Horace Mann Educators (HMN) Q1 2025 earnings summary

Executive summary

• First-quarter 2025 net income rose 44% year-over-year to $38.2 million, or $0.92 per share, with core earnings of $45 million, or $1.07 per share, driven by strong Property & Casualty results and investment income.

• Core EPS increased 73% to $1.07, and core ROE improved to 10.6%, up 4.9 points year-over-year.

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

• Book value per share grew 11% to $32.79, and adjusted book value per share rose 4% to $38.05.

• Management highlights progress on profitability restoration and ongoing execution of growth strategy, aiming for record core earnings and double-digit ROE in 2025.

Financial highlights

• Core earnings of $45 million, or $1.07 per share, up 73% year-over-year; net income up 44% to $38.2 million.

• Core ROE of 10.6%, a 4.9-point improvement year-over-year.

• Net investment income of $116 million, up 10% year-over-year; managed portfolio income up 15%.

• P&C net written premiums of $185 million, up 8%; property net written premiums up 15%; auto net written premiums up 4%.

• Book value per share at $32.79; adjusted book value per share at $38.05.

Outlook and guidance

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

• Catastrophe loss guidance remains at $90 million for the year, in line with historical averages.

• Net investment income projected at $470–$480 million for 2025.

• Management expects double-digit ROE for 2025.

• Long-term targets include P&C combined ratio in the low 90s and S&GB blended benefit ratio of 39%.