HORACE MANN EDUCATORS CORP DE
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
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Supplemental & Group Benefits
Benefit ratios reflect favorable impact from the annual reserve assumption review
Slight decline in premium due to run-off* of an indemnified block of employer-sponsored products; net premiums earned increased 2.2% excluding the run-off
The following table provides certain information for Supplemental & Group Benefits for the years indicated.
| ($ in millions) | Year Ended December 31, | 2024-2023 | |||
|---|---|---|---|---|---|
| 2024 · 2023 · Change % | |||||
| Supplemental & Group Benefits | |||||
| Net premiums and contract charges earned | $254.9 | $259.8 | -1.9% | ||
| Net investment income | 38.1 | 38.9 | -2.1% | ||
| Other income | (4.6) | (11.1) | 58.6% | ||
| Benefits, settlement expenses and change in reserves | 78.8 | 88.9 | -11.4% | ||
| Interest credited | 4.7 | 3.9 | 20.5% | ||
| Operating expenses (includes DAC unlockingand amortization expense) | 112.5 | 110.5 | 1.8% | ||
| Intangible asset amortization expense | 14.3 | 14.6 | -2.1% | ||
| Income before income taxes | 78.1 | 69.7 | 12.1% | ||
| Net income | 60.4 | 54.9 | 10.0% | ||
| Core earnings* | 60.4 | 54.9 | 10.0% | ||
| Adjusted core earnings* | 71.7 | 66.4 | 8.0% | ||
| Benefits ratio(1) | 32.7% | 35.7% | -3.0 | pts | |
| Operating expense ratio(2) | 39.0% | 38.4% | 0.6 | pts | |
| Pretax profit margin(3) | 27.1% | 24.3% | 2.8 | pts | |
| Worksite direct products benefits ratio | 27.2% | 29.1% | -1.9 | pts | |
| Worksite direct premium persistency (rolling 12 months) | 90.5% | 91.4% | -0.9 | pts | |
| Employer-sponsored products benefits ratio | 37.8% | 41.4% | -3.6 | 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.
2024 net income for the Supplemental & Group Benefits segment was $60.4 million. Segment net premiums earned and benefits expense declined slightly due to an indemnified block that is in run-off. The full-year benefit ratio for the worksite direct product line declined due to a slight increase in lapses. The full-year benefit ratio for the employer-sponsored product lines declined due to favorable impact from the annual reserve assumption review, primarily related to favorable morbidity in our group long-term disability book. Segment net investment income declined 2.1% due to lower returns on the commercial mortgage loan funds. The non-cash impact of amortization of intangible assets under purchase accounting reduced full-year 2024 core earnings by $14.3 million, pretax, compared to $14.6 million in 2023.
Total segment sales* for the year were $25.6 million, down 2.3% from the prior year, with worksite direct supplemental product sales* of $17.0 million and employer-sponsored products of $8.7 million. Persistency remains strong at 90.5%.
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