HORACE MANN EDUCATORS CORP /DE/

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

•Lower net investment income for the quarter driven by limited partnership portfolio

The following table provides certain financial information for Property & Casualty for the periods indicated.

(1)(Favorable) unfavorable.

The Property & Casualty segment three and six month net income of $25.8 million and $64.8 million, as well as the three month and six month combined ratio of 89.6% and 86.5%, reflected improved current year underlying results and catastrophe losses below prior year.

The current quarter reflects an increase in net premiums written* of 0.1%, with average written premiums* rising for both property and auto. Sales* were lower for the quarter, down 3.6% from the prior year, and household retention remains in line with expectations.

The three and six month loss ratios decreased 7.1 and 6.2 points from last year reflecting higher average premiums and lower catastrophe losses. In addition, $6.6 million and $11.6 million of net favorable prior years' reserve development for the three and six months reduced the loss ratio 3.2 and 2.8 points, respectively. Catastrophe losses for the quarter were $24.2 million, pretax, contributing 11.8 points to the combined ratio. In total, there were 22 events designated as catastrophes by Property Claims Services (PCS) in this year’s second quarter. The lower catastrophe losses are driven by lower frequency and severity of policyholder claims. In the second quarter of 2025, catastrophe losses were $29.7 million, pretax, contributing 15.0 points to the combined ratio, from 20 PCS events.

The year-over-year increase in average written premiums* for auto policies in the second quarter was 2.8%, while retention remained stable. The second quarter auto underlying loss ratio* was 65.1%, improving 3.6 points from the prior year quarter, reflecting the benefit of higher average earned premium. The second quarter reported loss ratio benefited 1.6 points from favorable prior years' reserve development.

The year-over-year increase in average written premiums* for property policies was 7.4% in the second quarter, as rate increases and inflation adjustments to coverage values continue to take effect. Policyholder retention remains stable. The second quarter property and other underlying loss ratio* was 36.0%, a 1.4 point decrease from prior year reflecting the increase in average earned premium*. The second quarter reported loss ratio benefited 5.6 points from favorable prior years' reserve development.