Core Insights - Horace Mann Educators Corporation reported a third-quarter net income of $58.3 million, equating to $1.40 per share, indicating strong financial performance [1] - The company achieved record core earnings of $56.6 million, or $1.36 per share, showcasing its robust operational efficiency [1] Financial Performance - For the three months ended September 30, 2025, the diversified business model contributed to significant profitability [1] - The reported figures reflect a solid growth trajectory within the financial services sector, particularly focused on serving educators [1]

Group 1: Chevron - Chevron has a long history of increasing dividends, having raised them for 38 consecutive years [3] - The latest dividend hike on January 31 increased the quarterly payout by 5% to $1.71 per share, resulting in an annual figure of $6.84 per share [3] - The current dividend yield for Chevron is 4.37% [3] - As of June 30, Chevron's annual revenue was $187.74 billion, with Q2 2025 revenues reported at $44.82 billion, which was below the consensus estimate of $45.88 billion [4] - Chevron's EPS for Q2 2025 was $1.77, surpassing the consensus estimate of $1.70 [4] Group 2: Robert Half - Robert Half has consistently raised its dividends for the last 20 years [6] - The most recent dividend increase on February 12 raised the quarterly payout from $0.53 to $0.59 per share, equating to an annual figure of $2.36 per share [6] - The current dividend yield for Robert Half stands at 8.06% [6] - As of June 30, Robert Half's annual revenue was $5.57 billion, with Q3 2025 revenues reported at $1.35 billion, meeting Street estimates [7] Group 3: Horace Mann Educators - Horace Mann Educators provides various insurance products and financial services specifically designed for educators and their families [7]

Core Points - Horace Mann is the largest multiline financial services company focused on supporting educators and community service professionals in achieving lifelong financial success [1] - The company announced the winners of its 2025 Ready. Set. Inspire. Classroom Makeover Sweepstakes, with Lotus Elementary School in Spring Grove, Illinois winning the grand prize [1] - The grand prize includes a $25,000 classroom makeover, allowing the school to furnish a classroom with new furniture and innovative educational tools [1]

Core Points - Horace Mann Educators Corporation plans to release its third-quarter 2025 results on November 4, after market close [1] - The quarterly news release, investor supplement, and investor presentation will be available on the company's website [1] - Management will host a conference call on November 5 at 11:00 AM Eastern Time to discuss the financial results [1] - Investors can access the call via webcast [1]

Core Viewpoint - AM Best has assigned a Long-Term Issue Credit Rating of "bbb" (Good) to Horace Mann Educators Corporation's recently issued $300 million senior unsecured notes, indicating a stable outlook for the company [1]. Group 1: Credit Rating and Financial Instruments - The newly issued senior unsecured notes amount to $300 million with a coupon rate of 4.7%, maturing in October 2030 [1]. - The outlook for the assigned Credit Rating is stable, reflecting the company's current financial health [1]. - Existing ratings of Horace Mann and its subsidiaries remain unchanged, indicating consistent performance in the market [1]. Group 2: Use of Proceeds - Horace Mann plans to utilize the net proceeds from the issuance of the notes for general corporate purposes, which may include operational expenses or strategic investments [1].

Core Points - Horace Mann Educators Corporation announced the pricing of $300,000,000 aggregate principal amount of 4.700% Senior Notes due 2030 [1] - The transaction is expected to close on September 26, 2025, subject to customary closing conditions [1] - The net proceeds from the issuance of the Notes will be used for general corporate purposes, including repayment [1]

Group 1 - Horace Mann Educators Corporation is the largest company in the US dedicated to serving educators, founded in 1945 by two teachers [1] - The company operates within a free-market system, where financial markets are considered efficient, reflecting the real current value of most stocks [1] - Investment opportunities may arise from stocks that are less widely followed or those that do not accurately reflect existing market opportunities [1]

Core Viewpoint - Horace Mann (HMN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for Horace Mann suggests an improvement in the company's underlying business, which should encourage investors to drive the stock price higher [5]. - Over the past three months, the Zacks Consensus Estimate for Horace Mann has increased by 6.3%, with expected earnings of $4.14 per share for the fiscal year ending December 2025, indicating no year-over-year change [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Horace Mann in the top 20% of Zacks-covered stocks, suggesting it has superior earnings estimate revisions and potential for market-beating returns in the near term [10].

Company Overview - Horace Mann (HMN) is based in Springfield and operates in the Finance sector, with a year-to-date share price change of 12.44% [3] - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 3.17%, which is significantly higher than the Insurance - Multi line industry's yield of 1.92% and the S&P 500's yield of 1.53% [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 stands at 31%, indicating that the company paid out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, HMN anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $4.14 per share, representing a 30.19% increase from the previous year [5] - The company is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [6]

Financial Data and Key Metrics Changes - The company reported second quarter core earnings per share of $1.6, a nearly threefold increase over the prior year [5] - Net premiums and contract charges earned were up 8%, with total revenues increasing by 6% [5][22] - Core return on equity for the quarter was 11.3%, bringing the trailing twelve-month core return on equity to 12.6% [5][22] Business Segment Data and Key Metrics Changes - In the Property and Casualty segment, core earnings were $17 million, a $25 million improvement from the segment loss recorded a year ago [7][23] - The combined ratio for Property and Casualty improved to 97%, a nearly 15-point improvement over the prior year [7][23] - In the Life and Retirement segment, core earnings doubled compared to last year, driven by higher net investment income returns [8][24] - Individual Supplemental and Group Benefits segment contributed $13 million to core earnings, with net written premiums of $66 million, a 3% increase over the prior year [26] Market Data and Key Metrics Changes - The company experienced a 10% increase in auto sales year to date [15] - Individual Supplemental sales reached $6 million in the second quarter, a 43% increase over the prior year [16][27] - The company reported strong policyholder retention rates, with auto retention at nearly 84% and property retention at 89% [24] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustained 12% to 13% core return on equity by 2028 [11] - Strategic investments are being made in sales force growth and marketing tools to enhance brand awareness and lead generation [11][12] - The company is focused on building partnerships and providing solutions to educators, enhancing brand loyalty and access to schools [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained profitable growth and shareholder value creation [19][32] - The company is operating from a position of strength, with a strong competitive advantage and confidence in market-leading growth [19] - Management acknowledged the challenges of predicting catastrophe losses but emphasized a prudent approach based on historical averages [21][39] Other Important Information - The company has authorized an additional $50 million for share repurchase, with $13 million returned to shareholders year to date [17][31] - The company continues to see strong results from its core fixed income portfolio, with new money yields exceeding book yield for the fourteenth consecutive quarter [30] Q&A Session Summary Question: Insights on the P&C segment and catastrophe load guidance - Management discussed the favorable underlying results and the approach to catastrophe guidance based on historical averages, emphasizing the unpredictability of weather events [34][38][42] Question: Growth expectations in auto and home insurance - Management indicated that while there is increased competition, they expect retention to stabilize and new business sales momentum to continue, leading to growth in policy counts [45][46][50] Question: Volumes in individual supplemental and Group Benefits - Management highlighted strong sales growth in individual supplemental driven by increased productivity and a favorable outlook for Group Benefits, particularly in the upcoming quarters [58][64][66] Question: Outlook for PIF growth and educator customer base - Management confirmed that the majority of their business remains focused on educators, with ongoing efforts to explore new channels while maintaining a strong educator-centric approach [69][70]