Horace Mann reports second-quarter 2023 results in line with pre-announcement
-
Net loss of
, or$13 million per share, for the quarter$0.31 -
Diversified business delivered core earnings* of
, or$1 million per share, despite continued elevated catastrophe losses$0.03 - Educator household acquisition momentum continues with sales growth in both Retail and Worksite Divisions
- Strong core earnings contributions from Supplemental & Group Benefits and Life & Retirement segments illustrate benefits of business diversification
-
Catastrophe losses of
, pretax, reduced second-quarter Property & Casualty segment earnings$41.5 million - Underlying P&C segment performance reflected rate actions being implemented to address inflationary pressure in auto and property businesses
-
Full-year 2023 core EPS expected to be between
, in line with pre-announcement$1.20 -$1.45 -
2024 core ROE still expected to be near
10% despite weather headwinds -
Committed to average annual core EPS growth of
10% in 2025 and beyond
-
2024 core ROE still expected to be near
($ in millions, except per share amounts) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
||
Total revenues |
|
$ |
356.4 |
|
|
$ |
345.9 |
|
|
3.0 |
% |
|
$ |
710.3 |
|
|
$ |
692.6 |
|
|
2.6 |
% |
Net income (loss) |
|
|
(12.8 |
) |
|
|
(4.2 |
) |
|
N.M. |
|
|
(6.2 |
) |
|
|
16.1 |
|
|
-138.5 |
% |
|
Net investment losses, after tax |
|
|
(13.7 |
) |
|
|
(12.2 |
) |
|
N.M. |
|
|
(16.8 |
) |
|
|
(24.4 |
) |
|
N.M. |
||
Core earnings* |
|
|
0.9 |
|
|
|
8.0 |
|
|
-88.8 |
% |
|
|
10.6 |
|
|
|
40.5 |
|
|
-73.8 |
% |
Adjusted core earnings* |
|
|
3.8 |
|
|
|
11.3 |
|
|
-66.4 |
% |
|
|
16.4 |
|
|
|
47.1 |
|
|
-65.2 |
% |
Per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
|
|
(0.31 |
) |
|
|
(0.10 |
) |
|
N.M. |
|
|
(0.15 |
) |
|
|
0.38 |
|
|
-139.5 |
% |
|
Net investment losses, after tax |
|
|
(0.34 |
) |
|
|
(0.29 |
) |
|
N.M. |
|
|
(0.41 |
) |
|
|
(0.58 |
) |
|
N.M. |
||
Core earnings per diluted share* |
|
|
0.03 |
|
|
|
0.19 |
|
|
-84.2 |
% |
|
|
0.26 |
|
|
|
0.96 |
|
|
-72.9 |
% |
Adjusted core earnings per diluted share* |
|
|
0.10 |
|
|
|
0.27 |
|
|
-63.0 |
% |
|
|
0.40 |
|
|
|
1.12 |
|
|
-64.3 |
% |
Book value per share |
|
|
|
|
|
|
|
|
26.96 |
|
|
|
29.06 |
|
|
-7.2 |
% |
|||||
Adjusted book value per share* |
|
|
|
|
|
|
|
|
35.55 |
|
|
|
36.80 |
|
|
-3.4 |
% |
|||||
Tangible book value per share* |
|
|
|
|
|
|
|
|
29.87 |
|
|
|
30.69 |
|
|
-2.7 |
% |
N.M. - Not meaningful. |
* These measures are not based on accounting principles generally accepted in |
“Continued outsized catastrophe losses are increasingly part of a larger national discussion in many forums affecting the insurance industry,” said Horace Mann President & CEO Marita Zuraitis. ”While we are contributing to this dialogue, we remain clearly focused on helping all educators protect what they have today and prepare for a successful tomorrow. This quarter we helped policyholders recover when severe weather, particularly in the Midwest and
“We are building on the revenue and earnings diversification efforts we’ve made over the past five years to drive market share growth,” Zuraitis continued. “This quarter, sales were up
“Despite higher catastrophe losses in the Property & Casualty segment, underlying results continue to reflect the rate and non-rate underwriting actions we have been implementing to address loss trends,” Zuraitis said. “In total, Property & Casualty net written premiums were up
“In Auto, our rate actions since the beginning of 2022 will generate a cumulative impact of as much as
“Our confidence in our long-term strategy to expand our share of the education market remains unchanged as we diversify our earnings profile,” Zuraitis said. “We also remain committed to achieving a sustainable double-digit core return on equity and
Segment outlook for 2023
2023 core EPS expected to be between
-
Property & Casualty segment core earnings guidance updated to a loss between
and$27 million largely due to weather losses. We now assume a full-year catastrophe loss contribution of$32 million to$95 million , or about 15.5 points to the combined ratio. The longer-term combined ratio target for the segment remains 95$100 million -96% . -
Life & Retirement segment core earnings guidance updated to
to$63 million to reflect the lower-than-anticipated fixed annuity spread in the first-half. The longer-term targeted range for the spread remains 220 to 230 basis points.$65 million -
Supplemental & Group Benefits segment core earnings guidance updated to
to$47 million to reflect strong first-half performance. The longer-term target for the blended segment benefit ratio remains$50 million 43% .
Full-year net investment income expected to be between
Reporting Segment Results
Horace Mann reports financial results in three reporting segments: (1) Property & Casualty, (2) Life & Retirement, and (3) Supplemental & Group Benefits. The retail business, consisting of the Property & Casualty and Life & Retirement segments, provides insurance and financial services to individual educators through agency and direct channels. The Supplemental & Group Benefits segment provides worksite direct and employer-sponsored benefits through school district employers. These worksite offerings help school districts attract and retain staff.
Horace Mann adopted the Financial Accounting Standards Board’s Accounting Standard Update 2018-12 Financial Services - Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts as of January 1, 2023, with a January 1, 2021 transition date. The company’s 2022 results have been recast to reflect the ASU and are reflected in this release on that basis.
Property & Casualty segment results reflected outsized catastrophe losses
(All comparisons vs. same period in 2022, unless noted otherwise)
The Property & Casualty segment primarily markets private passenger auto insurance and residential home insurance. Horace Mann offers standard auto coverages, including liability, collision and comprehensive. Property coverage includes both homeowners and renters policies. For both auto and property coverage, Horace Mann offers educators a discounted rate and the Educator Advantage® package of features. The Property & Casualty segment represented
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Property & Casualty net premiums written* |
|
$ |
170.9 |
|
|
$ |
158.0 |
|
|
8.2 |
% |
|
$ |
320.0 |
|
|
$ |
297.6 |
|
|
7.5 |
% |
Property & Casualty net income (loss) / core earnings (loss)* |
|
|
(21.4 |
) |
|
|
(25.4 |
) |
|
N.M. |
|
|
(33.0 |
) |
|
|
(16.9 |
) |
|
N.M. |
||
Property & Casualty combined ratio |
|
|
124.0 |
% |
|
|
126.9 |
% |
|
-2.9 pts |
|
|
118.4 |
% |
|
|
112.6 |
% |
|
5.8 pts |
||
Property & Casualty underlying loss ratio* |
|
|
70.3 |
% |
|
|
65.7 |
% |
|
4.6 pts |
|
|
70.0 |
% |
|
|
66.4 |
% |
|
3.6 pts |
||
Property & Casualty expense ratio |
|
|
27.4 |
% |
|
|
26.7 |
% |
|
0.7 pts |
|
|
27.8 |
% |
|
|
26.5 |
% |
|
1.3 pts |
||
Property & Casualty catastrophe losses |
|
|
26.3 |
% |
|
|
30.5 |
% |
|
-4.2 pts |
|
|
20.6 |
% |
|
|
17.7 |
% |
|
2.9 pts |
||
Property & Casualty underlying combined ratio* |
|
|
97.7 |
% |
|
|
92.4 |
% |
|
5.3 pts |
|
|
97.8 |
% |
|
|
92.9 |
% |
|
4.9 pts |
||
Auto combined ratio |
|
|
114.6 |
% |
|
|
119.3 |
% |
|
-4.7 pts |
|
|
112.8 |
% |
|
|
110.6 |
% |
|
2.2 pts |
||
Auto underlying loss ratio* |
|
|
81.6 |
% |
|
|
76.9 |
% |
|
4.7 pts |
|
|
81.2 |
% |
|
|
76.2 |
% |
|
5.0 pts |
||
Property combined ratio |
|
|
141.0 |
% |
|
|
141.0 |
% |
|
— pts |
|
|
128.5 |
% |
|
|
116.6 |
% |
|
11.9 pts |
||
Property underlying loss ratio* |
|
|
49.8 |
% |
|
|
44.7 |
% |
|
5.1 pts |
|
|
50.0 |
% |
|
|
48.5 |
% |
|
1.5 pts |
||
The Property & Casualty segment core loss for the second quarter was in line with the company’s preliminary announcement, reflecting the impact of outsized weather activity across the country, which was also a primary factor in continued elevated auto loss frequency. Property & Casualty net premiums written were up
The second-quarter combined ratio improved 2.9 points over last year, reflecting the slightly lower level of catastrophe losses this year as well as no change in prior-accident year reserves compared with strengthening in last year’s second quarter. Catastrophe losses for the quarter were
The year-over-year increase in average written premiums for auto policies also improved again in the second quarter to
The year-over-year increase in average written premiums for property policies was
Life & Retirement segment net income of
(All comparisons vs. same period in 2022, unless noted otherwise)
The Life & Retirement segment markets 403(b) tax-qualified fixed, fixed indexed and variable annuities; the Horace Mann Retirement Advantage® open architecture platform for 403(b)(7) and other defined contribution plans; and other retirement products to educators as well as traditional term and whole life insurance products. Horace Mann is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net premiums written on a statutory accounting basis. The Life & Retirement segment represented
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||
Life & Retirement net income / core earnings* |
|
$ |
17.4 |
|
$ |
23.8 |
|
-26.9 |
% |
|
$ |
31.4 |
|
$ |
39.4 |
|
-20.3 |
% |
Life & Retirement adjusted core earnings* |
|
|
17.5 |
|
|
24.0 |
|
-27.1 |
% |
|
|
31.5 |
|
|
39.8 |
|
-20.9 |
% |
Life annualized sales* |
|
|
2.2 |
|
|
2.2 |
|
— |
% |
|
|
4.4 |
|
|
4.0 |
|
10.0 |
% |
Life mortality costs |
|
|
17.6 |
|
|
14.7 |
|
19.7 |
% |
|
|
37.1 |
|
|
36.1 |
|
2.8 |
% |
Net annuity contract deposits* |
|
|
112.8 |
|
|
104.2 |
|
8.3 |
% |
|
|
222.0 |
|
|
216.2 |
|
2.7 |
% |
Annuity assets under management(1) |
|
|
|
|
|
|
|
|
5,033.9 |
|
|
4,841.9 |
|
4.0 |
% |
|||
Total assets under administration(2) |
|
|
|
|
|
|
|
|
8,587.4 |
|
|
8,210.7 |
|
4.6 |
% |
(1) |
Amount reported as of June 30, 2023 excludes |
(2) |
Includes Annuity AUM, Brokerage and Advisory AUA, and Recordkeeping AUA. |
Life & Retirement segment core earnings were
For the segment, total benefit expenses declined as favorable market risk benefit adjustments for Retirement more than offset a marginal increase in Life mortality experience.
For the Retirement business, net annuity contract deposits were up
Horace Mann currently has
Supplemental & Group Benefits segment net income of
(All comparisons vs. same period in 2022, unless noted otherwise)
The Supplemental & Group Benefits segment markets employer-sponsored group solutions for districts and other public employers, as well as worksite direct products typically distributed through the employer channel. The worksite business provides group term life, disability and specialty health insurance along with supplemental products including cancer, heart, hospital, supplemental disability and accident coverages. The Supplemental & Group Benefits segment represented
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Supplemental & Group Benefits net income / core earnings* |
|
$ |
11.8 |
|
|
$ |
15.0 |
|
|
-21.3 |
% |
|
$ |
25.8 |
|
|
$ |
28.2 |
|
|
-8.5 |
% |
Supplemental & Group Benefits adjusted core earnings* |
|
|
14.7 |
|
|
|
18.2 |
|
|
-19.2 |
% |
|
|
31.6 |
|
|
|
34.4 |
|
|
-8.1 |
% |
Pretax profit margin(1) |
|
|
20.5 |
% |
|
|
25.6 |
% |
|
-5.1 pts |
|
|
22.7 |
% |
|
|
23.4 |
% |
|
-0.7 pts |
||
Net premiums earned |
|
$ |
65.9 |
|
|
$ |
69.2 |
|
|
-4.8 |
% |
|
$ |
131.7 |
|
|
$ |
139.0 |
|
|
-5.3 |
% |
Worksite direct products sales* |
|
|
3.5 |
|
|
|
2.2 |
|
|
59.1 |
% |
|
|
7.2 |
|
|
|
3.6 |
|
|
100.0 |
% |
Employer-sponsored products sales* |
|
|
0.9 |
|
|
|
1.3 |
|
|
-30.8 |
% |
|
|
5.4 |
|
|
|
3.6 |
|
|
50.0 |
% |
Worksite direct products benefit ratio |
|
|
30.1 |
% |
|
|
27.2 |
% |
|
2.9 pts |
|
|
26.1 |
% |
|
|
24.7 |
% |
|
1.4 pts |
||
Employer-sponsored products benefit ratio |
|
|
50.0 |
% |
|
|
42.6 |
% |
|
7.4 pts |
|
|
46.3 |
% |
|
|
54.3 |
% |
|
-8.0 pts |
(1) |
Measured to total revenues. |
Supplemental & Group Benefits segment core earnings were
The non-cash impact of amortization of intangible assets under purchase accounting reduced second quarter 2023 core earnings by
Total sales for the segment were
Consolidated Results
Horace Mann’s investment strategy is primarily focused on generating income to support product liabilities, and balances principal protection and risk. Total net investment income includes net investment income on the investment portfolio managed by Horace Mann, as well as accreted investment income on the deposit asset on reinsurance related to the company’s reinsurance of policy liabilities related to legacy individual annuities written in 2002 or earlier. The Corporate & Other segment reduced total revenues by
Net investment income of
(All comparisons vs. same period in 2022, unless noted otherwise)
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Pretax net investment income - investment portfolio |
|
$ |
82.5 |
|
|
$ |
79.4 |
|
|
3.9 |
% |
|
$ |
157.2 |
|
|
$ |
152.4 |
|
|
3.1 |
% |
Pretax investment income - deposit asset on reinsurance |
|
|
26.0 |
|
|
|
25.8 |
|
|
0.8 |
% |
|
|
51.7 |
|
|
|
50.7 |
|
|
2.0 |
% |
Total pretax net investment income |
|
|
108.5 |
|
|
|
105.2 |
|
|
3.1 |
% |
|
|
208.9 |
|
|
|
203.1 |
|
|
2.9 |
% |
Pretax net investment losses |
|
|
(17.4 |
) |
|
|
(15.5 |
) |
|
N.M |
|
|
(21.3 |
) |
|
|
(31.0 |
) |
|
N.M. |
||
Pretax net unrealized investment gains (losses) on fixed maturity securities |
|
|
|
|
|
|
|
|
(500.8 |
) |
|
|
(358.5 |
) |
|
N.M. |
||||||
Investment yield, excluding limited partnership interests, pretax - annualized |
|
|
4.52 |
% |
|
|
4.35 |
% |
|
0.17 pts |
|
|
4.62 |
% |
|
|
4.35 |
% |
|
0.27 pts |
N.M. - Not meaningful. |
Total net investment income rose
The fixed maturity securities portfolio was in a net unrealized investment loss position of
Adjusted book value per share* of
At June 30, 2023, shareholders’ equity was
At June 30, 2023, total debt was
Quarterly webcast
Horace Mann’s senior management will discuss the company’s second-quarter financial results with investors on August 2, 2023 at 12:30 p.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and archived later in the day for replay.
About Horace Mann
Horace Mann Educators Corporation (NYSE: HMN) 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 educational community. Founded by Educators for Educators® in 1945, Horace Mann is headquartered in
Safe Harbor Statement and Non-GAAP Measures
Certain statements included in this news release, including those regarding our earnings outlook, expected catastrophe losses, our investment strategies, our plans to implement additional rate actions, our plans relating to share repurchases and dividends, our efforts to enhance customer experience and expand our products and solutions to more educators, our strategies to create sustainable long-term growth and double-digit ROEs, our strategy to achieve a larger share of the education market, and other business strategies, constitute forward-looking statements within the meaning of the
Information contained in this news release include measures which are based on methodologies other than accounting principles generally accepted in
HORACE MANN EDUCATORS CORPORATION
|
|||||||||||||||||||||
($ in millions, except per share data) |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
||
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(12.8 |
) |
|
$ |
(4.2 |
) |
|
N.M. |
|
$ |
(6.2 |
) |
|
$ |
16.1 |
|
|
-138.5 |
% |
|
Net investment losses, after tax |
|
(13.7 |
) |
|
|
(12.2 |
) |
|
N.M. |
|
|
(16.8 |
) |
|
|
(24.4 |
) |
|
N.M. |
||
Core earnings* |
|
0.9 |
|
|
|
8.0 |
|
|
-88.8 |
% |
|
|
10.6 |
|
|
|
40.5 |
|
|
-73.8 |
% |
Adjusted core earnings* |
|
3.8 |
|
|
|
11.3 |
|
|
-66.4 |
% |
|
|
16.4 |
|
|
|
47.1 |
|
|
-65.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per diluted share:(1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
(0.31 |
) |
|
$ |
(0.10 |
) |
|
N.M. |
|
$ |
(0.15 |
) |
|
$ |
0.38 |
|
|
-139.5 |
% |
|
Net investment losses, after tax |
|
(0.34 |
) |
|
|
(0.29 |
) |
|
N.M. |
|
|
(0.41 |
) |
|
|
(0.58 |
) |
|
N.M. |
||
Core earnings* |
|
0.03 |
|
|
|
0.19 |
|
|
-84.2 |
% |
|
|
0.26 |
|
|
|
0.96 |
|
|
-72.9 |
% |
Adjusted core earnings (loss)* |
|
0.10 |
|
|
|
0.27 |
|
|
-63.0 |
% |
|
|
0.40 |
|
|
|
1.12 |
|
|
-64.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of shares and equivalent shares (in millions) - Diluted |
|
41.4 |
|
|
|
41.8 |
|
|
-1.0 |
% |
|
|
41.4 |
|
|
|
42.0 |
|
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income return on equity - LTM(2) |
|
(0.2 |
)% |
|
|
5.9 |
% |
|
|
|
|
(0.2 |
)% |
|
|
5.9 |
% |
|
|
||
Net income return on equity - annualized |
|
(4.6 |
)% |
|
|
(1.3 |
)% |
|
|
|
|
(1.1 |
)% |
|
|
2.4 |
% |
|
|
||
Core return on equity - LTM*(3) |
|
2.6 |
% |
|
|
7.4 |
% |
|
|
|
|
2.6 |
% |
|
|
7.4 |
% |
|
|
||
Core return on equity - annualized* |
|
0.2 |
% |
|
|
2.1 |
% |
|
|
|
|
1.4 |
% |
|
|
5.3 |
% |
|
|
||
Adjusted core return on equity - LTM*(4) |
|
3.4 |
% |
|
|
8.2 |
% |
|
|
|
|
3.4 |
% |
|
|
8.2 |
% |
|
|
||
Adjusted core return on equity - annualized* |
|
1.0 |
% |
|
|
3.0 |
% |
|
|
|
|
2.2 |
% |
|
|
6.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Position |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per share:(5) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Book value |
|
|
|
|
|
|
$ |
26.96 |
|
|
$ |
29.06 |
|
|
-7.2 |
% |
|||||
Effect of net unrealized investment gains (losses) on fixed maturity securities |
|
|
|
|
|
|
$ |
(9.64 |
) |
|
$ |
(6.84 |
) |
|
N.M. |
||||||
Per share impact of net reserve remeasurements attributable to discount rates* |
|
|
|
|
|
|
$ |
1.05 |
|
|
$ |
(0.90 |
) |
|
N.M. |
||||||
Adjusted book value* |
|
|
|
|
|
|
$ |
35.55 |
|
|
$ |
36.80 |
|
|
-3.4 |
% |
|||||
Dividends paid |
$ |
0.33 |
|
|
$ |
0.32 |
|
|
3.1 |
% |
|
$ |
0.66 |
|
|
$ |
0.64 |
|
|
3.1 |
% |
Ending number of shares outstanding (in millions)(5) |
|
|
|
|
|
|
|
40.9 |
|
|
|
41.2 |
|
|
-0.7 |
% |
|||||
Total assets |
|
|
|
|
|
|
$ |
13,671.9 |
|
|
$ |
13,661.3 |
|
|
0.1 |
% |
|||||
Short-term debt |
|
|
|
|
|
|
|
249.0 |
|
|
|
249.0 |
|
|
— |
% |
|||||
Long-term debt |
|
|
|
|
|
|
|
249.1 |
|
|
|
248.8 |
|
|
0.1 |
% |
|||||
Total shareholders’ equity |
|
|
|
|
|
|
|
1,101.9 |
|
|
|
1,197.2 |
|
|
-8.0 |
% |
N.M. - Not meaningful. | |
(1) |
Calculated using basic shares when in a net loss or core loss position. |
(2) |
Based on last twelve months net income and average quarter-end shareholders’ equity. |
(3) |
Based on last twelve months core earnings 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 applicable deferred taxes. |
(4) |
Based on last twelve months adjusted core earnings 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 applicable deferred taxes. |
(5) |
Ending shares outstanding were 40,867,358 at June 30, 2023 and 41,189,337 at June 30, 2022. |
HORACE MANN EDUCATORS CORPORATION
|
||||||||||||||||||||||
($ in millions, except per share data) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums and contract charges earned |
|
$ |
260.7 |
|
|
$ |
255.4 |
|
|
2.1 |
% |
|
$ |
516.6 |
|
|
$ |
511.2 |
|
|
1.1 |
% |
Net investment income |
|
|
108.5 |
|
|
|
105.2 |
|
|
3.1 |
% |
|
|
208.9 |
|
|
|
203.1 |
|
|
2.9 |
% |
Net investment losses |
|
|
(17.4 |
) |
|
|
(15.5 |
) |
|
N.M. |
|
|
(21.3 |
) |
|
|
(31.0 |
) |
|
N.M. |
||
Other income |
|
|
4.6 |
|
|
|
0.8 |
|
|
N.M. |
|
|
6.1 |
|
|
|
9.3 |
|
|
-34.4 |
% |
|
Total revenues |
|
|
356.4 |
|
|
|
345.9 |
|
|
3.0 |
% |
|
|
710.3 |
|
|
|
692.6 |
|
|
2.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits, claims and settlement expenses |
|
|
205.2 |
|
|
|
203.4 |
|
|
0.9 |
% |
|
|
388.4 |
|
|
|
378.6 |
|
|
2.6 |
% |
Interest credited |
|
|
50.7 |
|
|
|
41.4 |
|
|
N.M. |
|
|
99.4 |
|
|
|
81.1 |
|
|
22.6 |
% |
|
Operating expenses |
|
|
80.1 |
|
|
|
77.1 |
|
|
3.9 |
% |
|
|
159.9 |
|
|
|
153.8 |
|
|
4.0 |
% |
DAC amortization expense |
|
|
25.4 |
|
|
|
21.5 |
|
|
18.1 |
% |
|
|
49.1 |
|
|
|
43.5 |
|
|
12.9 |
% |
Intangible asset amortization expense |
|
|
3.7 |
|
|
|
4.2 |
|
|
-11.9 |
% |
|
|
7.4 |
|
|
|
8.4 |
|
|
-11.9 |
% |
Interest expense |
|
|
6.9 |
|
|
|
4.3 |
|
|
60.5 |
% |
|
|
13.6 |
|
|
|
8.2 |
|
|
65.9 |
% |
Total benefits, losses and expenses |
|
|
372.0 |
|
|
|
351.9 |
|
|
5.7 |
% |
|
|
717.8 |
|
|
|
673.6 |
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes |
|
|
(15.6 |
) |
|
|
(6.0 |
) |
|
N.M. |
|
|
(7.5 |
) |
|
|
19.0 |
|
|
-139.5 |
% |
|
Income tax expense (benefit) |
|
|
(2.8 |
) |
|
|
(1.8 |
) |
|
N.M. |
|
|
(1.3 |
) |
|
|
2.9 |
|
|
-144.8 |
% |
|
Net income (loss) |
|
$ |
(12.8 |
) |
|
$ |
(4.2 |
) |
|
N.M. |
|
$ |
(6.2 |
) |
|
$ |
16.1 |
|
|
-138.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Premiums Written and Contract Deposits* |
|
|
|
|
|
|
|
|
||||||||||||||
Property & Casualty |
|
$ |
170.9 |
|
|
$ |
158.0 |
|
|
8.2 |
% |
|
$ |
320.0 |
|
|
$ |
297.6 |
|
|
7.5 |
% |
Life & Retirement |
|
|
141.9 |
|
|
|
133.6 |
|
|
6.2 |
% |
|
|
278.0 |
|
|
|
270.0 |
|
|
3.0 |
% |
Supplemental & Group Benefits |
|
|
65.2 |
|
|
|
68.3 |
|
|
-4.5 |
% |
|
|
132.4 |
|
|
|
138.5 |
|
|
-4.4 |
% |
Total |
|
$ |
378.0 |
|
|
$ |
359.9 |
|
|
5.0 |
% |
|
$ |
730.4 |
|
|
$ |
706.1 |
|
|
3.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Property & Casualty |
|
$ |
(21.4 |
) |
|
$ |
(25.4 |
) |
|
N.M. |
|
$ |
(33.0 |
) |
|
$ |
(16.9 |
) |
|
N.M. |
||
Life & Retirement |
|
|
17.4 |
|
|
|
23.8 |
|
|
-26.9 |
% |
|
|
31.4 |
|
|
|
39.4 |
|
|
-20.3 |
% |
Supplemental & Group Benefits |
|
|
11.8 |
|
|
|
15.0 |
|
|
-21.3 |
% |
|
|
25.8 |
|
|
|
28.2 |
|
|
-8.5 |
% |
Corporate & Other(1) |
|
|
(20.6 |
) |
|
|
(17.6 |
) |
|
-17.0 |
% |
|
|
(30.4 |
) |
|
|
(34.6 |
) |
|
12.1 |
% |
Consolidated net income (loss) |
|
$ |
(12.8 |
) |
|
$ |
(4.2 |
) |
|
N.M. |
|
$ |
(6.2 |
) |
|
$ |
16.1 |
|
|
-138.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Before tax |
|
$ |
(17.4 |
) |
|
$ |
(15.5 |
) |
|
N.M. |
|
$ |
(21.3 |
) |
|
$ |
(31.0 |
) |
|
N.M. |
||
After tax |
|
|
(13.7 |
) |
|
|
(12.2 |
) |
|
N.M. |
|
|
(16.8 |
) |
|
|
(24.4 |
) |
|
N.M. |
||
Per share, diluted |
|
$ |
(0.34 |
) |
|
$ |
(0.29 |
) |
|
N.M. |
|
$ |
(0.41 |
) |
|
$ |
(0.58 |
) |
|
N.M. |
N.M. - Not meaningful. | |
(1) |
Corporate & Other includes interest expense on debt and the impact of net 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 12. |
HORACE MANN EDUCATORS CORPORATION
|
||||||||||||||||||||||
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
||
Property & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written* |
|
$ |
170.9 |
|
|
$ |
158.0 |
|
|
8.2 |
% |
|
$ |
320.0 |
|
|
$ |
297.6 |
|
|
7.5 |
% |
Net premiums earned |
|
|
157.4 |
|
|
|
149.9 |
|
|
5.0 |
% |
|
|
309.8 |
|
|
|
300.1 |
|
|
3.2 |
% |
Net investment income |
|
|
10.6 |
|
|
|
7.7 |
|
|
37.7 |
% |
|
|
14.6 |
|
|
|
14.9 |
|
|
-2.0 |
% |
Other income |
|
|
0.8 |
|
|
|
1.2 |
|
|
-33.3 |
% |
|
|
1.5 |
|
|
|
2.0 |
|
|
-25.0 |
% |
Losses and loss adjustment expenses (LAE) |
|
|
152.0 |
|
|
|
150.2 |
|
|
1.2 |
% |
|
|
280.8 |
|
|
|
258.5 |
|
|
8.6 |
% |
Operating expenses (includes amortization expense) |
|
|
43.1 |
|
|
|
40.1 |
|
|
7.5 |
% |
|
|
86.0 |
|
|
|
79.5 |
|
|
8.2 |
% |
Income (loss) before income taxes |
|
|
(26.3 |
) |
|
|
(31.5 |
) |
|
-16.5 |
% |
|
|
(40.9 |
) |
|
|
(21.0 |
) |
|
94.8 |
% |
Net income (loss) / core earnings (loss)* |
|
|
(21.4 |
) |
|
|
(25.4 |
) |
|
-15.7 |
% |
|
|
(33.0 |
) |
|
|
(16.9 |
) |
|
95.3 |
% |
Net investment income, after tax |
|
|
8.7 |
|
|
|
6.5 |
|
|
33.8 |
% |
|
|
12.2 |
|
|
|
12.6 |
|
|
-3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Catastrophe losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
After tax |
|
|
32.8 |
|
|
|
36.2 |
|
|
-9.4 |
% |
|
|
50.5 |
|
|
|
41.9 |
|
|
20.5 |
% |
Before tax |
|
|
41.5 |
|
|
|
45.7 |
|
|
-9.2 |
% |
|
|
63.9 |
|
|
|
53.0 |
|
|
20.6 |
% |
Prior years’ reserve development, before tax(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto |
|
|
— |
|
|
|
12.0 |
|
|
N.M. |
|
|
— |
|
|
|
12.0 |
|
|
N.M. |
||
Property and other |
|
|
— |
|
|
|
(6.0 |
) |
|
N.M. |
|
|
— |
|
|
|
(6.0 |
) |
|
N.M. |
||
Total |
|
|
— |
|
|
|
6.0 |
|
|
N.M. |
|
|
— |
|
|
|
6.0 |
|
|
N.M. |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss and loss adjustment expense ratio |
|
|
96.6 |
% |
|
|
100.2 |
% |
|
-3.6 pts |
|
|
90.6 |
% |
|
|
86.1 |
% |
|
4.5 pts |
||
Expense ratio |
|
|
27.4 |
% |
|
|
26.7 |
% |
|
0.7 pts |
|
|
27.8 |
% |
|
|
26.5 |
% |
|
1.3 pts |
||
Combined ratio |
|
|
124.0 |
% |
|
|
126.9 |
% |
|
-2.9 pts |
|
|
118.4 |
% |
|
|
112.6 |
% |
|
5.8 pts |
||
Effect on the combined ratio of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Catastrophe losses |
|
|
26.3 |
% |
|
|
30.5 |
% |
|
-4.2 pts |
|
|
20.6 |
% |
|
|
17.7 |
% |
|
2.9 pts |
||
Prior years’ reserve development(1) |
|
|
— |
% |
|
|
4.0 |
% |
|
-4.0 pts |
|
|
— |
% |
|
|
2.0 |
% |
|
-2.0 pts |
||
Combined ratio excluding the effects of catastrophe losses and prior years’ reserve development (underlying combined ratio)* |
|
|
97.7 |
% |
|
|
92.4 |
% |
|
5.3 pts |
|
|
97.8 |
% |
|
|
92.9 |
% |
|
4.9 pts |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risks in force (in thousands) |
|
|
|
|
|
|
|
|
531 |
|
|
|
545 |
|
|
-2.6 |
% |
|||||
Auto(2) |
|
|
|
|
|
|
|
|
362 |
|
|
|
371 |
|
|
-2.4 |
% |
|||||
Property |
|
|
|
|
|
|
|
|
169 |
|
|
|
174 |
|
|
-2.9 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Household Retention - LTM |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto(3) |
|
|
|
|
|
|
|
|
86.8 |
% |
|
|
86.8 |
% |
|
— pts |
||||||
Property(3) |
|
|
|
|
|
|
|
|
90.1 |
% |
|
|
89.5 |
% |
|
0.6 pts |
N.M. - Not meaningful. | |
(1) |
(Favorable) unfavorable. |
(2) |
Includes assumed risks in force of 4. |
(3) |
Retention is based on retained households. History has been restated to reflect this change. |
HORACE MANN EDUCATORS CORPORATION
|
||||||||||||||||||||
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||
|
|
2023 |
|
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
|||||||
Life & Retirement |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net premiums written and contract deposits* |
|
$ |
141.9 |
|
$ |
133.6 |
|
6.2 |
% |
|
$ |
278.0 |
|
|
$ |
270.0 |
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net premiums and contract charges earned |
|
|
37.4 |
|
|
36.3 |
|
3.0 |
% |
|
|
75.1 |
|
|
|
72.1 |
|
|
4.2 |
% |
Net investment income |
|
|
89.3 |
|
|
88.4 |
|
1.0 |
% |
|
|
177.2 |
|
|
|
172.6 |
|
|
2.7 |
% |
Other income |
|
|
4.5 |
|
|
4.4 |
|
2.3 |
% |
|
|
8.4 |
|
|
|
9.3 |
|
|
-9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Death benefits / mortality cost(1) |
|
|
17.6 |
|
|
14.7 |
|
19.7 |
% |
|
|
37.1 |
|
|
|
36.1 |
|
|
2.8 |
% |
Interest credited |
|
|
49.8 |
|
|
41.2 |
|
20.9 |
% |
|
|
97.7 |
|
|
|
80.8 |
|
|
20.9 |
% |
Change in reserves |
|
|
9.6 |
|
|
13.9 |
|
-30.9 |
% |
|
|
23.4 |
|
|
|
26.9 |
|
|
-13.0 |
% |
Operating expenses |
|
|
24.8 |
|
|
24.8 |
|
— |
% |
|
|
49.0 |
|
|
|
50.5 |
|
|
-3.0 |
% |
DAC amortization expense |
|
|
7.6 |
|
|
5.4 |
|
40.7 |
% |
|
|
14.4 |
|
|
|
11.1 |
|
|
29.7 |
% |
Intangible asset amortization expense |
|
|
— |
|
|
0.3 |
|
-100.0 |
% |
|
|
0.1 |
|
|
|
0.6 |
|
|
-83.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
21.8 |
|
|
28.8 |
|
-24.3 |
% |
|
|
39.0 |
|
|
|
48.0 |
|
|
-18.8 |
% |
Income tax expense |
|
|
4.4 |
|
|
5.0 |
|
-12.0 |
% |
|
|
7.6 |
|
|
|
8.6 |
|
|
-11.6 |
% |
Net income / core earnings* |
|
|
17.4 |
|
|
23.8 |
|
-26.9 |
% |
|
|
31.4 |
|
|
|
39.4 |
|
|
-20.3 |
% |
Adjusted core earnings* |
|
|
17.5 |
|
|
24.0 |
|
-27.1 |
% |
|
|
31.5 |
|
|
|
39.8 |
|
|
-20.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Life policies in force (in thousands) |
|
|
|
|
|
|
|
|
162 |
|
|
|
162 |
|
|
— |
% |
|||
Life insurance in force |
|
|
|
|
|
|
|
$ |
20,265 |
|
|
$ |
19,714 |
|
|
2.8 |
% |
|||
Lapse ratio - 12 months(1) |
|
|
|
|
|
|
|
|
4.1 |
% |
|
|
3.8 |
% |
|
0.3 pts |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Annuity contracts in force (in thousands) |
|
|
|
|
|
|
|
|
225 |
|
|
|
228 |
|
|
-1.3 |
% |
|||
Horace Mann Retirement Advantage® contracts in force (in thousands) |
|
|
|
|
|
|
|
|
18 |
|
|
|
16 |
|
|
12.5 |
% |
|||
Total Persistency - LTM |
|
|
|
|
|
|
|
|
92.2 |
% |
|
|
94.1 |
% |
|
-1.9 pts |
N.M. - Not meaningful. | |
(1) |
Ordinary life insurance. |
HORACE MANN EDUCATORS CORPORATION
|
||||||||||||||||||||||
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Supplemental & Group Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums and contract charges earned |
|
$ |
65.9 |
|
|
$ |
69.2 |
|
|
-4.8 |
% |
|
$ |
131.7 |
|
|
$ |
139.0 |
|
|
-5.3 |
% |
Net investment income |
|
|
9.1 |
|
|
|
9.6 |
|
|
-5.2 |
% |
|
|
18.2 |
|
|
|
16.7 |
|
|
9.0 |
% |
Other income |
|
|
(1.4 |
) |
|
|
(4.8 |
) |
|
-70.8 |
% |
|
|
(5.1 |
) |
|
|
(3.2 |
) |
|
59.4 |
% |
Benefits, settlement expenses and change in reserves |
|
|
26.0 |
|
|
|
24.6 |
|
|
5.7 |
% |
|
|
47.1 |
|
|
|
57.1 |
|
|
-17.5 |
% |
Interest credited |
|
|
0.9 |
|
|
|
0.2 |
|
|
N.M. |
|
|
1.7 |
|
|
|
0.3 |
|
|
N.M. |
||
Operating expenses (includes DAC amortization expense) |
|
|
28.0 |
|
|
|
26.3 |
|
|
6.5 |
% |
|
|
55.9 |
|
|
|
51.6 |
|
|
8.3 |
% |
Intangible asset amortization expense |
|
|
3.7 |
|
|
|
3.9 |
|
|
-5.1 |
% |
|
|
7.3 |
|
|
|
7.8 |
|
|
-6.4 |
% |
Income before income taxes |
|
|
15.0 |
|
|
|
19.0 |
|
|
-21.1 |
% |
|
|
32.8 |
|
|
|
35.7 |
|
|
-8.1 |
% |
Net income / core earnings* |
|
|
11.8 |
|
|
|
15.0 |
|
|
-21.3 |
% |
|
|
25.8 |
|
|
|
28.2 |
|
|
-8.5 |
% |
Adjusted core earnings* |
|
|
14.7 |
|
|
|
18.2 |
|
|
-19.2 |
% |
|
|
31.6 |
|
|
|
34.4 |
|
|
-8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefit ratio(1) |
|
|
40.9 |
% |
|
|
35.8 |
% |
|
5.1 pts |
|
|
37.1 |
% |
|
|
41.3 |
% |
|
-4.2 pts |
||
Operating expense ratio(2) |
|
|
38.0 |
% |
|
|
35.6 |
% |
|
2.4 pts |
|
|
38.6 |
% |
|
|
33.8 |
% |
|
4.8 pts |
||
Pretax profit margin(3) |
|
|
20.5 |
% |
|
|
25.6 |
% |
|
-5.1 pts |
|
|
22.7 |
% |
|
|
23.4 |
% |
|
-0.7 pts |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Worksite Direct products benefit ratio |
|
|
30.1 |
% |
|
|
27.2 |
% |
|
2.9 pts |
|
|
26.1 |
% |
|
|
24.7 |
% |
|
1.4 pts |
||
Worksite Direct premium persistency (rolling 12 months) |
|
|
90.5 |
% |
|
|
92.0 |
% |
|
-1.5 pts |
|
|
90.5 |
% |
|
|
92.0 |
% |
|
-1.5 pts |
||
Employer-sponsored products benefit ratio |
|
|
50.0 |
% |
|
|
42.6 |
% |
|
7.4 pts |
|
|
46.3 |
% |
|
|
54.3 |
% |
|
-8.0 pts |
N.M. - Not meaningful. | |
(1) |
Ratio of benefits to net premiums earned. |
(2) |
Ratio of operating expenses to total revenues. |
(3) |
Ratio of income before taxes to total revenues. |
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
||
Corporate & Other(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Components of loss before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment losses |
|
$ |
(17.4 |
) |
|
$ |
(15.5 |
) |
|
N.M. |
|
$ |
(21.3 |
) |
|
$ |
(31.0 |
) |
|
N.M. |
||
Interest expense |
|
|
(6.9 |
) |
|
|
(4.3 |
) |
|
-60.5 |
% |
|
|
(13.6 |
) |
|
|
(8.2 |
) |
|
-65.9 |
% |
Other operating expenses, net investment income and other income |
|
|
(1.8 |
) |
|
|
(2.5 |
) |
|
28.0 |
% |
|
|
(3.5 |
) |
|
|
(4.5 |
) |
|
22.2 |
% |
Loss before income taxes |
|
|
(26.1 |
) |
|
|
(22.3 |
) |
|
-17.0 |
% |
|
|
(38.4 |
) |
|
|
(43.7 |
) |
|
12.1 |
% |
Net loss |
|
|
(20.6 |
) |
|
|
(17.6 |
) |
|
-17.0 |
% |
|
|
(30.4 |
) |
|
|
(34.6 |
) |
|
12.1 |
% |
Core loss* |
|
|
(6.9 |
) |
|
|
(5.4 |
) |
|
-27.8 |
% |
|
|
(13.6 |
) |
|
|
(10.2 |
) |
|
-33.3 |
% |
N.M. - Not meaningful. | |
(1) |
The Corporate & Other segment includes interest expense on debt and the impact of 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. |
HORACE MANN EDUCATORS CORPORATION
|
||||||||||||||||||
($ in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||
Investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Life & Retirement |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
$ |
3,985.9 |
|
$ |
4,389.3 |
|
-9.2 |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
62.3 |
|
|
91.0 |
|
-31.5 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
32.3 |
|
|
38.1 |
|
-15.2 |
% |
|||
Policy loans |
|
|
|
|
|
|
|
|
139.9 |
|
|
139.9 |
|
— |
% |
|||
Limited partnership interests |
|
|
|
|
|
|
|
|
773.1 |
|
|
587.7 |
|
31.5 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
74.4 |
|
|
56.1 |
|
32.6 |
% |
|||
Total Life & Retirement investments |
|
|
|
|
|
|
|
|
5,067.9 |
|
|
5,302.1 |
|
-4.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
576.0 |
|
|
587.7 |
|
-2.0 |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
16.7 |
|
|
18.0 |
|
-7.2 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
3.7 |
|
|
0.8 |
|
N.M. |
||||
Limited partnership interests |
|
|
|
|
|
|
|
|
191.7 |
|
|
184.5 |
|
3.9 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
1.0 |
|
|
1.1 |
|
-9.1 |
% |
|||
Total Property & Casualty investments |
|
|
|
|
|
|
|
|
789.1 |
|
|
792.1 |
|
-0.4 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental & Group Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
649.8 |
|
|
711.0 |
|
-8.6 |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
5.8 |
|
|
7.3 |
|
-20.5 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
34.2 |
|
|
47.2 |
|
-27.5 |
% |
|||
Policy loans |
|
|
|
|
|
|
|
|
0.8 |
|
|
0.9 |
|
-11.1 |
% |
|||
Limited partnership interests |
|
|
|
|
|
|
|
|
109.0 |
|
|
56.2 |
|
94.0 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
8.0 |
|
|
7.5 |
|
6.7 |
% |
|||
Total Supplemental & Group Benefits investments |
|
|
|
|
|
|
|
|
807.6 |
|
|
830.1 |
|
-2.7 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate & Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
0.2 |
|
|
— |
|
N.M. |
||||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
1.0 |
|
|
1.0 |
|
— |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
3.8 |
|
|
11.1 |
|
N.M. |
||||
Total Corporate & Other investments |
|
|
|
|
|
|
|
|
5.0 |
|
|
12.1 |
|
-58.7 |
% |
|||
Total investments |
|
|
|
|
|
|
|
$ |
6,669.6 |
|
$ |
6,936.4 |
|
-3.8 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net investment income - investment portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax |
|
$ |
82.5 |
|
$ |
79.4 |
|
3.9 |
% |
|
$ |
157.2 |
|
$ |
152.4 |
|
3.1 |
% |
After tax |
|
|
65.5 |
|
|
63.1 |
|
3.8 |
% |
|
|
124.8 |
|
|
121.2 |
|
3.0 |
% |
Investment income - deposit asset on reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax |
|
$ |
26.0 |
|
|
25.8 |
|
0.8 |
% |
|
$ |
51.7 |
|
|
50.7 |
|
2.0 |
% |
After tax |
|
|
20.5 |
|
|
20.4 |
|
0.5 |
% |
|
|
40.8 |
|
|
40.1 |
|
1.7 |
% |
N.M. - Not meaningful. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801676450/en/
Heather J. Wietzel, Vice President, Investor Relations
217-788-5144 | investorrelations@horacemann.com
Source: Horace Mann Educators Corporation