Horace Mann Educators Corp. Files 10-Q for Q1 2024

TL;DR

<b>Horace Mann Educators Corp. filed its Q1 2024 10-Q report, detailing financial performance and corporate information.</b>

AI Summary

HORACE MANN EDUCATORS CORP /DE/ (HMN) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Horace Mann Educators Corp. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Horace Mann Educators Corp. is incorporated in Delaware. The company's primary SIC code is FIRE, MARINE & CASUALTY INSURANCE [6331].

Why It Matters

For investors and stakeholders tracking HORACE MANN EDUCATORS CORP /DE/, this filing contains several important signals. This 10-Q filing provides investors with the latest financial data for Horace Mann Educators Corp., crucial for assessing its current performance and future prospects. Understanding the details within this report allows stakeholders to evaluate the company's financial health, operational efficiency, and any potential risks or opportunities.

Risk Assessment

Risk Level: low — HORACE MANN EDUCATORS CORP /DE/ shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand Horace Mann Educators Corp.'s performance drivers and any changes from the previous quarter.

Key Numbers

• 20240331 — Reporting Period End Date (Conformed period of report)
• 20240508 — Filing Date (Filed as of date)
• 1231 — Fiscal Year End (Fiscal year end)
• 6331 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• HORACE MANN EDUCATORS CORP /DE/ (company) — Filer name
• 0000850141 (company) — Central Index Key
• 20240331 (date) — Conformed period of report
• 20240508 (date) — Filed as of date
• FIRE, MARINE & CASUALTY INSURANCE (industry) — Standard Industrial Classification
• DE (jurisdiction) — State of Incorporation
• 10-Q (form) — Form type
• SPRINGFIELD (location) — Business address city

FAQ

Industry Context

Horace Mann Educators Corp. operates within the FIRE, MARINE & CASUALTY INSURANCE sector. This filing is a standard quarterly report for a publicly traded insurance company.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures to the SEC.

What Investors Should Do

1. Analyze the balance sheet and income statement for the quarter ended March 31, 2024.
2. Review any disclosures related to investments, such as fixed maturities and equity securities.
3. Compare the financial data presented in this 10-Q with previous filings to identify trends.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update on the company's financial position and performance compared to the previous fiscal year's filings.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value HMN New York Stock Exchange

Filing Documents

• hmn-20240331.htm (10-Q) — 2995KB
• a33124ex108.htm (EX-10.8) — 6KB
• a33124ex1010a.htm (EX-10.10A) — 8KB
• a33124ex1011b.htm (EX-10.11B) — 8KB
• a33124ex311.htm (EX-31.1) — 11KB
• a33124ex312.htm (EX-31.2) — 11KB
• a33124ex321.htm (EX-32.1) — 7KB
• a33124ex322.htm (EX-32.2) — 7KB
• q12024ex991-glossaryofterms.htm (EX-99.1) — 41KB
• hmn-20240331_g1.jpg (GRAPHIC) — 48KB
• hmn-20240331_g2.jpg (GRAPHIC) — 65KB
• hmn-20240331_g3.jpg (GRAPHIC) — 47KB
• hmn-20240331_g4.jpg (GRAPHIC) — 60KB
• 0001628280-24-021676.txt (&nbsp;) — 15923KB
• hmn-20240331.xsd (EX-101.SCH) — 70KB
• hmn-20240331_cal.xml (EX-101.CAL) — 110KB
• hmn-20240331_def.xml (EX-101.DEF) — 386KB
• hmn-20240331_lab.xml (EX-101.LAB) — 846KB
• hmn-20240331_pre.xml (EX-101.PRE) — 643KB
• hmn-20240331_htm.xml (XML) — 3678KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 1 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 4

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1 - Basis of Presentation and Significant Accounting Policies 5 Note 2 - Investments 6 Note 3 - Fair Value of Financial Instruments 12 Note 4 - Short-Duration Insurance Contracts 17 Note 5 - Long-Duration Insurance Contracts 18 Note 6 - Reinsurance 28 Note 7 - Segment Information 29 Note 8 - Accumulated Other Comprehensive Income (Loss) 30 Note 9 - Supplemental Consolidated Cash and Cash Flow Information 31 Note 10 - Contingencies and Commitments 31

Management's Discussion and Analysis of Financial Condition

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 53

Controls and Procedures

Item 4. Controls and Procedures 54

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 55

Risk Factors

Item 1A. Risk Factors 55

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Other Information

Item 5. Other Information 55

Exhibits

Item 6. Exhibits 55

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

I Consolidated Financial Statements

ITEM 1. I Consolidated Financial Statements HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEETS ($ in millions, except share data) March 31, 2024 December 31, 2023 (Unaudited) Assets Investments Fixed maturity securities, available for sale, at fair value (amortized cost, net 2024, $ 5,785.4 ; 2023, $ 5,652.9 ) $ 5,342.7 $ 5,235.3 Equity securities at fair value, (cost $ 101.7 and $ 86.2 ) 84.7 86.2 Limited partnership interests 1,119.3 1,138.8 Policy loans 140.7 141.4 Short-term and other investments 170.5 228.8 Total investments 6,857.9 6,830.5 Cash 20.4 29.7 Deferred policy acquisition costs 337.3 336.3 Reinsurance balances receivable 449.3 480.5 Deposit asset on reinsurance 2,472.4 2,496.6 Intangible assets 166.7 170.3 Goodwill 54.3 54.3 Other assets 361.1 357.6 Separate Account variable annuity assets 3,516.9 3,294.1 Total assets $ 14,236.3 $ 14,049.9 Liabilities and Shareholders' Equity Policy liabilities Future policy benefit reserves $ 1,702.1 $ 1,761.8 Policyholders' account balances 5,137.6 5,187.0 Unpaid claims and claim expenses 584.4 581.7 Unearned premiums 299.8 300.9 Total policy liabilities 7,723.9 7,831.4 Other policyholder funds 941.1 916.0 Other liabilities 296.8 287.1 Long-term debt 546.2 546.0 Separate Account variable annuity liabilities 3,516.9 3,294.1 Total liabilities 13,024.9 12,874.6 Preferred stock, $ 0.001 par value, authorized 1,000,000 shares; none issued — — Common stock, $ 0.001 par value, authorized 75,000,000 shares; issued, 2024, 66,876,995 ; 2023, 66,747,821 0.1 0.1 Additional paid-in capital 513.1 510.9 Retained earnings 1,514.4 1,502.2 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities ( 348.0 ) ( 328.3 ) Net reserve remeasurements attributable to discount rates 63.3 21.9 Net funded status of benefit plans ( 7.6 ) ( 7.6 ) Treasury stock, at cost, 2024, 25,911,087 shares; 2023, 25,911,087 sh

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1 - Basis of Presentation and Significant Accounting Policies

Business

Business Horace Mann Educators Corporation is a holding company for insurance subsidiaries that market and underwrite personal lines of property and casualty insurance products (primarily personal lines of auto and property insurance), life insurance products, retirement products (primarily tax-qualified fixed and variable annuities), worksite direct insurance products (primarily cancer, heart, hospital, supplemental disability and accident coverages), and employer-sponsored group benefit products (primarily short-term and long-term group disability, and group term life coverages), primarily to K-12 teachers, administrators and other employees of public schools and their families (collectively, HMEC, the Company or Horace Mann). The Company conducts and manages its business in four reporting segments: (1) Property & Casualty, (2) Life & Retirement, (3) Supplemental & Group Benefits and (4) Corporate & Other. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in conformity with GAAP, but are not required for interim reporting purposes, have been omitted. These Consolidated Financial Statements and Notes thereto should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Part II - Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. The accompanying Consolidated Financial Statements and Notes thereto are unaudited and reflect all adjustments (generally consisting only of normal recurring accruals) which are, in the opinion of ma

View Full Filing

View this 10-Q filing on SEC EDGAR