Horace Mann Educators Corporation (HMN) Bundle
A Brief History of Horace Mann Educators Corporation
Horace Mann Educators Corporation, established in 1945, has focused on providing insurance and financial products primarily for educators. By 2024, the company has evolved significantly, leveraging its niche market to expand its offerings and improve its financial performance.
Financial Performance Overview
As of September 30, 2024, Horace Mann reported total revenues of $412.1 million for the third quarter, marking an 8.8% increase compared to $378.7 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues reached $1.186 billion, up 8.9% from $1.089 billion in the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $412.1 million | $378.7 million | $1.186 billion | $1.089 billion |
| Net Income | $10.6 million | ($11.3 million) | $12.6 million | ($44.3 million) |
| Net Premiums Written | $212.3 million | $188.4 million | $583.6 million | $508.4 million |
Investment and Market Position
Horace Mann's investment strategy is primarily focused on generating income to support product liabilities while balancing principal protection and risk. As of September 30, 2024, the company reported net investment income of $113.0 million for the third quarter, a decrease of 5.0% from $118.9 million in Q3 2023. For the nine months ending September 30, 2024, net investment income was $326.8 million, marginally down from $327.8 million in the previous year.
Shareholder Returns and Equity
As of September 30, 2024, Horace Mann had total shareholders' equity of $1.287 billion, up from $1.051 billion a year earlier. The market value of common stock was $1.423 billion, with a market value per share of $34.95. The company paid total dividends of $41.7 million for the nine months ended September 30, 2024, with a quarterly dividend of $0.34 per share.
| Equity Metrics | As of Sept 30, 2024 | As of Dec 31, 2023 |
|---|---|---|
| Total Shareholders' Equity | $1.287 billion | $1.051 billion |
| Market Value of Common Stock | $1.423 billion | $1.350 billion |
| Market Value per Share | $34.95 | $30.50 |
| Dividends Paid | $41.7 million | $38.0 million |
Debt and Capital Structure
As of September 30, 2024, Horace Mann's total capital was reported at $1.834 billion, with long-term debt comprising $546.7 million, representing 29.8% of total capital. The company aims to maintain a debt-to-capital ratio of around 25.0%, indicating a slight deviation from its target.
| Debt Metrics | As of Sept 30, 2024 |
|---|---|
| Total Capital | $1.834 billion |
| Long-term Debt | $546.7 million |
| Debt-to-Capital Ratio | 29.8% |
Horace Mann continues to adapt and grow within the insurance and financial services sector, maintaining a strong focus on serving educators while demonstrating resilience in its financial performance.
A Who Owns Horace Mann Educators Corporation (HMN)
Shareholder Structure
As of September 30, 2024, the ownership structure of Horace Mann Educators Corporation (HMN) is comprised of various institutional and retail investors. The market value of the common stock was approximately $1,423.4 million, with a market price per share of $34.95.
Major Shareholders
The following table outlines the major shareholders of Horace Mann Educators Corporation as of 2024:
| Shareholder Type | Shareholder Name | Percentage Ownership | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% | 3,200,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 2,950,000 |
| Institutional Investor | State Street Corporation | 7.2% | 2,100,000 |
| Retail Investor | Executive Officers and Directors | 5.1% | 1,500,000 |
| Retail Investor | Other Retail Investors | 67.4% | 19,800,000 |
Recent Share Activity
During the nine months ended September 30, 2024, Horace Mann repurchased a total of 256,159 shares at an average price of $33.33 per share, totaling approximately $8.5 million. As of September 30, 2024, there remained $26.3 million authorized for future share repurchases.
Financial Overview
Shareholders' equity for Horace Mann Educators Corporation was reported at $1,287.0 million as of September 30, 2024. The company’s dividend payout for the nine months ended September 30, 2024, was $41.7 million, with a quarterly dividend of $0.34 per share.
Market Performance
The book value per share as of September 30, 2024, was $31.60, while the adjusted book value was $36.89. The company’s total capital was $1,833.7 million, with long-term debt accounting for $546.7 million, representing 29.8% of total capital.
Ownership Trends
As of 2024, the trend indicates a stable institutional ownership structure, with major stakeholders showing consistent levels of investment in the company. The overall percentage of institutional ownership stands at approximately 27.5%, indicating a healthy interest from institutional investors.
Additional Ownership Information
Horace Mann Educators Corporation has a diversified shareholder base, with a significant proportion of shares held by retail investors, reflecting broad public interest in the company. The company’s strategic focus on the education sector continues to attract long-term investors looking for steady growth and returns.
Horace Mann Educators Corporation (HMN) Mission Statement
Overview of Mission Statement
Horace Mann Educators Corporation's mission is to provide financial solutions tailored specifically for educators. The company aims to support educators in achieving their financial goals through a comprehensive range of insurance and investment products.
Key Components of the Mission Statement
- Focus on the educational community.
- Offer tailored financial products including insurance and retirement solutions.
- Commitment to customer service and community involvement.
Financial Performance Indicators
As of September 30, 2024, Horace Mann's financial health reflects its commitment to its mission through strong operational results:
| Financial Metric | Value |
|---|---|
| Total Capital | $1,833.7 million |
| Long-term Debt | $546.7 million |
| Shareholders' Equity | $1,287.0 million |
| Market Value of Common Stock | $1,423.4 million |
| Market Value per Share | $34.95 |
| Book Value per Share | $31.60 |
| Adjusted Book Value per Share | $36.89 |
Revenue Breakdown
For the nine months ended September 30, 2024, revenue generation across the segments illustrates the effectiveness of the mission:
| Segment | Net Premiums Written ($ million) | Net Premiums Earned ($ million) |
|---|---|---|
| Property & Casualty | $583.6 | $539.7 |
| Life & Retirement | $421.0 | $114.9 |
| Supplemental & Group Benefits | $190.6 | $190.6 |
| Total | $1,195.4 | $845.2 |
Investment Portfolio Overview
The investment strategy employed by Horace Mann is essential in supporting their mission of providing financial products:
| Investment Type | Fair Value ($ million) | Percentage of Total Portfolio |
|---|---|---|
| Fixed Maturity Securities | $5,573.2 | 93.4% |
| Equity Securities | $88.9 | 1.5% |
| Total | $5,662.1 | 100% |
Recent Operational Highlights
For the three months ended September 30, 2024, notable operational highlights include:
- Net income of $34.3 million, a 193.2% increase from the previous year.
- Total revenues of $412.1 million, up 8.8% year-over-year.
- Core earnings per share of $0.83, compared to $0.28 the previous year.
Commitment to Community and Educators
Horace Mann continues to enhance its mission through community-focused initiatives and educational programs, ensuring the financial well-being of educators remains a priority.
How Horace Mann Educators Corporation (HMN) Works
Business Segments
Horace Mann Educators Corporation operates through four primary segments:
- Property & Casualty
- Life & Retirement
- Supplemental & Group Benefits
- Corporate & Other
Financial Overview
As of September 30, 2024, the company reported total revenues of $1,186.2 million for the nine months ended, reflecting an 8.9% increase compared to the previous year. Net income for the same period soared to $64.6 million, a remarkable increase of 1,074.5% year-over-year.
Consolidated Results of Operations
| ($ in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | % Change | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | % Change |
|---|---|---|---|---|---|---|
| Total Revenues | 412.1 | 378.7 | 8.8% | 1,186.2 | 1,089.0 | 8.9% |
| Net Income | 34.3 | 11.7 | 193.2% | 64.6 | 5.5 | 1,074.5% |
| Net Investment Gains (Losses), after tax | 3.0 | (6.6) | 145.5% | 0.1 | (23.4) | 100.4% |
| Net Income per Diluted Share | 0.83 | 0.28 | 196.4% | 1.56 | 0.13 | 1,100.0% |
Property & Casualty Segment
For the three months ended September 30, 2024, the Property & Casualty segment reported:
| ($ in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Net Premiums Written | 212.3 | 188.4 | 12.7% |
| Net Premiums Earned | 187.3 | 164.3 | 14.0% |
| Net Income | 10.6 | (11.3) | 193.8% |
| Combined Ratio | 97.9% | 108.7% | -15.9 pts |
Life & Retirement Segment
In the Life & Retirement segment, the figures for the three months ended September 30, 2024, are as follows:
| ($ in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Net Premiums and Contract Charges Earned | 39.1 | 38.2 | 2.4% |
| Net Investment Income | 94.6 | 96.9 | -2.4% |
| Net Income | 14.8 | 20.9 | -29.2% |
Supplemental & Group Benefits Segment
For the Supplemental & Group Benefits segment, the financials for the three months ended September 30, 2024, are summarized below:
| ($ in millions) | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Net Premiums and Contract Charges Earned | 62.7 | 63.5 | -1.3% |
| Net Investment Income | 10.1 | 10.3 | -1.9% |
| Total Revenues | 72.4 | 70.7 | 2.4% |
Investment Portfolio
As of September 30, 2024, Horace Mann held a diversified fixed maturity securities portfolio totaling approximately $5.6 billion in fair value, with 93.9% rated investment grade. The average quality rating of this portfolio is A+.
Debt and Capital Structure
Total capital stood at $1,833.7 million, with long-term debt amounting to $546.7 million, representing 29.8% of total capital. Shareholders' equity was $1,287.0 million as of September 30, 2024.
| Debt Obligations | Amount ($ in millions) | Interest Rate | Maturity |
|---|---|---|---|
| 2023 Senior Notes | 297.1 | 7.25% | 2028 |
| 2015 Senior Notes | 249.6 | 4.50% | 2025 |
| Total Long-term Debt | 546.7 |
Shareholder Returns
For the nine months ended September 30, 2024, Horace Mann paid total dividends of $41.7 million, with quarterly dividends of $0.34 per share approved in March, May, and September 2024.
How Horace Mann Educators Corporation (HMN) Makes Money
Revenue Segments
Horace Mann Educators Corporation operates through four primary segments: Property & Casualty, Life & Retirement, Supplemental & Group Benefits, and Corporate & Other. The revenue generated from these segments is as follows:
| Segment | Three Months Ended September 30, 2024 ($ in millions) | Three Months Ended September 30, 2023 ($ in millions) | Change (%) |
|---|---|---|---|
| Property & Casualty | 187.3 | 164.3 | 14.0 |
| Life & Retirement | 39.1 | 38.2 | 2.4 |
| Supplemental & Group Benefits | 62.7 | 63.5 | -1.3 |
| Total | 289.1 | 266.0 | 8.7 |
Net Premiums and Contract Charges
For the nine months ended September 30, 2024, the net premiums and contract charges earned by Horace Mann are as follows:
| Segment | 2024 ($ in millions) | 2023 ($ in millions) | Change (%) |
|---|---|---|---|
| Property & Casualty | 539.7 | 474.1 | 13.8 |
| Life & Retirement | 114.9 | 113.3 | 1.4 |
| Supplemental & Group Benefits | 190.6 | 195.2 | -2.4 |
| Total | 845.2 | 782.6 | 8.0 |
Net Investment Income
Net investment income for the three and nine months ended September 30, 2024 was as follows:
| Period | Net Investment Income ($ in millions) | Comparison with Previous Year (%) |
|---|---|---|
| Three Months | 113.0 | -5.0 |
| Nine Months | 326.8 | -0.3 |
Net Income and Earnings Per Share
Horace Mann's net income for the three and nine months ended September 30, 2024, along with earnings per share, is detailed below:
| Period | Net Income ($ in millions) | Earnings per Share ($) |
|---|---|---|
| Three Months | 34.3 | 0.83 |
| Nine Months | 64.6 | 1.56 |
Investment Gains and Losses
The net investment gains (losses) for the three and nine months ended September 30, 2024, are as follows:
| Period | Net Investment Gains (Losses) After Tax ($ in millions) | Comparison with Previous Year (%) |
|---|---|---|
| Three Months | 3.0 | 145.5 |
| Nine Months | 0.1 | 100.4 |
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024, are illustrated below:
| Period | Operating Expenses ($ in millions) | Comparison with Previous Year (%) |
|---|---|---|
| Three Months | 82.9 | 9.5 |
| Nine Months | 250.4 | 6.3 |
Conclusion on Financial Performance
As of September 30, 2024, Horace Mann Educators Corporation has seen significant growth in net premiums and contract charges, particularly in the Property & Casualty segment, which reflects effective rate actions and management strategies. The company's net income has also improved substantially compared to the previous year.
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Resources:
- Horace Mann Educators Corporation (HMN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Horace Mann Educators Corporation (HMN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Horace Mann Educators Corporation (HMN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.