Download PDF

1. Company Snapshot

1.a. Company Description

Horace Mann Educators Corporation, together with its subsidiaries, operates as an insurance holding company in the United States.It operates in three segments: Property & Casualty, Life & Retirement, and Supplemental & Group Benefits.The company underwrites and markets personal lines of property and casualty insurance, including personal lines auto and property insurance products; supplemental insurance products, which include cancer, heart, hospital, supplemental disability, and accident coverages; retirement products, such as tax-qualified fixed and variable annuities; and life insurance products comprising whole life and term, as well as indexed universal life insurance products.


It also offers student loan solutions, including online student loan management accounts for educators.The company markets its products through its sales force of full-time exclusive agents to K-12 teachers, administrators, and other employees of public schools and their families.Horace Mann Educators Corporation was founded in 1945 and is headquartered in Springfield, Illinois.

Show Full description

1.b. Last Insights on HMN

Horace Mann Educators Corporation's recent performance was driven by strong Q2 2025 earnings, which beat estimates with $1.06 per share, a significant increase from $0.2 per share a year ago. The company's core EPS guidance was raised for the year, reflecting solid financial results. A quarterly dividend of $0.35 per share was declared, showcasing a disciplined capital return policy. Recent acquisitions and low market penetration offer growth potential. The company was upgraded to a Zacks Rank #2 (Buy), citing growing optimism about its earnings prospects.

1.c. Company Highlights

2. Horace Mann Educators' Q3 Earnings Shine with Record Core EPS

Horace Mann Educators reported a stellar third quarter with record core EPS of $1.36, a 64% surge over the prior year, and a trailing 12-month core return on equity of 13.8%. Total revenues for the quarter rose 6% year-over-year, driven by a 7% increase in net premiums and contract charges earned. The company's core EPS significantly beat estimates of $1.04, underscoring its robust financial performance. The Property and Casualty segment saw core earnings triple to $32 million, with a combined ratio of 87.8%, a 10.1-point improvement over the prior year.

Publication Date: Nov -24

📋 Highlights
  • Record Q3 Core EPS:: $1.36, up 64% YoY, with trailing 12-month ROE at 13.8%.
  • Property & Casualty Surge:: Core earnings tripled to $32M, combined ratio improved 10.1 points to 87.8%.
  • Full-Year Guidance Raised:: Core EPS now $4.50–$4.70, reflecting $65M in cat losses and $473–477M net investment income.
  • Strong Revenue Growth:: Total revenues +6% YoY, driven by 7%+ growth in net premiums and contract charges.
  • Capital Returns:: $20M in buybacks and $43M in dividends, alongside $300M senior notes issuance at 4.7% coupon.

Segmental Performance

The Life and Retirement segment contributed core earnings of $15 million, consistent with the prior year, while net written premiums and contract deposits rose to $170 million. The Supplemental and Group Benefits segment delivered $18 million in core earnings, with individual supplemental sales up 40% and Group Benefits sales nearly doubling. The company's diversified business segments and strategic investments are driving growth, with a focus on increasing its share of the education market.

Strategic Investments and Growth Initiatives

Horace Mann is investing strategically to drive future growth, having grown its network of benefit specialists by nearly 30% and introduced new cancer coverage. The company has also partnered with Teach for America and Grand Canyon University to provide tailored solutions to educators. These initiatives are expected to drive long-term growth and profitability, with the company targeting a 10% average compound annual growth rate in core EPS by 2028.

Valuation and Dividend

With a Price-to-Book Ratio of 1.41 and a Dividend Yield of 2.99%, Horace Mann's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's return on equity of 10.62% is also attractive, indicating efficient capital allocation. The updated EPS guidance of $4.50-$4.70 implies a strong fourth quarter, and analysts estimate revenue growth of 6.5% for the next year, suggesting a positive outlook for the company.

Underwriting Profitability and Catastrophe Mitigation

The company's Property and Casualty segment achieved a combined ratio of 87.8%, indicating strong underwriting profitability. Horace Mann's catastrophe mitigation efforts are also yielding results, with $65 million in losses versus an expected $90 million. The company targets a mid-90s combined ratio for auto and a Property combined ratio at or below 90%, demonstrating its commitment to maintaining profitability targets within P&C.

3. NewsRoom

Card image cap

Horace Mann Partners with National Fitness Brands to Support the Health and Wellness of Educators Nationwide

Dec -04

Source: businesswire.com

Card image cap

Horace Mann declares quarterly dividend

Dec -03

Source: businesswire.com

Card image cap

Analyzing Horace Mann Educators (NYSE:HMN) and Ping An Insurance Co. of China (OTCMKTS:PNGAY)

Nov -23

Source: defenseworld.net

Card image cap

Horace Mann Educators Corporation (HMN) Hit a 52 Week High, Can the Run Continue?

Nov -06

Source: zacks.com

Card image cap

Horace Mann Expands Reach to Educators Through Alumni Associations

Nov -06

Source: businesswire.com

Card image cap

Horace Mann Educators Corporation (HMN) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

Card image cap

Horace Mann (HMN) Q3 Earnings and Revenues Surpass Estimates

Nov -05

Source: zacks.com

Card image cap

Horace Mann Educators Corporation $HMN Shares Sold by State of New Jersey Common Pension Fund D

Nov -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.90%)

6. Segments

Property & Casualty

Expected Growth: 7.5%

Horace Mann Educators Corporation's 7.5% growth in Property & Casualty is driven by increasing demand for educator-focused insurance products, expansion into new markets, and strategic partnerships. Additionally, favorable underwriting results, rate increases, and a strong agency network contribute to the segment's growth.

Life & Retirement

Expected Growth: 8.5%

Horace Mann Educators Corporation's Life & Retirement segment growth of 8.5% is driven by increasing demand for retirement savings products, expansion of distribution channels, and strategic partnerships. Additionally, the company's focus on educator-specific financial solutions and digital platform enhancements have contributed to the growth.

Supplemental & Group Benefits

Expected Growth: 7.8%

Horace Mann Educators Corporation's Supplemental & Group Benefits segment growth of 7.8% is driven by increasing demand for educator-focused insurance products, expansion of distribution channels, and strategic partnerships. Additionally, the company's digital platform enhancements and targeted marketing efforts have improved customer engagement and retention, contributing to the segment's growth.

Intersegment Eliminations

Expected Growth: 0.0%

Intersegment Eliminations from Horace Mann Educators Corporation shows 0.0% growth, driven by the absence of significant transactions between segments, stable reinsurance agreements, and consistent internal pricing mechanisms, resulting in no eliminations required to reconcile segment financials.

Corporate & Other

Expected Growth: 6.2%

The 6.2% growth in Corporate & Other segment of Horace Mann Educators Corporation is driven by increased annuity deposits, expansion of strategic partnerships, and effective cost management. Additionally, the company's focus on digital transformation and process improvements have contributed to the growth.

7. Detailed Products

Auto Insurance

Personalized auto insurance coverage for educators, with discounts for being a good student, being a non-smoker, and having a good driving record.

Home Insurance

Comprehensive home insurance coverage for educators, with discounts for having a home security system and being a non-smoker.

Life Insurance

Term life insurance and whole life insurance options for educators, with coverage up to $1 million.

Retirement Annuities

Tax-deferred retirement annuities for educators, with options for fixed or variable annuities.

Student Loan Solutions

Refinancing options for educators to consolidate and simplify their student loans.

Identity Protection

Comprehensive identity protection services for educators, including credit monitoring and identity theft resolution.

8. Horace Mann Educators Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Horace Mann Educators Corporation operates in a niche market, providing insurance and financial services to educators. While there are substitutes available, the company's specialized products and services reduce the threat of substitutes.

Bargaining Power Of Customers

Horace Mann Educators Corporation's customers are primarily educators, who have limited bargaining power due to their individual nature and lack of collective bargaining.

Bargaining Power Of Suppliers

Horace Mann Educators Corporation's suppliers are primarily insurance carriers and financial institutions, which have limited bargaining power due to the company's specialized market and established relationships.

Threat Of New Entrants

The insurance and financial services industry has high barriers to entry, including regulatory requirements and capital requirements, which reduce the threat of new entrants.

Intensity Of Rivalry

Horace Mann Educators Corporation operates in a competitive market, but its specialized products and services and established relationships with educators reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.72%
Debt Cost 5.31%
Equity Weight 68.28%
Equity Cost 5.31%
WACC 5.31%
Leverage 46.46%

11. Quality Control: Horace Mann Educators Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Horace Mann Educators

A-Score: 7.3/10

Value: 7.3

Growth: 5.0

Quality: 5.7

Yield: 7.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Universal Insurance Holdings

A-Score: 6.8/10

Value: 8.3

Growth: 6.2

Quality: 6.6

Yield: 6.0

Momentum: 8.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
HCI Group

A-Score: 6.6/10

Value: 5.6

Growth: 8.2

Quality: 7.8

Yield: 3.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
Safety Insurance

A-Score: 6.3/10

Value: 7.4

Growth: 3.9

Quality: 7.1

Yield: 8.0

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Global Indemnity

A-Score: 5.3/10

Value: 6.1

Growth: 4.2

Quality: 5.9

Yield: 8.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Skyward Specialty Insurance

A-Score: 4.9/10

Value: 6.1

Growth: 8.3

Quality: 6.7

Yield: 0.0

Momentum: 4.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.63$

Current Price

43.63$

Potential

-0.00%

Expected Cash-Flows