Horace Mann Educators (HMN) investor relations material

Executive summary

• Achieved record first-quarter core earnings of $53 million ($1.28 per share), up 20% year-over-year, with strong growth across all business lines and continued momentum from investments in distribution, products, and marketing.

• Net income for Q1 2026 rose 7.9% year-over-year to $41.2 million, with total revenues up 3.1% to $429.3 million.

• Life sales rose 17%, individual supplemental up 11%, and group benefits sales more than tripled year-over-year.

• Core shareholder ROE for the trailing 12 months reached 12.7%, up 2.1 percentage points year-over-year.

• Book value per share increased 11% to $36.40; adjusted book value per share up 6.9% to $40.68.

Financial highlights

• Core earnings for the quarter were $53 million, or $1.28 per share, up 20% year-over-year; net income increased 7.9% to $41.2 million.

• Total revenues rose 3.1% year-over-year to $429.3 million; premiums, contract charges, and fee revenue increased 6%.

• Property & Casualty (P&C) core earnings were $39 million, up 46% year-over-year; combined ratio improved to 83.3%.

• Life and retirement core earnings increased 16% to $9 million; persistency near 96%.

• Tangible book value per share increased 9% year-over-year to $45.18 as of Q1 2026.

Outlook and guidance

• Full-year 2026 core EPS guidance maintained at $4.20–$4.50 per share, with core ROE targets of 12–13% and core earnings expected between $175 million and $187 million.

• Management confident in achieving a 10%+ compound annual growth rate in core EPS over three years.

• Property & Casualty segment targets a low-mid 90s combined ratio and ~$90 million in catastrophe losses.

• Net investment income expected between $485–$495 million pre-tax.

• No changes to full-year outlook; results tracking in line with expectations.