Horace Mann Educators (HMN) Investor Day 2025 summary

Who we are and market position

• 80 years serving educators, now the largest multiline financial services company focused on America's educators.

• Strong K-12 educator household penetration, currently serving almost half of U.S. K-12 school locations.

• Over one million educator households served, with significant opportunity in a 14 million household total educator market.

• Diversified product suite includes auto, home, life, retirement, and supplemental health, tailored for educators.

• Business model provides earnings diversification and resilience, supported by high ratings from all major agencies.

Strategy and growth initiatives

• Three-pronged growth strategy: deepen current market penetration, expand to new educator households, and explore adjacent markets through a test-and-learn approach.

• Scaling distribution through exclusive agents, digital channels, partnerships, and a company-led B2B2C entry model.

• Competitive advantages include unique workplace access to educators, integrated omnichannel distribution, payroll integration with schools, proprietary AI-driven CRM, and value-added services.

• Strategic partnerships, such as the Crayola alliance, and event marketing drive market reach, brand awareness, and engagement.

• Cross-sell initiatives, enhanced agent tools, and expansion into higher education, state/local government, and small business owners support growth.

Financial performance and guidance

• Achieved record 2024 core EPS of $3.40 and core ROE of 9.4%, with Q1 2025 core EPS up 72.6% year-over-year and core ROE at 10.6%.

• 2025 guidance: core EPS of $3.85–$4.15, targeting 10%+ core ROE, 75%+ free cash flow conversion, and 10-15% annual new business policy growth.

• High single-digit revenue growth expected, driven by rate actions and organic expansion, with a balanced approach to avoid operational strain.

• 17 consecutive years of dividend increases, $131M in share repurchases since 2011, new $50M buyback authorization, and a 40% payout target.

• Multiline model and diversified $6.9B investment portfolio reduce earnings volatility, with 32% NII growth over five years.