Key Highlights

  • Core Earnings rose 50.4% to a record USD 85.1 million, or USD 2.06 per diluted share, from USD 1.36.
  • Net income was USD 58.5 million, or USD 1.41 per share, as after-tax net Investment losses reached USD 20.6 million.
  • Net investment income rose 17%, and the Property and Casualty combined ratio improved to 83.6%.
  • Full-year 2026 core EPS guidance rose to USD 5.75 to USD 5.95, and adjusted Book Value per share rose 7.5%.

Record Core Earnings

Horace Mann Educators Corporation (NYSE:HMN), the largest multiline financial services company focused on educators, reported third-quarter 2026 core earnings of USD 85.1 million, or USD 2.06 per diluted share, up 50.4% from USD 56.6 million, or USD 1.36. Net Income was USD 58.5 million, or USD 1.41 per share, essentially flat against USD 58.3 million, or USD 1.40. Total revenues were USD 439.2 million versus USD 438.5 million.

Net investment losses after tax were USD 20.6 million compared with gains of USD 2.7 million, and non-core earnings after tax were a loss of USD 6.0 million, which explains why net income lagged core earnings. President and Chief Executive Officer Marita Zuraitis said the quarter produced the core earnings that the company described as the highest in its history, on Property and Casualty underwriting, higher net investment income and continued growth across the diversified business.

Analyst estimates were EPS of USD 1.10 against reported EPS of USD 2.06.

Underwriting and Investment Income

The Property and Casualty segment combined ratio was 83.6%, an improvement from the prior year. Net investment income increased 17% over the prior year, while premiums, contract charges and fee Revenue increased 3%.

For the first nine months, total revenues rose 3.6% to USD 1,312.0 million, net income rose 12.2% to USD 141.3 million, or USD 3.43 per share, and core earnings rose 27.7% to USD 185.8 million, or USD 4.50 per share against USD 3.50.

Book Value and Guidance

Core Return on Equity over the last twelve months was 14.2% versus 13.8%.

Based on performance through nine months, the company increased its full-year 2026 core EPS guidance to a range of USD 5.75 to USD 5.95. Zuraitis said the company remains well positioned to achieve its long-term financial objectives and to accelerate long-term value creation for shareholders.

Book value per share was USD 35.11, down 0.6%, while adjusted book value per share was USD 42.49, up 7.5%, and tangible book value per share was USD 37.85, up 9.4%.

Total revenues were USD 439.2 million versus USD 438.5 million, and net income was USD 58.5 million, or USD 1.41 per diluted share, versus USD 58.3 million, or USD 1.40. Net investment losses after tax were USD 20.6 million versus gains of USD 2.7 million, and non-core earnings after tax were a loss of USD 6.0 million versus USD 1.0 million. For the nine months, total revenues were USD 1,312.0 million versus USD 1,266.6 million, net income was USD 141.3 million versus USD 125.9 million, and core earnings were USD 185.8 million versus USD 145.5 million. Core return on equity for the last twelve months was 14.2% versus 13.8%. The company is headquartered in Springfield, Illinois, and focuses on educators and others who serve the community.

Items to Follow

Catastrophe losses in Property and Casualty, investment income trends and the pace of growth in supplemental and group benefits are the items to follow, along with the fourth-quarter result against the raised guidance range.