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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.

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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' Strong 2025 Results and Promising 2026 Outlook

Horace Mann Educators reported record 2025 full-year core earnings per share of $4.71, with a shareholder return on equity of 12.4%. Total revenues increased 7% over the prior year, driven by a more than 7% rise in net premiums and contract deposits earned. The company's Property and Casualty segment saw an underlying combined ratio improvement to 84.3%, a 5-point improvement year-over-year, indicating enhanced underwriting profitability. The Life and Retirement segment achieved record life sales in the fourth quarter, up 21% over the prior year, while retirement deposits increased 4%. The Supplemental and Group Benefits segment generated 25% of core earnings, with a benefit ratio of 37%.

Publication Date: Feb -17

📋 Highlights
  • Record 2025 Core Earnings: Achieved $4.71 per share, a 16% increase from normalized 2025 baseline of $3.95.
  • Revenue Growth: Total revenues rose 7% YoY, with net premiums and deposits up over 7%.
  • Segment Sales Surge: Individual supplemental sales jumped 40%, Group Benefits sales increased 33%.
  • 2026 Earnings Guidance: $4.20–$4.50 per share (10% growth over 2025 baseline), with $485–495M net investment income.
  • Cost Efficiency Target: Aims to reduce expense ratio by 100–150 bps over three years, alongside 9% tangible book value growth.

Segment Performance

The company delivered strong performance across all segments, with individual supplemental sales increasing nearly 40% and Group Benefits recording a 33% increase. The Life and Retirement segment's strong sales momentum is expected to continue, driven by the company's growth initiatives and optimized expense structure. Marita Zuraitis noted that 2025 is expected to be the strongest year from a distribution perspective, driven by strong sales momentum across all businesses, brand awareness up 35%, and significant increases in website traffic and quoting from website traffic.

Guidance and Outlook

Horace Mann provided 2026 core earnings per share guidance of $4.20 to $4.50, representing a nearly 10% increase over the normalized 2025 baseline. This guidance includes total net investment income in the range of $485 million to $495 million. The company continues to invest in growth initiatives and optimize its expense structure, targeting a 100 to 150 basis point reduction in the expense ratio over the next three years. With a strong balance sheet and a tangible book value per share increase of more than 9% year-over-year, Horace Mann is well-positioned for future growth.

Valuation and Return Metrics

With a Price-to-Book Ratio of 1.19, the company's valuation appears reasonable, especially considering its Return on Equity (ROE) of 11.52%. The Dividend Yield of 3.29% adds to the attractiveness of the stock. The company's target of a 10% annual earnings per share growth rate is expected to drive future returns, and its strong balance sheet and cash flow generation capabilities provide flexibility for share repurchases and other strategic initiatives.

Key Growth Drivers

The company's growth is expected to be driven by its investments in sales and revenue growth initiatives, as well as its expanding agent network, which is up 15% from last year. Significant partnerships, such as the one with Crayola, are also expected to contribute to the company's growth momentum. With a normalized 2025 core earnings per share of approximately $3.95, the company is on track to achieve its long-term growth targets.

3. NewsRoom

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3 Overlooked Dividend Stocks for Choppy Markets in 2026

Feb -18

Source: marketbeat.com

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Horace Mann Launches Exclusive Program that Offers Fitness, Financial Wellness, and Exclusive Discounts to Support Educators Nationwide

Feb -17

Source: businesswire.com

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Horace Mann Educators Corporation (HMN) Q4 2025 Earnings Call Transcript

Feb -04

Source: seekingalpha.com

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Compared to Estimates, Horace Mann (HMN) Q4 Earnings: A Look at Key Metrics

Feb -04

Source: zacks.com

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Horace Mann (HMN) Q4 Earnings Surpass Estimates

Feb -03

Source: zacks.com

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Horace Mann Educators Corporation $HMN Position Increased by AlphaQuest LLC

Feb -02

Source: defenseworld.net

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Brokerages Set Horace Mann Educators Corporation (NYSE:HMN) Price Target at $46.75

Jan -22

Source: defenseworld.net

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Horace Mann to announce fourth-quarter and full-year 2025 financial results on February 3

Jan -12

Source: businesswire.com

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: 7.4

Growth: 5.1

Quality: 5.9

Yield: 7.0

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Universal Insurance Holdings

A-Score: 7.1/10

Value: 8.2

Growth: 6.2

Quality: 6.6

Yield: 6.0

Momentum: 9.5

Volatility: 6.0

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HCI Group

A-Score: 6.7/10

Value: 6.6

Growth: 8.2

Quality: 7.4

Yield: 3.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Safety Insurance

A-Score: 6.2/10

Value: 7.1

Growth: 3.9

Quality: 6.0

Yield: 8.0

Momentum: 2.5

Volatility: 9.7

1-Year Total Return ->

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Global Indemnity

A-Score: 5.7/10

Value: 8.0

Growth: 4.2

Quality: 6.0

Yield: 8.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

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Skyward Specialty Insurance

A-Score: 5.2/10

Value: 6.5

Growth: 8.1

Quality: 7.0

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

43.12$

Current Price

43.12$

Potential

-0.00%

Expected Cash-Flows