Horace Mann Educators (HMN) Q2 2025 earnings summary

Executive summary

• Second-quarter core EPS reached $1.06, up 293% year-over-year, with net income of $29.4M and total revenues up 6%.

• Core ROE for the last twelve months was 12.6%, up 6.1 points year-over-year.

• Life & Retirement core earnings doubled year-over-year, driven by higher investment income and lower mortality costs.

• Individual Supplemental sales surged 43% year-over-year, and Auto sales rose 6%.

• Book value per share rose 12.5% year-over-year to $33.31, with adjusted book value at $38.46.

Financial highlights

• Net premiums and contract charges earned increased 8% year-over-year; total revenues reached $412M.

• Property & Casualty segment core earnings were $16.5M, with a combined ratio improved to 97.0%.

• Life & Retirement segment core earnings doubled year-over-year, with strong persistency and higher investment income.

• Individual Supplemental sales hit a record $6M, up 43% year-over-year; benefit ratio at 27.7%.

• Net investment income rose 2.2% to $110.8M for the quarter.

Outlook and guidance

• Full-year 2025 core EPS guidance raised to $4.15–$4.45, with core earnings expected at $170–$185M.

• Catastrophe loss guidance remains at $90M for the year, based on a five-year average.

• Net investment income projected at $470M–$480M pre-tax for 2025.

• Company targets double-digit ROE and mid-90s combined ratio for Auto, 90 or below for Property.

• Strategy focuses on sustained, profitable growth and expanding market share in the education sector.