HORACE MANN EDUCATORS CORP /DE/
For the period ended Mar 31, 2026. Filed May 8, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 8, 2026
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Property & Casualty
The Property & Casualty segment primarily markets private passenger auto insurance and residential home insurance. Horace Mann offers standard auto coverages, including liability, collision and comprehensive. Property coverage includes both homeowners and renters policies. For both auto and property coverage, Horace Mann offers educators a discounted rate and the Educator Advantage® package of features. The Property & Casualty segment represented 51% of total revenues in 2025.
Increases in average written premium per policy
Lower underlying loss ratio*
Lower Catastrophe losses
Higher net investment income driven by limited partnership portfolio
| Horace Mann Educators Corporation | 41 | First Quarter 2026 Form 10-Q |
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The following table provides certain financial information for Property & Casualty for the periods indicated.
| ($ in millions, unless otherwise indicated) | Three Months EndedMarch 31, | 2026-2025 | |||
|---|---|---|---|---|---|
| 2026 · 2025 · % Change | |||||
| Underwriting Results | |||||
| Net premiums written* | $194.2 | $185.3 | 4.8% | ||
| Net premiums earned | 203.2 | 192.7 | 5.4% | ||
| Other income | 2.0 | 1.3 | 53.8% | ||
| Losses and loss adjustment expenses | |||||
| Current accident year before catastrophe losses | 107.8 | 107.2 | 0.6% | ||
| Current accident year catastrophe losses | 11.3 | 16.4 | -31.1% | ||
| Prior years' reserve development(1) | (5.0) | (5.3) | N.M. | ||
| Total losses and loss adjustment expenses | 114.1 | 118.3 | -3.6% | ||
| Operating expenses, including DAC amortization expense | 57.1 | 54.0 | 5.7% | ||
| Underwriting gain (loss) | 34.0 | 21.7 | 56.7% | ||
| Net investment income | 14.6 | 11.7 | 24.8% | ||
| Income (loss) before income taxes | 48.6 | 33.4 | 45.5% | ||
| Income tax expense (benefit) | 9.6 | 6.6 | 45.5% | ||
| Net income (loss) | 39.0 | 26.8 | 45.5% | ||
| Core earnings (loss)* | 39.0 | 26.8 | 45.5% | ||
| Operating Statistics: | |||||
| Auto | |||||
| Net premiums written* | $121.3 | $121.6 | -0.2% | ||
| Loss and loss adjustment expense ratio | 62.2% | 66.6% | -4.4 | pts | |
| Expense ratio | 27.0% | 27.5% | -0.5 | pts | |
| Combined ratio: | 89.2% | 94.1% | -4.9 | pts | |
| Prior years' reserve development(1) | -2.5% | -1.9% | -0.6 | pts | |
| Catastrophe losses | 0.5% | 1.5% | -1.0 | pts | |
| Underlying combined ratio* | 91.2% | 94.5% | -3.3 | pts | |
| Property and other | |||||
| Net premiums written* | $72.9 | $63.7 | 14.4% | ||
| Loss and loss adjustment expense ratio | 47.1% | 52.7% | -5.6 | pts | |
| Expense ratio | 27.2% | 27.0% | 0.2 | pts | |
| Combined ratio: | 74.3% | 79.7% | -5.4 | pts | |
| Prior years' reserve development(1) | -2.5% | -4.2% | 1.7 | pts | |
| Catastrophe losses | 13.2% | 20.4% | -7.2 | pts | |
| Underlying combined ratio* | 63.6% | 63.5% | 0.1 | pts | |
| Household retention-LTM | |||||
| Auto | 83.9% | 84.2% | -0.3 | pts | |
| Property (excludes Other Products) | 88.4% | 89.4% | -1.0 | pts | |
(1)(Favorable) unfavorable.
| Horace Mann Educators Corporation | 42 | First Quarter 2026 Form 10-Q |
|---|
The Property & Casualty segment three month net income of $39.0 million, as well as the three month combined ratio of 83.3%, reflected improved current year underlying results and catastrophe losses below prior year.
The current quarter reflects an increase in net premiums written* of 4.8%, with average written premiums* rising for both property and auto. Sales* were steady for the quarter, down 1.8% from the prior year, and household retention remains in line with expectations.
The three month loss ratio decreased 5.2 points from last year reflecting higher average premiums and lower catastrophe losses. In addition, $5.0 million of net favorable prior years' reserve development for the three months reduced the loss ratio 2.5 points. Catastrophe losses for the quarter were $11.3 million, pretax, contributing 5.6 points to the combined ratio. In total, there were 21 events designated as catastrophes by Property Claims Services (PCS) in this year’s first quarter. The lower catastrophe losses are driven by lower frequency and severity of policyholder claims. In the first quarter of 2025, catastrophe losses were $16.4 million, pretax, contributing 8.5 points to the combined ratio, from 18 PCS events.
The year-over-year increase in average written premiums* for auto policies in the first quarter was 5.4%, while retention remained stable. The first quarter auto underlying loss ratio* was 64.2%, improving 2.8 points from the prior year quarter, reflecting the benefit of higher average earned premium. The first quarter reported loss ratio benefited 2.5 points from favorable prior years' reserve development.
The year-over-year increase in average written premiums* for property policies was 8.6% in the first quarter, as rate increases and inflation adjustments to coverage values continue to take effect. Policyholder retention remains stable. The first quarter property and other underlying loss ratio* was 36.4%, a 0.1 point decrease from prior year reflecting the increase in average earned premium*. The first quarter reported loss ratio benefited 2.5 points from favorable prior years' reserve development.
| Horace Mann Educators Corporation | 43 | First Quarter 2026 Form 10-Q |
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