HORACE MANN EDUCATORS CORP DE
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 27, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Supplemental & Group Benefits
2023 net income reflected the following factors:
Decline in premium due to run-off of an indemnified block of employer-sponsored products; net premiums earned increased 1.9% excluding the run-off
Higher net investment income
Benefit ratios reflecting utilization closer to pre-pandemic levels
Increased level of operating expenses reflecting a higher allocation of corporate expenses
The following table provides certain information for Supplemental & Group Benefits for the years indicated.
| ($ in millions) | Year Ended December 31, | 2023-2022 | |||
|---|---|---|---|---|---|
| 2023 · 2022 · Change % | |||||
| Supplemental & Group Benefits | |||||
| Net premiums and contract charges earned | $259.8 | $275.5 | -5.7% | ||
| Net investment income | 38.9 | 33.3 | 16.8% | ||
| Other income | (11.1) | (13.4) | 17.2% | ||
| Benefits, settlement expenses and change in reserves | 88.9 | 91.2 | -2.5% | ||
| Interest credited | 3.9 | 1.3 | N.M. | ||
| Operating expenses (includes DAC unlockingand amortization expense) | 110.5 | 103.2 | 7.1% | ||
| Intangible asset amortization expense | 14.6 | 15.7 | -7.0% | ||
| Income before income taxes | 69.7 | 84.0 | -17.0% | ||
| Net income | 54.9 | 65.9 | -16.7% | ||
| Core earnings* | 54.9 | 65.9 | -16.7% | ||
| Benefits ratio(1) | 35.7% | 33.5% | 2.2 | pts | |
| Operating expense ratio(2) | 38.4% | 35.0% | 3.4 | pts | |
| Pretax profit margin(3) | 24.3% | 28.5% | -4.2 | pts | |
| Worksite direct products benefits ratio | 29.1% | 23.0% | 6.1 | pts | |
| Worksite direct premium persistency (rolling 12 months) | 91.4% | 90.4% | 1.0 | pts | |
| Employer-sponsored products benefits ratio | 41.4% | 41.8% | -0.4 | pts | |
(1) Ratio of benefits to net premiums earned.
(2)Ratio of operating expenses to total revenues.
(3)Ratio of income before income taxes to total revenues.
2023 net income for the Supplemental & Group Benefits segment was $54.9 million. Segment net premiums earned and benefits expense declined due to an indemnified block that is in run-off. The full-year benefit ratio for the worksite direct product line continued to increase toward the longer-term target although utilization remains below historical levels. The full-year benefit ratio for the employer-sponsored product lines was in line with the prior year but also remains below the longer-term target. Segment net investment income rose 16.8% for the full-year reflecting higher returns on floating rate securities. The non-cash impact of amortization of intangible assets under purchase accounting reduced full-year 2023 core earnings by $14.6 million, pretax, compared to $15.7 million in 2022.
Total segment sales for the year were $26.2 million, up 62.7% over the prior year, with worksite direct supplemental product sales of $15.1 million and employer-sponsored products of $11.1 million. Persistency remains relatively stable for the segment.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.