Separate Account 27 Financials

KPMG LLP
Aon Center
Suite 5500
200 E. Randolph Street
Chicago, IL 60601-6436

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Horace Mann Life Insurance Company and Contract Owners of Horace Mann Life Insurance Company Group Annuity Separate Account:

Opinion on the Financial Statements

We have audited the accompanying statements of net assets of the sub-accounts listed in the Appendix that comprise the Horace Mann Life Insurance Company Group Annuity Separate Account (the Separate Account) as of December 31, 2023, the related statements of operations for the year or period then ended, statements of changes in net assets for each of the years or periods in the two-year period then ended, and the related notes (collectively, the financial statements) including the financial highlights in Note 6 for each of the years or periods in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each sub-account as of December 31, 2023, the results of its operations for the year or period listed in the Appendix, changes in its net assets for the years or periods listed in the Appendix, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Separate Account’s auditor since 1989.

Chicago, Illinois
March 27, 2024

KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.

Appendix

Statements of net assets as of December 31, 2023, the related statements of operations for the year then ended, and the statements of changes in contract owner’s equity for each of the years in the two -year period then ended.

ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B
ARIEL FUND INVESTOR CLASS
ARIEL APPRECIATION FUND INVESTOR CLASS
BLACKROCK CORE BOND II PORTFOLIO SC
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS
BLACKROCK LOW DURATION BOND PORTFOLIO SC
BLACKROCK ISHARES S&P 500 INDEX FUND SC
DAVIS VALUE PORTFOLIO
FIDELITY VIP MID CAP PORTFOLIO SC2
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS
WILSHIRE VIT GLOBAL ALLOCATION FUND

LTR2

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statement of Net Assets

December 31, 2023

	ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	ARIEL FUND INVESTOR CLASS	ARIEL APPRECIATION FUND INVESTOR CLASS	BLACKROCK CORE BOND II PORTFOLIO SC	BLACKROCK LIQUIDITY FUNDS TEMPFUND ADMIN CLASS	BLACKROCK LOW DURATION BOND PORTFOLIO SC	BLACKROCK ISHARES S&P 500 INDEX FUND SC	DAVIS VALUE PORTFOLIO
ASSETS
Investments at market value	$1,169,398	$2,028,740	$1,841,629	$161,686	$220,489	$116,975	$2,104,717	$2,129,248
TOTAL ASSETS	$1,169,398	$2,028,740	$1,841,629	$161,686	$220,489	$116,975	$2,104,717	$2,129,248
NET ASSETS
Active Contracts	$1,169,398	$2,028,740	$1,841,629	$161,686	$220,489	$116,975	$2,104,717	$2,129,248
Payout Contracts	$—	$—	$—	$—	$—	$—	$—	$—
TOTAL NET ASSETS	$1,169,398	$2,028,740	$1,841,629	$161,686	$220,489	$116,975	$2,104,717	$2,129,248
INVESTMENTS
Cost of investments	$915,219	$1,958,843	$2,089,687	$181,054	$220,307	$125,347	$1,186,938	$2,514,225
Unrealized appreciation (depreciation) on investments	$254,179	$69,897	$(248,058)	$(19,368)	$182	$(8,372)	$917,779	$(384,977)
Number of shares in underlying mutual funds	17,464	29,703	47,052	19,294	220,291	12,999	3,768	341,226
Total Net Assets Represented by:
Number of units outstanding:
M&E Rate .0080	8,507	11,575	11,451	10,402	190,445	8,785	19,087	53,416
Total Units	8,507	11,575	11,451	10,402	190,445	8,785	19,087	53,416
Accumulation Unit Value (Net assets divided by units outstanding)
M&E Rate .0080	$137.47	$175.27	$160.82	$15.54	$1.16	$13.32	$110.27	$39.86

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statement of Net Assets

December 31, 2023

	FIDELITY VIP MID CAP PORTFOLIO SC2	GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	WILSHIRE VIT GLOBAL ALLOCATION FUND
ASSETS
Investments at market value	$2,240,038	$525,378	$189,195	$1,388,001	$545,226	$436,693	$270,628	$15,098
TOTAL ASSETS	$2,240,038	$525,378	$189,195	$1,388,001	$545,226	$436,693	$270,628	$15,098
NET ASSETS
Active Contracts	$2,240,038	$525,378	$189,195	$1,388,001	$545,226	$436,693	$270,628	$15,098
Payout Contracts	$—	$—	$—	$—	$—	$—	$—	$—
TOTAL NET ASSETS	$2,240,038	$525,378	$189,195	$1,388,001	$545,226	$436,693	$270,628	$15,098
INVESTMENTS
Cost of investments	$2,153,440	$493,281	$318,260	$1,358,095	$387,548	$517,240	$266,320	$16,370
Unrealized appreciation (depreciation) on investments	$86,598	$32,097	$(129,065)	$29,906	$157,678	$(80,547)	$4,308	$(1,272)
Number of shares in underlying mutual funds	64,573	59,365	21,210	23,277	39,653	11,042	28,821	881
Total Net Assets Represented by:
Number of units outstanding:
M&E Rate .0080	18,074	27,647	3,919	12,100	17,642	3,444	5,753	512
Total Units	18,074	27,647	3,919	12,100	17,642	3,444	5,753	512
Accumulation Unit Value (Net assets divided by units outstanding)
M&E Rate .0080	$123.93	$19.00	$48.27	$114.71	$30.90	$126.80	$47.04	$29.51

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statement of Operations

For the year ended December 31, 2023

	ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	ARIEL FUND INVESTOR CLASS	ARIEL APPRECIATION FUND INVESTOR CLASS	BLACKROCK CORE BOND II PORTFOLIO SC	BLACKROCK LIQUIDITY FUNDS TEMPFUND ADMIN CLASS	BLACKROCK LOW DURATION BOND PORTFOLIO SC	BLACKROCK ISHARES S&P 500 INDEX FUND SC	DAVIS VALUE PORTFOLIO
INVESTMENT INCOME
Dividend income distribution	$—	$8,477	$14,905	$5,638	$10,657	$4,363	$27,276	$25,872
Investment Income	—	8,477	14,905	5,638	10,657	4,363	27,276	25,872
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital gain distribution	78,406	90,145	95,501	260	—	—	1,353	206,673
Net realized gain (loss) on investments	76,734	29,131	(47,305)	(3,151)	6	(327)	82,484	(180,653)
Net change in unrealized appreciation (depreciation) on investments	160,663	158,446	114,629	5,658	83	2,024	335,487	507,985
Net gain (loss) on investments	315,803	277,722	162,825	2,767	89	1,697	419,324	534,005
EXPENSES
Mortality and expense risk charge (Note 3)	(8,539)	(15,228)	(14,287)	(1,315)	(1,749)	(918)	(15,453)	(15,604)
Total Expenses	(8,539)	(15,228)	(14,287)	(1,315)	(1,749)	(918)	(15,453)	(15,604)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$307,264	$270,971	$163,443	$7,090	$8,997	$5,142	$431,147	$544,273

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statement of Operations

For the year ended December 31, 2023

	FIDELITY VIP MID CAP PORTFOLIO SC2	GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	WILSHIRE VIT GLOBAL ALLOCATION FUND
INVESTMENT INCOME
Dividend income distribution	$8,176	$13,508	$—	$—	$7,422	$—	$2,918	$189
Investment Income	8,176	13,508	—	—	7,422	—	2,918	189
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Capital gain distribution	61,395	—	—	41,259	—	—	—	499
Net realized gain (loss) on investments	(17,382)	(2,683)	(3,310)	5,756	11,735	3,342	1,298	(24)
Net change in unrealized appreciation (depreciation) on investments	250,179	71,227	21,700	155,389	75,023	150,967	35,545	1,476
Net gain (loss) on investments	294,192	68,544	18,390	202,404	86,758	154,309	36,843	1,951
EXPENSES
Mortality and expense risk charge (Note 3)	(17,415)	(3,684)	(1,448)	(11,190)	(4,037)	(3,061)	(2,008)	(111)
Total Expenses	(17,415)	(3,684)	(1,448)	(11,190)	(4,037)	(3,061)	(2,008)	(111)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$284,953	$78,368	$16,942	$191,214	$90,143	$151,248	$37,753	$2,029

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statements of Changes in Net Assets

For the year ended December 31, 2023

	ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	ARIEL FUND INVESTOR CLASS	ARIEL APPRECIATION FUND INVESTOR CLASS	BLACKROCK CORE BOND II PORTFOLIO SC	BLACKROCK LIQUIDITY FUNDS TEMPFUND ADMIN CLASS	BLACKROCK LOW DURATION BOND PORTFOLIO SC	BLACKROCK ISHARES S&P 500 INDEX FUND SC	DAVIS VALUE PORTFOLIO
OPERATIONS
Investment Income	$—	$8,477	$14,905	$5,638	$10,657	$4,363	$27,276	$25,872
Capital gain distribution	78,406	90,145	95,501	260	—	—	1,353	206,673
Net realized gain (loss) on investments	76,734	29,131	(47,305)	(3,151)	6	(327)	82,484	(180,653)
Net change in unrealized appreciation (depreciation) on investments	160,663	158,446	114,629	5,658	83	2,024	335,487	507,985
Mortality and expense risk charge (Note 3)	(8,539)	(15,228)	(14,287)	(1,315)	(1,749)	(918)	(15,453)	(15,604)
Net increase (decrease) in net assets resulting from operations	307,264	270,971	163,443	7,090	8,997	5,142	431,147	544,273
CONTRACT OWNERS' TRANSACTIONS
Net transfer from (to) fixed accumulation account	(1,791)	805	158	(117)	224	8	3,150	(4,280)
Transfer between funds	—	3,298	(33,012)	—	—	—	(26,032)	79
Payments to contract owners	(95,733)	(93,474)	(68,565)	(9,208)	(8,434)	(2,801)	(68,156)	(250,093)
Net increase (decrease) in net assets resulting from contract owners; transactions	(97,524)	(89,371)	(101,419)	(9,325)	(8,210)	(2,793)	(91,038)	(254,294)
TOTAL INCREASE (DECREASE) IN NET ASSETS	209,740	181,600	62,024	(2,235)	787	2,349	340,109	289,979
Net Assets:
Beginning of year	959,658	1,847,140	1,779,605	163,921	219,702	114,626	1,764,608	1,839,269
End of year	1,169,398	2,028,740	1,841,629	161,686	220,489	116,975	2,104,717	2,129,248

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statements of Changes in Net Assets

For the year ended December 31, 2023

	FIDELITY VIP MID CAP PORTFOLIO SC2	GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	WILSHIRE VIT GLOBAL ALLOCATION FUND
OPERATIONS
Investment Income	$8,176	$13,508	$—	$—	$7,422	$—	$2,918	$189
Capital gain distribution	61,395	—	—	41,259	—	—	—	499
Net realized gain (loss) on investments	(17,382)	(2,683)	(3,310)	5,756	11,735	3,342	1,298	(24)
Net change in unrealized appreciation (depreciation) on investments	250,179	71,227	21,700	155,389	75,023	150,967	35,545	1,476
Mortality and expense risk charge (Note 3)	(17,415)	(3,684)	(1,448)	(11,190)	(4,037)	(3,061)	(2,008)	(111)
Net increase (decrease) in net assets resulting from operations	284,953	78,368	16,942	191,214	90,143	151,248	37,753	2,029
CONTRACT OWNERS' TRANSACTIONS
Net transfer from (to) fixed accumulation account	(6,960)	(38)	1,204	(7,099)	77	(957)	3,675	—
Transfer between funds	351	36,109	—	(3)	—	19,211	—	—
Payments to contract owners	(258,358)	(26,352)	(2,124)	(239,133)	(23,725)	(24,876)	(16,712)	(1)
Net increase (decrease) in net assets resulting from contract owners; transactions	(264,967)	9,719	(920)	(246,235)	(23,648)	(6,622)	(13,037)	(1)
TOTAL INCREASE (DECREASE) IN NET ASSETS	19,986	88,087	16,022	(55,021)	66,495	144,626	24,716	2,028
Net Assets:
Beginning of year	2,220,052	437,291	173,173	1,443,022	478,731	292,067	245,912	13,070
End of year	2,240,038	525,378	189,195	1,388,001	545,226	436,693	270,628	15,098

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statements of Changes in Net Assets

For the year ended December 31, 2022

	ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	ARIEL FUND INVESTOR CLASS	ARIEL APPRECIATION FUND INVESTOR CLASS	BLACKROCK CORE BOND II PORTFOLIO SC	BLACKROCK LIQUIDITY FUNDS TEMPFUND ADMIN CLASS	BLACKROCK LOW DURATION BOND PORTFOLIO SC	BLACKROCK ISHARES S&P 500 INDEX FUND SC	DAVIS VALUE PORTFOLIO
OPERATIONS
Investment Income	$–	$8,013	$11,765	$3,698	$3,696	$2,819	$26,801	$25,676
Capital gain distribution	139,098	147,318	165,359	94	–	1,078	5,946	451,893
Net realized gain (loss) on investments	28,624	114,747	(96,034)	(1,048)	–	(2,693)	177,420	(122,466)
Net change in unrealized appreciation (depreciation) on investments	(567,082)	(742,696)	(380,014)	(31,002)	19	(9,060)	(633,175)	(861,182)
Mortality and expense risk charge (Note 3)	(8,604)	(16,680)	(15,856)	(1,426)	(1,772)	(1,133)	(15,611)	(16,846)
Net increase (decrease) in net assets resulting from operations	(407,964)	(489,298)	(314,780)	(29,684)	1,943	(8,989)	(438,619)	(522,925)
CONTRACT OWNERS' TRANSACTIONS
Net transfer from (to) fixed accumulation account	(8,247)	(68,933)	(26,291)	(489)	(256)	(334)	(10,547)	(50,818)
Transfer between funds	–	(4,069)	59,400	–	–	–	29,550	566
Payments to contract owners	(28,969)	(198,757)	(235,865)	(19,532)	(9,491)	(43,868)	(105,337)	(173,629)
Net increase (decrease) in net assets resulting from contract owners; transactions	(37,216)	(271,759)	(202,756)	(20,021)	(9,747)	(44,202)	(86,334)	(223,881)
TOTAL INCREASE (DECREASE) IN NET ASSETS	(445,180)	(761,057)	(517,536)	(49,705)	(7,804)	(53,191)	(524,953)	(746,806)
Net Assets:
Beginning of year	1,404,838	2,608,197	2,297,141	213,626	227,506	167,817	2,289,561	2,586,075
End of year	$959,658	$1,847,140	$1,779,605	$163,921	$219,702	$114,626	$1,764,608	$1,839,269

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Statements of Changes in Net Assets

For the year ended December 31, 2022

	FIDELITY VIP MID CAP PORTFOLIO SC2	GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	WILSHIRE VIT GLOBAL ALLOCATION FUND
OPERATIONS
Investment Income	$6,256	$15,588	$–	$–	$6,112	$–	$1,756	$492
Capital gain distribution	159,230	–	26,830	146,944	41,204	21,811	5,803	1,748
Net realized gain (loss) on investments	(8,832)	12,030	(15,953)	(3,231)	46,099	12,655	893	(8)
Net change in unrealized appreciation (depreciation) on investments	(565,701)	(104,394)	(113,198)	(528,772)	(192,004)	(196,693)	(91,197)	(5,086)
Mortality and expense risk charge (Note 3)	(18,636)	(3,861)	(1,768)	(12,664)	(4,193)	(2,669)	(2,175)	(110)
Net increase (decrease) in net assets resulting from operations	(427,683)	(80,637)	(104,089)	(397,723)	(102,782)	(164,896)	(84,920)	(2,964)
CONTRACT OWNERS' TRANSACTIONS
Net transfer from (to) fixed accumulation account	(3,769)	(546)	(7,969)	(3,175)	(41,270)	–	(1,913)	–
Transfer between funds	58,461	(59,830)	(54,638)	411	–	(32,947)	3,096	–
Payments to contract owners	(93,150)	(60,910)	(27,900)	(142,592)	(49,856)	(19,686)	(15,030)	–
Net increase (decrease) in net assets resulting from contract owners; transactions	(38,458)	(121,286)	(90,507)	(145,356)	(91,126)	(52,633)	(13,847)	–
TOTAL INCREASE (DECREASE) IN NET ASSETS	(466,141)	(201,923)	(194,596)	(543,079)	(193,908)	(217,529)	(98,767)	(2,964)
Net Assets:
Beginning of year	2,686,193	639,214	367,769	1,986,101	672,639	509,596	344,679	16,034
End of year	$2,220,052	$437,291	$173,173	$1,443,022	$478,731	$292,067	$245,912	$13,070

See accompanying notes to the financial statements.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements

For the Years Ended December 31, 2023 and December 31, 2022

1. Nature of Separate Account

Horace Mann Life Insurance Company - Group Annuity Separate Account (the Separate Account), a unit investment trust registered with the Securities and Exchange Commission under the Investment Company Act of 1940, was established by Horace Mann Life Insurance Company (HMLIC) to fund variable group annuity contracts. All assets are invested in shares of:

ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B

ARIEL FUND INVESTOR CLASS

ARIEL APPRECIATION FUND INVESTOR CLASS

BLACKROCK CORE BOND II PORTFOLIO SC

BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS

BLACKROCK LOW DURATION BOND PORTFOLIO SC

BLACKROCK ISHARES S&P 500 INDEX FUND SC

DAVIS VALUE PORTFOLIO

FIDELITY VIP MID CAP PORTFOLIO SC2

GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES

LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES

NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS

PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES

T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS

TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A

WILSHIRE VIT GLOBAL ALLOCATION FUND

The funds listed above are collectively referred to as the "Funds".

During 2023 no new funds were added to the separate account.

The contract owners' equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 3). The accompanying financial statements include only contract owners' purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of HMLIC.

A contract owner may choose from among a number of different underlying mutual fund options. HMLIC allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value (NAV), then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from HMLIC's other assets and liabilities. The Separate Account assets are not chargeable with liabilities arising out of any other business HMLIC may conduct.

2. Significant Accounting Policies

Basis of Presentation

The preparation of financial statements in conformity with U.S. generally accepted accounting principles 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 date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

Investments

Security transactions are recorded on a trade date basis. The carrying amounts of the assets approximate fair value and were measured based on the reported net asset values of the Funds, which in turn value their investment securities at fair value. Income from dividends and gains from realized gain distributions are recorded on the ex-distribution date. Realized gains (losses) from security transactions are determined for financial reporting purposes on the first-in-first-out basis.

The Separate Account measures the fair value of its investments on a recurring basis. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 820, Fair Value Measurement guidance establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities including valuations for securities listed on a national or foreign exchange or investments in mutual funds and securities lending collateral, which is valued as a practical expedient at its daily reported NAV.

Level 2 Unadjusted observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

At the end of each reporting period, an evaluation is made regarding whether or not any event has occurred or circumstances have changed that would cause an instrument to be transferred between levels.

The Separate Account measures the fair value of all its investments using level 1 inputs. For the year ended December 31, 2023, there were no transfers out of Level 1 securities.

Income Taxes

The operations of the Separate Account are taxed as part of the operations of HMLIC, which is taxed as a "life insurance company" under the provisions of the Internal Revenue Code. Under current law, no federal income taxes are payable with respect to the Separate Account. Therefore, no federal income tax provision is required.

Subsequent Events

Management evaluated subsequent events for the Separate Account through the date the financial statements are issued, and has concluded that there are no events that require financial statement disclosure or adjustments to the financial statements.

3. Expenses and Related Party Transactions

Certain specified amounts, as described in the annuity contracts, are paid to HMLIC to cover death benefits, surrender charges and expenses.

For assuming mortality and expense risks, HMLIC applies a charge through a reduction of unit values. The mortality and expense risk fee is assessed at an annual rate of 0.80% of the daily net assets of the Separate Account (0.45% for mortality risk, and 0.35% for expense risk). However, HMLIC reserves the right to change the fee (subject to the 0.80% ceiling) in the future. The fee is computed on a daily basis.There are no annual maintenance charges and no sales expense charges on purchase payments, surrenders or withdrawals.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Year Ended December 31, 2023

4. PURCHASE AND SALES OF SEPARATE ACCOUNT FUND SHARES

During the year ended December 31, 2023 purchases and proceeds from sales of fund shares were as follows:

	Purchases	Sales
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	$76,615	$27,539
ARIEL FUND INVESTOR CLASS	102,725	79,572
ARIEL APPRECIATION FUND INVESTOR CLASS	110,965	163,571
BLACKROCK CORE BOND II PORTFOLIO SC	5,781	13,674
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS	10,880	10,176
BLACKROCK LOW DURATION BOND PORTFOLIO SC	4,371	4,046
BLACKROCK ISHARES S&P 500 INDEX FUND SC	31,779	27,157
DAVIS VALUE PORTFOLIO	228,344	446,348
FIDELITY VIP MID CAP PORTFOLIO SC2	62,963	293,157
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	49,729	32,870
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	1,204	6,880
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	34,160	244,571
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	7,499	16,026
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	18,678	25,018
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	6,594	17,423
WILSHIRE VIT GLOBAL ALLOCATION FUND	688	137

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

5. CHANGE IN CONTRACT OWNERS' ACCOUNT UNITS

Account Division	Units outstanding at 01/01/2022	Consideration Received 2022	Net Transfers 2022	Payments to Contract Owners 2022	Units Outstanding at 12/31/2022	Consideration Received 2023	Net Transfers 2023	Payments to Contract Owners 2023	Units Outstanding at 12/31/2023
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	9,668	–	(77)	(256)	9,335	–	–	(828)	8,507
ARIEL FUND INVESTOR CLASS	13,770	–	(449)	(1,212)	12,109	–	22	(556)	11,575
ARIEL APPRECIATION FUND INVESTOR CLASS	13,618	–	127	(1,602)	12,143	–	(240)	(452)	11,451
BLACKROCK CORE BOND II PORTFOLIO SC	12,277	–	(46)	(1,189)	11,043	–	–	(640)	10,402
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS	206,537	–	–	(8,619)	197,918	–	–	(7,473)	190,445
BLACKROCK LOW DURATION BOND PORTFOLIO SC	12,423	–	(22)	(3,401)	9,001	–	–	(215)	8,785
BLACKROCK ISHARES S&P 500 INDEX FUND SC	21,040	–	112	(1,147)	20,004	–	(225)	(692)	19,087
DAVIS VALUE PORTFOLIO	67,634	–	(1,387)	(5,532)	60,715	–	27	(7,326)	53,416
FIDELITY VIP MID CAP PORTFOLIO SC2	20,824	–	429	(850)	20,402	–	3	(2,332)	18,074
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	33,970	–	(3,185)	(3,685)	27,100	–	2,080	(1,532)	27,647
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	5,598	–	(1,053)	(606)	3,939	–	26	(46)	3,919
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	15,794	–	(21)	(1,397)	14,376	–	11	(2,287)	12,100
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	21,687	–	(1,478)	(1,727)	18,482	–	–	(840)	17,642
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	3,921	–	(223)	(192)	3,505	–	161	(223)	3,444
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	6,396	–	25	(370)	6,050	–	83	(381)	5,753
WILSHIRE VIT GLOBAL ALLOCATION FUND	512	–	–	–	512	–	–	–	512

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

6. FINANCIAL HIGHLIGHTS

For the Year Ended December 31, 2023

Account Division	Units	Accumulated Unit Value	Net Assets	Expense Ratio*	Investment Income Ratio**	Total Return***
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	8,507	137.47	1,169,398	0.80%	-%	33.73%
ARIEL FUND INVESTOR CLASS	11,575	175.27	2,028,740	0.80%	0.44%	14.89%
ARIEL APPRECIATION FUND INVESTOR CLASS	11,451	160.82	1,841,629	0.80%	0.82%	9.74%
BLACKROCK CORE BOND II PORTFOLIO SC	10,402	15.54	161,686	0.80%	3.46%	4.65%
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS	190,445	1.16	220,489	0.80%	4.84%	4.50%
BLACKROCK LOW DURATION BOND PORTFOLIO SC	8,785	13.32	116,975	0.80%	3.77%	4.55%
BLACKROCK ISHARES S&P 500 INDEX FUND SC	19,087	110.27	2,104,717	0.80%	1.41%	25.01%
DAVIS VALUE PORTFOLIO	53,416	39.86	2,129,248	0.80%	1.30%	31.59%
FIDELITY VIP MID CAP PORTFOLIO SC2	18,074	123.93	2,240,038	0.80%	0.37%	13.89%
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	27,647	19.00	525,378	0.80%	2.81%	17.72%
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	3,919	48.27	189,195	0.80%	-%	9.78%
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	12,100	114.71	1,388,001	0.80%	-%	14.29%
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	17,642	30.90	545,226	0.80%	1.45%	19.31%
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	3,444	126.80	436,693	0.80%	-%	52.17%
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	5,753	47.04	270,628	0.80%	1.13%	15.72%
WILSHIRE VIT GLOBAL ALLOCATION FUND	512	29.51	15,098	0.80%	1.34%	15.50%

These ratios represent the annualized contract expenses of the active contract owners of the sub-accounts in the separate account, consisting primarily of mortality and expense charges, for the period indicated. The ratios include only those expenses that result in a direct reduction of unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying fund are excluded.

These amounts represent the dividends, excluding distributions of capital gains, received by the sub-accounts from the underlying Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the sub-accounts is affected by the timing of the declaration of dividends by the underlying fund in which the sub-accounts invests.

***

These amounts represent the total return for the period indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

6. FINANCIAL HIGHLIGHTS

For the Year Ended December 31, 2022

Account Division	Units	Accumulated Unit Value	Net Assets	Expense Ratio*	Investment Income Ratio**	Total Return***
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	9,335	102.80	959,658	0.80%	-%	(29.26)%
ARIEL FUND INVESTOR CLASS	12,109	152.55	1,847,140	0.80%	0.36%	(19.46)%
ARIEL APPRECIATION FUND INVESTOR CLASS	12,143	146.55	1,779,605	0.80%	0.58%	(13.13)%
BLACKROCK CORE BOND II PORTFOLIO SC	11,043	14.85	163,921	0.80%	1.96%	(14.66)%
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS	197,918	1.11	219,702	0.80%	1.65%	0.91%
BLACKROCK LOW DURATION BOND PORTFOLIO SC	9,001	12.74	114,626	0.80%	2.00%	(5.70)%
BLACKROCK ISHARES S&P 500 INDEX FUND SC	20,004	88.21	1,764,608	0.80%	1.32%	(18.94)%
DAVIS VALUE PORTFOLIO	60,715	30.29	1,839,269	0.80%	1.16%	(20.79)%
FIDELITY VIP MID CAP PORTFOLIO SC2	20,402	108.82	2,220,052	0.80%	0.26%	(15.64)%
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	27,100	16.14	437,291	0.80%	2.90%	(14.24)%
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	3,939	43.97	173,173	0.80%	-%	(33.06)%
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	14,376	100.37	1,443,022	0.80%	-%	(20.18)%
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	18,482	25.90	478,731	0.80%	1.06%	(16.51)%
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	3,505	83.33	292,067	0.80%	-%	(35.88)%
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	6,050	40.65	245,912	0.80%	0.59%	(24.57)%
WILSHIRE VIT GLOBAL ALLOCATION FUND	512	25.55	13,070	0.80%	3.38%	(18.47)%

***

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

6. FINANCIAL HIGHLIGHTS

For the Year Ended December 31, 2021

Account Division	Units	Accumulated Unit Value	Net Assets	Expense Ratio*	Investment Income Ratio**	Total Return***
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	9,668	145.32	1,404,838	0.80%	-%	27.64%
ARIEL FUND INVESTOR CLASS	13,770	189.42	2,608,197	0.80%	0.05%	29.33
ARIEL APPRECIATION FUND INVESTOR CLASS	13,618	168.70	2,297,141	0.80%	0.47%	24.87%
BLACKROCK CORE BOND II PORTFOLIO SC	12,277	17.40	213,626	0.80%	1.44%	-2.47%
BLACKROCK LIQUIDITY TEMPFUND ADMINISTRATION CLASS	206,537	1.10	227,506	0.80%	0.03%	-0.90%
BLACKROCK LOW DURATION BOND PORTFOLIO SC	12,423	13.51	167,817	0.80%	0.97%	-1.31%
BLACKROCK ISHARES S&P 500 INDEX FUND SC	21,040	108.82	2,289,561	0.80%	1.18%	27.38%
DAVIS VALUE PORTFOLIO	67,634	38.24	2,586,075	0.80%	0.60%	16.94%
FIDELITY VIP MID CAP PORTFOLIO SC2	20,824	129.00	2,686,193	0.80%	0.37%	24.31%
GOLDMAN SACHS VIT INTERNATIONAL EQUITY INSIGHTS FUND INSTITUTIONAL SHARES	33,970	18.82	639,214	0.80%	3.02%	11.30%
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO VC SHARES	5,598	65.69	367,769	0.80%	-%	5.61%
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	15,794	125.75	1,986,101	0.80%	-%	16.81%
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS IA SHARES	21,687	31.02	672,639	0.80%	0.99%	13.38%
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	6,396	53.89	344,679	0.80%	0.27%	14.25%
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	3,921	129.96	509,596	0.80%	-%	4.34%
WILSHIRE VIT GLOBAL ALLOCATION FUND	512	31.34	16,034	0.80%	0.93%	10.94%

***

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

6. FINANCIAL HIGHLIGHTS

For the Year Ended December 31, 2020

Account Division	Units	Accumulated Unit Value	Net Assets	Expense Ratio*	Investment Income Ratio**	Total Return***
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	10,537	113.85	1,199,675	0.80%	-%	34.07%
ARIEL FUND INVESTOR CLASS	14,623	146.46	2,141,739	0.80%	0.31%	9.13%
ARIEL APPRECIATION FUND INVESTOR CLASS	15,015	135.10	2,028,427	0.80%	0.54%	6.50%
BLACKROCK FUNDS II CORE BOND PORTFOLIO	18,278	17.84	325,985	0.80%	1.71%	7.21%
BLACKROCK LIQUIDITY FUNDS TEMPFUND	217,402	1.11	241,378	0.80%	0.49%	0.00%
BLACKROCK FUNDS II LOW DURATION BOND PORTFOLIO	12,912	13.69	176,711	0.80%	1.82%	2.39%
BLACKROCK FUNDS III S&P 500 STOCK FUND	23,190	85.43	1,981,008	0.80%	1.50%	17.27%
DAVIS VALUE PORTFOLIO	78,335	32.70	2,561,952	0.80%	0.65%	10.81%
FIDELITY VIP MID CAP PORTFOLIO SC2	22,160	103.77	2,299,428	0.80%	0.36%	16.92%
GOLDMAN SACHS VIT INTERNATIONAL EQUITY FUND INSTITUTIONAL SHARES	34,620	16.91	585,427	0.80%	1.45%	5.95%
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO	6,523	62.20	405,741	0.80%	-%	38.25%
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	17,050	107.65	1,835,480	0.80%	-%	23.45%
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS A	24,351	27.36	666,173	0.80%	1.33%	14.72%
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	7,205	47.17	339,904	0.80%	0.79%	12.31%
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	4,433	124.55	552,045	0.80%	-%	44.21%
WILSHIRE VIT GLOBAL ALLOCATION FUND	805	28.25	22,751	0.80%	1.76%	11.05%

***

HORACE MANN LIFE INSURANCE COMPANY GROUP ANNUITY

SEPARATE ACCOUNT

Notes to the Financial Statements (Continued)

For the Years Ended December 31, 2023 and December 31, 2022

6. FINANCIAL HIGHLIGHTS

For the Year Ended December 31, 2019

Account Division	Units	Accumulated Unit Value	Net Assets	Expense Ratio*	Investment Income Ratio**	Total Return***
ALLIANCEBERNSTEIN VPS LARGE CAP GROWTH PORTFOLIO CLASS B	11,034	84.92	937,012	0.80%	-%	33.31%
ARIEL FUND INVESTOR CLASS	15,331	134.21	2,057,625	0.80%	0.89%	23.68%
ARIEL APPRECIATION FUND INVESTOR CLASS	17,264	126.86	2,190,104	0.80%	0.99%	23.61%
BLACKROCK FUNDS II CORE BOND PORTFOLIO	19,005	16.64	316,305	0.80%	2.68%	8.69%
BLACKROCK LIQUIDITY FUNDS TEMPFUND	253,988	13.37	282,897	0.80%	2.16%	0.91%
BLACKROCK FUNDS II LOW DURATION BOND PORTFOLIO	14,000	13.37	187,141	0.80%	2.41%	3.72%
BLACKROCK FUNDS III S&P 500 STOCK FUND	24,599	72.85	1,791,955	0.80%	2.04%	30.16%
DAVIS VALUE PORTFOLIO	83,017	29.51	2,449,891	0.80%	1.63%	30.11%
FIDELITY VIP MID CAP PORTFOLIO SC2	25,116	88.75	2,228,950	0.80%	0.67%	22.19%
GOLDMAN SACHS VIT INTERNATIONAL EQUITY FUND INSTITUTIONAL SHARES	35,124	15.96	560,579	0.80%	2.38%	17.53%
LORD ABBETT SERIES FUND GROWTH OPPORTUNITIES PORTFOLIO	12,085	44.99	543,670	0.80%	-%	35.31%
NEUBERGER BERMAN GENESIS FUND ADVISOR CLASS	18,091	87.20	1,577,534	0.80%	-%	27.97%
PUTNAM VT GEORGE PUTNAM BALANCED FUND CLASS A	26,783	23.85	638,856	0.80%	1.62%	23.32%
TEMPLETON GLOBAL SMALLER COMPANIES FUND CLASS A	7,454	42.00	313,062	0.80%	0.94%	23.53%
T. ROWE PRICE SCIENCE & TECHNOLOGY FUND ADVISOR CLASS	4,453	86.37	384,556	0.80%	0.63%	44.17%
WILSHIRE VIT GLOBAL ALLOCATION FUND	829	25.44	21,099	0.80%	1.24%	17.45%

***