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Did Horace Mann Educators beat or miss consensus estimates last quarter?

- **Record Q3 EPS growth**: Core EPS of $1.36 (+64% YoY) driven by 40%+ sales growth in Supplemental and Group Benefits.
- **AI efficiency gains**: GenAI automates 20-30% of customer care tasks, reducing administrative costs and turnover.
- **Strategic investments**: $3-$7M Q4 donation to educators, expanded agent network, and new cancer coverage product.
- **Financial strength**: Full-year EPS guidance raised to $4.50-$4.70, supported by $65M catastrophe loss assumption and 15qtr+ core yield spread benefit.
- **Sustainability focus**: 1.5pt expense ratio reduction target over 3 years through scale-building investments.

**【CEO Summary Section】**
- **Record Q3 core EPS of $1.36**, up 64% YoY, driven by strong growth across all segments.
- **Segment outperformance**: Individual supplemental sales +40% QoQ, Group Benefits sales nearly doubled QoQ, Life sales +16%, Retirement deposits +9%.
- **AI-driven efficiency**: GenAI automates 20-30% of customer care tasks, reducing administrative burden and turnover-related costs.
- **Strategic investments**: Expanded agent network (+30% benefit specialists), new cancer coverage product, and partnerships with Teach for America and Grand Canyon University.
- **Shareholder returns**: $20M repurchased YTD, $43M dividends paid, with $57M remaining under buyback authorization.

**【CFO Financial Commentary】**
- **Q3 core earnings**: $57M, up 64% YoY. Full-year guidance raised to $4.50-$4.70 EPS, reflecting $65M catastrophe losses and $473M-$477M net investment income.
- **P&C performance**: Auto combined ratio 94.9% (improved 3pts YoY), Property combined ratio 83.1% (vs. 90% target). Pretax catastrophe losses $10M Q3 vs. $91M YoY prior year.
- **Expense management**: $1M annual savings from legacy pension termination, ongoing process improvements (e.g., straight-through processing).
- **Investment strength**: Core fixed income new money yield exceeds book yield by 100+ bps, 15th consecutive quarter of spread benefit.

**【Q&A Highlights】**
- **Policy growth trajectory**: All segments show YoY growth (auto +4%, Property +8%, Life +16%), with retention rates above 80% across P&C.
- **Q4 guidance breakdown**: Implies $1-$1.20 EPS, reflecting seasonal auto frequency, $3-$7M Foundation donation, and strategic investment acceleration.
- **Supplemental lead management**: Uses external partner for lead gen, focusing on educator-specific products (e.g., cancer coverage) with 25.4% benefits ratio.
- **Catastrophe outlook**: 2026 cat losses expected to align with long-term averages, with non-rate actions (deductibles, roof schedules) mitigating volatility.
- **Expense ratio reduction**: Aiming to lower expense ratio by 1.5pts over 3 years through scale-building investments in distribution and infrastructure.

Horace Mann Educators Corporation (HMN) Q3 2025 Earnings Call Transcript

- **Core EPS Surges 3x YoY:** Q2 core EPS of $1.06, with full-year guidance raised to $4.15-$4.45.
- **P&C Segment Strength:** Combined ratio improved to 97%, catastrophe losses down 8pts YoY, auto retention top quartile at 84%.
- **Individual Supplemental Growth:** Sales up 43% YoY to $6M, Group Benefits Q3 sales forecast ahead of prior year.
- **Investment Performance:** Core portfolio new money yields exceed book yield for 14th quarter, fixed income yield at 5.79%.

**【CEO Opening Remarks】**
- Core EPS for Q2 2025 was $1.06, a nearly threefold increase year-over-year, driven by strong profitability across all segments.
- Total revenues grew 6%, with net premiums and contract charges up 8%, reflecting robust business momentum.
- Full-year 2025 core EPS guidance raised to $4.15-$4.45, reflecting confidence in sustained growth.

**【CEO Segment Highlights】**
- **Property & Casualty (P&C):** Combined ratio improved to 97% (down 15pts YoY), with catastrophe losses down 8pts YoY. Auto retention remained top quartile at 84%, and property retention at 89%.
- **Life & Retirement:** Core earnings doubled YoY, driven by higher net investment income and lower mortality costs. 403(b) deposits remained strong.
- **Individual Supplemental & Group Benefits:** Sales surged 43% YoY to $6M, with policyholder utilization trends favorable. Group sales in July set a record, signaling Q3 growth.

**【CFO Financial Commentary】**
- Net investment income for the year expected in $470M-$480M range, with core portfolio new money yields exceeding book yield for the 14th consecutive quarter.
- 2025 catastrophe loss guidance maintained at $90M (5-year historical average), despite Q2 favorable results.
- Share buybacks of $13M year-to-date, with $63M remaining under current authorization.

**【Q&A Highlights】**
- **P&C Growth:** Auto retention stabilizing, with Q2 PIF down <1% vs. Q1. Catalyst technology and partnerships (e.g., Crayola, Lakeshore) driving 75% YoY website traffic growth.
- **Group Benefits:** Seasonal volatility expected, but Q3 sales forecast ahead of prior year. Individual Supplemental sales momentum driven by expanded distribution and agent engagement.
- **Investment Portfolio:** Fixed income yield at 5.79%, with commercial mortgage loans and private equity funds outperforming prior year.

Horace Mann Educators (HMN)-7 Aug 25-2025 Q2 Earnings call transcript

- **Q1 Record Performance**: Core EPS +73%, P&C 89.4% combined ratio, California rate hikes drive 8% new business. 
- **Shareholder Value**: Dividend +3%, $7m buybacks YTD. 
- **Risk Mitigation**: $3.7m CA wildfire losses, non-weather claims down 10.5pt. 
- **2025 Outlook**: Auto rates +14.5%, 10.09% investment yield, >10% ROE target.

**【CEO Summary Section】**
- **Record Q1 Performance**: Core EPS of $1.07, up 73% YoY, with P&C combined ratio of 89.4% (10.5pt improvement). 
- **California Rate Impact**: Auto rates +14.5% and property +20% approved, driving 8% new business. 
- **Educator Engagement**: 300,000+ educators interacted with 80th anniversary campaigns, boosting retention. 
- **ESG Leadership**: 61% reduction in Scope 1/2 emissions vs. 2019 baseline, $1m+ to education nonprofits. 
- **Shareholder Returns**: Dividend +3% (17th straight increase), $7m share buybacks YTD. 
- **Cat Mitigation**: $3.7m CA wildfire losses (including $1m assessments), non-weather claims down 10.5pt.

**【CFO Financial Commentary】**
- **Core Earnings Guidance**: $3.85-$4.15 (excludes intangibles), +15% managed portfolio returns. 
- **Segment Breakdown**: 
  - P&C: $27m core ($122m auto net written), 95% combined ratio 
  - Life/Retirement: $8m core, 7% annuity deposits 
  - Individual Supp: $5m sales (+61%), 90% persistency 
- **Investment Income**: $116m (+10%), 10.09% yield on $1.25b fixed income. 
- **Liquidity**: $19m remaining on $50m buyback, 91.6% policyholder retention. 

**【Q&A Highlights】**
1. **Wilma Burdis (Raymond James)**: 
- Q1 Life/Retirement mortality 6% above norm, $600m CMLs underperform. 
- 2Q cat outlook: 90m annualized, 70% from SE. 
2. **John Barnidge (Piper Sandler)**: 
- 61% individual supp growth due to 2024 Q1 being unusually light. 
- Group Benefits: 3.3% Q1 cat, no macro reserve changes. 
- 2025 Outlook: Auto rates +14.5%, property +20% in CA. 
- 2025 ROE >10% vs. 2024 9.8%, 80-year history of +10% ROE in recessions.

Horace Mann Educators Corporation (HMN) Q1 2025 Earnings Call Transcript

- **Record 2024 Performance**: Core EPS up 100% to $3.18, P&C combined ratio 98% (vs. 113% 2022).\n- **2025 Guidance**: $3.60-$3.90 EPS, 10%+ ROE, driven by P&C profitability and multiline growth.\n- **Key Drivers**: 14% P&C premium growth, 6.25% CML returns, and 12% agency production increase.\n- **Wildfire Resilience**: $5-10M losses vs. $779M P&C net premiums, minimal impact on 2025 guidance.\n- **Strategic Investments**: $18M in next-gen cancer product, Catalyst CRM, and agency force expansion.

**【CEO Opening Remarks】**
- Q4 2024 core EPS of $1.62 (93% YoY growth), full year core EPS of $3.18 (100% YoY growth).\n- P&C combined ratio improved to 98% (15pt YoY improvement), driven by rate hikes and underwriting discipline.\n- 2025 guidance: core EPS $3.60-$3.90, ROE ≥10%.\n- Strategy: maintain mid-90s P&C combined ratio, invest in agency force, and launch next-gen cancer product.\n- California wildfires: estimated direct losses $5-10M, under 1% of 2024 P&C net premiums.\n\n**【CFO Financial Details】**
- Full year 2024 core earnings $132M ($3.18 EPS), up 100% YoY.\n- P&C net premiums earned +14%, auto +12%, property +18%.\n- 2025 net investment income guidance: $470-480M (includes CML returns 6.25%, LP 7.25%).\n- 2025 catastrophe losses: $90M (11% of net earned premiums).\n- Share buybacks: $8.5M in 2024, $26M remaining under current authorization.\n\n**【Q&A Highlights】**
- **CML Returns**: 2024 second half improvement ($17M vs. $4M H1), 2025 forecast 6.25%.\n- **Wildfire Impact**: Minimal exposure to LA fires (1% of market share).\n- **Growth Strategy**: Agency force +10% production, 2025 Catalyst CRM rollout.\n- **Auto Pricing**: Mid-single digit rate increases, targeting 90%+ combined ratio.\n- **Supplemental Business**: 2024 sales +12.6%, 2025 cancer product launch.\n- **Catastrophe Risk**: 2025 cat losses in line with 5-year average, 10%+ ROE achievable despite variability.

Horace Mann Educators (HMN)-6 Feb 25-2024 Q4 Earnings call transcript

Horace Mann Educators (HMN)-5 Nov 24-2024 Q3 Earnings call transcript

Horace Mann Educators Corporation (HMN) Q1 2024 Earnings Call Transcript

Horace Mann Educators (HMN)-8 Feb 24-2023 Q4 Earnings call transcript

Horace Mann Educators (HMN)-3 Nov 23-2023 Q3 Earnings call transcript

Horace Mann Educators (HMN)-2 Aug 23-2023 Q2 Earnings call transcript

Horace Mann Educators (HMN)-5 May 23-2023 Q1 Earnings call transcript

Horace Mann Educators (HMN)-8 Feb 23-2022 Q4 Earnings call transcript

Horace Mann Educators (HMN)-5 Nov 22-2022 Q3 Earnings call transcript

Horace Mann Educators (HMN)-5 Aug 22-2022 Q2 Earnings call transcript

Horace Mann Educators (HMN)-6 May 22-2022 Q1 Earnings call transcript

Horace Mann Educators (HMN)-2 Feb 22-2021 Q4 Earnings call transcript

Horace Mann Educators (HMN)-5 Nov 21-2021 Q3 Earnings call transcript

Horace Mann Educators (HMN)-7 Aug 21-2021 Q2 Earnings call transcript

Horace Mann Educators (HMN)-8 May 21-2021 Q1 Earnings call transcript

Horace Mann Educators (HMN)-3 Feb 21-2020 Q4 Earnings call transcript

Horace Mann Educators (HMN)-3 Nov 20-2020 Q3 Earnings call transcript

Horace Mann Educators (HMN)-7 Aug 20-2020 Q2 Earnings call transcript

Horace Mann Educators (HMN)-9 May 20-2020 Q1 Earnings call transcript

Horace Mann Educators (HMN)-6 Feb 20-2019 Q4 Earnings call transcript

Horace Mann Educators (HMN)-10 Nov 19-2019 Q3 Earnings call transcript

Horace Mann Educators (HMN)-10 Aug 19-2019 Q2 Earnings call transcript

Horace Mann Educators (HMN)-3 May 19-2019 Q1 Earnings call transcript

Horace Mann Educators (HMN)-6 Feb 19-2018 Q4 Earnings call transcript

Horace Mann Educators (HMN)-1 Nov 18-2018 Q3 Earnings call transcript

Horace Mann Educators (HMN)-3 Aug 18-2018 Q2 Earnings call transcript

Horace Mann Educators (HMN)-6 May 18-2018 Q1 Earnings call transcript

Horace Mann Educators (HMN)-7 Feb 18-2017 Q4 Earnings call transcript

Horace Mann Educators (HMN)-25 Oct 17-2017 Q3 Earnings call transcript

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