HIT Technologies Inc. Closes Private Placement of Debentures and Common Shares

VANCOUVER, BC—(Marketwired – October 31, 2016) – HIT Technologies Inc. (the “Company”) (TSX VENTURE: HIT) is pleased to announce that it closed its non–brokered private placement (the “Debenture Offering”) of secured convertible debentures (the “Debentures”), raising aggregate gross proceeds to the Company of $375,000.

At the closing of the Debenture Offering, the Company issued Debentures in the principal amount of $375,000 (the “Debenture Sum”). The Debentures will expire on October 31, 2018 (the “Maturity Date”). The Debenture Sum will bear interest at a rate of 10% per annum and may be converted, in whole or in part, at the sole discretion of the subscribers, at any time prior to the Maturity Date, into common shares in the capital of the Company (“Conversion Shares”). The conversion rate will be one Conversion Share for each $0.05 of the Debenture Sum, if any portion of the Debenture Sum is converted within 12 months from the issue date, and one Conversion Share for each $0.10 of the Debenture Sum, if any portion of the Debenture Sum is converted after 12 months from the issue date. The Debentures, as well as any Conversion Shares issued upon conversion of the Debenture Sum, will be subject to a four–month hold period which will expire on March 1, 2017.

The Company is also pleased to announce that it closed its non–brokered private placement (the “Common Share Offering” and together with the Debenture Offering, the “Offerings”) of common shares in the capital of the Company (the “Common Shares”), raising aggregate gross proceeds to the Company of $90,000.

At the closing of the Common Share Offering, the Company issued an aggregate of 1,800,000 Common Shares at a subscription price of $0.05 per Common Share. The Common Shares will be subject to a four–month hold period which will expire on March 1, 2017.

The Company received conditional acceptance of the Offerings from the TSX Venture Exchange. The net proceeds of the Offerings will be used by the Company for developing the Company's products, including cases and accessories for the current and next generation Apple iPhone and for general working capital purposes.

About HIT Technologies Inc.

The Company develops and markets a portfolio of products that transform Apple iPhones into high–performing, weather– and shock–resistant video cameras. Both of its flagship products, HITCASE PRO and its newer SNAP, allow users to easily capture action photo and video content hands–free, using a variety of the Company's patented Railslide™ mounts that attach to virtually any surface. Swappable lenses and accessories provide a variety of perspectives otherwise unattainable while participating in adventure sports. The Company is headquartered in Vancouver, British Columbia, Canada and trades on the TSX Venture Exchange (TSX VENTURE: HIT). For more information about HITCASE, visit www.HITCASE.com. Search #hitcase on Instagram to see some of the amazing images created by HITCASE customers.

Cautionary Statement

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this press release.

This press release may contain forward–looking statements within the meaning of applicable securities laws. Forward–looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward–looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward–looking statements. The Company's forward–looking statements are expressly qualified in their entirety by this cautionary statement. The forward–looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward–looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Myovant Raises $218 Million in Largest Biotech IPO of Year

PALO ALTO, CA—(Marketwired – October 31, 2016) – Cooley advised Myovant Sciences on its $218 million initial public offering – the largest biotech IPO of the year. The company now trades on the New York Stock Exchange under the symbol “MYOV.”

Myovant, a Cooley client since its formation, is a biopharmaceutical company focused on the innovative treatment of women's health diseases and other endocrine–related disorders in areas of high unmet medical need, and improving the lives of millions of patients suffering from these diseases.

In addition to advising on the company's formation, Cooley advised on Myovant's exclusive license from Takeda Pharmaceuticals of the drug candidates that were the basis of Myovant's launch. Takeda granted Myovant exclusive, worldwide licenses (excluding Japan and certain other Asian countries) to two drug candidates – relugolix (TAK–385), a phase 3 drug candidate that has successfully demonstrated significant clinical benefit for uterine fibroids, endometriosis and prostate cancer, and RVT–602 (TAK–448), a novel product candidate for the treatment of infertility in females.

In June 2015, Cooley advised Axovant Sciences on its $362 million IPO, reportedly the largest pre–commercial stage biotech IPO to date. Axovant and Myovant are majority owned subsidiaries of Roivant Sciences.

The Cooley corporate securities team advising Myovant was led by partners Frank Rahmani and John McKenna and included associates Alison Haggerty and Jason Saxe. The licensing team included partners Barbara Kosacz and Marya Postner and special counsel Marjorie Wagman. Support for the offering was provided by partners Greg Tenhoff (employment), Barbara Mirza (compensation and benefits) and Natasha Leskovsek (health care and life sciences regulatory).

About Cooley LLP

Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high–stakes litigation, where innovation meets the law.

Cooley has 900 lawyers across 12 offices in the United States, China and Europe.

GreenPower Announces Stock Option Grant

VANCOUVER, BC—(Marketwired – October 31, 2016) – GreenPower Motor Company Inc. (TSX VENTURE: GPV) (OTCQB: GPVRF) (“GreenPower” or the “Company”) announces a stock option grant approved by the Board of Directors.

GreenPower has granted incentive stock options to the President of the Company, to acquire 500,000 common shares of the Company vesting 25% after four months, 25% after one year, 25% after two years and 25% after three years, exercisable for a period of five years at a price of $0.62 per share, subject to the approval of the TSX Venture Exchange. The Company has a total of 9,045,967 outstanding stock options.

About GreenPower Motor Company Inc.

GreenPower Motor Company Inc. develops electric powered vehicles for commercial markets. GreenPower offers a range of electric powered buses deploying electric drive and battery technologies with a lightweight chassis and low floor or high floor body. GreenPower's bus is based on a flexible clean sheet design and utilizes a custom battery management system and a proprietary Flex Power system for the drive motors. GreenPower integrates global suppliers for key components such as Siemens for the two drive motors, Knorr for the brakes, ZF for the axles and Parker for the dash and control systems. This OEM platform allows GreenPower to meet the specifications of various operators while providing standard parts for ease of maintenance and accessibility for warranty requirements. For further information go to www.greenpowerbus.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

© 2016 GreenPower Motor Company Inc. All rights reserved.

Hoarding Cleanup for Storm Damaged Property

RALEIGH, NC—(Marketwired – October 31, 2016) – Address Our Mess is providing cleanup services for hoarded and cluttered homes in North Carolina affected by Hurricane Matthew.

North Carolina has suffered massive flooding and property damage as a result of Hurricane Matthew. Potential water damage must be addressed immediately, but professionals will not be able to access or remediate damage in hoarded homes.

Address Our Mess is offering the sorting and organizing of belongings, trash haul, donation management, and deep cleaning services to allow property preservation professionals to repair affected homes. If water damage or mold has occurred, clutter must be removed before those issues can be addressed.

The company employs a local estimator in the area and a team that will complete cleanup efforts within five days of job commencement.

After–effects from the storm, including water damage and mold, can lead to health problems for home owners. It's important for those with hoarding problems to get their homes cleaned so property damage can be fixed.

About Address Our Mess
Address Our Mess is a professional specialty cleaning company that handles hoarding, clutter, sorting, removal, and large organizational projects. The company has a mission to help give a fresh start to as many people as possible.

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Luna Gold Announces Shareholder Approval of Share Consolidation

VANCOUVER, BC—(Marketwired – October 31, 2016) – Luna Gold Corp. (TSX: LGC) (“Luna Gold” or “the Company”) announces it has received shareholder approval of its proposed ten for one (10:1) consolidation of the Company's outstanding common shares (the “Consolidation”). The shareholders of the Company voted 99.64% in favour of the Consolidation at the special meeting of shareholders of the Company held today. The Company has filed articles of amendment to effect the Consolidation. The Company's name and trading symbol on the Toronto Stock Exchange (“TSX”) remain unchanged and the Company's common shares are anticipated to start trading on the TSX on a consolidated basis on or about November 4, 2016.

The 390,374,347 common shares issued and outstanding prior to the Consolidation have been consolidated to approximately 39,037,434 common shares. In the event the Consolidation would otherwise result in a fractional common share, such fraction of a common share will be rounded down to the nearest whole number.

The exercise prices and exchange ratios for the outstanding common share purchase warrants of the Company, as well as the Company's stock options and restricted share units, have also been adjusted to account for the 10:1 Consolidation, in accordance with the terms and conditions of such options, warrants and restricted share units. While the exercise price and exchange ratio of the options and warrants has been adjusted to reflect the Consolidation, the expiry dates remain unchanged.

Registered shareholders will receive a letter of transmittal from the Company's transfer agent, Computershare Investor Services Inc., following the Consolidation. The letter of transmittal will contain instructions on how registered shareholders can exchange their share certificates or direct registration system (“DRS”) statements representing pre–Consolidation common shares for new DRS statements representing post–Consolidation common shares. No action is required by non–registered shareholders (shareholders who hold their shares through an intermediary) to effect the Consolidation.

On behalf of the Company

“Christian Milau”

Christian Milau, Chief Executive Officer and Director

About Luna Gold Corp.

Luna Gold is engaged in the exploration and redevelopment of its past producing Aurizona Gold Mine in Brazil, which was placed on care and maintenance in 2015. A pre–feasibility study for the project completed in September 2016 outlined the design of an open–pit mine producing on average 150,000 ounces of gold annually for the first five years (see the “Pre–feasibility Study on Aurizona Mine Project, Maranhão, Brazil, NI 43–101 Technical Report” completed by Lycopodium Minerals Canada Ltd.). A definitive feasibility study for the Aurizona project is underway, with the objective of pouring gold at the Aurizona Gold Mine in late 2018. Further information is available at www.lunagold.com or by email at ir@lunagold.com.

Cautionary Note Regarding Forward–looking Statements

This document contains certain forward–looking information and forward–looking statements within the meaning of applicable securities legislation (collectively “forward–looking statements”). The use of the word “will”, “anticipated”, “objective” and similar expressions are intended to identify forward–looking statements. Although Luna Gold believes that the expectations reflected in such forward–looking statements and/or information are reasonable, undue reliance should not be placed on forward–looking statements since Luna Gold can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward–looking statements, including the assumptions made with regard to the date the Company's shares will commence trading on the TSX on a post–consolidated basis, assumptions made with regard to the anticipated results of the feasibility study for the Aurizona Project, Luna Gold's ability to restart production of the Aurizona Gold Mine, the timing of the anticipated restart of production, and Luna Gold's ability to achieve the gold production rates outlined in the pre–feasibility study. Furthermore, the forward–looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligations to publicly update and/or revise any of the included forward–looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.

ViXS Announces Closing of Second Tranche of the Private Placement for C$0.5M Including Insiders

TORONTO, ON—(Marketwired – October 31, 2016) –

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

ViXS Systems Inc. (“ViXS” or the “Company“) (TSX: VXS), a pioneer and leader in media processing solutions, today announced, that it has closed the second tranche of its previously announced non–brokered unit private placement offering. This final tranche of equity was issued to insiders and additional outside investors raising aggregate gross proceeds of approximately C$535,000 and total equity raised C$3,475,000. The net proceeds will be used for general corporate and working capital purposes in order to support the growth of the business.

Second Unit Private Placement
The second tranche of the unit private placement was an offering consisting of common shares and warrants (the “Second Unit Private Placement“). Under the Second Unit Private Placement, the Company issued a total of 1,783,333 units (“Units“) at a price of C$0.30 per Unit for gross proceeds of C$535,000 with each Unit consisting of one Common Share and 0.25 Common Share purchase warrants (“Unit Warrants“).

Under both the first tranche private placement, which closed September 9, 2016, and the Second Unit Private Placement, the Company has issued a total of 11,583,333 Units at a price of C$0.30 per Unit for gross proceeds of C$3,475,000 with each Unit consisting of one Common Share and 0.25 Common Share purchase warrants. Each whole Unit Warrant is exercisable into one Common Share at an exercise price of C$0.50 per Common Share. The exercise of all of the Unit Warrants issued in connection with the Second Unit Private Placement would result in the issuance of an additional 445,833 Common Shares and aggregate gross proceeds to the Company of C$222,917.

Certain insiders of the Company subscribed for Units in the Second Unit Private Placement (the “Participating Insiders“). The Participating Insiders acquired an aggregate of 1,033,333 Units under the Second Unit Private Placement.

Following the completion of the Second Unit Private Placement, the Participating Insiders are the registered or beneficial owners of 2,895,657 common shares (representing 4.6% of the issued and outstanding common shares) and warrants to acquire a further 390,734 common shares of the Company. Assuming the exercise of all the warrants held by the Participating Insiders only and no other exercises, the Participating Insiders would own up to approximately 5.0% of the number of common shares of the Company on a partially diluted basis.

Participating Insider Current
Common
Shares
registered
and
beneficially
owned
Common
shares
issuable
on the
issuance
of the
Units
Common
shares
issuable
on the
issuance
of the
Unit
Warrants
Aggregate
Common
Shares
upon
exercise
of
applicable
Unit
Warrants(1)
Aggregate
Common
Shares
without
exercise of
applicable
Unit
Warrants(2)
Indra Laksono 825,989 500,000 125,000 1,455,989 1,325,989
Michael Michalyshyn 746,103 333,333 83,333 1,235,170 1,079,436
Sohail Khan 266,666 100,000 25,000 441,666 366,666
Michael J. Economy 23,566 100,000 25,000 153,566 123,566

(1) Assumes that the participant in the Second Unit Private Placement exercises their respective Unit Warrants.

(2) Assumes that the participant in the Second Unit Private Placement does not exercise their respective Unit Warrant.

As a result, subscriptions by the Participating Insiders under the private placements are “related party transactions” for the purposes of Multilateral Instrument 61–101 – Protection of Minority Security Holders in Special Transactions (“MI 61–101“). The Second Unit Private Placement has and will be completed in reliance on available exemptions from the formal valuation and minority approval requirements of MI 61–101 provided in paragraph (a) of Section 5.5 and paragraph (a) of Section 5.7, respectively, of MI 61–101. Insofar as it applies to interested parties (as that term is defined in MI 61–101) neither the fair market value of the Units issued nor the consideration paid for the Units pursuant to the Unit Private Placement will exceed 25% of the Company's market capitalization.

The Second Unit Private Placement is exempt from prospectus and registration requirements of applicable securities laws and the Units and underlying securities are subject to a mandatory four–month hold period.

This release does not constitute an offer for sale of securities nor a solicitation for offers to buy any securities. The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities law and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About ViXS Systems Inc.
ViXS is a pioneer and market leader in designing revolutionary media processing semiconductor solutions for video over IP streaming solutions, with 482 patents issued and pending worldwide, numerous industry awards for innovation, and over 33 million media processor shipped to date. ViXS is driving the transition to Ultra HD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 12 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher–resolution content. ViXS' XCodePro 300 family is ideal for Ultra HD 4K infrastructure equipment, and the XCode 6000 family of system–on–chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost–effective consumer entertainment devices.

ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. VIXS™, the ViXS® logo, XCode®, XCodePro™, XConnex™ and Xtensiv™ are trademarks and/or registered trademarks of ViXS. Other trademarks are the property of their respective owners. For more information on ViXS, visit our website: www.vixs.com.

FORWARD LOOKING STATEMENTS

Certain statements in this press release which are not historical facts constitute forward–looking statements or information within the meaning of applicable securities laws (“forward–looking statements”). Such statements include, but are not limited to, statements regarding ViXS' projected revenues, gross margins, earnings, growth rates, the impact of new product design wins, market penetration and product plans. The use of terms such as “may”, “anticipated”, “expected”, “projected”, “targeting”, “estimate”, “intend” and similar terms are intended to assist in identification of these forward–looking statements. Readers are cautioned not to place undue reliance upon any such forward–looking statements. Such forward–looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause ViXS' actual results to be materially different from historical results or from any results expressed or implied by such forward–looking statements. Accordingly, there can be no assurance that forward–looking statements will prove to be accurate and readers are therefore cautioned not to place undue reliance upon any such forward–looking statements.

Factors that could cause results or events to differ materially from current expectations expressed or implied by forward looking statements contained herein include, but are not limited to: our history of losses and the risks associated with not achieving or sustaining profitability; the Company's dependence on a limited number of customers for a substantial portion of revenues; fluctuating revenue and expense levels arising from changes in customer demand, sales cycles, product mix, average selling prices, manufacturing costs and timing of product introductions; risks associated with competing against larger and more established companies; competitive risks and pressures from further consolidation amongst competitors, customers, and suppliers; market share risks and timing of revenue recognition associated with product transitions; risks associated with changing industry standards such as HEVC (High Efficiency Video Codec), HDR (High Dynamic Range) and Ultra HD resolution; risks related to intellectual property, including third party licensing or patent infringement claims; the loss of any of the Company's key personnel could seriously harm its business; risks associated with adverse economic conditions; delays in the launch of customer products; price re–negotiations by existing customers; the Company's dependence on a limited number of supply chain partners for the manufacture of its products, legal proceedings arising from the ordinary course of business; ability to raise needed capital; ongoing liquidity requirements;and other factors discussed in the “Risk Factors” section of the Company's Annual Information Form dated March 31, 2016, a copy of which is available under the Company's profile on SEDAR at www.sedar.com. All forward–looking statements are qualified in their entirety by this cautionary statement. ViXS is providing this information as of the current date and does not undertake any obligation to update any forward–looking statements contained herein as a result of new information, future events or otherwise except as may be required by applicable securities laws.

Human Touch(R) High Point Showroom Excites Buyers with New Novo XT Massage Chair, Powerful iJoy(R) Foot Massager, and the Original Perfect Chair(R)

LONG BEACH, CA —(Marketwired – October 31, 2016) – Human Touch®, the U.S. market leader of innovative massage chairs, Perfect Chair Recliners, and other wellness solutions, was pleased to share several of its newest products at the 2016 Fall High Point Market. Many of Human Touch's creations have been nominees and recipients of design awards, including the renowned Pinnacle Award and the prestigious ADEX Award. Each of these wellness solutions was placed in the Human Touch showroom, allowing High Point attendees to engage in an exciting and innovative experience.

Featured products on display at the High Point Market included:

  • The NEW Novo XT massage chair, which increases oxygen–rich blood to tired, sore muscles in order to restore a natural sense of well–being. The Novo XT's distinctive unibody design follows a unique L–track that massages the entire back, from the top of the shoulders all the way down to the glutes, and its space–saving design requires only 2″ of wall clearance in order to pivot seamlessly from the upright to the reclined position.
  • The Novo XT also features full–body stretch, Bluetooth speakers, lumbar heat, cloud touch acupressure, zero–gravity massage and an extending foot–and–calf massager. With 34 auto wellness programs and an easy–to–use LCD controller, the Novo XT massage chair is endorsed by the World Federation of Chiropractic as an optimal way to improve spinal health and relieve overall stress. Novo XT upholstery options include Black, Red, Gray, Cream, or Brown SofHyde.
  • The NEW iJoy Foot massager incorporates a life–like foot massage that delivers the very latest in massage technology. The patented robotic mechanism uses powerful under–foot rollers and two auto–massage program options to rejuvenate tired feet, forcing blood away from the feet and toward the core of the body to improve circulation. This portable, easy–to–use foot massager incorporates reflexology, a popular holistic and complementary therapy that benefits and improves general health as well as relieving stress and pain in other parts of the body. The iJoy Foot massager pairs perfectly with any color of the iJoy Active 2.0 massage chair, making this compact option a great way to experience a full–body massage.
  • Three of Human Touch's bestselling Perfect Chair recliners were presented in the showroom, including the Omni–Motion Classic (PC–610), Omni–Motion Silhouette (PC–600), and Classic Manual Plus (PC–420). Each of these Perfect Chair options feature extended armrests, adjustable lumbar support, and are fully customizable with premium leather, top–grain leather, and SofHyde upholstery options, as well as a variety of solid wood–based finishes. Additional upgrades of Memory Foam PLUS and Jade Heat offer enhanced comfort and health benefits, and the many accessory options allow the chair to be customize to the user's preference.
  • Inspired by NASA, each Perfect Chair places the body into a doctor–recommended, neutral–gravity position — with the feet above the heart — to alleviate pain and stress from the neck and vertebrae, which is caused by earth's gravitational pull on the body. This provides improved relaxation, reduced stress and better sleep quality, among other important benefits. It is this advanced design that earned the Perfect Chair Omni–Motion Classic (PC–610) a nomination for the prestigious 2016 Pinnacle Awards, which celebrate the form and function, innovation, consumer benefit, and the retailer/manufacturer benefits of today's most influential furniture designs. It was also the recipient of a 2016 Design Journal Awards for Design Excellence (ADEX), which celebrate products that ergonomically blend form, function and fashion.

“We are always pleased to be a part of the High Point Market,” said Andrew Cohen, President of Human Touch. “In addition to our other popular line of products, this year we unveiled our newest and most advanced massage chair yet — the Novo XT. This revolutionary wellness solution is different than anything else that attendees saw at High Point, both in unique aesthetics and in cutting–edge technology. Our feedback from the show was overwhelmingly positive, with several orders written for this new introduction. We were thrilled to enjoy the ability to personally share our vision of wellness with attendees and look forward to seeing strong sales in our retail partner's stores.”

About Human Touch

Human Touch is the leading provider of high–quality, innovative lifestyle products, massage chairs, and experiences that have been delivering indispensable, life–changing benefits to an ever–growing number of consumers for more than 35 years. Human Touch has been making people feel better by developing state–of–the–art massage products containing patented massage systems that replicate the hands and techniques used by massage professionals, thereby helping to reduce pain and stress caused by today's hectic lifestyle. Products are available at fine furniture stores, back care specialty stores, and mass–market retailers across the U.S., through international retailers and distributors in more than 40 countries, and online at www.humantouch.com.

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5Banc Split Inc. Announces Final Redemptions

TORONTO, ON—(Marketwired – October 31, 2016) – 5Banc Split Inc. (the “Company”) (TSX: FBS.B) (TSX: FBS.PR.C) announced today that, in accordance with the expiration of the term and as set out in the short form prospectus of the Company dated December 8, 2011 (the “Prospectus”), the Company will redeem all outstanding Class C Preferred Shares and Class B Capital Shares (collectively, the “Shares”) on December 15, 2016 (the “Redemption Date”) as scheduled and in accordance with their share provisions.

Prior to the Redemption Date, Timbercreek Asset Management Ltd. will sell the Company's portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto–Dominion Bank to fund the redemptions. On the Redemption Date, in accordance with the share provisions for the Shares, holders of Class C Preferred Shares shall be entitled to receive a redemption price per share equal to the lesser of $10.00 and the Company's unit value. Holders of Class B Capital Shares shall be entitled to receive a redemption price per share equal to the amount by which the unit value exceeds $10.00, or provided the holder tenders to the Company at least 20 business days prior to the Redemption Date a cash amount of $10.00 for each Class B Capital Share redeemed, such holder's pro rata share of the Company's portfolio of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto–Dominion Bank common shares plus (or minus) the pro rata share of the amount by which the value of the other assets of the Company exceed (or are less than) the liabilities of the Company as at the Redemption Date and the redemption value at the Class E Shares.

The Company was established to provide holders of Class C Preferred Shares with fixed cumulative preferential dividends, while providing holders of the Class B Capital Shares with a leveraged opportunity to participate in capital appreciation from a portfolio of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto–Dominion Bank. In that respect, as of August 15, 2016, the Class C Preferred Shares, since the reorganization on December 15, 2011, have generated a consistent 4.75% annual yield, with no change to the par value, while the Class B Capital Shares have delivered a net capital appreciation of 15.14% annualized, which compares to the underlying stock appreciation of 9.29%.

Information concerning 5Banc Split Inc. is available on our website at
http://www.timbercreek.com/investments/managed–companies/5banc–split–inc/overview

Forward looking statements:
This release includes forward–looking statements regarding the Company which may include, but is not limited to, the expectations regarding the redemption prices payable and the timing of the Redemption Date. Such statements are based on the current expectations of management. The forward–looking events and circumstances discussed in this release may not occur by certain specified dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company.

Horace Mann Reports Third Quarter 2016 Net Income per Share of $0.65; Operating EPS of $0.58

SPRINGFIELD, IL—(Marketwired – October 31, 2016) –

  • Third quarter net income increased 23%, driven primarily by strong investment results
  • Sales increased in all lines for the quarter
  • Book value per share excluding the fair value adjustment for investments of $27.54, up 4% compared to a year ago

Horace Mann Educators Corporation (NYSE: HMN) today reported financial results for the three and nine months ended September 30, 2016:

     
  Horace Mann Financial Highlights  
    Three months ended   Nine months ended  
    September 30,   September 30,  
  ($ in millions, except per share                        
  amounts) 2016   2015   Change   2016   2015   Change  
  Total revenues $291.3   $265.7   9.6 % $846.1   $804.3   5.2 %
  Net income 26.9   21.9   22.8 % 63.9   72.4   –11.7 %
  Net income per diluted share 0.65   0.52   25.0 % 1.55   1.71   –9.4 %
  Operating income* 24.2   21.2   14.2 % 60.1   66.9   –10.2 %
  Operating income per                        
  diluted share* 0.58   0.50   16.0 % 1.45   1.58   –8.2 %
  Book value per share             35.94   32.09   12.0 %
  Book value per share excluding                        
  the fair value adjustment                        
  for investments*             27.54   26.52   3.8 %
  Property and Casualty segment                        
  net income 6.7   11.2   –40.2 % 16.0   32.1   –50.2 %
  Property and Casualty                        
  combined ratio 101.5 % 95.4 % 6.1 pts   102.4 % 96.5 % 5.9 pts  
  Property and Casualty underlying                        
  combined ratio* 96.6 % 93.9 % 2.7 pts   92.8 % 90.5 % 2.3 pts  
  Annuity segment net income $ 15.7   $ 8.7   80.5 % $ 39.3   $ 33.0   19.1 %
  Life segment net income 4.6   3.6   27.8 % 13.1   10.6   23.6 %

* These measures are not based on accounting principles generally accepted in the United States (“non–GAAP”). They are reconciled to the most directly comparable GAAP measures in the supplemental numerical pages of this document. An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the company's reports filed with the SEC.
N.M. – Not meaningful.

“Horace Mann's third quarter operating income was $0.58 per diluted share. Each of our segments reflected an increase in investment income, and the annuity net interest spread improved in the quarter. Property and casualty results in the quarter were impacted by adverse weather, resulting in an elevated level of catastrophe and non–catastrophe losses. Sales results were strong, with increases across all four of our product lines,” said Horace Mann's President and CEO Marita Zuraitis.

“We are revising our estimate of full–year 2016 operating income to between $1.80 and $1.90 per share to incorporate third quarter results, as well as our current pretax estimate, $9 million to $11 million, of catastrophe losses related to Hurricane Matthew. In addition, we updated our guidance to include the elevated automobile loss severity and frequency trends,” stated Zuraitis.

Property and Casualty Segment

For the third quarter of 2016, property and casualty recorded net income of $6.7 million compared to $11.2 million for the same period in the prior year. The total property and casualty combined ratio of 101.5% increased 6.1 points compared to a year earlier. Catastrophe losses of $8.4 million pretax were $3.4 million higher than the third quarter of 2015, representing 1.9 points of the combined ratio increase. Prior years' reserves continue to develop favorably; however, the favorable development in the current quarter was $2.1 million pretax lower than the amount a year ago, representing 1.5 points of the combined ratio increase. On an underlying basis, the auto loss ratio of 77.7% increased 1.1 points compared to a year earlier, primarily as a result of elevated auto loss frequencies. Despite a 3.9 point increase in the underlying property loss ratio, the current quarter's result of 52.9% was strong; the increase reflected the impact of higher weather–related loss frequencies, partially offset by lower reinsurance costs. The total property and casualty expense ratio increased modestly compared to the third quarter of 2015, as anticipated. For both the three and nine months, property and casualty investment income improved by approximately $3 million.

For the first nine months of 2016, property and casualty net income of $16.0 million decreased $16.1 million compared to the prior year. The current period total property and casualty combined ratio of 102.4% increased 5.9 points compared to a year ago, including an underlying loss ratio that increased 1.4 points compared to the prior year, as well as a slightly higher expense ratio. Catastrophe losses were $11.6 million higher than the first nine months of 2015; favorable prior years' reserve development was $5.7 million less than the prior year amount. On an underlying basis, the nine month auto loss ratio of 76.5% increased 3.1 points compared to a year earlier. For property, the underlying loss ratio was 43.6% for the current year, 2.3 points lower than the first nine months of 2015.

Compared to the first nine months of 2015, the property and casualty expense ratio of 27.2% increased 0.9 points, primarily due to a reduction in incentive compensation accruals recorded in the first quarter of 2015. The majority of that 2015 cost reduction benefited the property and casualty segment, increasing that segment's net income by approximately $2 million and decreasing the combined ratio by approximately 1 percentage point for the nine months ended September 30, 2015.

Total property and casualty written premiums of $169.8 million and $476.3 million for the three and nine months ended September 30, 2016, respectively, each increased 5% compared to the prior year. The growth was driven primarily by increases in average premium per policy for both auto and property, accompanied by an increase in auto policies in force and reductions in catastrophe reinsurance costs.

Total property and casualty sales increased 3% and 7% compared to the three and nine months ended September 30, 2015, respectively. Auto sales increased 3% for the current quarter and 8% for the nine months compared to the prior year periods, while property sales increased 2% and 4% for the respective periods. Policy retention continues to be strong with auto and property policy retention rates for the current period at 84% and 88%, respectively.

Annuity Segment

For the three and nine months ended September 30, 2016, annuity segment net income of $15.7 million and $39.3 million, respectively, increased $7.0 million and $6.3 million compared to the prior year periods. In the current year, both periods reflected an increase in the net interest margin partially offset by an increase in operating expenses including costs related to the company's continued modernization of technology and infrastructure. And, in the current year, the impact of unlocking deferred policy acquisition costs had a minimal impact on pretax income compared to the $1.9 million decrease to pretax income recorded in both the three and nine months ended September 30, 2015. The annuity segment also benefited from a reduction in income tax of approximately $1.5 million related to the filing of the prior calendar year tax return.

The nine month 2016 annualized net interest spread on fixed annuity assets was 195 basis points. This measure increased 10 basis points from a year ago, which reflected an increase in investment prepayments and favorable returns on alternative investments, offset somewhat by the impact of the continued low interest rate environment. Total annuity assets under management of $6.3 billion increased 8% compared to September 30, 2015, and total cash value persistency remained strong at approximately 95%.

For the three months ended September 30, 2016, annuity deposits of $154.6 million increased 11% compared to the prior year period, while annuity deposits of $391.9 million for the current nine months decreased 7% compared to a year ago. The majority of the decline in annuity deposits for the current nine months was due to an elevated level of non–recurring deposits in the first half of 2015 related to changes in the company's employee retirement savings plans.

Horace Mann's total annuity sales increased 11% for the current quarter and decreased 4% compared to the nine months ended September 30, 2015, with the year–to–date change primarily reflecting reductions in single premium and rollover deposits, largely related to the company's employee retirement savings plans, as well as a modest decrease in recurring deposit business for the nine months.

Life Segment

Life segment net income of $4.6 million and $13.1 million for the current three and nine months, respectively, increased $1.0 million and $2.5 million compared to the respective periods in 2015, primarily attributable to increases in investment income, as well as a year to date decrease in mortality losses in 2016, compared to the prior year periods.

In 2016, life segment insurance premiums and contract deposits of $27.2 million for the current quarter and $78.4 million for the nine months increased 9% and 6% compared to the respective periods in 2015. Life sales of $3.6 million increased $1.0 million compared to the third quarter of 2015, including an increase of $0.6 million for single premium sales, which included the company's new Indexed Universal Life product. Similarly, the year to date sales of $10.7 million increased $3.3 million with $2.3 million of the increase attributable to single premium sales. Life persistency of 96% was comparable to 12 months earlier.

Investment Results

Total net investment income increased 17% and 9% compared to the three and nine months ended September 30, 2015, respectively. While asset balances in the annuity segment continued to grow, overall investment results reflected the increase in investment prepayment activity and favorable returns on alternative investments, partially offset by the impact of the current low interest rate environment. Pretax net realized investment gains were $4.0 million and $6.9 million for the three and nine months ended September 30, 2016, respectively.

Horace Mann's net unrealized investment gains on fixed maturity and equity securities were $599.3 million at September 30, 2016, compared to net unrealized gains of $584.1 million at June 30, 2016 and $309.8 million at December 31, 2015. Net unrealized gains were $403.2 million at September 30, 2015.

Webcast Conference Call

Horace Mann's senior management will discuss the company's third quarter financial results with investors and analysts on November 1, 2016 at 9:00 a.m. Eastern Time. The conference call will be webcast live on the Internet at investors.horacemann.com and archived later in the day for replay.

Horace Mann — the largest national multiline insurance company focusing on educators' financial needs — provides auto, homeowners and life insurance, retirement products and other financial solutions. Founded by Educators for Educators® in 1945, the company is headquartered in Springfield, Ill. For more information, visit www.horacemann.com.

Statements included in this news release that are not historical in nature are forward–looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward–looking statements, whether as a result of new information, future events or otherwise. Please refer to the company's Quarterly Report on Form 10–Q for the period ended June 30, 2016 and the company's past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward–looking statements. The information contained in this press release includes financial measures which are based on methodologies other than United States generally accepted accounting principles (“GAAP”). Reconciliations of non–GAAP measures to the closest GAAP measures are contained in the supplemental numerical pages of this release and additional descriptions of the non–GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to the company's SEC filings.

   
HORACE MANN EDUCATORS CORPORATION  
Financial Highlights (Unaudited)  
(Dollars in Millions, Except Per Share Data)  
   
   
    Three Months Ended         Nine Months Ended      
    September 30,         September 30,      
    2016   2015   % Change     2016     2015   % Change  
EARNINGS SUMMARY                              
   
Net income $ 26.9 $ 21.9   22.8 % $ 63.9   $ 72.4   –11.7 %
  Net realized investment gains, after tax (see below)   2.7   0.7   N.M.     3.8     5.5   –30.9 %
Operating income (A)   24.2   21.2   14.2 %   60.1     66.9   –10.2 %
   
Per diluted share:                              
  Net income $ 0.65 $ 0.52   25.0 % $ 1.55   $ 1.71   –9.4 %
    Net realized investment gains, after tax (see below) $ 0.07 $ 0.02   N.M.   $ 0.10   $ 0.13   –23.1 %
  Operating income (A) $ 0.58 $ 0.50   16.0 % $ 1.45   $ 1.58   –8.2 %
   
Weighted average number of shares                              
and equivalent shares (in millions) – Diluted   41.3   42.3   –2.4 %   41.4     42.4   –2.4 %
   
   
   
RETURN ON EQUITY                              
   
Net income return on equity (B)                 6.3 %   7.7 % N.M.  
Operating income return on equity excluding the fair value                              
adjustment for investments (A) (C)                 7.2 %   9.0 % N.M.  
   
   
   
FINANCIAL POSITION                              
   
Per share (D):                              
  Book value               $ 35.94   $ 32.09   12.0 %
    Effect of the fair value adjustment for investments (E)               $ 8.40   $ 5.57   50.8 %
  Book value excluding the fair value adjustment for investments (A)             $ 27.54   $ 26.52   3.8 %
   
  Dividends paid $ 0.265 $ 0.250   6.0 % $ 0.795   $ 0.750   6.0 %
   
Ending number of shares outstanding (in millions) (D)                 40.2     40.7   –1.2 %
   
Total assets               $ 10,691.1   $ 9,903.5   8.0 %
Short–term debt                     113.0   –100.0 %
Long–term debt, current and noncurrent                 247.1     125.0   97.7 %
Total shareholders' equity                 1,444.1     1,307.2   10.5 %
   
   
   
ADDITIONAL INFORMATION                              
   
Net realized investment gains                              
  Before tax $ 4.0 $ 1.3   N.M.   $ 6.9   $ 8.8   –21.6 %
  After tax   2.7   0.7   N.M.     3.8     5.5   –30.9 %
    Per share, diluted $ 0.07 $ 0.02   N.M.   $ 0.10   $ 0.13   –23.1 %
                                   
                                   

N.M. – Not meaningful.

   
(A) These measures are not based on accounting principles generally accepted in the United States (“non–GAAP”). An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the company's reports filed with the SEC.
(B) Based on trailing 12–month net income and average quarter–end shareholders' equity.
(C) Based on trailing 12–month operating income and average quarter–end shareholders' equity which has been adjusted to exclude the fair value adjustment for investments, net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.
(D) Ending shares outstanding were 40,182,965 at September 30, 2016 and 40,741,071 at September 30, 2015.
(E) Net of the related impact on deferred policy acquisition costs and the applicable deferred taxes.

–1 –

   
HORACE MANN EDUCATORS CORPORATION  
Statements of Operations and Supplemental Consolidated Data (Unaudited)  
(Dollars in Millions)  
   
   
      Three Months Ended         Nine Months Ended      
      September 30,         September 30,      
      2016     2015   % Change     2016     2015   % Change  
STATEMENTS OF OPERATIONS                                  
   
Insurance premiums and contract charges earned   $ 191.1   $ 182.8   4.5 % $ 564.9   $ 544.9   3.7 %
Net investment income     94.9     81.0   17.2 %   270.7     248.3   9.0 %
Net realized investment gains     4.0     1.3   N.M.     6.9     8.8   –21.6 %
Other income     1.3     0.6   116.7 %   3.6     2.3   56.5 %
   
    Total revenues     291.3     265.7   9.6 %   846.1     804.3   5.2 %
   
Benefits, claims and settlement expenses     135.7     121.1   12.1 %   403.6     368.1   9.6 %
Interest credited     48.6     46.2   5.2 %   142.9     136.1   5.0 %
Policy acquisition expenses amortized     24.5     25.7   –4.7 %   73.1     73.4   –0.4 %
Operating expenses     44.5     39.7   12.1 %   130.6     115.6   13.0 %
Interest expense     3.0     2.6   15.4 %   8.9     9.6   –7.3 %
   
    Total benefits, losses and expenses     256.3     235.3   8.9 %   759.1     702.8   8.0 %
   
Income before income taxes     35.0     30.4   15.1 %   87.0     101.5   –14.3 %
  Income tax expense     8.1     8.5   –4.7 %   23.1     29.1   –20.6 %
   
Net income   $ 26.9   $ 21.9   22.8 % $ 63.9   $ 72.4   –11.7 %
   
   
   
PREMIUMS WRITTEN AND CONTRACT DEPOSITS                                  
   
Property & Casualty   $ 169.8   $ 162.0   4.8 % $ 476.3   $ 455.0   4.7 %
   
Annuity deposits     154.6     139.3   11.0 %   391.9     422.2   –7.2 %
   
Life     27.2     24.9   9.2 %   78.4     74.1   5.8 %
   
    Total   $ 351.6   $ 326.2   7.8 % $ 946.6   $ 951.3   –0.5 %
   
   
   
SEGMENT NET INCOME (LOSS)                                  
   
Property & Casualty   $ 6.7   $ 11.2   –40.2 % $ 16.0   $ 32.1   –50.2 %
   
Annuity     15.7     8.7   80.5 %   39.3     33.0   19.1 %
   
Life     4.6     3.6   27.8 %   13.1     10.6   23.6 %
   
Corporate and other (A)     (0.1 )   (1.6 ) –93.8 %   (4.5 )   (3.3 ) 36.4 %
   
  Net income   $ 26.9   $ 21.9   22.8 % $ 63.9   $ 72.4   –11.7 %
                                     
                                     

N.M. – Not meaningful.

   
(A) The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. The company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. See detail for this segment on page 4.

–2–

   
HORACE MANN EDUCATORS CORPORATION  
Supplemental Business Segment Overview (Unaudited)  
(Dollars in Millions)  
   
   
    Three Months Ended           Nine Months Ended        
    September 30,           September 30,        
    2016     2015     % Change     2016     2015     % Change  
PROPERTY & CASUALTY                                    
   
Premiums written $ 169.8   $ 162.0     4.8 % $ 476.3   $ 455.0     4.7 %
Premiums earned   155.7     149.2     4.4 %   461.5     443.6     4.0 %
Net investment income   10.0     7.4     35.1 %   29.0     25.8     12.4 %
Other income   0.4         N.M.     0.8     0.2     N.M.  
Losses and loss adjustment expenses (LAE)   116.0     102.7     13.0 %   347.0     311.4     11.4 %
Operating expenses (includes policy acquisition expenses amortized)   42.0     39.8     5.5 %   125.3     116.7     7.4 %
Income before tax   8.1     14.1     –42.6 %   19.0     41.5     –54.2 %
Net income   6.7     11.2     –40.2 %   16.0     32.1     –50.2 %
   
Net investment income, after tax   7.9     6.5     21.5 %   23.2     21.9     5.9 %
   
Catastrophe costs (A)                                    
  After tax   5.5     3.3     66.7 %   31.5     23.9     31.8 %
  Before tax   8.4     5.0     68.0 %   48.4     36.8     31.5 %
   
Prior years' reserves favorable (adverse) development, before tax                                    
    Automobile       1.5     –100.0 %       4.2     –100.0 %
    Property   0.7     1.3     –46.2 %   4.3     4.6     –6.5 %
    Other liability                   1.2     –100.0 %
   
      Total   0.7     2.8     –75.0 %   4.3     10.0     –57.0 %
   
Operating statistics:                                    
  Loss and loss adjustment expense ratio   74.5 %   68.8 %   N.M.     75.2 %   70.2 %   N.M.  
  Expense ratio   27.0 %   26.6 %   N.M.     27.2 %   26.3 %   N.M.  
  Combined ratio   101.5 %   95.4 %   N.M.     102.4 %   96.5 %   N.M.  
  Effect on the combined ratio of:                                    
    Catastrophe costs (A)   5.3 %   3.4 %   N.M.     10.5 %   8.3 %   N.M.  
    Prior years' reserve development   –0.4 %   –1.9 %   N.M.     –0.9 %   –2.3 %   N.M.  
  Combined ratio excluding the effects of catastrophe costs and prior years' reserve development (“underlying combined ratio”) (B)  

96.6

%  

93.9

%  

N.M.

   

92.8

%  

90.5

%  

N.M.

 
   
Policies in force (voluntary) (in thousands)                     707     710     –0.4 %
  Automobile                     486     485     0.2 %
  Property                     221     225     –1.8 %
   
Policy renewal rate (voluntary) – 12 months                                    
  Automobile                     83.5 %   84.8 %   N.M.  
  Property                     87.8 %   88.1 %   N.M.  
                                       
                                       

N.M. – Not meaningful.

   
(A) Includes allocated loss adjustment expenses and, when applicable, catastrophe reinsurance reinstatement premiums. For the periods presented, there were no reinsurance reinstatement premiums.
(B) This measure is not based on accounting principles generally accepted in the United States (“non–GAAP”). See footnote (A) on page 1 of these supplemental numerical pages.

–3–

   
HORACE MANN EDUCATORS CORPORATION  
Supplemental Business Segment Overview (Unaudited)  
(Dollars in Millions)  
                                   
  Three Months Ended           Nine Months Ended        
  September 30,           September 30,        
  2016     2015     % Change     2016     2015     % Change  
ANNUITY                                  
                                   
Contract deposits $ 154.6     $ 139.3     11.0 %   $ 391.9     $ 422.2     –7.2 %
  Variable   37.7       37.3     1.1 %     117.6       132.6     –11.3 %
  Fixed   116.9       102.0     14.6 %     274.3       289.6     –5.3 %
Contract charges earned   6.4       6.6     –3.0 %     18.6       19.3     –3.6 %
Net investment income   66.3       56.2     18.0 %     187.0       169.8     10.1 %
Interest credited   37.4       35.1     6.6 %     109.4       103.0     6.2 %
  Net interest margin (without realized investment gains/losses)   28.9       21.1     37.0 %     77.6       66.8     16.2 %
Other income   0.5       0.4     25.0 %     2.0       1.5     33.3 %
Mortality loss and other reserve changes   (1.4 )     (1.0 )   40.0 %     (3.1 )     (1.9 )   63.2 %
Operating expenses (includes policy acquisition expenses amortized)   14.1       14.1           41.3       37.4     10.4 %
Income before tax   20.3       13.0     56.2 %     53.8       48.3     11.4 %
Net income   15.7       8.7     80.5 %     39.3       33.0     19.1 %
                                           
Pretax income increase (decrease) due to evaluation of:                                          
    Deferred policy acquisition costs $ 0.1     $ (1.9 )   N.M.     $ (0.6 )   $ (1.9 )   –68.4 %
    Guaranteed minimum death benefit reserve         (0.1 )   –100.0 %           (0.1 )   –100.0 %
                                           
Annuity contracts in force (in thousands)                         215       207     3.9 %
Accumulated account value on deposit / Assets under management                       $ 6,322.8     $ 5,879.1     7.5 %
  Variable                         1,873.6       1,742.0     7.6 %
  Fixed                         4,449.2       4,137.1     7.5 %
Annuity accumulated value retention – 12 months                                          
  Variable accumulations                         94.6 %     94.1 %   N.M.  
  Fixed accumulations                         94.6 %     94.8 %   N.M.  
                                           
                                           
                                           
LIFE                                          
                                           
Premiums and contract deposits $ 27.2     $ 24.9     9.2 %   $ 78.4     $ 74.1     5.8 %
Premiums and contract charges earned   29.0       27.0     7.4 %     84.8       82.0     3.4 %
Net investment income   18.8       17.7     6.2 %     55.3       53.4     3.6 %
Other income   0.3       0.1     N.M.       0.6       0.5     20.0 %
Death benefits/mortality cost/change in reserves   18.3       17.4     5.2 %     53.5       54.8     –2.4 %
Interest credited   11.2       11.1     0.9 %     33.5       33.1     1.2 %
Operating expenses (includes policy acquisition expenses amortized)   11.5       10.7     7.5 %     33.4       31.5     6.0 %
Income before tax   7.1       5.6     26.8 %     20.3       16.5     23.0 %
Net income   4.6       3.6     27.8 %     13.1       10.6     23.6 %
                                           
Pretax income increase (decrease) due to                                          
evaluation of:                                          
    Deferred policy acquisition costs $     $         $ 0.2     $ 0.1     100.0 %
                                           
Life policies in force (in thousands)                         198       201     –1.5 %
Life insurance in force                       $ 16,864     $ 16,312     3.4 %
Lapse ratio – 12 months                                          
  (Ordinary life insurance)                         4.1 %     4.0 %   N.M.  
                                           
                                           
                                           
CORPORATE AND OTHER (A)                                          
                                           
Components of income (loss) before tax:                                          
  Net realized investment gains $ 4.0     $ 1.3     207.7 %   $ 6.9     $ 8.8     –21.6 %
  Interest expense   (3.0 )     (2.6 )   15.4 %     (8.9 )     (9.6 )   –7.3 %
                                           
  Other operating expenses, net investment income and other income   (1.5 )     (1.0 )   50.0 %     (4.1 )     (4.0 )   2.5 %
Loss before tax   (0.5 )     (2.3 )   –78.3 %     (6.1 )     (4.8 )   27.1 %
Net loss   (0.1 )     (1.6 )   –93.8 %     (4.5 )     (3.3 )   36.4 %
                                           
                                           

N.M. – Not meaningful.

   
(A) The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. The company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments.

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HORACE MANN EDUCATORS CORPORATION  
Supplemental Business Segment Overview (Unaudited)  
(Dollars in Millions)  
   
   
    Three Months Ended       Nine Months Ended      
    September 30,       September 30,      
    2016   2015   % Change   2016   2015   % Change  
INVESTMENTS                         
   
Annuity and Life                                
  Fixed maturities, at fair value (amortized cost 2016, $6,144.0; 2015, $5,892.0)                 $ 6,675.5   $ 6,261.6   6.6 %
  Equity securities, at fair value (cost 2016, $62.2; 2015, $35.3)                   65.0     33.2   95.8 %
  Short–term investments                   178.6     72.3   147.0 %
  Policy loans                   150.7     147.4   2.2 %
  Other investments                   132.0     80.5   64.0 %
    Total Annuity and Life investments                   7,201.8     6,595.0   9.2 %
   
Property & Casualty                                
  Fixed maturities, at fair value (amortized cost 2016, $763.6; 2015, $784.5)                   818.6     817.1   0.2 %
  Equity securities, at fair value (cost 2016, $62.6; 2015, $59.8)                   72.6     62.9   15.4 %
  Short–term investments                   2.1     4.4   –52.3 %
  Other investments                   40.6     35.8   13.4 %
    Total Property & Casualty investments                   933.9     920.2   1.5 %
   
Corporate investments                   33.5     26.0   28.8 %
   
    Total investments                   8,169.2     7,541.2   8.3 %
   
   
   
Net investment income                                
  Before tax $ 94.9   $ 81.0   17.2 % $ 270.7   $ 248.3   9.0 %
  After tax   63.0     54.3   16.0 %   180.3     166.5   8.3 %
                                   
                                   

N.M. – Not meaningful.

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