Horace Mann Reports Results for Fourth Quarter and Year
SPRINGFIELD, Ill., Feb. 17 /PRNewswire-FirstCall/ -- Horace Mann
Educators Corporation today reported net income of $23.1 million
(54 cents per share) and $19.0 million (44 cents per share) for the
three and twelve months ended December 31, 2003, respectively,
including adverse development and strengthening of prior years'
property and casualty reserves as well as a significant level of
catastrophe losses. These results compare to net income of $13.5
million (33 cents per share) and $11.3 million (28 cents per share)
for the same periods in 2002. Included in current year net income
were net realized gains on securities of $20.8 million ($13.5
million after tax, or 32 cents per share) and$25.5 million ($16.6
million after tax, or 38 cents per share) for the fourth quarter
and twelve months of 2003, compared to net realized gains of $2.5
million ($1.6 million after tax, or 4 cents per share) and net
realized losses of $49.4 million ($32.2 million after tax, or 77
cents per share) for the comparable periods a year earlier. In
2002, net income also included charges for restructuring, debt
retirement and class action litigation which totaled $0.8 million
($0.5 million after tax, or 1 cent per share) and $8.1 million
($5.2 million after tax, or 13 cents per share) for the three and
twelve months, respectively. All per-share amounts are stated on a
diluted basis. The company's earnings for the quarter ended
December 31, 2003 were negatively affected by $12.1 million pretax,
approximately 18 cents per share, of adverse development and
strengthening of prior years' property and casualty claims
reserves, which primarily related to voluntary automobile liability
claims. Total property and casualty reserves were $320.9 million as
of December 31, 2003. The independent property and casualty
actuarial and claims consultants from Deloitte & Touche
recently completed the previously announced review of the company's
claims operations and reserving processes. This included a review
of claims files and claim handling processes and procedures
(including case reserving) and the process for establishing
supplemental and IBNR reserves. In addition, Deloitte was engaged
to perform the independent property and casualty claims reserve
study for December 31, 2003. "The in-depth review conducted by
Deloitte and the additional insights it has provided regarding
recent adverse property and casualty reserve development have been
incorporated intothe establishment of year-end reserves," stated
Louis G. Lower II, President and Chief Executive Officer. "Reserve
levels at December 31, 2003 are consistent with Deloitte's point
estimates with the exception of voluntary automobile liability
reserves which were recorded toward the high end of their range to
improve our confidence in the property and casualty reserve levels
going into 2004." As previously announced, the company's earnings
for the quarter ended December 31, 2003 were also negatively
affected by catastrophe losses. Total catastrophe losses were 21
cents per share for the quarter, due primarily to the California
wildfires, compared to losses of 9 cents per share in the fourth
quarter of 2002. These negative prior year comparisons were
partially offset by the impact of property and casualty rate
increases on earned premiums and favorable property loss results
excluding the impact of catastrophes. "Our underlying 2003 results
support a preliminary full year 2004 estimate of net income before
realized investment gains and losses of between $1.20 and $1.30 per
share," said Lower. "This projection anticipates improvement in the
property and casualty statutory combined ratio and stabilization of
operating results in the annuity and life segments." Results of
Operations The company's core lines premiums written and contract
deposits increased 9 and 8 percent compared to the fourth quarter
and twelve months of 2002, respectively, resulting from rate
increases in the property and automobile lines and notable growth
in new annuity deposits in both the third and fourth quarters.
Horace Mann's career agency force totaled 888 agents at December
31, 2003. "While the number of agents declined compared to a year
ago, average agent productivity increased for both the fourth
quarter and the year. We have implemented additional programs to
continue development of a high quality agency force and improve
retention of productive agents," Lower said. "Total sales increased
25 percent and 15 percent for the quarter and full year,
respectively, compared to the prior year. While also benefitting
from strong life and homeowner insurance sales, this increase was
primarily driven by growth in new annuity deposits. The combination
of our independent and career agent channels produced growth of 34
percent in annuity sales for the quarter and 22 percent for the
year." Property and Casualty Written premiums for voluntary
property and casualty insurance increased 6 percent and 7 percent
in the current quarter and twelve months, respectively. On an
annual basis, the growth was a result of increases in average
written premium per policy of approximately 5 percent for
automobile and 12 percent for homeowners. The number of automobile
policies in force decreased slightly compared to a year earlier,
and homeowners policies in force decreased by 2 percent. In the
current periods, involuntary automobile and involuntary property
premiums were negatively impacted by adjustments to anticipated
premiums from state reinsurance facilities. For the fourth quarter
of 2003, property and casualty segment net income was $2.2 million,
compared to $3.8 million for the same period in 2002. Horace Mann's
property and casualty statutory combined ratio was 111.5 percent
for the fourth quarter of 2003, compared to 104.8 percent a year
earlier. For the year, the property and casualty segment recorded a
net loss of $17.8 million and the combined ratio was 111.5 percent,
compared to net income of $19.9 million and a combined ratio of
103.6 percent a year earlier. In 2002, the combined ratio reflected
the impact of restructuring charges, which represented 0.8
percentage points for the year, as well as class action litigation
charges, which represented 0.3 percentage points for the twelve
months. The property and casualty statutory expense ratio of 23.2
percent for the full year 2003 was 1 percentage point lower than a
year earlier, primarily as a result of the non-recurring charge
related to the restructure of the property and casualty claims
operation recorded in 2002. The 2003 property and casualty results
included adverse prior years' loss reserve development representing
8.8 percentage points of the combined ratio, or $12.1 million
pretax, in the fourth quarter and 10.5 percentage points, or $56.4
million pretax, for the full year. In 2002, development of prior
years' reserves decreased property and casualty pretax earnings
$15.2 million and $24.0 million for the fourth quarter and full
year, respectively. Compared to the prior year, the higher level of
2003 wildfire and weather-related catastrophe losses represented an
increase in the combined ratio of approximately 6 and 4 percentage
points for the quarter and year, respectively. Fourth quarter 2003
catastrophe losses of $14.0 million pretax were $8.1 million
greater than the same period a year earlier. Homeowner claims from
the California wildfires, net of anticipated reinsurance
recoveries, represented $12.0 million of the currentquarter's
losses. For the full year, catastrophe losses in 2003 were $21.3
million greater than in 2002. The voluntary automobile statutory
loss ratio for the fourth quarter of 2003 was 93.0 percent, an
increase of 15.4 percentage points compared to 77.6 percent for the
same period in 2002. The current period included 13.7 percentage
points due to adverse development of prior years' reserves,
compared to a 10.7 percentage point impact in the prior year. For
full year 2003, the voluntary automobile statutory loss ratio was
89.7 percent and included 14.5 percentage points of adverse prior
years' development, compared to a 2002 loss ratio of 77.0 percent
including 4.1 percentage points of adverse prior years'
development. The property statutory loss ratio of 82.6 percent for
the full year increased 1.6 percentage points compared to 2002 in
spite of a 13.1 percentage point increase attributable to higher
catastrophe losses in the current year. For full year 2003, the
property statutory combined ratio excluding catastrophes of 84.5
percent improved 11.9 percentage points compared to the prior year,
due primarily to the favorable results in the current quarter.
Annuity New annuity deposits in the fourth quarter increased 18
percent over the prior year. The full year growth of 13 percent
primarily reflected a 46 percent increase in new single premium and
rollover deposits. New scheduled annuity deposits decreased 4
percent compared to the full year 2002. During 2003, the retention
ratio forfixed and variable accumulated annuity deposits remained
strong -- in the mid-90s -- and the number of annuity contracts
outstanding increased 4 percent compared to December 31, 2002. New
annuity sales by Horace Mann agents increased 1 percent and 4
percent in the quarter and year, respectively, compared to the same
periods in 2002. Primarily driven by Horace Mann's independent
agent distribution initiative, total annuity sales increased 34
percent for the quarter and 22 percent for the full year. Annuity
production from independent agents has shown steady sequential
growth for each quarter in 2003, particularly in the last six
months. "In 2004, we will continue to leverage the independent
agent channel as a key source for growth in our annuity business,
but with greater emphasis on variable deposits to improve overall
returns in this low interest rate environment," Lower commented.
Annuity segment net income was $5.7 million for the fourth quarter
of 2003, an increase of 21 percent compared to the same period in
2002, while full year net income was $14.4 million in 2003 versus
$17.0 million a year earlier. On a pretax basis, fourth quarter
2003 income increased $0.3 million compared to 2002 while full year
pretax income decreased $3.4 million versus prior year. Current
period earnings were adversely impacted by a reduction in the
pretax net interest margin of $0.7 million for the quarter and $6.2
million for the year, reflecting spread compression due to lower
investment income. Valuation of annuity segment deferred
acquisition costs and value of acquired insurance in force at
December 31, 2003 increased pretax income by $1.3 million and $2.6
million for the current quarter and year, respectively, compared to
similar valuations a year earlier. Changes in reserves for
guaranteed minimum death benefits (GMDB) in 2003 increased pretax
income by $0.2 million and $1.2 million in the fourth quarter and
full year, respectively, compared to the changes recorded for the
same periods in 2002. For the current quarter and year, fee income
related to variable annuity deposits increased $0.7 million and
$0.4 million, respectively, compared to 2002, due primarily to
favorable equity market performance. Life Life segment insurance
premiums and contract deposits for the quarter and year decreased
slightly compared to the same periods in 2002. Life policies in
force declined while the amount of insurance in force increased
during 2003. Life segment net income of $3.8 million for the
quarter and $13.4 million for the year declined $1.6 million and
$5.5 million compared to the respective periods in 2002, primarily
reflecting a decline in investment income and an increase in
mortality costs. Valuation of life segment deferred acquisition
costs at December 31, 2003 increased pretax income by $1.9 million
and $1.0 million in the current quarter and year, respectively,
compared to a similar valuation in 2002. Realized Investment Gains
and Losses In 2003, pretax realized investment gains were $20.8
million and $25.5 million for the quarter and year, respectively.
In the current quarter, impairment of one security in the amount of
$3.2 million pretax was more than offset by gains from portfolio
transactions. Gains realized in the quarter included $12.9 million
pretax from sales of securities impaired in 2002. For the year
ended December 31, 2003, impairment charges totaled $12.5 million
pretax. In 2002, the company recorded impairment charges, largely
related to fixed income securities of companies in the
communications sector, which represented the primary component of
the $49.4 million pretax realized investment losses for the year.
Horace Mann -- the largest national multiline insurance company
focusing on educators' financialneeds -- provides retirement
annuities, life insurance, property/casualty insurance, and other
financial solutions. Founded by educators for educators in 1945,
the company is headquartered in Springfield, Ill. Horace Mann is
publicly traded on the NewYork Stock Exchange as HMN. For more
information, visit http://www.horacemann.com/ . Statements included
in this news release that are not historical in nature are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to certain risks and
uncertainties. Horace Mann undertakes no obligation to publicly
update or revise any forward-looking statements, whether as the
result of new information, future events or otherwise. Information
concerning factors that could cause actual results to differ
materially from those in forward-looking statements is contained
from time to time in the company's public filings with the
Securities and Exchange Commission. HORACE MANN EDUCATORS
CORPORATION Digest of Earnings and Highlights (Dollars in Millions,
Except Per Share Data) Quarter Ended Year Ended December 31,
December 31, 2003 2002 % Change 2003 2002 % Change DIGEST OF
EARNINGS Net income $23.1 $13.5 71.1% $19.0 $11.3 68.1% Net income
per share: Basic $0.54 $0.33 63.6% $0.44 $0.28 57.1% Diluted $0.54
$0.33 63.6% $0.44 $0.28 57.1% Weighted average number of shares and
equivalent shares: Basic 42.7 41.3 42.7 40.9 Diluted 42.9 41.5 42.9
41.2 HIGHLIGHTS Operations Insurance premiums written and contract
deposits Core lines $254.2 $233.8 8.7% $958.2 $887.6 8.0% Total
249.8 236.3 5.7% 955.5 899.3 6.2% Return on equity (A) 3.5% 2.4%
Property & Casualty statutory combined ratio (B) 111.5% 104.8%
111.5% 103.6% Property & Casualty statutory combined ratio
before catastrophes (B) 101.3% 100.3% 105.3% 101.3% Experienced
agents 510 527 -3.2% Financed agents 378 395 -4.3% Total agents 888
922 -3.7% Additional Per Share Information Dividends paid $0.105
$0.105 - $0.42 $0.42 - Book value (C) $12.42 $12.390.2% Financial
Position Total assets $4,983.6 $4,512.3 10.4% Short-term debt $25.0
- Long-term debt 144.7 144.7 Total shareholders' equity 530.5 528.8
0.3% (A) Based on 12-month net income and average quarter-end
shareholders' equity. (B) Consistent with management's evaluation
of the property and casualty operations, the combined ratio, which
is the sum of the loss ratio and the expense ratio is computed
based on financial information prepared in accordance with
statutory accounting principles and as reported to state insurance
departments. Expenses are divided by net written premiums.
Statutory expenses differ from GAAP expenses primarily with regard
to policy acquisition costs, which are not deferred and amortized
for statutory purposes, but ratherrecognized as incurred. The sum
of losses and loss adjustment expenses incurred is divided by net
earned premiums. Property and casualty statutory net written
premiums and net earned premiums differ from the comparable GAAP
amounts primarily with regard to the classification of certain
service fees and escrowed amounts. (C) Before the market value
adjustment for investments, book value per share was $10.51 at
December 31, 2003 and $10.50 at December 31, 2002. Ending shares
outstanding were 42,721,940 at December 31, 2003 and 42,691,244 at
December 31, 2002. -1- HORACE MANN EDUCATORS CORPORATION Statements
of Operations (Dollars in Millions, Except Per Share Data) Quarter
Ended Year Ended December 31, December 31, 2003 2002 % Change 2003
2002 % Change STATEMENTS OF OPERATIONS Insurance premiums written
and contract deposits (A) $249.8 $236.3 5.7% $955.5 $899.3 6.2%
Insurance premiums and contract charges earned (A) $165.5 $159.7
3.6% $643.5 $625.2 2.9% Net investment income 46.2 48.4 -4.5% 184.7
196.0 -5.8% Realized investment gains (losses) 20.8 2.5 25.5 (49.4)
Total revenues 232.5 210.6 10.4% 853.7 771.8 10.6% Benefits, claims
and settlement expenses 130.4 112.7 519.0 450.9 Interest credited
26.2 25.3 103.0 98.4 Policy acquisition expenses amortized 14.0
15.5 64.3 61.3 Operating expenses 38.1 34.9 9.2% 137.3 131.2 4.6%
Amortization of intangible assets 0.2 1.1 5.0 5.7 Interest expense
1.6 1.8 6.3 8.5 Restructuring charges (adjustments) - - (0.4) 4.2
Debt retirement costs - 0.8 - 2.3 Litigation charges - - - 1.6
Total benefits, losses and expenses 210.5 192.1 9.6% 834.5 764.1
9.2% Income before income taxes 22.0 18.5 18.9% 19.2 7.7 149.4%
Income tax expense (benefit) (1.1) 5.0 0.2 (3.6) Net income $23.1
$13.5 71.1% $19.0 $11.3 68.1% (A) Effective December 31, 2001,
Horace Mann ceased writing automobile insurance policies in
Massachusetts. See footnote (A) on page 3 for quantification. -2-
HORACE MANN EDUCATORS CORPORATION Supplemental GAAP Consolidated
Data (Dollars in Millions) Quarter Ended Year Ended December 31,
December 31, 2003 2002 % Change 2003 2002 % Change Analysis of
Premiums Written and Contract Deposits Automobile and property
(voluntary) (A) $139.0 $131.1 6.0% $549.2 $513.2 7.0% Annuity
deposits 84.3 71.3 18.2% 296.6 261.5 13.4% Life 30.9 31.4 -1.6%
112.4 112.9 -0.4% Subtotal -core lines 254.2 233.8 8.7% 958.2 887.6
8.0% Involuntary and other property & casualty (A) (4.4) 2.5
(2.7) 11.7 Total (A) 249.8 236.3 5.7% 955.5 899.3 6.2% Total,
excluding Massachusetts automobile (A) 249.8 236.5 5.6% 955.5 898.1
6.4% Analysis of Net Income Property & Casualty Before
catastrophes $11.4 $7.7 48.1% $3.8 $27.7 -86.3% Catastrophe losses,
after tax (9.2) (3.9) (21.6) (7.8) Total Property & Casualty
2.2 3.8 -42.1% (17.8) 19.9 Annuity 5.7 4.7 21.3% 14.4 17.0 -15.3%
Life 3.8 5.4 -29.6% 13.4 18.9 -29.1% Corporate and other (B) 11.4
(0.4) 9.0 (44.5) Net income 23.1 13.5 71.1% 19.0 11.3 68.1% (A)
Effective December 31, 2001,Horace Mann ceased writing automobile
insurance policies in Massachusetts. This business represented the
following amounts for the periods indicated: Premiums written
Voluntary automobile and core lines - - - - Total - ($0.2) - $1.2
Premiums earned Voluntary automobile and core lines - 0.6 - 9.9
Total - 1.3 $0.2 15.6 Policies in force (in thousands) Voluntary
automobile - - (B) The Corporate and Other segment includes
interest expense on debt and the impact of realized investment
gains and losses and other reconciling items to net income. The
Company does not allocate the impact of corporate level
transactions to the insurance segments consistent with management's
evaluation of the results of those segments. See detail for this
segment on page 5. -3- HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Dollars in Millions)
Quarter Ended Year Ended December 31, December 31, 2003 2002 %
Change 2003 2002 % Change Property & Casualty Premiums written
(A) $134.6 $133.6 0.7% $546.5 $524.9 4.1% Premiums earned (A) 138.1
132.8 4.0% 533.8 519.6 2.7% Net investment income 8.0 8.8 -9.1%
31.9 35.2 -9.4% Losses and loss adjustment expenses 119.9 104.5
472.9 410.2 Operating expenses (includes policy acquisition
expenses amortized) 34.7 32.9 128.0 120.8 Income (loss) before tax
(8.5) 4.2 (35.2) 23.8 Net income (loss) 2.2 3.8 -42.1% (17.8) 19.9
Net investment income, after tax 6.6 6.9 -4.3% 26.2 27.1 -3.3%
Catastrophe losses, after tax 9.2 3.9 21.6 7.8 Statutory operating
statistics (B): Loss and loss adjustment expense ratio 87.0% 78.3%
88.3% 79.2% Expense ratio 24.5% 26.5% 23.2% 24.4% Combined ratio
111.5% 104.8% 111.5% 103.6% Expense ratio impact of restructuring
charges (C) - - - 0.8% Impact of litigation charges (D) - - - 0.3%
Combined ratio before catastrophes 101.3% 100.3% 105.3% 101.3%
Automobile and property detail: Premiums written (voluntary) (A)
$139.0 $131.1 6.0% $549.2 $513.2 7.0% Automobile (A) 101.2 95.5
6.0% 399.4 376.8 6.0% Property 37.8 35.6 6.2% 149.8 136.4 9.8%
Premiums earned, including Massachusetts (voluntary) (A) 138.8
127.6 8.8% 534.8 504.3 6.0% Premiums earned, excluding
Massachusetts (voluntary) (A) 138.8 127.0 9.3% 534.8 494.4 8.2%
Automobile, excluding Massachusetts (A) 100.7 93.4 7.8% 391.3 365.3
7.1% Automobile, including Massachusetts (A) 100.7 94.0 7.1% 391.3
375.2 4.3% Property 38.1 33.6 13.4% 143.5 129.1 11.2% Policies in
force (voluntary) (in thousands) (A) 850 857 -0.8% Automobile,
excluding Massachusetts (A) 571 573 -0.3% Automobile, including
Massachusetts (A) 571 573 -0.3% Property 279 284 -1.8% Voluntary
automobile statutory operating statistics (B): Loss and loss
adjustment expense ratio 93.0% 77.6% 89.7% 77.0% Expense ratio
23.5% 26.1% 23.1% 24.8% Combined ratio 116.5% 103.7% 112.8% 101.8%
Expense ratio impact of restructuring charges (C) - - - 0.9% Impact
of litigation charges (D) - - - 0.4% Combined ratio before
catastrophes 116.1% 103.2% 111.7% 101.2% Total property statutory
operating statistics (B): Loss and loss adjustment expense ratio
68.0% 73.5% 82.6% 81.0% Expense ratio 24.9% 25.3% 22.5% 22.9%
Combined ratio 92.9% 98.8% 105.1% 103.9% Expense ratio impact of
restructuring charges (C) - - - 0.7% Combined ratio before
catastrophes 55.5% 83.6% 84.5% 96.4% Prior years' reserves
favorable (adverse) development, pretax Voluntary automobile (D)
($13.8) ($10.1) ($57.0) ($15.5) Total property (0.1) (3.1) (0.6)
(4.2) Other property and casualty 1.8 (2.0) 1.2 (4.3) Total (D)
(12.1) (15.2) (56.4) (24.0) (A) Effective December 31, 2001, Horace
Mann ceased writing automobile insurance policies in Massachusetts.
See footnote (A) on page 3 for quantification. (B) Also see
footnote (B) on page 1. (C) Represents a $4.2 million pretax
statutory accounting charge for claims restructuring costs for the
year ended December 31, 2002 which was recorded in the third
quarter of 2002. $3.3 million was charged to voluntary automobile,
and $0.9 million was charged to property. (D) Includes a $1.6
million pretax statutory accounting charge for class action
litigation for the year ended December 31, 2002 which was recorded
in the second quarter of 2002. -4- HORACE MANN EDUCATORS
CORPORATION Supplemental Business Segment Overview (Dollars in
Millions) Quarter Ended Year Ended December 31, December 31, 2003
2002 % Change 2003 2002 % Change Annuity Contract deposits $84.3
$71.3 18.2% $296.6 $261.5 13.4% Variable 36.3 32.5 11.7% 115.3
120.3 -4.2% Fixed 48.0 38.8 23.7% 181.3 141.2 28.4% Contract
charges earned 4.0 3.3 21.2% 14.6 14.2 2.8% Net investment income
26.3 26.5 -0.8% 104.4 107.7 -3.1% Net interest margin (without
realized gains) 8.2 8.9 33.1 39.3 Net margin (includes fees and
contract charges earned) 10.8 12.7 -15.0% 49.6 55.5 -10.6%
Mortality gain (loss) and other reserve changes (0.1) 1.1 (0.8)
(0.8) Operating expenses (includes policy acquisition expenses
amortized) 3.9 6.4 25.6 27.5 Income before tax and amortization of
intangible assets 6.8 7.4 -8.1% 23.2 27.2 -14.7% Amortization of
intangible assets (0.2) 0.7 3.4 4.0 Income before tax 7.0 6.7 19.8
23.2 Net income 5.7 4.7 21.3% 14.4 17.0 -15.3% Pretax income
increase (decrease) due to valuation of: Deferred policy
acquisition costs $1.4 $0.9 $2.4 $0.1 Value of acquired insurance
in force 1.1 0.3 0.2 (0.1) Guaranteed minimum death benefit reserve
0.4 0.2 0.7 (0.5) Annuity contracts in force (in thousands) 153 147
4.1% Accumulated value on deposit $2,769.8 $2,360.5 17.3% Variable
1,119.2 854.5 31.0% Fixed 1,650.6 1,506.0 9.6% Annuity accumulated
value retention - 12 months Variable accumulations 92.8% 92.1%
Fixed accumulations 95.1% 94.0% Life Premiums and contract deposits
$30.9 $31.4 -1.6% $112.4 $112.9 -0.4% Premiums andcontract charges
earned 23.4 23.6 -0.8% 95.1 91.4 4.0% Net investment income 12.2
13.3 -8.3% 49.6 53.9 -8.0% Income before tax 6.0 8.3 20.8 29.2 Net
income 3.8 5.4 -29.6% 13.4 18.9 -29.1% Pretax income increase
(decrease) due to valuation of: Deferred policy acquisition costs
$1.4 ($0.5) $1.4 $0.4 Life policies in force (in thousands) 259 264
-1.9% Life insurance in force (in millions) $13,267 $13,197 0.5%
Lapse ratio - 12 months (Ordinary life insurance) 7.7% 9.1%
Corporate and Other (A) Components of gain (loss) before tax:
Realized investment gains (losses) $20.8 $2.5 $25.5 ($49.4)
Restructuring (charges) adjustments - - 0.4 (4.2) Debt retirement
costs - (0.8) - (2.3) Litigation charges - - - (1.6) Interest
expense (1.6) (1.8) (6.3) (8.5) Other operating expenses (1.7)
(0.6) (5.8) (2.5) Gain (loss) before tax 17.5 (0.7) 13.8 (68.5) Net
gain (loss) 11.4 (0.4) 9.0 (44.5) (A) The Corporate and Other
segment includes interest expense on debt and the impact of
realized investment gains and losses and other reconciling items to
net income. The Company does not allocate the impact of corporate
level transactions to the insurance segments consistent with
management's evaluation of the results of those segments. -5-
HORACE MANN EDUCATORS CORPORATION Supplemental Business Segment
Overview (Dollars in Millions) Quarter Ended Year Ended December
31, December 31, 2003 2002 % Change 2003 2002 % Change Investments
Annuity and Life Fixed maturities, at market (amortized cost 2003,
$2,501.2; 2002, $2,291.4) $2,613.0 $2,397.3 Mortgage loans and real
estate 4.6 4.9 Short-term investments 9.0 52.6 Short-term
investments, securities lending collateral 22.1 1.3 Policy loans
and other 74.0 69.1 Total Annuity and Life investments 2,722.7
2,525.2 7.8% Property & Casualty Fixed maturities, at market
(amortized cost 2003, $623.7; 2002, $567.6) 645.7 593.9 Short-term
investments 9.8 5.0 Short-term investments, securities lending
collateral - 2.6 Other 0.7 0.3 Total Property & Casualty
investments 656.2 601.8 9.0% Corporate investments 6.8 3.6 Total
investments 3,385.7 3,130.6 8.1% Net investment income Before tax
$46.2 $48.4 -4.5% $184.7 $196.0 -5.8% After tax 31.4 32.7 -4.0%
125.5 131.7 -4.7% Realized investment gains (losses) by investment
portfolio included in Corporate & Other segment income Property
& Casualty $11.0 - $10.2 ($16.1) Annuity 11.2 ($3.1) 16.8
(24.9) Life (1.5) 5.6 (1.6) (8.0) Corporate and Other 0.1 - 0.1
(0.4) Total, before tax 20.8 2.5 25.5 (49.4) Total, after tax 13.5
1.6 16.6 (32.2) Per share, diluted $0.32 $0.04 $0.38 ($0.77) Other
Information End of period goodwill asset $47.4 $47.4 End of period
property and casualty net reserves as of: December 31, 2003 $320.9
September 30, 2003 308.0 June 30, 2003 285.4 March 31, 2003 275.7
December 31, 2002 272.6 December 31, 2001 272.0 December 31, 2000
249.8 December 31, 1999 235.4 -6- DATASOURCE: Horace Mann Educators
Corporation CONTACT: Dwayne D. Hallman, Senior Vice President -
Finance, of Horace Mann Educators Corporation, +1-217-788-5708 Web
site: http://www.horacemann.com/
Copyright
Horace Mann Educators (NYSE:HMN)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
Horace Mann Educators (NYSE:HMN)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024