| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Second Quarter 2022 | | | | | | | | | | Investor Presentation | | | | | | | | | | | | | | | August 4, 2022 | | | | | | | | | | | | | | Information as June 30, 2022, unless otherwise noted Safe Harbor Statement and Non-GAAP Measures Certain statements made in this presentation should be considered forward-looking as defined in the Private Securities Litigation Reform Act o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-10890 HORACE MANN EDUCATORS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Financial Data and Key Metrics Changes - The company reported second-quarter core results near breakeven, with a minor upward revision to full-year core EPS guidance to a range of $2.15 to $2.35 [7][36] - The expected return on equity (ROE) for 2023 is projected to be in the high single digits, aiming for a sustainable double-digit ROE in the long term [8][36] - Core loss for the Property & Casualty (P&C) segment was $25.4 million, significantly impacted by catastrophe losses and inflation [37] Business Line Data and Key Metrics Changes - Core earnings for the Worksite segment increased by 14% year-over-year, with voluntary supplemental sales growing by 83% compared to the previous year [20] - Life and Retirement segment core earnings rose by 4.8%, with adjusted core earnings up 24.4% [43] - The P&C segment saw average written premiums increase by 1.6% for auto policies and 7.5% for property [37] Market Data and Key Metrics Changes - Catastrophe losses for the quarter were $45.7 million, contributing significantly to the combined ratio, which was well above the 10-year average [38] - The company anticipates average premiums for property to rise to the mid-teens over the next 12 to 18 months due to ongoing inflation and weather-related factors [15][111] Company Strategy and Development Direction - The company is focused on expanding market share and enhancing shareholder value through a multi-year PDI strategy, which includes product enhancement and infrastructure modernization [18] - The acquisition of Madison National Life has allowed the company to better serve educators with a broader range of products [18] - The company aims to leverage its dual division structure (retail and worksite) to respond effectively to the needs of educators and school districts [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that external events, including high catastrophe storm activity and inflation, have impacted financial performance but expressed confidence in long-term growth [7][17] - The company remains committed to its mission of serving educators and is optimistic about the upcoming school year, anticipating increased engagement with educators [30][88] Other Important Information - The company has returned capital to shareholders through dividend increases and share repurchases, with $24 million used to repurchase shares in the first seven months of the year [31][62] - The transition to new LDTI accounting guidance is expected to reduce shareholders' equity by $400 million to $500 million, but the company plans to provide adjusted equity figures excluding these impacts [54][55] Q&A Session Summary Question: Impact of inflation on catastrophe loss ratio - Management indicated that while inflation is a concern, their planning includes considerations for increased material costs, and they do not expect a significant increase in catastrophe losses for the second half of the year [66][67][70] Question: Adverse development in auto reserves - Management explained that the increase in auto reserves was due to inflationary pressures affecting claims from previous accident years, with a $12 million strengthening of auto BI reserves [78][79] Question: Marketing strategies for the upcoming school year - Management reported strong early back-to-school activity, with metrics indicating a return to pre-pandemic levels of engagement with educators [88][90] Question: Pricing program and rate increases - Management discussed anticipated rate increases in the high single to low double-digit range for auto premiums, with property premiums expected to rise to mid-teens levels over the next 12 to 18 months [108][111]

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Second Quarter 2022 | | | | | | | | | | Investor Presentation | | | | | | | | | | | | | | | August 4, 2022 | | | | | | | | | | | | | | Information as June 30, 2022, unless otherwise noted Safe Harbor Statement and Non-GAAP Measures Certain statements made in this presentation should be considered forward-looking as defined in the Private Securities Litigation Reform Act o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-10890 HORACE MANN EDUCATORS CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Horace Mann Educators Corporation (NYSE:HMN) Q1 2022 Earnings Conference Call May 6, 2022 11:00 AM ET Company Participants Marita Zuraitis – President and Chief Executive Officer Bret Conklin – Executive Vice President and Chief Financial Officer Mark Desrochers – Senior Vice President, Head of P&C and Corporate Chief Actuary Ryan Greenier - Chief Investment Officer & Senior Vice President Heather Wietzel – Vice President of Investor Relations Conference Call Participants Gary Ransom – Dowling & Partners Ma ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------|-------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Creating Shareholder Value | | | | | | | | | | | | | | | | | | | | Raymond James Annual Institutional Investors Conference | | | | | | | | | | March 8, 2022 Marita Zuraitis, President and CEO | | | | | | | | | | Bret Conklin, Executive Vice President and CFO | | | | | | ...

Financial Performance - Premiums and contract charges earned for the year ended December 31, 2021, were $889.6 million, with premiums written and contract deposits totaling $1.3 billion[24]. - Net income for the year ended December 31, 2021, was $142.8 million, and total assets reached $14.4 billion[24]. - Direct premiums earned in 2021 amounted to $622.1 million for Property & Casualty and $625.1 million for life insurance, before reinsurance[98]. - The top five states by direct premiums and contract deposits in 2021 were California (10.2%), Texas (7.5%), North Carolina (7.0%), Minnesota (5.4%), and Pennsylvania (5.1%)[97]. Market Opportunities - The company serves approximately 1 million households, with about 80% of customers being educators, indicating a significant market opportunity[29]. - The acquisition of Madison National on January 1, 2022, enhances the company's offerings in employer-paid and voluntary benefits for educators[20]. - The company aims to address educator recruitment and retention challenges by offering a full suite of benefits, as educators generally earn less than their private-sector counterparts[33]. Infrastructure and Technology - The company has implemented a multi-year effort to upgrade its infrastructure, including the Guidewire platform, which has been launched in seven states, covering nearly 40% of total Property & Casualty premiums written[41]. - The company completed several transactions since July 2019, including acquiring NTA and Madison National, and reinsuring a $2.9 billion block of legacy annuity business[31]. Insurance Products and Services - The company offers fixed indexed annuity products linked to the S&P 500 Index and the Dow Jones Industrial Average[80]. - The company has entered the supplemental market since July 2019, acquiring NTA to offer supplemental insurance products[71]. - The company offers a combination product called Life Select, which allows for flexible coverage tailored to customers' needs[92]. Risk Management - The company maintains catastrophe excess of loss reinsurance coverage, providing 95% coverage for losses above a $25.0 million retention per occurrence, up to $175.0 million[62]. - The company reinsured each loss above a retention of $1.0 million up to $5.0 million for property coverages in 2021[67]. - The company recognizes climate change as a growing concern and is actively managing climate risks that affect its stakeholders[123]. - The Enterprise Risk Management (ERM) Committee oversees risk assessments and mitigation strategies, ensuring alignment with corporate objectives[131]. Investment Strategy - The investment strategy focuses on generating income to support product liabilities, primarily through investment-grade fixed maturity securities[104]. - Total investments as of December 31, 2021, amounted to $7,449.5 million, with a carrying value of $5,793.0 million and an amortized cost of $7,015.6 million[108]. - The investment portfolio consisted of 80% publicly traded securities, totaling $5,960.6 million, with 71.6% classified as investment grade[108]. Regulatory Environment - The insurance industry is highly regulated, and changes in regulations could affect the company's ability to operate profitably and obtain necessary regulatory approvals[202]. - Regulatory changes, including potential increases in corporate tax rates, could significantly impact the company's financial results and growth prospects[200]. - The Dodd-Frank Act has introduced significant regulatory changes that may increase compliance costs and affect the products and services offered by the company[212]. Operational Risks - The company faces operational risks from large-scale pandemics, terrorism, and military actions, which could adversely affect sales, liquidity, and operating results[178]. - The COVID-19 pandemic has caused significant economic damage, impacting the company's ability to conduct business and affecting financial condition and results of operations[179]. - The company has experienced increased competition in hiring and retaining employees, which is critical for maintaining optimal staffing levels and fostering an inclusive culture[187]. Catastrophe and Climate Risks - Catastrophe losses for 2021 totaled $78.2 million, with significant events including Hurricane Ida causing $24.0 million in losses[57]. - Increased frequency and severity of weather events have led to higher insurance claims and costs, impacting the company's financial results[125]. - Climate change poses risks that may adversely affect the company's financial position, results of operations, and cash flows due to increased frequency of weather-related catastrophes[181]. Financial Stability - The company maintains loss reserves for estimated ultimate liability for losses and loss adjustment expenses, which may prove inadequate, potentially affecting financial condition and cash distribution[151]. - A sustained period of low interest rates could negatively affect net interest margins from fixed annuity and life insurance products, with historically low yields on new investments[156]. - The company’s insurance subsidiaries maintained statutory capital and surplus above required levels as of December 31, 2021[115].

Financial Data and Key Metrics Changes - The company reported fourth quarter core earnings of $0.97 and full year 2021 core earnings of $3.59 per diluted share, marking the second consecutive year of record earnings with a core return on equity exceeding 10% [7][39]. - The guidance for 2022 EPS is projected to be in the range of $3.45 to $3.65, with ROE near 10% [35][62]. Business Line Data and Key Metrics Changes - The Property & Casualty (P&C) segment reported premiums of $608 million for 2021, with a combined ratio of 99.9% in the fourth quarter, despite catastrophe losses being nearly double that of the previous year [41][43]. - The Supplemental segment's full year core earnings were $46 million, up 7% from the prior year, with fourth quarter premiums contributing $31 million and core earnings of $12 million [48][49]. - The Retirement segment saw annuity contract deposits increase by 5% for the year, with core earnings excluding DAC unlocking rising by 90% [51]. Market Data and Key Metrics Changes - The company serves approximately 1 million households, primarily educators, with a focus on expanding its market share in the education sector [20][21]. - The auto loss ratio for the fourth quarter was reported at 79.3%, an increase of 11.9 points compared to the prior year, attributed to increased miles driven and claims frequency [43][44]. Company Strategy and Development Direction - The company aims for 10% average annual EPS growth and sustained double-digit ROEs, supported by a strategic roadmap focused on enhancing product offerings and distribution [7][10]. - The acquisition of Madison National Life is expected to strengthen the company's value proposition and expand growth opportunities in the education market [15][18]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong results in 2022, despite challenges such as higher auto loss ratios and inflationary pressures [13][35]. - The company anticipates steady progress in supplemental sales and a focus on cross-selling opportunities to enhance customer retention [50][29]. Other Important Information - The company has been included in the Bloomberg Gender Equality Index for four consecutive years, reflecting its commitment to diversity and inclusion [36]. - Corporate expenses in the fourth quarter were slightly above normal due to costs associated with the Madison National acquisition, with plans for strategic spending in 2022 [59][100]. Q&A Session Summary Question: Discussion on rate versus loss trend in personal auto - Management acknowledged the return of auto loss costs to pre-pandemic levels and discussed the timing of corrective actions to address severity and inflationary pressures [74][75]. Question: Update on expense structure and technology transformation - Management highlighted their effective expense management and strategic spending plans, including modernization efforts and the integration of Madison National [97][100]. Question: Impact of agent retention amid industry changes - Management reported steady agency count and effective recruiting efforts, indicating resilience despite external pressures [107]. Question: Clarification on loss ratios for voluntary and employer-paid products - Management provided insights into the mix of new sales between voluntary and employer-paid products, indicating a shift towards individual products in 2022 [112].

| --- | --- | --- | |-----------------------|-------|-------| | | | | | | | | | | | | | Full-year 2021 | | | | | | | | Investor Presentation | | | Information as December 31, 2021, unless otherwise noted Safe Harbor Statement and Non-GAAP Measures Certain statements made in this presentation should be considered forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements are related to our in ...