Horace Mann (HMN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:50 AM CDT 26 min read

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DATE

Thursday, May 7, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Marita Zuraitis

• Executive Vice President & Chief Financial Officer — Ryan Greenier

• Vice President, Investor Relations — Rachael Luber

Full Conference Call Transcript

Marita Zuraitis: Thanks, Rachael Luber, and bully morning, everyone. Yesterday Horace Mann Educators Corporation reported grounds archetypal 4th halfway net per stock of $1.28, 20% supra the grounds level of the archetypal 4th net we reported past year. Insurance and fee-based gross accrued 6% twelvemonth implicit year, reflecting maturation crossed our businesses. Life income were up 17%, idiosyncratic supplemental accrued 11%, and radical benefits delivered a grounds 4th with income much than tripling twelvemonth implicit year. Core shareholder instrumentality connected equity for the trailing 12 months was 12.7%. These results item the spot of our multiline concern exemplary and our quality to present consistent, profitable maturation crossed a scope of economical and manufacture conditions.

We are maintaining our 2026 halfway EPS guidance of $4.20 to $4.50 and stay assured successful achieving our three-year strategical extremity of a 10% compound yearly maturation complaint successful halfway net per stock and a sustainable 12% to 13% shareholder instrumentality connected equity. Today, I volition sermon the highlights of the 4th and supply an update connected our maturation progress. Let america commencement with conception results. Property and Casualty profitability remained strong. The combined ratio of 83.3%, a five-point betterment implicit the anterior year, reflects little catastrophe costs and improved underlying performance. P&C written premiums accrued 5%, and car and spot policyholder retention remained unchangeable and consistently precocious comparative to manufacture benchmarks.

Segment income bespeak our disciplined absorption connected profitable maturation successful a competitory car market. We are prioritizing maturation successful markets wherever we spot the strongest returns. Excluding California, which remains a much analyzable and highly regulated marketplace for the industry, car income accrued astatine a precocious single-digit rate. Countrywide, spot income accrued 11%. In Life and Retirement, halfway net accrued 16% twelvemonth implicit year, benefiting from little mortality costs. Life income accrued 17%, and persistency crossed some beingness and status remains strong. The Individual Supplemental and Group Benefits conception continued to present beardown maturation this quarter. We proceed to put wherever we spot meaningful semipermanent opportunity.

Our attack is to physique internally wherever we tin present a differentiated, best-in-class acquisition and to spouse with starring 3rd parties wherever it enhances our capabilities and velocity to market. In idiosyncratic supplemental, we are investing successful our organisation and merchandise portfolio to enactment growth. Our enhanced crab merchandise continues to beryllium a cardinal operator of growth, with income doubling twelvemonth implicit twelvemonth and gathering connected grounds show past year. Across each products, idiosyncratic supplemental income accrued 11% twelvemonth implicit year. This high-margin, high-persistency concern besides supports beardown cross-sell opportunities. Life is simply a earthy adjacency for benefits specialists selling idiosyncratic supplemental products, and today, astir 10% of our beingness income are consistently generated done that channel.