Horace Mann Educators (HMN) Q1 2025 earnings summary

Executive summary

• Record first-quarter 2025 core EPS of $1.07, up 73% year-over-year, and net income of $38.2 million, up 44%, driven by strong Property & Casualty results, robust sales, and higher investment income.

• Total revenues reached $416.4 million, an 8% increase year-over-year, reflecting premium growth and investment income gains.

• Core return on equity improved to 10.6%, up 4.9 points year-over-year, with management targeting double-digit ROE for 2025.

• Investments in omnichannel distribution, proprietary CRM system (Catalyst), and business diversification are driving sales and customer engagement.

• Progress on profitability restoration and execution of growth strategy positions the company for record core earnings in 2025.

Financial highlights

• Core earnings of $45 million, or $1.07 per share, up 73% year-over-year; net income per diluted share was $0.92, up 44%.

• Total revenues of $416.4 million, up 8%; net premiums and contract charges earned increased 8.4% to $298.3 million.

• Net investment income rose 10% to $115.9 million; managed portfolio income up 15%.

• Book value per share grew 11% to $32.79; adjusted book value per share up 4% to $38.05.

• Annual dividend increased by 3%, marking the 17th consecutive annual increase; $7 million in share repurchases year-to-date.

Outlook and guidance

• Full-year 2025 core EPS guidance updated to $3.85–$4.15, with core earnings expected between $160 million and $175 million.

• 2025 assumptions: $90 million catastrophe losses, net investment income $470–$480 million, managed portfolio income $370–$380 million.

• Management expects double-digit ROE and record core earnings in 2025.

• Property & Casualty targets: Auto combined ratio in mid-90s, Property at 90 or below.

• Life & Retirement aims for net interest spread of 220–230 bps and mortality in line with actuarial assumptions.