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SEC filingHorace Mann delivered solid revenue and net income growth in Q1 2026, though operating cash flow declined sharply due to annuity outflow timing.
Horace Mann Educators Corporation reported a solid start to 2026, with total revenue increasing 3.1% to $429.3 million compared to $416.4 million in the first quarter of 2025. Net income grew 7.9% to $41.2 million, or $1.00 per diluted share, up from $38.2 million, or $0.92 per diluted share, in the prior-year period. The revenue growth was driven by higher Property & Casualty premiums and increased earned premiums in the Supplemental & Group Benefits segment. Net income benefited from lower catastrophe losses and favorable prior-year reserve development in the P&C segment, partially offset by lower returns from limited partnership investments in the Life & Retirement segment.
The Life & Retirement segment experienced compression in net interest spread as lower returns from limited partnership funds outpaced higher interest credited to policyholders. This was partially offset by growth in the annuity and life insurance blocks.
This segment reported higher earned premiums, contributing to the overall revenue growth. Expense allocations are based on consistent methodologies, and the increase in operating expenses reflects inflation and investments in growth initiatives and infrastructure.
The company anticipates that its sources of capital will continue to generate sufficient capital to meet the needs for business growth, debt interest payments, shareholder dividends, and share repurchase programs. Management remains focused on executing its strategy while navigating market conditions.