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 | | | | | | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ 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 of incorpor ...

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 ...

PART I [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the company's financial position, operating results, and cash flows, highlighting asset growth and increased nine-month net income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section details the company's financial position, showing an increase in total assets and liabilities, with stable shareholders' equity Consolidated Balance Sheet Highlights ($ in millions) | Account | Sep 30, 2021 (Unaudited) | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$14,265.0** | **$13,471.8** | | Total Investments | $7,531.3 | $7,262.2 | | Separate Account Assets | $3,326.8 | $2,891.4 | | **Total Liabilities** | **$12,468.6** | **$11,681.7** | | Total Policy Liabilities | $7,270.5 | $7,148.6 | | Separate Account Liabilities | $3,326.8 | $2,891.4 | | **Total Shareholders' Equity** | **$1,796.4** | **$1,790.1** | [Consolidated Statements of Operations and Comprehensive (Loss) Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20%28Loss%29%20Income) Net income decreased in Q3 2021 but increased for the nine months ended September 30, 2021, primarily due to higher net investment income Key Operating Results ($ in millions, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $329.6 | $337.1 | $998.7 | $958.1 | | Net Investment Income | $103.7 | $93.7 | $308.4 | $256.4 | | **Net Income** | **$16.3** | **$36.5** | **$102.3** | **$85.5** | | Diluted EPS | $0.39 | $0.87 | $2.43 | $2.03 | | Comprehensive (Loss) Income | $(9.0) | $85.6 | $42.9 | $183.3 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased for the nine months ended September 30, 2021, while investing activities used cash and financing activities provided cash Consolidated Cash Flows for Nine Months Ended Sep 30 ($ in millions) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $178.1 | $267.8 | | Net Cash used in Investing Activities | $(351.0) | $(368.8) | | Net Cash from Financing Activities | $190.8 | $141.0 | | **Net Increase in Cash** | **$17.9** | **$40.0** | | Cash at End of Period | $40.2 | $65.5 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, the pending Madison National Life acquisition, investment portfolio composition, fair value measurements, and segment performance - The company entered into an agreement to acquire Madison National Life Insurance Company for **$172.5 million**, with a potential earn-out of up to **$12.5 million** The acquisition is expected to close in the **first quarter of 2022**[32](index=32&type=chunk) Investment Portfolio Composition as of Sep 30, 2021 ($ in millions) | Security Type | Amortized Cost, net | Fair Value | | :--- | :--- | :--- | | U.S. Government & Agency | $1,021.9 | $1,102.4 | | Municipal bonds | $1,592.5 | $1,775.5 | | Corporate bonds | $2,268.8 | $2,451.6 | | Other asset-backed securities | $1,122.2 | $1,138.5 | | **Total Fixed Maturity** | **$6,045.6** | **$6,512.0** | Net Income by Segment - Nine Months Ended Sep 30 ($ in millions) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Property and Casualty | $42.5 | $53.7 | | Supplemental | $34.8 | $30.6 | | Retirement | $36.2 | $16.6 | | Life | $10.8 | $6.8 | | Corporate and Other | $(22.0) | $(22.2) | | **Total** | **$102.3** | **$85.5** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, including Q3 net income decrease, nine-month net income increase, the Madison National Life acquisition, COVID-19 impacts, and the 2021 outlook [Introduction and COVID-19 Considerations](index=27&type=section&id=Introduction%20and%20COVID-19%20Considerations) This section introduces the Madison National Life acquisition and discusses the company's operational adjustments and sales impacts due to the COVID-19 pandemic - Entered into a definitive agreement to acquire Madison National Life Insurance Company for **$172.5 million**, a leading writer of employer-paid benefits for K-12 school districts The transaction is expected to be immediately accretive to **EPS** and **ROE**[90](index=90&type=chunk)[91](index=91&type=chunk) - The company has implemented a hybrid work model in response to the COVID-19 pandemic and is using virtual tools to reach customers due to limited in-person access to schools[93](index=93&type=chunk)[95](index=95&type=chunk) [Consolidated Financial Highlights and Results of Operations](index=29&type=section&id=Consolidated%20Financial%20Highlights%20and%20Results%20of%20Operations) Q3 2021 net income decreased due to investment losses and rising auto costs, while nine-month net income increased, driven by higher net investment income Consolidated Financial Highlights | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues ($M) | $329.6 | $337.1 | $998.7 | $958.1 | | Net Income ($M) | $16.3 | $36.5 | $102.3 | $85.5 | | Diluted EPS | $0.39 | $0.87 | $2.43 | $2.03 | - The nine-month increase in net income was primarily due to a **$49.0 million** increase in net investment income, largely from favorable returns on limited partnership interests[101](index=101&type=chunk) - Benefits, claims, and settlement expenses increased for both the three and nine-month periods, driven by higher automobile loss experience, catastrophe losses, and Life benefits[104](index=104&type=chunk) [Outlook for 2021](index=31&type=section&id=Outlook%20for%202021) The company projects full-year 2021 net income between **$3.27** and **$3.42** per diluted share, reflecting higher catastrophe losses and auto loss ratios, partially offset by strong investment income - Full-year 2021 net income is estimated to be between **$3.27** and **$3.42** per diluted share, with Q4 core earnings projected at **$0.65** to **$0.80** per share[116](index=116&type=chunk) - The Property and Casualty segment's outlook was lowered due to rising automobile loss costs, with the underlying auto loss ratio expected to rise again in Q4[118](index=118&type=chunk)[119](index=119&type=chunk) - Full-year total net investment income is anticipated to be in the range of **$405 million** to **$410 million**[117](index=117&type=chunk) [Results of Operations by Segment](index=33&type=section&id=Results%20of%20Operations%20by%20Segment) This section details segment performance, noting a Q3 net loss in Property and Casualty, and net income growth in Supplemental, Retirement, and Life segments Property and Casualty Net Income (Loss) ($ in millions) | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months | $(4.7) | $15.8 | | Nine Months | $42.5 | $53.7 | Supplemental Net Income ($ in millions) | Period | 2021 | 2020 | | :--- | :--- | :--- | | Three Months | $11.4 | $10.6 | | Nine Months | $34.8 | $30.6 | Retirement & Life Net Income ($ in millions) | Segment | Period | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Retirement** | Nine Months | $36.2 | $16.6 | | **Life** | Nine Months | $10.8 | $6.8 | [Investment Results](index=42&type=section&id=Investment%20Results) Net investment income increased **20.3%** for the nine months ended September 30, 2021, driven by limited partnership returns, with the **$6.7 billion** portfolio remaining investment grade - Net investment income from the investment portfolio (excluding the deposit asset on reinsurance) increased **26.6%** to **$233.3 million** for the nine months ended Sep 30, 2021, mainly due to strong returns on limited partnership interests[156](index=156&type=chunk) - The fixed maturity and equity securities portfolio totaled **$6.7 billion** in fair value as of September 30, 2021, with **85.9%** rated investment grade and an average quality rating of **A+**[162](index=162&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity, with total capital at **$2.185 billion** and debt-to-total capital at **17.8%**, below its **25%** target, supported by an increased credit facility - Total debt was **$388.6 million** at September 30, 2021, representing **17.8%** of total capital, which is below the company's long-term target of **25%**[182](index=182&type=chunk) - The company's bank credit facility was amended to increase the available amount from **$225.0 million** to **$325.0 million**, partly to fund the Madison National acquisition[188](index=188&type=chunk) - During the nine months ended September 30, 2021, the company paid **$38.6 million** in shareholder dividends and repurchased **44,685 shares** of common stock for **$1.7 million**[184](index=184&type=chunk)[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is market value risk, managed by coordinating asset and liability durations, with interest rate changes posing a risk to earnings - The primary market risk is market value risk, stemming from potential decreases in the value of invested assets due to changes in yields, liquidity, or issuer financial health[198](index=198&type=chunk) - The company manages risk by matching the projected cash flows of assets and liabilities and maintaining reasonable durations to maximize income without sacrificing quality[201](index=201&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material weaknesses or significant changes in internal control - Based on an evaluation as of September 30, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[203](index=203&type=chunk) - No material changes were made to the internal control over financial reporting during the third quarter of 2021[204](index=204&type=chunk) PART II - OTHER INFORMATION [Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020 - There are no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020[207](index=207&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=53&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2021, the company repurchased **5,000** shares of common stock at **$36.88** per share, with **$18.9 million** remaining for future repurchases Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | July 1 - 31 | 5,000 | $36.88 | | August 1 - 31 | — | — | | September 1 - 30 | — | — | | **Total** | **5,000** | **$36.88** | - As of the end of the quarter, **$18.9 million** remained authorized for future share repurchases under the existing program[208](index=208&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) This item is not applicable for the reporting period - Not applicable[209](index=209&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including governance documents, material contracts, and required CEO/CFO certifications - A list of exhibits filed with the report is provided, including governance documents, material contracts, and required CEO/CFO certifications[210](index=210&type=chunk)

Horace Mann Educators Corporation (NYSE:HMN) Q3 2021 Results Conference Call November 4, 2021 11:00 AM ET Company Participants Heather Wietzel - Vice President of Investor Relations Marita Zuraitis - President and Chief Executive Officer Bret Conklin - Executive Vice President and Chief Financial Officer Mark Desrochers - SVP, Head of P&C and Corporate Chief Actuary Conference Call Participants Meyer Shields - KBW Matt Carletti - JMP John Barnidge - Piper Sandler Gary Ransom - Dolling & Partners Greg Peters ...

| --- | --- | |-----------------------|-------| | | | | | | | | | | | | | Third Quarter 2021 | | | | | | Investor Presentation | | | | | | | | | November 3, 2021 | | | | | | | | | | | | | | Information as September 30, 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 ev ...

Horace Mann Educators Corporation (NYSE:HMN) Q2 2021 Results Conference Call August 3, 2021 8:00 AM ET Company Participants Heather Wietzel - Vice President of Investor Relations Marita Zuraitis - President and Chief Executive Officer Bret Conklin - Executive Vice President and Chief Financial Officer Matt Sharpe - EVP, Distribution and Business Strategy Mark Desrochers - SVP, Head of P&C and Corporate Chief Actuary Tyson Sanders - VP, Supplemental Mike Weckenbrock - SVP, Life and Retirement Ryan Greenier - ...