10-Q · May 8, 2026
Horace Mann Educators Corporation reported a revenue of $429.3 million for Q1 2026, which represents a 3.1% increase compared to $416.4 million in Q1 2025. The company's net income rose to $41.2 million, up 7.9% from…
Earnings analysis · 10-Q
HMN earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Horace Mann delivered strong second-quarter results, with revenue up 7.7% year over year to $443.5 million, diluted EPS increasing to $1.01 from $0.71, and net income rising 41.5% to $41.6 million. Property & Casualty…
Read full summary
Horace Mann delivered strong second-quarter results, with revenue up 7.7% year over year to $443.5 million, diluted EPS increasing to $1.01 from $0.71, and net income rising 41.5% to $41.6 million. Property & Casualty was the primary earnings driver as its combined ratio improved to 89.6%, while Life & Retirement and Supplemental & Group Benefits experienced core earnings declines. Operating cash flow remained healthy at $285.0 million year to date, and management raised 2026 core income guidance to $4.60-$4.90 per diluted share from $4.20-$4.50, although investment-rate sensitivity, unrealized losses, benefits inflation and acquisition costs remain key risks.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.01
What stood out
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Revenue and earnings accelerated
Total revenue increased to $443.5 million from $411.7 million year over year, a 7.7% increase, and was up from $429.3 million in Q1 2026. Diluted EPS rose to $1.01 from $0.71, while net income increased 41.5% to $41.6 million.
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P&C profitability improved sharply
Property & Casualty core earnings increased 56.4% to $25.8 million. Its combined ratio improved to 89.6% from 98.1%, supported by catastrophe losses of $24.2 million versus $29.7 million and $6.6 million of favorable prior-year reserve development.
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Investment income strengthened
Net investment income increased 8.8% to $120.5 million, driven primarily by higher fixed-income portfolio returns. The pretax annualized portfolio yield excluding limited partnerships rose to 4.7% from 4.3%.
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Operating cash generation remained solid
Operating cash flow for the first six months was $285.0 million, up 4.7% from $272.1 million. Cash increased to $46.2 million from $27.5 million at year-end despite $29.1 million of dividends and $18.2 million of share repurchases.
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Full-year core outlook raised
Management raised 2026 core income expectations to $4.60-$4.90 per diluted share from $4.20-$4.50. The outlook also targets core ROE of over 12%.
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Investment portfolio quality remains high
The fixed-maturity portfolio remained predominantly investment grade: 97.6% based on fair value, with an average quality rating of A+ and total fair value of $5.767 billion.
What to watch
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Interest-rate-driven investment losses
Fixed-maturity securities had $410.5 million of gross unrealized losses across 2,324 positions, including $358.5 million of pretax net unrealized losses. Management attributed the losses primarily to higher interest rates, but future changes could require impairment recognition.
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Benefits pressure in growth segment
Supplemental & Group Benefits' benefits ratio increased to 46.8% from 36.7%, while Group Benefits' ratio rose to 62.2% from 44.8%. Management cited higher utilization and strong growth, particularly in the Paid Family Medical Leave enhancement.
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Elevated operating and acquisition costs
Operating expenses increased 12.0% to $108.5 million, including $6.7 million of second-quarter Early Retirement Offering costs and $2.5 million of acquisition-related expenses. Corporate & Other operating expenses rose 239.5% to $12.9 million.
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Acquisition funding requirements
The company expects to fund the approximately $115 million ESI acquisition and approximately $125 million RNIC acquisition, plus a $7.4 million reinsurance ceding commission, with cash on hand and borrowings under its existing credit facility.
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Life & Retirement core earnings declined
Life & Retirement core earnings declined 32.5% to $16.6 million despite revenue growth to $143.2 million. Life benefits increased $7.5 million in the quarter, partly offset by a favorable market-risk-benefit adjustment in Retirement.
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Higher financing costs and obligations
Interest expense rose 11.6% to $9.6 million in the quarter, and long-term debt increased to $594.2 million from $593.4 million at year-end. The company also had $1.0695 billion of FHLB funding agreements outstanding at June 30, 2026.
Management's outlook
Management estimates 2026 full-year core income of $4.60-$4.90 per diluted share, versus the prior $4.20-$4.50 outlook. Additional quantitative targets include Property & Casualty low-to-mid-90s combined ratio with approximately $75 million of catastrophe losses, Supplemental & Group Benefits blended benefits ratio of approximately 42%, and pretax net investment income of $465-$475 million.
Earlier filings 4
10-Q · November 7, 2025
Horace Mann Educators Corporation reported strong results for Q3 2025, with a notable increase in both revenue and net income. Revenues rose to $438.5 million, up 6.4% year-over-year, while net income soared 70% to…
10-Q · August 6, 2025
Horace Mann Educators Corporation reported strong Q2 results for 2025 showing significant improvement in net income, driven primarily by better performance in the Property & Casualty segment and lower catastrophe…
10-Q · May 6, 2025
Horace Mann Educators Corporation reported a strong financial performance for Q1 2025, with revenues of $416.4 million, an increase of 7.9% year-over-year. The company achieved a diluted EPS of $0.92, reflecting a 43.8%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.