>[41](#ib384d55e0e5a4824a6adf57b04321d8e_76)</u> |
| <u>[Consolidated Results of Operations](#ib384d55e0e5a4824a6adf57b04321d8e_79)</u> | <u>[42](#ib384d55e0e5a4824a6adf57b04321d8e_79)</u> |
| <u>[Outlook for 2025](#ib384d55e0e5a4824a6adf57b04321d8e_82)</u> | <u>[44](#ib384d55e0e5a4824a6adf57b04321d8e_82)</u> |
| <u>[Application of Critical Accounting Estimates](#ib384d55e0e5a4824a6adf57b04321d8e_85)</u> | <u>[45](#ib384d55e0e5a4824a6adf57b04321d8e_85)</u> |
| <u>[Results of Operations by Segment](#ib384d55e0e5a4824a6adf57b04321d8e_88)</u> | <u>[46](#ib384d55e0e5a4824a6adf57b04321d8e_88)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Property & Casualty](#ib384d55e0e5a4824a6adf57b04321d8e_91)</u> | <u>[46](#ib384d55e0e5a4824a6adf57b04321d8e_91)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Life & Retirement](#ib384d55e0e5a4824a6adf57b04321d8e_94)</u> | <u>[49](#ib384d55e0e5a4824a6adf57b04321d8e_94)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Supplemental & Group Benefits](#ib384d55e0e5a4824a6adf57b04321d8e_97)</u> | <u>[51](#ib384d55e0e5a4824a6adf57b04321d8e_97)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;<u>[Corporate & Other](#ib384d55e0e5a4824a6adf57b04321d8e_100)</u> | <u>[53](#ib384d55e0e5a4824a6adf57b04321d8e_100)</u> |
| <u>[Investment Results](#ib384d55e0e5a4824a6adf57b04321d8e_103)</u> | <u>[53](#ib384d55e0e5a4824a6adf57b04321d8e_103)</u> |
| <u>[Liquidity and Capital Resources](#ib384d55e0e5a4824a6adf57b04321d8e_106)</u> | <u>[56](#ib384d55e0e5a4824a6adf57b04321d8e_106)</u> |

---

**Introduction**

The purpose of this MD&A is to provide an understanding of our consolidated results of operations and financial condition. This MD&A should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in Part I - Item 1 of this Quarterly Report on Form 10-Q.

Measures within this MD&A that are not based on accounting principles generally accepted in the United States of America (non-GAAP) are marked with an asterisk (\*) the first time they are presented within this Part I - Item 2. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 to this Quarterly Report on Form 10-Q and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in the Appendix to the Company's Second Quarter 2025 Investor Supplement.

Increases or decreases in this MD&A that are not meaningful are marked "N.M.".

Statements made in this Quarterly Report on Form 10-Q 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 known and unknown risks, uncertainties and other factors. Horace Mann Educators Corporation (referred to in this Quarterly Report on Form 10-Q as "we", "our", "us", the "Company", "Horace Mann" or "HMEC") is an insurance holding company. We are not under any obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is important to note that our actual results could differ materially from those projected in forward-looking statements due to a number of risks and uncertainties inherent in our business. Also, see Part I - Items 1 and 1A in our Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding risks and uncertainties.

**Corporate Strategy**

Our vision is to be the company of choice to provide insurance and financial solutions for all educators and others who serve their communities, whether they engage with Horace Mann directly or through their district/employer. We believe the unique value of Horace Mann is providing solutions tailored for educators at each stage of their lives, empowering them to achieve lifelong financial success. Our motivation stems from our gratitude for educators: They are looking after our children's futures, and we believe they deserve someone to

Horace Mann Educators Corporation 40 Second Quarter 2025 Form 10-Q

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look after theirs. Our commitment to having a positive impact on our customers' lives extends to all our corporate stakeholders, including employees, agents, investors and the communities where we live and work.

We conduct and manage our business in four reporting segments. The three reporting segments representing our major lines of business, are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). We do not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those segments, but classify those items in the fourth reporting segment, Corporate & Other. In addition to ongoing transactions such as corporate debt service, net investment gains (losses) and certain public company expenses, such items also have included corporate debt retirement costs, when applicable. See Part I - Item 1, Note 7 of the Consolidated Financial Statements in this Quarterly Report on Form 10-Q for more information.

**Consolidated Financial Highlights**

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| Total revenues | $411.7 | $388.1 | 6.1 | % | $828.1 | $774.1 | 7.0 | % |
| Net income | 29.4 | 3.8 | 673.7 | % | 67.6 | 30.3 | 123.1 | % |
| Net Investment gains (losses), after tax  | (4.7) | (4.6) | -2.2 | % | (7.3) | (2.9) | 151.7 | % |
| Per diluted share: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | 0.71 | 0.09 | 688.9 | % | 1.63 | 0.73 | 123.3 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses), after tax | (0.11) | (0.11) |  | % | (0.17) | (0.07) | 142.9 | % |
| Book value per share |  |  |  |  | $33.31 | $29.60 | 12.5 | % |
| Net income return on equity - last twelve months | 10.8% | 7.1% | 3.7 | pts | 10.8% | 7.1% | 3.7 | pts |
| Net income return on equity - annualized | 8.7% | 1.3% | 7.4 | pts | 10.2% | 5.1% | 5.1 | pts |

---

For the three and six months ended June 30, 2025, net income increased $25.6 million and $37.3 million, respectively, primarily due to improved Property & Casualty segment results reflecting the effect of rate and non-rate underwriting actions as well as the impact of lower catastrophe losses.

Horace Mann Educators Corporation 41 Second Quarter 2025 Form 10-Q

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**Consolidated Results of Operations**

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Net premiums and contract charges earned | $302.6 | $280.9 | 7.7% | $600.9 | $556.1 | 8.1% |
| Net investment income<sup>(1)</sup> | 110.8 | 108.4 | 2.2% | 226.7 | 213.8 | 6.0% |
| Net investment gains (losses) | (5.9) | (5.9) | —% | (9.2) | (3.7) | N.M. |
| Other income | 4.2 | 4.7 | -10.6% | 9.7 | 7.9 | 22.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 411.7 | 388.1 | 6.1% | 828.1 | 774.1 | 7.0% |
| Benefits, claims and settlement expenses | 183.5 | 207.3 | -11.5% | 366.7 | 383.6 | -4.4% |
| Interest credited | 52.7 | 53.8 | -2.0% | 105.5 | 106.7 | -1.1% |
| Operating expenses | 96.9 | 83.0 | 16.7% | 187.7 | 167.5 | 12.1% |
| DAC amortization expense | 29.9 | 27.0 | 10.7% | 59.5 | 54.0 | 10.2% |
| Intangible asset amortization expense | 3.6 | 3.7 | -2.7% | 7.2 | 7.3 | -1.4% |
| Interest expense | 8.6 | 8.7 | -1.1% | 17.5 | 17.4 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits, losses and expenses | 375.2 | 383.5 | -2.2% | 744.1 | 736.5 | 1.0% |
| Income before income taxes | 36.5 | 4.6 | 693.5% | 84.0 | 37.6 | 123.4% |
| Income tax expense | 7.1 | 0.8 | 787.5% | 16.4 | 7.3 | 124.7% |
| Net income  | $29.4 | $3.8 | 673.7% | $67.6 | $30.3 | 123.1% |

---

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

*Net Premiums and Contract Charges Earned*

For the three and six months ended June 30, 2025, net premiums and contract charges earned increased $21.7 million and $44.8 million, as the Property & Casualty segment continues to implement rate and inflation adjustments to coverage values.

*Net Investment Income*

For the three and six months ended June 30, 2025, total net investment income increased $2.4 million and $12.9 million. The increase for the quarter is primarily due to continued strong returns from our fixed income portfolio and higher returns from our commercial mortgage loan and limited partnership funds. Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $10.2 million, net investment income increased $12.6 million and $23.1 million for the three and six months ended June 30, 2025. The annualized investment yield on the portfolio excluding limited partnership interests\* was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Investment yield, excluding limited partnership interests, pretax - annualized\*<sup>(1)</sup> | 4.3% | 4.3% | 4.5% | 4.4% |
| Investment yield, excluding limited partnership interests, after tax - annualized\* | 3.5% | 3.5% | 3.6% | 3.5% |

---

<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

The higher investment yields, excluding limited partnership interests, for the six months ended June 30, 2025 reflected stronger income from the fixed income portfolios.

During the three and six months ended June 30, 2025, we continued to identify and purchase investments with attractive risk-adjusted yields relative to market conditions without venturing into asset classes or individual

Horace Mann Educators Corporation 42 Second Quarter 2025 Form 10-Q

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securities that would be inconsistent with our overall investment guidelines for the core portfolio. We continue to fund at levels that allow us to maintain our targeted allocation to commercial mortgage loan funds and limited partnership interests while maintaining balance between principal protection and risk.

*Net Investment Gains (Losses)*

For the three and six months ended June 30, 2025, total net investment losses were comparable to prior year and increased by $5.5 million, respectively. The breakdown of net investment gains (losses) by transaction type were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Credit loss and intent-to-sell impairments | $(3.1) | $0.9 | $(3.1) | $— |
| Sales and other, net | 2.0 | (3.2) | 4.1 | (3.3) |
| Change in fair value - equity securities | (0.7) | (2.1) | (1.9) | 0.5 |
| Change in fair value and gains (losses) realized on settlements - derivatives | (4.1) | (1.5) | (8.3) | (0.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses) | $(5.9) | $(5.9) | $(9.2) | $(3.7) |

---

From time to time, we may sell fixed maturity securities subsequent to the reporting date that were considered temporarily impaired at such reporting date. Such sales are due to issuer-specific events occurring subsequent to the reporting date that result in a change in our intent to sell a fixed maturity security.

*Other Income*

For the three and six months ended June 30, 2025, other income decreased $0.5 million and increased $1.8 million, respectively.

*Benefits, Claims and Settlement Expenses*

Benefits, claims and settlement expenses decreased $23.8 million for the three months ended June 30, 2025 due to lower catastrophe losses and underlying losses in the Property & Casualty segment as well as lower life mortality. Benefits, claims and settlement expenses decreased $16.9 million for the six months ended June 30, 2025 due to lower catastrophe losses and underlying losses in the Property & Casualty segment which were partially offset by higher benefits for long term disability in Group.

*Interest Credited*

For the three and six months ended June 30, 2025, interest credited decreased $1.1 million and $1.2 million.

Under the deposit method of accounting, the interest credited on the reinsured annuity block continues to be reported. The average deferred annuity credited rate, excluding the reinsured annuity block, was 3.3% and 3.1% as of June 30, 2025 and June 30, 2024, respectively.

*Operating Expenses*

For the three and six months ended June 30, 2025, operating expenses increased 16.7% and 12.1%, reflecting inflation, investments being made in growth initiatives and infrastructure, and increased compensation accruals driven by better than expected results.

*Deferred Policy Acquisition Costs (DAC) Amortization Expense*

For the three and six months ended June 30, 2025, DAC amortization expense increased $2.9 million and $5.5 million, primarily due to premium increases in the Property & Casualty segment driving higher commission and underwriting expenses which increase DAC asset levels.

*Intangible Asset Amortization Expense*

For the three and six months ended June 30, 2025, intangible asset amortization expense decreased $0.1 million and $0.1 million.

Horace Mann Educators Corporation 43 Second Quarter 2025 Form 10-Q

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*Interest Expense*

For the three and six months ended June 30, 2025, interest expense decreased $0.1 million and increased $0.1 million, respectively.

*Income Tax Expense*

The effective income tax rate on our pretax income, including net investment gains (losses), was 19.5% and 19.4% for the six months ended June 30, 2025 and 2024, respectively. Income from investments in tax-advantaged securities decreased the effective income tax rates by 2.4 and 3.1 percentage points for the six months ended June 30, 2025 and 2024, respectively.

We record liabilities for uncertain tax filing positions where it is more likely than not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based on changes in facts or law. We have no unrecorded liabilities from uncertain tax filing positions.

As of June 30, 2025, our federal income tax returns for years prior to 2021 are no longer subject to examination by the Internal Revenue Service. We do not anticipate any assessments for tax years that remain subject to examination to have a material effect on our financial position or results of operations.

On July 4, 2025, the One Big Beautiful Bill Act was signed into U.S. law, introducing a broad range of business tax reform provisions. The Company has evaluated the law's provisions on our operations and we do not expect the legislation to have a material impact on our financial statements or effective tax rate. Because the law was enacted after the close of the second quarter, no impacts for this legislation are reflected in results for the six months ended June 30, 2025.

**Outlook for 2025**

The following discussion provides outlook information for our results of operations and capital position.

**Consolidated Results**

At the time of issuance of this Quarterly Report on Form 10-Q, we estimate that 2025 full year core earnings\* will be within a range of $4.15 to $4.45 per diluted share, generating a core return on equity\* of 10%+. These results anticipate the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Property & Casualty segment target profitability of Auto in the mid-90s Combined Ratio and Property at a 90 or below Combined ratio with ~$90 million of catastrophe losses, in line with five-year historical averages

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Life & Retirement segment long-term target net interest spread between 220 and 230 bps and mortality in line with actuarial assumptions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Supplemental & Group Benefits segment target blended benefit ratio of 39%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net investment income between $470 million and $480 million pre-tax, or $370-$380 million excluding the accreted investment income on the deposit asset on reinsurance in the Life & Retirement segment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Approximately $35 million to $40 million in corporate Interest expense and other items included in results for the Corporate & Other segment

As described in Application of Critical Accounting Estimates, certain of our significant accounting measurements require the use of estimates and assumptions. As additional information becomes available, adjustments may be required. Those adjustments are charged or credited to net income for the period in which the adjustments are made and may impact actual results compared to our estimates above. Additionally, see forward-looking information in this Quarterly Report on Form 10-Q as well as Part I - Items 1 and 1A in our Annual Report on Form 10-K for the year ended December 31, 2024 concerning other important factors that could impact actual results. Our projections due not include a forecast of net investment gains (losses), which can vary substantially from one period to another and may have a significant impact on net income.

Horace Mann Educators Corporation 44 Second Quarter 2025 Form 10-Q

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**Application of Critical Accounting Estimates**

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions based on information available at the time the consolidated financial statements are prepared. These estimates and assumptions affect the reported amounts of our consolidated assets, liabilities, shareholders' equity and net income. Certain accounting estimates are particularly sensitive because of their significance to our consolidated financial statements and because of the possibility that subsequent events and available information may differ markedly from management's judgments at the time the consolidated financial statements were prepared. We have discussed with the Audit Committee the quality, not just the acceptability, of our accounting principles as applied in our financial reporting. The discussions generally included such matters as the consistency of our accounting policies and their application, and the clarity and completeness of our consolidated financial statements, which include related disclosures.

Information regarding our accounting policies pertaining to these topics is located in the Notes to the Consolidated Financial Statements contained in Part II - Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2024. In addition, discussion of accounting policies, including certain sensitivity information, was presented in Management's Discussion and Analysis of Financial Condition and Results of Operations - Application of Critical Accounting Estimates in that Form 10-K within which we identified the following accounting estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Valuation of hard-to-value fixed maturity securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluation of credit loss impairments for fixed maturity securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Valuation of future policy benefit reserves

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Valuation of liabilities for property and casualty unpaid claims and claim expense reserves

Compared to December 31, 2024, as of June 30, 2025, there were no material changes to accounting policies for areas most subject to significant management judgments identified above.

Horace Mann Educators Corporation 45 Second Quarter 2025 Form 10-Q

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**Results of Operations by Segment**

Consolidated financial results reflect the results of the Property & Casualty, Life & Retirement, and Supplemental & Group Benefits reporting segments, as well as the Corporate & Other reporting segment. These segments are defined based on financial information management uses to evaluate performance and to determine the allocation of resources. The following sections provide analysis and discussion of the results of operations for each of the reporting segments as well as investment results.

**Property & Casualty**

The Property & Casualty segment primarily markets private passenger auto insurance and residential home insurance. Horace Mann offers standard auto coverages, including liability, collision and comprehensive. Property coverage includes both homeowners and renters policies. For both auto and property coverage, Horace Mann offers educators a discounted rate and the Educator Advantage® package of features. The Property & Casualty segment represented 51% of total revenues in 2024.

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

For the three and six months ended June 30, 2025, net income reflected the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;*•* Increases in average written premium per policy

&nbsp;&nbsp;&nbsp;&nbsp;• Lower underlying loss ratio\*

&nbsp;&nbsp;&nbsp;&nbsp;• Catastrophe losses lower than prior year by 7.8 points and 4.4 points for the three and six months, respectively

&nbsp;&nbsp;&nbsp;&nbsp;• Higher net investment income driven by limited partnership portfolio

![938](hmn-20250630_g1.jpg)

Horace Mann Educators Corporation 46 Second Quarter 2025 Form 10-Q

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The following table provides certain financial information for Property & Casualty for the periods indicated.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions, unless otherwise indicated)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| **Underwriting Results** |  |  |  |  |  |  |  |  |
| Net premiums written\* | $211.4 | $199.2 | 6.1 | % | $396.7 | $371.3 | 6.8 | % |
| Net premiums earned | 197.3 | 179.2 | 10.1 | % | 390.0 | 352.4 | 10.7 | % |
| &nbsp;&nbsp;Losses and loss adjustment expenses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current accident year before catastrophe losses | 112.3 | 111.9 | 0.4 | % | 219.5 | 226.6 | -3.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Current accident year catastrophe losses | 29.7 | 40.9 | -27.4 | % | 46.1 | 57.1 | -19.3 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Prior years' reserve development<sup>(1)</sup> | (5.5) |  | N.M. | N.M. | (10.8) | (6.2) | N.M. | N.M. |
| &nbsp;&nbsp;Total losses and loss adjustment expenses | 136.5 | 152.8 | -10.7 | % | 254.8 | 277.5 | -8.2 | % |
| &nbsp;&nbsp;Operating expenses, including DAC amortization expense | 55.1 | 47.0 | 17.2 | % | 109.1 | 95.4 | 14.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Underwriting gain (loss) | 5.7 | (20.6) | 127.7 | % | 26.1 | (20.5) | N.M. | N.M. |
| &nbsp;&nbsp;Net investment income | 14.9 | 9.5 | 56.8 | % | 26.6 | 21.8 | 22.0 | % |
| &nbsp;&nbsp;Other income | 0.7 | 0.6 | 16.7 | % | 2.0 | 1.3 | 53.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before income taxes | 21.3 | (10.5) | 302.9 | % | 54.7 | 2.6 | 2003.8 | % |
| &nbsp;&nbsp;Income tax expense (benefit) | 4.8 | (1.9) | 352.6 | % | 11.4 | 0.6 | 1800.0 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | 16.5 | (8.6) | 291.9 | % | 43.3 | 2.0 | 2065.0 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Core earnings (loss)\* | 16.5 | (8.6) | 291.9 | % | 43.3 | 2.0 | 2065.0 | % |
| **Operating Statistics:** |  |  |  |  |  |  |  |  |
| Auto |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums written\* | $126.7 | $122.4 | 3.5 | % | $248.3 | $239.0 | 3.9 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss and loss adjustment expense ratio | 70.7% | 71.1% | -0.4 | pts | 68.7% | 72.1% | -3.4 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;Expense ratio | 27.8% | 26.1% | 1.7 | pts | 28.1% | 26.9% | 1.2 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;Combined ratio: | 98.5% | 97.2% | 1.3 | pts | 96.8% | 99.0% | -2.2 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years' reserve development<sup>(1)</sup> | -1.2% | -6.2% | 5.0 | pts | -1.6% | -3.2% | 1.6 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catastrophe losses | 3.2% | 3.1% | 0.1 | pts | 2.4% | 2.3% | 0.1 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underlying combined ratio\* | 96.5% | 100.3% | -3.8 | pts | 96.0% | 99.9% | -3.9 | pts |
| Property (excludes other liability) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums written\* | $84.7 | $76.8 | 10.3 | % | $148.4 | $132.3 | 12.2 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss and loss adjustment expense ratio | 66.3% | 109.7% | -43.4 | pts | 59.3% | 89.9% | -30.6 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;Expense ratio | 28.3% | 26.6% | 1.7 | pts | 28.0% | 27.6% | 0.4 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;Combined ratio: | 94.6% | 136.3% | -41.7 | pts | 87.3% | 117.5% | -30.2 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior years' reserve development<sup>(1)</sup> | -5.4% | —% | -5.4 | pts | -4.8% | —% | -4.8 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Catastrophe losses | 34.9% | 58.8% | -23.9 | pts | 27.8% | 41.9% | -14.1 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Underlying combined ratio\* | 65.1% | 77.5% | -12.4 | pts | 64.3% | 75.6% | -11.3 | pts |
| Household retention-LTM  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Auto |  |  |  |  | 83.8% | 86.6% | -2.8 | pts |
| &nbsp;&nbsp;&nbsp;&nbsp;Property |  |  |  |  | 89.1% | 90.1% | -1.0 | pts |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>(Favorable) unfavorable.

Horace Mann Educators Corporation 47 Second Quarter 2025 Form 10-Q

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The Property & Casualty segment three and six month net income of $16.5 million and $43.3 million, as well as the three month and six month combined ratio of 97.0% and 93.3%, respectively, reflected the positive effect of rate and non-rate actions as well as catastrophe losses below prior year and recent prior periods.

The current quarter reflects an increase in net premiums written\* of 6.1%, with average written premiums\* rising for both property and auto. Sales\* were steady for the quarter, up 5.5% from the prior year, and household retention remains in line with expectations.

The three and six month loss ratios decreased 16.2 and 13.5 points from last year reflecting higher average premiums and catastrophe losses that were below recent prior periods. In addition, $5.5 million and $10.8 million of net favorable prior years' reserve development for the three and six months reduced the loss ratio 2.8 points for both comparisons. Catastrophe losses for the quarter were $29.7 million, pretax, contributing 15.0 points to the combined ratio. In total, there were 20 events designated as catastrophes by Property Claims Services (PCS) in this year's second quarter. The lower catastrophe losses are driven by lower frequency and severity of policyholder claims. In the second quarter of 2024, catastrophe losses were $40.9 million, pretax, contributing 22.8 points to the combined ratio, from 28 PCS events.

The year-over-year increase in average written premiums\* for auto policies remained elevated in the second quarter at 8.8%, with retention declining slightly, and in line with expectations, given substantial rate increases. The second-quarter auto underlying loss ratio\* was 68.7%, improving 5.5 points from the prior year quarter, reflecting the benefit of higher average earned premium. The second quarter reported loss ratio benefited 1.2 points from favorable prior years' reserve development.

The year-over-year increase in average written premiums\* for property policies was 11.6% in the second quarter, as rate increases and inflation adjustments to coverage values continue to take effect. Policyholder retention remains strong. The second-quarter property underlying loss ratio\* was 36.8%, a 14.1 point decrease from prior year reflecting the increase in average earned premium\* and lower frequency and severity.

Horace Mann Educators Corporation 48 Second Quarter 2025 Form 10-Q

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**Life & Retirement**

The Life & Retirement segment markets 403(b) tax-qualified fixed, fixed indexed and variable annuities; the Horace Mann Retirement Advantage® open architecture platform for 403(b)(7) and other defined contribution plans; and other retirement products to educators as well as traditional term and whole life insurance products. Horace Mann is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net premiums written on a statutory accounting basis. The Life & Retirement segment represented 32% of total revenues in 2024.

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

For the three and six months ended June 30, 2025, net income reflected the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;• Benefits expense in Life decreased due to lower mortality in the current year

&nbsp;&nbsp;&nbsp;&nbsp;• Annualized quarterly net interest spread on fixed annuities up 30 basis points

&nbsp;&nbsp;&nbsp;&nbsp;• Higher net investment income from limited partnerships and commercial mortgage loan funds

![1036](hmn-20250630_g2.jpg)![1038](hmn-20250630_g3.jpg)

Horace Mann Educators Corporation 49 Second Quarter 2025 Form 10-Q

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The following table provides certain information for Life & Retirement for the periods indicated.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| **Life & Retirement** |  |  |  |  |  |  |  |
| Net premiums written and contract deposits\* | $141.7 | $133.6 | 6.1% | $282.0 | $265.2 | 6.3 | % |
| Revenues  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | 39.6 | 38.0 | 4.2% | 78.1 | 75.8 | 3.0 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income<sup>(1)</sup> | 90.4 | 88.9 | 1.7% | 179.5 | 174.7 | 2.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 4.9 | 4.6 | 6.5% | 9.7 | 9.4 | 3.2 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 134.9 | 131.5 | 2.6% | 267.3 | 259.9 | 2.8 | % |
| Benefits and Expenses |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits and change in reserves | 24.2 | 31.0 | -21.9% | 62.2 | 60.9 | 2.1 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest credited  | 51.5 | 52.6 | -2.1% | 103.1 | 104.4 | -1.2 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 29.1 | 26.8 | 8.6% | 57.5 | 52.5 | 9.5 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;DAC amortization expense | 5.7 | 6.1 | -6.6% | 11.7 | 12.7 | -7.9 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible asset amortization expense |  | 0.1 | N.M. | 0.1 | 0.1 | N.M. | N.M. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and expenses  | 110.5 | 116.6 | -5.2% | 234.6 | 230.6 | 1.7 | % |
| Income before income taxes | 24.4 | 14.9 | 63.8% | 32.7 | 29.3 | 11.6 | % |
| Income tax expense | 4.4 | 2.6 | 69.2% | 5.9 | 5.3 | 11.3 | % |
| Net income | 20.0 | 12.3 | 62.6% | 26.8 | 24.0 | 11.7 | % |
| Core earnings\* | 24.6 | 12.3 | 100.0% | 32.5 | 22.2 | 46.4 | % |
| Life policies in force (in thousands) |  |  |  | 161 | 162 | -0.6 | % |
| Life insurance in force |  |  |  | $21241 | $20787 | 2.2 | % |
| Life persistency - LTM |  |  |  | 96.0% | 95.9% | 0.1 | pts |
| Annuity contracts in force (in thousands) |  |  |  | 215 | 220 | -2.3 | % |
| Horace Mann Retirement Advantage<sup>®</sup> contracts in force (in thousands) |  |  |  | 22 | 20 | 10.0 | % |
| Cash value persistency - LTM |  |  |  | 91.7% | 91.5% | 0.2 | pts |

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<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Life & Retirement segment net income for the three and six months ended June 30, 2025, of $20.0 million and $26.8 million was up 62.6% and 11.7%, primarily due to favorable benefits in the Life segment and higher net investment income. Life benefits reflected lower mortality costs in the current quarter compared to the prior year. On a year-to-date basis, mortality costs remain within our expected actuarial range. The net spread increase reflects lower borrowing costs and increased advances from our FHLB funding agreements compared with 2024. Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $6.7 million ($5.3 million after tax), net investment income increased $8.2 million and $11.5 million for the three and six months ended June 30, 2025.

For the Retirement business, net annuity contract deposits were up 7.8% for the quarter at $110.2 million. Educators continue to begin their relationship with Horace Mann through 403(b) retirement savings products, which provide encouraging cross-sell opportunities. Average persistency rose from the prior period to 91.7%.

Horace Mann currently has $5.7 billion in annuity assets under management, including $2.2 billion of fixed annuities, $3.1 billion of variable annuities and $0.4 billion of fixed indexed annuities. Assets under administration, which includes Horace Mann Retirement Advantage<sup>®</sup> and other advisory and recordkeeping assets, were up due to the effect of equity market performance on assets.

Life annualized sales\* were $2.5 million for the quarter. Persistency remains strong. Life insurance in force rose to $21.2 billion at quarter-end.

We actively manage our interest rate risk exposure, considering a variety of factors, including earned interest rates, credited interest rates and the relationship between the expected durations of assets and liabilities. We

Horace Mann Educators Corporation 50 Second Quarter 2025 Form 10-Q

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estimate that over the next 12 months approximately $501.3 million of the Life & Retirement investment portfolio and related investable cash flows will be reinvested at current market rates.

As a general guideline, based on our existing policies and investment portfolio, the impact from a 100 basis point decline in the average reinvestment rate would reduce Life & Retirement net investment income by approximately $2.4 million in year one and $4.7 million in year two, reducing the annualized net interest spread on fixed annuities by approximately 9 basis points and 17 basis points in the respective periods, compared to the current period annualized net interest spread on fixed annuities. We could also consider potential changes in rates credited to policyholders, tempered by any restrictions on the ability to adjust policyholder rates due to guaranteed minimum crediting rates.

**Supplemental & Group Benefits**

The Supplemental & Group Benefits segment markets group solutions for districts and other public employers, as well as individual supplemental products typically distributed through the employer channel. The Supplemental & Group Benefits segment provides group term life, disability and specialty health insurance, along with supplemental products including cancer, heart, hospital, supplemental disability and accident coverages. The Supplemental & Group Benefits segment represented 18% of total revenues in 2024.

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

For the three and six months ended June 30, 2025, net income reflected the following factors:

• Lower net investment income related to fixed income portfolio

• Lower benefits ratio for group benefits for the quarter and higher benefits ratio for the year

• Higher operating expenses due to investment in growth

![886](hmn-20250630_g4.jpg)

Horace Mann Educators Corporation 51 Second Quarter 2025 Form 10-Q

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The following table provides certain information for Supplemental & Group Benefits for the periods indicated.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **% Change** | **2025** | **2024** | **% Change** | **% Change** |
| **Supplemental & Group Benefits** |  |  |  |  |  |  |  |  |
| Revenues  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net premiums and contract charges earned | $65.7 | $63.7 | 3.1 | % | $132.8 | $127.9 | 3.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Net investment income<sup>(1)</sup> | 7.1 | 10.5 | -32.4 | % | 16.5 | 18.3 | -9.8 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | (1.9) | (1.2) | -58.3 | % | (3.0) | (4.2) | 28.6 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 70.9 | 73.0 | -2.9 | % | 146.3 | 142.0 | 3.0 | % |
| Benefits and Expenses |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Benefits, settlement expenses and change in reserves | 24.0 | 24.7 | -2.8 | % | 52.1 | 47.5 | 9.7 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses (including DAC amortization expense)  | 33.1 | 26.7 | 24.0 | % | 62.6 | 55.3 | 13.2 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible asset amortization expense | 3.6 | 3.6 |  | % | 7.1 | 7.2 | -1.4 | % |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total benefits and expenses  | 60.7 | 55.0 | 10.4 | % | 121.8 | 110.0 | 10.7 | % |
| Income before income taxes | 10.2 | 18.0 | -43.3 | % | 24.5 | 32.0 | -23.4 | % |
| Income tax expense | 2.3 | 3.9 | -41.0 | % | 5.4 | 6.9 | -21.7 | % |
| Net income | 7.9 | 14.1 | -44.0 | % | 19.1 | 25.1 | -23.9 | % |
| Core earnings\* | 13.4 | 17.0 | -21.2 | % | 27.4 | 30.8 | -11.0 | % |
| Benefits ratio | 36.7% | 38.8% | -2.1 | pts | 39.3% | 37.2% | 2.1 | pts |
| Operating expense ratio | 46.7% | 36.6% | 10.1 | pts | 42.8% | 39.0% | 3.8 | pts |
| Pretax profit margin | 14.4% | 24.6% | -10.2 | pts | 16.7% | 22.5% | -5.8 | pts |
| Individual supplemental products benefits ratio | 27.7% | 28.0% | -0.3 | pts | 28.0% | 29.5% | -1.5 | pts |
| Individual supplemental premium persistency <br>&nbsp;&nbsp;&nbsp;&nbsp;(rolling beginning 12 months) | 89.9% | 91.4% | -1.5 | pts | 89.9% | 91.4% | -1.5 | pts |
| Group benefits products benefits ratio | 44.8% | 48.3% | -3.5 | pts | 49.2% | 44.0% | 5.2 | pts |
| Group benefits covered lives (in thousands) |  |  |  |  | 822 | 830 | -1.0 | % |

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<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

Supplemental & Group Benefits segment net income for the three and six months ended June 30, 2025, of $7.9 million and $19.1 million, was down $6.2 million and $6.0 million. The individual supplemental benefits ratio decreased 0.3 points. The group benefits benefit ratio decreased 3.5 points due to favorable policy utilization during the quarter. Operating expense increase reflects inflation and investments being made in growth initiatives and infrastructure.

Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $3.5 million ($2.8 million after tax), net investment income increased $0.1 million and $1.7 million for the three and six months ended June 30, 2025.

Total sales\* for the three and six months ended June 30, 2025 increased $0.4 million with individual supplemental product sales increasing $1.7 million and group benefits products decreasing $1.3 million. Individual supplemental sales increased 42.5% due to strong customer demand. Variability in sales between comparable periods is typical for Group Benefits given the relatively small scale and the longer sales cycle of this business. Persistency remains strong for the segment.

Horace Mann Educators Corporation 52 Second Quarter 2025 Form 10-Q

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**Corporate & Other**

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

The following table provides certain financial information for Corporate & Other for the periods indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Revenues |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | (1.1) | 0.2 | -650.0% | 5.1 | 0.4 | N.M. |
| Expenses |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | $8.6 | $8.7 | -1.1% | $17.5 | $17.4 | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating expenses | 3.8 | 3.4 | 11.8% | 6.3 | 5.6 | 12.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses  | 12.4 | 12.1 | 2.5% | 23.8 | 23.0 | 3.5% |
| Loss before income taxes | (13.5) | (11.9) | -13.4% | (18.7) | (22.6) | 17.3% |
| Income tax benefit | (3.2) | (2.5) | -28.0% | (4.4) | (4.7) | 6.4% |
| Core loss\* after tax | (10.3) | (9.4) | -9.6% | (14.3) | (17.9) | 20.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net investment gains (losses), pretax | (5.9) | (5.9) | —% | (9.2) | (3.7) | N.M. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax on net investment gains (losses) | (1.2) | (1.3) | 7.7% | (1.9) | (0.8) | N.M. |
| Net investment gains (losses), after tax | (4.7) | (4.6) | -2.2% | (7.3) | (2.9) | N.M. |
| Net loss | (15.0) | (14.0) | -7.1% | (21.6) | (20.8) | -3.8% |

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For the three and six months ended June 30, 2025, the net results decreased $1.0 million and $0.8 million, primarily due to lower net investment income in the quarter and higher net investment losses and operating expenses offset by higher net investment income included in revenues for the year.

**Investment Results**

*(All comparisons vs. same periods in 2024, unless noted otherwise)*

Our investment strategy is primarily focused on generating income to support product liabilities, and balances principal protection and risk. Total net investment income includes net investment income from our managed investment portfolio as well as accreted investment income from the deposit asset on reinsurance related to the company's reinsurance of policy liabilities related to legacy individual annuities written in 2002 or earlier.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **2025-2024** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** |
|  | **2025** | **2024** | **% Change** | **2025** | **2024** | **% Change** |
| Net investment income - managed investment portfolio | $85.7 | $82.7 | 3.6% | $177.2 | $162.6 | 9.0% |
| Investment income - deposit asset on reinsurance | 25.1 | 25.7 | -2.3% | 49.5 | 51.2 | -3.3% |
| Total net investment income<sup>(1)</sup> | 110.8 | 108.4 | 2.2% | 226.7 | 213.8 | 6.0% |
| Pretax net investment gains (losses) | (5.9) | (5.9) | —% | (9.2) | (3.7) | 148.6% |
| Pretax net unrealized investment losses on fixed maturity securities |  |  |  | (394.1) | (471.1) | N.M |

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<sup>(1)</sup> In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2025 Form 10-Q.

For the three and six months ended June 30, 2025, net investment income from our managed investment portfolio increased $3.0 million and $14.6 million. The increase was primarily driven by higher returns in limited partnerships, including commercial mortgage loan funds. The investment yield on the portfolio excluding limited partnership interests was 4.5%, with new money yields continuing to exceed portfolio yields in the core fixed maturity securities portfolio.

For the three and six months ended June 30, 2025, pretax net investment losses increased $0.0 million and $5.5 million. The increase was due to realized losses on dispositions of invested assets.

Horace Mann Educators Corporation 53 Second Quarter 2025 Form 10-Q

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Pretax net unrealized investment losses on fixed maturity securities as of June 30, 2025 were down $77.0 million, or 30.6%, compared to December 31, 2024, primarily due to a decrease of 10 basis points in US Treasury rates and investment-grade credit spreads that were tighter by 10 basis points.

*Fixed Maturity and Equity Securities Portfolios*

The table below presents our fixed maturity and equity securities portfolios by major asset class, including the 10 largest sectors of our corporate bond holdings (based on fair value).

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| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Number of<br>Issuers** | **Fair<br>Value** | **Amortized<br>Cost, net** | **Pretax Net<br>Unrealized<br>Loss** |
| **Fixed maturity securities** | | | | |
| &nbsp;&nbsp;&nbsp;Corporate bonds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banking & Finance | 159 | $377.2 | $408.7 | $(31.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance | 55 | 159.0 | 171.5 | (12.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Energy | 88 | 130.4 | 141.7 | (11.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;HealthCare,Pharmacy | 75 | 117.6 | 138.6 | (21.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Utilities | 74 | 104.7 | 122.1 | (17.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;Real Estate | 37 | 87.1 | 92.8 | (5.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation | 42 | 69.4 | 77.0 | (7.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer Products | 55 | 61.3 | 78.3 | (17.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Natural Gas | 16 | 52.1 | 57.9 | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology | 35 | 44.4 | 50.0 | (5.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;All other corporates<sup>(1)</sup> | 299 | 567.8 | 616.5 | (48.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total corporate bonds | 935 | 1771.0 | 1955.1 | (184.1) |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Government and federally sponsored agencies | 242 | 605.5 | 643.5 | (38.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial<sup>(2)</sup> | 157 | 314.8 | 334.4 | (19.6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 78 | 54.1 | 54.4 | (0.3) |
| &nbsp;&nbsp;Municipal bonds<sup>(3)</sup> | 577 | 1151.8 | 1240.0 | (88.2) |
| &nbsp;&nbsp;&nbsp;Government bonds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. | 45 | 363.6 | 424.4 | (60.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign | 3 | 13.3 | 14.1 | (0.8) |
| &nbsp;&nbsp;Collateralized loan obligations<sup>(4)</sup> | 401 | 888.8 | 887.3 | 1.5 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities | 150 | 290.4 | 294.2 | (3.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities | 2588 | $5453.3 | $5847.4 | $(394.1) |
| **Equity securities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Non-redeemable preferred stocks | 16 | $56.5 |  |  |
| &nbsp;&nbsp;&nbsp;Common stocks | 4 | 1.8 |  |  |
| &nbsp;&nbsp;&nbsp;Closed-end fund |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities | 20 | $58.3 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 2608 | $5511.6 |  |  |

---

<sup>(1)</sup> The All other corporates category contains 20 additional industry sectors. Telecommunications, Food and Beverage, Retail, Broadcasting & Media, and Metal & Mining represented $189.6 million of fair value at June 30, 2025, with the remaining 15 sectors each representing less than $33.9 million.

<sup>(2)</sup> At June 30, 2025, 100% were investment grade, with an overall credit rating of AA+, and the positions were well diversified by property type, geography and sponsor.

<sup>(3)</sup> Holdings are geographically diversified, 39.8% are tax-exempt and 77.3% are revenue bonds tied to essential services, such as mass transit, water and sewer. The overall credit quality of the municipal bond portfolio was AA- at June 30, 2025.

<sup>(4)</sup> Based on fair value, 99.8% of the collateralized loan obligation securities were rated investment grade based on ratings assigned by a nationally recognized statistical ratings organization (NRSO- S&P, Moody's, Fitch, Dominion, A.M. Best, Morningstar, Egan Jones and Kroll).

As of June 30, 2025, our diversified fixed maturity securities portfolio consisted of 3,942 investment positions, issued by 2,588 entities, and totaled approximately $5.5 billion in fair value. This portfolio was 97.2% investment grade, based on fair value, with an average quality rating of AA-. Our investment guidelines target single

Horace Mann Educators Corporation 54 Second Quarter 2025 Form 10-Q

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corporate issuer concentrations to 0.5% of invested assets for AAA or AA rated securities, 0.35% of invested assets for A or BBB rated securities, and $5.0 million for non-investment grade securities.

*Rating of Fixed Maturity Securities and Equity Securities*<sup>(1)</sup>

The following table presents the composition and fair value of our fixed maturity and equity securities portfolios by rating category. As of June 30, 2025, 94.7% of these combined portfolios were investment grade, based on fair value, with an overall average quality rating of A+. We have classified the entire fixed maturity securities portfolio as available for sale, which is carried at fair value.

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| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Percent of Portfolio <br>Fair Value** | **Percent of Portfolio <br>Fair Value** | **June 30, 2025** | **June 30, 2025** |
| | **December 31, 2024** | **June 30, 2025** | **Fair<br>Value** | **Amortized<br>Cost, net** |
| **Fixed maturity securities** | | | | |
| &nbsp;&nbsp;AAA | 11.9% | 11.6% | $631.8 | $647.2 |
| &nbsp;&nbsp;AA<sup>(2)</sup> | 42.3 | 43.6 | 2377.1 | 2598.5 |
| &nbsp;&nbsp;A | 19.7 | 20.1 | 1094.4 | 1144.9 |
| &nbsp;&nbsp;BBB | 21.2 | 19.6 | 1071.1 | 1157.7 |
| &nbsp;&nbsp;BB | 1.3 | 1.5 | 80.4 | 87.4 |
| &nbsp;&nbsp;B | 0.5 | 0.6 | 32.9 | 32.8 |
| &nbsp;&nbsp;CCC or lower | 0.1 |  | 2.0 | 3.1 |
| &nbsp;&nbsp;Not rated<sup>(3)</sup> | 3.0 | 3.0 | 163.6 | 175.8 |
| &nbsp;&nbsp;&nbsp;Total fixed maturity securities | 100.0% | 100.0% | $5453.3 | $5847.4 |
| **Equity securities** |  |  |  |  |
| &nbsp;&nbsp;AAA | —% | —% | $— |  |
| &nbsp;&nbsp;AA |  |  |  |  |
| &nbsp;&nbsp;A |  |  |  |  |
| &nbsp;&nbsp;BBB | 77.3 | 77.0 | 44.9 |  |
| &nbsp;&nbsp;BB | 16.2 | 15.4 | 9.0 |  |
| &nbsp;&nbsp;B | 0.2 | 0.2 | 0.1 |  |
| &nbsp;&nbsp;CCC or lower |  |  |  |  |
| &nbsp;&nbsp;Not rated | 6.3 | 7.4 | 4.3 |  |
| &nbsp;&nbsp;&nbsp;Total equity securities | 100.0% | 100.0% | $58.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  | $5511.6 |  |

---

<sup>(1)</sup> Ratings are assigned by an NRSRO when available, If no rating is available from an NRSRO, then an internally developed rating is used. Ratings for publicly traded securities are determined when the securities are acquired and are updated monthly to reflect any changes in ratings.

<sup>(2)</sup> At June 30, 2025, the AA rated fair value amount included $362.4 million of U.S. Government and federally sponsored agency securities and $602.8 million of mortgage-backed and other asset-backed securities issued by U.S. Government and federally sponsored agencies.

<sup>(3)</sup> This category primarily represents private placement and municipal securities not rated by a NRSRO.

As of June 30, 2025, the fixed maturity securities portfolio had $454.5 million of pretax gross unrealized investment losses on $3,335.6 million of fair value related to 2,294 positions. Of the investment positions with gross unrealized losses, there were 428 trading below 80.0% of the carrying value as of June 30, 2025. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of June 30, 2025 as due to factors other than a credit loss. Future changes in circumstances related to these and other securities could require subsequent recognition of impairment. See Part II - Item 8, Note 2 of the Consolidated Financial Statements in this Quarterly Report on Form 10-Q for more information.

Unrealized investment losses declined primarily due to a decrease in US Treasury rates. As of June 30, 2025, the 10-year U.S. Treasury yield decreased 34 basis points since December 31, 2024, declining from 4.57% as of December 31, 2024 to 4.23% as of June 30, 2025. Credit spreads were only slightly wider during the same time period, with investment grade and high yield both wider by 3 basis points. As of June 30, 2025, investment grade and high yield total returns were up 4.17% and 4.57%, respectively, since December 31, 2024.

Horace Mann Educators Corporation 55 Second Quarter 2025 Form 10-Q

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**Liquidity and Capital Resources**

Our liquidity and access to capital were not materially impacted by inflation or changes in interest rates during the three and six months ended June 30, 2025. For further discussion regarding the potential future impacts of inflation and changes in interest rates, see Part I – Item 1A - Risk Factors and Part II – Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations - Effects of Inflation and Changes in Interest Rates presented in our Annual Report on Form 10-K for the year ended December 31, 2023.

**Investments**

Information regarding our investment portfolio, which is comprised primarily of investment grade fixed maturity securities, is presented in Part I - Item 1, Note 2 of the Consolidated Financial Statements as well as Part I - Item 2 - Investment Results in this Quarterly Report on Form 10-Q.

**Cash Flow**

Our short-term liquidity requirements, within a 12 month operating cycle, are for the timely payment of claims and benefits to policyholders, operating expenses, interest payments and federal income taxes. Cash flow generated from operations has been, and is expected to be, adequate to meet our operating cash needs in the next 12 months. Cash flow in excess of operational needs has been used to fund business growth, pay dividends to shareholders and repurchase shares of our common stock. Long-term liquidity requirements, beyond one year, are principally for the payment of future insurance and annuity policy claims and benefits, as well as retirement of debt. The following table summarizes our consolidated cash flows activity for the periods indicated.

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| | | | |
|:---|:---|:---|:---|
| **($ in millions)** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** |
|  | **2025** | **2024** | **% Change** |
| Net cash provided by operating activities | $272.1 | $114.7 | 137.2% |
| Net cash used in investing activities | (72.0) | (87.2) | -17.4% |
| Net cash used in financing activities | (197.3) | (42.6) | 363.1% |
| Net decrease in cash | 2.8 | (15.1) | -118.5% |
| Cash at beginning of period | 38.1 | 29.7 | 28.3% |
| Cash at end of period | $40.9 | $14.6 | 180.1% |

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*Operating Activities*

As a holding company, we conduct our principal operations in the personal lines segment of the property and casualty, life, retirement, supplemental and group insurance industries through our subsidiaries. Our insurance subsidiaries generate cash flow from premium and investment income, generally well in excess of their immediate needs for policy obligations, operating expenses and other cash requirements. Fluctuations in net cash provided by operating activities primarily reflect seasonality in timing of premium and investment income collections and claims and benefits payments.

For the six months ended June 30, 2025, net cash provided by operating activities increased $157.4 million.

*Investing Activities*

Net cash used in investing activities for the six months ended June 30, 2025 and 2024 was $(72.0) million and $(87.2) million, respectively.

Investing cash inflows consist primarily of proceeds from the sales and maturities of investments. Investing cash outflows consist primarily of payments for purchases of investments. Our investment strategy is to appropriately match the cash flows and durations of our assets with the cash flows and durations of our liabilities to meet the funding requirements of our business and, generally, the expected principal and interest payments produced by our fixed maturity securities portfolio adequately fund the estimated runoff of our insurance reserves. When market opportunities arise, we may sell selected securities and reinvest the proceeds to improve the yield and credit quality of our portfolio. We may at times also sell selected securities and reinvest the proceeds to improve the duration matching of our assets and liabilities and/or rebalance our portfolio. As a result, sales before maturity may vary from period to period. The sale and purchase of short-term investments is influenced by

Horace Mann Educators Corporation 56 Second Quarter 2025 Form 10-Q

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proceeds received from FHLB funding advances, issuance of debt, our reverse repurchase agreement program, and by the amount of cash which is at times held in short-term investments to facilitate the availability of cash to fund the purchase of appropriate long-term investments, repay maturing debt, and/or to respond to catastrophes.

*Financing Activities*

Financing activities include primarily payment of dividends, receipt and withdrawal of funds by annuity contractholders, changes in the deposit asset on reinsurance, repurchases of our common stock, fluctuations in book overdraft balances, and borrowings, repayments and repurchases related to debt facilities.

For the six months ended June 30, 2025, net cash used in financing activities increased $154.7 million compared to the prior year period. The change was primarily due to a $57.0 million increase in net cash outflow from reverse repurchase agreements, a $39.9 million increase in cash outflows from the deposit asset on reinsurance, a $39.8 million increase in cash outflows from benefits, withdrawals and net transfers to Separate Account variable annuity assets and a $15.0 million net increase in net cash outflows (advances less repayments) from FHLB funding agreements.

The following table shows activity from FHLB funding agreements for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
| **($ in millions)** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **2025-2024** | **2025-2024** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Balance at beginning of the period | $989.5 | $904.5 | $85.0 | 9.4% |
| Advances received from FHLB funding agreements | 364.5 | 190.0 | 174.5 | 91.8% |
| Principal repayments on FHLB funding agreements | (354.5) | (155.0) | (199.5) | 128.7% |
| Balance at end of the period | $999.5 | $939.5 | $60.0 | 6.4% |

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Horace Mann Educators Corporation 57 Second Quarter 2025 Form 10-Q

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**Liquidity Sources and Uses**

Our potential sources and uses of funds principally include the following activities:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Property & Casualty** | **Life & Retirement** | **Supplemental & Group Benefits** | **Corporate & Other** |
| **Activities for potential sources of funds** | | | | |
| Receipt of insurance premiums, contractholder charges and fees | ☑ | ☑ | ☑ | |
| Recurring service fees, commissions and overrides | ☑ | ☑ | ☑ | ☑ |
| Contractholder fund deposits | | ☑ | ☑ | |
| Reinsurance and indemnification program recoveries | ☑ | ☑ | ☑ | |
| Receipts of principal, interest and dividends on investments | ☑ | ☑ | ☑ | ☑ |
| Proceeds from sales of investments | ☑ | ☑ | ☑ | ☑ |
| Proceeds from FHLB borrowing and funding agreements | ☑ | ☑ | ☑ | |
| Proceeds from reverse repurchase agreements | ☑ | ☑ | ☑ | |
| Intercompany loans | ☑ | ☑ | ☑ | ☑ |
| Capital contributions from parent | ☑ | ☑ | ☑ | |
| Dividends or return of capital from subsidiaries | | | | ☑ |
| Tax refunds/settlements | ☑ | ☑ | ☑ | ☑ |
| Proceeds from periodic issuance of additional securities | | | | ☑ |
| Proceeds from debt issuances | | | | ☑ |
| Proceeds from revolving credit facility | | | | ☑ |
| Receipt of intercompany settlements related to employee benefit plans | | | | ☑ |
| **Activities for potential uses of funds** | | | | |
| Payment of claims and related expenses | ☑ | ☑ | ☑ | |
| Payment of contract benefits, surrenders and withdrawals | | ☑ | ☑ | |
| Reinsurance cessions and indemnification program payments | ☑ | ☑ | ☑ | |
| Payment of operating costs and expenses | ☑ | ☑ | ☑ | ☑ |
| Payments to purchase investments | ☑ | ☑ | ☑ | ☑ |
| Repayment of FHLB borrowing and funding agreements | ☑ | ☑ | ☑ | |
| Repayment of reverse repurchase agreements | ☑ | ☑ | ☑ | |
| Payment or repayment of intercompany loans | ☑ | ☑ | ☑ | ☑ |
| Capital contributions to subsidiaries | | | | ☑ |
| Dividends or return of capital to shareholders/parent company | ☑ | ☑ | ☑ | ☑ |
| Tax payments/settlements | ☑ | ☑ | ☑ | ☑ |
| Common share repurchases | | | | ☑ |
| Debt service expenses and repayments | | | | ☑ |
| Repayment on revolving credit facility | | | | ☑ |
| Payments related to employee benefit plans | | | | ☑ |
| Payments for business acquisitions | | | | ☑ |

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We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions. Liquidity is managed at both the entity and enterprise level across HMEC and is assessed on both base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. Additionally, we have existing intercompany agreements in place that facilitate liquidity management across HMEC to enhance flexibility.

Horace Mann Educators Corporation 58 Second Quarter 2025 Form 10-Q

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As of June 30, 2025, we held $1.0 billion of cash, U.S. government and agency fixed maturity securities and public equity securities (excluding non-redeemable preferred stocks and foreign equity securities) which, under normal market conditions, could be rapidly liquidated.

Certain remote events and circumstances could constrain our liquidity. Those events and circumstances include, for example, a catastrophe resulting in extraordinary losses, a downgrade of our Senior Notes rating to non-investment grade status or a downgrade in our insurance subsidiaries' financial strength ratings. The rating agencies also consider the interdependence of our individually rated entities; therefore, a rating change in one entity could potentially affect the ratings of other related entities.

**Capital Resources**

We have determined the amount of capital that is needed to adequately fund and support business growth, primarily based on risk-based capital formulas, including those developed by the National Association of Insurance Commissioners. Historically, our insurance subsidiaries have generated capital in excess of such needed levels. These excess amounts have been paid to us through dividends. We have then utilized these dividends and our access to the capital markets to fund growth initiatives, service and retire debt, pay dividends to our shareholders, repurchase shares of our common stock and for other corporate purposes. If necessary, we also have other potential sources of liquidity that could provide for additional funding to meet corporate obligations or pay shareholder dividends, including a revolving line of credit, reverse repurchase agreements program, as well as issuances of various securities.

The insurance subsidiaries are subject to various regulatory restrictions that limit the amount of annual dividends or other distributions, including loans or cash advances, available to us without prior approval of the insurance regulatory authorities. The aggregate amount of dividends that may be paid in 2025 from all of our insurance subsidiaries without prior regulatory approval is $148.8 million, excluding the impact and timing of prior dividends, of which $39.0 million was paid during the six months ended June 30, 2025. We anticipate that our sources of capital will continue to generate sufficient capital to meet the needs for business growth, debt interest payments, shareholder dividends and our share repurchase programs. Additional information is contained in Part II - Item 8, Note 13 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024.

Total capital was $1,907.8 million as of June 30, 2025, including $547.5 million of long-term debt. Total debt represented 28.7% of total capital including net unrealized investment losses on fixed maturity securities (25.9% excluding net unrealized investment losses on fixed maturity securities and net reserve remeasurements attributable to discount rates\*) as of June 30, 2025, which was slightly above our long-term target of 25.0% for our debt to capital ratio excluding net unrealized investment gains (losses) and net reserve remeasurements attributable to discount rate.

Shareholders' equity was $1,360.3 million as of June 30, 2025, including net unrealized investment losses on fixed maturity securities of $309.9 million after taxes. The market value of our common stock and the market value per share were $1,754.6 million and $42.97, respectively, as of June 30, 2025. Book value per share and adjusted book value per share\* was $33.31 and $38.46, respectively, as of June 30, 2025.

Additional information regarding net unrealized investment gains (losses) on fixed maturity securities as of June 30, 2025 is included in Part I - Item 1, Note 2 of the Consolidated Financial Statements as well as in Part I - Item 2 - Investment Results in this Quarterly Report on Form 10-Q.

Total dividends paid to shareholders was $28.6 million for the six months ended June 30, 2025. In March and June of 2025, the Board of Directors (Board) approved regular quarterly dividends of $0.35 per share.

For the six months ended June 30, 2025, we repurchased 178,732 shares of our common stock at an average price per share of $40.14 under our share repurchase program. See Part II - Item 8, Note 12 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024 for more information. As of June 30, 2025, $69.2 million remained authorized for future share repurchases under the share repurchase program.

Horace Mann Educators Corporation 59 Second Quarter 2025 Form 10-Q

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The following table summarizes our debt obligations.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **($ in millions)** | **Interest<br>Rates** | **Final<br>Maturity** | **June 30, 2025** | **December 31, 2024** |  |
| **($ in millions)** | **Interest<br>Rates** | **Final<br>Maturity** | **June 30, 2025** | **December 31, 2024** | Short-term debt |
| &nbsp;&nbsp;&nbsp;Revolving Credit Facility | Variable | 2026 | $— | $— |  |
| Long-term debt<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;7.25% 2023 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $0.3 and $0.4 and unamortized debt issuance costs of $2.1 and $2.3 | 7.25% | 2028 | 297.6 | 297.3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4.50% 2015 Senior Notes, Aggregate principal <br>amount of $250.0 less unaccrued discount of<br>$0.0 and $0.1 and unamortized <br>debt issuance costs of $0.1 and $0.2 | 4.50% | 2025 | 249.9 | 249.7 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total |  |  | $547.5 | $547.0 |  |

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<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>We designate debt obligations as "long-term" based on maturity date at issuance.

On September 15, 2023, we issued $300.0 million aggregate principal amount of 7.25% senior notes (2023 Senior Notes), which will mature on September 15, 2028, issued at a discount resulting in an effective yield of 7.29%. Interest on the 2023 Senior Notes is payable semi-annually at a rate of 7.25%. The 2023 Senior Notes are redeemable in whole or in part, at any time, at our option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 45 basis points, plus, in either of the above cases, accrued interest to the date of redemption. The 2023 Senior Notes are traded in the open market (HMN 7.25).

As of June 30, 2025, we had $325.0 million available on the Revolving Credit Facility, with an interest rate based on Term SOFR plus 115 basis points plus the applicable benchmark adjustment spread. The Revolving Credit Facility expires on May 19, 2030. The unused portion of the Revolving Credit Facility is subject to a variable commitment fee, which was 0.15% on an annual basis as of June 30, 2025.

As of June 30, 2025, we had outstanding $250.0 million aggregate principal amount of 4.50% senior notes (2015 Senior Notes), which will mature on December 1, 2025, issued at a discount resulting in an effective yield of 4.53%. Interest on the 2015 Senior Notes is payable semi-annually at a rate of 4.50%. Detailed information regarding the redemption terms of the 2015 Senior Notes is contained in the Part II - Item 8, Note 10 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2024. The 2015 Senior Notes are traded in the open market (HMN 4.50).

As of June 30, 2025, we had no borrowings outstanding with FHLB. The Board has authorized a maximum amount equal to 15% of net aggregate admitted assets less separate account assets of the insurance subsidiaries for FHLB borrowing and funding agreements which is below our maximum FHLB borrowing capacity.

We had no obligation for securities sold under reverse repurchase agreements at June 30, 2025 compared to $12.0 million as of December 31, 2024.

To provide additional capital management flexibility, we filed a "universal shelf" registration statement on Form S-3 with the Securities and Exchange Commission (SEC) on March 8, 2024. The registration statement, which registered the offer and sale from time to time of an indeterminate amount of various securities, which may include debt securities, common stock, preferred stock, depositary shares, warrants, delayed delivery contracts and/or units that include any of these securities, was automatically effective on March 8, 2024. Unless withdrawn by us earlier, this registration statement will remain effective through March 8, 2027. No securities associated with the registration statement have been issued at the time of issuance of this Quarterly Report on Form 10-Q.

On March 13, 2018, we filed a "shelf" registration statement on Form S-4 with the SEC which became effective on May 2, 2018. Under this registration statement, we may from time to time offer and issue up to 5,000,000 shares of our common stock in connection with future acquisitions of other businesses, assets or securities. Unless withdrawn by us, this registration statement will remain effective indefinitely. No securities associated with the registration statement have been issued at the time of issuance of this Quarterly Report on Form 10-Q.

Horace Mann Educators Corporation 60 Second Quarter 2025 Form 10-Q

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*Financial Ratings*

Our principal insurance subsidiaries are rated by A.M. Best Company, Inc. (A.M. Best), Fitch, Moody's, and S&P. These rating agencies have also assigned ratings to our Senior Notes. The ratings that are assigned by these agencies, which are subject to change, can impact, among other things, our access to sources of capital, cost of capital, and competitive position. These ratings are not a recommendation to buy or hold any of our securities.

All four agencies currently have assigned the same insurance financial strength ratings to our Property & Casualty and Life insurance subsidiaries. Only A.M. Best currently rates our Supplemental & Group Benefits subsidiaries, each of which is rated at the same level as our Property & Casualty and Life & Retirement subsidiaries. Assigned ratings and respective affirmation/review dates as of July 31, 2025 were as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Insurance Financial** | **Insurance Financial** | | | **Affirmed/** |
| | **Strength Ratings (Outlook)** | **Strength Ratings (Outlook)** | **Debt Ratings (Outlook)** | **Debt Ratings (Outlook)** | **Reviewed** |
| A.M. Best |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;HMEC (parent company) | N.A. |  | bbb | (stable) | 8/22/2024 |
| &nbsp;&nbsp;&nbsp;HMEC's Life & Retirement subsidiaries | A | (stable) | N.A. |  | 8/22/2024 |
| &nbsp;&nbsp;&nbsp;HMEC's Property & Casualty subsidiaries | A | (stable) | N.A. |  | 8/22/2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;HMEC's Supplemental & Group Benefits <br>subsidiaries |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Madison National Life Insurance Company | A | (stable) | N.A. |  | 8/22/2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;National Teachers Associates Life <br>Insurance Company | A | (stable) | N.A. |  | 8/22/2024 |
| Fitch |  |  |  |  |  |
| &nbsp;&nbsp;HMEC (parent company) |  |  | BBB | (stable) | 8/29/2024 |
| &nbsp;&nbsp;HMEC's Life Group | A | (stable) |  |  | 8/29/2024 |
| &nbsp;&nbsp;HMEC's P&C Group | A | (stable) |  |  | 8/29/2024 |
| Moody's |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;HMEC (parent company) |  |  | Baa2 | (stable) | 3/26/2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;HMEC's Life Group | A2 | (stable) |  |  | 3/26/2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;HMEC's P&C Group | A2 | (stable) |  |  | 3/26/2025 |
| S&P | A | (stable) | BBB | (stable) | 1/27/2025 |

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**Reinsurance Programs**

There have been no material changes in our reinsurance programs for our Property & Casualty, Life & Retirement and Supplemental & Group Benefits segments from that disclosed in Part I - Item 1, Reporting Segments in our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 3. I Quantitative and Qualitative Disclosures about Market Risk

Market value risk, our primary market risk exposure, is the risk that our invested assets will decrease in value. This decrease in value may be due to (1) a change in the yields realized on our assets and prevailing market yields for similar assets, (2) an unfavorable change in the liquidity of an investment, (3) an unfavorable change in the financial prospects of the issuer of an investment, or (4) a downgrade in the credit rating of the issuer of an investment. Also see Consolidated Results of Operations in Part I - Item 2 of this Quarterly Report on Form 10-Q regarding net investment losses.

Significant changes in interest rates expose us to the risk of experiencing losses or earning a reduced level of income based on the difference between the interest rates earned on our investments and the credited interest rates on our insurance and investment contract liabilities. Also see Consolidated Results of Operations in Part I - Item 2 of this Quarterly Report on Form 10-Q regarding interest credited to policyholders.

We seek to manage our market value risk by coordinating the projected cash inflows of assets with the projected cash outflows of liabilities. For all of our assets and liabilities, we seek to maintain reasonable durations, consistent with the maximization of income without sacrificing investment quality, while providing for liquidity

Horace Mann Educators Corporation 61 Second Quarter 2025 Form 10-Q

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and diversification. The investment risk associated with variable annuity deposits and the underlying mutual funds is assumed by those contractholders, and not by us. Certain fees that we earn from variable annuity deposits are based on the market value of the funds deposited.

More detailed descriptions of our exposure to market value risks and the management of those risks is contained in Part II - Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 4. I Controls and Procedures

**Management's Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 as amended (Exchange Act), as of June 30, 2025. Based on this evaluation, the chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us (including our consolidated subsidiaries) that is required to be included in our periodic SEC filings. No material weaknesses in our disclosure controls and procedures were identified in the evaluation and therefore, no corrective actions were taken. There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Horace Mann Educators Corporation 62 Second Quarter 2025 Form 10-Q

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**PART II: OTHER INFORMATION**

ITEM 1. I Legal Proceedings

For a description of noteworthy litigation, see Part I - Item 1, Note 10 of the Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

ITEM 1A. I Risk Factors

At the time of issuance of this Quarterly Report on Form 10-Q, we believe there are no material changes from the risk factors as previously disclosed in Part I - Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 2. I Unregistered Sales of Equity Securities and Use of Proceeds

**Issuer Purchases of Equity Securities**

On May 13, 2025, our Board of Directors authorized a share repurchase program allowing repurchases of up to $50 million (i.e., the 2025 Program) to begin following the completion of the current $50 million repurchase plan which was authorized on May 25, 2022 (i.e., the 2022 Program). Both Programs authorize the repurchase of our common shares in open market or privately negotiated transactions, from time to time, depending on market conditions. The Programs do not have expiration dates and may be limited or terminated at any time without notice. During the three months ended June 30, 2025, we repurchased shares under the 2022 Program as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Period** | **Total Number<br>of Shares<br>Purchased** | **Average Price<br>Paid per Share** | **Total Number of Shares Purchased<br>under the Program** | **Approximate Dollar Value<br> of Shares that may yet be<br>Purchased under the Program** | **Approximate Dollar Value<br> of Shares that may yet be<br>Purchased under the Program** |
| April 1 - 30 | 175192 | $40.14 | 175192 | $19.2 | million |
| May 1 - 31 | 300 | 40.02 | 300 | $69.2 | million |
| June 1 - 30 |  |  |  | $69.2 | million |
| &nbsp;&nbsp;&nbsp;Total | 175492 | $40.14 | 175492 | $69.2 | million |

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ITEM 5. I Other Information

Securities Trading Plans of Executive Officers and Directors

Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables prearranged transactions in Company securities in a manner that avoids concerns about initiating transactions at a future date while possibly in possession of material nonpublic information. Our Insider Trading Policy permits our executive officers and directors to enter into trading plans designed to comply with Rule 10b5-1.

During the three months ended June 30, 2025, no director or officer of the Company who is required to file reports under Section 16 of the Exchange Act adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Horace Mann Educators Corporation 63 Second Quarter 2025 Form 10-Q

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ITEM 6. I Exhibits

The following items are filed as Exhibits. Management contracts and compensatory plans are indicated by an asterisk (\*).

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| | |
|:---|:---|
| Exhibit No. | Description |
| 10.1 | <u>[Fourth](fourthamendmenttocredita.htm)[Amendment to Credit Agreement dated as of](fourthamendmenttocredita.htm)[May](fourthamendmenttocredita.htm)[1](fourthamendmenttocredita.htm)[9](fourthamendmenttocredita.htm)[, 202](fourthamendmenttocredita.htm)[5](fourthamendmenttocredita.htm)[, among HMEC, as borrower, PNC Bank, National Association, as administrative agent, and certain lenders party thereto](fourthamendmenttocredita.htm)[.](fourthamendmenttocredita.htm)</u> |
| 31.1 | <u>[Certification by Marita Zuraitis, Chief Executive Officer of HMEC.](a63025ex311.htm)</u> |
| 31.2 | <u>[Certification by Ryan E. Greenier, Chief Financial Officer of HMEC.](a63025ex312.htm)</u> |
| 32.1 | <u>[Certification by Marita Zuraitis, Chief Executive Officer of HMEC.](a63025ex321.htm)</u> |
| 32.2 | <u>[Certification by Ryan E. Greenier, Chief Financial Officer of HMEC.](a63025ex322.htm)</u> |
| 99.1 | <u>[Glossary of Selected Terms.](q22025ex991-glossaryofterms.htm)</u> |
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | XBRL Taxonomy Extension Schema |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |

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Horace Mann Educators Corporation 64 Second Quarter 2025 Form 10-Q

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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| | | |
|:---|:---|:---|
| | | HORACE MANN EDUCATORS CORPORATION |
| | | (Registrant) |
| Date | August 6, 2025 | /s/ Marita Zuraitis  |
|  |  | Marita Zuraitis |
|  |  | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer |
| Date | August 6, 2025 | /s/ Ryan E. Greenier |
|  |  | Ryan E. Greenier |
|  |  | &nbsp;&nbsp;&nbsp;Executive Vice President and |
|  |  | &nbsp;&nbsp;&nbsp;Chief Financial Officer |
| Date | August 6, 2025 | /s/ Maureen Temchuk |
|  |  | Maureen Temchuk  |
|  |  | &nbsp;&nbsp;&nbsp;Vice President, Controller and |
|  |  | &nbsp;&nbsp;&nbsp;Chief Accounting Officer |

---

Horace Mann Educators Corporation 65 Second Quarter 2025 Form 10-Q

## Exhibit 10.1

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EXECUTION VERSION 781363802 1 FOURTH AMENDMENT TO CREDIT AGREEMENT THIS FOURTH AMENDMENT (the "Amendment") to that certain CREDIT AGREEMENT, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, before giving effect to this Amendment, the "Existing Credit Agreement"), among HORACE MANN EDUCATORS CORPORATION, a Delaware corporation (the "Borrower"), the Lenders party thereto (the "Lenders"), and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent (the "Administrative Agent") is dated as of May 19, 2025. WHEREAS, the Borrower desires that the Existing Credit Agreement be amended on the terms and conditions set forth in this Amendment; NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows: 1. AMENDMENT. The parties hereto agree that, effective as of the Fourth Amendment Effective Date (as defined below), the Existing Credit Agreement is hereby amended (the Existing Credit Agreement, as amended by this Amendment, the "Credit Agreement") to (i) delete the red stricken text (indicated textually in the same manner as the following example: stricken red text) in the conformed copy of the Credit Agreement attached as Annex A hereto and (ii) add the blue double-underlined text (indicated textually in the same manner as the following example: (underlined blue text) in the conformed copy of the Credit Agreement attached as Annex A hereto. 2. CONDITIONS PRECEDENT. This Amendment shall become effective as of the date each of the following conditions have been met or waived in accordance with the terms of the Credit Agreement (the "Fourth Amendment Effective Date"): (a) the Administrative Agent shall have received this Amendment duly executed by the Borrower, the Administrative Agent and each Lender; (b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Fourth Amendment Effective Date) of counsel for the Borrower, covering such customary matters relating to the Borrower, this Amendment and the Credit Agreement as the Administrative Agent shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion. (c) The Administrative Agent shall have received a customary closing certificate from a secretary, assistant secretary or similar officer or authorized representative of the Borrower certifying as to (i) resolutions duly adopted by the board of directors of the Borrower authorizing the execution and delivery of this Amendment and performance of the Credit Agreement, as applicable, (ii) the accuracy and completeness of copies of the certificate of incorporation of the Borrower certified by the Delaware Secretary of State and copies of the by-laws of the Borrower and that such documents or agreements have not been amended (except as otherwise attached to such certificate and certified therein as being the only amendments thereto as of such date), (iii) incumbency and specimen signatures of each officer, director or authorized representative

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2 781363802 executing this Amendment and any other Loan Document on behalf of the Borrower and (iv) the good standing of the Borrower from the Secretary of State (or similar official) of the state of Delaware. (d) The Administrative Agent shall have received a certificate, dated the Fourth Amendment Effective Date and signed by the President, a Vice President or an Executive Officer of the Borrower, certifying (i) as to the Borrower's compliance with the representations and warranties set forth in Sections 3.1 and 3.2 of this Amendment and (b) that there has not been a Material Adverse Effect since December 31, 2024. (e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Fourth Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. (f) All consents and regulatory approvals and licenses required to effectuate the transactions contemplated hereby shall have been obtained and there shall not be any legal or regulatory prohibitions or restrictions on the transactions contemplated hereby. 3. REPRESENTATIONS AND WARRANTIES. After giving effect to this Amendment, the following statements by the Borrower shall be true and correct (and the Borrower, by its execution of this Amendment, hereby represents and warrants to the Administrative Agent and each Lender that such statements are true and correct as at such times): 3.1 the representations and warranties of the Borrower set forth in Article III of the Credit Agreement are true and correct (i) in the case of the representations and warranties qualified or modified as to materiality in the text thereof, in all respects and (ii) otherwise, in all material respects, in each case on and as of the Fourth Amendment Effective Date, except in the case of any such representation and warranty that expressly relates to an earlier date, in which case such representation and warranty shall be so true and correct, or true and correct in all material respects, as applicable, on and as of such earlier date; 3.2 no Default has occurred and is continuing; 3.3 the Borrower has the full power to enter into, execute, deliver and carry out this Amendment and the execution and delivery by the Borrower of this Amendment and the performance by the Borrower of its obligations under the Credit Agreement are within its corporate powers, have been duly authorized by all necessary corporate action (including, without limitation, shareholder approval, if required) and do not contravene or conflict with the Borrower's articles of incorporation or bylaws; 3.4 each of the Borrower and its Subsidiaries has received all material governmental and other consents and approvals (if any shall be required) necessary for the execution, delivery and performance of this Amendment, and such execution, delivery and performance do not and will not contravene or conflict with, or create a Lien or right of termination or acceleration under, any Requirement of Law or Contractual Obligation binding upon the Borrower or such Subsidiaries; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 781363802 3.5 this Amendment has been duly and validly executed and delivered by the Borrower and this Amendment and the Credit Agreement constitute the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except to the extent that enforceability of the Credit Agreement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforceability of creditors' rights generally or limiting the right of specific performance and general concepts of equity. 4. MISCELLANEOUS. 4.1 Continuing Effectiveness, etc. This Amendment shall be deemed to be an amendment to the Existing Credit Agreement, and the Existing Credit Agreement, as amended hereby, shall remain in full force and effect and is hereby ratified, approved and confirmed in each and every respect. On and after the Fourth Amendment Effective Date, all references to the "Agreement" or any reference to the "Credit Agreement" in the Loan Documents or in any other document, instrument, agreement or writing shall be deemed to refer to the Existing Credit Agreement, as amended hereby. Each other Loan Document is hereby ratified, approved and confirmed in each and every respect. This Amendment is a Loan Document. 4.2 Headings. The various headings of this Amendment used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment. 4.3 Execution in Counterparts. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic imaging means (e.g. "pdf" or "tif") shall be effective as delivery of a manually executed counterpart of this Amendment. 4.4 Incorporation of Credit Agreement Provisions. The provisions of Sections 1.03, 9.03, 9.06, 9.07, 9.09, and 9.10 of the Credit Agreement are incorporated herein by reference as if fully set forth herein, mutatis mutandis. [Remainder of page intentionally left blank]

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S-4 Fourth Amendment to Credit Agreement 781363802 BMO BANK N.A., as a Lender By:___________________________________ Name: Benjamin Mlot Title: Managing Director, Corporate Banking

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&nbsp;&nbsp;&nbsp;&nbsp;S-5 Fourth Amendment to Credit Agreement JPMORGAN CHASE BANK, N.A., as a Lender By:___________________________________ Name: Milena Kolev Title: Executive Director

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COMERICA BANK, as a Lender 781366594 19619932 S-8 Credit Agreement By:__________________________________ Name: Lauryn VanLoon Title: Relationship Manager

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annex A Conformed Credit Agreement [See Attached]

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CONFORMED COPY First Amendment dated as of November 20, 2019 Second Amendment dated as of July 12, 2021 Third Amendment dated as of March 20, 2024 ANNEX A 781366594 19619932 CREDIT AGREEMENT dated as of June 21, 2019 among HORACE MANN EDUCATORS CORPORATION The Lenders Party Hereto and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent ___________________________ PNC CAPITAL MARKETS LLC, as Sole Bookrunner and Joint Lead Arranger BMO CAPITAL MARKETS CORP., as Joint Lead Arranger JPMORGAN CHASE BANK, N.A., as Joint Lead Arranger BMO CAPITAL MARKETS CORP. and JPMORGAN CHASE BANK, N.A., as Syndication AgentAgents KEYBANK NATIONAL ASSOCIATION and THE NORTHERN TRUST COMPANY, as Documentation AgentAgents CUSIP: 440329AF7

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**TABLE OF CONTENTS** Page ARTICLE I Definitions 1 SECTION 1.01. Defined Terms 1 SECTION 1.02. Classification of Loans and Borrowings 21 SECTION 1.03. Terms Generally 21 SECTION 1.04. Accounting Terms; GAAP 21 SECTION 1.05. Letter of Credit Amounts 22 SECTION 1.06. Divisions 22 ARTICLE II The Credits 22 SECTION 2.01. Commitments 22 SECTION 2.02. Loans and Borrowings 22 SECTION 2.03. Requests for Borrowings 23 SECTION 2.04. Funding of Borrowings 24 SECTION 2.05. Interest Elections 24 SECTION 2.06. Termination and Reduction of Commitments 25 SECTION 2.07. Repayment of Loans; Evidence of Debt 26 SECTION 2.08. Prepayment of Loans 26 SECTION 2.09. Fees 27 SECTION 2.10. Interest 27 SECTION 2.11. Alternate Rate of Interest 28 SECTION 2.12. Increased Costs 30 SECTION 2.13. Break Funding Payments 31 SECTION 2.14. Taxes 31 SECTION 2.15. Payments Generally; Pro Rata Treatment; Sharing of Set-offs 36 SECTION 2.16. Mitigation Obligations; Replacement of Lenders 37 SECTION 2.17. Defaulting Lenders 38 SECTION 2.18. Increase of Commitments 40 SECTION 2.19. Letters of Credit 41 ARTICLE III Representations and Warranties 48 SECTION 3.01. Due Organization, Authorization, Etc 48 781366594 19619932 -i-

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**TABLE OF CONTENTS** (continued) Page SECTION 3.02. Statutory Financial Statements 49 SECTION 3.03. GAAP Financial Statements 50 SECTION 3.04. Litigation and Contingent Liabilities 51 SECTION 3.05. Investment Company Act 51 SECTION 3.06. Regulations T, U and X 51 SECTION 3.07. Proceeds 51 SECTION 3.08. Insurance 51 SECTION 3.09. Accuracy of Information 51 SECTION 3.10. Subsidiaries 52 SECTION 3.11. Insurance Licenses 52 SECTION 3.12. Taxes 52 SECTION 3.13. Compliance with Laws 52 SECTION 3.14. No Default 52 SECTION 3.15. Ownership of Property; Liens 53 SECTION 3.16. Anti-Terrorism Laws and Sanctions 53 SECTION 3.17. EEA Financial Institutions 53 SECTION 3.18. Certificate of Beneficial Ownership 53 SECTION 3.19. Plan Assets; Prohibited Transactions 53 ARTICLE IV Conditions 53 SECTION 4.01. Effective Date 53 SECTION 4.02. Each Credit Event 55 ARTICLE V Affirmative Covenants 55 SECTION 5.01. Reports, Certificates and Other Information 55 SECTION 5.02. Corporate Existence; Foreign Qualification 59 SECTION 5.03. Books, Records and Inspections 59 SECTION 5.04. Insurance 59 SECTION 5.05. Taxes and Liabilities 59 SECTION 5.06. Compliance with Laws 60 SECTION 5.07. Conduct of Business 60 SECTION 5.08. Maintenance of Properties 60 781366594 19619932 -ii-

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**TABLE OF CONTENTS** (continued) Page SECTION 5.09. Use of Proceeds 60 SECTION 5.10. Accuracy Of Information 60 SECTION 5.11. Anti-Terrorism Laws; International Trade Law Compliance 60 ARTICLE VI Negative Covenants 61 SECTION 6.01. Consolidated Debt to Total Capitalization 61 SECTION 6.02. Net Worth 61 SECTION 6.03. Minimum Risk Based Capital 61 SECTION 6.04. Mergers, Consolidations and Sales 61 SECTION 6.05. Regulations T, U and X 61 SECTION 6.06. Restrictive Agreements 62 SECTION 6.07. Transactions with Affiliates 62 SECTION 6.08. Liens 62 SECTION 6.09. Subsidiary Debt 63 SECTION 6.10. Securities Lending 63 ARTICLE VII Events of Default 63 ARTICLE VIII The Administrative Agent 67 ARTICLE IX Miscellaneous 69 SECTION 9.01. Notices; Electronic Communication 69 SECTION 9.02. Waivers; Amendments 70 SECTION 9.03. Expenses; Indemnity; Damage Waiver 71 SECTION 9.04. Successors and Assigns 72 SECTION 9.05. Survival 76 SECTION 9.06. Counterparts; Integration; Effectiveness 76 SECTION 9.07. Severability 77 SECTION 9.08. Right of Setoff 77 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process 77 SECTION 9.10. WAIVER OF JURY TRIAL 78 SECTION 9.11. Headings 78 SECTION 9.12. Confidentiality 78 SECTION 9.13. Interest Rate Limitation 79 781366594 19619932 -iii-

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**TABLE OF CONTENTS** (continued) Page SECTION 9.14. USA PATRIOT Act 80 SECTION 9.15. No Advisory or Fiduciary Responsibility 80 SECTION 9.16. Acknowledgment and Consent to Bail-In of EEA Financial Institutions 80 SECTION 9.17. Acknowledgement Regarding Any Supported QFCs 81 Section 9.18 Certain ERISA Matters 82 781366594 19619932 -iv-

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SCHEDULES: Schedule 1.1(B) Notice Information Schedule 2.01 Commitments Schedule 3.01 Jurisdictions Schedule 3.02(a) SAP Exceptions Schedule 3.04 Litigation Schedule 3.10 Subsidiaries Schedule 3.11 Insurance Licenses Schedule 6.06 Restrictive Agreements EXHIBITS: Exhibit A Form of Assignment and Assumption Exhibit B Compliance Certificate Exhibit C-1 U.S. Tax Certificate (For Non-U.S. Lenders that are not Partnerships for U.S. Federal Income Tax Purposes) Exhibit C-2 U.S. Tax Certificate (For Non-U.S. Lenders that are Partnerships for U.S. Federal Income Tax Purposes) Exhibit C-3 U.S. Tax Certificate (For Non-U.S. Participants that are not Partnerships for U.S. Federal Income Tax Purposes) Exhibit C-4 U.S. Tax Certificate (For Non-U.S. Participants that are Partnerships for U.S. Federal Income Tax Purposes) 781366594 19619932

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CREDIT AGREEMENT CREDIT AGREEMENT, dated as of June 21, 2019, among HORACE MANN EDUCATORS CORPORATION, a Delaware corporation (the "Borrower"), the LENDERS party hereto, and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent (the "Administrative Agent"). The Borrower has requested the Lenders to provide a revolving credit facility to the Borrower in an aggregate principal amount not to exceed $325,000,000. In consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, the parties hereto covenant and agree as follows. ARTICLE I DEFINITIONS SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below: "ABR", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. "Act" has the meaning assigned to such term in Section 9.14. "Administrative Agent" has the meaning assigned to such term in the Preamble. "Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent. "Affiliate" means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. "Agreement" means this Credit Agreement as from time to time amended, modified, supplemented, restated, refunded or renewed and in effect. "Alternate Base Rate" means, for any day, a fluctuating per annum rate of interest equal to the highest of (i) the Overnight Bank Funding Rate, plus 0.5%, (ii) the Prime Rate, and (iii) the Daily LIBOR Rate,Simple SOFR, plus 1.0%. Any change in the Alternate Base Rate (or any component thereof) shall take effect at the opening of business on the day such change occurs. If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.11 hereof, then the Alternate Base Rate shall be the greater of clause (a) and (b) above and shall be determined without reference to clause (c) above. For the avoidance of doubt, if the Alternate Base Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 781366594 19619932

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781366594 19619932 2 Commitment Fee Rate: 0.125% 1.000% 0.125% Index Debt Ratings (S&P/Moody's): Category 1 A-/A3 or better Category 3 BBB/Baa2 0.250% 0% 1.150% ABR Spread: 0.15% 0.875% "Annual Statement" means the annual statutory financial statement of any Insurance Subsidiary required to be filed with the insurance commissioner (or similar authority) of its jurisdiction of incorporation, which statement shall be in the form required by such Insurance Subsidiary's jurisdiction of incorporation or, if no specific form is so required, in the form of financial statements permitted by such insurance commissioner (or such similar authority) to be used for filing annual statutory financial statements and shall contain the type of information permitted by such insurance commissioner (or such similar authority) to be disclosed therein, together with all exhibits or schedules filed therewith. "Anti-Corruption Laws" means the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010, and any other similar anti-corruption laws or regulations administered or enforced in any jurisdiction in which the Borrower or any of its Subsidiaries conduct business. "Anti-Terrorism Law" means any law in force or hereinafter enacted related to terrorism, money laundering, or Sanctions, including Executive Order No. 13224, the USA PATRIOT Act, the International Emergency Economic Powers Act, 50 U.S.C. 1701, et. seq., the Trading with the Enemy Act, 50 U.S.C. App. 1, et. seq., 18 U.S.C. § 2332d, and 18 U.S.C. § 2339B, and any regulations or directives promulgated under these provisions. "Applicable Percentage" means, with respect to any Lender, the percentage of the total Commitments represented by such Lender's Commitment. If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Commitments most recently in effect, giving effect to any assignments. "Applicable Rate" means, for any day, with respect to any ABR Loan or EurodollarTerm SOFR Rate Loan, or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption "ABR Spread", "EurodollarTerm SOFR Spread" or "Commitment Fee Rate", as the case may be, based upon the ratings by S&P and Moody's, respectively, applicable on such date to the Index Debt: Category 4 BBB-/Baa3 0.10% 0.375% EurodollarTerm SOFR Spread: 1.250% 0.175% Category 2 BBB+/Baa1

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781366594 19619932 3 0.50% 1.375% 0.25%Category 5 less than BBB-/Baa3 For purposes of the foregoing, (i) if either Moody's or S&P shall not have in effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last sentence of this definition), then such rating agency shall be deemed to have established a rating in Category 5; (ii) if the ratings established or deemed to have been established by Moody's and S&P for the Index Debt shall differ by one rating, the Applicable Rate shall be based on the higher of the two credit ratings; (iii) if the ratings established or deemed to have been established by Moody's and S&P for the Index Debt shall differ by two or more ratings, the Applicable Rate shall be one rating level below the higher of such credit ratings; and (iv) if the ratings established or deemed to have been established by Moody's and S&P for the Index Debt shall be changed (other than as a result of a change in the rating system of Moody's or S&P), such change shall be effective as of the date on which it is first announced by the applicable rating agency, irrespective of when notice of such change shall have been furnished by the Borrower to the Agent and the Lenders pursuant to Section 5.01 or otherwise. Each change in the Applicable Rate shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the rating system of Moody's or S&P shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Rate shall be determined by reference to the rating most recently in effect from such rating agency prior to such change or cessation. "Approved Fund" means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. "Arrangers" means PNC Capital Markets LLC and JPMorgan Chase Bank, N.A. in their capacities as joint lead arrangers. "Assignment and Assumption" means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent. "Attributable Debt" means, on any date, (a) in respect of any Capitalized Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.

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"Augmenting Lender" has the meaning assigned to such term in Section 2.18. "Availability Period" means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Commitments. "Bail-In Action" means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution. "Bail-In Legislation" means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. "Bankruptcy Event" means, with respect to any Person, such Person becomes the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, provided, further, that such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person. "Benchmark Replacement" means as is specified in Section 2.11(d). "Beneficial Owner" means, with respect to any U.S. federal withholding Tax, the beneficial owner, for U.S. federal income tax purposes, to whom such Tax relates. "Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230. "Benefit Plan" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan". "BHC Act Affiliate" of a party means an "affiliate' (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party. "Board" means the Board of Governors of the Federal Reserve System of the United States of America. 781366594 19619932 4

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"Borrower" has the meaning assigned to such term in the Preamble. "Borrowing" means Loans of the same Type, made, converted or continued on the same date and, in the case of EurodollarTerm SOFR Rate Loans, as to which a single Interest Period is in effect. "Borrowing Request" means a request by the Borrower for a Borrowing in accordance with Section 2.03. "Business Day" means any day that is not a Saturday, Sunday or other day on which commercial banks in Pittsburgh, Pennsylvania or New York, New York are authorized or required by law to remain closed; provided that, for purposes of any direct or indirect calculation or determination of, or when used in connection with a Eurodollar Loanany interest rate settings, fundings, disbursements, settlements, payments, or other dealings with respect to SOFR, the term "Business Day" shall also exclude any day on which banks are not open for dealings in dollar deposits in the London interbank marketmeans any such day that is also a U.S. Government Securities Business Day. "Capitalized Lease" shall meanmeans, as to any Person, any lease which is or should be capitalized on the balance sheet in accordance with GAAP (subject to Section 1.04), together with any other lease which is in substance a financing lease, including, without limitation, any lease under which (a) such Person has or will have an option to purchase the property subject thereto at a nominal amount or an amount less than a reasonable estimate of the fair market value of such property as of the date the lease is entered into or (b) the term of the lease approximates or exceeds the expected useful life of the property leased thereunder. "Certificate of Beneficial Ownership" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation. "Change in Control" shall be deemed to have occurred if (a) there shall be consummated (i) any consolidation or merger of the Borrower in which the Borrower is not the continuing or surviving corporation, or pursuant to which shares of the Borrower's common stock would be converted into cash, securities or other property, other than a merger of the Borrower in which no Borrower shareholder's ownership percentage in the surviving corporation immediately after the merger is less than such shareholder's ownership percentage in the Borrower immediately prior to such merger by ten percent (10%) or more, or (ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Borrower; (b) the shareholders of the Borrower approve any plan or proposal for the liquidation or dissolution of the Borrower; (c) any "person" or "group" as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act"), is or becomes, directly or indirectly, the "beneficial owner," as defined in Rule 13d-3 under the Exchange Act, of securities of the Borrower that represent 51% or more of the combined voting power of the Borrower's then outstanding securities; or (d) a majority of the members of the Borrower's Board of Directors are persons who are then serving on the Board of Directors without having been elected by the Board of Directors or having been nominated by the Borrower for election by its shareholders. 781366594 19619932 5

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"Change in Law" means the occurrence after the date of this Agreement (or, with respect to any Lender, such later date on which such Lender becomes a party to this Agreement) of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty (including any rules or regulations issued under or implementing any existing law), (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) compliance by any Lender or Issuing Bank (or, for purposes of Section 2.16(b), by any lending office of such Lender or by such Lender's or Issuing Bank's holding company, if any) with any request, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented. "Code" means the Internal Revenue Code of 1986, as amended. "Commitment" means, with respect to each Lender, the commitment of such Lender to make Loans, expressed as an amount representing the maximum aggregate amount of such Lender's Revolving Credit Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.06, (b) increased from time to time pursuant to Section 2.18 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender's Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as applicable. As of the Second Amendment Effective Date, the aggregate amount of the Lenders' Commitments is $325,000,000. "Compliance Certificate" means a certificate substantially in the form of Exhibit B, but with such changes as the Administrative Agent may from time to time request for purposes of monitoring the Borrower's compliance herewith. "Conforming Changes" means, with respect to the Term SOFR Rate or any Benchmark Replacement in relation thereto, any technical, administrative or operational changes (including changes to the definition of "Alternate Base Rate," the definition of "Business Day," the definition of "Interest Period," the definition of "U.S. Government Securities Business Day," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of the Term SOFR Rate or such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of the Term SOFR Rate or the 781366594 19619932 6

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Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). "Connection Income Taxes" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes. "Consolidated Debt" means the consolidated Debt of the Borrower and its consolidated Subsidiaries, including without limitation the principal amount of the Loans, but excluding FHLB Operating Debt in an aggregate amount at any time outstanding up to the Threshold Amount applicable to the relevant Subsidiary less the aggregate market value of securities subject to Securities Lending at such time; provided that any amount of FHLB Operating Debt of any Subsidiary at any time outstanding in excess of the applicable Threshold Amount shall not be excluded from Consolidated Debt. "Contingent Liability" means any agreement, undertaking or arrangement by which any Person (outside the ordinary course of business) guarantees, endorses, acts as surety for or otherwise becomes or is contingently liable for (by direct or indirect agreement, contingent or otherwise, to provide funds for payment by, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the debt, obligation or other liability of any other Person (other than by endorsements of instruments in the course of collection), or for the payment of dividends or other distributions upon the shares of any other Person or undertakes or agrees (contingently or otherwise) to purchase, repurchase, or otherwise acquire or become responsible for any Debt, obligation or liability or any security therefor, or to provide funds for the payment or discharge thereof (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, or other financial condition of any other Person, or to make payment or transfer property to any other Person other than for fair value received; provided, however, that obligations of each of the Insurance Subsidiaries under insurance policies, annuities, or surety contracts issued by it or to which it is a party, reinsurance treaties, certificates or other agreements of each of the Insurance Subsidiaries which are entered into in the ordinary course of business (including security posted by each of the Insurance Subsidiaries in the ordinary course of its business to secure obligations thereunder) shall not be deemed to be Contingent Liabilities of such Insurance Subsidiary or the Borrower for the purposes of this Agreement. The amount of any Person's obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed to be the outstanding principal amount (or maximum permitted principal amount, if larger) of the debt, obligation or other liability guaranteed or supported thereby. "Contractual Obligation" means, relative to any Person, any obligation, commitment or undertaking under any agreement or other instrument to which such Person is a party or by which it or any of its property is bound or subject. "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to 781366594 19619932 7

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exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto. "Controlled Group" means the Borrower and any corporation, trade or business that is, along with the Borrower, a member of a controlled group of corporations or a controlled group of trades or businesses as described in sections 414(b) and 414(c), respectively, of the Code or in section 4001 of ERISA. "Covered Entity" shall meanmeans (a) the Borrower and each of Borrower's Subsidiaries, and (b) each Person that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise. "Daily LIBOR Rate" shall mean, for any day, the rate per annum determined by the Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the LIBOR Reserve Percentage on such day. Notwithstanding the foregoing, if the Daily LIBOR Rate as determined above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement. "Daily Simple SOFR" means, for any day (a "SOFR Rate Day"), the interest rate per annum determined by the Administrative Agent (rounded upwards, at the Administrative Agent's discretion, to the nearest 1/100th of 1%) equal to SOFR for the day (the "SOFR Determination Date") that is 2 Business Days prior to (i) such SOFR Rate Day if such SOFR Rate Day is a Business Day or (ii) the Business Day immediately preceding such SOFR Rate Day if such SOFR Rate Day is not a Business Day, in each case, as such SOFR is published by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate) on the website of the Federal Reserve Bank of New York, at http://www.newyorkfed.org, or any successor source identified by the Federal Reserve Bank of New York or its successor administrator for the secured overnight financing rate from time to time. If Daily Simple SOFR as determined above would be less than the SOFR Floor, then Daily Simple SOFR shall be deemed to be the SOFR Floor. If SOFR for any SOFR Determination Date has not been published or replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the second Business Day immediately following such SOFR Determination Date, then SOFR for such SOFR Determination Date will be SOFR for the first Business Day preceding such SOFR Determination Date for which SOFR was published in accordance with the definition of "SOFR"; provided that SOFR determined pursuant to this sentence shall be used for purposes of calculating Daily Simple SOFR for no more than 3 consecutive SOFR Rate Days. If and when Daily Simple SOFR as determined above changes, any applicable rate of interest based on Daily Simple SOFR will change automatically without notice to the Borrower, effective on the date of any such change. "Debt" means, with respect to any Person, at any date, without duplication, (a) all obligations of such Person for borrowed money or in respect of loans or advances; (b) all 781366594 19619932 8

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obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (c) all obligations in respect of letters of credit which have been drawn but not reimbursed by the Person for whose account such letter of credit was issued, and bankers' acceptances issued for the account of such Person; (d) all obligations in respect of Capitalized Leases and Synthetic Lease Obligations of such Person; (e) all Hedging Obligations of such Person; (f) whether or not so included as liabilities in accordance with GAAP, all obligations of such Person to pay the deferred purchase price of property or services; (g) Debt of such Person secured by a Lien on property owned or being purchased by such Person (including Debt arising under conditional sales or other title retention agreements) whether or not such Debt is limited in recourse; (h) any Debt of another Person secured by a Lien on any assets of such first Person, whether or not such Debt is assumed by such first Person; (i) any Debt of a partnership in which such Person is a general partner; and (j) all Contingent Liabilities of such Person whether or not in connection with the foregoing. The amount of any net obligation under any Hedging Obligation on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable Debt in respect thereof as of such date. Notwithstanding anything to the contrary, Debt shall not include any Securities Lending. "Default" means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. "Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. "Defaulting Lender" means any Lender that (a) has failed, within two Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to the Administrative Agent, the Issuing Bank or any Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent in writing that such failure is the result of such Lender's good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Borrower or the Administrative Agent or any Lender in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender's good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by the Administrative Agent, any Issuing Bank or any Lender, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations as of the date of certification) to fund prospective Loans and participations in then outstanding Letters of Credit under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Credit Party's receipt of such certification in form and substance satisfactory to it and the Administrative Agent, or (d) has become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action. 781366594 19619932 9

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"Department" has the meaning assigned to such term in Section 3.02. "dollars" or "$" refers to lawful money of the United States of America. "EEA Financial Institution" means (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. "EEA Member Country" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway. "EEA Resolution Authority" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. "Effective Date" means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). "ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time and the rules and regulations promulgated thereunder. "EU Bail-In Legislation Schedule" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time. "Eurodollar", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bear interest at a rate determined by reference to the LIBO Rate. "Event of Default" has the meaning assigned to such term in Article VII. "Excluded Taxes" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.16(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.16, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such 781366594 19619932 10

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Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with Section 2.14(f) and (d) any U.S. federal withholding Taxes imposed under FATCA. "Executive Officer" means, as to any Person, the president, the chief financial officer, the chief executive officer, the vice president – corporate finance, the general counsel, the treasurer or the secretary. "FATCA" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 147(b)(1) of the Code. "Federal Funds Effective Rate" means, for any day, the rate per annum announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the "Federal Funds Effective Rate" as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the "Federal Funds Effective Rate" for such day shall be the Federal Funds Effective Rate for the last day on which such rate was announced. "Fee Letters" means, collectively, the PNC Fee Letter and the JPMCB Fee Letter. "FHLB Liquidity Debt" means any transaction or series of transactions pursuant to which any Insurance Subsidiary makes a pledge or assignment of marketable securities as collateral to the Federal Home Loan Bank in exchange for cash, the proceeds of which are to be used for anything other than to purchase marketable securities. "FHLB Operating Debt" means any transaction or series of transactions pursuant to which any Insurance Subsidiary makes a pledge or assignment of marketable securities as collateral to the Federal Home Loan Bank in exchange for cash, the proceeds of which are to be used to purchase marketable securities. "Fiscal Quarter" means any quarter of a Fiscal Year. "Fiscal Year" means any period of twelve consecutive calendar months ending on the last day of December. "GAAP" means generally accepted accounting principles in the United States of America. "Governmental Authority" means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising 781366594 19619932 11

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executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. "Hedging Obligations" means, with respect to any Person, the net liability of such Person under Swap Contracts. "Horace Mann Group" means the combined results of the following four property casualty insurers that entered into an intercompany reinsurance pooling agreement effective as of January 1, 2012 in which Horace Mann Insurance Company is the lead company: Horace Mann Insurance Company, Teachers Insurance Company, Horace Mann Property & Casualty Insurance Company, and Horace Mann Lloyds. "Indemnified Taxes" means (a) Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (b) to the extent not otherwise described in subsection (a), Other Taxes. "Indemnitee" has the meaning assigned to it in Section 9.03(b). "Index Debt" means senior, unsecured, long-term indebtedness for borrowed money of the Borrower that is not guaranteed by any other Person or subject to any other credit enhancement. "Ineligible Institution" has the meaning assigned to it in Section 9.04(b). "Information" has the meaning assigned to it in Section 9.12. "Insurance Code" means, with respect to any Insurance Subsidiary, the Insurance Code of such Insurance Subsidiary's state of domicile and any successor statute of similar import, together with the regulations thereunder, as amended or otherwise modified and in effect from time to time. References to sections of the Insurance Code shall be construed to also refer to successor sections. "Insurance Policies" means policies purchased from insurance companies by any of the Borrower or its Subsidiaries, for its own account to insure against its own liability and property loss (including, without limitation, casualty, liability and workers' compensation insurance), other than Reinsurance Agreements and Surplus Relief Reinsurance Agreements. "Insurance Subsidiary" means any Life Subsidiary or any P/C Subsidiary. "Interest Election Request" means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.05. "Interest Payment Date" means (a) with respect to any ABR Loan, the last day of each March, June, September and December and the Maturity Date and (b) with respect to any EurodollarTerm SOFR Rate Loan, the last day of the Interest Period applicable to the EurodollarTerm SOFR Borrowing of which such Loan is a part and, in the case of a EurodollarTerm SOFR Borrowing with an Interest Period of more than three months' duration, 781366594 19619932 12

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each day prior to the last day of such Interest Period that occurs at intervals of three months' duration after the first day of such Interest Period and the Maturity Date. "Interest Period" means with respect to any EurodollarTerm SOFR Borrowing, the period commencing on the date of such EurodollarTerm SOFR Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as the Borrower may elect; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a EurodollarTerm SOFR Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. "IRS" means the United States Internal Revenue Service. "Issuing Bank" means PNC Bank, National Association and any other Lender that agrees to act as an Issuing Bank, each in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.19(i). Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term "Issuing Bank" shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. Each reference herein to the "Issuing Bank" in connection with a Letter of Credit or other matter shall be deemed to be a reference to the relevant Issuing Bank with respect thereto. "JPMCB Fee Letter" means the letter agreement, dated as of May 21, 2019, between the Borrower and JPMorgan Chase Bank, N.A.. "LC Exposure" means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time, plus (b) the aggregate amount of all Reimbursement Obligations that have not yet been reimbursed by or on behalf of the Borrower at such time and (c) the aggregate amount of all all Letter of Credit Borrowings. The LC Exposure of any Lender at any time shall be its Applicable Percentage of the LC Exposure at such time. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Article 29(a) of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time) or Rule 3.13 or Rule 3.14 of the International Standby Practices, International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time) or similar terms of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be "outstanding" and "undrawn" in the amount so remaining available to be paid, and the obligations of the Borrower and each Lender shall remain in full force and effect until the Issuing 781366594 19619932 13

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Bank and the Lenders shall have no further obligations to make any payments or disbursements under any circumstances with respect to any Letter of Credit. "Lease Obligations" means, at any date, the rental commitments of any person under leases for real and/or personal property (including taxes, insurance, maintenance and similar expenses which any Person is obligated to pay under the terms of said leases) on such date, whether or not such obligations are reflected as liabilities or commitments on a balance sheet of such Person or in the notes thereto, excluding, however, obligations under Capitalized Leases. "Lenders" means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term "Lenders" includes the Issuing Banks. "Letter of Credit" means any letter of credit issued pursuant to this Agreement. "Letter of Credit Borrowing" has the meaning assigned to such term in Section 2.19. "Letter of Credit Sublimit" has the meaning assigned to such term in Section 2.19. "LIBO Rate" means, with respect to the Loans comprising any Eurodollar Borrowing for any Interest Period, the interest rate per annum determined by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays rates at which U.S. dollar deposits are offered by leading banks in the London interbank deposit market), or the rate which is quoted by another source selected by the Administrative Agent as an authorized information vendor for the purpose of displaying rates at which U.S. dollar deposits are offered by leading banks in the London interbank deposit market (for purposes of this definition, an "Alternate Source"), at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period as the London interbank offered rate for U.S. dollars for an amount comparable to such Borrowing and having a borrowing date and a maturity comparable to such Interest Period (or if there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error)), by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage. Notwithstanding the foregoing, if the LIBO Rate as determined under any method above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement. The LIBO Rate shall be adjusted with respect to any Eurodollar Loan that is outstanding on the effective date of any change in the LIBOR Reserve Percentage as of such effective date. The Administrative Agent shall give prompt notice to the Borrower of the LIBO 781366594 19619932 14

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Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error. "LIBOR Reserve Percentage" shall mean as of any day the maximum percentage in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as "Eurocurrency Liabilities"). "Licenses" has the meaning assigned to it in Section 3.11. "Lien" means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities. "Life Subsidiary" means any Subsidiary of the Borrower that is engaged in the business of providing life insurance and/or annuities, and related services. "Loan Document" means, collectively, this Agreement, any Note and the Fee Letters, any letter of credit applications and any agreements between the Borrower and an Issuing Bank regarding the issuance by such Issuing Bank of Letters of Credit hereunder and/or the respective rights and obligations between the Borrower and such Issuing Bank in connection thereunder, and any amendments, modification or supplements to any of the foregoing. "Loans" means the loans made by the Lenders to the Borrower pursuant to Section 2.03. "Material Adverse Effect" means, relative to any occurrence of whatever nature (including any adverse determination in any litigation, arbitration, or governmental investigation or proceeding), a material adverse effect on: (a) the assets, business, financial condition, operations or prospects of the Borrower or any Subsidiary; or (b) the ability of the Borrower or any Subsidiary to perform any of its payment or other material obligations under any of the Loan Documents. "Material Insurance Subsidiary" means, at any time, an Insurance Subsidiary having (on a consolidated basis with its Subsidiaries) at such time either (a) gross revenues for the most recent four Fiscal Quarter period in excess of 5% of the gross revenues of the Borrower and its Subsidiaries for such four Fiscal Quarter period or (b) total assets, as of the last day of the preceding Fiscal Quarter, having a net book value in excess of 5% of the total assets of the Borrower and its Subsidiaries as of such day, in each case, based upon the Borrower's most recent annual or quarterly financial statements delivered to the Administrative Agent under Section 5.01. Notwithstanding the foregoing, it is agreed that Educators Life Insurance 781366594 19619932 15

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Company of America shall not be deemed a Material Insurance Subsidiary but its Subsidiary, Horace Mann Life Insurance Company, shall be a Material Insurance Subsidiary. The Material Insurance Subsidiaries are set forth on Schedule 3.10, as such schedule may be updated from time to time. "Maturity Date" means July 12May 19, 20262030. "Minimum Net Worth" has the meaning assigned to such term in Section 6.02. "Moody's" means Moody's Investors Service, Inc. "Multiemployer Plan" means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. "NAIC" means the National Association of Insurance Commissioners, or any successor thereto. "Net Worth" means the consolidated net worth, calculated in accordance with GAAP, of the Borrower and its consolidated Subsidiaries, excluding unrealized gains and losses as calculated in accordance with FASB 115. "Non-U.S. Lender" means a Lender that is not a U.S. Person. "Note" has the meaning assigned to such term in Section 2.07(e). "NYFRB" means the Federal Reserve Bank of New York. "Obligations" means all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the Borrower or any Affiliate thereof of any proceeding under any debtor relief laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed or allowable claims in such proceeding. Without limiting the foregoing, the Obligations include (a) the obligation to pay principal, interest, Letter of Credit commissions, charges, expenses, fees, indemnities and other amounts payable by the Borrower under any Loan Document and (b) the obligation of the Borrower to reimburse any amount in respect of any of the foregoing that the Administrative Agent or any Lender, in each case in its sole discretion, may elect to pay or advance on behalf of the Borrower. "OFAC" means the Office of Foreign Assets Control of the U.S. Department of the Treasury. "Official Body" means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or 781366594 19619932 16

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pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking Supervision or any successor or similar authority to any of the foregoing). "Ordinary Course Litigation" has the meaning assigned to such term in Section 3.04. "Other Connection Taxes" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Taxes (other than a connection arising from such Recipient having executed, delivered, enforced, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document), or sold or assigned an interest in any Loan, Letter of Credit or any Loan Document. "Other Taxes" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made under Section 2.16(b)). "Overnight Bank Funding Rate" means, for any day, the rate comprised of both overnight federal funds and overnight Eurodollareurocurrency borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRBFederal Reserve Bank of New York, as set forth on its public website from time to time, and as published on the next succeeding Business Day byas the NYFRB as an overnight bank funding rate. by the Federal Reserve Bank of New York (or by such other recognized electronic source (such as Bloomberg) selected by the Administrative Agent for the purpose of displaying such rate); provided, that if such day is not a Business Day, the Overnight Bank Funding Rate for such day shall be such rate on the immediately preceding Business Day; provided, further, that if such rate shall at any time, for any reason, no longer exist, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error). If the Overnight Bank Funding Rate determined as above would be less than zero, then such rate shall be deemed to be zero. Such rate of interest charged shall be adjusted as of each Business Day based on changes in the Overnight Bank Funding Rate without notice to the Borrower. "P/C Subsidiary" means any Subsidiary of the Borrower that is engaged in the business of providing property and casualty insurance and related services. "Parent" means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary. "Participant" has the meaning assigned to such term in Section 9.04. 781366594 19619932 17

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"Participant Register" has the meaning assigned to such term in Section 9.04(c). "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity. "Plan" means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any member of its Controlled Group is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA. "Plan Asset Regulations" means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time. "PNC Fee Letter" means the letter agreement, dated as of May 21, 2019, among the Borrower, PNC Bank, National Association and PNC Capital Markets LLC. "Prime Rate" means the interest rate per annum announced from time to time by the Administrative Agent at its Principal Office as its then prime rate, which rate may not be the lowest or most favorable rate then being charged commercial borrowers or others by the Administrative Agent. Any change in the Prime Rate shall take effect at the opening of business on the day such change is announced. "Principal Office" shall meanmeans the main banking office of the Administrative Agent in Pittsburgh, Pennsylvania. "PTE" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time. "Published Rate" shall meanmeans the rate of interest published each Business Day in The Wall Street Journal "Money Rates" listing under the caption "London Interbank Offered Rates" for a one month period (or, if no such rate is published therein for any reason, then the Published Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the London interbank deposit market for a one month period as published in another publication selected by the Administrative Agent). "QFC" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D). "QFC Covered Entity" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. 252.82(b), (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. 47.3(b); or a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. 382.2(b). "QFC Credit Support" has the meaning assigned to it in Section 9.17. "Quarterly Statement" means the quarterly financial statement of any Insurance Subsidiary as required to be filed with the insurance commissioner (or similar authority) of such 781366594 19619932 18

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Insurance Subsidiary's state of domicile, together with all exhibits or schedules filed therewith, prepared in conformity with SAP. "Recipient" means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank. "Register" has the meaning assigned to such term in Section 9.04. "Reimbursement Obligation" has the meaning assigned to such term in Section 2.19. "Reinsurance Agreements" means any agreement, contract, treaty, certificate or other arrangement (other than a Surplus Relief Reinsurance Agreement) whereby any Insurance Subsidiary agrees to transfer or cede to another insurer all or part of the liability assumed by such Insurance Subsidiary under a policy or policies of insurance reinsured by such Insurance Subsidiary. "Related Parties" means, with respect to any specified Person, such Person's Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person's Affiliates. "Reportable Compliance Event" means that: (a) any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint, or similar charging instrument, arraigned, custodially detained, penalized or the subject of an assessment for a penalty, or enters into a settlement with an Official Body in connection with any Sanctions or other Anti-Terrorism Law or Anti-Corruption law, or any predicate crime to any Anti-Terrorism Law or Anti-Corruption Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations represents a violation of any Anti-Terrorism Law or Anti-Corruption Law; or (b) any Covered Entity engages in a transaction that has caused or may cause the Lenders or Administrative Agent to be in violation of any Anti-Terrorism Laws, including a Covered Entity's use of any proceeds of the Loans to fund any operations in, finance any investments or activities in, or, make any payments to, directly or indirectly, a Sanctioned Person or Sanctioned Jurisdiction. "Required Lenders" means, at any time, Lenders having Revolving Credit Exposures and unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures and unused Commitments at such time; provided that for the purpose of determining the Required Lenders needed for any waiver, amendment, modification or consent, any Lender that, subject to Section 2.17(b), is a Defaulting Lender shall be disregarded; provided further that if there exists fewer than three (3) Lenders, Required Lenders shall mean all Lenders (other than any Defaulting Lender), "Requirement of Law" for any Person means the corporate charter and by-laws or other organizational or governing documents of such Person, and any law, treaty, rule, ordinance or regulation or determination of an arbitrator or a court or other governmental authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 781366594 19619932 19

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"Revolving Credit Exposure" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Loans and LC Exposure at such time. "S&P" means Standard & Poor's Ratings Services, a Standard & Poor's Financial Services LLC business. "Sanctioned Jurisdiction" means any country, territory, or region that is the subject of sanctions administered by (a) the U.S. government, including those administered by OFAC or (b) the United Nations Security Council, the European Union, any European Union member state, Her Majesty's Treasury of the United Kingdom or other relevant sanctions authority.Sanctions. "Sanctioned Person" means (a) a Person that is the subject of sanctions administered by OFAC or the U.S. Department of State ("State"), including by virtue of being (i) named on OFAC's list of "Specially Designated Nationals and Blocked Persons"; (iib) Person that is organized under the laws of, ordinarily resident in, or physically located in a Sanctioned Jurisdiction; or (iii)c) a Person that is, or is owned or controlled 50% or more in the aggregate, by one or more Persons that are the subject of sanctions administered by OFAC; (b)directly or indirectly, by a Person that is the subject of sanctions maintained by the European Union ("E.U."), including by virtue of being named on the E.U.'s "Consolidated list of persons, groups and entities subject to E.U. financial sanctions" or other, similar lists; (c) a Person that is the subject of sanctions maintained by the United Kingdom ("U.K."), including by virtue of being named on the "Consolidated List Of Financial Sanctions Targets in the U.K." or other, similar lists; or (d) a Person that is the subject of sanctions imposed by any Official Body of a jurisdiction whose laws apply to this Agreement.Sanctions. "Sanctions" means sanctions administered or enforced from time to time by the U.S. government, including OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, HerHis Majesty's Treasury or other relevant sanctions authority. "SAP" means, as to each Insurance Subsidiary, the statutory accounting practices prescribed or permitted by the insurance commissioner (or other similar authority) in such Insurance Subsidiary's state of domicile for the preparation of Annual Statements and other financial reports by insurance corporations of the same type as such Insurance Subsidiary. "Securities Lending" means any transaction or series of transactions pursuant to which any Insurance Subsidiary makes a pledge or assignment of marketable securities to another Person (including repurchase transactions, reserve repurchase transactions, fee-based transactions and other similar securities lending arrangements); provided that "Securities Lending" shall not include FHLB Liquidity Debt or FHLB Operating Debt. "SOFR" means, for any day, a rate equal to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). "SOFR Adjustment" means, ten basis points (0.10%). 781366594 19619932 20

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"SOFR Floor" means a rate of interest per annum equal to zero basis points (0.00%). "Statutory Financial Statements" has the meaning specified in Section 3.02(a). "Subsidiary" means, with respect to the Borrower at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the Borrower in the Borrower's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled by the Borrower or one or more subsidiaries of the Borrower or by the Borrower and one or more Subsidiaries of the Borrower. "Supported QFC" has the meaning assigned to it in Section 9.17. "Surplus Relief Reinsurance Agreements" means any agreement whereby any Insurance Subsidiary assumes or cedes business under a reinsurance agreement that would be considered a "financing-type" reinsurance agreement and (a) with respect to any P/C Subsidiary, which is entered into solely for the purpose of affecting the income statement of such P/C Subsidiary as the same may be amended from time to time, and (b) with respect to any Life Subsidiary, as determined in the Fourth Edition of the AICPA Audit Guide for Stock Life Insurance Companies on pp. 91-92 thereof as the same may be amended from time to time. "Swap Contract" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "Master Agreement"), including any such obligations or liabilities under any Master Agreement. "Swap Termination Value" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined 781366594 19619932 21

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as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender). "Synthetic Lease Obligation" means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). "Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. "Term SOFR Administrator" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion). "Term SOFR Rate" shall mean, with respect to any Term SOFR Rate Loan, for any Interest Period, the interest rate per annum determined by the Administrative Agent (rounded upwards, at the Administrative Agent's discretion, to the nearest 1/100th of 1%) equal to the Term SOFR Reference Rate for a tenor comparable to such Interest Period, as such rate is published by the Term SOFR Administrator on the day (the "Term SOFR Determination Date") that is two (2) Business Days prior to the first day of such Interest Period. If the Term SOFR Reference Rate for the applicable tenor has not been published or replaced with a Benchmark Replacement by 5:00 p.m. (Pittsburgh, Pennsylvania time) on the Term SOFR Determination Date, then the Term SOFR Reference Rate shall be the Term SOFR Reference Rate for such tenor on the first Business Day preceding such Term SOFR Determination Date for which such Term SOFR Reference Rate for such tenor was published in accordance herewith, so long as such first preceding Business Day is not more than three (3) Business Days prior to such Term SOFR Determination Date. If the Term SOFR Rate, determined as provided above, would be less than the SOFR Floor, then the Term SOFR Rate shall be deemed to be the SOFR Floor. The Term SOFR Rate shall be adjusted automatically without notice to the Borrower on and as of the first day of each Interest Period. "Term SOFR Rate Loan" means a Loan that bears interest based on the Term SOFR Rate. "Term SOFR Reference Rate" means the forward-looking term rate based on SOFR. "Threshold Amount" means, with respect to all Insurance Subsidiaries, as of any date of determination, twenty-five percent (25%) of the net aggregate admitted assets less separate account assets (as set forth on the financial statements of the Insurance Subsidiaries most recently provided pursuant to Section 5.01(c)). 781366594 19619932 22

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"Transactions" means the execution, delivery and performance by the Borrower of this Agreement, the borrowing of Loans and the use of the proceeds thereof and the issuance of Letters of Credit hereunder. "Type", when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the LIBOTerm SOFR Rate or the Alternate Base Rate. "U.S." means the United States of America. "U.S. Government Securities Business Day" means any day except for (a) a Saturday or Sunday or (b) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. "U.S. Person" means a "United States person" within the meaning of Section 7701(a)(30) of the Code. "U.S. Special Resolution Regime" has the meaning assigned to it in Section 9.17. "U.S. Tax Certificate" has the meaning assigned to such term in Section 2.14(f)(ii)(B)(3). "Withholding Agent" means the Borrower and the Administrative Agent. "Write-Down and Conversion Powers" means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. "2017 Annual Statement" has the meaning assigned to such term in Section 3.02(b). "2018 Annual Statement" has the meaning assigned to such term in Section 3.02(b). "2019 Quarterly Statement" has the meaning assigned to such term in Section 3.02(b). SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Type (e.g., a "EurodollarTerm SOFR Rate Loan"). Borrowings also may be classified and referred to by Type (e.g., a "EurodollarTerm SOFR Borrowing"). SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without 781366594 19619932 23

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limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns (subject to any restrictions on assignments set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (c) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference in any definition to the phrase "at any time" or "for any period" shall refer to the same time or period for all calculations or determinations within such definition, (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights and (g) any reference to any law, rule or regulation herein shall, unless otherwise specified, refer to such law, rule or regulation as amended, modified or supplemented from time to time. SECTION 1.04. Accounting Terms; GAAP. Unless otherwise defined or the context otherwise requires, all financial and accounting terms used herein or in any of the Loan Documents or any certificate or other document made or delivered pursuant hereto shall be defined in accordance with GAAP or SAP, as the context may require. When used in this Agreement, the term "financial statements" shall include the notes and schedules thereto. In addition, when used herein, the terms "best knowledge of" or "to the best knowledge of" any Person shall mean matters within the actual knowledge of such Person (or an Executive Officer or general partner of such Person) or which should have been known by such Person after reasonable inquiry. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Without limiting the foregoing, all Capitalized Lease obligations of any Person that would not have been required to be recognized as a liability on such Person's balance sheet under GAAP prior to the effectiveness of the Accounting Standards Update (the "ASU") issued by the Financial Accounting Standards Board on February 25, 2016 shall continue to be accounted for as if such obligations were not required to be recognized as a liability for purposes of all financial definitions and calculations in this Agreement notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be recognized as a liability on such Person's balance sheet. 781366594 19619932 24

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SECTION 1.05. Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the terms of any Letter of Credit Agreement related thereto, provides for one or more automatic increases in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time. SECTION 1.06. Divisions. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its equity interests at such time. SECTION 1.07. Benchmark Replacement Notification; Rates.LIBOR Notification. Section 2.11(b) of this Agreement provides a mechanism for determining an alternative rate of interest in the event that the London interbank offered rateany Benchmark is no longer available or in certain other circumstances. The Administrative Agent does not warrant or accept any responsibility for and shall not have any liability with respect to, (a) the continuation of, administration of, submission of or calculation of, or any other matter related to the London interbank offered rate or other rates in the definitions of "LIBO Rate", "Daily LIBOR Rate" or with respect to, any Benchmark or any component definition thereof or rates referred to in the definition thereof, or any alternative or successor rate thereto, or replacement rate therefor. (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, such Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of any Benchmark, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower or any other person or entity. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service. 781366594 19619932 25

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ARTICLE II THE CREDITS SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein, each Lender agrees to make Loans to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in such Lender's Revolving Credit Exposure exceeding such Lender's Commitment. Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Loans. SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender's failure to make Loans as required. (b) Subject to Section 2.11, each Borrowing shall be comprised entirely of ABR Loans or EurodollarTerm SOFR Rate Loans as the Borrower may request in accordance herewith. Each Lender at its option may make any EurodollarTerm SOFR Rate Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement. (c) At the commencement of each Interest Period for any EurodollarTerm SOFR Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000. At the time that each ABR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less than $500,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Commitments. Borrowings of more than one Type may be outstanding at the same time; provided that there shall not at any time be more than a total of 5 EurodollarTerm SOFR Borrowings outstanding. (d) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a EurodollarTerm SOFR Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m., New York City time, the same Business Day as the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery or facsimile (or e-mail with a PDF copy attached) to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative 781366594 19619932 26

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Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 2.02: (i) the aggregate amount of the requested Borrowing; (ii) the date of such Borrowing, which shall be a Business Day; (iii) whether such Borrowing is to be an ABR Borrowing or a EurodollarTerm SOFR Borrowing; (iv) in the case of a EurodollarTerm SOFR Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term "Interest Period"; and (v) the location and number of the Borrower's account to which funds are to be disbursed, which shall comply with the requirements of Section 2.04. If no election as to the Type of Borrowing is specified, then the requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested EurodollarTerm SOFR Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender's Loan to be made as part of the requested Borrowing. SECTION 2.04. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders. . Except in respect of the provisions of this Agreement covering the reimbursement of Letters of Credit, the Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent and designated by the Borrower in the applicable Borrowing Request; provided that ABR Loans made to finance a Reimbursement Obligation as provided in Section 2.19(c) shall be remitted by the Administrative Agent to the Issuing Bank. (b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to 781366594 19619932 27

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ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender's Loan included in such Borrowing. SECTION 2.05. Interest Elections. (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a EurodollarTerm SOFR Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar RevolvingTerm SOFR Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing. (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand delivery, telecopy or facsimile (or e-mail with a PDF copy attached) to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower. (c) Each telephonic and written Interest Election Request shall specify the following information in compliance with Section 2.02: (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); (ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; (iii) whether the resulting Borrowing is to be an ABR Borrowing or a EurodollarTerm SOFR Borrowing; and (iv) if the resulting Borrowing is a EurodollarTerm SOFR Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term "Interest Period". If any such Interest Election Request requests a EurodollarTerm SOFR Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month's duration. 781366594 19619932 28

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(d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender's portion of each resulting Borrowing. (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a EurodollarTerm SOFR Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a EurodollarTerm SOFR Borrowing and (ii) unless repaid, each EurodollarTerm SOFR Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. SECTION 2.06. Termination and Reduction of Commitments. (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date. (b) The Borrower may at any time terminate, or from time to time reduce, the Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 2.08, the Revolving Credit Exposures would exceed the total Commitments. (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Commitments. SECTION 2.07. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Loan on the Maturity Date. (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 781366594 19619932 29

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(c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the date thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender's share thereof. (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. (e) Any Lender may request that Loans made by it be evidenced by a promissory note (each, a "Note"). In such event, the Borrower shall prepare, execute and deliver to such Lender a Note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more Notes payable to the order of the payee named therein (or, if such Notes is a registered note, to such payee and its registered assigns). SECTION 2.08. Prepayment of Loans. (a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section. (b) The Borrower shall notify the Administrative Agent by telephone (confirmed by telecopy or facsimile (or e-mail with a PDF copy attached)) of any prepayment hereunder (i) in the case of prepayment of a EurodollarTerm SOFR Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment or (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with a conditional notice of termination of the Commitments as contemplated by Section 2.06, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.06. Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the extent required by Section 2.10 and any break funding payments pursuant to Section 2.13. SECTION 2.09. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the daily unused amount of the Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which such Commitment terminates. Accrued commitment fees shall be payable in arrears on the last day of March, June, September 781366594 19619932 30

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and December of each year and on the date on which the Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any commitment fees accruing after the date on which the Commitments terminate shall be payable on demand. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). (b) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. (c) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to an Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees, to the Lenders. Fees paid shall not be refundable under any circumstances. SECTION 2.10. Interest. (a) The Loans comprising each ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Rate. (b) The Loans comprising each EurodollarTerm SOFR Borrowing shall bear interest at the LIBOa per annum rate equal to the sum of (i) the Term SOFR Rate for the Interest Period in effect for such Borrowing plus (ii) the SOFR Adjustment plus (iii) the Applicable Rate. (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, upon the request of the Administrative Agent or the Required Lenders such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section. If any other Event of Default hereunder shall arise, then upon the request of the Required Lenders, all principal of and interest on any Loan, and any other fee or other amount payable by the Borrower hereunder shall bear interest at 2% plus the rate applicable to ABR Loans as provided in paragraph (a) of this Section, until such Event of Default is cured or is waived. (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any EurodollarTerm SOFR Rate Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for 781366594 19619932 31

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the actual number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or LIBOTerm SOFR Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. SECTION 2.11. Alternate Rate of InterestUnascertainable; Increased Costs; Illegality; Benchmark Replacement Setting. (a) If prior to the commencement of any Interest Period for a Eurodollar BorrowingUnascertainable; Increased Costs. If at any time: (i) (i) the Administrative Agent determinesshall have determined (which determination shall be conclusive and binding absent manifest error) that adequate and reasonable means do not exist for ascertaining the LIBO Rate for such Interest Periodthe Term SOFR Rate cannot be determined pursuant to the definition thereof; or (ii) the Administrative Agent is advised by the Required Lenders that the LIBO Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period; then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (A) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (B) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing; provided that if the circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted. (ii) the Required Lenders determine that for any reason in connection with any request for a Term SOFR Rate Loan or conversion thereto or continuation thereof that the Term SOFR Rate does not adequately and fairly reflect the cost to such Lenders of funding, establishing or maintaining such Loan during the applicable Interest Period, and the Required Lenders have provided notice of such determination to the Administrative Agent, then the Administrative Agent shall have the rights specified in Section 2.11(c). (a) Illegality. If at any time any Lender shall have determined, or any Official Body shall have asserted, that the making, maintenance or funding of any Term SOFR Rate Loan, or the determination or charging of interest rates based on the Term SOFR Rate, has been made impracticable or unlawful by compliance by such Lender in good faith with any Law or any interpretation or application thereof by any Official Body or with any request or directive of any such Official Body (whether or not having the force of Law), then the Administrative Agent shall have the rights specified in Section 2.11(c). 781366594 19619932 32

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(b) Administrative Agent's and Lender's Rights. In the case of any event specified in Section 2.11(a) above, the Administrative Agent shall promptly notify the Lenders and the Borrower thereof, and in the case of an event specified in Section 2.11(b) above, such Lender shall promptly so notify the Administrative Agent and endorse a certificate to such notice as to the specific circumstances of such notice, and the Administrative Agent shall promptly send copies of such notice and certificate to the other Lenders and the Borrower. Upon such date as shall be specified in such notice (which shall not be earlier than the date such notice is given), the obligation of (i) the Lenders, in the case of such notice given by the Administrative Agent, or (ii) such Lender, in the case of such notice given by such Lender, to allow the Borrower to select, convert to, renew or continue a Term SOFR Rate Loan shall be suspended (to the extent of the affected Term SOFR Rate Loan or Interest Periods) until the Administrative Agent shall have later notified the Borrower, or such Lender shall have later notified the Administrative Agent, of the Administrative Agent's or such Lender's, as the case may be, determination that the circumstances giving rise to such previous determination no longer exist. Upon a determination by Administrative Agent under Section 2.11(a), (i)if the Borrower has previously notified the Administrative Agent of its selection of, conversion to or renewal of a Term SOFR Rate Loan and the Term SOFR Rate Loan has not yet gone into effect, such notification shall be deemed to provide for selection of, conversion to or renewal of a ABR Loan, and (ii) any outstanding affected Term SOFR Rate Loans will be deemed to have been converted into ABR Loans at the end of the applicable Interest Period. If any Lender notifies the Administrative Agent of a determination under Section 2.11(b), the Borrower shall, subject to the Borrower's indemnification Obligations under Section 2.13 as to any Loan of the Lender to which a Term SOFR Rate applies, on the date specified in such notice either convert such Loan to an ABR Loan otherwise available with respect to such Loan or prepay such Loan in accordance with Section 2.08. Absent due notice from the Borrower of conversion or prepayment, such Loan shall automatically be converted to an ABR Loan upon such specified date. (b) (d) Benchmark Replacement Setting. (i) Announcements Related to LIBOR. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR (the "IBA") and the U.K. Financial Conduct Authority, the regulatory supervisor for the IBA, announced in a public statement the future cessation or loss of representativeness of overnight/Spot Next, 1-week, 1-month, 2-month, 3-month, 6-month and 12-month USD LIBOR tenor settings (collectively, the "Cessation Announcements"). The parties hereto acknowledge that, as a result of the Cessation Announcements, a Benchmark Transition Event occurred on March 5, 2021 with respect to USD LIBOR under clauses (1) and (2) of the definition of Benchmark Transition Event below; provided however, no related Benchmark Replacement Date occurred as of such date. (ii) (i) Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document (and any agreement executed in connection with a Swap Contract shall be deemed not to be a "Loan Document" for purposes of this Section 2.11(b)titled "Benchmark Replacement Setting"), if a Benchmark Transition Event, an Early Opt-in Election or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have 781366594 19619932 33

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occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (xA) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (yB) if a Benchmark Replacement is determined in accordance with clause (32) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders. (iii) (ii)Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. (iv) (iii) Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (1) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election, or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date, (2A) the implementation of any Benchmark Replacement, and (3B) the effectiveness of any Benchmark Replacement Conforming Changes, (4) in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will notify the Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to paragraph (viv) below and (5y) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.11(b), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any 781366594 19619932 34

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other Loan Document, except, in each case, as expressly required pursuant to this Section 2.11(b). (v) (iv) Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (1A) if the then-current Benchmark is a term rate (including Term SOFR or USD LIBOR)or based on a term rate and either (AI) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (BII) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will be no longernot be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor; and (2B) if a tenor that was removed pursuant to clause (1A) above either (AI) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (BII) is not, or is no longer, subject to an announcement that it is not or will no longernot be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor. (vi) (v) Benchmark Unavailability Period. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period with respect to a given Benchmark, the Borrower may revoke any pending request for a Loan bearing interest based on USD LIBOR,or with reference to such Benchmark or conversion to or continuation of Loans bearing interest based on USD LIBORor with reference to such Benchmark to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for aan ABR Loan of or conversion to an ABR LoansLoan. During anya Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Alternate Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Alternate Base Rate. (vii) Term SOFR Transition Event. Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (1) the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting (the "Secondary Term SOFR Conversion Date") and subsequent Benchmark settings, 781366594 19619932 35

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without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; and (2) Loans outstanding on the Secondary Term SOFR Conversion Date bearing interest based on the then-current Benchmark shall be deemed to have been converted to Loans bearing interest at the Benchmark Replacement with a tenor approximately the same length as the interest payment period of the then-current Benchmark; provided that, this paragraph (vii) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice. For the avoidance of doubt, the Administrative Agent shall not be required to deliver a Term SOFR Notice after a Term SOFR Transition Event and may do so in its sole discretion. (viii) Certain Defined Terms(vi) Definitions. As used in this Section 2.11(b): "Available Tenor" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then currentif such Benchmark is a term rate or is based on a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an Interest Periodinterest period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor forof such Benchmark that is then-removed from the definition of "Interest Period" pursuant to paragraphclause (viv) of this Section 2.11(b), or (y) if the then current Benchmark is not a term rate nor based on a term rate, any payment period for interest calculated with reference to such Benchmark pursuant to this Agreement as of such date. "Benchmark" means, initially, USD LIBORSOFR and the Term SOFR Reference Rate; provided that if a Benchmark Transition Event, a Term SOFR Transition Event, an Early Opt-in Election, or an Other Benchmark Rate Election, as applicable, and its related Benchmark Replacement Date have has occurred with respect to USD LIBOR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to paragraph (ii) of this Section 2.11(b). "Benchmark Replacement" means, for any Available Tenorwith respect to any Benchmark Transition Event, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date: (1) the sum of: (A) Term SOFR and (B) the related Benchmark Replacement Adjustment; (2) (1) the sum of: (A) Daily Simple SOFR and (B) the related Benchmark ReplacementSOFR Adjustment; 781366594 19619932 36

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781366594 19619932 37 Benchmark Replacement Adjustment 0.18456% (18.456 basis points) (3) (2) the sum of: (A) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor, giving due consideration to (Ix) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (IIy) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement forto the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (B) the related Benchmark Replacement Adjustment; provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided, further, that, in the case of an Other Benchmark Rate Election, the "Benchmark Replacement" shall mean the alternative set forth in clause (3) above and when such clause is used to determine the Benchmark Replacement in connection with the occurrence of an Other Benchmark Rate Election, the alternate benchmark rate selected by the Administrative Agent and the Borrower shall be the term benchmark rate that is used in lieu of a USD LIBOR-based rate in relevant other U.S. dollar-denominated syndicated credit facilities; provided, further, that, with respect to a Term SOFR Transition Event, on the applicable Benchmark Replacement Date, the "Benchmark Replacement" shall revert to and shall be determined as set forth in clause (1) of this definition. If if the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) abovethe foregoing would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents; and provided further, that any Benchmark Replacement shall be administratively feasible as determined by the Administrative Agent in its sole discretion. "Benchmark Replacement Adjustment" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available Tenor for any setting of such Unadjusted Benchmark Replacement: , (1) for purposes of clauses (1) and (2) of the definition of "Benchmark Replacement," the applicable amount(s) set forth below: Three-Months 0.26161% (26.161 basis points) One-Month Six-Months 0.11448% (11.448 basis points) 0.42826% (42.826 basis points) Available Tenor Two-Months

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(2) for purposes of clause (3) of the definition of "Benchmark Replacement," the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor, giving due consideration to (A) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (B) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities; at such time. provided that, if the then-current Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of "Benchmark Replacement Adjustment" shall be deemed to be the Available Tenor that has approximately the same length (disregarding business day adjustments) as the payment period for interest calculated with reference to such Unadjusted Benchmark Replacement. "Benchmark Replacement Conforming Changes" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate," the definition of "Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents). "Benchmark Replacement Date" means a date and time determined by the Administrative Agent, which date shall be no later than the earliest to occur of the following events with respect to the then-current Benchmark: 781366594 19619932 38

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(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (aA) the date of the public statement or publication of information referenced therein and (bB) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate or is based on a term rate, all Available Tenors of such Benchmark (or such component thereof); or (2) in the case of clause (3) of the definition of "Benchmark Transition Event," the date determined by the Administrative Agent, which date shall promptly follow the date of the public statement or publication of information referenced therein; (3) in the case of a Term SOFR Transition Event, the date that is set forth in the Term SOFR Notice provided to the Lenders and the Borrower pursuant to this Section 2.11(b), which date shall be at least 30 days from the date of the Term SOFR Notice; or (4) in the case of an Early Opt-in Election or an Other Benchmark Rate Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, is provided to the Lenders, written notice of objection to such Early Opt-in Election or an Other Benchmark Rate Election, as applicable, from Lenders comprising the Required Lenders. For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii)if such Benchmark is a term rate or is based on a term rate, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof). "Benchmark Transition Event" means, the occurrence of one or more of the following events, with respect to the then-current Benchmark: (1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a 781366594 19619932 39

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term rate or is based on a term rate, all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); (2) a public statement or publication of information by an Official Body having jurisdiction over the Administrative Agent, the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate or is based on a term rate, all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate or is based on a term rate, any Available Tenor of such Benchmark (or such component thereof); or (3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) or an Official Body having jurisdiction over the Administrative Agent announcing that such Benchmark (or such component thereof) or, if such Benchmark is a term rate or is based on a term rate, all Available Tenors of such Benchmark (or such component thereof) are no longernot, or as of a specified future date will not be, representative. For the avoidance of doubt, if such Benchmark is a term rate or is based on a term rate, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof). "Benchmark Unavailability Period" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with this Section 2.11(bd) titled "Benchmark Replacement Setting" and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under 781366594 19619932 40

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any Loan Document in accordance with this Section 2.11(bd). titled "Benchmark Replacement Setting." "Corresponding Tenor" with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor. "Daily Simple SOFR" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion. "Early Opt-in Election" means, if the then-current Benchmark is USD LIBOR, the occurrence of: (1) a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and (2) the joint election by the Administrative Agent and the Borrower to trigger a fallback from USD LIBOR and the provision by the Administrative Agent of written notice of such election to the Lenders. "Floor" means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to USD LIBORthe Term SOFR Rate or, if no floor is specified, zero. "ISDA Definitions" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto. "Other Benchmark Rate Election" means, if the then-current Benchmark is USD LIBOR, the occurrence of: (x) either (i) a request by the Borrower to the Administrative Agent , or (ii) notice by the Administrative Agent to the Borrower, that, at the determination of the Borrower or the Administrative Agent, as applicable, U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed), in lieu of a USD LIBOR 781366594 19619932 41

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based rate, a term benchmark rate as a benchmark rate, and (y) the Administrative Agent, in its sole discretion, and the Borrower jointly elect to trigger a fallback from USD LIBOR and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower and the Lenders. "Reference Time" with respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not USD LIBOR, the time determined by the Administrative Agent in its reasonable discretion. "Relevant Governmental Body" means the Board of Governors of the Federal Reserve Board System and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve Board System and/or the Federal Reserve Bank of New York, or any successor thereto. "SOFR" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator's Website on the immediately succeeding Business Day. "SOFR Administrator" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate). "SOFR Administrator's Website" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time. "Term SOFR" means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body. "Term SOFR Notice" means a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event. "Term SOFR Transition Event" means the determination by the Administrative Agent that (1) Term SOFR has been recommended for use by the Relevant Governmental Body, and is determinable for each Available Tenor, (2) the administration of Term SOFR is administratively feasible for the Administrative Agent and (3) a Benchmark Transition Event or an Early Opt-in Election, as applicable (and, for the avoidance of doubt, not in the case of an Other Benchmark Rate Election), has previously occurred resulting in a Benchmark Replacement in accordance with Section 2.11(b) that is not Term SOFR. "Unadjusted Benchmark Replacement" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment. 781366594 19619932 42

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(e) Conforming Changes Relating to the Term SOFR Rate. With respect to the Term SOFR Rate, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document; provided that, the Administrative Agent shall provide notice to the Borrower and the Lenders of each such amendment implementing such Conforming Changes reasonably promptly after such amendment becomes effective."USD LIBOR" means the London interbank offered rate for U.S. dollars. SECTION 2.12. Increased Costs. (a) If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender or Issuing Bank (except any such reserve requirement reflected in the LIBO Rate); (ii) impose on any Lender or Issuing Bank or the London interbank market any other condition, cost or expense affecting this Agreement or EurodollarTerm SOFR Rate Loans made by such Lenders or Letters of Credit or participations therein; or (iii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender, such Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, such Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender, such Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, such Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered. (b) If any Lender or Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender's or the Issuing Bank's capital or on the capital of such Lender's or Issuing Bank's holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below that which such Lender or Issuing Bank or such Lender's or 781366594 19619932 43

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Issuing Bank's holding company could have achieved but for such Change in Law (taking into consideration such Lender's or Issuing Bank's policies and the policies of such Lender's or Issuing Bank's holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or Issuing Bank or such Lender's or Issuing Bank's holding company for any such reduction suffered. (c) A certificate of a Lender or Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof. (d) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or Issuing Bank's right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender's or Issuing Bank's intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof. SECTION 2.13. Break Funding Payments. In the event of (a) the payment of any principal of any EurodollarTerm SOFR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.08), (b) the conversion of any EurodollarTerm SOFR Rate Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any EurodollarTerm SOFR Rate Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.08(b) and is revoked in accordance therewith), or (d) the assignment of any EurodollarTerm SOFR Rate Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.16, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event. In the case of a EurodollarTerm SOFR Rate Loan, such loss, cost or expense to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest which would have accrued on the principal amount of such EurodollarTerm SOFR Rate Loan had such event not occurred, at the LIBOTerm SOFR Rate that would have been applicable to such EurodollarTerm SOFR Rate Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such EurodollarTerm SOFR Rate Loan), over (ii) the amount of interest which would accrue on such principal amount for such period at the interest rate which such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the eurodollarinterbank market. A certificate of any Lender setting forth any 781366594 19619932 44

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amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. SECTION 2.14. Taxes. (a) Withholding Taxes; Gross-Up. Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes except as required by applicable law. If any applicable law (as determined in good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.14), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. (b) Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes. (c) Evidence of Payment. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.14, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. (d) Indemnification by the Borrower. The Borrower shall indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.14(d)) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error. (e) Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so) and (ii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan 781366594 19619932 45

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Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this paragraph (e). (f) Status of Lenders. (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.14(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. (ii) Without limiting the generality of the foregoing, if the Borrower is a U.S. Person, (A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax; (B) any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request 781366594 19619932 46

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of the Borrower or the Administrative Agent), whichever of the following is applicable: (1) in the case of a Non-U.S. Lender claiming the benefits of an income tax treaty to which the U.S. is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty; (2) in the case of a Non-U.S. Lender claiming that its extension of credit will generate U.S. effectively connected income, executed originals of IRS Form W-8ECI; (3) in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Non-U.S. Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed originals of IRS Form W-8BEN; or (4) to the extent a Non-U.S. Lender is not the Beneficial Owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each Beneficial Owner, as applicable; provided that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner (C) any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to 781366594 19619932 47

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the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and (D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement. Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so. (g) Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.14 (including by the payment of additional amounts pursuant to this Section 2.14), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.14 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would 781366594 19619932 48

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have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This paragraph (g) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. (h) Survival. Each party's obligations under this Section 2.14 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document. (i) Defined Terms. For purposes of this Section, the term "Lender" includes any Issuing Bank and the term "applicable law" includes FATCA. SECTION 2.15. Payments Generally; Pro Rata Treatment; Sharing of Set-offs. (a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees, Reimbursement Obligations or of amounts payable under Section 2.12, 2.13 or 2.14, or otherwise) prior to 2:00 p.m., New York City time, on the date when due, in immediately available funds, without set-off or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at its Principal Office, except that payments to be made directly to Issuing Banks and payments pursuant to Sections 2.12, 2.13, 2.14 and 9.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars. (b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, interest, fees and Reimbursement Obligations then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed Reimbursement Obligations then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed Reimbursement Obligations then due to such parties. (c) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in Reimbursement Obligations resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in Reimbursement Obligations and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations 781366594 19619932 49

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in the Loans and participations in Reimbursement Obligations of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and participations in Reimbursement Obligations; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Reimbursement Obligations to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. (d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or Issuing Banks hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Banks the amount due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders and Issuing Banks severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation. (e) If any Lender or Issuing Bank shall fail to make any payment required to be made by it pursuant to Section 2.04(b), 2.15(d) or 9.03(c), then the Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, apply any amounts thereafter received by the Administrative Agent for the account of such Lender or Issuing Bank to satisfy such Lender's or Issuing Bank's obligations under such Sections until all such unsatisfied obligations are fully paid, and/or hold such amounts in a segregated account over which the Administrative Agent shall have exclusive control as cash collateral for, and application to, any future funding obligations of such Lender or Issuing Bank under any such Section, in each case, in any order as determined by the Administrative Agent in its discretion. SECTION 2.16. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.14, as 781366594 19619932 50

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the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. (b) If any Lender requests compensation under Section 2.12, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.14, or if any Lender becomes a Defaulting Lender, or if any Lender does not consent to any proposed amendment, supplement, modification, consent or waiver of any provision of this Agreement or any other Loan Document that requires the consent of each of the Lenders or each of the Lenders affected thereby (so long as the consent of the Required has been obtained), then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and if a Commitment is being assigned, the Issuing Banks), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, participations in Reimbursement Obligations, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.14, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. SECTION 2.17. Defaulting Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender : (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 2.09; (b) any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank hereunder; third, to cash collateralize LC Exposure with respect to such Defaulting Lender in accordance with this Section; fourth, as the Borrower may request (so long as no Default or 781366594 19619932 51

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Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement and (y) cash collateralize future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with this Section; sixth, to the payment of any amounts owing to the Lenders or the Issuing Banks as a result of any judgment of a court of competent jurisdiction obtained by any Lender or the Issuing Banks against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement or under any other Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans, Reimbursement Obligations or Letter of Credit Borrowings in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, Reimbursement Obligations and Letter of Credit Borrowings owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Reimbursement Obligations and Letter of Credit Borrowings owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Borrower's obligations corresponding to such Defaulting Lender's LC Exposure are held by the Lenders pro rata in accordance with the Commitments without giving effect to clause (d) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. (c) the Commitment and Revolving Credit Exposure of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or other modification pursuant to Section 9.02); provided that this clause (c) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender affected thereby; (d) if any LC Exposure exists at the time such Lender becomes a Defaulting Lender then: (i) all or any part of the LC Exposure of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender's Revolving Credit Exposure to exceed its Commitment; 781366594 19619932 52

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(ii) if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one Business Day following notice by the Administrative Agent cash collateralize for the benefit of the Issuing Banks only the Borrower's obligations corresponding to such Defaulting Lender's LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.19 for so long as such LC Exposure is outstanding ; (iii) if the Borrower cash collateralizes any portion of such Defaulting Lender's LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.19 with respect to such Defaulting Lender's LC Exposure during the period such Defaulting Lender's LC Exposure is cash collateralized; (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Section 2.09 and Section 2.19 shall be adjusted in accordance with such non-Defaulting Lenders' Applicable Percentages; and (v) if all or any portion of such Defaulting Lender's LC Exposure is neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or remedies of any Issuing Bank or any other Lender hereunder, all letter of credit fees payable under Section 2.19 with respect to such Defaulting Lender's LC Exposure shall be payable to the Issuing Banks until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and (vi) so long as such Lender is a Defaulting Lender, no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting Lender's then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.17(d), and LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.17(d)(i) (and such Defaulting Lender shall not participate therein). (e) If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) any Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless the Issuing Banks shall have entered into arrangements with the Borrower or such Lender, satisfactory to such Issuing Bank to defease any risk to it in respect of such Lender hereunder. (f) In the event that each of the Administrative Agent, the Borrower, each and each Issuing Bank agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders shall be 781366594 19619932 53

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readjusted to reflect the inclusion of such Lender's Commitment and on such date such Lender shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage. SECTION 2.18. Increase of Commitments. (a) The Borrower may, from time to time, by notice to the Administrative Agent, request that the aggregate Commitments be increased by an amount that will not result in the aggregate Commitments exceeding $325,000,000475,000,000; provided that each increase in aggregate Commitments under this Section shall be in a minimum amount of $25,000,000. Each such notice shall set forth the requested amount of the increase in the Commitments and the date on which such increase is to become effective. The Borrower shall have the right, but not the obligation, to arrange for one or more commercial banks or other financial institutions (any such bank or other financial institution being called an "Augmenting Lender"), which may include any Lender, to extend Commitments or increase their existing Commitments in an aggregate amount up to, but not greater than, the requested increase, provided that each Augmenting Lender, if not already a Lender hereunder (i) shall extend a new Commitment of not less than $5,000,000, (ii) shall execute all such documentation as the Administrative Agent shall reasonably specify to evidence its status as a Lender hereunder and (iii) shall be consented to by the Administrative Agent (which consent shall not be unreasonably withheld or delayed). Such increases and such new Commitments shall become effective on the date agreed to by the Borrower, the Augmenting Lenders and the Administrative Agent. Notwithstanding the foregoing, no increase in the aggregate Commitments (or in the Commitment of any Lender) shall become effective under this paragraph unless, on the date of such increase, the conditions set forth in Section 4.02 shall be satisfied (with all references in such paragraphs to a Loan being deemed to be references to such increase) and the Administrative Agent shall have received a certificate to that effect dated such date and executed by an Executive Officer of the Borrower. Notwithstanding anything else in the foregoing, no Lender shall become an Augmenting Lender without such Lender's consent. (b) Upon the effectiveness of any increase pursuant to this Section 2.18 of the aggregate Commitments and any resulting adjustment in the Applicable Percentages, the Lenders and the Augmenting Lenders will purchase from each other and sell to each other outstanding Loans sufficient to cause the outstanding Loans of each Lender and Augmenting Lender to equal its Applicable Percentage (as so adjusted) of the aggregate outstanding Revolving Loans. Such purchase and sale shall be made pursuant to Section 9.04 except that no minimum amount shall be required, no processing fee shall be charged and, if any Lender shall suffer a loss or incur an expense as a result of the effectiveness of such purchase or sale being during an Interest Period, the Borrower shall reimburse such Lender the amount of such loss or expense. Each such Lender shall furnish the Borrower with a certificate setting forth, in reasonable detail, the basis for determining the amount to be paid to it hereunder. SECTION 2.19. Letters of Credit. (a) Issuance of Letters of Credit. The Borrower may at any time prior to the Maturity Date request the issuance of a Letter of Credit for its own account or any Subsidiary, or 781366594 19619932 54

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the amendment or extension of an existing Letter of Credit, by delivering or transmitting electronically to the Issuing Bank (with a copy to the Administrative Agent) a completed application for letter of credit, or request for such amendment or extension, as applicable, in such form as the Issuing Bank may specify from time to time by no later than 10:00 a.m. at least five (5) Business Days, or such shorter period as may be agreed to by the Issuing Bank, in advance of the proposed date of issuance. The Borrower shall authorize and direct the Issuing Bank to name the Borrower or any Subsidiary as the "Applicant" or "Account Party" of each Letter of Credit. Promptly after receipt of any letter of credit application, the Issuing Bank shall confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit application and if not, such Issuing Bank will provide the Administrative Agent with a copy thereof. (i) Unless the Issuing Bank has received notice from any Lender or the Administrative Agent, at least one day prior to the requested date of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable conditions in Article IV is not satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of the other Lenders set forth in this Section 2.19, the Issuing Bank or any of the Issuing Bank's Affiliates will issue the proposed Letter of Credit or agree to such amendment or extension, provided that each Letter of Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance, and (B) in no event expire later than the Maturity Date and provided further that in no event shall (i) the Letter of Credit Obligations exceed, at any one time, $50,000,000 (the "Letter of Credit Sublimit") or (ii) the Revolving Credit Exposure exceed, at any one time, the Commitments. Each request by the Borrower for the issuance, amendment or extension of a Letter of Credit shall be deemed to be a representation by the Borrower that it shall be in compliance with the preceding sentence and with Article IV after giving effect to the requested issuance, amendment or extension of such Letter of Credit. Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to the beneficiary thereof, the applicable Issuing Bank will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment. (ii) Notwithstanding Section 2.19(a)(i), the Issuing Bank shall not be under any obligation to issue any Letter of Credit if (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the Issuing Bank from issuing the Letter of Credit, or any law applicable to the Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Bank shall prohibit, or request that the Issuing Bank refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the Issuing Bank with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the Issuing Bank in good faith deems 781366594 19619932 55

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material to it, or (ii) the issuance of the Letter of Credit would violate one or more policies of the Issuing Bank applicable to letters of credit generally. (b) Letter of Credit Fees. The Borrower shall pay (i) to the Administrative Agent for the account of each Lender a participation fee with respect to its participations in each outstanding Letter of Credit, which shall accrue on the daily maximum amount then available to be drawn under such Letter of Credit at the same Applicable Rate used to determine the interest rate applicable to EurodollarTerm SOFR Rate Loans, during the period from and including the Effective Date to but excluding the later of the date on which such Lender's Commitment terminates and the date on which such Lender ceases to have any LC Exposure and (ii) to the Issuing Bank for its own account a fronting fee equal to 0.125% per annum on the daily amount available to be drawn under each Letter of Credit. All Letter of Credit Fees and fronting fees shall be computed on the basis of a year of 360 days and actual days elapsed and shall be payable quarterly in arrears on each Interest Payment Date following issuance of each Letter of Credit. The Borrower shall also pay to the Issuing Bank for the Issuing Bank's sole account the Issuing Bank's then in effect customary fees and administrative expenses payable with respect to the Letters of Credit as the Issuing Bank may generally charge or incur from time to time in connection with the issuance, maintenance, amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of Credit. (c) Disbursements, Reimbursement. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank a participation in such Letter of Credit and each drawing thereunder in an amount equal to such Lender's Applicable Percentage of the maximum amount available to be drawn under such Letter of Credit and the amount of such drawing, respectively. (i) In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the Issuing Bank will promptly notify the Borrower and the Administrative Agent thereof. Provided that it shall have received such notice, the Borrower shall reimburse (such obligation to reimburse the Issuing Bank shall sometimes be referred to as a "Reimbursement Obligation") the Issuing Bank prior to 12:00 noon on each date that an amount is paid by the Issuing Bank under any Letter of Credit (each such date, a "Drawing Date") by paying to the Administrative Agent for the account of the Issuing Bank an amount equal to the amount so paid by the Issuing Bank. In the event the Borrower fails to reimburse the Issuing Bank (through the Administrative Agent) for the full amount of any drawing under any Letter of Credit by 12:00 noon on the Drawing Date, the Administrative Agent will promptly notify each Lender thereof, and the Borrower shall be deemed to have requested that Revolving Credit Loans be made by the Lenders under the Base Rate Optionas ABR Loans to be disbursed on the Drawing Date under such Letter of Credit, subject to the amount of the unutilized portion of the Revolving Credit Commitment and subject to the conditions set forth in Section 4.02 other than any notice requirements. Any notice given by the Administrative Agent or Issuing Bank pursuant to this Section 2.19(c)(i) may be oral if immediately confirmed in 781366594 19619932 56

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writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. (ii) Each Lender shall upon any notice pursuant to Section 2.19(c)(i) make available to the Administrative Agent for the account of the Issuing Bank an amount in immediately available funds equal to its Applicable Percentage of the amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.19(c)) each be deemed to have made an ABR Loan to the Borrower in that amount. If any Lender so notified fails to make available to the Administrative Agent for the account of the Issuing Bank the amount of such Lender's Applicable Percentage of such amount by no later than 2:00 p.m. on the Drawing Date, then interest shall accrue on such Lender's obligation to make such payment, from the Drawing Date to the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds Effective Rate during the first three (3) days following the Drawing Date and (ii) at a rate per annum equal to the Alternate Base Rate on and after the fourth day following the Drawing Date. The Administrative Agent and the Issuing Bank will promptly give notice (as described in Section 2.19(c)(i) above) of the occurrence of the Drawing Date, but failure of the Administrative Agent or the Issuing Bank to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment on such date shall not relieve such Lender from its obligation under this Section 2.19(c)(ii). (iii) With respect to any unreimbursed drawing that is not converted into ABR Loans to the Borrower in whole or in part as contemplated by Section 2.19(c)(i), because of the Borrower's failure to satisfy the conditions set forth in Section 4.02 other than any notice requirements, or for any other reason, the Borrower shall be deemed to have incurred from the Issuing Bank a borrowing (each a "Letter of Credit Borrowing") in the amount of such drawing. Such Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate per annum applicable to the ABR Loans. Each Lender's payment to the Administrative Agent for the account of the Issuing Bank pursuant to Section 2.19(c) shall be deemed to be a payment in respect of its participation in such Letter of Credit Borrowing (each a "Participation Advance") from such Lender in satisfaction of its participation obligation under this Section 2.19(c). (d) Repayment of Participation Advances. (i) Upon (and only upon) receipt by the Administrative Agent for the account of the Issuing Bank of immediately available funds from the Borrower (i) in reimbursement of any payment made by the Issuing Bank under the Letter of Credit with respect to which any Lender has made a Participation Advance to the Administrative Agent, or (ii) in payment of interest on such a payment made by the Issuing Bank under such a Letter of Credit, the Administrative Agent on behalf of the Issuing Bank will pay to each Lender, in the same funds as those received by the Administrative Agent, the amount of such Lender's Applicable 781366594 19619932 57

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Percentage of such funds, except the Administrative Agent shall retain for the account of the Issuing Bank the amount of the Applicable Percentage of such funds of any Lender that did not make a Participation Advance in respect of such payment by the Issuing Bank. (ii) If the Administrative Agent is required at any time to return to the Borrower, or to a trustee, receiver, liquidator, custodian, or any official in connection with a Bankruptcy Event, any portion of any payment made by the Borrower to the Administrative Agent for the account of the Issuing Bank pursuant to this Section in reimbursement of a payment made under any Letter of Credit or interest or fees thereon, each Lender shall, on demand of the Administrative Agent, forthwith return to the Administrative Agent for the account of the Issuing Bank the amount of its Applicable Percentage of any amounts so returned by the Administrative Agent plus interest thereon from the date such demand is made to the date such amounts are returned by such Lender to the Administrative Agent, at a rate per annum equal to the Federal Funds Effective Rate in effect from time to time. (e) Documentation. The Borrower agrees to be bound by the terms of the Issuing Bank's application and agreement for letters of credit and the Issuing Bank's written regulations and customary practices relating to letters of credit, though such interpretation may be different from the Borrower's own. In the event of a conflict between such application or agreement and this Agreement, this Agreement shall govern. It is understood and agreed that, except in the case of gross negligence or willful misconduct, the Issuing Bank shall not be liable for any error, negligence and/or mistakes, whether of omission or commission, in following the Borrower's instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto. (f) Determinations to Honor Drawing Requests. In determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing Bank shall be responsible only to determine that the documents and certificates required to be delivered under such Letter of Credit have been delivered and that they comply on their face with the requirements of such Letter of Credit. (g) Nature of Participation and Reimbursement Obligations. Each Lender's obligation in accordance with this Agreement to make the Loans or Participation Advances, as contemplated by Section 2.19(c), as a result of a drawing under a Letter of Credit, and the Obligations of the Borrower to reimburse the Issuing Bank upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.19 under all circumstances, including the following circumstances: (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may have against the Issuing Bank or any of its Affiliates, the Borrower or any other Person for any reason whatsoever, or which the Borrower 781366594 19619932 58

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may have against the Issuing Bank or any of its Affiliates, any Lender or any other Person for any reason whatsoever; (ii) the failure of the Borrower or any other Person to comply, in connection with a Letter of Credit Borrowing, with the conditions set forth in Sections 2.01, 2.02, 2.03, 2.04, 4.02 or as otherwise set forth in this Agreement for the making of a Loan, it being acknowledged that such conditions are not required for the making of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances under Section 2.19(c); (iii) any lack of validity or enforceability of any Letter of Credit; (iv) any claim of breach of warranty that might be made by the Borrower or any Lender against any beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment, counterclaim, crossclaim, defense or other right which the Borrower or any Lender may have at any time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), the Issuing Bank or its Affiliates or any Lender or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between the Borrower or Subsidiaries of the Borrower and the beneficiary for which any Letter of Credit was procured); (v) the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of Credit, or the transport of any property or provision of services relating to a Letter of Credit, in each case even if the Issuing Bank or any of its Affiliates has been notified thereof; (vi) payment by the Issuing Bank or any of its Affiliates under any Letter of Credit against presentation of a demand, draft or certificate or other document which does not comply with the terms of such Letter of Credit; (vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of any property or services relating to a Letter of Credit; (viii) any failure by the Issuing Bank or any of its Affiliates to issue any Letter of Credit in the form requested by the Borrower, unless the Issuing Bank has received written notice from the Borrower of such failure within three Business Days after the Issuing Bank shall have furnished the Borrower and the 781366594 19619932 59

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Administrative Agent a copy of such Letter of Credit and such error is material and no drawing has been made thereon prior to receipt of such notice; (ix) any adverse change in the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Borrower or Subsidiaries of the Borrower; (x) any breach of this Agreement or any other Loan Document by any party thereto; (xi) the occurrence or continuance of a Bankruptcy Event with respect to the Borrower; (xii) the fact that an Event of Default or a Default shall have occurred and be continuing; (xiii) the fact that the Maturity Date shall have passed or this Agreement or the Commitments hereunder shall have been terminated; and (xiv) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing. (h) Indemnity. The Borrower hereby agrees to protect, indemnify, pay and save harmless the Issuing Bank and any of its Affiliates that has issued a Letter of Credit from and against any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel) which the Issuing Bank or any of its Affiliates may incur or be subject to as a consequence, direct or indirect, of the issuance of any Letter of Credit, other than as a result of the gross negligence or willful misconduct of the Issuing Bank as determined by a final non-appealable judgment of a court of competent jurisdiction. (i) Liability for Acts and Omissions. As between the Borrower and the Issuing Bank, or the Issuing Bank's Affiliates, the Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, the Issuing Bank shall not be responsible for any of the following, including any losses or damages to the Borrower or other Person or property relating therefrom: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if the Issuing Bank or its Affiliates shall have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with any conditions required in order to draw upon such Letter of Credit or any other claim of the Borrower or any Subsidiary against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or 781366594 19619932 60

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among the Borrower or any Subsidiary and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the Issuing Bank or its Affiliates, as applicable, including any act or omission of any Governmental Authority, and none of the above shall affect or impair, or prevent the vesting of, any of the Issuing Bank's or its Affiliates rights or powers hereunder. Nothing in the preceding sentence shall relieve the Issuing Bank from liability for the Issuing Bank's gross negligence or willful misconduct in connection with actions or omissions described in such clauses (i) through (viii) of such sentence. In no event shall the Issuing Bank or its Affiliates be liable to the Borrower for any indirect, consequential, incidental, punitive, exemplary or special damages or expenses (including attorneys' fees), or for any damages resulting from any change in the value of any property relating to a Letter of Credit. Without limiting the generality of the foregoing, the Issuing Bank and each of its Affiliates (i) may rely on any oral or other communication believed in good faith by the Issuing Bank or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together with any interest paid by the Issuing Bank or its Affiliate; (iv) may honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon receipt of such statement (even if such statement indicates that a draft or other document is being delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on the Issuing Bank or its Affiliate in any way related to any order issued at the applicant's request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document (each an "Order") and honor any drawing in connection with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit fail to conform in any way with such Letter of Credit. In furtherance and extension and not in limitation of the specific provisions set forth above, any action taken or omitted by the Issuing Bank or its Affiliates under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith, shall not put the Issuing Bank or its Affiliates under any resulting liability to the Borrower or any Lender. (j) Issuing Bank Reporting Requirements. Each Issuing Bank shall, on the first Business Day of each month, provide to Administrative Agent and Borrower a schedule of the Letters of Credit issued by it, in form and substance satisfactory to Administrative Agent, 781366594 19619932 61

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showing the date of issuance of each Letter of Credit, the account party, the original face amount (if any), and the expiration date of any Letter of Credit outstanding at any time during the preceding month, and any other information relating to such Letter of Credit that the Administrative Agent may request. ARTICLE III REPRESENTATIONS AND WARRANTIES The Borrower represents and warrants to the Lenders that: SECTION 3.01. Due Organization, Authorization, Etc. The Borrower and each Subsidiary (a) is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation, (b) is duly qualified to do business and in good standing in each jurisdiction where, because of the nature of its activities or properties, such qualification is required, which jurisdictions are set forth with respect to the Borrower and each Subsidiary on Schedule 3.01, (c) has the requisite corporate power and authority and the right to own and operate its properties, to lease the property it operates under lease, and to conduct its business as now and proposed to be conducted, and (d) has obtained all material licenses, permits, consents or approvals from or by, and has made all filings with, and given all notices to, all Governmental Authorities having jurisdiction, to the extent required for such ownership, operation and conduct (including, without limitation, the consummation of the transactions contemplated by this Agreement) as to each of the foregoing except where the failure to do so would not have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole. The execution, delivery and performance by the Borrower of this Agreement and the consummation of the transactions contemplated hereby and thereby are within its corporate powers, have been duly authorized by all necessary corporate action (including, without limitation, shareholder approval, if required) and do not contravene or conflict with the Borrower's articles of incorporation or bylaws. Each of the Borrower and its Subsidiaries has received all material governmental and other consents and approvals (if any shall be required) necessary for such execution, delivery and performance, and such execution, delivery and performance do not and will not contravene or conflict with, or create a Lien or right of termination or acceleration under, any Requirement of Law or Contractual Obligation binding upon the Borrower or such Subsidiaries. This Agreement and each of the Loan Documents is (or when executed and delivered will be) the legal, valid, and binding obligation of the Borrower enforceable against the Borrower in accordance with its respective terms; provided that the Borrower assumes for purposes of this Section 3.01 that this Agreement and the other Loan Documents have been validly executed and delivered by each of the parties thereto other than the Borrower. SECTION 3.02. Statutory Financial Statements. (a) The Annual Statement of each of the Insurance Subsidiaries as filed with the appropriate Governmental Authority of its state of domicile (the "Department") and delivered to each Lender prior to the execution and delivery of this Agreement, as of and for the 2017 and 2018 Fiscal Years and as of and for the Fiscal Quarter ended March 31, 2019 (collectively, the "Statutory Financial Statements"), have been prepared in accordance with SAP applied on a consistent basis (except as noted therein). Each such Statutory Financial Statement was in material compliance with applicable law when filed. The 781366594 19619932 62

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Statutory Financial Statements fairly present the financial position, the results of operations, changes in equity and changes in financial position of each such Insurance Subsidiary as of and for the respective dates and periods indicated therein in accordance with SAP applied on a consistent basis, except as set forth in the notes thereto or on Schedule 3.02(a). All books of account of each of the Insurance Subsidiaries fully and fairly disclose all of the transactions, properties, assets, investments, liabilities and obligations of such Insurance Subsidiary and all of such books of account are in the possession of each such Insurance Subsidiary and are true, correct and complete in all material respects. (b) The investments of Insurance Subsidiaries reflected in the Annual Statements filed with the respective Departments with respect to the 2017 Fiscal Year (the "2017 Annual Statement"), the 2018 Fiscal Year (the "2018 Annual Statement") and the March 31, 2019 Quarterly Statement (the "2019 Quarterly Statement") comply in all material respects with all applicable requirements of the Department with respect to each such Insurance Subsidiary as well as those of any other applicable jurisdiction relating to investments in respect of which it may invest its funds. (c) Marketable securities and short term investments reflected in the 2017 Annual Statement, the 2018 Annual Statement and in the 2019 Quarterly Statement of each Insurance Subsidiary are valued at cost, amortized cost or market value, as required by applicable law. (d) There has been no event or occurrence which has had or could reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole, since March 31, 2019. SECTION 3.03. GAAP Financial Statements. (a) The Borrower has furnished to the Administrative Agent and each of the Lenders (i) a copy of the unaudited consolidated balance sheets of the Borrower and its Subsidiaries, and the balance sheet of the Borrower on an unconsolidated basis as of March 31, 2019 and the related consolidated statements of income and cash flows for that portion of the Fiscal Year ending as of the close of March 31, 2019 and (ii) a copy of the unaudited consolidated statement of income of the Borrower and its Subsidiaries, and the statement of income of the Borrower on an unconsolidated basis, for March 31, 2019, all prepared in accordance with GAAP (subject to normal year-end adjustments and except that footnote and schedule disclosures are abbreviated) which financial statements are complete and correct and present fairly in accordance with GAAP (subject to normal year-end adjustments) consolidated or unconsolidated, as the case may be results of operations and cash flows of the Borrower as of March 31, 2019 and the period then ended. (b) The Borrower has provided to the Administrative Agent and each Lender a copy of the annual audited consolidated financial statements of the Borrower and its Subsidiaries, consisting of consolidated balance sheets and consolidated statements of income and retained earnings and cash flows, setting forth in comparative form in each case the consolidated figures for the years ended December 31, 2017 and December 31, 2018, which financial statements have been prepared in accordance with GAAP and certified without material 781366594 19619932 63

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qualification by KPMG LLP. Such financial statements are complete and correct and present fairly in accordance with GAAP the consolidated financial position and the consolidated results of operations and cash flows of the Borrower and its Subsidiaries as at the end of such year and for the period then ended. (c) With respect to any representation and warranty which is deemed to be made after the date hereof by the Borrower, the balance sheet and statements of operations, of shareholders' equity and of cash flow, which as of such date shall most recently have been furnished by or on behalf of the Borrower to each Lender for the purposes of or in connection with this Agreement or any transaction contemplated hereby, shall have been prepared in accordance with GAAP consistently applied (except as disclosed therein), and shall present fairly the consolidated financial condition of the corporations covered thereby as at the dates thereof for the periods then ended, subject, in the case of quarterly financial statements, to normal year-end audit adjustments. SECTION 3.04. Litigation and Contingent Liabilities. Except as set forth (including estimates of the dollar amounts involved) in Schedule 3.04 hereto and except for claims which are covered by Insurance Policies, coverage for which has not been denied in writing, or which relate to insurance policies or surety contracts issued by the Borrower or to which it is a party, reinsurance treaties, reinsurance certificates, or any other such agreements entered into by the Borrower in the ordinary course of business (referred to herein as "Ordinary Course Litigation"), no claim, litigation (including, without limitation, derivative actions), arbitration, governmental investigation or proceeding or inquiry is pending or threatened against the Borrower or any of its Subsidiaries (i) which would, if adversely determined, have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole or (ii) which relates to any of the transactions contemplated hereby, and there is no basis known to the Borrower for any of the foregoing. Other than any liability incident to such claims, litigation or proceedings, the Borrower has no material Contingent Liabilities not provided for or referred to in the financial statements delivered pursuant to Section 3.03. SECTION 3.05. Investment Company Act. Other than Horace Mann Investors, Inc., neither the Borrower nor any of its Subsidiaries is an "investment company" or a company "controlled by an investment company," within the meaning of the Investment Company Act of 1940, as amended. SECTION 3.06. Regulations T, U and X. Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock. None of the Borrower, any of its Subsidiaries or any Person acting on their behalf has taken or will take action to cause the execution, delivery or performance of this Agreement or the Notes, the making or existence of the Loans or the use of proceeds of the Loans or any Letter of Credit to violate Regulations T, U or X of the Board. SECTION 3.07. Proceeds. The proceeds of the Loans will be used to fund ongoing working capital, capital expenditures, and for general corporate purposes (including acquisitions permitted by this Agreement). None of such proceeds or any Letter of Credit will be used in 781366594 19619932 64

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violation of applicable law, and none of such proceeds will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any margin stock as defined in Regulation U of the Board. SECTION 3.08. Insurance. The Borrower and its Subsidiaries maintain Insurance Policies to such extent and against such hazards and liabilities as is required by law or customarily maintained by prudent companies similarly situated. SECTION 3.09. Accuracy of Information. All factual written information furnished heretofore or contemporaneously herewith by or on behalf of the Borrower or any of its Subsidiaries to the Administrative Agent or the Lenders for purposes of or in connection with this Agreement or any of the transactions contemplated hereby, as supplemented to the date hereof, is and all other such factual written information hereafter furnished by or on behalf of the Borrower or any of its Subsidiaries to the Administrative Agent or the Lenders will be, true and accurate in every material respect on the date as of which such information is dated or certified and not incomplete by omitting to state any material fact necessary to make such information not misleading. SECTION 3.10. Subsidiaries. As of the Effective Date, Schedule 3.10 contains a complete list of the Borrower's Subsidiaries and indicates which Subsidiaries are Material Insurance Subsidiaries. SECTION 3.11. Insurance Licenses. Except as set forth on Schedule 3.11, to the best of the Borrower's knowledge, no license (including, without limitation, licenses or certificates of authority from applicable insurance departments), permits or authorizations to transact insurance and reinsurance business (collectively, the "Licenses") is the subject of a proceeding for suspension or revocation or any similar proceedings, there is no sustainable basis for such a suspension or revocation, and no such suspension or revocation is threatened by any state insurance department. SECTION 3.12. Taxes. The Borrower and each of its Subsidiaries has filed all material Tax returns and reports that are required to be filed by it, and has paid or provided adequate reserves for the payment of all material Taxes payable by it that have become due, other than those that are not yet delinquent and are being contested in good faith by appropriate proceedings and with respect to which reserves have been established, and are being maintained, in accordance with GAAP. SECTION 3.13. Compliance with Laws. Neither the Borrower nor any of its Subsidiaries is in violation of any law, ordinance, rule, regulation, order, policy, guideline or other requirement of any Governmental Authority (including, without limitation, ERISA, margin regulations, Anti-Terrorism Laws, the Act or environmental laws), if the effect of such violation could reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole and, to the best of the Borrower's knowledge, no such violation has been alleged and each of the Borrower and its Subsidiaries (a) has filed in a timely manner all reports, documents and other materials required to be filed by it with any Governmental Authority, if such failure to so file could reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a 781366594 19619932 65

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whole; and the information contained in each of such filings is true, correct and complete in all material respects and (b) has retained all records and documents required to be retained by it pursuant to any law, ordinance, rule, regulation, order, policy, guideline or other requirement of any Governmental Authority, if the failure to so retain such records and documents could reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole. SECTION 3.14. No Default. Neither the Borrower nor any Subsidiary is in default under or with respect to any Contractual Obligation that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document. SECTION 3.15. Ownership of Property; Liens. Each of the Borrower and each Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in, all property necessary or used in the ordinary conduct of its business, except for such defects in title as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by Section 6.08. SECTION 3.16. (a) Sanctions and other Anti-Terrorism Laws. No Covered Entity: (i) is a Sanctioned Person, nor any employees, officers, directors, affiliates, consultants, brokers or agents acting on a Covered Entity's behalf in connection with this Agreement is a Sanctioned Person; (ii) directly, or indirectly through any third party, engages in any transactions or other dealings with any Sanctioned Person or Sanctioned Jurisdiction, or which otherwise are prohibited by any laws of the United States or laws of other applicable jurisdictions relating to Sanctions and other Anti-Terrorism Laws; (b) Anti-Corruption Laws; Sanctions and Other Anti-Terrorism Laws. Each Covered Entity has (a) conducted its business in compliance with all Anti-Corruption Laws, Sanctions and other Anti-Terrorism Laws and (b) has instituted and maintains policies and procedures designed to ensure compliance with such laws. SECTION 3.17. EEA Financial Institutions. The Borrower is not an EEA Financial Institution. SECTION 3.18. Certificate of Beneficial Ownership. The Certificate of Beneficial Ownership executed and delivered to the Administrative Agent and Lenders for the Borrower on or prior to the date of this Agreement, as updated from time to time in accordance with this Agreement, is accurate, complete and correct as of the date hereof and as of the date any such update is delivered. SECTION 3.19. Plan Assets; Prohibited Transactions. Neither the Borrower or any of its Subsidiaries is an entity deemed to hold "plan assets" (within the meaning of the Plan Asset Regulations), and neither the execution, delivery nor performance of the transactions contemplated under this Agreement, including the making of any Loan and the issuance of any 781366594 19619932 66

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Letter of Credit hereunder, will give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code. ARTICLE IV CONDITIONS SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): (a) The Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission or email of a PDF (or similar file) of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement. (b) The Administrative Agent shall have received a favorable written opinion (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of counsel for the Borrower, covering such other matters relating to the Borrower, this Agreement or the Transactions as the Administrative Agent shall reasonably request. The Borrower hereby requests such counsel to deliver such opinion. (c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Borrower, the authorization of the Transactions, incumbency and any other legal matters relating to the Borrower, this Agreement or the Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel. (d) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or an Executive Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 4.02 and certifying that there has not been a Material Adverse Change since December 31, 2018. (e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder. (f) The Administrative Agent and each Lender shall have received, in form and substance acceptable to the Administrative Agent and each Lender an executed Certificate of Beneficial Ownership and such other documentation and other information requested in 781366594 19619932 67

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connection with applicable "know your customer" and anti-money laundering rules and regulations, including the USA Patriot Act. (g) All consents and regulatory approvals and licenses required to effectuate the transactions contemplated hereby shall have been obtained and there shall not be any legal or regulatory prohibitions or restrictions on the transactions contemplated hereby. (h) The Credit Agreement dated as of July 30, 2014 among the Borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, shall have been terminated and repaid in full. (i) A duly completed Compliance Certificate as of the last day of the fiscal quarter of Borrower most recently ended prior to the Closing Date, signed by an Executive Officer of Borrower and demonstrating pro forma compliance with the covenants set forth in Sections 6.01, 6.02 and 6.03. (j) The Borrower shall have delivered the financial statements referred to in Section 3.02 and Section 3.03. The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing and of each Issuing Bank to issue, amend or extend any Letter of Credit is subject to the satisfaction of the following conditions: (a) The representations and warranties of the Borrower set forth in this Agreement shall be true and correct on and as of the date of such Borrowing or issuance, amendment or extension of a Letter of Credit before and after giving effect to such Borrowing, issuance, amendment or extension, and after giving effect to the use of proceeds thereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of the date of such earlier date. (b) At the time of and immediately after giving effect to such Borrowing, issuance, amendment or extension, no Default shall have occurred and be continuing. (c) Delivery of a Borrowing Request or request for a Letter of Credit in accordance with Section 2.03 or 2.19, as applicable. Each Borrowing and each issuance, amendment or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 781366594 19619932 68

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ARTICLE V AFFIRMATIVE COVENANTS Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all Reimbursement Obligations and Letter of Credit Borrowings shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: SECTION 5.01. Reports, Certificates and Other Information. Furnish or cause to be furnished to the Administrative Agent and the Lenders: (a) GAAP Financial Statements: (i) Within 50 days after the close of each of the first three Fiscal Quarters of each Fiscal Year of the Borrower, a copy of its Form 10-Q filed with the Securities and Exchange Commission and accompanied by the certification of the chief executive officer, chief financial officer or treasurer of the Borrower that the financial statements set forth therein are complete and correct and present fairly in accordance with GAAP (subject to normal year-end adjustments) the consolidated, or unconsolidated, as the case may be, results of operations and cash flows of the Borrower as at the end of such Fiscal Quarter and for the period then ended. (ii) Within 95 days after the close of each Fiscal Year, a copy of the annual audited consolidated financial statements of the Borrower and its Subsidiaries, consisting of consolidated balance sheets and consolidated statements of income and retained earnings and cash flows, setting forth in comparative form in each case the consolidated figures for the previous Fiscal Year, which financial statements shall be prepared in accordance with GAAP, certified without material qualification by the independent certified public accountants regularly retained by the Borrower, or any other firm of independent certified public accountants of recognized national standing selected by the Borrower and reasonably acceptable to the Required Lenders that all such financial statements are complete and correct and present fairly in accordance with GAAP the consolidated financial position and the consolidated results of operations and cash flows of the Borrower and its Subsidiaries as at the end of such year and for the period then ended. (b) Tax Returns. If requested by the Administrative Agent, copies of all federal, state, local and foreign Tax returns and reports in respect of income, franchise or other Taxes on or measured by income (excluding sales, use or like Taxes) filed by the Borrower or any of its Subsidiaries. (c) SAP Financial Statements: 781366594 19619932 69

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(i) Within 5 days after the applicable regulatory filing date for each of its Fiscal Quarters, but in any event within 50 days after the end of each of the first three Fiscal Quarters of each Fiscal Year of each Insurance Subsidiary a copy of the Quarterly Statement of each Insurance Subsidiary for such Fiscal Quarter, all prepared in accordance with SAP and accompanied by the certification of the chief financial officer or chief executive officer of each Insurance Subsidiary that all such financial statements are complete and correct and present fairly in accordance with SAP the financial position of such Insurance Subsidiary for the periods then ended. (ii) Within 5 days after the applicable regulatory filing date for each of its Fiscal Years, but in any event within 60 days after the end of each Fiscal Year of each Insurance Subsidiary a copy of the Annual Statement of each Insurance Subsidiary for such Fiscal Year prepared in accordance with SAP and accompanied by the certification of the chief financial officer or chief executive officer of each Insurance Subsidiary that such financial statement is complete and correct and presents fairly in accordance with SAP the financial position of such Insurance Subsidiary for the period then ended. (d) Notice of Default, etc. Immediately after an Executive Officer of the Borrower knows or has reason to know of the existence of any Default, or any development or other information which would have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole, telephonic notice specifying the nature of such Default or development or information, including the anticipated effect thereof, which notice shall be promptly confirmed in writing within two (2) Business Days. (e) Other Information. The following certificates and other information related to the Borrower: (i) Within five (5) Business Days of receipt, a copy of any financial examination reports by a Governmental Authority with respect to the Insurance Subsidiaries relating to the insurance business of the Insurance Subsidiaries (when, and if, prepared); provided the Borrower shall only be required to deliver any interim report hereunder at such time as Borrower has knowledge that a final report will not be issued and delivered to the Administrative Agent within 90 days of any such interim report. (ii) Copies of all Insurance Holding Company System Regulatory Act filings with Governmental Authorities in the applicable state of domicile, with respect to any occurrence which might reasonably be expected to have a Material Adverse Effect, by the Borrower or any Subsidiary not later than five (5) Business Days after such filings are made, including, without limitation, filings which seek approval of Governmental Authorities with respect to transactions between the Borrower or such Subsidiary and its Affiliates. (iii) Within five (5) Business Days of such notice, notice of actual suspension, termination or revocation of any material License of the Insurance 781366594 19619932 70

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Subsidiaries by any Governmental Authority or of receipt of notice from any Governmental Authority notifying the Borrower of a hearing (which is not withdrawn within ten (10) days) relating to such a suspension, termination or revocation, including any request by a Governmental Authority which commits the Borrower to take, or refrain from taking, any action or which otherwise materially and adversely affects the authority of the Borrower to conduct its business. (iv) Within five (5) Business Days of such notice, notice of any pending or threatened investigation or regulatory proceeding (other than routine periodic investigations or reviews) by any Governmental Authority concerning the business, practices or operations of the Borrower, including any agent or managing general agent thereof. (v) Promptly upon any change in the rating for Index Debt of the Borrower, notice of such change. (vi) Promptly, such additional financial and other information as the Administrative Agent or any Lender may from time to time reasonably request. (vii) Promptly, such information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable "know your customer" and anti-money laundering rules and regulations, including the Act and the Beneficial Ownership Regulation. (f) Compliance Certificates. Concurrently with the later to occur of delivery to the Administrative Agent of the GAAP financial statements and delivery to the Administrative Agent of the SAP financial statements under Sections 5.01(a) and 5.01(c), for each Fiscal Quarter and Fiscal Year of the Borrower, and at any other time no later than thirty (30) Business Days following a written request of the Administrative Agent, a duly completed Compliance Certificate, signed by an Executive Officer of the Borrower, containing, among other things, a computation of, and showing compliance with, each of the applicable financial ratios and restrictions contained in Sections 6.01 through 6.03, and to the effect that, to the best of such officer's knowledge, as of such date no Default has occurred and is continuing. (g) Reports to SEC and to Shareholders. Promptly upon the filing or making thereof (i) copies of each filing and report made by the Borrower or any of its Subsidiaries with or to any securities exchange or the Securities and Exchange Commission and (ii) of each communication from the Borrower to shareholders generally; provided that only those items described in clauses (i) and (ii) of this Section 5.01(g) which are material to the interest of the Lenders hereunder shall be provided to the Administrative Agent and the Lenders hereunder. (h) Notice of Litigation, License and ERISA Matters. Upon learning of the occurrence of any of the following, written notice thereof, describing the same and the steps being taken by the Borrower with respect thereto: (i) the institution of, or any adverse determination in, any litigation, arbitration proceeding or governmental proceeding (including any IRS, Department of Labor, or Pension Benefit Guaranty Corporation proceeding with respect 781366594 19619932 71

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to any Plan) which could, if adversely determined, be reasonably expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole and which is not Ordinary Course Litigation, (ii) the failure of any Person in the Controlled Group to make a required contribution to any Plan in an amount sufficient to give rise to a Lien under section 303(k) of ERISA or 430(k) of the Code, (iii) the institution of any steps by any entity in the Controlled Group to withdraw from a Plan subject to section 4063 of ERISA or from a Multiemployer Plan, or the institution of any steps by any entity in the Controlled Group or any other Person to terminate any Plan (other than in a standard termination within the meaning of section 4041(b) of ERISA), or the taking of any action with respect to a Plan which could result in the requirement that the Borrower or any of its Subsidiaries furnish a bond or other security to such Plan, or the occurrence of any event with respect to any Plan which could result in the incurrence by the Borrower or any of its Subsidiaries of any material liability (other than a liability for contributions or premiums), fine or penalty, (iv) the commencement of any dispute which might lead to the modification, transfer, revocation, suspension or termination of this Agreement or any Loan Document or (v) any event which could be reasonably expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole. (i) Beneficial Ownership Certification. Promptly, (i) upon request by the Administrative Agent, confirmation of the accuracy of the information set forth in the most recent Certificate of Beneficial Ownership provided to the Administrative Agent and Lenders; (ii) a new Certificate of Beneficial Ownership, in form and substance acceptable to the Administrative Agent and each Lender, when the individual(s) identified in the Certificate of Beneficial Ownership have changed; and (iii) such other information and documentation as may reasonably be requested by Agent or any Lender from time to time for purposes of compliance by Agent or such Lender with applicable laws (including without limitation the USA Patriot Act and other "know your customer" and anti-money laundering rules and regulations), and any policy or procedure implemented by the Administrative Agent or such Lender to comply therewith. (j) Other Information. From time to time such other information concerning the Borrower or any Subsidiary as the Administrative Agent or any Lender may reasonably request. Documents required to be delivered pursuant to Section 5.01(a), (c) or (g) (to the extent any such documents are included in materials otherwise filed with the SEC or otherwise publicly available) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto, on its website on the internet at the website address listed in Section 9.01; or (ii) on which such documents are posted on its behalf on an internet or intranet website, if any, to which the Administrative Agent and each Lender has access (whether a commercial, third-party website or whether sponsored by the Administrative Agent). SECTION 5.02. Corporate Existence; Foreign Qualification. Do and cause to be done at all times all things necessary to (a) maintain and preserve the corporate existence of the Borrower, (b) be, and ensure that each Subsidiary of the Borrower is, duly qualified to do business and be in good standing as a foreign corporation in each jurisdiction where the nature of 781366594 19619932 72

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its business makes such qualification necessary, and (c) do or cause to be done all things necessary to preserve and keep in full force and effect the Borrower's corporate existence. SECTION 5.03. Books, Records and Inspections. (a) Maintain, and cause each of its Subsidiaries to maintain, materially complete and accurate books and records, (b) permit, and cause each of its Subsidiaries to permit, access at reasonable times by the Administrative Agent and the Lenders to its books and records, (c) permit, and cause each of its Subsidiaries to permit, the Administrative Agent, the Lenders or their respective designated representatives to inspect at reasonable times its properties and operations, and (d) permit, and cause each of its Subsidiaries to permit, the Administrative Agent and the Lenders to discuss its business, operations and financial condition with its officers. SECTION 5.04. Insurance. Maintain, and cause each of its Subsidiaries to maintain, Insurance Policies to such extent and against such hazards and liabilities as is required by law (including any flood insurance required to be maintained by applicable law) or customarily maintained by prudent companies similarly situated. SECTION 5.05. Taxes and Liabilities. Pay, and cause each of its Subsidiaries to pay, when due all material Taxes, assessments and other material liabilities except as contested in good faith and by appropriate proceedings with respect to which reserves have been established, and are being maintained, in accordance with GAAP if and so long as such contest could not reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole. SECTION 5.06. Compliance with Laws. Comply, and cause each of its Subsidiaries to comply, (a) with all federal, state and local laws, rules and regulations related to its businesses (including, without limitation, the establishment of all insurance reserves required to be established under SAP and applicable laws restricting the investments of the Borrower), and (b) with all Contractual Obligations binding upon such entity, except where failure so to comply would not in the aggregate have a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole. SECTION 5.07. Conduct of Business. Engage on a consolidated basis with its Subsidiaries primarily in the same business in which the Borrower and its Subsidiaries are engaged on the date hereof. SECTION 5.08. Maintenance of Properties. Maintain, preserve and protect and cause each of its Subsidiaries to maintain, preserve and protect, all of its material properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted. SECTION 5.09. Use of Proceeds. Use proceeds of the Loans only to fund working capital, capital expenditures and for general corporate purposes (including acquisitions permitted by this Agreement). No part of the proceeds of any Loan or Letters of Credit will be used, whether directly or indirectly, for any purpose that entails a violation of any Regulations of the Board (including Regulations T, U and X), Anti-Terrorism Laws. 781366594 19619932 73

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781366594 19619932 74 SECTION 5.10. Accuracy Of Information. Ensure that any information, including financial statements or other documents, furnished to the Administrative Agent or the Lenders in connection with this Agreement or any amendment or modification hereof or waiver hereunder contains no material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and the furnishing of such information shall be deemed to be representation and warranty by the Borrower on the date thereof as to the matters specified in this Section 5.10. SECTION 5.11. Sanctions and other Anti-Terrorism Laws; Anti-Corruption Laws. (a) The Borrower covenants and agrees that it shall immediately notify the Administrative Agent and each of the Lenders in writing upon the occurrence of a Reportable Compliance Event. (b) Each Covered Entity will conduct their business in compliance with all Anti-Corruption Laws, Sanctions and other Anti-Terrorism Laws and maintain policies and procedures designed to ensure compliance with such laws. ARTICLE VI NEGATIVE COVENANTS Until the Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated, in each case, without any pending draw, and all Reimbursement Obligations and Letter of Credit Borrowings shall have been reimbursed, the Borrower covenants and agrees with the Lenders that: SECTION 6.01. Consolidated Debt to Total Capitalization. Not permit the ratio of (a) the principal amount of Consolidated Debt to (b) the sum of (i) Net Worth plus (ii) Consolidated Debt to exceed 0.35 to 1.0 at any time. SECTION 6.02. Net Worth. Not permit its Net Worth at any time to be less than the Minimum Net Worth. "Minimum Net Worth" means $970,300,00011,233,600,000 plus 50% of equity contributions after March 31, 20192025, excluding unrealized gains and losses; provided that on each March 31, commencing March 31, 2020, if 80% of the consolidated net worth of the Borrower and its Subsidiaries, calculated in accordance with GAAP, is greater than the Minimum Net Worth, the Minimum Net Worth shall be increased to such greater amount.. SECTION 6.03. Minimum Risk Based Capital. The Borrower shall not permit the Life Subsidiaries (taken as a whole) or the P/C Subsidiaries (taken as a whole) to maintain, as of the end of any Fiscal Year, a ratio (expressed as a percentage) of (a) Total Adjusted Capital (as defined in the Risk-Based Capital (RBC) for Insurers Act in the applicable state of domicile or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) to (b) 1 80% of Net Worth as of March 31, 2019.

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the Company Action Level RBC (as defined in the Risk-Based Capital Act or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) of less than 300%. SECTION 6.04. Mergers, Consolidations and Sales. Not, and not permit any of its Subsidiaries to, (a) merge or consolidate, or purchase or otherwise acquire all or substantially all of the assets or stock of any class of, or any partnership or joint venture interest in, any other Person, other than mergers or acquisitions where the corporate existence of the Borrower is not affected by such merger or acquisition and, subsequent to such merger or acquisition, the Borrower is in compliance with all the provisions of this Agreement and no Default shall exist, or (b) sell, transfer, convey or lease all or any substantial part of its assets or sell or assign with or without recourse any receivables, other than any sale, transfer, conveyance or lease in the ordinary course of business. SECTION 6.05. Regulations T, U and X. Not, and not permit any of its Subsidiaries to, use or permit any proceeds of the Loans to be used, either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of purchasing or carrying margin stock, as defined in Regulation U of the Board. SECTION 6.06. Restrictive Agreements. Not, and not permit any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to the Borrower or any other Subsidiary or to guarantee Debt of the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.06 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), and (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Debt permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of the foregoing shall not apply to customary provisions in leases and other contracts restricting the assignment thereof.. SECTION 6.07. Transactions with Affiliates. Not, and not permit any Subsidiary to, enter into, or cause, suffer or permit to exist, directly or indirectly, any arrangement, transaction or contract with any of its Affiliates unless such arrangement, transaction or contract is in the ordinary course of business, reasonably intended to satisfy the reasonable business requirements of the Borrower or such Subsidiary, and on terms and conditions at least as favorable to the Borrower or such Subsidiary as the terms and conditions which would apply in a similar arrangement, transaction or contract with a Person or entity not an Affiliate; provided that transactions between the Borrower and any wholly-owned Subsidiary of the Borrower or 781366594 19619932 75

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between any wholly-owned Subsidiaries of the Borrower shall be excluded from the restrictions set forth in this Section 6.07. SECTION 6.08. Liens. Not, and not permit any of its Subsidiaries to, create or permit to exist any Lien with respect to any assets now or hereafter existing or acquired, except the following: (a) Liens for current taxes not delinquent or for taxes being contested in good faith and by appropriate proceedings and with respect to which adequate reserves have been established, and are being maintained, in accordance with GAAP, (b) Liens arising in the ordinary course of business or by operation of law for sums being contested in good faith and by appropriate proceedings and with respect to which adequate reserves have been established, and are being maintained, in accordance with GAAP, or for sums not due, and in either case not involving any deposits or advances for borrowed money or the deferred purchase price of property or services, (c) Liens in connection with the acquisition of fixed assets after the date hereof and attaching only to the property being acquired, (d) Liens incurred in the ordinary course of business in connection with workers' compensation, unemployment insurance or other forms of governmental insurance or benefits, (e) mechanics', workers', materialmen's and other like Liens arising in the ordinary course of business in respect of obligations which are not delinquent or which are being contested in good faith and by appropriate proceedings and with respect to which adequate reserves have been established, and are being maintained, in accordance with GAAP, (f) Liens securing FHLB Operating Debt, FHLB Liquidity Debt and Securities Lending and (g) other Liens securing Debt which Debt does not in the aggregate exceed $5,000,000; provided, however, that, no Lien shall be permitted to exist on the shares of stock of any of its Subsidiaries. SECTION 6.09. Subsidiary Debt. Not permit the aggregate amount of Debt of its Subsidiaries at any time outstanding to exceed $20,000,000, plus, solely with respect to any Insurance Subsidiary, FHLB Operating Debt. SECTION 6.10. Securities Lending. Not permit the aggregate market value of securities subject to Securities Lending for any Insurance Subsidiary to exceed at any time an amount equal to the Threshold Amount applicable to such Insurance Subsidiary less the aggregate amount of FHLB Operating Debt outstanding at such time for such Insurance Subsidiary; provided that for purposes of this Section 6.10, the market value of any security subject to Securities Lending shall be measured as of the time the applicable Securities Lending transaction was entered into. SECTION 6.11. Sanctions and other Anti-Terrorism Laws. The Borrower hereby covenants and agrees that until the Maturity Date, the Borrower will not, and will not permit any its Subsidiaries to: (a) become a Sanctioned Person or allow its employees, officers, directors, affiliates, consultants, brokers, and agents acting on its behalf in connection with this Agreement to become a Sanctioned Person; (b) directly, or, to its knowledge, indirectly through a third party, engage in any transactions or other dealings with any Sanctioned Person or Sanctioned Jurisdiction, including any use of the proceeds of the Loans to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Person or Sanctioned Jurisdiction; (c) repay the Loans with funds derived from any unlawful activity; (d) engage in any transactions or other dealings with any Sanctioned Person or Sanctioned Jurisdiction prohibited by any laws of the United States or other applicable jurisdictions relating to economic 781366594 19619932 76

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sanctions and any Anti-Terrorism Laws; or (f) cause any Lender or Administrative Agent to violate any sanctions administered by OFACSanctions. SECTION 6.12. Anti-Corruption Laws. The Borrower hereby covenants and agrees that until the Maturity Date, the Borrower will not, and will not permit any its Subsidiaries to directly or indirectly, use the Loans or any proceeds thereof for any purpose which would breach any Anti-Corruption Laws in any jurisdiction in which any Covered Entity conducts business. ARTICLE VII EVENTS OF DEFAULT If any of the following events ("Events of Default") shall occur: (a) Non-Payment of Loan. Default in the payment when due of any principal on the Loans or any reimbursement obligation in respect of any Reimbursement Obligations and Letter of Credit Borrowings; (b) Non-Payment of Interest, Fees, Etc. Default, and continuance thereof for 3 Business Days, in the payment when due of interest on the Loans or of any other amount payable hereunder or under the Loan Documents; (c) Non-Payment of Other Debt. (i) Default in the payment when due (subject to any applicable grace period), whether by acceleration or otherwise, of any other Debt of, or guaranteed by, the Borrower or any of its Subsidiaries if the aggregate amount of Debt of the Borrower and/or any of its Subsidiaries which is accelerated or due and payable, or which may be accelerated or otherwise become due and payable, by reason of such default or defaults is $20,000,000 or more, or (ii) default in the performance or observance of any obligation or condition with respect to any such other Debt of, or guaranteed by, the Borrower and/or any of its Subsidiaries if the effect of such default or defaults is to accelerate the maturity of any such Debt of $20,000,000 or more in the aggregate or to permit the holder or holders of such Debt of $20,000,000 or more in the aggregate, or any trustee or agent for such holders, to cause such Debt to become due and payable prior to its expressed maturity; (d) Other Material Obligations. Except for obligations covered under other provisions of this Article VII, default in the payment when due, or in the performance or observance of, any material obligation of, or material condition agreed to by, the Borrower or any of its Subsidiaries with respect to any material purchase or Lease Obligation (except only to the extent that the existence of any such default is being contested by the Borrower in good faith and by appropriate proceedings and the Borrower has established, and is maintaining, adequate reserves therefor in accordance with GAAP) which default continues for a period of 30 days; (e) Bankruptcy, Insolvency, Etc. (i) (A) The Borrower becomes insolvent or generally fails to pay, or admits in writing its inability to pay, debts as they become due; or (B) the Borrower applies for, consents to, or acquiesces in the appointment of, a trustee, receiver or other custodian or similar Person for the Borrower or any property of any thereof, or makes a general assignment for the benefit of creditors; or (C) in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian or similar Person is appointed for the 781366594 19619932 77

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Borrower or for a substantial part of the property of any thereof, unless (1) the Borrower institutes appropriate proceedings to contest or discharge such appointment within 30 days and thereafter continuously and diligently prosecutes such proceedings and (2) such appointment is in fact discharged within 60 days of such appointment; or (D) any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding is commenced in respect of the Borrower, unless (1) such case or proceeding is not commenced by the Borrower, (2) such case or proceeding is not consented to or acquiesced in by the Borrower, (3) the Borrower institutes appropriate proceedings to dismiss such case or proceeding within 30 days and thereafter continuously and diligently prosecutes such proceedings, and (4) such case or proceeding is in fact dismissed within 60 days after the commencement thereof; or (E) the Borrower takes any action to authorize, or in furtherance of, any of the foregoing; or (ii) (A) there shall be commenced against any Insurance Subsidiary any case, proceeding or other action (1) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, supervision, conservatorship, liquidation, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, rehabilitation, conservation, supervision, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, obligations or liabilities, or (2) seeking appointment of a receiver, trustee, custodian, rehabilitator, conservator, supervisor, liquidator or other similar official for it or for all or any substantial part of its assets, in each case which (x) results in the entry of an order for relief or any such adjudication or appointment or (y) remains undismissed, undischarged or unbonded for a period of 60 days; or (B) there shall be commenced against any of such Subsidiaries any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (C) any of such Subsidiaries shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (ii)(A) or (B) above; or (D) any Governmental Authority shall issue any order of conservation, supervision or any other order of like effect relating to any of such Subsidiaries; (f) Non-compliance with Certain Provisions. Failure of the Borrower to comply with the provisions of each of Sections 5.01(d), 5.01(h), 5.02(a), 6.01, 6.02, 6.03, 6.04, 6.07, 6.08, 6.09, 6.11 or 6.12; (g) Non-compliance With Other Provisions. Failure by the Borrower to comply with or to perform any provision of this Agreement or the other Loan Documents (and not constituting an Event of Default under any of the other provisions of this Article VII) and continuance of such failure for 30 days after notice thereof from the Administrative Agent to the Borrower; (h) Warranties and Representations. Any warranty or representation made by or on behalf of the Borrower or any Subsidiary herein is inaccurate or incorrect or is breached or false or misleading in any material respect as of the date such warranty or representation is made; or any schedule, certificate, financial statement, report, notice, or other instrument furnished by or on behalf of Borrower or any Subsidiary to the Administrative Agent or the Lenders is false or 781366594 19619932 78

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misleading in any material respect on the date as of which the facts therein set forth are stated or certified; (i) Employee Benefit Plans. Any of the following occurs: (i) a contribution failure occurs with respect to any Plan sufficient to give rise to a Lien against the Borrower or any of its Subsidiaries under section 303(k) of ERISA or 430(k) of the Code or a Lien arises against the Borrower or any of its Subsidiaries under section 4068 of ERISA, (ii) a withdrawal by one or more entities in the Controlled Group from one or more Plans subject to section 4063 of ERISA or from one or more Multiemployer Plans to which it or they have an obligation to contribute and the withdrawal liability (without unaccrued interest) to such Plans or Multiemployer Plans as a result of such withdrawal or withdrawals (including any outstanding withdrawal liability that any entity in the Controlled Group has incurred on the date of such withdrawal) is in excess of $20,000,000, (iii) the termination of one or more Plans and the liability of the entities in the Controlled Group with respect to such terminated Plan or Plans is in excess of $20,000,000; (j) Change in Control. A Change in Control occurs; (k) Litigation. (i) There shall be entered against the Borrower or any of its Subsidiaries one or more judgments, awards or decrees, or orders of attachment, garnishment or any other writ, which exceed $50,000,000, individually or in the aggregate, excluding judgments, awards, decrees, orders or writs (A) for which there is insurance, but only to the extent there is actual insurance coverage, (B) for which there is indemnification (upon terms and from creditworthy indemnitors which are satisfactory to Administrative Agent), but only to the extent there is actual indemnification, (C) which have been in force for less than the applicable period for filing an appeal so long as execution is not levied thereunder (or in respect of which the Borrower or its appropriate Subsidiary shall at the time in good faith be prosecuting an appeal or proceeding for review and in respect of which a stay of execution or appropriate appeal bond shall have been obtained pending such appeal or review), (D) which constitute Ordinary Course Litigation, or (E) which are reserved for, to the actual extent of reserves or (ii) there has been a final judgment or final judgments for the payment of money exceeding, in the aggregate, $50,000,000 rendered against the Borrower or any of its Subsidiaries by a court of competent jurisdiction and such judgment(s) remain undischarged for a period (during which execution shall not be effectively stayed) of 60 days after such judgment(s) become final and nonappealable; (l) Change in Law. Any change is made in the Insurance Code which affects the dividend practices of any Insurance Subsidiary and which is reasonably likely to have a Material Adverse Effect on the ability of the Borrower to perform its obligations under the Agreement and such circumstances shall continue for 120 days; or (m) Invalidity of Loan Documents. Any Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all principal of and interest on each Loan and all fees payable hereunder, ceases to be in full force and effect; or the Borrower or any other Person contests in any manner the validity or enforceability of any Loan Document; or the Borrower denies that it 781366594 19619932 79

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has any or further liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan Document; then, and in every such event (other than an event with respect to the Borrower described in clause (e) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (e) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable and the obligation to cash collateralize any LC Exposure shall automatically become effective, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower, (iii) require that the Borrower provide cash collateral as required in Section 2.19(j), and (iv) exercise on behalf of itself, the Lenders and the Issuing Banks all rights and remedies available to it, the Lenders and the Issuing Banks under the Loan Documents and applicable law. Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Administrative Agent by the Borrower or the Required Lenders: (a) all payments received on account of the Obligations shall, subject to Section 2.17, be applied by the Administrative Agent as follows: (i) first, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts payable to the Administrative Agent (including fees and disbursements and other charges of counsel to the Administrative Agent payable under Section 9.03 and amounts pursuant to Section 2.09(b) payable to the Administrative Agent in its capacity as such); (ii) second, to payment of that portion of the Obligations constituting fees, expenses, indemnities and other amounts (other than principal, reimbursement obligations in respect of Reimbursement Obligations, Letter of Credit Borrowings interest and Letter of Credit fees) payable to the Lenders and the Issuing Banks (including fees and disbursements and other charges of counsel to the Lenders and the Issuing Banks payable under Section 9.03) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause (ii) payable to them; (iii) third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit fees and charges and interest on the Loans and unreimbursed 781366594 19619932 80

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Reimbursement Obligations and Letter of Credit Borrowings, ratably among the Lenders and the Issuing Banks in proportion to the respective amounts described in this clause (iii) payable to them; (iv) fourth, (A) to payment of that portion of the Obligations constituting unpaid principal of the Loans and unreimbursed Reimbursement Obligations and Letter of Credit Borrowings and (B) to cash collateralize that portion of LC Exposure comprising the undrawn amount of Letters of Credit to the extent not otherwise cash collateralized by the Borrower pursuant to Section 2.17 or 2.19, ratably among the Lenders and the Issuing Banks in proportion to the respective amounts described in this clause (iv) payable to them; provided that (x) any such amounts applied pursuant to subclause (B) above shall be paid to the Administrative Agent for the ratable account of the applicable Issuing Banks to cash collateralize Obligations in respect of Letters of Credit, (y) subject to Section 2.17 or 2.19, amounts used to cash collateralize the aggregate amount of Letters of Credit pursuant to this clause (iv) shall be used to satisfy drawings under such Letters of Credit as they occur and (z) upon the expiration of any Letter of Credit (without any pending drawings), the pro rata share of cash collateral shall be distributed to the other Obligations, if any, in the order set forth in this Article VII; (v) fifth, to the payment in full of all other Obligations, in each case ratably among the Administrative Agent, the Lenders and the Issuing Banks based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable; and (vi) finally, the balance, if any, after all Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by law; and (b) if any amount remains on deposit as cash collateral after all Letters of Credit have either been fully drawn or expired (without any pending drawings), such remaining amount shall be applied to the other Obligations, if any, in the order set forth above. ARTICLE VIII THE ADMINISTRATIVE AGENT Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto. The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of 781366594 19619932 81

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whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Borrower, a Lender or an Issuing Bank, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time upon 10 Business Days' notice to the Lenders, the Issuing Banks and the Borrower. Upon any such resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor. 781366594 19619932 82

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If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the Administrative Agent's resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent. Each Lender and Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or Issuing Bank and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder. Erroneous Payments. (a) If the Administrative Agent notifies a Lender or Issuing Bank, or any Person who has received funds on behalf of a Lender or Issuing Bank such Lender or Issuing Bank (any such Lender, Issuing Bank, or other recipient, a "Payment Recipient") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding clause (b)) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "Erroneous Payment") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender or Issuing Bank shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the 781366594 19619932 83

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currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error. (b) Without limiting immediately preceding clause (a), each Lender or Issuing Bank, or any Person who has received funds on behalf of a Lender or Issuing Bank such Lender or Issuing Bank, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case: (i) (A) in the case of immediately preceding clauses (x) or (y), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and (ii) such Lender or Issuing Bank shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section titled "Erroneous Payments". (c) Each Lender or Issuing Bank hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender or Issuing Bank under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender or Issuing Bank from any source, against any amount due to the Administrative Agent under immediately preceding clause (a) or under the indemnification provisions of this Agreement. 781366594 19619932 84

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(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding clause (a), from any Lender or Issuing Bank that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "Erroneous Payment Return Deficiency"), upon the Administrative Agent's notice to such Lender or Issuing Lender at any time, (i) such Lender or Issuing Bank shall be deemed to have assigned its Loans (but not its Commitments) in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments), the "Erroneous Payment Deficiency Assignment") at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Assumption with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Bank shall deliver any Notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuing Bank shall cease to be a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender or assigning Issuing Bank and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Bank shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender or Issuing Bank (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Bank and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender or Issuing Bank under the Loan Documents 781366594 19619932 85

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with respect to each Erroneous Payment Return Deficiency (the "Erroneous Payment Subrogation Rights"). (e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Loan Party for the purpose of making such Erroneous Payment. (f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine. Each party's obligations, agreements and waivers under this Section titled "Erroneous Payments" shall survive the resignation or replacement of the Administrative Agent, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document. ARTICLE IX MISCELLANEOUS SECTION 9.01. Notices; Electronic Communication. (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in Section 9.01(c)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier (i) if to a Lender, to it at its address set forth in its Administrative Questionnaire, or (ii) if to any other Person, to it at its address set forth on Schedule 1.1(B). Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient). Notices delivered through electronic communications to the extent provided in Section 9.01(b), shall be effective as provided in such Section. (b) Electronic Communications. Notices and other communications to the Lenders and the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank if such Lender or the Issuing Bank, as applicable, has notified the 781366594 19619932 86

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Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. (c) Change of Address, Etc. Any party hereto may change its address, e mail address or telecopier number for notices and other communications hereunder by notice to the other parties hereto. SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative Agent, any Issuing Bank or any Lender in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of such Default at the time. (b) Subject to Section 2.11(b), neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan, Reimbursement Obligations or Letter of Credit Borrowings or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan, Reimbursement Obligation or Letter of Credit Borrowings, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 2.15(b) or (c) or the last sentence of Section 2.06(c) in a manner that would alterhave the effect 781366594 19619932 87

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of altering the ratable reduction of Commitments or the pro rata sharing of payments otherwise required thereby, without the written consent of each Lender, or (v) subordinate, or have the effect of subordinating, the Obligations hereunder to any other indebtedness, or (vi) change any of the provisions of this Section or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender; provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent hereunder without the prior written consent of the Administrative Agent and no such agreement shall amend, modify or otherwise affect the rights or duties of the Issuing Bank hereunder without the prior written consent of the Issuing Bank. SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank, the Arrangers and any of their respective Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication of the credit facility provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iii) all out-of-pocket expenses incurred by the Administrative Agent, the Issuing Banks or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Banks or any Lender, in connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section, or in connection with the Loans made and the Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans and Letters of Credit. (b) The Borrower shall indemnify the Administrative Agent, the Arrangers, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an "Indemnitee") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties hereto of their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by an Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful 781366594 19619932 88

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misconduct of such Indemnitee. This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim. (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the Administrative Agent under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent and each Issuing Bank and each Related Party of the foregoing Persons such Lender's Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent or the Issuing Bank or such Related Party in its capacity as such. (d) To the extent permitted by applicable law (i) the Borrower shall not assert, and the Borrower hereby waives, any claim against any Indemnitee for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic or other information transmission systems (including the Internet), and (ii) no party hereto shall assert, and each such party hereby waives, any claim against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this clause (d)(ii) shall relieve the Borrower of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party. (e) All amounts due under this Section shall be payable not later than 10 Business Days after written demand therefor. SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit), the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders any legal or equitable right, remedy or claim under or by reason of this Agreement. (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and 781366594 19619932 89

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the Loans and participations in Letters of Credit at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of: (A) the Borrower, provided that, the Borrower shall be deemed to have consented to an assignment unless it shall have objected thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof; provided, further, that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; (B) each Issuing Bank; and (C) the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment of any Commitment to an assignee that is a Lender with a Commitment immediately prior to giving effect to such assignment. As used herein, "Ineligible Institution" means a (a) natural person, (b) Defaulting Lender or its Parent, (c) holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof or (d) the Borrower or any of its Affiliates; provided that, with respect to clause (c), such holding company, investment vehicle or trust shall not constitute an Ineligible Institution if it (x) has not been established for the primary purpose of acquiring any Loans or Commitments, (y) is managed by a professional advisor, who is not such natural person or a relative thereof, having significant experience in the business of making or purchasing commercial loans, and (z) has assets greater than $25,000,000 and a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary course of its business. (ii) Assignments shall be subject to the following additional conditions: (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender's Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing; (B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement; 781366594 19619932 90

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(C) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; and (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its related parties or its securities) will be made available and who may receive such information in accordance with the assignee's compliance procedures and applicable laws, including Federal and state securities laws. (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.12, 2.13, 2.14 and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section. (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans, Reimbursement Obligations and Letter of Credit Borrowings owing to, each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent, the Issuing Banks and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Banks and any Lender, at any reasonable time and from time to time upon reasonable prior notice. (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee's completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this 781366594 19619932 91

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Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.04(b), 2.15(d) or 9.03(c), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. (c) Any Lender may, without the consent of the Borrower, the Issuing Banks or the Administrative Agent, sell participations to one or more banks or other entities (a "Participant"), other than an Ineligible Institution, in all or a portion of such Lender's rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrower, the Issuing Banks, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.12, 2.13 and 2.14 (subject to the requirements and limitations therein, including the requirements under Section 2.14(f) (it being understood that the documentation required under Section 2.14(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.15 and 2.16 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.12 or 2.14, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided that such Participant agrees to be subject to Section 2.15(c) as though it were a Lender. Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under this Agreement (the "Participant Register"); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant's interest in any Commitments, Loans or its other obligations under any Loan Document) except to the extent that such disclosure is necessary to establish that such Commitment, Loan or other obligation is in registered form 781366594 19619932 92

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under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. (d) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Borrower herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Banks or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid, any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Sections 2.12, 2.13, 2.14 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit, the expiration or termination of the Commitments or the termination of this Agreement or any provision hereof. SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreement with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement. SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and 781366594 19619932 93

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enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to setoff and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other obligations at any time owing, by such Lender, such Issuing Bank or any such Affiliate, to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Loan Document to such Lender or such Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, Issuing Bank or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender or such Issuing Bank different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so setoff shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.17 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender, each Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such Issuing Bank or their respective Affiliates may have. Each Lender and Issuing Bank agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application. SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State of Illinois. (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Circuit Court of the State of Illinois sitting in Cook County, Illinois and of the United States District Court for the Northern District of Illinois, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such Illinois State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction. 781366594 19619932 94

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(c) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. (d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law. SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. SECTION 9.11. Headings. Article and Section headings and the **Table of Contents** used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. SECTION 9.12. Confidentiality. (a) Each of the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any regulatory authority, (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement, (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors) to any swap or, securitization, derivative or other transaction relatingunder which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder or (C) a potential or actual insurer or reinsurer in connection with providing insurance, reinsurance or credit risk mitigation coverage under which payments are to be made or may be made by reference to this Agreement, (vii) with the consent of the Borrower or (viii) to the extent such Information (A) becomes publicly available other than as a result of a breach of this Section 781366594 19619932 95

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or (B) becomes available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the Borrower. For the purposes of this Section, "Information" means all information received from the Borrower relating to the Borrower or its business, other than any such information that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Borrower; provided that, in the case of information received from the Borrower after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. (b) EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12(a) FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS. (c) ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER AND ITS RELATED PARTIES OR ITS SECURITIES. ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW. SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the "Charges"), shall exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together 781366594 19619932 96

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with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. SECTION 9.14. USA PATRIOT Act. Each Lender that is subject to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act") hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Act. SECTION 9.15. No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby, the Borrower acknowledges and agrees that: (i) the credit facility provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm's-length commercial transaction between the Borrower, on the one hand, and the Administrative Agent and the Arrangers, on the other hand, and the Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, the Administrative Agent and the Arrangers each is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person; (iii) neither the Administrative Agent nor any Arranger has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether the Administrative Agent or any Arranger has advised or is currently advising the Borrower or its Affiliates on other matters) and neither the Administrative Agent nor any Arranger has any obligation to the Borrower or its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Administrative Agent and each Arranger and its respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower and its Affiliates, and neither the Administrative Agent nor any Arranger has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) neither the Administrative Agent nor any Arranger has provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. The Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against the Administrative Agent and the Arrangers with respect to any breach or alleged breach of agency or fiduciary duty. SECTION 9.16. Acknowledgment and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan 781366594 19619932 97

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Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable: (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority. SECTION 9.17. Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedging Obligations or any other agreement or instrument that is a QFC (such support "QFC Credit Support" and each such QFC a "Supported QFC"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States): In the event a QFC Covered Entity that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be 781366594 19619932 98

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exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support. Section 9.18 Certain ERISA Matters. (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and the Arrangers and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true: (i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement, (ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, (iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84¬14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or (iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender. (b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and 781366594 19619932 99

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covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto). [Signature pages follow.] 781366594 19619932 100

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. BORROWER: HORACE MANN EDUCATORS CORPORATION By:_______________________________ Name: Title: By:_______________________________ Name: Title: 781366594 19619932 S-1 Credit Agreement

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PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent By:________________________________ Name: Title: 781366594 19619932 S-2 Credit Agreement

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JPMORGAN CHASE BANK, N.A., as Joint Lead Arranger and Syndication Agent By:____________________________________ Name: Title: 781366594 19619932 S-3 Credit Agreement

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LENDERS PNC BANK, NATIONAL ASSOCIATION, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-4 Credit Agreement

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JPMORGAN CHASE BANK, N.A., as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-5 Credit Agreement

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THE NORTHERN TRUST COMPANY, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-6 Credit Agreement

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U.S. BANK NATIONAL ASSOCIATION, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-7 Credit Agreement

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COMERICA BANK, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-8 Credit Agreement

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ILLINOIS NATIONAL BANK, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-9 Credit Agreement

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KEYBANK NATIONAL ASSOCIATION, as a Lender By:___________________________________ Name: Title: 781366594 19619932 S-10 Credit Agreement

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Schedule 1.1(B) Notices If to the Borrower: Horace Mann Educators Corporation One Horace Mann Plaza Springfield, IL 62715-001 Attn: Troy Gayle Telephone: 217.788.5328 Facsimile: 217.788.5796 Email: troy.gayle@horacemann.com Website: www.horacemann.com If to the Administrative Agent: Name: PNC Bank, National Association Address: One North Franklin Chicago, IL 60606 Attention: Nicole Limberg Telephone: (312) 384-4650 Telecopy: (312) 338-8149 With a Copy To: Name: Agency Services, PNC Bank, National Association Mail Stop: P7-PFSC-05-W Address: 500 First Avenue Pittsburgh, PA 15219 Attention: Agency Services Telephone: 412-762-4799 Fax number 412-768-2296 781366594 19619932

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781366594 19619932 $50,000,00040,000,000 Lender U.S. Bank National AssociationThe Northern Trust Company $35,000,00040,000,000 JPMorgan ChaseBMO Bank, N.A. Commitment INB, National Association $60,000,00065,000,000 $25,000,00020,000,000 Schedule 2.01 Commitments Comerica Bank $20,000,00015,000,000 The Northern Trust Company JPMorgan Chase Bank, N.A. $50,000,00065,000,000 PNC Bank, National Association TOTAL: $325,000,000 KeyBank National Association $85,000,00080,000,000

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781366594 19619932 X 01-31-64 Georgia 01-31-64 12-22-87 02-09-78 03-25-65 07-02-07 Schedule 3.01 Jurisdictions CERTIFICATES OF AUTHORITY BY STATE AND DATE ISSUED Attached. 04-05-61 08-18-67 02-02-62 X Alabama Hawaii X TIC 08-25-87 Colorado 02-01-85 X 06-05-64 12-19-66 Idaho 09-05-73 12-16-68 04-16-73 11-13-81 05-26-88 05-09-60 11-02-56 Arizona X 12-31-84 04-18-73 Illinois X 01-31-64 \* 05-27-59 03-09-77 \* 04-25-75\* HMP&C IC 08-09-49 \* Connecticut 12-31-84\* 11-12-74 08-13-7 3\* 06-28-74 08-20-03 Indiana 11-18-99 05-01-68 06-09-80 12-01-77 11-18-99 01-15-98 05-01-57 11-20-78 07-15-59 X 12-15-58 Iowa X 12-29-64 08-21-57 05-04-73 11-26-74 HMLIC 08-01-52 Delaware X X 06-02-59 Kansas 03-02-71 01-31-64 09-13-96 09-25-98 12/21/99 STATE 11-12-61 12-08-55 Arkansas X X Kentucky X 01-31-64 01-31-64 08-02-64 11-01-99 ELICA 02-21-69 Dist. of Col. 10-06-77 X 08-20-59 Louisiana 01-30-73 12-23-58 11-19-75 11-14-73 05-01-97 09-30-99 05-16-61 12-03-65 05-06-50 X Alaska Maine X 06-01-70 05-04-88 12-30-98 HMSC 09-02-60 Florida X X 09-23-63 01-31-64 08-19-76 04-02-10 HMIC 07-16-62 California 08-15-66 03-26-73

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781366594 19619932 09-09-68 10- -61 05/31/19 X X New Mexico 01-10-68 03-01-64 08-15-73 X 01-03-03 Missouri 05-21-56 HMP&C IC 03-01-64 X 07-19-88 New York 10-29-91 01-31-64 11-25-74 06-17-02 Michigan 03-27-00 06-27-60 STATE X 03-19-59 X North Carolina 03-31-98 10-18-68 07-01-74 12-14-77 03-05-98 Montana 07-10-59 HMLIC 01-31-64 X 02-23-99 06-01-73 North Dakota 06-26-56 05-08-62 02-26-88 03-22-73 10-27-59 06-21-88 01-02-54 05-29-62 X X Ohio 02-07-64 12-03-84 X 12-31-96 Nebraska 12-02-59 ELICA 10-09-84 08-30-60 X 12-15-76 Oklahoma X 03-01-68 06-24-97 11-25-74 Minnesota 11-07-74 10-29-59 12-07-60 HMIC 08-02-66 09-28-61 X 02-11-64 X Oregon 07-15-70 09-01-73 06-01-74 11-15-74 Nevada 11-01-53 HMSC 06-05-57 02-12-68 X 08-19-98 06-14-99 Pennsylvania Massachusett s 12-29-63 06-17-99 04-16-81 10-08-56 12-20-99 05-10-60 09-01-49 02-04-83 X X Rhode Island 10-25-68 01-23-70 12-13-73 X 01-12-98 New Hampshire 09-05-61 04-09-69 09-10-7 3 11-15-76 South Carolina 02-12-81 10-02-58 03-19-01 02-08-74 Mississippi 05-04-82 07-13-61 08-14-61 TIC X 06-01-58 X 07-19-74 New Jersey Maryland Cancelle d 05-30-96 06-01-97

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781366594 19619932 05-01-62 X Virginia HMP&C IC 02-03-64 03-19-91 01-22-74 03-30-99 Texas 04-18-56 STATE 01-31-64 X 09-14-88 12-29-78 Washington HMLIC 02-10-64 05-29-75 12-28-73 08-03-53 12-31-98 07-14-60 11-13-58 09-20-57 06-26-68 X 09-10-7 3 West Virginia ELICA 01-23-64 10-23-89 X 03-29-99 Utah 12-28-60 HMIC 03-01-64 X 06-14-73 Wisconsin HMSC 01-31-64 04-05-88 09-14-73 Tennessee 06-27-74 11-22-55 11-22-68 X 01-31-64 X Wyoming 12-24-58 07-23-87 09-07-77 01-18-88 Vermont 03-24-53 TIC 10-01-68 X 11-19-97 08-25-99 Puerto Rico South Dakota Cancelle d 12-17-12 08-25-97 03-28-56 04-18-56 HMIC: Horace Mann Insurance Company TIC: Teachers Insurance Company HMP&CIC: Horace Mann Property & Casualty Insurance Company HMLIC: Horace Mann Life Insurance Company HMSC: Horace Mann Service Corporation ELICA: Educators Life Insurance Company of America X

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page 1 CERTIFICATES OF AUTHORITY BY STATE AND DATE ISSUED STATE HMIC TIC HMP&CIC HMLIC NTALIC MNL Alabama 12-19-66 04-18-73 08-20-03 12-15-58 01-01-81 08-11-77 Alaska 01-31-64 03-26-73 12-22-87 02-02-62 10-15-99 11-25-91 Arizona 05-27-59 11-12-74 06-09-80 07-15-59 03-10-98 06-10-66 Arkansas 01-31-64 10-06-77 11-19-75 05-06-50 04-12-91 10-14-63 California 01-31-64 03-25-65 08-18-67 05-06-97 03-16-94 Colorado 06-05-64 09-05-73 11-13-81 11-02-56 02-27-98 06-27-77 Connecticut 06-28-74 11-18-99 11-18-99 11-20-78 06-21-99 08-15-96 Delaware 06-02-59 03-02-71 09-25-98 12-08-55 06-19-00 07-11-95 Dist. of Col. 08-20-59 01-30-73 05-01-97 12-03-65 05-01-97 06-08-87 Florida 09-23-63 08-19-76 04-02-10 07-16-62 09-27-79 06-26-84 Georgia 01-31-64 02-09-78 07-02-07 04-05-61 12-20-74 10-30-68 Hawaii 08-25-87 08-30-99 09-13-95 Idaho 12-16-68 04-16-73 05-26-88 05-09-60 06-08-99 12-23-87 Illinois 01-31-64\* 03-09-77\* 04-25-75\* 08-09-49\* 12-31-94 09-23-64 Indiana 05-01-68 12-01-77 01-15-98 05-01-57 07-19-96 12-08-82 Iowa 12-29-64 05-04-73 11-26-74 08-01-52 01-14-00 12-28-81 Kansas 01-31-64 09-13-96 12-21-99 11-12-61 04-13-98 12-31-86 Kentucky 01-31-64 08-02-64 11-01-99 02-21-69 04-04-97 10-13-77 Louisiana 12-23-58 11-14-73 09-30-99 05-16-61 01-16-80 01-17-77 Maine 06-01-70 05-04-88 12-30-98 09-02-60 12-07-01 11-04-05 Maryland 01-10-68 10-29-91 03-31-98 06-26-56 05-22-98 07-28-88 Massachusetts 10-25-68 02-12-81 02-13-20 09-09-68 04-23-14 07-01-88 Michigan 03-19-59 12-14-77 02-23-99 10-27-59 11-02-05 11-30-82 Minnesota 02-11-64 06-01-74 08-19-98 10-08-56 12-21-98 08-01-75 Mississippi 06-01-58 07-19-74 06-01-97 10- -61 02-01-82 09-01-77 Missouri 03-01-64 07-19-88 11-25-74 06-27-60 09-10-97 11-01-76 Montana 01-31-64 06-01-73 02-26-88 01-02-54 03-10-99 01-22-88 Nebraska 08-30-60 12-15-76 06-24-97 10-29-59 01-12-98 08-01-76 Nevada 02-12-68 06-14-99 06-17-99 05-10-60 08-14-97 10-09-67 New Hampshire 04-09-69 11-15-76 03-19-01 07-13-61 03-28-12 12-22-05

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Page 2 STATE HMIC TIC HMP&CIC HMLIC NTALIC MNL New Jersey Cancelled 05-30-96 11-14-22 05-31-19 05-03-06 05-31-96 New Mexico 03-01-64 08-15-73 01-03-03 05-21-56 01-02-01 12-10-75 New York 01-31-64 06-17-02 03-27-00 Cancelled 07-01-17 North Carolina 10-18-68 07-01-74 03-05-98 07-10-59 12-31-90 07-31-97 North Dakota 05-08-62 03-22-73 06-21-88 05-29-62 02-23-99 09-29-75 Ohio 02-07-64 12-03-84 12-31-96 12-02-59 09-30-97 11-30-82 Oklahoma 03-01-68 11-25-74 11-07-74 12-07-60 09-30-80 10-08-63 Oregon 07-15-70 09-01-73 11-15-74 11-01-53 08-18-97 06-20-88 Pennsylvania 12-29-63 04-16-81 12-20-99 09-01-49 02-15-96 11-30-82 Rhode Island 01-23-70 12-13-73 01-12-98 09-05-61 09-09-11 01-22-99 South Carolina 10-02-58 02-08-74 05-04-82 08-14-61 07-14-38 05-25-95 South Dakota 05-01-62 01-22-74 09-14-88 08-03-53 10-29-98 09-17-75 Tennessee 01-31-64 09-07-77 11-19-97 03-28-56 12-21-81 12-01-82 Texas 01-31-64 12-29-78 05-29-75 07-14-60 09-30-93 05-07-76 Utah 03-01-64 06-14-73 04-05-88 11-22-55 12-04-97 09-13-76 Vermont 10-01-68 08-25-99 08-25-97 04-18-56 05-13-99 10-18-75 Virginia 02-03-64 03-19-91 03-30-99 04-18-56 01-17-90 08-11-97 Washington 02-10-64 12-28-73 12-31-98 11-13-58 09-24-98 10-20-94 West Virginia 01-23-64 10-23-89 03-29-99 12-28-60 06-16-98 02-01-89 Wisconsin 01-31-64 09-14-73 06-27-74 11-22-68 10-28-99 03-21-63 Wyoming 12-24-58 07-23-87 01-18-88 03-24-53 07-27-99 11-25-75 American Samoa 05-22-06 Guam 02-12-04 Puerto Rico Cancelled 12-17-12 U.S. Virgin Islands 03-01-12 05-19-94 HMIC: Horace Mann Insurance Company TIC: Teachers Insurance Company HMP&CIC: Horace Mann Property & Casualty Insurance Company HMLIC: Horace Mann Life Insurance Company NTALIC: National Teachers Associates Life Insurance Company MNL: Madison National Life Insurance Company, Inc.

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Schedule 3.02(a) SAP Exceptions None. 781366594 19619932

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Schedule 3.04 Litigation None. 781366594 19619932

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Schedule 3.10 Subsidiaries Attached. 781366594 19619932

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Horace Mann Educators Corporation Delaware Corporation 100% Horace Mann Service Corporation Illinois Corporation 100% Horace Mann MGA and Brokerage of Florida, Inc. Florida Corporation HMN Properties, LLC Illinois Company Educators Life Insurance Company of America NAIC: 62790 Illinois Corporation 100% Horace Mann Life Insurance Company NAIC: 64513 Illinois Corporation Horace Mann Investors, Inc. Maryland Corporation Horace Mann Insurance Company NAIC: 22578 Illinois Corporation Teachers Insurance Company NAIC: 22683 Illinois Corporation Horace Mann Property & Casualty Insurance Company NAIC: 22756 Illinois Corporation ABM Service Corporation Delaware Corporation Horace Mann General Agency Corporation Delaware Corporation 100% Horace Mann Employer Services Corporation Delaware Corporation National Teachers Associates Life Insurance Company NAIC: 87963 Texas Corporation NTA Life Insurance Company of New York NAIC: 15320 New York Corporation Benefit Consultants Group, Inc. Pennsylvania Corporation BCG Securities, Inc. Pennsylvania Corporation Madison National Life Insurance Company, Inc. NAIC: 65781 Wisconsin Corporation 100% The Abacus Group, LLC Georgia Company Horace Mann Educators Corporation is a publicly held company. March 31, 2025 Material Insurance Subsidiary

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Schedule 3.11 Insurance Licenses None. 781366594 19619932

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Schedule 6.06 Restrictive Agreements 1. Restrictions pursuant to First Supplemental Indenture, dated as of June 9, 2005, by and between Borrower and The Bank of New York Mellon Trust Company, N.A., as trustee (formerly JPMorgan Chase Bank, N.A. was trustee) The Borrower cannot, and it cannot permit any Subsidiary, create, assume, incur or permit to exist any indebtedness secured by a pledge, lien or other encumbrance on the voting securities of any "Significant Subsidiary" (as defined in paragraph (w) of Rule 1-02 of Regulation S-X (17 CFR § 210.1-01, et seq.)), or the voting securities of a Subsidiary that owns, directly or indirectly, the voting securities of any "Significant Subsidiary" without making effective provision whereby the outstanding 6.05% Senior Notes due June 15, 2015 shall be equally and ratably secured with such secured indebtedness so long as such other indebtedness shall be secured. 2. Restrictions pursuant to Second Supplemental Indenture, dated as of April 21, 2006, by and between Borrower and The Bank of New York Mellon Trust Company, N.A., as trustee (formerly JPMorgan Chase Bank, N.A. was trustee) The Borrower cannot, and it cannot permit any Subsidiary, create, assume, incur or permit to exist any indebtedness secured by a pledge, lien or other encumbrance on the voting securities of any "Significant Subsidiary" (as defined in paragraph (w) of Rule 1-02 of Regulation S-X (17 CFR § 210.1-01, et seq.)), or the voting securities of a Subsidiary that owns, directly or indirectly, the voting securities of any "Significant Subsidiary" without making effective provision whereby the outstanding 6.85% Senior Notes due April 15, 2016 shall be equally and ratably secured with such secured indebtedness so long as such other indebtedness shall be secured. 781366594 19619932

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EXHIBIT A ASSIGNMENT AND ASSUMPTION This Assignment and Assumption (the "Assignment and Assumption") is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the "Assignor") and [Insert name of Assignee] (the "Assignee"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Credit Agreement"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the facility identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the "Assigned Interest"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 1. Assignor: ______________________________ 2. Assignee: ______________________________ [and is an Affiliate/Approved Fund of [identify Lender]] 3. Borrower(s): HORACE MANN EDUCATORS CORPORATION 4. Administrative Agent: PNC BANK, NATIONAL ASSOCIATION., as the administrative agent under the Credit Agreement 5. Credit Agreement: The Credit Agreement, dated as of June 21, 2019, among Horace Mann Educators Corporation, the Lenders parties thereto, PNC 781366594 19619932 A-1

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781366594 19619932 A-2 Amount of Commitment/Loans Assigned $ Bank, National Association, as Administrative Agent, and the other agents parties thereto 6. Assigned Interest: $ Percentage Assigned of Commitment/Loans21 % $$$% Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in which the Assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower and its Related Parties or their respective securities) will be made available and who may receive such information in accordance with the Assignee's compliance procedures and applicable laws, including Federal and state securities laws. The terms set forth in this Assignment and Assumption are hereby agreed to: ASSIGNOR [NAME OF ASSIGNOR] By:______________________________ Title: ASSIGNEE [NAME OF ASSIGNEE] By:______________________________ Title: $ Aggregate Amount of Commitment/Loans for all Lenders % 21 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 32 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

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781366594 19619932 A-3 [Consented to:]43 HORACE MANN EDUCATORS CORPORATION By________________________________ Title: [Consented to and]32 Accepted: PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent By_________________________________ Title: 32 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 43 To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

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ANNEX 1 STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT AND ASSUMPTION 1. Representations and Warranties. 1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Non-U.S. Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender. 2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, 781366594 19619932 A-4

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fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the Effective Date. 3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of Illinois. 781366594 19619932 A-5

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EXHIBIT B [FORM OF] COMPLIANCE CERTIFICATE To: The Lenders parties to the Credit Agreement Described Below For the period ended , 20__, this Compliance Certificate is furnished pursuant to that certain Credit Agreement, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Agreement"), among Horace Mann Educators Corporation (the "Borrower"), the lenders party thereto, and PNC Bank, National Association, as Administrative Agent. Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have the meanings ascribed thereto in the Agreement. THE UNDERSIGNED HEREBY CERTIFIES THAT: 1. I am a duly elected Executive Officer of the Borrower; 2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a detailed review of the transactions and conditions of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements; 3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes a Default or Event of Default during or at the time of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth below; and 4. To the extent that there are any changes from the most recently delivered Schedule 3.10, Schedule I attached hereto sets forth a current Schedule 3.10, setting forth each of the Borrower's Subsidiaries and indicating which Subsidiaries are Material Insurance Subsidiaries, accurate as of the date hereof. 5. Schedule II attached hereto sets forth financial data and computations calculating each of FHLB Liquidity Debt, FHLB Operating Debt and Securities Lending, all of which data and computations are true, complete and correct. 735379122 19619932781366594 19619932 First Amendment to Credit Agreement

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6. Schedule III attached hereto sets forth financial data and computations evidencing the Borrower's compliance with certain covenants of the Agreement, all of which data and computations are true, complete and correct. Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such condition or event: 735379122 19619932781366594 19619932 First Amendment to Credit Agreement

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The foregoing certifications, together with the computations set forth in Schedule II hereto and the financial statements delivered with this Certificate in support hereof, are made and delivered this ___ day of ______, ____. HORACE MANN EDUCATORS CORPORATION Name: Title: 735379122 19619932781366594 19619932 First Amendment to Credit Agreement

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SCHEDULE I TO COMPLIANCE CERTIFICATE Updated Schedule 3.10 as of _________, ____ 735379122 19619932781366594 19619932 First Amendment to Credit Agreement

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SCHEDULE II TO COMPLIANCE CERTIFICATE Calculation of FHLB Liquidity Debt, FHLB Operating Debt and Securities Lending 735379122 19619932781366594 19619932 First Amendment to Credit Agreement

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781366594 19619932 C-1-1 $__________ Section 6.01 – Consolidated Debt to Total Capitalization Required Minimum Net Worth: $__________ 0.35:1.0 Actual Net Worth: (c) (a) plus (b): $__________ SCHEDULE III TO COMPLIANCE CERTIFICATE Compliance as of _________, ____ with Provisions of Sections 6.01, 6.02, 6.03 and 6.10 of the Agreement Net Worth (excluding the effect of unrealized gain or loss under FASB 115): $__________ (a) Section 6.03 – Minimum Risk-Based Capital (as of the end of any Fiscal Year) Consolidated Debt of the Borrower and its Consolidated Subsidiaries on date of determination: Required: $__________ 300% (d) Ratio of (a) to (c): :1.0 Actual: (a) Life Insurance Subsidiaries (taken as a whole) Actual (1) Total Adjusted Capital on date of determination: Section 6.02 – Net Worth $__________ (b) (2) Required Company Action Level RBC on date of determination: $__________ Net Worth on date of determination:

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781366594 19619932 C-1-2 ______% (3) Ratio of (1) to (2) (expressed as a percentage): ______% (1) Total Adjusted Capital on date of determination: Section 6.10 – Securities Lending $__________ Maximum market value of securities subject to Securities Lending: $54 (3) (2) (b) The P/C Subsidiaries (taken as a whole) Actual market value of securities subject to Securities Lending (provided that the market value of any security subject to Securities Lending shall be measured as of the time the applicable Securities Lending transaction was entered into): Company Action Level RBC on date of determination: $__________ $__________ Ratio of (1) to (2) (expressed as a percentage): 54 Maximum Worth to be set at the Threshold Amount less the aggregate amount of FHLB Operating Debt outstanding at time of reporting.

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EXHIBIT C-1 [FORM OF] U.S. TAX CERTIFICATE (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Credit Agreement"), among Horace Mann Educators Corporation, PNC Bank, National Association, as Administrative Agent, and each lender from time to time party thereto. Pursuant to the provisions of Section 2.14 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively connected with the undersigned's conduct of a U.S. trade or business. The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. [NAME OF LENDER] By:______________________________________ Name: Title: Date: ________ __, 20[ ] 781366594 19619932 C-1-1

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EXHIBIT C-2 [FORM OF] U.S. TAX CERTIFICATE (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Credit Agreement"), among Horace Mann Educators Corporation, PNC Bank, National Association, as Administrative Agent, and each lender from time to time party thereto. Pursuant to the provisions of Section 2.14 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement, neither the undersigned nor any of its partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned's or its partners/members' conduct of a U.S. trade or business. The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative Agent and (2) the undersigned shall have at all times furnished the Borrower and the Administrative Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. [NAME OF LENDER] 781366594 19619932 C-2-1

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By:______________________________________ Name: Title: Date: ________ __, 20[ ] 781366594 19619932 C-2-2

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EXHIBIT C-3 [FORM OF] U.S. TAX CERTIFICATE (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Credit Agreement"), among Horace Mann Educators Corporation, PNC Bank, National Association, as Administrative Agent, and each lender from time to time party thereto. Pursuant to the provisions of Section 2.14 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) the interest payments in question are not effectively connected with the undersigned's conduct of a U.S. trade or business. The undersigned has furnished its participating Lender with a certificate of its non-U.S. person status on IRS Form W-8BEN. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. [NAME OF LENDER] By:______________________________________ Name: Title: Date: ________ __, 20[ ] 781366594 19619932 C-3-1

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EXHIBIT C-4 [FORM OF] U.S. TAX CERTIFICATE (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes) Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as amended, restated, amended and restated, supplemented or otherwise modified, renewed or extended from time to time, the "Credit Agreement"), among Horace Mann Educators Corporation, PNC Bank, National Association, as Administrative Agent, and each lender from time to time party thereto. Pursuant to the provisions of Section 2.14 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (v) none of its partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not effectively connected with the undersigned's or its partners/members' conduct of a U.S. trade or business. The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of its partners/members claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. [NAME OF PARTICIPANT] By:______________________________________ Name: Title: 781366594 19619932 C-4-1

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Date: ________ __, 20[ ] 781366594 19619932 C-4-2

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0 Table Insert Changes: 0 Table Delete 2 Add Intelligent Table Comparison: Active Table moves to 249 0 Summary report: Litera Compare for Word 11.11.0.158 Document comparison done on 5/21/2025 4:58:56 PM Table moves from 0 Delete Embedded Graphics (Visio, ChemDraw, Images etc.) 252 1 Original DMS: iw://amedms.americas.global-legal.com/amecurrent/781366594/4 - PNCHMN Fourth Amendment - Conformed Credit Agreement.docx Embedded Excel 0 Move From Format changes 0 0 Total Changes: Modified DMS: iw://amedms.americas.global-legal.com/amecurrent/781366594/13 - PNCHMN Fourth Amendment - Conformed Credit Agreement.docx 504 Move To Style name: CUSTOM

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## Exhibit 31.1

**Exhibit 31.1**

Chief Executive Officer Certification<br>pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Marita Zuraitis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2025 of Horace Mann Educators Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| /s/ Marita Zuraitis | /s/ Marita Zuraitis |
| Marita Zuraitis, Chief Executive Officer | Marita Zuraitis, Chief Executive Officer |
| Horace Mann Educators Corporation | Horace Mann Educators Corporation |
| Date: | August 6, 2025 |

---

## Exhibit 31.2

**Exhibit 31.2**

Chief Financial Officer Certification<br>pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Ryan E. Greenier, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2025 of Horace Mann Educators Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| /s/ Ryan E. Greenier | /s/ Ryan E. Greenier |
| Ryan E. Greenier, Chief Financial Officer | Ryan E. Greenier, Chief Financial Officer |
| Horace Mann Educators Corporation | Horace Mann Educators Corporation |
| Date: | August 6, 2025 |

---

## Exhibit 32.1

**Exhibit 32.1**

CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002<br>

In connection with the Quarterly Report of Horace Mann Educators Corporation (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Marita Zuraitis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| /s/ Marita Zuraitis | /s/ Marita Zuraitis |
| Marita Zuraitis | Marita Zuraitis |
| Chief Executive Officer | Chief Executive Officer |
| Date: | August 6, 2025 |

---

A signed original of this written statement required by Section 906 has been provided to Horace<br>Mann Educators Corporation and will be retained by Horace Mann Educators Corporation<br>and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 32.2

**Exhibit 32.2**

CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002<br>

In connection with the Quarterly Report of Horace Mann Educators Corporation (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ryan E. Greenier, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | |
|:---|:---|
| /s/ Ryan E. Greenier | /s/ Ryan E. Greenier |
| Ryan E. Greenier | Ryan E. Greenier |
| Chief Financial Officer | Chief Financial Officer |
| Date: | August 6, 2025 |

---

A signed original of this written statement required by Section 906 has been provided to Horace<br>Mann Educators Corporation and will be retained by Horace Mann Educators Corporation<br>and furnished to the Securities and Exchange Commission or its staff upon request.

## Exhibit 99.1

**Exhibit 99.1**

**Glossary of Selected Terms**

The following measures are used by the Company's management to evaluate performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, are not based on accounting principles generally accepted in the United States of America (non-GAAP) under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statements of Operations and Comprehensive Income (Loss) or Consolidated Balance Sheets or are not required to be disclosed in the Notes to the Consolidated Financial Statements or, in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States of America (GAAP).

In the opinion of the Company's management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company's periodic results of operations and how management evaluates the Company's financial performance. Internally, the Company's management uses the measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons.

Some of these measures exclude net investment gains (losses), net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Also, some of these measures exclude goodwill and intangible asset impairments, intangible asset amortization and legacy commercial exposures.

Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company's management.

**Adjusted book value per share** - The result of dividing (1) total shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company's underlying insurance operations.

**Tangible book value per share** - The result of dividing (1) total shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities after-tax net reserve remeasurements attributable to discount rates, goodwill and other intangible assets (including the related impact of deferred taxes) by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure.

**Debt to total capitalization ratio, excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates** - The result of dividing (1) total debt by (2) total debt plus common shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates from common shareholders' equity. The debt to total capitalization ratio is the most directly comparable GAAP measure.

**Catastrophe costs** - The sum of catastrophe losses, net of reinsurance and before income tax benefits that includes allocated loss adjustment expenses and reinsurance reinstatement premiums, excluding unallocated loss adjustment expenses.

**Catastrophe losses** - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of a covered loss in the Company's primary catastrophe excess of loss reinsurance contract, and reports claims and claim expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their

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effects are not included in earnings or claim and claim expense reserves prior to occurrence. In the opinion of the Company's management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.

**Core earnings (loss)** - Consolidated net income (loss) excluding the after-tax impact of net investment gains (losses), the after-tax impact of legacy commercial exposures, the after-tax impact of intangible asset amortization, the after-tax change in market risk benefits, discontinued operations, the after-tax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and after-tax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Net income is the most directly comparable GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Pretax core earnings (loss)** - Pretax net income (loss) excluding the pretax impact of net investment gains (losses), the pretax impact of legacy commercial exposures, the pretax impact of intangible asset amortization, the pretax impact of the change in market risk benefits, discontinued operations, the pretax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and pretax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Income before income taxes is the most directly comparable GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Segment core earnings (loss)** - Determined in the same manner as core earnings (loss) on a consolidated basis. Management uses segment core earnings to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core earnings when analyzing the results and trends of insurance companies.

**Core earnings (loss) per share** - Core earnings on a per common share basis. Earnings per share is the most directly comparable GAAP measure.

**Net premiums written and contract deposits** – Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating business growth. Premiums and contract charges earned is the most directly comparable GAAP measure.

Net premiums written and contract deposits for the Company's operating segments are as follows:

*Property & Casualty*

**Net premiums written:** Reflects the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers. The difference between premiums written and premiums earned is premiums unearned.

*Life & Retirement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life Insurance Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net premiums written and contract deposits:** Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Contract deposits include amounts received from customers on deposit-type contracts.

&nbsp;&nbsp;&nbsp;&nbsp;Retirement Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net annuity contract deposits:** Reflects total recurring deposits and single deposits/rollovers – net of contract deposits ceded to reinsurers.

*Supplemental & Group Benefits*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Individual Supplemental Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net premiums written:** Reflects (1) the direct and assumed contractually determined amounts charged to policyholders/certificate holders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Benefits Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net premiums written:** Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business.

**Investment yield, excluding limited partnership interests - annualized, pretax and after-tax** - For the three month periods presented, investment yields are calculated by annualizing the result of year-to-date total net investment income, pretax adjusted to exclude (1) investment income from deposit asset on reinsurance, (2) investment income from limited partnership interests (excluding investment income on commercial mortgage loan funds) and (3) FHLB interest credited for the corresponding periods, divided by the average quarter-end and beginning of quarter carrying amount of the total investment portfolio as presented in the Consolidated Balance Sheets adjusted to exclude (1) FHLB funding agreements, (2) the carrying amount of limited partnership interests (excluding the carrying amount of commercial mortgage loan funds), and (3) gross unrealized investment gains (losses) on fixed maturity securities. For full year periods presented, investment yields are calculated by (i) summing the investment yields for each respective three-month period applicable to the year and (ii) dividing that sum per the calculation in (i) by four. Net investment income is the most directly comparable GAAP measure.

**Net income return on equity - LTM:** The ratio of (1) trailing 12 month net income to (2) the average of ending shareholders' equity for the current quarter end and the preceding four quarter ends - referred to as the 5 quarter average of shareholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Net income return on equity - Annualized:** The ratio of (1) annualized net income to (2) the 2 quarter average of shareholders' equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Core return on equity - LTM:** The ratio of (1) trailing 12 month core earnings to (2) the 5 quarter average of shareholders' equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - LTM is the most directly comparable GAAP measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Core return on equity - Annualized:** The ratio of (1) annualized core earnings to (2) the 2 quarter average of shareholders' equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - Annualized is the most directly comparable GAAP measure.

**Net reserves** - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables.

**Prior years' reserve development** - A measure which the Company reports for its Property & Casualty segment which identifies the increase or decrease in net incurred claim and claim expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of management, a discussion of prior years' reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years.

**Property & Casualty operating statistics** - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Loss ratio** - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net premiums earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Underlying loss ratio** - The sum of the loss ratio adjusted to remove the effect of catastrophe losses and prior years' reserve development. The loss ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Expense ratio** - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs to (2) net earned premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Combined ratio** - The sum of the loss ratio and the expense ratio. A combined ratio less than 100% generally indicates profitable underwriting prior to the consideration of net investment income.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Underlying combined ratio or combined ratio excluding catastrophe losses and prior years' reserve development** - The sum of the loss ratio and the expense ratio adjusted to remove the effect of catastrophe losses and prior years' reserve development. The combined ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods.

**Supplemental & Group Benefits operating statistics** - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of supplemental and group benefits underwriting results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Benefits ratio** - The ratio of (1) the sum of benefits, settlement expenses and change in reserves to (2) net premiums and contract charges earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Operating expense ratio** - The ratio of (1) the sum of operating expenses and DAC amortization expense to (2) total revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Pretax profit margin** - The ratio of (1) net income before income taxes to (2) total revenues.

**Sales** – Sales data pertains to Horace Mann products and excludes authorized products sold by exclusive agents that are underwritten by third-party vendors. Sales should not be viewed as a substitute for any GAAP measure, including "sales" as it relates to non-insurance companies, and the Company's definition of sales, sales deposits or new annualized sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends.

Sales for the Company's operating segments are as follows:

*Property & Casualty*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Sales:** Sales are measured as premiums to be collected over the 12 months following the sale of new automobile and property policies.

*Life & Retirement*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life Insurance Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Annualized sales:** Annualized sales are based on the total yearly premium that the Company would expect to receive if all first year recurring premium policies would remain in force, plus 10% of single and indexed universal life excess premiums. Annualized sales measure activity associated with gaining new insurance business in the current period, and includes deposits received related to universal-life-type products.

*Supplemental & Group Benefits*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Individual Supplemental Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Sales:** Based on application received date on the submitted policy and measured as the submitted annual premium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group Benefits Product Lines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Sales:** Sales are measured based on estimated annualized premium on the effective date of sale.