HORACE MANN EDUCATORS CORP /DE/
For the period ended Dec 31, 2025. Filed Feb 27, 2026.
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FY2025 · Filed Feb 27, 2026
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Property & Casualty
Increases in average written premium per policy
Improved underlying loss ratio* for both auto and property
Lower catastrophe losses
The following table provides certain financial information for Property & Casualty for the years indicated.
| ($ in millions, unless otherwise indicated) | Year Ended December 31, | 2025-2024 | |||
|---|---|---|---|---|---|
| 2025 · 2024 · Change % | |||||
| Financial Data: | |||||
| Net premiums written*: | |||||
| Auto | $502.0 | $490.7 | 2.3% | ||
| Property and other | 328.2 | 288.6 | 13.7% | ||
| Total net premiums written | 830.2 | 779.3 | 6.5% | ||
| Change in unearned net premiums | (27.6) | (42.8) | -35.5% | ||
| Total net premiums earned | 802.6 | 736.5 | 9.0% | ||
| Incurred claims and claims expenses: | |||||
| Claims occurring in the current year | 514.8 | 552.8 | -6.9% | ||
| Prior years' reserve development(1) | (18.8) | (29.5) | -36.3% | ||
| Total claims and claim expenses incurred | 496.0 | 523.3 | -5.2% | ||
| Operating expenses, including DAC amortization | 224.0 | 200.4 | 11.8% | ||
| Underwriting gain (loss) | 82.6 | 12.8 | 545.3% | ||
| Net investment income | 57.1 | 46.0 | 24.1% | ||
| Income (loss) before income taxes | 142.9 | 63.4 | 125.4% | ||
| Net income (loss) | 112.4 | 49.1 | 128.9% | ||
| Core earnings (loss)* | 112.4 | 49.1 | 128.9% | ||
| Operating Statistics: | |||||
| Auto | |||||
| Loss and loss adjustment expense ratio | 68.3% | 71.2% | -2.9 | pts | |
| Expense ratio | 28.2% | 27.2% | 1.0 | pts | |
| Combined ratio: | 96.5% | 98.4% | -1.9 | pts | |
| Prior years' reserve development(1) | -1.4% | -3.2% | 1.8 | pts | |
| Catastrophe losses | 1.4% | 1.8% | -0.4 | pts | |
| Underlying combined ratio* | 96.5% | 99.8% | -3.3 | pts | |
| Property (excludes Other Liability) | |||||
| Loss and loss adjustment expense ratio | 50.7% | 69.1% | -18.4 | pts | |
| Expense ratio | 27.6% | 27.3% | 0.3 | pts | |
| Combined ratio: | 78.3% | 96.4% | -18.1 | pts | |
| Prior years' reserve development(1) | -3.9% | -5.8% | 1.9 | pts | |
| Catastrophe losses | 17.9% | 32.6% | -14.7 | pts | |
| Underlying combined ratio* | 64.3% | 69.6% | -5.3 | pts | |
| Risks in force (in thousands) | |||||
| Auto | 326 | 342 | -4.7% | ||
| Property | 164 | 167 | -1.8% | ||
| Total | 490 | 509 | -3.7% | ||
(1)(Favorable) unfavorable.
Catastrophe losses incurred were as follows:(1)
| ($ in millions) | Year Ended December 31, | |
|---|---|---|
| 2025 | 2024 | |
| Three months ended | ||
| March 31st | $16.4 | $16.2 |
| June 30th | 29.7 | 40.9 |
| September 30th | 9.9 | 34.0 |
| December 31st | 5.7 | 3.8 |
| Total for year | $61.7 | $94.9 |
(1)See Part I - Item 1 - Reporting Segments - Property & Casualty for further details regarding catastrophe losses for the past five years.
Including a profit of $37.3 million in the fourth quarter, the Property & Casualty segment’s net income for the full year 2025 reflected strong underlying results, lower catastrophe losses, and favorable prior year development. Property & Casualty net premiums written were up 6.5% for the year and segment net investment income was up 24.1% for the year.
On a reported basis, the 1.9 point decrease in the auto combined ratio in 2025 was mainly attributable to a 4.3 point decrease in the auto underlying loss ratio* partially offset by a 1.8 point increase due to a lower level of favorable prior year development. Favorable prior years' auto reserve development of $7.0 millionwas reported in 2025, reflecting the impact of lower than expected severity.
The reported property combined ratio decreased 18.1 points in 2025 primarily due to a 14.7 point decrease in the catastrophe ratio and a 5.6 point decrease in property underlying ratio*. Favorable prior years' property reserve development of $11.8 millionwas reported in 2025, reflecting the impact of lower than expected severity.
In 2025, total Property & Casualty net premiums written* increased $50.9 million as rate actions and inflation adjustments to coverage values for property more than offset declines in risks in force. Retention remained strong with auto at 83.7% and property at 88.4%.
In 2025, auto net premiums written* increased $11.3 million, primarily due to rate actions partially offset by the continuing decline in auto risks in force. For 2025, average auto net premium written and average net premium earned increased 7.6% and 10.6%, respectively. Property and other net premiums written* increased $39.6 million due to increases in average net premium written and average net premium earned which increased 12.7% and 16.3% respectively, due to rate actions. The number of educator risks continues to be at or above 80% relative to overall risks in force.
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