Q4 2025 Horace Mann Educators Corp Earnings Call Transcript
Key Points
- Horace Mann Educators Corp (HMN) reported record 2025 full-year core earnings per share of $4.71 and a shareholder return on equity of 12.4%, the highest in the company's history.
- Total revenues increased by 7% over the prior year, with net premiums and contract deposits earned up more than 7%.
- Individual supplemental sales increased nearly 40% over the prior year, while Group Benefits recorded a 33% increase.
- The Property and Casualty segment saw a 5-point improvement in the underlying combined ratio year-over-year, reflecting effective rate and non-rate actions.
- Horace Mann Educators Corp (HMN) expanded its distribution organization and strengthened marketing capabilities, leading to a 15% increase in points of distribution across all channels.
- 2025 results were partially driven by unusually light severe weather activity, which may not be replicated in future years.
- The company does not expect the low level of catastrophe losses experienced in 2025 to continue into 2026 or subsequent years.
- One of the commercial mortgage loan funds, Sound Mark Partners, is in runoff and expected to continue underperforming, which will modestly pressure reported yields.
- The early retirement offering, while strategic, resulted in onetime costs that will be treated as non-core and excluded from core earnings.
- The Group Benefits segment, while showing growth, remains smaller and experiences a longer sales cycle, contributing to lumpiness in results.
Good day and welcome to the Horace Mann Educators fourth-quarter and full-year 2025 investors conference call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Rachael Luber, Vice President of Investor Relations. Please go ahead.
Thank you. Welcome to Horace Mann's discussion of our fourth-quarter and full-year 2025 results. Yesterday, we issued our earnings release, investor supplement, and investor presentation. Copies are available on the Investors page of our website.
Our speakers today are Marita Zuraitis, President and Chief Executive Officer; and Ryan Greenier, Executive Vice President and Chief Financial Officer.
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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