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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Supplemental & Group Benefits
Higher premium earned reflecting investment to grow the book of business
Higher benefits ratio in Group Benefits in-line with longer term expectation
Higher operating expenses due to investment in growth
The following table provides certain information for Supplemental & Group Benefits for the years indicated.
| ($ in millions) | Year Ended December 31, | 2025-2024 | |||
|---|---|---|---|---|---|
| 2025 · 2024 · Change % | |||||
| Supplemental & Group Benefits | |||||
| Net premiums and contract charges earned | $267.2 | $254.9 | 4.8% | ||
| Net investment income(1) | 36.8 | 38.1 | -3.4% | ||
| Other income | (5.1) | (4.6) | -10.9% | ||
| Benefits, settlement expenses and change in reserves | 93.1 | 78.8 | 18.1% | ||
| Interest credited | 5.3 | 4.7 | 12.8% | ||
| Operating expenses (includes DAC unlockingand amortization expense) | 128.9 | 112.5 | 14.6% | ||
| Intangible asset amortization expense | 14.1 | 14.3 | -1.4% | ||
| Income before income taxes | 57.5 | 78.1 | -26.4% | ||
| Net income | 45.0 | 60.4 | -25.5% | ||
| Core earnings* | 58.7 | 71.7 | -18.1% | ||
| Benefits ratio(2) | 36.8% | 32.7% | 4.1 | pts | |
| Operating expense ratio(3) | 43.1% | 39.0% | 4.1 | pts | |
| Pretax profit margin(4) | 19.2% | 27.1% | -7.9 | pts | |
| Individual Supplemental products benefits ratio | 26.8% | 27.2% | -0.4 | pts | |
| Individual Supplemental premium persistency (rolling 12 months) | 89.3% | 90.5% | -1.2 | pts | |
| Group Benefits products benefits ratio | 45.8% | 37.8% | 8.0 | pts | |
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the December 31, 2025 Form 10-K.
(2) Ratio of benefits to net premiums earned.
(3)Ratio of operating expenses to total revenues.
(4)Ratio of income before income taxes to total revenues.
2025 net income for the Supplemental & Group Benefits segment was $45.0 million. Segment net premiums earned increased $4.2 million for individual supplemental and $8.1 million for group benefits reflecting higher sales* driven by investment to grow the business. The full-year benefit ratio for the individual supplemental product line declined due to improved morbidity. The full-year benefit ratio for the group benefits product lines increased due to favorable impact in the prior year annual reserve assumption review, primarily related to favorable morbidity in our group long-term disability book.
Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error disclosed in Note 1, net investment income increased $2.2 million primarily due to stronger limited partnership returns. The non-cash impact of amortization of intangible assets under purchase accounting reduced 2025 earnings by $14.1 million, pretax, compared to $14.3 million in 2024.
Total segment sales* for the year were $35.2 million, up 37.5% from the prior year, with individual supplemental product sales* of $23.6 million and group benefits products of $11.6 million. Persistency remains strong at 89.3%.
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