Financial Performance - Total revenues for Q4 2024 were $409.0 million, a 1.5% increase from $402.9 million in Q4 2023; full-year revenues rose 6.9% to $1,595.2 million from $1,491.9 million[2] - Net income for Q4 2024 was $38.2 million, down 3.3% from $39.5 million in Q4 2023; however, full-year net income surged 128.4% to $102.8 million from $45.0 million[2] - Core earnings for Q4 2024 reached $67.6 million, a 93.7% increase from $34.9 million in Q4 2023; full-year core earnings increased 107.1% to $132.1 million from $63.8 million[2] Ratios and Metrics - The Property & Casualty combined ratio improved to 97.9% for the full year, a 15-point improvement over the previous year[5] - Core ROE for the last twelve months was 8.8%, an increase of 4.5 percentage points from the previous year[2] Premiums and Charges - Net premiums and contract charges earned increased by 8% for the year and 10% for the quarter[5] Shareholder Value - The company reported a book value per share of $31.51, up 9.5% from $28.78 in the previous year[2] - Adjusted book value per share was $37.54 at year-end, reflecting a 3.4% increase from $36.29[2] - Adjusted core EPS for 2025 is estimated to be in the range of $3.60 to $3.90, with expectations of double-digit shareholder return on equity[6] Non-Core Costs - The company recorded $15.7 million in after-tax costs related to non-core legacy commercial liability policies in Q4 2024[3]

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 ...

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 ...

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 ...

Horace Mann Educators Corporation (HMN) shares are trading at a discount to the Zacks Multiline Insurance industry. Its forward price-to-earnings of 1.21X is lower than the industry average of 2.78X. This company has a market capitalization of $1.5 billion. The average volume of shares traded in the last three months was 0.2 million. Image Source: Zacks Investment Research The stock, however, remains expensive compared with other players like Brighthouse Financial, Inc. (BHF) and Lincoln National Corporatio ...

GRAND FORKS, N.D. and ROCHESTER, Minn., Sept. 26, 2024 (GLOBE NEWSWIRE) -- Alerus Financial Corporation (Nasdaq: ALRS) and its wholly owned subsidiary, Alerus Financial, National Association, (together, "Alerus") announced today they have received all regulatory approvals necessary to complete the previously announced acquisition of HMN Financial, Inc. (Nasdaq: HMNF) and its wholly owned subsidiary, Home Federal Savings Bank (together, "Home Federal"). The merger was unanimously approved by the board of dir ...