Horace Mann reports third-quarter 2024 results

Rhea-AI Summary

Horace Mann Educators (NYSE:HMN) reported strong third-quarter 2024 results with net income of $34 million ($0.83 per share) and core earnings of $31 million ($0.76 per share). Total revenue increased 9% for the quarter, with net premiums and contract charges also up 9%. The Property & Casualty combined ratio improved to 97.9%, showing a 19-point improvement over the prior year. The company maintained its full-year 2024 core EPS guidance of $2.40-$2.70. Book value per share reached $31.60, while adjusted book value per share was $36.89 at quarter end.

The company reported double-digit sales growth in Auto, Life, and Individual Supplemental lines of business, demonstrating progress in their market expansion strategy.

Positive

• Net income increased 193.2% to $34.3 million compared to prior year
• Total revenues grew 8.8% to $412.1 million
• Core earnings rose 71% to $31.3 million
• Property & Casualty combined ratio improved by 19 points
• Book value per share increased 22.8% to $31.60

Negative

• 18 points of catastrophe losses in Property & Casualty segment

Insights

Financial Analyst

Strong third-quarter performance with $34.3 million in net income, up 193.2% year-over-year, demonstrates robust operational execution. Revenue growth of 8.8% and improved Property & Casualty combined ratio of 97.9% signal effective risk management and pricing strategies. Core earnings per share of $0.76 shows 72.7% improvement, indicating strong underlying business fundamentals.

Book value metrics are particularly encouraging, with reported book value per share at $31.60, up 22.8% YoY. The maintained full-year guidance of $2.40-$2.70 core EPS suggests management's confidence in sustainable growth trajectory. The company's focus on the education market niche provides defensive characteristics, while improved P&C metrics indicate successful portfolio management despite catastrophe losses.

SPRINGFIELD, Ill.--(BUSINESS WIRE)-- Horace Mann Educators Corporation (NYSE:HMN), the largest multiline financial services company focused on helping America’s educators and a core small-cap growth and value equity in the Financials sector, today reported financial results for the three and nine months ended September 30, 2024:

• Diversified business delivered third-quarter net income of $34 million, or $0.83 per share, and core earnings* of $31 million, or $0.76 per share, with reported book value of $31.60 and adjusted book value* of $36.89 at quarter end
• Total revenue rose 9% for the quarter, with net premiums and contract charges earned up 9%
• Property & Casualty combined ratio of 97.9% improved 19 points over prior year; includes 18 points of catastrophe losses partially offset by 7 points of favorable prior years’ reserve development
• Maintaining guidance, we continue to expect full-year 2024 core EPS in range of $2.40-$2.70

($ in millions, except per share amounts)		Three Months Ended September 30,										Nine Months Ended September 30,
			2024			2023			% Change				2024				2023			% Change
Total revenues		$	412.1		$	378.7			8.8	%		$	1,186.2			$	1,089.0			8.9	%
Net income			34.3			11.7			193.2	%			64.6				5.5			N.M.
Net investment gains (losses), after tax			3.0			(6.6	)		145.5	%			0.1				(23.4	)		100.4	%
Core earnings*			31.3			18.3			71.0	%			64.5				28.9			123.2	%
Adjusted core earnings*			34.4			20.3			69.5	%			71.5				34.2			109.1	%
Per diluted share:
Net income			0.83			0.28			196.4	%			1.56				0.13			N.M.
Net investment gains (losses), after tax			0.07			(0.16	)		143.8	%			—				(0.57	)		N.M.
Core earnings per diluted share*			0.76			0.44			72.7	%			1.56				0.70			122.9	%
Adjusted core earnings per diluted share*			0.83			0.49			69.4	%			1.72				0.83			107.2	%
Book value per share													31.60				25.74			22.8	%
Adjusted book value per share*													36.89				35.57			3.7	%
Tangible book value per share*													31.62				29.99			5.4	%
Core ROE - LTM													6.7	%			1.8	%		4.9 pts
N.M. - Not meaningful.
* These measures are not based on accounting principles generally accepted in the United States of America (non-GAAP). They are reconciled to the most directly comparable GAAP measures in the Appendix to the Investor Supplement. An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the Company’s reports filed with the Securities and Exchange Commission.

“Our results clearly illustrate Horace Mann’s ability to empower all educators to achieve lifelong financial success, while also helping employers better attract and retain employees by providing more comprehensive benefits,” said Horace Mann President & CEO Marita Zuraitis. “The diversification of our business reflects our strategy to deliver consistent and reliable value to shareholders with a solid balance sheet and a compelling dividend.

“We are confident we will deliver on 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. “Third-quarter results, including double-digit sales growth in our Auto, Life and Individual Supplemental lines of business, as well as continued progress toward restoring full-year Property & Casualty segment profitability, demonstrate we are executing on our plan.”

Simultaneous with this release, the Quarterly Results page of investors.horacemann.com has been updated to include the third-quarter Quarterly Report on Form 10-Q, investor supplement and investor presentation. These include details on company and segment financial performance, company guidance and outlook.

Quarterly webcast

Horace Mann’s senior management will discuss the company’s third-quarter financial results with investors on November 5, 2024 at 1:00 p.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 multiline 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 Springfield, Illinois. For more information, visit horacemann.com.

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 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.

Information contained in this news release include measures which are based on methodologies other than accounting principles generally accepted in the United States of America (GAAP). Reconciliations of non-GAAP measures to the closest GAAP measures are contained in the Appendix to the Investor Supplement and additional descriptions of the non-GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to Horace Mann’s SEC filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241104978972/en/

Brendan Dawal, Vice President, Investor Relations

217-670-8766 | investorrelations@horacemann.com

Source: Horace Mann Educators Corporation

FAQ

What was Horace Mann's (HMN) net income for Q3 2024?

Horace Mann reported a net income of $34.3 million, or $0.83 per share, for the third quarter of 2024.

What is Horace Mann's (HMN) full-year 2024 core EPS guidance?

Horace Mann maintained its full-year 2024 core EPS guidance in the range of $2.40-$2.70.

How much did Horace Mann's (HMN) total revenue grow in Q3 2024?

Horace Mann's total revenue grew 8.8% to $412.1 million in the third quarter of 2024.

What was Horace Mann's (HMN) Property & Casualty combined ratio in Q3 2024?

Horace Mann's Property & Casualty combined ratio was 97.9%, showing a 19-point improvement over the prior year.