Horace Mann reports strong fourth-quarter and full-year 2023 results
- Full-year net income of $45 million and core earnings of $64 million
- Total revenue increased by 8% for the year
- Property & Casualty segment saw improved profit in 2023
- Life & Retirement segment experienced a rise in net income and annuity assets
- Supplemental & Group Benefits segment delivered strong results
- Estimated 2024 EPS at $3.00-$3.30
- Property & Casualty segment net income/loss was $35.5 million
- Life & Retirement segment annualized sales decreased by 12.9%
Insights
Horace Mann Educators Corporation's reported financial results demonstrate a notable turnaround from a net loss in 2022 to a net income of $45 million in 2023, indicating a significant improvement in profitability. The increase in total revenue by 8% for the year and 16% for the fourth quarter is a positive indicator for investors, reflecting the company's ability to grow its top-line income. The reported core earnings of $64 million, however, represent a decline from the previous year, suggesting that while the company is profitable, there may be underlying challenges affecting its core operations.
The Property & Casualty segment's return to profitability with a fourth-quarter segment profit of $9 million is particularly noteworthy, as it marks a reversal from the losses reported in the previous year. This improvement is attributed to rate and non-rate underwriting actions, which could indicate a stronger pricing strategy and better risk management. The projected EPS for 2024 of $3.00-$3.30 suggests management's confidence in continued profitability and growth.
Investors should also note the company's solid balance sheet with a reported book value of $28.78 per share and an adjusted book value of $36.29 per share. The balance sheet strength, coupled with the dividend, may make Horace Mann an attractive investment for those seeking value and income. However, the company's senior debt offering in 2023 leading to higher corporate interest expense could pressure future earnings. The debt-to-capital ratio of 26.9% is within acceptable industry norms, but it warrants monitoring as increases in debt levels can affect financial flexibility and credit ratings.
The Property & Casualty insurance segment's performance, with a combined ratio of 100.9% for the fourth quarter, is a critical metric for assessing the profitability of Horace Mann's underwriting activities. A combined ratio under 100% typically indicates underwriting profit, while a ratio above 100% suggests an underwriting loss. The improvement from 128.0% in the previous year signals better expense management and loss mitigation. The segment's underlying combined ratio of 98.0% for the quarter reflects a healthier underwriting environment and the positive effects of the company's strategic initiatives.
The Life & Retirement segment's 12.1% increase in net income to $72 million and the Supplemental & Group Benefits segment's full-year net income of $55 million, while down from the previous year, still contribute positively to the overall earnings. These segments' performance underscores the diversified nature of Horace Mann's business model, which can provide a buffer against volatility in any single line of business.
Net investment income's 11% year-over-year increase is a result of the higher interest rate environment, which benefits the company's investment portfolio. However, the unrealized investment losses on fixed maturity securities due to higher interest rates highlight the sensitivity of the investment portfolio to changes in the interest rate environment. This is a common challenge for insurers who hold large fixed-income portfolios and must be managed carefully to prevent significant impacts on reported equity.
Horace Mann's focus on the education market is a strategic choice that leverages its specialized knowledge in this niche. The company's ability to deliver a diversified business model across Property & Casualty, Life & Retirement and Supplemental & Group Benefits segments allows it to capitalize on cross-selling opportunities and deepen relationships with its customer base. This focus is evident in its full-year guidance and long-term objectives, including a sustainable double-digit return on equity (ROE) by 2025.
The company's adoption of the Financial Accounting Standards Board’s Accounting Standard Update for long-duration contracts reflects its compliance with evolving accounting standards, which may impact reported financials and require careful analysis by investors. Additionally, the increase in sales for both worksite direct products and employer-sponsored products suggests effective market penetration and product appeal within the education sector.
Overall, Horace Mann's performance in a competitive insurance market shows resilience and strategic execution. However, investors should consider the broader economic environment, including interest rate trends and market conditions, as these can significantly impact insurance operations and investment returns. The company's forward-looking statements about future profitability and ROE targets should be evaluated against these external factors.
-
Diversified business delivered full-year net income of
$45 million $1.09 $64 million $1.54 $28.78 $36.29 $0.95 $0.84
-
Total revenue rose
8% for the year and16% for the fourth quarter with net premiums and contract charges earned up3% and record net premiums written and contract deposits* up6% for the year and fourth quarter, total net investment income up11% for the year and17% for the fourth quarter
-
Property & Casualty segment results improved over 2022 with fourth-quarter segment profit of
$9 million
-
Full-year 2024 EPS estimated at
$3.00 -$3.30
($ in millions, except per share amounts) |
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|||||||||
Total revenues |
|
$ |
402.9 |
|
$ |
346.4 |
|
|
16.3 |
% |
|
$ |
1,491.9 |
|
|
$ |
1,381.6 |
|
|
8.0 |
% |
Net income (loss) |
|
|
39.5 |
|
|
(16.7 |
) |
|
N.M. |
|
|
45.0 |
|
|
|
19.8 |
|
|
127.3 |
% |
|
Net investment gains (losses), after tax |
|
|
4.6 |
|
|
(10.0 |
) |
|
N.M. |
|
|
(18.8 |
) |
|
|
(44.5 |
) |
|
N.M. |
||
Other expense - goodwill and intangible asset impairments, after tax |
|
|
— |
|
|
(3.8 |
) |
|
N.M. |
|
|
— |
|
|
|
(3.8 |
) |
|
N.M. |
||
Core earnings (loss)* |
|
|
34.9 |
|
|
(2.9 |
) |
|
N.M. |
|
|
63.8 |
|
|
|
68.1 |
|
|
-6.3 |
% |
|
Adjusted core earnings* |
|
|
37.8 |
|
|
(1.5 |
) |
|
N.M. |
|
|
72.0 |
|
|
|
79.8 |
|
|
-9.8 |
% |
|
Per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
|
|
0.95 |
|
|
(0.40 |
) |
|
N.M. |
|
|
1.09 |
|
|
|
0.47 |
|
|
131.9 |
% |
|
Net investment gains (losses), after tax |
|
|
0.11 |
|
|
(0.25 |
) |
|
N.M. |
|
|
(0.45 |
) |
|
|
(1.07 |
) |
|
N.M. |
||
Other expense - goodwill and intangible asset impairments, after tax |
|
|
— |
|
|
(0.09 |
) |
|
N.M. |
|
|
— |
|
|
|
(0.09 |
) |
|
N.M. |
||
Core earnings (loss) per diluted share* |
|
|
0.84 |
|
|
(0.06 |
) |
|
N.M. |
|
|
1.54 |
|
|
|
1.63 |
|
|
-5.5 |
% |
|
Adjusted core earnings (loss) per diluted share* |
|
|
0.91 |
|
|
(0.04 |
) |
|
N.M. |
|
|
1.74 |
|
|
|
1.91 |
|
|
-8.9 |
% |
|
Book value per share |
|
|
|
|
|
|
|
|
28.78 |
|
|
|
26.85 |
|
|
7.2 |
% |
||||
Adjusted book value per share* |
|
|
|
|
|
|
|
|
36.29 |
|
|
|
36.40 |
|
|
-0.3 |
% |
||||
Tangible book value per share* |
|
|
|
|
|
|
|
|
30.79 |
|
|
|
30.58 |
|
|
0.7 |
% |
||||
N.M. - Not meaningful. |
|||||||||||||||||||||
* These measures are not based on accounting principles generally accepted in |
|||||||||||||||||||||
“We enter 2024 focused on helping all educators protect what they have today and prepare for a successful tomorrow while we also help school districts and other municipal employers attract and retain employees by providing more comprehensive benefits,” said Horace Mann President & CEO Marita Zuraitis. “We are diversifying to expand our reach in our core markets while managing our businesses to deliver consistent and reliable value to shareholders with a solid balance sheet and a compelling dividend.
“We remain highly confident in our ability to achieve the company’s long-term objectives of expanding our share of the education market and achieving a sustainable double-digit ROE in 2025.” Zuraitis added. “We are executing on our plan. In particular, 2023 results and our 2024 guidance clearly reflect the benefit of the property and casualty rate and non-rate underwriting actions we are taking. Our expectations for 2024 keep us on track to a core return on equity for the year near
Details of the company’s guidance and outlook are included in the Q4 2023 investor presentation available on the Quarterly Results page of investors.horacemann.com.
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 exclusive agents and direct capabilities. The Supplemental & Group Benefits segment provides worksite direct and employer-sponsored benefits through 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 reflect benefit of rate and non-rate actions
(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
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Property & Casualty net premiums written* |
|
$ |
176.0 |
|
|
$ |
153.5 |
|
|
14.7 |
% |
|
$ |
684.4 |
|
|
$ |
617.5 |
|
|
10.8 |
% |
Property & Casualty net income (loss) / core earnings (loss)* |
|
|
8.8 |
|
|
|
(25.0 |
) |
|
135.2 |
% |
|
|
(35.5 |
) |
|
|
(44.4 |
) |
|
20.0 |
% |
Property & Casualty combined ratio |
|
|
100.9 |
% |
|
|
128.0 |
% |
|
-27.1 pts |
|
|
113.3 |
% |
|
|
115.3 |
% |
|
-2.0 pts |
||
Property & Casualty underlying loss ratio* |
|
|
71.1 |
% |
|
|
81.6 |
% |
|
-10.5 pts |
|
|
71.2 |
% |
|
|
71.3 |
% |
|
-0.1 pts |
||
Property & Casualty expense ratio |
|
|
26.9 |
% |
|
|
29.4 |
% |
|
-2.5 pts |
|
|
27.0 |
% |
|
|
27.4 |
% |
|
-0.4 pts |
||
Property & Casualty catastrophe losses |
|
|
2.9 |
% |
|
|
8.0 |
% |
|
-5.1 pts |
|
|
15.1 |
% |
|
|
13.0 |
% |
|
2.1 pts |
||
Property & Casualty underlying combined ratio* |
|
|
98.0 |
% |
|
|
111.0 |
% |
|
-13.0 pts |
|
|
98.2 |
% |
|
|
98.7 |
% |
|
-0.5 pts |
||
Auto combined ratio |
|
|
112.7 |
% |
|
|
143.6 |
% |
|
-30.9 pts |
|
|
111.7 |
% |
|
|
119.0 |
% |
|
-7.3 pts |
||
Auto underlying loss ratio* |
|
|
84.7 |
% |
|
|
99.8 |
% |
|
-15.1 pts |
|
|
81.7 |
% |
|
|
82.8 |
% |
|
-1.1 pts |
||
Property combined ratio |
|
|
80.1 |
% |
|
|
101.0 |
% |
|
-20.9 pts |
|
|
116.1 |
% |
|
|
108.8 |
% |
|
7.3 pts |
||
Property underlying loss ratio* |
|
|
47.0 |
% |
|
|
49.9 |
% |
|
-2.9 pts |
|
|
52.2 |
% |
|
|
50.1 |
% |
|
2.1 pts |
||
Including a profit of
The year-over-year improvement in the fourth-quarter combined ratio demonstrated the benefit of the company’s rate and non-rate underwriting actions as well as catastrophe losses below our five-year average for the fourth quarter. Catastrophe losses for the quarter were
The year-over-year increase in average written premiums for auto policies improved again in the fourth quarter to
The year-over-year increase in average written premiums for property policies was
Life & Retirement segment full-year 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
|
|
Twelve Months Ended
|
||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||
Life & Retirement net income |
|
$ |
19.2 |
|
$ |
6.7 |
|
N.M. |
|
$ |
71.5 |
|
$ |
63.8 |
|
12.1 |
% |
|
Life & Retirement core earnings* |
|
|
19.2 |
|
|
10.5 |
|
82.9 |
% |
|
|
71.5 |
|
|
67.6 |
|
5.8 |
% |
Life & Retirement adjusted core earnings* |
|
|
19.2 |
|
|
8.8 |
|
118.2 |
% |
|
|
68.2 |
|
|
66.9 |
|
1.9 |
% |
Life annualized sales* |
|
|
2.7 |
|
|
3.1 |
|
-12.9 |
% |
|
|
9.3 |
|
|
9.3 |
|
— |
% |
Life mortality costs |
|
|
16.4 |
|
|
14.9 |
|
10.1 |
% |
|
|
69.4 |
|
|
68.6 |
|
1.2 |
% |
Net annuity contract deposits* |
|
|
108.3 |
|
|
105.0 |
|
3.1 |
% |
|
|
455.9 |
|
|
429.3 |
|
6.2 |
% |
Annuity assets under management(1) |
|
|
|
|
|
|
|
|
5,186.9 |
|
|
4,837.9 |
|
7.2 |
% |
|||
Total assets under administration(2) |
|
|
|
|
|
|
|
|
8,687.1 |
|
|
8,120.3 |
|
7.0 |
% |
|||
(1) |
Amount reported as of December 31, 2023 excludes |
(2) |
Includes Annuity AUM, Brokerage and Advisory AUA, and Recordkeeping AUA. |
Life & Retirement segment net income for the full year was ahead of recent guidance, as segment net investment income rose
For the Retirement business, net annuity contract deposits were up
Horace Mann currently has
Life annualized sales were
Supplemental & Group Benefits segment full-year 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 December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Supplemental & Group Benefits net income / core earnings* |
|
$ |
13.3 |
|
|
$ |
17.0 |
|
|
-21.8 |
% |
|
$ |
54.9 |
|
|
$ |
65.9 |
|
|
-16.7 |
% |
Supplemental & Group Benefits adjusted core earnings* |
|
|
16.2 |
|
|
|
20.1 |
|
|
-19.4 |
% |
|
|
66.4 |
|
|
|
78.3 |
|
|
-15.2 |
% |
Pretax profit margin(1) |
|
|
23.3 |
% |
|
|
30.9 |
% |
|
-7.6 pts |
|
|
24.3 |
% |
|
|
28.5 |
% |
|
-4.2 pts |
||
Net premiums earned |
|
$ |
64.6 |
|
|
$ |
68.3 |
|
|
-5.4 |
% |
|
$ |
259.8 |
|
|
$ |
275.5 |
|
|
-5.7 |
% |
Worksite direct products sales* |
|
|
4.4 |
|
|
|
3.4 |
|
|
29.4 |
% |
|
|
15.1 |
|
|
|
9.2 |
|
|
64.1 |
% |
Employer-sponsored products sales* |
|
|
1.1 |
|
|
|
1.1 |
|
|
— |
% |
|
|
11.1 |
|
|
|
6.9 |
|
|
60.9 |
% |
Worksite direct products benefit ratio |
|
|
36.3 |
% |
|
|
16.9 |
% |
|
19.4 pts |
|
|
29.1 |
% |
|
|
23.0 |
% |
|
6.1 pts |
||
Employer-sponsored products benefit ratio |
|
|
36.2 |
% |
|
|
33.3 |
% |
|
2.9 pts |
|
|
41.4 |
% |
|
|
41.8 |
% |
|
-0.4 pts |
||
(1) |
Measured to total revenues. |
Supplemental & Group Benefits segment full-year net income was
The non-cash impact of amortization of intangible assets under purchase accounting reduced full-year 2023 core earnings by
Total segment sales for the year were
Consolidated Results
The Corporate & Other segment reduced total revenues by
Total net investment income rose
(All comparisons vs. same period in 2022, unless noted otherwise)
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.
($ in millions) |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Pretax net investment income - investment portfolio |
|
$ |
90.9 |
|
|
$ |
74.1 |
|
|
22.7 |
% |
|
$ |
339.9 |
|
|
$ |
297.4 |
|
|
14.3 |
% |
Pretax investment income - deposit asset on reinsurance |
|
|
26.1 |
|
|
|
26.1 |
|
|
— |
% |
|
|
104.9 |
|
|
|
103.5 |
|
|
1.4 |
% |
Total pretax net investment income |
|
|
117.0 |
|
|
|
100.2 |
|
|
16.8 |
% |
|
|
444.8 |
|
|
|
400.9 |
|
|
11.0 |
% |
Pretax net investment gains (losses) |
|
|
5.7 |
|
|
|
(12.7 |
) |
|
N.M |
|
|
(24.0 |
) |
|
|
(56.5 |
) |
|
N.M. |
||
Pretax net unrealized investment gains (losses) on fixed maturity securities |
|
|
|
|
|
|
|
|
(417.6 |
) |
|
|
(571.9 |
) |
|
N.M. |
||||||
Investment yield, excluding limited partnership interests, pretax - annualized |
|
|
4.94 |
% |
|
|
4.01 |
% |
|
0.93 pts |
|
|
4.74 |
% |
|
|
4.26 |
% |
|
0.48 pts |
||
N.M. - Not meaningful. |
||||||||||||||||||||||
For the full year, 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 December 31, 2023, shareholders’ equity was
At December 31, 2023, total debt was
Quarterly webcast
Horace Mann’s senior management will discuss the company’s fourth-quarter and full-year financial results with investors on February 8, 2024 at 11:00 a.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and available 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 |
|||||||||||||||||||||
Financial Highlights (Unaudited) |
|||||||||||||||||||||
($ in millions, except per share data) |
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
39.5 |
|
|
$ |
(16.7 |
) |
|
N.M. |
|
$ |
45.0 |
|
|
$ |
19.8 |
|
|
127.3 |
% |
|
Net investment gains (losses), after tax |
|
4.6 |
|
|
|
(10.0 |
) |
|
N.M. |
|
|
(18.8 |
) |
|
|
(44.5 |
) |
|
N.M. |
||
Other expense - goodwill and intangible asset
|
|
— |
|
|
|
(3.8 |
) |
|
N.M. |
|
|
— |
|
|
|
(3.8 |
) |
|
N.M. |
||
Core earnings (loss)* |
|
34.9 |
|
|
|
(2.9 |
) |
|
N.M. |
|
|
63.8 |
|
|
|
68.1 |
|
|
-6.3 |
% |
|
Adjusted core earnings (loss)* |
|
37.8 |
|
|
|
(1.5 |
) |
|
N.M. |
|
|
72.0 |
|
|
|
79.8 |
|
|
-9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per diluted share:(1) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) |
$ |
0.95 |
|
|
$ |
(0.40 |
) |
|
N.M. |
|
$ |
1.09 |
|
|
$ |
0.47 |
|
|
131.9 |
% |
|
Net investment gains (losses), after tax |
|
0.11 |
|
|
|
(0.25 |
) |
|
N.M. |
|
|
(0.45 |
) |
|
|
(1.07 |
) |
|
N.M. |
||
Other expense - goodwill and intangible asset impairments, after tax |
|
— |
|
|
|
(0.09 |
) |
|
N.M. |
|
|
— |
|
|
|
(0.09 |
) |
|
N.M. |
||
Core earnings (loss)* |
|
0.84 |
|
|
|
(0.06 |
) |
|
N.M. |
|
|
1.54 |
|
|
|
1.63 |
|
|
-5.5 |
% |
|
Adjusted core earnings (loss)* |
|
0.91 |
|
|
|
(0.04 |
) |
|
N.M. |
|
|
1.74 |
|
|
|
1.91 |
|
|
-8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of shares and equivalent shares (in millions) - Basic |
|
41.3 |
|
|
|
41.4 |
|
|
-0.2 |
% |
|
|
41.3 |
|
|
|
41.6 |
|
|
-0.7 |
% |
Weighted average number of shares and equivalent shares (in millions) - Diluted |
|
41.5 |
|
|
|
41.6 |
|
|
-0.2 |
% |
|
|
41.4 |
|
|
|
41.8 |
|
|
-1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on Equity |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income return on equity - LTM(2) |
|
4.0 |
% |
|
|
1.6 |
% |
|
|
|
|
4.0 |
% |
|
|
1.6 |
% |
|
|
||
Net income return on equity - annualized |
|
14.2 |
% |
|
|
(6.1 |
)% |
|
|
|
|
|
|
|
|
||||||
Core return on equity - LTM*(3) |
|
4.3 |
% |
|
|
4.5 |
% |
|
|
|
|
4.3 |
% |
|
|
4.5 |
% |
|
|
||
Core return on equity - annualized* |
|
9.5 |
% |
|
|
(0.8 |
)% |
|
|
|
|
|
|
|
|
||||||
Adjusted core return on equity - LTM*(4) |
|
4.9 |
% |
|
|
5.2 |
% |
|
|
|
|
4.9 |
% |
|
|
5.2 |
% |
|
|
||
Adjusted core return on equity - annualized* |
|
10.3 |
% |
|
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Position |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Per share:(5) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Book value |
|
|
|
|
|
|
$ |
28.78 |
|
|
$ |
26.85 |
|
|
7.2 |
% |
|||||
Effect of net unrealized investment (losses) on fixed maturity securities |
|
|
|
|
|
|
|
(8.04 |
) |
|
|
(10.99 |
) |
|
N.M. |
||||||
Per share impact of net reserve remeasurements attributable to discount rates* |
|
|
|
|
|
|
|
0.53 |
|
|
|
1.44 |
|
|
N.M. |
||||||
Adjusted book value* |
|
|
|
|
|
|
$ |
36.29 |
|
|
$ |
36.40 |
|
|
-0.3 |
% |
|||||
Dividends paid |
$ |
0.33 |
|
|
$ |
0.32 |
|
|
3.1 |
% |
|
$ |
1.32 |
|
|
$ |
1.28 |
|
|
3.1 |
% |
Ending number of shares outstanding (in millions)(5) |
|
|
|
|
|
|
|
40.8 |
|
|
|
40.9 |
|
|
-0.2 |
% |
|||||
Total assets |
|
|
|
|
|
|
$ |
14,045.5 |
|
|
$ |
13,306.1 |
|
|
5.6 |
% |
|||||
Short-term debt |
|
|
|
|
|
|
|
— |
|
|
|
249.0 |
|
|
-100.0 |
% |
|||||
Long-term debt |
|
|
|
|
|
|
|
546.0 |
|
|
|
249.0 |
|
|
119.3 |
% |
|||||
Total shareholders’ equity |
|
|
|
|
|
|
|
1,175.3 |
|
|
|
1,098.3 |
|
|
7.0 |
% |
|||||
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 40,836,734 at December 31, 2023 and 40,904,312 at December 31, 2022. |
HORACE MANN EDUCATORS CORPORATION |
||||||||||||||||||||||
Consolidated Statements of Operations and Data (Unaudited) |
||||||||||||||||||||||
($ in millions, except per share data) |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums and contract charges earned |
|
$ |
274.5 |
|
|
$ |
259.1 |
|
|
5.9 |
% |
|
$ |
1,057.1 |
|
|
$ |
1,027.7 |
|
|
2.9 |
% |
Net investment income |
|
|
117.0 |
|
|
|
100.2 |
|
|
16.8 |
% |
|
|
444.8 |
|
|
|
400.9 |
|
|
11.0 |
% |
Net investment gains (losses) |
|
|
5.7 |
|
|
|
(12.7 |
) |
|
N.M. |
|
|
(24.0 |
) |
|
|
(56.5 |
) |
|
N.M. |
||
Other income |
|
|
5.7 |
|
|
|
(0.2 |
) |
|
N.M. |
|
|
14.0 |
|
|
|
9.5 |
|
|
47.4 |
% |
|
Total revenues |
|
|
402.9 |
|
|
|
346.4 |
|
|
16.3 |
% |
|
|
1,491.9 |
|
|
|
1,381.6 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefits, claims and settlement expenses |
|
|
181.5 |
|
|
|
201.3 |
|
|
-9.8 |
% |
|
|
769.1 |
|
|
|
747.0 |
|
|
3.0 |
% |
Interest credited |
|
|
53.6 |
|
|
|
47.5 |
|
|
12.8 |
% |
|
|
205.7 |
|
|
|
173.4 |
|
|
18.6 |
% |
Operating expenses |
|
|
82.5 |
|
|
|
86.1 |
|
|
-4.2 |
% |
|
|
318.1 |
|
|
|
315.5 |
|
|
0.8 |
% |
DAC amortization expense |
|
|
25.8 |
|
|
|
22.5 |
|
|
14.7 |
% |
|
|
101.2 |
|
|
|
88.2 |
|
|
14.7 |
% |
Intangible asset amortization expense |
|
|
3.7 |
|
|
|
4.2 |
|
|
-11.9 |
% |
|
|
14.8 |
|
|
|
16.8 |
|
|
-11.9 |
% |
Interest expense |
|
|
8.6 |
|
|
|
5.9 |
|
|
45.8 |
% |
|
|
29.7 |
|
|
|
19.4 |
|
|
53.1 |
% |
Other expense - goodwill and intangible asset
|
|
|
— |
|
|
|
4.8 |
|
|
N.M. |
|
|
— |
|
|
|
4.8 |
|
|
N.M. |
||
Total benefits, losses and expenses |
|
|
355.7 |
|
|
|
372.3 |
|
|
-4.5 |
% |
|
|
1,438.6 |
|
|
|
1,365.1 |
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) before income taxes |
|
|
47.2 |
|
|
|
(25.9 |
) |
|
N.M. |
|
|
53.3 |
|
|
|
16.5 |
|
|
N.M. |
||
Income tax expense (benefit) |
|
|
7.7 |
|
|
|
(9.2 |
) |
|
N.M. |
|
|
8.3 |
|
|
|
(3.3 |
) |
|
N.M. |
||
Net income (loss) |
|
$ |
39.5 |
|
|
$ |
(16.7 |
) |
|
N.M. |
|
$ |
45.0 |
|
|
$ |
19.8 |
|
|
127.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Premiums Written and Contract Deposits* |
|
|
|
|
|
|
|
|
||||||||||||||
Property & Casualty |
|
$ |
176.0 |
|
|
$ |
153.5 |
|
|
14.7 |
% |
|
$ |
684.4 |
|
|
$ |
617.5 |
|
|
10.8 |
% |
Life & Retirement |
|
|
140.5 |
|
|
|
136.8 |
|
|
2.7 |
% |
|
|
573.3 |
|
|
|
544.8 |
|
|
5.2 |
% |
Supplemental & Group Benefits |
|
|
63.7 |
|
|
|
67.9 |
|
|
-6.2 |
% |
|
|
259.8 |
|
|
|
274.7 |
|
|
-5.4 |
% |
Total |
|
$ |
380.2 |
|
|
$ |
358.2 |
|
|
6.1 |
% |
|
$ |
1,517.5 |
|
|
$ |
1,437.0 |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment Net Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Property & Casualty |
|
$ |
8.8 |
|
|
$ |
(25.0 |
) |
|
135.2 |
% |
|
$ |
(35.5 |
) |
|
$ |
(44.4 |
) |
|
20.0 |
% |
Life & Retirement |
|
|
19.2 |
|
|
|
6.7 |
|
|
186.6 |
% |
|
|
71.5 |
|
|
|
63.8 |
|
|
12.1 |
% |
Supplemental & Group Benefits |
|
|
13.3 |
|
|
|
17.0 |
|
|
-21.8 |
% |
|
|
54.9 |
|
|
|
65.9 |
|
|
-16.7 |
% |
Corporate & Other(1) |
|
|
(1.8 |
) |
|
|
(15.4 |
) |
|
88.3 |
% |
|
|
(45.9 |
) |
|
|
(65.5 |
) |
|
29.9 |
% |
Consolidated net income |
|
$ |
39.5 |
|
|
$ |
(16.7 |
) |
|
N.M. |
|
$ |
45.0 |
|
|
$ |
19.8 |
|
|
127.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Before tax |
|
$ |
5.7 |
|
|
$ |
(12.7 |
) |
|
N.M. |
|
$ |
(24.0 |
) |
|
$ |
(56.5 |
) |
|
N.M. |
||
After tax |
|
|
4.6 |
|
|
|
(10.0 |
) |
|
N.M. |
|
|
(18.8 |
) |
|
|
(44.5 |
) |
|
N.M. |
||
Per share, diluted |
|
$ |
0.11 |
|
|
$ |
(0.25 |
) |
|
N.M. |
|
$ |
(0.45 |
) |
|
$ |
(1.07 |
) |
|
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 11. |
HORACE MANN EDUCATORS CORPORATION |
||||||||||||||||||||||
Business Segment Overview (Unaudited) |
||||||||||||||||||||||
($ in millions) |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
Property & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written* |
|
$ |
176.0 |
|
|
$ |
153.5 |
|
|
14.7 |
% |
|
$ |
684.4 |
|
|
$ |
617.5 |
|
|
10.8 |
% |
Net premiums earned |
|
|
171.5 |
|
|
|
155.7 |
|
|
10.1 |
% |
|
|
645.6 |
|
|
|
608.2 |
|
|
6.1 |
% |
Net investment income |
|
|
11.3 |
|
|
|
8.5 |
|
|
32.9 |
% |
|
|
37.9 |
|
|
|
31.4 |
|
|
20.7 |
% |
Other income |
|
|
0.5 |
|
|
|
0.7 |
|
|
-28.6 |
% |
|
|
2.8 |
|
|
|
3.4 |
|
|
-17.6 |
% |
Losses and loss adjustment expenses (LAE) |
|
|
127.0 |
|
|
|
153.5 |
|
|
-17.3 |
% |
|
|
557.0 |
|
|
|
534.3 |
|
|
4.2 |
% |
Operating expenses (includes amortization expense) |
|
|
46.1 |
|
|
|
45.8 |
|
|
0.7 |
% |
|
|
174.6 |
|
|
|
166.9 |
|
|
4.6 |
% |
Loss before income taxes |
|
|
10.2 |
|
|
|
(34.4 |
) |
|
129.7 |
% |
|
|
(45.3 |
) |
|
|
(58.2 |
) |
|
22.2 |
% |
Net income (loss) / core income (loss)* |
|
|
8.8 |
|
|
|
(25.0 |
) |
|
135.2 |
% |
|
|
(35.5 |
) |
|
|
(44.4 |
) |
|
20.0 |
% |
Net investment income, after tax |
|
|
9.2 |
|
|
|
7.0 |
|
|
31.4 |
% |
|
|
31.1 |
|
|
|
26.4 |
|
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Catastrophe losses |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
After tax |
|
|
3.9 |
|
|
|
9.8 |
|
|
-60.2 |
% |
|
|
77.1 |
|
|
|
63.2 |
|
|
22.0 |
% |
Before tax |
|
|
5.0 |
|
|
|
12.4 |
|
|
-59.7 |
% |
|
|
97.6 |
|
|
|
80.0 |
|
|
22.0 |
% |
Prior years’ reserve development, before tax(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto |
|
|
— |
|
|
|
14.0 |
|
|
N.M. |
|
|
— |
|
|
|
28.0 |
|
|
N.M. |
||
Property and other |
|
|
— |
|
|
|
— |
|
|
N.M. |
|
|
— |
|
|
|
(6.0 |
) |
|
N.M. |
||
Total |
|
|
— |
|
|
|
14.0 |
|
|
N.M. |
|
|
— |
|
|
|
22.0 |
|
|
N.M. |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating statistics: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss and loss adjustment expense ratio |
|
|
74.0 |
% |
|
|
98.6 |
% |
|
-24.6 pts |
|
|
86.3 |
% |
|
|
87.9 |
% |
|
-1.6 pts |
||
Expense ratio |
|
|
26.9 |
% |
|
|
29.4 |
% |
|
-2.5 pts |
|
|
27.0 |
% |
|
|
27.4 |
% |
|
-0.4 pts |
||
Combined ratio |
|
|
100.9 |
% |
|
|
128.0 |
% |
|
-27.1 pts |
|
|
113.3 |
% |
|
|
115.3 |
% |
|
-2.0 pts |
||
Effect on the combined ratio of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Catastrophe losses |
|
|
2.9 |
% |
|
|
8.0 |
% |
|
-5.1 pts |
|
|
15.1 |
% |
|
|
13.0 |
% |
|
2.1 pts |
||
Prior years’ reserve development(1) |
|
|
— |
% |
|
|
9.0 |
% |
|
-9.0 pts |
|
|
— |
% |
|
|
3.6 |
% |
|
-3.6 pts |
||
Combined ratio excluding the effects of catastrophe losses and prior years’ reserve development (underlying combined ratio)* |
|
|
98.0 |
% |
|
|
111.0 |
% |
|
-13.0 pts |
|
|
98.2 |
% |
|
|
98.7 |
% |
|
-0.5 pts |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Risks in force (in thousands) |
|
|
|
|
|
|
|
|
526 |
|
|
|
538 |
|
|
-2.2 |
% |
|||||
Auto(2) |
|
|
|
|
|
|
|
|
358 |
|
|
|
367 |
|
|
-2.5 |
% |
|||||
Property |
|
|
|
|
|
|
|
|
168 |
|
|
|
171 |
|
|
-1.8 |
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Household Retention - LTM |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto(3) |
|
|
|
|
|
|
|
|
86.3 |
% |
|
|
87.0 |
% |
|
-0.7 pts |
||||||
Property(3) |
|
|
|
|
|
|
|
|
90.3 |
% |
|
|
89.6 |
% |
|
0.7 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 |
||||||||||||||||||||
Business Segment Overview (Unaudited) |
||||||||||||||||||||
($ in millions) |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||
Life & Retirement |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net premiums written and contract deposits* |
|
$ |
140.5 |
|
$ |
136.8 |
|
2.7 |
% |
|
$ |
573.3 |
|
|
$ |
544.8 |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net premiums and contract charges earned |
|
|
38.4 |
|
|
35.1 |
|
9.4 |
% |
|
|
151.7 |
|
|
|
144.0 |
|
|
5.3 |
% |
Net investment income |
|
|
95.8 |
|
|
84.3 |
|
13.6 |
% |
|
|
369.9 |
|
|
|
338.3 |
|
|
9.3 |
% |
Other income |
|
|
4.9 |
|
|
3.6 |
|
36.1 |
% |
|
|
17.0 |
|
|
|
17.0 |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Death benefits / mortality cost(1) |
|
|
16.4 |
|
|
14.9 |
|
10.1 |
% |
|
|
69.4 |
|
|
|
68.6 |
|
|
1.2 |
% |
Interest credited |
|
|
52.4 |
|
|
46.9 |
|
11.7 |
% |
|
|
201.8 |
|
|
|
172.1 |
|
|
17.3 |
% |
Change in reserves |
|
|
15.8 |
|
|
15.5 |
|
1.9 |
% |
|
|
53.8 |
|
|
|
52.9 |
|
|
1.7 |
% |
Operating expenses |
|
|
26.0 |
|
|
27.8 |
|
-6.5 |
% |
|
|
98.7 |
|
|
|
102.4 |
|
|
-3.6 |
% |
DAC amortization expense |
|
|
6.2 |
|
|
5.9 |
|
5.1 |
% |
|
|
28.1 |
|
|
|
23.0 |
|
|
22.2 |
% |
Intangible asset amortization expense |
|
|
— |
|
|
0.3 |
|
-100.0 |
% |
|
|
0.2 |
|
|
|
1.1 |
|
|
-81.8 |
% |
Other expense - goodwill and intangible asset
|
|
|
— |
|
|
4.8 |
|
N.M. |
|
|
— |
|
|
|
4.8 |
|
|
N.M. |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes |
|
|
22.3 |
|
|
6.9 |
|
N.M. |
|
|
86.6 |
|
|
|
74.4 |
|
|
16.4 |
% |
|
Income tax expense |
|
|
3.1 |
|
|
0.2 |
|
N.M. |
|
|
15.1 |
|
|
|
10.6 |
|
|
42.5 |
% |
|
Net income |
|
|
19.2 |
|
|
6.7 |
|
N.M. |
|
|
71.5 |
|
|
|
63.8 |
|
|
12.1 |
% |
|
Core earnings* |
|
|
19.2 |
|
|
10.5 |
|
82.9 |
% |
|
|
71.5 |
|
|
|
67.6 |
|
|
5.8 |
% |
Adjusted core earnings* |
|
|
19.2 |
|
|
8.8 |
|
118.2 |
% |
|
|
68.2 |
|
|
|
66.9 |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Life policies in force (in thousands) |
|
|
|
|
|
|
|
|
162 |
|
|
|
162 |
|
|
— |
% |
|||
Life insurance in force |
|
|
|
|
|
|
|
$ |
20,476 |
|
|
$ |
20,030 |
|
|
2.2 |
% |
|||
Lapse ratio - 12 months(1) |
|
|
|
|
|
|
|
|
4.3 |
% |
|
|
4.0 |
% |
|
0.3 pts |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Annuity contracts in force (in thousands) |
|
|
|
|
|
|
|
|
223 |
|
|
|
228 |
|
|
-2.2 |
% |
|||
Horace Mann Retirement Advantage® contracts in force (in thousands) |
|
|
|
|
|
|
|
|
19 |
|
|
|
17 |
|
|
11.8 |
% |
|||
Total Persistency - LTM |
|
|
|
|
|
|
|
|
91.5 |
% |
|
|
93.7 |
% |
|
-2.2 pts |
||||
N.M. - Not meaningful. |
|
(1) |
Ordinary life insurance. |
HORACE MANN EDUCATORS CORPORATION |
||||||||||||||||||||||
Business Segment Overview (Unaudited) |
||||||||||||||||||||||
($ in millions) |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Supplemental & Group Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums and contract charges earned |
|
$ |
64.6 |
|
|
$ |
68.3 |
|
|
-5.4 |
% |
|
$ |
259.8 |
|
|
$ |
275.5 |
|
|
-5.7 |
% |
Net investment income |
|
|
10.4 |
|
|
|
7.9 |
|
|
31.6 |
% |
|
|
38.9 |
|
|
|
33.3 |
|
|
16.8 |
% |
Other income |
|
|
(2.9 |
) |
|
|
(5.0 |
) |
|
42.0 |
% |
|
|
(11.1 |
) |
|
|
(13.4 |
) |
|
17.2 |
% |
Benefits, settlement expenses and change in reserves |
|
|
22.3 |
|
|
|
17.4 |
|
|
28.2 |
% |
|
|
88.9 |
|
|
|
91.2 |
|
|
-2.5 |
% |
Interest credited |
|
|
1.2 |
|
|
|
0.6 |
|
|
100.0 |
% |
|
|
3.9 |
|
|
|
1.3 |
|
|
N.M. |
|
Operating expenses (includes DAC amortization expense) |
|
|
28.2 |
|
|
|
27.2 |
|
|
3.7 |
% |
|
|
110.5 |
|
|
|
103.2 |
|
|
7.1 |
% |
Intangible asset amortization expense |
|
|
3.7 |
|
|
|
3.9 |
|
|
-5.1 |
% |
|
|
14.6 |
|
|
|
15.7 |
|
|
-7.0 |
% |
Income before income taxes |
|
|
16.7 |
|
|
|
22.1 |
|
|
-24.4 |
% |
|
|
69.7 |
|
|
|
84.0 |
|
|
-17.0 |
% |
Net income / core earnings* |
|
|
13.3 |
|
|
|
17.0 |
|
|
-21.8 |
% |
|
|
54.9 |
|
|
|
65.9 |
|
|
-16.7 |
% |
Adjusted core earnings* |
|
|
16.2 |
|
|
|
20.1 |
|
|
-19.4 |
% |
|
|
66.4 |
|
|
|
78.3 |
|
|
-15.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Benefit ratio(1) |
|
|
36.2 |
% |
|
|
26.2 |
% |
|
10.0 pts |
|
|
35.7 |
% |
|
|
33.5 |
% |
|
2.2 pts |
||
Operating expense ratio(2) |
|
|
39.1 |
% |
|
|
38.4 |
% |
|
0.7 pts |
|
|
38.4 |
% |
|
|
35.0 |
% |
|
3.4 pts |
||
Pretax profit margin(3) |
|
|
23.3 |
% |
|
|
30.9 |
% |
|
-7.6 pts |
|
|
24.3 |
% |
|
|
28.5 |
% |
|
-4.2 pts |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Worksite Direct products benefit ratio |
|
|
36.3 |
% |
|
|
16.9 |
% |
|
19.4 pts |
|
|
29.1 |
% |
|
|
23.0 |
% |
|
6.1 pts |
||
Worksite Direct premium persistency (rolling 12 months) |
|
|
91.4 |
% |
|
|
90.4 |
% |
|
1.0 pts |
|
|
91.4 |
% |
|
|
90.4 |
% |
|
1.0 pts |
||
Employer-sponsored products benefit ratio |
|
|
36.2 |
% |
|
|
33.3 |
% |
|
2.9 pts |
|
|
41.4 |
% |
|
|
41.8 |
% |
|
-0.4 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
|
|
Twelve Months Ended
|
||||||||||||||||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||||||||
Corporate & Other(1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Components of loss before tax: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment gains (losses) |
|
$ |
5.7 |
|
|
$ |
(12.7 |
) |
|
N.M. |
|
$ |
(24.0 |
) |
|
$ |
(56.5 |
) |
|
N.M. |
||
Interest expense |
|
|
(8.6 |
) |
|
|
(5.9 |
) |
|
-45.8 |
% |
|
|
(29.7 |
) |
|
|
(19.4 |
) |
|
-53.1 |
% |
Other operating expenses, net investment income and other income |
|
|
0.9 |
|
|
|
(1.9 |
) |
|
147.4 |
% |
|
|
(4.0 |
) |
|
|
(7.8 |
) |
|
48.7 |
% |
Loss before income taxes |
|
|
(2.0 |
) |
|
|
(20.5 |
) |
|
90.2 |
% |
|
|
(57.7 |
) |
|
|
(83.7 |
) |
|
31.1 |
% |
Net loss |
|
|
(1.8 |
) |
|
|
(15.4 |
) |
|
88.3 |
% |
|
|
(45.9 |
) |
|
|
(65.5 |
) |
|
29.9 |
% |
Core loss* |
|
|
(6.4 |
) |
|
|
(5.4 |
) |
|
-18.5 |
% |
|
|
(27.1 |
) |
|
|
(21.0 |
) |
|
-29.0 |
% |
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 |
||||||||||||||||||
Business Segment Overview (Unaudited) |
||||||||||||||||||
($ in millions) |
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||
Investments |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Life & Retirement |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
$ |
3,960.3 |
|
$ |
3,960.1 |
|
— |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
62.8 |
|
|
75.6 |
|
-16.9 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
36.5 |
|
|
70.4 |
|
-48.2 |
% |
|||
Policy loans |
|
|
|
|
|
|
|
|
140.5 |
|
|
138.4 |
|
1.5 |
% |
|||
Limited partnership interests |
|
|
|
|
|
|
|
|
816.1 |
|
|
697.2 |
|
17.1 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
86.7 |
|
|
62.0 |
|
39.8 |
% |
|||
Total Life & Retirement investments |
|
|
|
|
|
|
|
|
5,102.9 |
|
|
5,003.7 |
|
2.0 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Property & Casualty |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
640.8 |
|
|
551.3 |
|
16.2 |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
16.5 |
|
|
16.7 |
|
-1.2 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
49.1 |
|
|
18.2 |
|
N.M. |
||||
Limited partnership interests |
|
|
|
|
|
|
|
|
200.6 |
|
|
190.1 |
|
5.5 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
1.0 |
|
|
1.0 |
|
— |
% |
|||
Total Property & Casualty investments |
|
|
|
|
|
|
|
|
908.0 |
|
|
777.3 |
|
16.8 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Supplemental & Group Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
634.0 |
|
|
673.4 |
|
-5.9 |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
5.9 |
|
|
6.3 |
|
-6.3 |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
45.3 |
|
|
20.0 |
|
126.5 |
% |
|||
Policy loans |
|
|
|
|
|
|
|
|
0.9 |
|
|
0.9 |
|
— |
% |
|||
Limited partnership interests |
|
|
|
|
|
|
|
|
122.1 |
|
|
96.4 |
|
26.7 |
% |
|||
Other investments |
|
|
|
|
|
|
|
|
8.2 |
|
|
7.6 |
|
7.9 |
% |
|||
Total Supplemental & Group Benefits investments |
|
|
|
|
|
|
|
|
816.4 |
|
|
804.6 |
|
1.5 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corporate & Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fixed maturity securities, at fair value (amortized
cost, net 2023, |
|
|
|
|
|
|
|
|
0.2 |
|
|
0.2 |
|
— |
% |
|||
Equity securities, at fair value |
|
|
|
|
|
|
|
|
1.0 |
|
|
1.0 |
|
— |
% |
|||
Short-term investments |
|
|
|
|
|
|
|
|
2.0 |
|
|
0.8 |
|
150.0 |
% |
|||
Total Corporate & Other investments |
|
|
|
|
|
|
|
|
3.2 |
|
|
2.0 |
|
60.0 |
% |
|||
Total investments |
|
|
|
|
|
|
|
$ |
6,830.5 |
|
$ |
6,587.6 |
|
3.7 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net investment income - investment portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax |
|
$ |
90.9 |
|
$ |
74.1 |
|
22.7 |
% |
|
$ |
339.9 |
|
$ |
297.4 |
|
14.3 |
% |
After tax |
|
|
72.0 |
|
|
58.9 |
|
22.2 |
% |
|
|
269.6 |
|
|
236.6 |
|
13.9 |
% |
Investment income - deposit asset on reinsurance |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Before tax |
|
$ |
26.1 |
|
|
26.1 |
|
— |
% |
|
$ |
104.9 |
|
|
103.5 |
|
1.4 |
% |
After tax |
|
|
20.7 |
|
|
20.6 |
|
0.5 |
% |
|
|
82.9 |
|
|
81.7 |
|
1.5 |
% |
N.M. - Not meaningful. |
||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207363192/en/
Heather J. Wietzel, Vice President, Investor Relations
217-788-5144 | investorrelations@horacemann.com
Source: Horace Mann Educators Corporation
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