Financial Data and Key Metrics Changes - The company reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), the underlying combined ratio improved to 84.3%, a 5-point improvement year-over-year, with sales increasing by 6% [5][19] - Auto reported a combined ratio of 96.5%, improving nearly 2 points over the prior year, with policyholder retention stable at 84% [6][19] - Life and Retirement saw record life sales in Q4, up 21% year-over-year, with retirement deposits increasing by 4% [6][21] - Individual Supplemental sales increased nearly 40% year-over-year, while Group Benefits recorded a 33% increase [4][7] Market Data and Key Metrics Changes - The company expanded its distribution organization significantly, increasing points of distribution by 15% across all channels [8] - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating strong market recognition [7][8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [11][12] - The introduction of the Horace Mann Club aims to provide educators with financial wellness tools and resources, enhancing community engagement [9] Management Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5][10] - The company does not expect a similarly low level of catastrophe losses in 2026 or subsequent years, indicating a cautious outlook [10][18] - Management expressed confidence in achieving long-term financial targets while navigating a competitive environment [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization for share repurchases [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated that 2025 was the strongest year for distribution, with significant sales momentum and increased brand awareness [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual EPS growth rate and anticipated accelerating top-line growth due to investments made [32][34] Question: Catastrophe loss assumptions in guidance - Management clarified that the $90 million catastrophe loss assumption for 2026 is based on a consistent year-over-year approach, not influenced by prior year developments [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Free cash flow conversion targets - The company achieved about 80% free cash flow conversion in 2025 and targets over 75% for 2026, supported by capital-efficient business growth [63][64] Question: Investment in Supplemental and Group segment - Management expressed satisfaction with progress in Individual Supplemental and Group Benefits, with strong sales and distribution efforts [70][72]

Financial Data and Key Metrics Changes - Horace Mann reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), core earnings were $112 million, more than double the prior year, with a reported combined ratio of 89.7, improving over 8 points year-over-year [19] - Auto net written premiums increased to $502 million, with a combined ratio of 96.5, improving nearly 2 points [19] - Life and retirement segment saw core earnings increase by 13% to $61 million, with net premiums written and contract deposits growing to $612 million, up 7% year-over-year [21] - Individual supplemental sales increased nearly 40% year-over-year, while group benefits recorded a 33% increase [6][22] Market Data and Key Metrics Changes - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating significant growth in market recognition [7] - New business customer interactions increased by 37% in the fourth quarter, reflecting improved marketing effectiveness [8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [12][14] - The introduction of the Horace Mann Club aims to enhance engagement with educators and provide financial wellness tools [9] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5] - The company expects a normalized core earnings per share guidance range of $4.20-$4.50 for 2026, reflecting a nearly 10% increase [11][17] - Management expressed confidence in achieving long-term financial targets despite potential macroeconomic uncertainties [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization in May [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated strong sales momentum driven by distribution efforts, with brand awareness and website traffic significantly increasing [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual earnings per share growth rate, with anticipated accelerating top-line growth due to investments made [33][34] Question: Catastrophe loss assumptions and reinsurance program - Management clarified that the catastrophe loss guidance for 2026 is based on a consistent approach, not influenced by one year's results [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Investment in supplemental and group segment - Management expressed satisfaction with progress in individual supplemental and group benefits, with strong sales and distribution efforts [70][72]

Financial Data and Key Metrics Changes - Horace Mann reported record full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][16] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][16] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [16] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), core earnings were $112 million, more than double the prior year, with net written premiums increasing by 7% to $830 million [20] - The reported combined ratio for P&C improved to 89.7, an improvement of over 8 points year-over-year [20] - Life and retirement segment saw core earnings increase by 13% to $61 million, with net premiums written and contract deposits growing to $612 million, up 7% year-over-year [22] - Individual supplemental sales increased by nearly 40% year-over-year, while group benefits recorded a 33% increase [6][24] Market Data and Key Metrics Changes - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating significant growth in market recognition [8] - New business customer interactions increased by 37% in the fourth quarter, reflecting enhanced marketing and distribution efforts [9] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [12][28] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support long-term growth [12][13] - The introduction of the Horace Mann Club aims to provide educators with financial wellness tools and resources, enhancing community engagement [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5] - The company expects a normalized core earnings per share guidance range of $4.20-$4.50 for 2026, reflecting a nearly 10% increase [12][18] - Management expressed confidence in achieving long-term financial targets while navigating a competitive environment [28] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization in May [14][27] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [58][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management highlighted strong sales momentum driven by distribution efforts, with brand awareness and website traffic significantly increasing [31][32] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual earnings per share growth rate, with accelerating top-line growth anticipated as investments yield results [34][36] Question: Catastrophe loss assumptions and reinsurance program - Management clarified that the $90 million catastrophe loss assumption for 2026 is based on consistent year-over-year approaches and does not include prior year development in planning [39][40] Question: Increase in educator household access - Management noted a significant increase in accessible educator households due to strategic marketing and partnerships, contributing to overall growth [44][51] Question: Long-term target for net interest spread in retirement - Management reaffirmed a target of a 200 basis point spread for fixed annuities, although 2025 performance was impacted by underperformance in commercial mortgage loans [52] Question: Early retirement offering participation - Management reported a satisfactory participation rate in the early retirement offering, aimed at workforce planning and future skill alignment [58][61] Question: Investment in supplemental and group segment - Management expressed confidence in the growth and earnings diversification from individual supplemental and group benefits, with favorable benefit ratios expected to normalize [71][76]

Financial Data and Key Metrics Changes - The company reported a core EPS of $1.70 for Q1 2025, a significant increase compared to the prior year, marking a record first quarter [6] - Core earnings reached $45 million or $1.07 per share, reflecting a 73% increase over the prior year [19] - Total net written premiums and contract deposits increased by 7%, with total revenues up by 8% [20] Business Line Data and Key Metrics Changes - The Property and Casualty segment showed strong performance with a combined ratio of 89.4%, improving by 10.5 points over the prior year [7] - In Life and Retirement, earnings were below the prior year primarily due to higher mortality, which was within expected actuarial ranges [8] - Individual Supplemental and Group Benefits segment earnings slightly increased, with net written premiums of $67.6 million, a 5% increase over the prior year [25] Market Data and Key Metrics Changes - Individual supplemental sales surged by 61%, while auto sales increased by 8% and annuity net contract deposits rose by 6% [10] - The company experienced a 40% increase in website visitors, contributing to strong new business sales [11] - The auto rate increase of 14.5% in California went into effect in mid-April, with a property increase of nearly 20% set for July 1 [20] Company Strategy and Development Direction - The company aims to achieve a shareholder return on equity above 10% for 2025, focusing on sustained profitable growth [6][16] - Investments in omnichannel distribution capabilities are expected to drive continued growth and profitability [10] - The company is committed to supporting educators and local communities, as highlighted by their Corporate Social Responsibility efforts [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial foundation and ability to navigate macroeconomic uncertainties [15] - The company anticipates continued strong performance in the second quarter, despite historical trends indicating it is typically the highest quarter for catastrophe costs [38] - Management emphasized the importance of their multiline business model in delivering consistent earnings across various economic environments [29] Other Important Information - The company reported a total net investment income of $116 million, a 10% increase over the prior year [9] - The annualized pretax investment yield on the portfolio was 5.09%, with core new money yields at 5.51% [27] - The company has returned $7 million to shareholders through share repurchases year-to-date [14] Q&A Session Summary Question: Could you talk about the run rate earnings power of the Life and the Supplemental Group Benefits segments? - Management indicated that the Life and Retirement business experienced a mortality blip, but overall performance is expected to normalize [33] Question: Could you talk about the cat activity in Q2 2025 year to date and also remind us how we should account for seasonality going into the second quarter? - Management noted that Q1 saw California wildfires with an ultimate loss of $3.7 million, and they expect the second quarter to be their heaviest for catastrophe costs historically [36][38] Question: Were there any new school districts added that drove the growth in individual supplemental distribution? - Management confirmed that there were no new districts added, attributing growth to strong activity from benefit specialists [41] Question: Is there any consideration for increasing reserves for supplemental group benefits products due to macro deterioration? - Management stated that current utilization trends do not indicate a need for increased reserves, and they remain confident in their expectations for group benefits [49][50]

Financial Data and Key Metrics Changes - The company reported a first quarter core EPS of $1.7, a significant increase over the prior year and a record for the first quarter [5] - Core earnings of $45 million or $1.07 per share represented a 73% increase over the prior year, with a core return on equity of 10.6%, reflecting a 4.9% improvement [17] - Total net written premiums and contract deposits increased by 7%, with total revenues up by 8% [18] Business Line Data and Key Metrics Changes - The Property and Casualty segment showed strong performance with a reported combined ratio of 89.4%, a 10.5 point improvement over the prior year [6] - In Life and Retirement, earnings were below the prior year primarily due to higher mortality, which was within expected actuarial ranges [7] - Individual Supplemental and Group Benefits saw earnings slightly above the prior year due to lower policyholder benefits utilization and higher segment net investment income [7][22] Market Data and Key Metrics Changes - Individual supplemental sales increased by 61%, auto sales were up by 8%, and annuity net contract deposits rose by 6% [8] - The company experienced a 40% increase in website visitors, contributing to strong new business sales [9] - The auto rate increase of 14.5% went into effect in mid-April, with a property increase of just under 20% set to take effect on July 1 [18] Company Strategy and Development Direction - The company is focused on driving sustained profitable growth through investments in omnichannel distribution capabilities and enhancing agent productivity [8] - The launch of Catalyst, a proprietary customer relationship management system, is aimed at improving sales force efficiency and customer experience [9] - The company aims to achieve a shareholder return on equity above 10% for the year and is on track to meet its 2025 goals [5][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but emphasized the company's strong financial foundation and ability to adapt to various economic environments [12][13] - The company is confident in its ability to deliver record core earnings in 2025 and maintain a sustainable double-digit shareholder return on equity [14][28] - Management highlighted the importance of supporting educators and communities as part of their corporate social responsibility efforts [11] Other Important Information - The company reported a total net investment income of $116 million, a 10% increase over the prior year [7] - The annualized pretax investment yield on the portfolio was 5.09%, with core new money yields of 5.51% [25] - The company has returned $7 million to shareholders through share repurchases year-to-date [12][27] Q&A Session Summary Question: Could you talk about the run rate earnings power of the Life and the Supplemental Group Benefits segments? - Management indicated that the Life and Retirement business experienced a slight mortality blip but overall performance is expected to normalize [31][32] Question: Could you talk about the cat activity in Q2 2025 year to date and how to account for seasonality? - Management noted that Q1 saw California wildfires with an ultimate loss of $3.7 million, and they expect the second quarter to be the highest for catastrophe costs historically [34][36] Question: Were there any new school districts added that drove growth in individual supplemental distribution? - Management confirmed that there were no new districts added, attributing growth to strong activity from benefit specialists and a favorable comparison to a light sales quarter in Q1 2024 [40][41] Question: Are there plans to increase reserves for supplemental group benefits products? - Management stated that current utilization trends do not indicate a need for increased reserves, and they remain confident in their expectations for group benefits [46][49]