Horace Mann increases quarterly shareholder dividend

Rhea-AI Summary

Horace Mann Educators Corporation (HMN) increases quarterly cash dividend by 3.0% to $0.34 per share, indicating an annual dividend of $1.36 per share. The Board of Directors has raised the dividend for the 16th consecutive year, showing commitment to long-term shareholder value creation. The company anticipates full-year 2024 earnings per share to range between $3.00-$3.30, with the Property & Casualty segment expected to achieve full-year profitability.

Insights

Financial Analyst

The announcement by Horace Mann Educators Corporation of a 3.0% increase in the quarterly cash dividend to $0.34 per share signifies a positive signal to investors, indicating the company's financial health and stability. An increase in dividend payout is often interpreted as confidence by the management in the company's future earnings and cash flow. The stated 16th consecutive annual increase further reinforces this perception, suggesting a robust track record of financial performance and a reliable income stream for dividend investors.

From a financial analysis standpoint, the consistency in raising dividends can be seen as an attempt to enhance shareholder value. It is crucial to assess the dividend payout ratio in relation to the company's earnings to ensure that the dividends are sustainable. A payout ratio that is too high might indicate that the company is not reinvesting enough back into the business, which could be detrimental in the long term. However, a moderate increase, as seen with Horace Mann, is typically well-received.

Market Research Analyst

Looking at the broader market implications, Horace Mann's dividend increase and the expected return to profitability of its Property & Casualty segment could be a bellwether for the insurance industry, particularly in the education sector. The company's performance might be indicative of underlying trends, such as improved risk management or favorable market conditions. Investors might also interpret this news as a sign of sectoral health and may look for similar patterns in peer companies.

Moreover, the forecasted earnings per share (EPS) range of $3.00-$3.30 for the full year 2024 provides a forward-looking estimate that can be used to gauge the company's valuation and compare it with industry averages. A return to profitability in a key segment like Property & Casualty is a strong signal that could influence investor sentiment and stock valuation, potentially making Horace Mann a more attractive investment option within its sector.

SPRINGFIELD, Ill.--(BUSINESS WIRE)-- Horace Mann Educators Corporation (NYSE:HMN) today announced that its Board of Directors approved a 3.0% increase in the quarterly cash dividend to $0.34 per share. This represents an indicated annual dividend of $1.36 per share. The quarterly dividend is payable on March 29, 2024, to shareholders of record as of March 15, 2024.

“This is the 16th consecutive year the Board has increased the annual shareholder cash dividend, reflecting Horace Mann’s commitment to long-term shareholder value creation,” said Horace Mann President & CEO Marita Zuraitis.

The company also noted that it continues to expect full-year 2024 earnings per share between $3.00-$3.30 with the Property & Casualty segment expected to return to full-year profitability.

About Horace Mann

Horace Mann Educators Corporation is the largest financial services company focused on helping America’s educators and others who serve the community achieve lifelong financial success. The company offers individual and group insurance and financial solutions tailored to the needs of the educator community. Founded by Educators for Educators^® in 1945, the company is headquartered in Springfield, Illinois. For more information, visit horacemann.com.

Safe Harbor Statement

Certain statements included in this news release, including those regarding our earnings outlook, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Horace Mann and its subsidiaries. Horace Mann cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond Horace Mann’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements included in this document. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Information” sections included in Horace Mann’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC). The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Horace Mann does not undertake to update any particular forward-looking statement included in this document if we later become aware that such statement is not likely to be achieved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240301620082/en/

Heather J. Wietzel

Vice President, Investor Relations and Enterprise Communications

217.788.5144

investorrelations@horacemann.com

Source: Horace Mann Educators Corporation

FAQ

What is the new quarterly cash dividend per share announced by Horace Mann Educators Corporation (HMN)?

Horace Mann Educators Corporation (HMN) has approved a 3.0% increase in the quarterly cash dividend, making it $0.34 per share.

How much is the indicated annual dividend per share after the increase announced by Horace Mann Educators Corporation (HMN)?

Following the dividend increase, the indicated annual dividend per share for Horace Mann Educators Corporation (HMN) is $1.36.

For how many consecutive years has the Board of Directors of Horace Mann Educators Corporation (HMN) raised the annual shareholder cash dividend?

The Board of Directors of Horace Mann Educators Corporation (HMN) has increased the annual shareholder cash dividend for 16 consecutive years.

What is the earnings per share range expected by Horace Mann Educators Corporation (HMN) for the full year 2024?

Horace Mann Educators Corporation (HMN) anticipates full-year 2024 earnings per share to be between $3.00-$3.30.

Which segment of Horace Mann Educators Corporation (HMN) is expected to return to full-year profitability in 2024?

The Property & Casualty segment of Horace Mann Educators Corporation (HMN) is expected to achieve full-year profitability in 2024.