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  • Horace Mann Reports Strong 2019 Results

    February 10, 2020 by Horace Mann Educators Corporation

    SPRINGFIELD, Ill.,–(BUSINESS WIRE)–Horace Mann Educators Corporation (NYSE:HMN) today reported financial results for the quarter and full-year ended December 31, 2019:

    Horace Mann Consolidated Financial Highlights

             

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions, except per share amounts)

     

    2019

     

    2018

     

    $ Change

     

    2019

     

    2018

     

    $ Change

    Total revenues

     

    $

    331.4

     

     

    $

    278.5

     

     

    $

    52.9

     

     

    $

    1,430.5

     

     

    $

    1,191.6

     

     

    $

    238.9

     

    Net income

     

    33.0

     

     

    (20.3

    )

     

    53.3

     

     

    184.4

     

     

    18.3

     

     

    166.1

     

    Net investment gains (losses) after tax

     

    1.3

     

     

    (11.6

    )

     

    12.9

     

     

    120.2

     

     

    (10.1

    )

     

    130.3

     

    Goodwill impairment

     

     

     

     

     

     

     

    (28.0

    )

     

     

     

    (28.0

    )

    Core earnings*

     

    31.7

     

     

    (8.7

    )

     

    40.4

     

     

    92.2

     

     

    28.4

     

     

    63.8

     

    Per diluted share:

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    0.78

     

     

    (0.49

    )

     

    1.27

     

     

    4.40

     

     

    0.44

     

     

    3.96

     

    Net investment gains (losses) after tax

     

    0.03

     

     

    (0.28

    )

     

    0.31

     

     

    2.87

     

     

    (0.24

    )

     

    3.11

     

    Goodwill impairment

     

     

     

     

     

     

     

    (0.67

    )

     

     

     

    (0.67

    )

    Core earnings per diluted share*

     

    0.75

     

     

    (0.21

    )

     

    0.96

     

     

    2.20

     

     

    0.68

     

     

    1.52

     

    Book value per share

     

     

     

     

     

     

     

    38.01

     

     

    31.50

     

     

    6.51

     

    Book value per share excluding net unrealized

                                 

    investment gains on fixed maturity securities*

     

     

     

     

     

     

     

    32.42

     

     

    29.13

     

     

    3.29

     

    N.M. – Not meaningful.
    * These measures are not based on accounting principles generally accepted in the United States (non-GAAP). They are reconciled to the most directly comparable GAAP measures in the Appendix to the Investor Supplement. An explanation of these measures is contained in the Glossary of Selected Terms included as an exhibit in the Company’s reports filed with the Securities and Exchange Commission.

    “I’m very proud of the Horace Mann team and the results we achieved in 2019,” said President and CEO Marita Zuraitis. “As we celebrate the company’s 75th anniversary in 2020, we are successfully implementing our strategic initiatives and have set the stage to further our corporate vision. We look forward to leveraging our market leadership position to serve the financial needs of even more educators. Deepening our market penetration will lead to accelerated shareholder value creation and achievement of our long-term objective of a double-digit return on equity.”

    Summarizing the highlights of 2019’s performance, Zuraitis said, “The year marked the culmination of a multi-year effort to substantially improve profitability in our Property and Casualty segment. For the year, the segment’s combined ratio of 96.5% was the best full-year result since 2015, and we surpassed our goal for improvement in our auto underlying loss ratio. The transaction that reinsured a block of legacy annuity business greatly reduced the Retirement segment’s exposure to declining interest rates and freed up capital used to acquire the higher-margin Supplemental business in July. The new Supplemental segment allows us to provide an expanded suite of in-demand solutions for our educator customers, while at the same time diversifying our sales and earnings results to reduce volatility. The Supplemental segment added 43 cents to 2019’s core EPS.”

    “In 2020, we expect to build on 2019’s successes with about 20% growth in core EPS to the range of $2.55 to $2.75, despite the challenging interest rate environment and presuming Property and Casualty catastrophe losses are at a similar level to 2019. Our 2020 results will reflect a full-year contribution from the Supplemental segment and a lower cost structure due to synergies and our expense reduction efforts,” Zuraitis continued. “Core ROE should be above 8% for the full year, which reflects continued progress toward our double-digit objective.”

    Fourth-quarter 2019 results included $4.1 million, or $0.08 per share, for severance charges resulting from previously announced expense reduction initiatives. These expense synergies and efficiency projects are expected to reduce the annual operating expense run-rate in 2020 and beyond by at least $15 million.

    Property and Casualty Segment Full-Year Combined Ratio at 96.5%; Underlying Auto Loss Ratio Improved 4.0 Points; Catastrophe Losses Far Below 2018 Level
    (All comparisons vs. same period in 2018, unless noted otherwise)

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions)

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

     

     

     

     

     

     

     

     

     

     

     

     

     

    Property and Casualty written premiums*

     

    $

    164.6

     

     

    $

    166.4

     

     

    -1.1

    %

     

    $

    683.1

     

     

    $

    681.5

     

     

    0.2

    %

    Property and Casualty net income / core earnings*

     

    20.0

     

     

    (9.9

    )

     

    N.M.

     

    54.3

     

     

    (14.3

    )

     

    N.M.

    Property and Casualty combined ratio

     

    90.3

    %

     

    113.3

    %

     

    -23.0

    pts

     

    96.5

    %

     

    109.3

    %

     

    -12.8

    pts

    Property and Casualty underlying loss ratio*

     

    60.3

    %

     

    59.3

    %

     

    1.0

    pts

     

    63.1

    %

     

    65.5

    %

     

    -2.4

    pts

    Property and Casualty expense ratio

     

    27.4

    %

     

    28.1

    %

     

    -0.7

    pts

     

    26.9

    %

     

    27.0

    %

     

    -0.1

    pts

    Property and Casualty catastrophe costs

     

    2.6

    %

     

    27.0

    %

     

    -24.4

    pts

     

    7.6

    %

     

    17.1

    %

     

    -9.5

    pts

    Property and Casualty underlying combined ratio*

     

    87.7

    %

     

    86.3

    %

     

    +1.4

    pts

     

    90.0

    %

     

    92.2

    %

     

    -2.2

    pts

    Auto combined ratio

     

    99.7

    %

     

    102.2

    %

     

    -2.5

    pts

     

    97.6

    %

     

    103.1

    %

     

    -5.5

    pts

    Auto underlying loss ratio*

     

    71.9

    %

     

    72.8

    %

     

    -0.9

    pts

     

    70.6

    %

     

    74.6

    %

     

    -4.0

    pts

    Property combined ratio

     

    71.5

    %

     

    139.8

    %

     

    -68.3

    pts

     

    94.2

    %

     

    123.1

    %

     

    -28.9

    pts

    Property underlying loss ratio*

     

    37.1

    %

     

    30.7

    %

     

    +6.4

    pts

     

    47.2

    %

     

    46.2

    %

     

    +1.0

    pts

    N.M. – Not meaningful.

    For full year 2019, Property and Casualty written premiums were comparable to 2018, while the combined ratio improved 12.8 points. This reflected catastrophe costs that were 9.5 points lower than prior year as well as profitability improvements from underwriting and rate actions.

    Catastrophe costs added 7.6 points to the full-year combined ratio, in line with the updated estimate management provided after nine months. Fourth-quarter catastrophe losses were $4.4 million. A wind and thunderstorm event in Texas in October was the largest of 13 events in the quarter.

    The full-year auto combined ratio was 97.6%, improved 5.5 points over last year and the best result since 2010, largely due to profitability initiatives. The full-year property combined ratio was 94.2% due to the significantly lower catastrophe losses.

    Auto and property policy retention rates for 2019 were 81.1% and 87.1%, respectively, in line with 2018’s levels.

    Supplemental Segment Contributes $18.0 Million to 2019 Core Earnings

    On July 1, 2019, Horace Mann acquired National Teachers Associates (NTA). As a part of Horace Mann, NTA continues to provide supplemental insurance products to the education market, building on nearly 50 years of experience in the sector. NTA specializes in developing, marketing and underwriting supplemental insurance products, including cancer, heart, limited supplemental disability and accident.

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions)

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

     

     

     

     

     

     

     

     

     

     

     

     

     

    Supplemental sales*

     

    $

    4.6

     

     

    N/A

     

    N/A

     

    $

    8.2

     

     

    N/A

     

    N/A

    Earned premiums

     

    32.9

     

     

    N/A

     

    N/A

     

    65.8

     

     

    N/A

     

    N/A

    Supplemental net income / core earnings*

     

    11.1

     

     

    N/A

     

    N/A

     

    18.0

     

     

    N/A

     

    N/A

    Pretax profit margin (1)

     

    37.9

    %

     

    N/A

     

    N/A

     

    30.8

    %

     

    N/A

     

    N/A

    N/A – The acquisition of NTA closed on July 1, 2019.
    (1) Measured to total revenues.

    Supplemental segment sales were $8.2 million for the third and fourth quarters of 2019, reflecting steady sales in all product categories with persistency at 89.3%.

    The segment added $18.0 million to core earnings in the second half of 2019, exceeding management’s guidance of $12 million to $14 million, reflecting favorable reserve changes. The segment’s pretax profit margin for the second half of the year was 30.8%. Segment expenses include the non-cash impact of amortization of intangible assets under purchase accounting that reduces quarterly core earnings by $6.6 million (pretax).

    Retirement Segment Annualized Net Interest Margin Strong Following Reinsurance Transaction

    Effective April 1, 2019, Horace Mann reinsured a block of approximately $2.9 billion of policy liabilities related to legacy individual annuities written in 2002 or earlier. The annuity reinsurance transaction is accounted for under the deposit method. Under the deposit method of accounting, the consideration paid by Horace Mann is reported as a deposit asset on reinsurance that is adjusted consistent with the reinsurance agreement terms, along with recognizing accreted investment income. Accreted investment income is calculated based on the ultimate anticipated cash flows from the annuity reinsurance transaction.

    As a result of the transaction, in the second quarter management impaired $28.0 million of goodwill that had been associated with the Retirement segment.

    (All comparisons vs. same period in 2018, unless noted otherwise)

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions)

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

     

     

     

     

     

     

     

     

     

     

     

     

     

    Annuity contract deposits*

     

    $

    117.9

     

     

    $

    113.1

     

     

    4.2

    %

     

    $

    462.5

     

     

    $

    439.1

     

     

    5.3

    %

    Annuity assets under management (1)

     

     

     

     

     

     

     

    4,379.6

     

     

    6,713.3

     

     

    -34.8

    %

    Total assets under administration (2)

     

     

     

     

     

     

     

    8,270.6

     

     

    7,043.6

     

     

    17.4

    %

    Retirement net income (loss)

     

    2.1

     

     

    4.1

     

     

    -48.8

    %

     

    (4.8

    )

     

    41.7

     

     

    -111.5

    %

    Retirement core earnings*

     

    2.1

     

     

    4.1

     

     

    -48.8

    %

     

    23.2

     

     

    41.7

     

     

    -44.4

    %

    Retirement core earnings excluding

                                       

    DAC unlocking*

     

    2.1

     

     

    7.1

     

     

    -70.4

    %

     

    26.0

     

     

    44.8

     

     

    -42.0

    %

    N.M. – Not meaningful.
    (1) Amount reported as of December 31, 2019 excludes $707.8 of assets under management held under modified coinsurance reinsurance.
    (2) Includes Annuity AUM, Brokerage and Advisory AUA, and Recordkeeping AUA.

    Reflecting the annuity reinsurance transaction, Horace Mann currently has $4.4 billion in assets under management, including $2.1 billion of fixed annuities, $1.8 billion of variable annuities and $0.5 billion of fixed indexed annuities. Assets under administration were up 17.4% from year-end 2018 due to the inclusion of Benefit Consultants Group’s (BCG) advisory and recordkeeping assets effective January 2, 2019.

    Annuity contract deposits continued to grow, increasing 5.3% over prior year, reflecting positive momentum in retirement initiatives and in engaging new households. Total cash value persistency remained strong at 94.7% for variable annuities and 94.0% for fixed annuities.

    The annuity reinsurance transaction and redeployment of capital for the acquisition of NTA were the primary drivers in the decline in Retirement earnings for the quarter and full year, with results in line with management’s expectations. Due to the goodwill impairment, Retirement reported a net loss for the year. Core earnings excluding DAC unlocking for the year were $26.0 million, in line with management’s guidance. Fourth-quarter core earnings excluding DAC unlocking were down sequentially due to higher expenses, as well as lower alternative investment income and prepayments compared to the strong third-quarter.

    After the annuity reinsurance transaction, the average crediting rate on traditional fixed annuities is now 2.5% vs. 3.6% previously. The 194 basis point net interest spread for full-year 2019 includes the 142 basis point net interest spread for the first quarter, which was prior to the transaction.

    Demand for Life Segment Products Remains Strong

    (All comparisons vs. same period in 2018, unless noted otherwise)

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions)

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

     

     

     

     

     

     

     

     

     

     

     

     

     

    Life sales*

     

    $

    4.2

     

     

    $

    6.1

     

     

    -31.1

    %

     

    $

    17.9

     

     

    $

    21.2

     

     

    -15.6

    %

    Life mortality costs

     

    7.1

     

     

    9.2

     

     

    -22.8

    %

     

    33.5

     

     

    35.1

     

     

    -4.6

    %

    Life net income / core earnings*

     

    4.0

     

     

    3.8

     

     

    5.3

    %

     

    17.6

     

     

    18.8

     

     

    -6.4

    %

    Demand remains healthy in the education market for life products. The number of policies issued increased 2% over prior year although life sales were lower than the very strong prior year results primarily because of lower single premium product sales and the introduction of product with pricing based on the updated mortality table.

    In line with management’s guidance, Life core earnings* were down slightly for the year due to higher expenses and lower net investment income, partially offset by lower mortality costs. Life persistency of 95.4% was unchanged from the prior year period.

    Investment Results Impacted by Annuity Reinsurance Transaction

    Total net investment income includes net investment income on the investment portfolio managed by Horace Mann as well as accreted investment income on the deposit asset on reinsurance.

    (All comparisons vs. same period in 2018, unless noted otherwise)

     

     

    Three Months Ended
    December 31,

     

    Twelve Months Ended
    December 31,

    ($ in millions)

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

     

     

     

     

     

     

     

     

     

     

     

     

     

    Pretax net investment income – investment portfolio

     

    $

    62.0

     

     

    $

    88.4

     

     

    -29.9

    %

     

    $

    294.3

     

     

    $

    376.5

     

     

    -21.8

    %

    Pretax investment income – deposit asset on reinsurance

     

    23.8

     

     

     

     

    N.M.

     

    70.8

     

     

     

     

    N.M.

    Total pretax net investment income

     

    85.8

     

     

    88.4

     

     

    -2.9

    %

     

    365.1

     

     

    376.5

     

     

    -3.0

    %

    Pretax net investment gains (losses)

     

    1.7

     

     

    (14.4

    )

     

    N.M.

     

    153.3

     

     

    (12.5

    )

     

    N.M.

    Pretax net unrealized investment gains (losses)

                                 

    on fixed maturity securities

     

     

     

     

     

     

     

    334.7

     

     

    141.4

     

     

    136.7

    %

    Annualized pretax investment portfolio yield

     

    4.28

    %

     

    4.74

    %

     

    -0.46

    pts

     

    4.44

    %

     

    5.12

    %

     

    -0.68

    pts

    N.M. – Not meaningful.

    Total net investment income declined 3.0% year-over-year. Net investment income on the managed portfolio declined sequentially by $7.2 million, largely due to lower returns on alternative investments compared to the strong third-quarter level. Accreted investment income for the deposit asset on reinsurance was comparable to the third quarter.

    Full-year net investment gains included $135.3 million, or $106.9 million after tax, related to the second-quarter gain on assets transferred in the annuity reinsurance transaction. Net unrealized investment gains on fixed maturity securities increased significantly from last year due to the decline in interest rates, which has resulted in higher fair values of fixed maturity securities.

    Strong Results Contribute to 11% Growth in Book Value Excluding Unrealized Investment Gains

    At year-end 2019, shareholders’ equity was $1.57 billion, or $38.01 per share. Excluding net unrealized investment gains on fixed maturity securities, shareholders’ equity was $1.34 billion, or $32.42 per share*. The improvement in book value excluding unrealized investment gains on fixed maturity securities since year-end 2018 primarily reflected the realized gain on assets transferred in the annuity reinsurance transaction as well as strong earnings.

    At December 31, 2019, total debt was $433 million with $135 million outstanding on the company’s line of credit. The debt-to-capital ratio was 24.5%.

    Quarterly Webcast

    Horace Mann’s senior management will discuss the company’s fourth quarter financial results with investors on February 6, 2020 at 8:00 a.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and archived later in the day for replay.

    About Horace Mann

    Horace Mann Educators Corporation (NYSE: HMN) is the largest financial services company focused on providing America’s educators and school employees with insurance and retirement solutions. Founded by Educators for Educators® in 1945, the company is headquartered in Springfield, Illinois. For more information, visit horacemann.com.

    Safe Harbor Statement and Non-GAAP Measures

    Statements included in this news release that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the company’s Quarterly Report on Form 10-Q for the period ended September 30, 2019 and the company’s past and future filings and reports filed with the Securities and Exchange Commission (SEC) for information concerning important factors that could cause actual results to differ materially from those in forward-looking statements. Information contained in this news release include measures which are based on methodologies other than accounting principles generally accepted in the United States (GAAP). Reconciliations of non-GAAP measures to the closest GAAP measures are contained in the Appendix to the Investor Supplement and additional descriptions of the non-GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to the company’s SEC filings.

    HORACE MANN EDUCATORS CORPORATION

    Financial Highlights (Unaudited)

    ($ in Millions, except per share data)

       

     

     

     

     

     

     

     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    $ Change

     

    2019

     

    2018

     

    $ Change

    EARNINGS SUMMARY

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

    33.0

     

     

    $

    (20.3

    )

     

    $

    53.3

     

     

    $

    184.4

     

     

    $

    18.3

     

     

    $

    166.1

     

    Net investment gains (losses), after tax

     

    1.3

     

     

    (11.6

    )

     

    12.9

     

     

    120.2

     

     

    (10.1

    )

     

    130.3

     

    Goodwill impairment

     

     

     

     

     

     

     

    (28.0

    )

     

     

     

    (28.0

    )

    Core earnings*

     

    31.7

     

     

    (8.7

    )

     

    40.4

     

     

    92.2

     

     

    28.4

     

     

    63.8

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Per diluted share:

     

     

     

     

     

     

     

     

     

     

     

     

    Net income

     

    $

    0.78

     

     

    $

    (0.49

    )

     

    1.27

     

     

    $

    4.40

     

     

    $

    0.44

     

     

    3.96

     

    Net investment gains (losses), after tax

     

    $

    0.03

     

     

    $

    (0.28

    )

     

    0.31

     

     

    $

    2.87

     

     

    $

    (0.24

    )

     

    3.11

     

    Goodwill impairment

     

    $

     

     

    $

     

     

     

     

    $

    (0.67

    )

     

    $

     

     

    (0.67

    )

    Core earnings*

     

    $

    0.75

     

     

    $

    (0.21

    )

     

    0.96

     

     

    $

    2.20

     

     

    $

    0.68

     

     

    1.52

     

    Weighted average number of shares and

                                       

    equivalent shares (in millions) – Diluted

     

    42.1

     

     

    41.9

     

     

    0.20

     

     

    41.9

     

     

    41.9

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    RETURN ON EQUITY

     

     

     

     

     

     

     

     

     

     

     

     

    Net income return on equity – LTM (1)

     

    12.5

    %

     

    1.3

    %

     

     

     

    12.5

    %

     

    1.3

    %

     

     

    Net income return on equity – annualized

     

    8.4

    %

     

    (6.3

    )%

     

     

     

     

     

     

     

     

    Core return on equity – LTM* (2)

     

    7.3

    %

     

    2.3

    %

     

     

     

    7.3

    %

     

    2.3

    %

     

     

    Core return on equity – annualized*

     

    9.6

    %

     

    (2.9

    )%

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    FINANCIAL POSITION

     

     

     

     

     

     

     

     

     

     

     

     

    Per share (3):

     

     

     

     

     

     

     

     

     

     

     

     

    Book value

     

     

     

     

     

     

     

    $

    38.01

     

     

    $

    31.50

     

     

    6.51

     

    Effect of net unrealized investment gains on fixed
    maturity securities (4)

     

     

     

     

     

     

     

    $

    5.59

     

     

    $

    2.37

     

     

    3.22

     

    Dividends paid

     

    $

    0.2875

     

     

    $

    0.2850

     

     

    0.0025

     

     

    $

    1.15

     

     

    $

    1.14

     

     

    0.01

     

    Ending number of shares outstanding (in millions) (3)

     

     

     

     

     

     

     

    41.2

     

     

    41.0

     

     

    0.2

     

    Total assets

     

     

     

     

     

     

     

    $

    12,478.7

     

     

    $

    11,031.9

     

     

    1,446.8

     

    Short-term debt

     

     

     

     

     

     

     

    135.0

     

     

     

     

    135.0

     

    Long-term debt

     

     

     

     

     

     

     

    298.0

     

     

    297.7

     

     

    0.3

     

    Total shareholders’ equity

     

     

     

     

     

     

     

    1,567.3

     

     

    1,290.6

     

     

    276.7

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ADDITIONAL INFORMATION

     

     

     

     

     

     

     

     

     

     

     

     

    Net investment gains (losses)

     

     

     

     

     

     

     

     

     

     

     

     

    Before tax

     

    $

    1.7

     

     

    $

    (14.4

    )

     

    16.1

     

     

    $

    153.3

     

     

    $

    (12.5

    )

     

    165.8

     

    After tax

     

    1.3

     

     

    (11.6

    )

     

    12.9

     

     

    120.2

     

     

    (10.1

    )

     

    130.3

     

    Per share, diluted

     

    $

    0.03

     

     

    $

    (0.28

    )

     

    0.31

     

     

    $

    2.87

     

     

    $

    (0.24

    )

     

    3.11

     

    N.M.-

    Not meaningful.

    (1)

    Based on last twelve months net income and average quarter-end shareholders’ equity.

    (2)

    Based on last twelve months core earnings and average quarter-end shareholders’ equity which has been adjusted to exclude the fair value adjustment for investments, net of the related impact on deferred policy acquisition costs and applicable deferred taxes.

    (3)

    Ending shares outstanding were 41,238,324 at December 31, 2019 and 40,969,885 at December 31, 2018.

    (4)

    Net of the related impact on deferred policy acquisition costs and applicable deferred taxes.

    HORACE MANN EDUCATORS CORPORATION

    Statements of Operations and Consolidated Data (Unaudited)

    ($ in Millions)

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

    STATEMENTS OF OPERATIONS

     

     

     

     

     

     

     

     

     

     

     

     

    Insurance premiums and contract charges earned

     

    $

    240.4

     

     

    $

    201.9

     

     

    19.1

    %

     

    $

    898.0

     

     

    $

    817.3

     

     

    9.9

    %

    Net investment income

     

    85.8

     

     

    88.4

     

     

    -2.9

    %

     

    365.1

     

     

    376.5

     

     

    -3.0

    %

    Net investment gains (losses)

     

    1.7

     

     

    (14.4

    )

     

    111.8

    %

     

    153.3

     

     

    (12.5

    )

     

    N.M.

    Other income

     

    3.5

     

     

    2.6

     

     

    34.6

    %

     

    14.1

     

     

    10.3

     

     

    36.9

    %

    Total revenues

     

    331.4

     

     

    278.5

     

     

    19.0

    %

     

    1,430.5

     

     

    1,191.6

     

     

    20.0

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Benefits, claims and settlement expenses

     

    138.8

     

     

    163.9

     

     

    -15.3

    %

     

    585.1

     

     

    637.6

     

     

    -8.2

    %

    Interest credited

     

    52.7

     

     

    53.0

     

     

    -0.6

    %

     

    212.8

     

     

    206.2

     

     

    3.2

    %

    Operating expenses

     

    65.0

     

     

    56.0

     

     

    16.1

    %

     

    234.6

     

     

    205.4

     

     

    14.2

    %

    DAC unlocking and amortization expense

     

    26.3

     

     

    30.5

     

     

    -13.8

    %

     

    109.2

     

     

    109.9

     

     

    -0.6

    %

    Intangible asset amortization expense

     

    3.9

     

     

     

     

    N.M.

     

    8.8

     

     

     

     

    N.M.

    Interest expense

     

    4.4

     

     

    3.3

     

     

    33.3

    %

     

    15.6

     

     

    13.0

     

     

    20.0

    %

    Other expense – goodwill impairment

     

     

     

     

     

     

     

    28.0

     

     

     

     

    N.M.

    Total benefits, losses and expenses

     

    291.1

     

     

    306.7

     

     

    -5.1

    %

     

    1,194.1

     

     

    1,172.1

     

     

    1.9

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income before income taxes

     

    40.3

     

     

    (28.2

    )

     

    N.M.

     

    236.4

     

     

    19.5

     

     

    N.M.

    Income tax expense (benefit)

     

    7.3

     

     

    (7.9

    )

     

    N.M.

     

    52.0

     

     

    1.2

     

     

    N.M.

    Net income

     

    $

    33.0

     

     

    $

    (20.3

    )

     

    N.M.

     

    $

    184.4

     

     

    $

    18.3

     

     

    N.M.

     

     

     

     

     

     

     

     

     

     

     

     

     

    PREMIUMS WRITTEN AND CONTRACT DEPOSITS*

     

     

     

     

     

     

     

     

     

     

    Property and Casualty

     

    $

    164.6

     

     

    $

    166.4

     

     

    -1.1

    %

     

    $

    683.1

     

     

    $

    681.5

     

     

    0.2

    %

    Supplemental

     

    33.0

     

     

     

     

     

     

    65.7

     

     

     

     

     

    Annuity contract deposits

     

    117.9

     

     

    113.1

     

     

    4.2

    %

     

    462.5

     

     

    439.1

     

     

    5.3

    %

    Life

     

    30.7

     

     

    31.7

     

     

    -3.2

    %

     

    113.2

     

     

    114.4

     

     

    -1.0

    %

    Total

     

    $

    346.2

     

     

    $

    311.2

     

     

    11.2

    %

     

    $

    1,324.5

     

     

    $

    1,235.0

     

     

    7.2

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    SEGMENT NET INCOME (LOSS)

     

     

     

     

     

     

     

     

     

     

     

     

    Property and Casualty

     

    $

    20.0

     

     

    $

    (9.9

    )

     

    N.M.

     

    $

    54.3

     

     

    $

    (14.3

    )

     

    N.M.

    Supplemental

     

    11.1

     

     

     

     

     

     

    18.0

     

     

     

     

     

    Retirement

     

    2.1

     

     

    4.1

     

     

    -48.8

    %

     

    (4.8

    )

     

    41.7

     

     

    -111.5

    %

    Life

     

    4.0

     

     

    3.8

     

     

    5.3

    %

     

    17.6

     

     

    18.8

     

     

    -6.4

    %

    Corporate and Other (1)

     

    (4.2

    )

     

    (18.3

    )

     

    77.0

    %

     

    99.3

     

     

    (27.9

    )

     

    N.M.

    Net income (loss)

     

    $

    33.0

     

     

    $

    (20.3

    )

     

    N.M.

     

    $

    184.4

     

     

    $

    18.3

     

     

    N.M.

    N.M.-

    Not meaningful.

    (1)

    Corporate and Other includes interest expense on debt and the impact of net investment gains and losses and other Corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. See detail for this segment on page 12.

    HORACE MANN EDUCATORS CORPORATION

    Business Segment Overview (Unaudited)

    ($ in Millions)

     

     

     

     

     

     

     

     

     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

    PROPERTY and CASUALTY

     

     

     

     

     

     

     

     

     

     

     

     

    Premiums written*

     

    $

    164.6

     

     

    $

    166.4

     

     

    -1.1

    %

     

    $

    683.1

     

     

    $

    681.5

     

     

    0.2

    %

    Premiums earned

     

    170.9

     

     

    164.3

     

     

    4.0

    %

     

    683.5

     

     

    665.7

     

     

    2.7

    %

    Net investment income

     

    8.1

     

     

    7.9

     

     

    2.5

    %

     

    41.7

     

     

    40.1

     

     

    4.0

    %

    Other income

     

    0.3

     

     

    0.5

     

     

    -40.0

    %

     

    2.0

     

     

    1.9

     

     

    5.3

    %

    Losses and loss adjustment expenses (LAE)

     

    107.4

     

     

    140.0

     

     

    -23.3

    %

     

    475.6

     

     

    547.7

     

     

    -13.2

    %

    Operating expenses (includes amortization expense)

     

    46.7

     

     

    46.1

     

     

    1.3

    %

     

    183.6

     

     

    179.8

     

     

    2.1

    %

    Interest expense

     

    0.3

     

     

    0.3

     

     

    %

     

    1.3

     

     

    1.1

     

     

    18.2

    %

    Income (loss) before tax

     

    24.9

     

     

    (13.7

    )

     

    N.M.

     

    66.7

     

     

    (20.9

    )

     

    N.M.

    Net income (loss) / core earnings*

     

    20.0

     

     

    (9.9

    )

     

    N.M.

     

    54.3

     

     

    (14.3

    )

     

    N.M.

    Net investment income, after tax

     

    7.0

     

     

    6.9

     

     

    1.4

    %

     

    35.4

     

     

    34.5

     

     

    2.6

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Catastrophe costs (1)

     

     

     

     

     

     

     

     

     

     

     

     

    After tax

     

    3.5

     

     

    35.8

     

     

    -90.2

    %

     

    41.1

     

     

    90.1

     

     

    -54.4

    %

    Before tax

     

    4.4

     

     

    45.3

     

     

    -90.3

    %

     

    52.0

     

     

    114.1

     

     

    -54.4

    %

    Prior years’ reserves favorable (adverse)

     

     

     

     

     

     

     

     

     

     

     

     

    development, before tax

                           

    Automobile

     

     

     

     

     

     

     

    5.5

     

     

     

     

    N.M.

    Property and other

     

     

     

     

     

     

     

    2.0

     

     

    0.3

     

     

    N.M.

    Total

     

     

     

     

     

     

     

    7.5

     

     

    0.3

     

     

    N.M.

     

     

     

     

     

     

     

     

     

     

     

     

     

    Operating statistics:

     

     

     

     

     

     

     

     

     

     

     

     

    Loss and loss adjustment expense ratio

     

    62.9

    %

     

    85.2

    %

     

    -22.3

    pts

     

    69.6

    %

     

    82.3

    %

     

    -12.7

    pts

    Expense ratio

     

    27.4

    %

     

    28.1

    %

     

    -0.7

    pts

     

    26.9

    %

     

    27.0

    %

     

    -0.1

    pts

    Combined ratio

     

    90.3

    %

     

    113.3

    %

     

    -23.0

    pts

     

    96.5

    %

     

    109.3

    %

     

    -12.8

    pts

    Effect on the combined ratio of:

     

     

     

     

     

     

     

     

     

     

     

     

    Catastrophe costs (1)

     

    2.6

    %

     

    27.0

    %

     

    -24.4

    pts

     

    7.6

    %

     

    17.1

    %

     

    -9.5

    pts

    Prior years’ (favorable) adverse reserve development

     

    %

     

    %

     

    pts

     

    -1.1

    %

     

    %

     

    -1.1

    pts

    Combined ratio excluding the effects of

                                       

    catastrophe costs and prior years’ reserve

                                       

    development (underlying combined ratio)*

     

    87.7

    %

     

    86.3

    %

     

    1.4

    pts

     

    90.0

    %

     

    92.2

    %

     

    -2.2

    pts

     

     

     

     

     

     

     

     

     

     

     

     

     

    Policies in force (in thousands)

     

     

     

     

     

     

     

    627

     

     

    664

     

     

    -5.6

    %

    Automobile (2)

     

     

     

     

     

     

     

    433

     

     

    463

     

     

    -6.5

    %

    Property

     

     

     

     

     

     

     

    194

     

     

    201

     

     

    -3.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Policy renewal rate – 12 months

     

     

     

     

     

     

     

     

     

     

     

     

    Automobile

     

     

     

     

     

     

     

    81.1

    %

     

    81.9

    %

     

    -0.8

    pts

    Property

     

     

     

     

     

     

     

    87.1

    %

     

    88.0

    %

     

    -0.9

    pts

    N.M.-

    Not meaningful.

    (1)

    Includes allocated loss adjustment expenses and, when applicable, catastrophe reinsurance reinstatement premiums.

    (2)

    December 31, 2019 includes assumed policies in force of 4.

    HORACE MANN EDUCATORS CORPORATION

    Business Segment Overview (Unaudited)

    ($ in Millions)

                     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

    SUPPLEMENTAL

     

     

     

     

     

     

     

     

     

     

     

     

    Premiums and contract charges earned

     

    $

    32.9

     

     

    N/A

     

    N/A

     

    $

    65.8

     

     

    N/A

     

    N/A

    Net investment income

     

    3.8

     

     

    N/A

     

    N/A

     

    7.5

     

     

    N/A

     

    N/A

    Other income

     

    0.8

     

     

    N/A

     

    N/A

     

    1.4

     

     

    N/A

     

    N/A

    Benefits

     

    10.6

     

     

    N/A

     

    N/A

     

    21.7

     

     

    N/A

     

    N/A

    Change in reserves

     

    (0.6

    )

     

    N/A

     

    N/A

     

    3.0

     

     

    N/A

     

    N/A

    Operating expenses (includes DAC unlocking and amortization expense)

     

    9.9

     

     

    N/A

     

    N/A

     

    20.4

     

     

    N/A

     

    N/A

    Intangible asset amortization expense

     

    3.4

     

     

    N/A

     

    N/A

     

    6.6

     

     

    N/A

     

    N/A

    Income before tax

     

    14.2

     

     

    N/A

     

    N/A

     

    23.0

     

     

    N/A

     

    N/A

    Net income / core earnings*

     

    11.1

     

     

    N/A

     

    N/A

     

    18.0

     

     

    N/A

     

    N/A

     

     

     

     

     

     

     

     

     

     

     

     

     

    Benefits ratio (1)

     

    30.4

    %

     

    N/A

     

    N/A

     

    37.5

    %

     

    N/A

     

    N/A

    Operating expense ratio (2)

     

    26.4

    %

     

    N/A

     

    N/A

     

    27.3

    %

     

    N/A

     

    N/A

    Pretax profit margin (3)

     

    37.9

    %

     

    N/A

     

    N/A

     

    30.8

    %

     

    N/A

     

    N/A

     

     

     

     

     

     

     

     

     

     

     

     

     

    Premium persistency (rolling 12 months)

     

    89.3

    %

     

    N/A

     

    N/A

     

    89.3

    %

     

    N/A

     

    N/A

    N/A

    – The acquisition of NTA closed on July 1, 2019.

    (1)

    Ratio of benefits plus change in reserves to earned premium.

    (2)

    Ratio of operating expenses to total revenues.

    (3)

    Ratio of income before taxes to total revenues.

    HORACE MANN EDUCATORS CORPORATION

    Business Segment Overview (Unaudited)

    ($ in Millions)

                     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

    RETIREMENT

     

     

     

     

     

     

     

     

     

     

     

     

    Contract deposits*

     

    $

    117.9

     

     

    $

    113.1

     

     

    4.2

    %

     

    $

    462.5

     

     

    $

    439.1

     

     

    5.3

    %

    Variable

     

    59.8

     

     

    54.5

     

     

    9.7

    %

     

    217.3

     

     

    205.8

     

     

    5.6

    %

    Fixed

     

    58.1

     

     

    58.6

     

     

    -0.9

    %

     

    245.2

     

     

    233.3

     

     

    5.1

    %

    Contract charges earned

     

    7.0

     

     

    7.3

     

     

    -4.1

    %

     

    29.1

     

     

    31.2

     

     

    -6.7

    %

    Net investment income

     

    33.5

     

     

    62.9

     

     

    -46.7

    %

     

    174.7

     

     

    262.6

     

     

    -33.5

    %

    Interest credited

     

    16.4

     

     

    41.7

     

     

    -60.7

    %

     

    93.6

     

     

    161.1

     

     

    -41.9

    %

    Net interest margin

     

    17.1

     

     

    21.2

     

     

    -19.3

    %

     

    81.1

     

     

    101.5

     

     

    -20.1

    %

    Investment income – deposit asset on reinsurance

     

    23.8

     

     

     

     

    N.M.

     

    70.8

     

     

     

     

    N.M.

    Interest credited – Reinsured block

     

    25.0

     

     

     

     

    N.M.

     

    74.2

     

     

     

     

    N.M.

    Net interest margin – Reinsured block

     

    (1.2

    )

     

     

     

    N.M.

     

    (3.4

    )

     

     

     

    N.M.

    Other income

     

    1.8

     

     

    1.7

     

     

    5.9

    %

     

    8.9

     

     

    7.0

     

     

    27.1

    %

    Mortality loss and other reserve changes

     

    (2.6

    )

     

    (2.8

    )

     

    7.1

    %

     

    (5.3

    )

     

    (7.6

    )

     

    30.3

    %

    Operating expenses (includes DAC unlocking and amortization expense)

     

    20.2

     

     

    23.7

     

     

    -14.8

    %

     

    82.0

     

     

    80.4

     

     

    2.0

    %

    Intangible asset amortization expense

     

    0.5

     

     

     

     

    N.M.

     

    2.2

     

     

     

     

    N.M.

    Other expense – goodwill impairment

     

     

     

     

     

     

     

    28.0

     

     

     

     

    N.M.

    Income (loss) before tax

     

    1.4

     

     

    3.7

     

     

    -62.2

    %

     

    (1.8

    )

     

    51.7

     

     

    -103.5

    %

    Net income (loss)

     

    2.1

     

     

    4.1

     

     

    -48.8

    %

     

    (4.8

    )

     

    41.7

     

     

    -111.5

    %

    Core earnings*

     

    2.1

     

     

    4.1

     

     

    -48.8

    %

     

    23.2

     

     

    41.7

     

     

    -44.4

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Pretax income increase (decrease) due to evaluation of:

     

     

     

     

     

     

     

     

     

     

     

     

    Deferred policy acquisition costs

     

    $

    0.1

     

     

    $

    (3.8

    )

     

    -102.6

    %

     

    $

    (3.5

    )

     

    $

    (3.9

    )

     

    -10.3

    %

    Guaranteed minimum death benefit reserve

     

     

     

    (0.1

    )

     

    -100.0

    %

     

    0.1

     

     

    (0.1

    )

     

    N.M.

    Retirement contracts in force (in thousands)

     

     

     

     

     

     

     

    229

     

     

    226

     

     

    1.3

    %

    Annuity accumulated account value on deposit /

                                   

    Assets under management

     

     

     

     

     

     

     

    4,379.6

     

     

    $

    6,713.3

     

     

    -34.8

    %

    Variable (1)

     

     

     

     

     

     

     

    1,782.7

     

     

    2,001.1

     

     

    -10.9

    %

    Fixed

     

     

     

     

     

     

     

    2,596.9

     

     

    4,712.2

     

     

    -44.9

    %

    Annuity accumulated value retention – 12 months

     

     

     

     

     

     

     

     

     

     

     

     

    Variable accumulations

     

     

     

     

     

     

     

    94.7

    %

     

    94.4

    %

     

    0.3

    pts

    Fixed accumulations

     

     

     

     

     

     

     

    94.0

    %

     

    94.0

    %

     

    pts

     

     

     

     

     

     

     

     

     

     

     

     

     

    LIFE

     

     

     

     

     

     

     

     

     

     

     

     

    Premiums and contract deposits*

     

    $

    30.7

     

     

    $

    31.7

     

     

    -3.2

    %

     

    $

    113.2

     

     

    $

    114.4

     

     

    -1.0

    %

    Premiums and contract charges earned

     

    29.6

     

     

    30.3

     

     

    -2.3

    %

     

    119.6

     

     

    120.4

     

     

    -0.7

    %

    Net investment income

     

    17.2

     

     

    17.8

     

     

    -3.4

    %

     

    72.0

     

     

    74.4

     

     

    -3.2

    %

    Other income

     

    0.2

     

     

    0.1

     

     

    100.0

    %

     

    0.4

     

     

    0.3

     

     

    33.3

    %

    Death benefits/mortality cost/change in reserves

     

    18.8

     

     

    21.1

     

     

    -10.9

    %

     

    79.5

     

     

    82.3

     

     

    -3.4

    %

    Interest credited

     

    11.3

     

     

    11.3

     

     

    %

     

    45.0

     

     

    45.1

     

     

    -0.2

    %

    Operating expenses (includes DAC unlocking and amortization expense)

     

    12.2

     

     

    11.1

     

     

    9.9

    %

     

    45.7

     

     

    44.0

     

     

    3.9

    %

    Income before tax

     

    4.7

     

     

    4.7

     

     

    %

     

    21.8

     

     

    23.7

     

     

    -8.0

    %

    Net income / core earnings*

     

    4.0

     

     

    3.8

     

     

    5.3

    %

     

    17.6

     

     

    18.8

     

     

    -6.4

    %

    Pretax income increase (decrease) due to evaluation of:

     

     

     

     

     

     

     

     

     

     

     

     

    Deferred policy acquisition costs

     

    $

    0.2

     

     

    $

    (0.1

    )

     

    N.M.

     

    $

    0.3

     

     

    $

    (0.3

    )

     

    N.M.

    Life policies in force (in thousands)

     

     

     

     

     

     

     

    201

     

     

    199

     

     

    1.0

    %

    Life insurance in force

     

     

     

     

     

     

     

    $

    19,180

     

     

    $

    18,278

     

     

    4.9

    %

    Lapse ratio – 12 months (Ordinary life insurance)

     

     

     

     

     

     

     

    4.6

    %

     

    4.6

    %

     

    pts

    N.M.-

    Not meaningful.

    (1)

    Amount reported as of December 31, 2019 excludes $707.8 of assets under management held under modified coinsurance reinsurance.

    HORACE MANN EDUCATORS CORPORATION

    Business Segment Overview (Unaudited)

    ($ in Millions)

                     

     

     

    Three Months Ended
    December 31,

     

     

     

    Twelve Months Ended
    December 31,

     

     

     

     

    2019

     

    2018

     

    Change

     

    2019

     

    2018

     

    Change

    CORPORATE AND OTHER (1)

     

     

     

     

     

     

     

     

     

     

     

     

    Components of income (loss) before tax:

     

     

     

     

     

     

     

     

     

     

     

     

    Net investment gains (losses)

     

    $

    1.7

     

     

    $

    (14.4

    )

     

    111.8

    %

     

    $

    153.3

     

     

    $

    (12.5

    )

     

    N.M.

    Interest expense

     

    (4.1

    )

     

    (3.0

    )

     

    -36.7

    %

     

    (14.3

    )

     

    (11.9

    )

     

    -20.2

    %

    Other operating expenses, net investment income and other income

     

    (2.5

    )

     

    (5.5

    )

     

    54.5

    %

     

    (12.3

    )

     

    (10.6

    )

     

    -16.0

    %

    Income (loss) before tax

     

    (4.9

    )

     

    (22.9

    )

     

    78.6

    %

     

    126.7

     

     

    (35.0

    )

     

    N.M.

    Net income (loss)

     

    (4.2

    )

     

    (18.3

    )

     

    77.0

    %

     

    99.3

     

     

    (27.9

    )

     

    N.M.

     

     

     

     

     

     

     

     

     

     

     

     

     

    INVESTMENTS

     

     

     

     

     

     

     

     

     

     

     

     

    Retirement and Life

     

     

     

     

     

     

     

     

     

     

     

     

    Fixed maturity securities, at fair value

                                     

    (amortized cost 2019, $4,151.1; 2018, $6,569.3)

     

     

     

     

     

     

     

    $

    4,427.0

     

     

    $

    6,703.7

     

     

    -34.0

    %

    Equity securities, at fair value

     

     

     

     

     

     

     

    79.4

     

     

    73.4

     

     

    8.2

    %

    Short-term investments

     

     

     

     

     

     

     

    113.6

     

     

    97.9

     

     

    16.0

    %

    Policy loans

     

     

     

     

     

     

     

    152.7

     

     

    154.0

     

     

    -0.8

    %

    Limited partnerships

     

     

     

     

     

     

     

    253.1

     

     

    247.6

     

     

    2.2

    %

    Other investments

     

     

     

     

     

     

     

    34.8

     

     

    17.9

     

     

    94.4

    %

    Total Retirement and Life investments

     

     

     

     

     

     

     

    5,060.6

     

     

    7,294.5

     

     

    -30.6

    %

    Property and Casualty

     

     

     

     

     

     

     

     

     

     

     

     

    Fixed maturity securities, at fair value

                                 

    (amortized cost 2019, $846.8; 2018, $804.6)

     

     

     

     

     

     

     

    899.5

     

     

    811.6

     

     

    10.8

    %

    Equity securities, at fair value

     

     

     

     

     

     

     

    21.1

     

     

    38.4

     

     

    -45.1

    %

    Short-term investments

     

     

     

     

     

     

     

    0.2

     

     

    19.0

     

     

    -98.9

    %

    Limited partnerships

     

     

     

     

     

     

     

    114.5

     

     

    80.8

     

     

    41.7

    %

    Other investments

     

     

     

     

     

     

     

    1.0

     

     

    1.0

     

     

    %

    Total Property and Casualty investments

     

     

     

     

     

     

     

    1,036.3

     

     

    950.8

     

     

    9.0

    %

    Supplemental

     

     

     

     

     

     

     

     

     

     

     

     

    Fixed maturity securities, at fair value

                             

    (amortized cost 2019, $459.1)

     

     

     

     

     

     

     

    465.2

     

     

    N/A

     

    N/A

    Equity securities, at fair value

     

     

     

     

     

     

     

    1.4

     

     

    N/A

     

    N/A

    Short-term investments

     

     

     

     

     

     

     

    57.5

     

     

    N/A

     

    N/A

    Policy loans

     

     

     

     

     

     

     

    0.8

     

     

    N/A

     

    N/A

    Limited partnerships

     

     

     

     

     

     

     

    16.0

     

     

    N/A

     

    N/A

    Other investments

     

     

     

     

     

     

     

     

     

    N/A

     

    N/A

    Total Supplemental investments

     

     

     

     

     

     

     

    540.9

     

     

    N/A

     

    N/A

    Corporate investments

     

     

     

     

     

     

     

    1.4

     

     

    5.4

     

     

    -74.1

    %

    Total investments

     

     

     

     

     

     

     

    6,639.2

     

     

    8,250.7

     

     

    -19.5

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

    Net investment income – investment portfolio

     

     

     

     

     

     

     

     

     

     

     

     

    Before tax

     

    $

    62.0

     

     

    $

    88.4

     

     

    -29.9

    %

     

    $

    294.3

     

     

    $

    376.5

     

     

    -21.8

    %

    After tax

     

    49.5

     

     

    70.6

     

     

    -29.9

    %

     

    235.0

     

     

    300.3

     

     

    -21.7

    %

    Investment income – deposit asset on reinsurance

     

     

     

     

     

     

     

     

     

     

     

     

    Before tax

     

    23.8

     

     

     

     

    N.M.

     

    70.8

     

     

     

     

    N.M.

    After tax

     

    18.8

     

     

     

     

    N.M.

     

    55.9

     

     

     

     

    N.M.

    N.M.-

    Not meaningful.

    (1)

    The Corporate and Other segment includes interest expense on debt and the impact of investment gains and losses and other corporate level items. The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments.

     

    Contacts

    Heather J. Wietzel
    Vice President, Investor Relations
    217-788-5144
    investorrelations@horacemann.com

    Originally Posted at Business Wire on February 5, 2020 by Horace Mann Educators Corporation.

    Categories: Industry Articles
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