HORACE MANN EDUCATORS CORP /DE/
For the period ended Jun 30, 2026. Filed Aug 7, 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.
Jun 30, 2026 · Filed Aug 7, 2026
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Supplemental & Group Benefits
The Supplemental & Group Benefits segment markets group solutions for districts and other public employers, as well as individual supplemental products typically distributed through the employer channel. The Supplemental & Group Benefits segment provides group term life, disability and specialty health insurance, along with supplemental products including cancer, heart, hospital, supplemental disability and accident coverages. The Supplemental & Group Benefits segment represented 17% of total revenues in 2025.
Higher premium earned reflecting investment to grow the book of business
Higher benefits ratio for Individual Supplemental and Group Benefits
| Horace Mann Educators Corporation | 52 | Second Quarter 2026 Form 10-Q |
|---|
The following table provides certain information for Supplemental & Group Benefits for the periods indicated.
| ($ in millions) | Three Months EndedJune 30, | 2026-2025 | Six Months EndedJune 30, | 2026-2025 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2026 · 2025 · % Change · 2026 · 2025 · % Change | ||||||||||
| Supplemental & Group Benefits | ||||||||||
| Revenues | ||||||||||
| Net premiums and contract charges earned | $70.6 | $65.7 | 7.5% | $141.0 | $132.8 | 6.2% | ||||
| Net investment income(1) | 10.4 | 7.1 | 46.5% | 19.3 | 16.5 | 17.0% | ||||
| Other income | (0.9) | (1.9) | 52.6% | (1.5) | (3.0) | 50.0% | ||||
| Total revenues | 80.1 | 70.9 | 13.0% | 158.8 | 146.3 | 8.5% | ||||
| Benefits and Expenses | ||||||||||
| Benefits, settlement expenses and change in reserves | 33.0 | 24.0 | 37.5% | 62.5 | 52.1 | 20.0% | ||||
| Operating expenses (including DAC amortization expense) | 32.8 | 33.1 | -0.9% | 65.8 | 62.6 | 5.1% | ||||
| Intangible asset amortization expense | 3.5 | 3.6 | -2.8% | 7.0 | 7.1 | -1.4% | ||||
| Total benefits and expenses | 69.3 | 60.7 | 14.2% | 135.3 | 121.8 | 11.1% | ||||
| Income before income taxes | 10.8 | 10.2 | 5.9% | 23.5 | 24.5 | -4.1% | ||||
| Income tax expense | 2.3 | 2.3 | —% | 5.1 | 5.4 | -5.6% | ||||
| Net income | 8.5 | 7.9 | 7.6% | 18.4 | 19.1 | -3.7% | ||||
| Core earnings* | 11.2 | 13.4 | -16.4% | 23.8 | 27.4 | -13.1% | ||||
| Benefits ratio | 46.8% | 36.7% | 10.1 | pts | 44.4% | 39.3% | 5.1 | pts | ||
| Operating expense ratio | 40.9% | 46.7% | -5.8 | pts | 41.4% | 42.8% | -1.4 | pts | ||
| Pretax profit margin | 13.5% | 14.4% | -0.9 | pts | 14.8% | 16.7% | -1.9 | pts | ||
| Individual supplemental products benefits ratio | 29.2% | 27.7% | 1.5 | pts | 29.8% | 28.0% | 1.8 | pts | ||
| Individual supplemental premium persistency (rolling beginning 12 months) | 89.2% | 89.9% | -0.7 | pts | 89.2% | 89.9% | -0.7 | pts | ||
| Group benefits products benefits ratio | 62.2% | 44.8% | 17.4 | pts | 57.0% | 49.2% | 7.8 | pts | ||
| Group benefits covered lives (in thousands) | 911 | 822 | 10.8% | |||||||
(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 June 30, 2026 Form 10-Q.
Supplemental & Group Benefits segment net income for the three and six months ended June 30, 2026, of $8.5 million and $18.4 million, was up $0.6 million and down $0.7 million, respectively. The Individual Supplemental benefits ratio was modestly higher, 1.5 points and 1.8 points for the three and six months ended due to higher utilization consistent with our long-term expectations. The Group Benefits benefits ratio increased 17.4 points and 7.8 points for the three and six months ended driven by strong growth momentum, particular within our Paid Family Medical Leave enhancement.
Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $3.5 million ($2.8 million after tax) in the second quarter 2025, net investment income decreased $0.2 million and $0.7 million for the three and six months ended June 30, 2026.
Total sales* for the three and six months ended June 30, 2026 increased $2.5 million and $11.1 million due to our strategic investments to drive growth. Individual Supplemental products increased $0.3 million and $0.9 million and Group Benefits products increased $2.2 million and $10.2 million. Variability in sales between comparable periods is typical for Group Benefits given the relatively small scale and the longer sales cycle of this business. Persistency remains strong for the segment.
| Horace Mann Educators Corporation | 53 | Second Quarter 2026 Form 10-Q |
|---|
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