Q4 2024 Horace Mann Educators Corp Earnings Call Transcript
Key Points
- Horace Mann Educators Corp (HMN) reported record fourth quarter core earnings of $1.62 per share, a 93% increase over the prior year.
- The company achieved a full year 2024 core EPS of $3.18, more than double the 2023 earnings.
- Property and casualty segment showed significant improvement with a full year combined ratio of 98%, a 15-point improvement over the prior year.
- Net investment income increased due to strong core fixed income returns, benefiting from the higher interest rate environment.
- The company is guiding 2025 core earnings within the range of $3.60 to $3.90 per share, with a shareholder return on equity of at least 10%.
- The company faced estimated direct policyholder losses from the California wildfires in the range of $5 million to $10 million.
- Full year 2024 catastrophe losses were $94.9 million, representing a 12.8-point impact on the combined ratio.
- Life and retirement segment core earnings were below the prior year, primarily due to lower net interest margins.
- The net interest spread on the fixed annuity business declined, reflecting lower commercial mortgage loan fund returns.
- The company recorded $18 million of reserves and $2 million of expenses pre-tax related to legacy commercial exposures.
Good day, and welcome to the Horace Mann Educators fourth quarter 2024 investor call. (Operator Instructions). I would now like to turn the conference over to Brendan Dawal, Vice President of Investor Relations. Please go ahead, sir.
Thank you. Welcome to Horace Mann's discussion of our fourth quarter and full year, 2024 results. Yesterday, we issued our earnings release, investor supplement and investor presentation. Copies are available on the investors page of our website. Marita Zuraitis, President, and Chief Executive Officer; and Ryan Greenier, Executive Vice President and Chief Financial Officer will give the formal remarks on today's call. With us for Q&A, Steve Mcanena and Mark Desrochers.
Before turning it over to Marita, I want to note that our presentation today includes forward looking statements, as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any forward-looking statements include risks and
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