Financial Data and Key Metrics Changes - The company reported record third quarter core EPS of $1.36, a 64% increase over the prior year [4] - Trailing 12-month core return on equity increased to 13.8% [4] - Total revenues for the quarter were up 6% over the prior year, with net premiums and contract charges earned up over 7% [4][15] - Tangible book value per share increased more than 9%, reflecting strong underlying profitability [15] Business Line Data and Key Metrics Changes - In the Property and Casualty (P&C) segment, core earnings were $32 million, tripling year-over-year, with net written premiums of $232 million, a 9% increase [15][16] - The P&C reported combined ratio improved to 87.8%, reflecting much lower catastrophe costs [16] - In the Life and Retirement segment, core earnings were $15 million, in line with the prior year, and net written premiums and contract deposits rose to $170 million [17] - Supplemental and Group Benefits contributed $18 million to core earnings, with individual supplemental sales up 40% for the quarter [19][21] Market Data and Key Metrics Changes - The company experienced oversized growth in the supplemental and group benefits segment, with individual supplemental sales up 40% and group benefits nearly doubling [4][9] - Policyholder retention remained strong, with property retention nearly 89% and life persistency near 96% [17][18] Company Strategy and Development Direction - The company is focused on increasing its share of the education market and driving future growth through strategic partnerships and enhanced distribution [7][8] - Investments are being made in growth while maintaining expense discipline, with a goal to reduce the expense ratio by about one and a half points over the next three years [10][34] - The company is leveraging GenAI to enhance productivity and efficiency across operations [10][11] Management's Comments on Operating Environment and Future Outlook - Management raised full-year core EPS guidance to a range of $4.50-$4.70, reflecting strong year-to-date performance [5][14] - The company expects to continue to meet and exceed strategic objectives, delivering sustained market-leading growth and accelerating shareholder value creation [12][24] - Management noted that while this year has been favorable for catastrophe losses, it would not be prudent to assume similar conditions will repeat in the future [59][60] Other Important Information - The company plans to make a significant donation to the Horace Mann Educators Foundation in the fourth quarter, reflecting its commitment to supporting educators [14] - The company has returned $20 million to shareholders through share repurchases and $43 million through dividends [12] Q&A Session Summary Question: Organic policy account growth trajectory in P&C operations - Management noted that sales momentum is up across all business lines, with retention steady and individual supplemental sales up 41% [26][27] Question: EPS guidance and moving pieces - Management explained that the updated guidance reflects known expenses and the intent to continue investing in growth, with a normalized fourth quarter expected [30][31] Question: Supplemental and group benefits capabilities - Management indicated that they are making investments in lead generation and expanding distribution for group benefits, which is a newer area for the company [39][40] Question: Catastrophe losses and mitigation efforts - Management confirmed that this year has seen lower catastrophe losses due to effective mitigation efforts and a favorable weather year, but they do not expect this trend to continue into 2026 [53][54]

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]