Horace Mann Educators Corporation

Horace Mann reported second-quarter core earnings per share of $1.17, a record for the quarter, up more than 10% year over year. Total revenues increased 8% year over year. P&C core earnings rose 56% year over year to $26 million, and the combined ratio improved 7.0 points to 89.6. Life and Retirement core earnings were $17 million. Management increased full-year 2026 core earnings guidance to $4.60-$4.90 per share, reduced full-year catastrophe loss assumptions to about $75 million from $90 million, and lowered full-year net investment income expectations to $465 million-$475 million, including managed portfolio income of $365 million-$375 million. The company also raised its individual supplemental and group benefits blended benefit ratio assumption to approximately 42% and said interest expense and other corporate items should be $35 million-$40 million.

Marita Zuraitis framed the quarter as evidence that Horace Mann’s diversified model and long-term strategy are working, pointing to operating momentum across P&C, life, and benefits. She emphasized that the company is focused on serving educators with broader solutions, improving distribution, and building longer-lasting customer relationships rather than chasing short-term policy growth. Her tone was confident and steady, and she repeatedly tied the raised guidance back to disciplined execution and the Investor Day strategy.

Ryan Edward Greenier focused on the drivers behind the guidance increase and the segment detail behind the quarter. He said lower catastrophe loss assumptions, lower net investment income expectations, and a higher blended benefit ratio in individual supplemental and group benefits were the main changes to full-year guidance, with about $75 million of catastrophe losses, $465 million-$475 million of total net investment income, and a 42% benefit ratio now assumed. He also noted new money fixed-income yields of 5.85% for the quarter, returned $15 million to shareholders via dividends, and said roughly $37 million remains under the share repurchase authorization. Tangible book value per share increased 10% year over year, and he reiterated a 75% target free cash flow conversion.

Analysts pressed on paid family and medical leave pricing, with management saying the product has a higher benefit ratio but a lower expense ratio, can be repriced annually, and is performing in line with underwriting assumptions, including lower July utilization. Questions also focused on the lower net investment income outlook; management said the biggest sources of variability are limited partnerships and commercial mortgage loans, while higher rates remain constructive for core fixed income, with some alternative strategies now expected to deliver lower but positive returns. On capital allocation, management said buybacks remain opportunistic rather than an on/off decision, with balance sheet strength and financial flexibility still the priority. On P&C, management said auto loss trends are favorable but not assumed to stay as favorable in the second half, and that the company is not chasing auto growth at the expense of underwriting discipline.