HMN · Horace Mann Educators Corporation

Horace Mann Educators Corporation delivered a strong start to fiscal 2026, reporting record first-quarter core earnings of $52.5 million, or $1.28 per diluted share, marking a 19.6% increase over the prior year period. President and CEO Marita Zuraitis attributed the performance to very strong profitability in the Property & Casualty segment and healthy top-line growth. Total revenues increased 3.1% to $429.3 million, supported by a 6% rise in premiums, contract charges, and fee revenue. The Property & Casualty segment demonstrated significant operational improvement, with the combined ratio tightening to 83.3%, an improvement of more than 5 percentage points compared to the first quarter of 2025. This underwriting strength was a primary driver of the core earnings growth. GAAP net income for the quarter was $41.2 million, or $1.00 per share, compared to $38.2 million, or $0.92 per share, in the same period last year. The difference between GAAP net income and core earnings was primarily attributed to after-tax net investment losses of $1.7 million and non-core earnings adjustments totaling $9.6 million. Capital return remains a priority for the company, with $33 million returned to shareholders during the quarter through dividends and $18 million in share repurchases. Book value per share stood at $36.40 at quarter end, while adjusted book value per share was $40.68. Management expressed confidence in the company's strategic trajectory, maintaining full-year 2026 core EPS guidance in the range of $4.20 to $4.50, reinforcing their three-year strategic goals of a 10% average compound annual growth rate in core earnings per share.