Horace Mann's Q2 2025 Earnings Call: Unpacking Contradictions in Auto Insurance Growth and Retention

Auto insurance retention and growth, individual supplemental sales and new districts, catastrophe loss ratio and guidance, auto and home growth and retention are the key contradictions discussed in Horace Mann Educators' latest 2025Q2 earnings call.



Strong Financial Performance:
- Horace Mann Educator's core earnings per share for Q2 2025 were $1.06, nearly threefold higher than the previous year.
- Total revenues increased by 6%, with total net premiums and contract charges earned up by 8%.
- This growth was driven by strong business profitability and solid growth momentum, along with lower catastrophe losses compared to prior years.

Property and Casualty Segment Improvement:
- The Property and Casualty segment reported a combined ratio of 97%, a nearly 15-point improvement over the prior year.
- Core earnings in this segment were $17 million, a $25 million improvement from the segment loss recorded a year ago.
- The improvement was the result of non-rate underwriting actions to reduce property volatility, favorable prior year development, and lower catastrophe losses.

Life and Retirement Segment Growth:
- Core earnings in the Life and Retirement segment doubled from the prior year, driven by higher net investment income returns.
- Limited partnership and commercial mortgage loan fund returns outpaced last year's results, and new money yields in the core portfolio exceeded book yield for the 14th consecutive quarter.
- Growth was supported by strong performance in the core fixed income portfolio and favorable investment returns.

Strategic Investments and Sales Momentum:
- Individual Supplemental sales increased by 43% year-over-year in Q2, achieving $6 million.
- Horace Mann's strategy of sustained profitable growth, sales force growth, and effective marketing tools contributed to this momentum.
- Investments in technology and marketing programs, such as the Catalyst platform, were crucial to enhancing agent productivity and customer engagement.