HORACE MANN EDUCATORS CORP /DE/

The Life & Retirement segment markets 403(b) tax-qualified fixed, fixed indexed and variable annuities; the Horace Mann Retirement Advantage® open architecture platform for 403(b)(7) and other defined contribution plans; traditional term and whole life insurance products and indexed universal life (IUL) products. Horace Mann is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net premiums written on a statutory accounting basis. The Life & Retirement segment represented 32% of total revenues in 2025.

•Higher premiums and contract charges earned and other income

•Benefits expense in Life decreased related to favorable mortality costs

•Annualized quarterly net interest spread on fixed annuities down 37 basis points

•Higher assets under administration

The following table provides certain information for Life & Retirement for the periods indicated.

Life & Retirement segment net income for the three months ended March 31, 2026 of $7.1 million was up 4.4%, primarily due to favorable benefits in the Life segment and higher premiums and contract charges earned and other income offset by lower net interest spread in the Retirement segment. Life benefits reflected favorable mortality charges which remain within our expected actuarial range. The net spread decrease reflects lower net investment income related to our limited partnerships with higher interest credited due to higher interest credited rates and FHLB interest compared to 2025.

For the Retirement business, net annuity contract deposits were down 5.5% for the quarter at $104.7 million primarily reflecting product mix and market conditions. Educators continue to begin their relationship with Horace Mann through 403(b) retirement savings products, which provide encouraging cross-sell opportunities. Average persistency rose from the prior period to 92.1%.

Horace Mann currently has $5.8 billion in annuity assets under management, including $2.2 billion of fixed annuities, $3.2 billion of variable annuities and $0.4 billion of fixed indexed annuities. Assets under administration, which includes Horace Mann Retirement Advantage® and other advisory and recordkeeping assets, were up due to the effect of equity market performance on assets.

Life annualized sales* were $2.8 million for the quarter. Persistency remains strong. Life insurance in force rose to $21.6 billion at quarter-end.

As a general guideline, based on our existing policies and investment portfolio, the impact from a 100 basis point decline in the average reinvestment rate would reduce Life & Retirement net investment income by approximately $2.1 million in year one, reducing the annualized net interest spread on fixed annuities by approximately 8 basis points, compared to the current period annualized net interest spread on fixed annuities.

We could also consider potential changes in rates credited to policyholders, tempered by any restrictions on the ability to adjust policyholder rates due to guaranteed minimum crediting rates.