HORACE MANN EDUCATORS CORP /DE/

HMN

NYSEMid CapFinancials

13F Pro Quality Score

60.4/100

Rank #859 of 2,962 stocksTOP 50%

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Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

52.1/100

Profitability

67.7/100

Balance Sheet

44.9/100

Earnings Quality

88.9/100

Free Cash Flow

85.8/100

Institutional Flow

54.6/100

Revenue Scale

60.6/100

Dilution Risk

70.8/100

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What's Driving HMN's Business? Latest 10-Q Breakdown

AI-extracted from the 10-Q filed 2026-08-07 — Q2 2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Q2 net income surged 41.5% to $41.6M on improved P&C results and lower catastrophe losses, with core earnings guidance of $4.60-$4.90 per share for full year 2026.

Biggest Revenue Drivers

Net premiums and contract charges earned$316.9M+4.7% YoY

Higher sales in Property business lines and strong growth in Supplemental and Group Benefits segment

Net investment income$120.5M+8.8% YoY

Continued strong returns from fixed income portfolio; investment yield excluding limited partnerships was 4.7% annualized pretax

Biggest Revenue Drivers

Total revenue: $443.5M+7.7% YoY

Net premiums and contract charges earned$316.9M+4.7% YoY

Higher sales in Property business lines and strong growth in Supplemental and Group Benefits segment

Net investment income$120.5M+8.8% YoY

Continued strong returns from fixed income portfolio; investment yield excluding limited partnerships was 4.7% annualized pretax

Other income$6.2M+47.6% YoY

Various segment income sources

Net investment losses($0.1)Mimproved from ($5.9)M loss YoY

Lower impairment losses from routine portfolio management activities

Largest Expense Items

Benefits, claims and settlement expenses$186.3M+1.5% YoY

P&C lower catastrophe/underlying losses offset by higher Supplemental & Group Benefits utilization

Operating expenses$108.5M+12.0% YoY

Higher expenses related to Early Retirement Offering and acquisition expenses in Corporate & Other segment

Interest credited$54.6M+3.6% YoY

Interest credited to policyholders; average deferred annuity rate excluding reinsured block was 3.4%

DAC amortization expense$32.0M+7.0% YoY

Premium increases in P&C segment driving higher commission and underwriting expenses

Watch Items from the Filing

Substantial unrealized losses on fixed maturity securities portfolio: $410.5M gross unrealized losses on $5.8B fair value portfolio (6.7% of portfolio), primarily due to 30 basis point rise in 10-year Treasury rates since year-end; 97.6% investment grade rating but 370 positions trading below 80% of carrying value.
Property & Casualty segment catastrophe exposure remains significant: 22 PCS-designated events in Q2 2026 generated $24.2M losses (11.8 points to combined ratio); guidance assumes ~$75M annual catastrophe losses.
Two material acquisitions announced post-quarter: Employee Services LLC acquisition (~$115M) and Reserve National Insurance Company acquisition (~$125M) expected close Q4 2026 and Q1 2027 respectively, funded via cash and credit facility borrowings.
Life & Retirement net interest spread compression risk: 100 basis point decline in reinvestment rates would reduce segment net investment income by ~$2.1M annually; average crediting rate on fixed annuities at 3.9% with 66% of account values at guaranteed minimums below 4%.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-Q on SEC EDGAR →