Horace Mann Educators (HMN) Investor presentation summary

Strategic rationale and growth initiatives

• Acquisitions from Medical Mutual of Ohio expand the employer solutions platform, distribution capabilities, and market reach, adding over one million covered lives and 7,000 employer relationships.

• Transactions accelerate long-term profitable growth and strengthen customer relationships, particularly in education and community-oriented sectors.

• Enhanced value proposition through differentiated employee assistance programs, mental health, and wellness services, addressing top workplace needs.

• Growth initiatives focus on increasing high-quality revenue, scaling the platform, and deepening customer engagement.

• Expansion into adjacent customer segments with similar financial profiles and protection needs.

Transaction details and financial impact

• Acquisition involves three businesses: Employee Assistance Program (ESI), Individual Supplemental (RNIC), and Group Benefits (MMLIC), for a net purchase price of approximately $240 million.

• Adds nearly $200 million in annual premium and revenue, with $20-25 million in after-tax core earnings and about 100 basis points to core ROE in the first year post-closing.

• Financing includes $100-150 million in revolving credit borrowings, with the remainder from excess capital; pro forma debt-to-total capitalization under 30%.

• Transactions expected to close between Q4 2026 and Q1 2027, subject to regulatory approvals.

• Deal structure includes legal entity purchases and a reinsurance agreement, diversifying earnings toward high-margin, capital-efficient, low-volatility businesses.

Platform expansion and operational benefits

• Distribution model scaled with over 1,000 new agents and brokers, expanding omnichannel capabilities.

• Group Benefits platform scaled through a capital-efficient reinsurance structure, serving 4,000 employer groups and 245,000 covered lives.

• Individual Supplemental platform expands reach through a diversified agent and broker network, serving adjacent customer segments.

• Enhanced operating leverage and expense optimization from immediate scale benefits and integration of shared services.

• Maintains current dividend and share repurchase strategy, with immediate accretion to core EPS and ROE.