Horace Mann Educators Q2 Earnings Call Highlights

Horace Mann Educators NYSE: HMN raised its full-year 2026 core earnings guidance after reporting record second-quarter core earnings of $1.17 per share, up more than 10% from the prior-year period. The insurer now expects 2026 core earnings of $4.60 to $4.90 per share. President and Chief Executive Officer Marita Zuraitis said the higher outlook reflected strong first-half operating performance and confidence in trends for the rest of the year.

“The strength of our second quarter results reflects disciplined execution across the business,” Zuraitis said, pointing to improved property-and-casualty profitability, growth in life and supplemental-benefits sales, and expanded distribution capabilities.

Property and casualty core earnings rose 56% year over year to $26 million. The segment’s reported combined ratio improved seven points to 89.6, aided by favorable weather, lower catastrophe losses, favorable prior-year reserve development and underwriting actions taken in recent years. Favorable prior-year reserve development totaled $7 million, including $5 million in property and $2 million in auto, primarily due to lower-than-expected claims severity, Chief Financial Officer Ryan Greenier said. Net written premiums in the segment were essentially flat at $212 million. Property premiums increased 6%, driven by higher average premiums and positive sales trends. The company said it remains focused on profitable growth rather than policy volume in auto insurance, targeting markets where it sees attractive long-term returns. Greenier said auto frequency trends were favorable in the first half, with low-single-digit frequency trends supported by weather and other factors. Physical-damage severity was also favorable, while liability loss trends were in the mid-single digits. Horace Mann’s mid-single-digit 2026 auto rate plan remains on track to support profitability, he said. The company lowered its full-year catastrophe-loss assumption to approximately $75 million from approximately $90 million, based on first-half experience. However, management said it expects catastrophe losses to normalize in the second half and did not plan for first-half weather conditions to persist. Auto household retention was near 84% during the quarter, while customer retention in the company’s other businesses remained near or above 90%, according to Zuraitis.

Sales in individual supplemental and group benefits increased 44%, while life sales rose 20%. Individual supplemental sales increased 5%, supported by demand for the company’s enhanced cancer product, while persistency was approximately 89%. Group-benefits sales were driven by demand for the paid family and medical leave enhancement introduced earlier this year alongside the company’s short-term disability offering.