Horace Mann announces preliminary results for second-quarter and full-year 2024 guidance revision
25 Juillet 2024 - 10:15PM
Business Wire
P&C profitability restoration and sales growth momentum
underscore continued confidence in reaching a 10% return on equity
in 2025
Horace Mann Educators Corporation (NYSE:HMN) today announced it
expects full-year 2024 core EPS in the range of $2.40 to $2.70,
including second-quarter core EPS in the range of $0.18 to $0.20.
The second-quarter results and full-year guidance revision is
largely due to lower-than-expected net investment income, primarily
from valuation adjustments in the company’s commercial mortgage
loan fund portfolio.
“We continue to make progress toward our objective of a
double-digit return on equity in 2025 through executing on our
multi-year Property & Casualty restoration strategy and driving
profitable growth across the business,” said Horace Mann President
and CEO Marita Zuraitis. “In the second quarter, we saw
double-digit sales growth in our auto, property, life, worksite
direct and employer-sponsored business lines. Notably, P&C
sales increased more than 30%, which provides strong momentum
entering the back-to-school season.
“Our $7 billion investment portfolio continues to benefit from a
higher interest rate environment, with new money yields in the core
portfolio exceeding book yield by 163 basis points at the end of
the second quarter,” Zuraitis continued. “In the first half of
2024, we recorded lower-than-expected income in the Life &
Retirement segment due to mark-to-market valuation adjustments on
several commercial mortgage loan funds. These valuation adjustments
occur on a one-quarter lag and have not impacted cash returns,
which are performing in line with expectations with cash yields of
about 7.5%. However, as a result, we expect second-quarter Life
& Retirement segment earnings comparable to first quarter, and
full-year earnings in the range of $50 to $56 million.”
Property & Casualty segment earnings guidance was narrowed
slightly to a range of $36 million to $39 million. Second-quarter
catastrophe losses are expected to be between $40 million to $42
million, pretax, or approximately 23 points on the combined ratio.
Second-quarter catastrophe losses typically account for about half
of the company’s full-year catastrophe load.
The company expects a net Property & Casualty reserve
release of $5 million to $6 million of favorable prior year
development, the majority of which is related to auto liability and
physical damage claims from accident year 2023.
In addition, as a result of continued lower-than-expected
benefits utilization realized in the second quarter, the company
has increased its full-year estimate for earnings in the
Supplemental & Group Benefits segment to the range of $49
million to $52 million.
Second-quarter 2024 financial results to be announced on
August 7
Horace Mann plans to release its second-quarter 2024 results on
Wednesday, August 7, after the market closes. Management will host
a conference call to discuss the financial results on Thursday,
August 8 at 9:00 a.m. Eastern Time. Investors can access the call
webcast via the Events page of the company’s investor site or by
dialing 844-735-3325. For the webcast, please log on to the
site several minutes in advance to register and download any
required audio software. On-demand replay will be available later
that day.
Safe Harbor Statement and Non-GAAP Measures
Certain statements included in this news release, including
those regarding our earnings outlook, expected catastrophe losses,
our investment strategies, our plans to implement additional rate
actions, our plans relating to share repurchases and dividends, our
efforts to enhance customer experience and expand our products and
solutions to more educators, our strategies to create sustainable
long-term growth and double-digit ROEs, our strategy to achieve a
larger share of the education market, and other business
strategies, constitute forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements are made based on management’s
current expectations and beliefs concerning future developments and
their potential effects upon Horace Mann and its subsidiaries.
Horace Mann cautions investors that such statements are subject to
risks and uncertainties, many of which are difficult to predict and
generally beyond Horace Mann’s control, that could cause actual
results to differ materially from those expressed in, or implied or
projected by, the forward-looking statements included in this
document. Certain important factors that could cause actual results
to differ, possibly materially, from expectations or estimates
reflected in such forward-looking statements can be found in the
“Risk Factors” and “Forward-Looking Information” sections included
in Horace Mann’s Annual Reports on Form 10-K and Quarterly Reports
on Form 10-Q filed with the Securities and Exchange Commission
(SEC). The forward-looking statements herein are subject to the
risk, among others, that we will be unable to execute our strategy
because of market or competitive conditions or other factors.
Horace Mann does not undertake to update any particular
forward-looking statement included in this document if we later
become aware that such statement is not likely to be achieved.
Information contained in this news release include measures
which are based on methodologies other than accounting principles
generally accepted in the United States of America (GAAP).
Reconciliations of non-GAAP measures to the closest GAAP measures
are contained in the Appendix to the Investor Supplement and
additional descriptions of the non-GAAP measures are contained in
the Glossary of Selected Terms included as an exhibit to Horace
Mann’s SEC filings.
About Horace Mann
Horace Mann Educators Corporation is the largest multiline
financial services company focused on helping America’s educators
and others who serve the community achieve lifelong financial
success. The company offers individual and group insurance and
financial solutions tailored to the needs of the educator
community. Founded by Educators for Educators® in 1945, the company
is headquartered in Springfield, Illinois. For more information,
visit horacemann.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240725551786/en/
Brendan Dawal, Vice President, Investor Relations 217-670-8766 |
investorrelations@horacemann.com
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