Horace Mann Educators (NYSE:HMN) detailed record full-year 2025 results and outlined its 2026 outlook during its fourth-quarter earnings call, pointing to broad-based top-line momentum, improving profitability across segments, and ongoing investments in marketing, distribution, and operating efficiency.
Record 2025 results, with unusually low catastrophe losses
CEO Marita Zuraitis said the company delivered record 2025 core earnings per share of $4.71 and a 12.4% shareholder return on equity, which she described as the highest earnings Horace Mann has reported. Management highlighted that all business segments were in line with or exceeding profitability targets and that total revenues rose 7% year-over-year, with net premiums and contract deposits earned also up more than 7%.
CFO Ryan Greenier provided a normalized view, saying that when adjusting for catastrophe losses that were “more than one standard deviation below historic averages,” as well as favorable prior-year reserve development, opportunistic share repurchases, and incremental strategic spending, normalized core EPS was approximately $3.95. Greenier said this was in line with the company’s original 2025 guidance range of $3.85 to $4.15 and should be used as the baseline for comparing 2026 guidance.
Segment performance: P&C profitability improved; Life and benefits sales hit records
Management described progress across all three operating segments.
- Property & Casualty: Zuraitis said the underlying combined ratio was 84.3%, a five-point improvement year-over-year, reflecting rate and non-rate actions aimed at reducing volatility. P&C sales increased 6%. Greenier said full-year P&C core earnings were $112 million, more than double the prior year, with net written premiums up 7% to $830 million and a reported combined ratio of 89.7, improved by more than eight points. He also cited $19 million of favorable prior-year development, driven mainly by lower-than-expected claims severity and improved claims handling in shorter-tail coverages.
- Auto and property details: Auto net written premiums rose to $502 million, and the combined ratio improved to 96.5, which management said was in line with its mid-90s target. Greenier said household retention remained near 84%. Property net written premiums increased 14% to $328 million, while the property combined ratio improved to 78.3, primarily due to lower catastrophe losses, with retention above 88%.
- Life & Retirement: Greenier said segment core earnings increased 13% to $61 million, with net premiums written and contract deposits up 7% to $612 million. Zuraitis highlighted record life sales in the fourth quarter, up 21% year-over-year, and said retirement deposits increased 4% in the quarter. Greenier added that life persistency remained near 96%, mortality was modestly favorable, retirement persistency rose to 92%, and net annuity contract deposits increased by nearly 7%.
- Supplemental & Group Benefits: Zuraitis said the segment delivered record sales and generated 25% of core earnings, helping diversify results and reduce volatility. Greenier reported segment core earnings of $59 million and net written premiums of $267 million. Individual Supplemental net written premiums increased 4% to $126 million with a benefits ratio of 26.8 and persistency above 89%, while Group Benefits net written premiums increased 6% to $142 million with a benefits ratio of 45.8.
Marketing and distribution expansion emphasized
Zuraitis said Horace Mann expanded distribution and strengthened marketing capabilities to support sustained growth. She cited an increase in unaided brand awareness to 35% in 2025 from less than 10% a year earlier, and pointed to partnerships including Crayola and a new partnership with Get Your Teach On, which she said would reach more than 800,000 educators through multiple channels.
She also said new-business customer interactions increased 37% in the fourth quarter, points of distribution increased 15% across channels, and improvements to the company’s website and digital customer experience helped website traffic and online-originated quotes more than double during the year. The company introduced the Horace Mann Club, described as a platform for financial wellness tools, classroom resources, and educator-specific perks.
In response to an analyst question about distribution initiatives and a shift toward a specialist model, management said 2025 was its “strongest year” from a distribution perspective, citing record agency force levels and growth in benefit specialists. Zuraitis added that the company ended 2025 with close to 1.1 million educator households, up from about 1 million at the start of the year, and said Horace Mann expects risks in force to “turn positive in the second half” of 2026 in auto given competitive dynamics.
2026 guidance: EPS growth on a normalized basis, with consistent catastrophe assumptions
Greenier said the company’s 2026 core EPS guidance range is $4.20 to $4.50, which he characterized as nearly 10% growth versus normalized 2025 earnings, consistent with management’s Investor Day goals of a 10% average compound annual growth rate in core EPS and a sustainable 12% to 13% core return on equity.
Guidance assumptions included:
- Total net investment income of $485 million to $495 million, including managed portfolio net investment income of $385 million to $395 million.
- Commercial mortgage loan fund returns of 6.5% and limited partnership returns of 8%. Greenier noted that one commercial mortgage loan fund, Sound Mark Partners, is in runoff and expected to continue underperforming, which will modestly pressure yields, though he said this was idiosyncratic and already embedded in planning assumptions.
- A catastrophe loss assumption of approximately $90 million, which Greenier said reflects the company’s established planning framework and does not assume under- or outperformance based on one year’s results.
On reserving, Greenier reiterated that prior-year development—favorable or adverse—is not included in guidance, and said the company is being prudent, particularly on liability coverages, while noting the impact of social inflation and broader uncertainty around inflation trends.
Reinsurance, expenses, capital return, and community initiatives
Greenier said the company completed its 2026 property catastrophe reinsurance renewal in January with “very favorable” results, including a nearly 15% reduction in rate on line. Horace Mann increased the size of its property catastrophe tower to $240 million of coverage while keeping the attachment point at $35 million, and management said total annual reinsurance spend remains flat year-over-year even with additional coverage.
On expenses, Greenier said the company implemented actions including termination of a legacy pension plan, continued rollout of straight-through processing and automation, and productivity gains from technology investments. He said an early retirement offering introduced late in 2025 would be treated as non-core, with run-rate savings expected to “more meaningfully impact 2027.” Management said the initiatives have resulted in more than $10 million of annualized savings and outlined expectations for expense ratio improvement over the three-year plan: roughly 25 basis points in 2026, an additional 25 to 50 basis points in 2027, and 50 to 75 basis points in 2028.
Capital management and shareholder returns were also discussed. Zuraitis said the company repurchased $21 million of shares in 2025 and highlighted an additional $50 million authorization approved in May. Greenier said the company repurchased nearly 500,000 shares in 2025 at an average price of $41.83, and repurchased about 140,000 shares through Jan. 30, 2026 at an average price of $43.36, with roughly $49 million remaining on the authorization. He also said tangible book value per share rose more than 9% year-over-year.
Separately, Zuraitis said Horace Mann donated $5 million in the fourth quarter to the Horace Mann Educators Foundation, which supports grants tied to food insecurity programs, classroom supplies, and educator professional development.
About Horace Mann Educators (NYSE:HMN)
Horace Mann Educators Corporation, based in Springfield, Illinois, specializes in insurance and retirement solutions tailored to educators and school employees across the United States. Founded in 1945, the company partners with public school districts to deliver property and casualty insurance products—including auto, home and liability coverage—through a network of dedicated local agents. Its targeted approach focuses on understanding the unique needs and schedules of teachers, administrators and other school staff, distinguishing its services within the broader insurance market.
In addition to property and casualty offerings, Horace Mann provides life and disability insurance, annuities and retirement plan products designed to help educators plan for financial security beyond their teaching careers.
