Company Overview - Horace Mann (HMN) is headquartered in Springfield and has experienced a price change of 3.44% this year [3] - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 3.45%, which is significantly higher than the Insurance - Multi line industry's yield of 1.8% and the S&P 500's yield of 1.52% [3] Dividend Performance - The current annualized dividend of Horace Mann is $1.40, reflecting a 2.9% increase from the previous year [4] - Over the past 5 years, the company has increased its dividend 5 times, achieving an average annual increase of 3.20% [4] - The current payout ratio is 38%, indicating that the company paid out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate predicts earnings of $3.99 per share, representing a 25.47% increase from the previous year [5] - The company is positioned as a strong dividend play, appealing to income investors due to its solid earnings growth expectations [6] Investment Considerations - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses often do not offer dividends [6] - Horace Mann is considered a compelling investment opportunity, not only for its strong dividend yield but also due to its current Zacks Rank of 3 (Hold) [6]

Core Insights - The Zacks Insurance industry is positioned for growth due to improved pricing, prudent underwriting, and exposure growth [1] - The insurance industry has outperformed the Finance sector and the S&P 500 composite in year-to-date returns [2] Industry Performance - The insurance industry has returned 5.9% year-to-date, surpassing the Finance sector's growth of 4.6% and the S&P 500's appreciation of 0.8% [2] Market Trends - Global commercial insurance rates decreased by 3% in Q1 2025, marking the third consecutive quarterly decline after seven years of increases [3][8] - Despite recent pricing pressures, gross premiums are projected to grow sixfold to exceed $722 billion by 2030 [3][5][8] Catastrophe Losses - Catastrophe losses are driving policy renewal rates, with a reported 3% rise in commercial insurance rates and a 4.9% increase in personal lines in Q1 2025 [5] - Estimated insurance market losses from recent fires in Los Angeles range between $35 billion and $45 billion [4] Technological Investments - Insurers are heavily investing in technology to enhance margins, efficiency, and operational scale, with a projected $4.7 billion in annual global premiums from AI-related insurance by 2032 [11] - The use of advanced technologies like blockchain and AI is expected to significantly reduce costs and improve operational efficiencies [11] Mergers and Acquisitions - A solid capital level supports insurers in pursuing strategic mergers and acquisitions, with the insurance deals market expected to be active in 2025 [10] - Companies engaging in M&A deals valued over $100 million have outperformed the wider market by 1.5 percentage points [10] Growth Stocks - Companies like EverQuote, Horace Mann Educators, Root, and HCI Group are identified as potential growth stocks due to their solid fundamentals and growth prospects [12][14] - EverQuote is leveraging exclusive data assets and technology for long-term growth, with earnings estimates suggesting significant year-over-year growth [15][16] - Horace Mann Educators is expected to benefit from niche focus and improved product offerings, with strong earnings growth projected [17][18] - Root is positioned for growth through its direct-to-consumer model and mobile applications, with substantial revenue and earnings growth estimates [20][21] - HCI Group is engaged in diverse business activities, with strong growth projections for revenues and earnings [22][23]

Core Viewpoint - Horace Mann (HMN) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for Horace Mann indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - Analysts project that Horace Mann will earn $4.01 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 26.1% [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [8][9].

Summary of Horace Mann Educators (HMN) 2025 Investor Day Company Overview - **Company**: Horace Mann Educators (HMN) - **Industry**: Financial services focused on educators, including insurance and retirement solutions - **Event**: 2025 Investor Day held on May 13, 2025 Key Points and Arguments 1. **Company History and Future Outlook**: Horace Mann has a rich history of 80 years serving educators, which positions the company well for future growth. The company aims to leverage its experience to drive sustainable, profitable growth in the coming years [6][7][8] 2. **Target Market**: The company currently services approximately 1 million out of 8 million public K-12 educators in the U.S., with a broader potential market of around 14 million educators. This indicates significant growth opportunities [17][18] 3. **Growth Strategy**: The growth strategy is centered around three levers: - **Do More of What Works**: Increase penetration in existing markets where the company already has a presence [18] - **Expand Geographically**: Enter new districts and scale operations quickly [18] - **Test and Learn**: Explore new segments and refine approaches based on market feedback [18] 4. **Financial Performance**: The company reported strong earnings in 2024, with a return on equity (ROE) exceeding 10%. The first quarter of 2025 also set records for the company, indicating robust financial health [19][20] 5. **Product Diversification**: The multi-line model of Horace Mann provides earnings diversification, reducing volatility and enhancing overall financial stability. The company offers tailored products for educators, including auto and homeowner's insurance, life insurance, and retirement plans [11][20] 6. **Customer Engagement**: The company emphasizes understanding educators' unique needs, such as student loan debt, and provides solutions that go beyond traditional product offerings. This includes access to state and federal programs for debt reduction [14][15] 7. **Innovative Marketing Strategies**: Horace Mann utilizes integrated omnichannel marketing strategies, allowing educators to engage through various platforms, including local agents, call centers, and digital channels. This flexibility enhances customer experience and satisfaction [63][64] 8. **Payroll Integration**: The company has established over 45,000 payroll integrations with schools, facilitating automatic payments for policies. This system increases retention and participation rates among educators [72][76] 9. **Technological Advancements**: The launch of the in-house CRM system, Catalyst, enhances lead generation and agent efficiency, contributing to overall growth [77][78] 10. **Market Positioning**: Horace Mann positions itself as a leading financial service provider for educators, focusing on delivering value through tailored products and exceptional service [44][92] Additional Important Content - **Economic Resilience**: The company has navigated various economic cycles successfully, indicating a strong foundation and adaptability in changing market conditions [23] - **Regulatory Preparedness**: Horace Mann is well-prepared to work with educators regardless of regulatory changes, leveraging strong state and local relationships [25][26] - **Commitment to Educators**: The company emphasizes its dedication to supporting educators, which is reflected in its product offerings and community engagement initiatives [45][46] This summary encapsulates the key insights and strategic directions discussed during the Horace Mann Educators 2025 Investor Day, highlighting the company's commitment to growth and service excellence in the education sector.

Financial Performance & Goals - Horace Mann achieved a core earnings per share of $3.40 and a core return on equity of 9.4% in 2024 [34] - The company is on track to deliver record full-year core earnings in 2025, with Q1 core earnings per share at $1.07 and a core return on equity of 10.6% [36] - Horace Mann aims for a 10%+ core ROE in 2025 and a 12%-13% core ROE as a 3-year goal [149, 162] - The company anticipates strong free cash flow generation of +75% [149] - Horace Mann projects core earnings per share guidance of $3.85 to $4.15 [149] Market Position & Strategy - Horace Mann is the largest multiline financial services company focused on America's educators [9, 14] - The company has $14.4 billion in assets and $1.6 billion in net premium and contract deposits for 2024 [13] - Horace Mann currently serves almost half of K-12 school locations in the United States [13] - The company estimates it should capture ~2-4% of HHs, with HM's annual share of P&C switchers between 45,000 – 90,000 [62] Growth Initiatives - Horace Mann aims to improve penetration of educator households they currently access, gain access to educator households where they have no local agent footprint, and explore adjacent markets [31, 96] - The company plans to leverage a company-led entry model (B2B2C) to accelerate growth in new territories [64, 122] - Horace Mann intends to double the number of local agents to better meet client needs [103]

Horace Mann Educators (HMN) Q1 2025 Earnings Call May 07, 2025 12:00 PM ET Company Participants Brendan Dawal - VP Financial Planning & Analysis, Investor RelationsMarita Zuraitis - President and Chief Executive OfficerRyan Greenier - Executive Vice President and CFOWilma Burdis - DirectorStephen McAnena - EVP & Chief Operating Officer Conference Call Participants John Barnidge - Managing Director & Senior Research Analyst Operator Good day, and welcome to the Horace Mann Educator First Quarter twenty twent ...

Horace Mann Educators (HMN) Q1 2025 Earnings Call May 07, 2025 12:00 PM ET Speaker0 Good day, and welcome to the Horace Mann Educator First Quarter twenty twenty five Investors Call. All participants will be in listen only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Brendan DeWall, Vice President, Investor Relations. Please go ahead. Speaker1 Thank you. Welcome to Horace Mann's disc ...

Company Overview - Horace Mann (HMN) is based in Springfield and operates in the Finance sector, with a year-to-date share price change of 6.07% [3] - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 3.36%, which is significantly higher than the Insurance - Multi line industry's yield of 1.68% and the S&P 500's yield of 1.62% [3] Dividend Performance - The current annualized dividend of Horace Mann is $1.40, reflecting a 2.9% increase from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 3.18% [4] - The current payout ratio stands at 43%, indicating that the company distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Horace Mann's earnings in 2025 is projected at $3.80 per share, with an expected increase of 19.50% compared to the previous year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While tech start-ups and high-growth companies rarely offer dividends, established companies like Horace Mann are more likely to provide consistent payouts [7] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating it is a compelling investment opportunity, particularly for income investors [7]

The historical and forward-looking financial information contained in this presentation includes measures marked with an asterisk (*) the first time they are presented within this document that are not based on accounting principles generally accepted in the United States of America (non-GAAP) such as core earnings, core earnings per share, and adjusted book value per share. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 in our most recent Form 8-K f ...

Core Insights - Horace Mann (HMN) reported quarterly earnings of $1.07 per share, exceeding the Zacks Consensus Estimate of $0.88 per share, and up from $0.60 per share a year ago [1] - The earnings surprise for the quarter was 21.59%, and the company has surpassed consensus EPS estimates three times over the last four quarters [2] - Revenues for the quarter were $416.4 million, slightly missing the Zacks Consensus Estimate by 0.89%, but up from $386 million year-over-year [3] Earnings Performance - The company had a significant earnings surprise of 63.64% in the previous quarter, where actual earnings were $1.62 per share against an expectation of $0.99 [2] - The current consensus EPS estimate for the upcoming quarter is $0.58, with expected revenues of $431.4 million, and for the current fiscal year, the estimate is $3.80 on $1.73 billion in revenues [8] Stock Performance - Horace Mann shares have increased by approximately 7.6% since the beginning of the year, contrasting with a decline of 3.9% in the S&P 500 [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Outlook - The Insurance - Multi line industry, to which Horace Mann belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]