Horace Mann(HMN) - 2025 Q2 - Quarterly Results

Second-Quarter 2025 Financial Results Overview Key Financial Highlights Horace Mann reported strong Q2 2025 results, with net income and core earnings significantly up, driven by profitability and lower catastrophe costs - Horace Mann Educators Corporation (NYSE:HMN) reported financial results for the three and six months ended June 30, 2025[2] - Record second-quarter core earnings reflect very strong business profitability and solid growth momentum, as well as Property & Casualty catastrophe costs that were meaningfully below prior year and recent prior periods[5] Second-Quarter 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | % Change | | :----- | :------ | :------ | :------- | | Net income | $29.4 million | $3.8 million | 673.7% | | Core earnings* | $44.2 million | $11.3 million | 291.2% | | Total revenue | $411.7 million | $388.1 million | 6.1% | - Net premiums and contract charges earned were up 8% for the quarter[6] - Second-quarter Property & Casualty segment combined ratio of 97.0% improved 15 points over prior year[6] Detailed Financial Performance The company achieved significant year-over-year growth in Q2 and H1 2025 profitability, with core EPS and book values showing substantial improvement Consolidated Financial Results for Three and Six Months Ended June 30, 2025 | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | % Change | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | % Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :--------- | :------------------------------- | :------------------------------- | :--------- | | Total revenues | $411.7 | $388.1 | 6.1% | $828.1 | $774.1 | 7.0% | | Net income | $29.4 | $3.8 | 673.7% | $67.6 | $30.3 | 123.1% | | Net investment gains (losses), after tax | ($4.7) | ($4.6) | N.M. | ($7.3) | ($2.9) | N.M. | | Non-core earnings, after tax* | ($10.1) | ($2.9) | N.M. | ($14.0) | ($3.9) | N.M. | | Core earnings* | $44.2 | $11.3 | 291.2% | $88.9 | $37.1 | 139.6% | | Net income per diluted share | $0.71 | $0.09 | 688.9% | $1.63 | $0.73 | 123.3% | | Net investment gains (losses) per diluted share, after tax | ($0.11) | ($0.11) | N.M. | ($0.17) | ($0.07) | N.M. | | Non-core earnings per diluted share, after tax* | ($0.24) | ($0.07) | N.M. | ($0.34) | ($0.09) | N.M. | | Core earnings per diluted share* | $1.06 | $0.27 | 292.6% | $2.14 | $0.89 | 140.4% | | Book value per share (as of June 30) | | | | $33.31 | $29.60 | 12.5% | | Adjusted book value per share* (as of June 30) | | | | $38.46 | $36.33 | 5.9% | | Tangible book value per share* (as of June 30) | | | | $33.46 | $31.01 | 7.9% | | Core ROE - LTM* (as of June 30) | | | | 12.6% | 6.5% | 6.1 pts | - Non-core earnings for Q2 2025 included an ($8.1) million adjustment to net investment income due to an immaterial out-of-period correction related to private debt securities[4] Management Commentary and Business Outlook CEO Statement and Strategic Focus CEO Marita Zuraitis highlighted record core earnings, emphasizing the strategy to deliver consistent shareholder value through business diversification and a solid balance sheet - Record second-quarter core earnings reflect very strong business profitability and solid growth momentum, as well as Property & Casualty catastrophe costs that were meaningfully below prior year and recent prior periods[5] - The diversification of our business reflects our strategy to deliver consistent and reliable value to shareholders with a solid balance sheet and a compelling dividend[7] - Horace Mann's ability to empower all educators to achieve lifelong financial success, while also helping employers attract and retain employees by providing more comprehensive benefits[7] Full-Year 2025 Guidance Horace Mann increased full-year 2025 core EPS guidance after strong H1 results, targeting record core earnings and double-digit shareholder ROE - Full-year 2025 core EPS guidance increased to a range of $4.15 to $4.45, taking first-half results into consideration[5] - The company is on track to meet its 2025 annual goals of record core earnings and a double-digit shareholder return on equity[5][6] Additional Information Quarterly Webcast Details Horace Mann will host a webcast on August 7, 2025, at 11 am ET to discuss Q2 financial results, with replay available later - A conference call will be webcast live at investors.horacemann.com on August 7, 2025, at 11 am Eastern Time[8] - The webcast will be available later in the day for replay[8] About Horace Mann Horace Mann is the largest multiline financial services company helping America's educators achieve financial success with tailored solutions since 1945 - Horace Mann Educators Corporation (NYSE: HMN) is the largest multiline financial services company focused on helping America's educators and others who serve the community achieve lifelong financial success[9] - The company offers individual and group insurance and financial solutions tailored to the needs of the educational community[9] - Founded by Educators for Educators in 1945, Horace Mann is headquartered in Springfield, Illinois[9] Safe Harbor Statement and Non-GAAP Measures This section discloses forward-looking statements, associated risks, and non-GAAP financial measures, directing readers to SEC filings for details - Certain statements in this news release, including earnings outlook and business strategies, constitute forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[10] - Important factors that could cause actual results to differ are found in the 'Risk Factors' and 'Forward-Looking Information' sections of Horace Mann's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC[10] - Information includes measures not based on GAAP; reconciliations to GAAP are in the Appendix to the Investor Supplement, and additional descriptions are in the Glossary of Selected Terms included as an exhibit to SEC filings[11]