Company Overview - Horace Mann Educators Corporation (HMN) is experiencing significant attention from investors due to high implied volatility in its options market, particularly the Feb 21, 2025 $35.00 Call option [1] Implied Volatility Insights - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant price change for Horace Mann Educators shares [2] - High implied volatility may also signal an upcoming event that could lead to a substantial rally or sell-off [2] Analyst Sentiment - Currently, Horace Mann Educators holds a Zacks Rank 2 (Buy) within the Insurance-Multi line industry, which is in the top 28% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while two have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $1.10 to $0.99 per share [3] Trading Strategy Implications - The high implied volatility may indicate a developing trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility to capture decay [4] - Seasoned traders typically hope that the underlying stock does not move as much as initially expected by expiration [4]

Company Overview - Horace Mann Educators Corporation (HMN) has a market capitalization of $1.5 billion and is the largest multiline financial services company focused on America's educators, operating in a niche market with a diversified earnings model [2] - HMN's share price as of January 8, 2025, was $37.76, down 12.7% from its 52-week high of $43.26, indicating a short-term bearish trend as it trades below its 50-day simple moving average [1][3] Performance Metrics - HMN shares have gained 8.7% over the past three months, outperforming its industry's decrease of 2.3%, the sector's rise of 2.6%, and the S&P 500 composite's gain of 3.2% during the same period [5] - The Zacks average price target for HMN is $44 per share, suggesting a potential upside of 15.6% from the recent closing price [8] Growth Projections - The Zacks Consensus Estimate for HMN's 2025 earnings is $3.82, reflecting a year-over-year improvement of 11.1% on revenues projected to be about $10 billion, which is a 6.1% increase [9] - HMN aims to achieve a combined ratio of 97% to 98% in 2025, supported by solid retention and a well-planned approach to auto rate increases [10] Financial Health - The company estimates generating about $50 million in excess capital annually to support growth initiatives, share buybacks, and dividend increases, with free cash flow conversion remaining above 100% [13] - HMN's return on invested capital (ROIC) has improved but was 1.2% in the trailing 12 months, below the industry average of 2.4% [15] - The return on equity (ROE) for HMN was 8.1% in the trailing 12 months, also below the industry average of 15.3%, with a target of achieving double-digit ROE by 2025 [16] Valuation - HMN shares are trading at a discount with a book-to-price ratio of 1.2X compared to the industry average of 2.3X, earning a Value Score of A [17] - Despite being cheaper than the industry average, HMN shares are still considered expensive compared to competitors like Brighthouse Financial, Inc. and Lincoln National Corporation [17] Dividend Policy - HMN has increased dividends for 16 consecutive years at a compound annual growth rate (CAGR) of 14%, with a current dividend yield of 3.6%, higher than the industry average of 2.5% [19] - The company targets a 50% dividend payout over the medium term, indicating a strong commitment to returning value to shareholders [19] Market Position - The K-12 educator market presents substantial growth potential for HMN, which is well-positioned to capitalize on strategic initiatives aimed at profitability and maintaining a solid capital position [18]

| --- | --- | --- | --- | |-----------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Third Quarter 2024 | | | | | | | | | | Investor Presentation | | | | | | | | | | | | | | | November 4, 2024 | | | | | | | | | | | | | | | | | | | | | | | | Information as of September 30, 2024, unless otherwise noted Safe Harbor Statement and Non-GAAP Measures Certain statements included in this presentation, including those regarding our earnings outlook, expected catast ...

Financial Data and Key Metrics Changes - The company reported third quarter core earnings of $0.76 per diluted share, a 73% increase over the prior year, and revenues were up 9% [6][26] - The company maintains guidance for full year core EPS in the range of $2.40 to $2.70 [7][26] - The annualized return on equity for the third quarter was 8.4%, a 3.4-point improvement over the prior year [40] Business Line Data and Key Metrics Changes - In the Property & Casualty segment, net written premiums increased by 13% to $212 million, with a reported combined ratio of 97.9%, improving 19 points over the prior year [27] - The Auto segment saw net written premiums of $129 million, a 9% increase, with a combined ratio of 92.8%, improving 16 points [30] - The Life & Retirement segment contributed $14.8 million to core earnings, with a slight increase in net written premiums and contract deposits of $156 million [33] - The Supplemental & Group Benefits segment also contributed $14.8 million to core earnings, although this was a decrease of 6% due to a higher blended benefits ratio [35] Market Data and Key Metrics Changes - The company reported a 24% increase in Auto sales and a 14% increase in Life sales during the third quarter [15] - The number of covered lives in the employer-sponsored business grew to 842,000, a 2% increase over the prior year [19] Company Strategy and Development Direction - The company aims for a larger share of the education market and a sustainable double-digit shareholder return on equity by 2025 [7][24] - The company is focused on maintaining expense discipline while investing in growth opportunities [24][41] - The multiline approach is emphasized as a unique value proposition, enabling the company to support educators and achieve financial success [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of Hurricane Helene, estimating $22.5 million in damages for policyholders, but highlighted the effective response from the claims team [8] - The company expects to reach an inflection point in Auto policy growth by late 2025, with mid-single-digit rate increases anticipated to keep pace with loss trends [12][32] - Management expressed confidence in achieving target profitability across all segments by 2025 [42] Other Important Information - The company launched HMScore, an online platform to help educators build strong credit habits [23] - The company has repurchased 256,000 shares at a total cost of $8.5 million year-to-date [41] Q&A Session Summary Question: Core loss ratio within Personal Auto - Management discussed the strong prior year reserve releases and moderating loss trends, indicating that the company is a quarter or two behind larger competitors in rate changes [43][49] Question: Life & Retirement segment deposits - Management explained that the mix of business in the 403(b) and annuity spaces is consistent, with variable annuity deposits showing variability based on case size [53][55] Question: Growth opportunities in segments - Management highlighted increased agent productivity, web traffic, and digital tools as key factors for growth in both Auto and Supplemental & Group Benefits segments [59][61] Question: Commercial real estate and loan income stabilization - Management noted early signs of stabilization in commercial mortgage loans, with a good quarterly return and expectations for future gains [71][72] Question: Share purchases going into Q4 - Management indicated a clear line of sight to sustainable double-digit ROEs in 2025, prioritizing growth and maintaining a compelling dividend while being opportunistic with share buybacks [76][78]

Horace Mann (HMN) came out with quarterly earnings of $0.76 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this provider of auto and homeowners' insurance for teachers and other educators would post earnings of $0.18 per share when it actually produced earnings of $0.20, delivering a surprise of 11.11%.Over the last four quarters, the company has surpassed co ...

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 September 30, 2024 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) Delaware 37-0911756 (Sta ...

Exhibit 99.2 News release for immediate release Contact information: Brendan Dawal, Vice President, Investor Relations 217-670-8766 | investorrelations@horacemann.com Horace Mann reports third-quarter 2024 results SPRINGFIELD, Ill., November 4, 2024 — 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 ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Horace Mann (HMN) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are better than ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that ...