Horace Mann(US:HMN)2021-08-04 15:10Financial Performance & Guidance - Horace Mann's Q2 2021 core earnings per share reached a record of $1.02, contributing to a 52% increase in net income per share to $1.11[42] - The company raised its 2021 core EPS guidance to $3.50-$3.70 and expects a core ROE exceeding 10%[26] - Net investment income is projected to be in the range of $385 million to $405 million for the full year[26] Strategic Initiatives & Acquisitions - Horace Mann is set to acquire Madison National Life in early 2022 for $172.5 million, funded through cash and borrowing, which is expected to be immediately accretive to ROE and EPS[13] - The acquisition of Madison National Life is expected to add 50 basis points to ROE in 2022[25] - The company has repurchased $81 million in shares since the initial authorization in 2011[31] Segment Performance - P&C segment's net written premium was $636 million in 2020, with auto comprising 66% and property 34%[43] - The P&C segment's combined ratio for the first half of 2021 was 92.7%, benefiting from lower catastrophe losses[46] - Retirement segment saw a 15.6% increase in net annuity contract deposits in Q2 2021[57] Investment Portfolio - The company's investment portfolio has a fair value of $7.4 billion, with 66% rated A or higher and less than 5% below investment grade[65] - The alternative investment portfolio is valued at $586 million and generated an average return of 6.5% since 2012, with a YTD annualized return of 14.97%[68, 69] Market & Customer Focus - Horace Mann focuses on the K-12 educator market, which includes 6.5 million educators nationwide, with a current customer base of roughly 470,000 educator households[34]