Horace Mann Educators Corporation (HMN) Q3 2025 Earnings Call Transcript
Core EPS $1.36, a 64% increase over the prior year. The increase is attributed to strong earnings power of the diversified business and lower catastrophe losses.
Trailing 12-month core return on equity 13.8%, an increase attributed to strong underlying profitability across the business.
Total revenues Up 6% over the prior year. Growth driven by net premiums and contract charges earned, which were up over 7%.
Supplemental and Group Benefits segment sales Individual supplemental sales up 40% and record sales in Group Benefits. Growth attributed to expanded distribution, deeper customer engagement, and product enhancements.
Property and Casualty combined ratio 91.4% year-to-date, with an auto combined ratio of 96.4% and Property combined ratio of 83.1%. Improvement attributed to rate and non-rate actions and lighter severe weather activity.
Pretax catastrophe losses $56 million year-to-date, compared to $91 million last year. The decrease is due to much lighter severe weather activity.
Core new money yield Exceeding book yield by more than 100 basis points, driven by strong net investment income and effective spread management.
Supplemental and Group Benefits blended benefits ratio 37% year-to-date, below the long-term target of 39%. Improvement attributed to favorable policyholder utilization trends.
Life and Retirement sales Life sales increased 16% and Retirement deposits grew 9%. Growth driven by back-to-school campaign and brand momentum.
Net written premiums in Property and Casualty $232 million, a 9% increase over the prior year. Growth driven by higher average earned premium.
Property combined ratio 75.3%, significantly improved over the prior year due to much lower catastrophe costs.
Net investment income on managed portfolio Increased nearly 11% over the prior year, driven by higher average yields and strong results from the core fixed income portfolio.
Group Benefits sales Nearly doubled in the quarter and up close to 20% year-to-date. Growth attributed to expanded network of broker partners.
Trade with 70% Backtested Accuracy
Analyst Views on HMN
About HMN
About the author
Horace Mann Educators Corp. (HMN) Stock Oversold with RSI at 29.9
- Oversold Signal: Horace Mann Educators Corp. (HMN) has an RSI of 29.9, indicating that after hitting a low of $42.87, the stock may be poised for a rebound, presenting potential buying opportunities for investors.
- Market Comparison: Compared to the S&P 500 ETF (SPY) with an RSI of 59.5, HMN's oversold condition suggests that recent selling pressure may be waning, potentially attracting investors looking for entry points at lower prices.
- Price Fluctuation: HMN's 52-week low is $37.19 and high is $48.325, with the current trading price at $43.05, indicating potential rebound space within its trading range.
- Investor Sentiment: While the stock is currently oversold, investors should carefully assess market sentiment to determine whether to enter at this time, avoiding further downside risks.
KBW Announces Q4 2025 Index Rebalancing with Changes Across Six Indices
- Index Component Changes: The KBW Nasdaq Insurance Index adds four companies, including Arthur J. Gallagher & Co. and Chubb Limited, while dropping four others, reflecting market dynamics.
- Regional Banking Index Update: The KBW Nasdaq Regional Banking Index adds Axos Financial, Inc. and removes Synovus Financial Corp., indicating a focus on emerging fintech companies.
- Dividend Yield Index Adjustments: The KBW Nasdaq Financial Sector Dividend Yield Index adds eight companies and drops eight, demonstrating ongoing investor interest in high-yield investments.
- REIT Index Expansion: The KBW Nasdaq Premium Yield Equity REIT Index adds twelve companies while removing nine, reflecting the vibrancy of the real estate market and investor confidence.
