HORACE MANN EDUCATORS CORP DE

The following discussion provides outlook information for our results of operations and capital position.

Consolidated Results

At the time of issuance of this Annual Report on Form 10-K, we estimate that 2024 full year net income will be within a range of $3.00 to $3.30 per diluted share, generating a core return on equity* near 9%. These results anticipate the following:

•8% to 9% increase in Net premiums and contract charges earned driven by Property & Casualty rate actions

•Between $465 million and $475 million of Net investment income, including approximately $105 million of accreted investment income on the deposit asset on reinsurance in the Life & Retirement segment. This anticipates strong returns from our commercial mortgage loan portfolio as well as returns for our limited partnerships moving toward their historic averages

•Approximately 5.5% increase in total Operating expense

•Approximately $35 million in corporate Interest expense included in results for the Corporate & Other segment

Property & Casualty Segment

In 2024, net income for Property & Casualty is anticipated to be in the range of $36 million to $41 million. Our outlook anticipates:

•Combined ratio near 100%

•Catastrophe loss assumption of approximately $80 million or around 11% of net earned premiums – in line with five-year average and consistent with historical frequencies and current severities applied to modeled exposures

We anticipate achieving our longer-term Property & Casualty combined ratio target of 95-96% in 2025.

Life & Retirement Segment

In 2024, net income for Life & Retirement is anticipated to be in the range of $77 million to $81 million. Our outlook anticipates:

•Spread on the fixed annuity business above the target range of 220 to 230 basis points

•Mortality modestly higher than 2023

Supplemental & Group Benefits Segment

In 2024, net income for Supplemental & Group Benefits is anticipated to be in the range of $47 million to $50 million. Our outlook anticipates:

•Claims utilization for supplemental and disability products returning to near pre-pandemic levels, leading to a segment benefit ratio closer to longer-term target of 43%

•Pretax profit on revenue of between 20% and 21%

As described in Critical Accounting Estimates, certain of our significant accounting measurements require the use of estimates and assumptions. As additional information becomes available, adjustments may be required. Those adjustments are charged or credited to net income for the period in which the adjustments are made and may impact actual results compared to our estimates above. Additionally, see forward-looking information in Part I - Items 1 and 1A of this Annual Report on Form 10-K concerning other important factors that could impact actual results. Our projections due not include a forecast of net investment gains (losses), which can vary substantially from one period to another and may have a significant impact on net income.