Horace Mann Educators (HMN) Q3 2025 earnings summary

Executive summary

• Achieved record third-quarter core earnings of $57 million ($1.36 per share), with net income up 70% year-over-year to $58.3 million, and strong profitability across all segments, especially in Property & Casualty and Group Benefits.

• Total revenues rose 6% to $439 million, with net premiums and contract charges earned up over 7% year-over-year.

• Sales momentum was robust, with Group sales up 91%, Individual Supplemental up 41%, Life up 16%, Retirement deposits up 9%, Property up 8%, and Auto up 4% compared to the prior year.

• All business segments performed at or above target profitability, supporting accelerated investments in growth and year-to-date results ahead of 2025 financial goals.

• Book value per share grew 11.7% year-over-year to $35.31, and annualized net income ROE reached 16.6% for Q3 2025.

Financial highlights

• Core earnings per share (EPS) for Q3 was $1.36, up 64% from the prior year quarter; diluted EPS was $1.40 for Q3 2025.

• Core ROE reached 13.8%, a 6.4-point improvement year-over-year.

• Net premiums and contract charges earned rose 7.3% for the quarter, led by Property & Casualty and Supplemental & Group Benefits growth.

• Property & Casualty (P&C) core earnings tripled year-over-year to $32 million; combined ratio improved to 87.8%, over 10 points better than the prior year.

• Book value per share grew 11.7% year-over-year; adjusted book value per share at $39.51 as of September 30, 2025.

Outlook and guidance

• Full-year 2025 core EPS guidance raised to $4.50–$4.70, with core earnings expected between $187 million and $195 million.

• Management targets double-digit core ROE and record annual core earnings for 2025.

• Assumes $65 million in catastrophe losses and net investment income of $473–$477 million.

• Long-term targets: 10% average compound annual growth in core EPS and 12–13% core ROE by 2028.

• Segment targets: blended benefit ratio of 39% for Supplemental & Group Benefits, mid-90s combined ratio for Auto, and 90 or below for Property.