Horace Mann Educators Corp Q3 2024 Filing

TL;DR

**HMN Q3 2024: Investment gains/losses and OCI adjustments detailed. Check filing for specifics.**

AI Summary

Horace Mann Educators Corp reported its Q3 2024 results, ending September 30, 2024. The company's filing details its financial performance, including investment gains and losses, and adjustments to other comprehensive income for available-for-sale securities. Specific dollar amounts and dates for these financial metrics are detailed within the full report.

Why It Matters

This filing provides insight into the financial health and investment performance of Horace Mann Educators Corp, a company serving educators.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including investment performance and comprehensive income, which can be complex and subject to market fluctuations.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial results are reported.)

Key Players & Entities

• HORACE MANN EDUCATORS CORP /DE/ (company) — Filer
• 20240930 (date) — Reporting Period End Date
• 20241104 (date) — Filing Date
• SPRINGFIELD (location) — Company Headquarters City
• IL (location) — Company Headquarters State

FAQ

Key Financial Figures

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

Filing Documents

• hmn-20240930.htm (10-Q) — 3842KB
• a93024ex311.htm (EX-31.1) — 11KB
• a93024ex312.htm (EX-31.2) — 11KB
• a93024ex321.htm (EX-32.1) — 7KB
• a93024ex322.htm (EX-32.2) — 7KB
• q32024ex991-glossaryofterms.htm (EX-99.1) — 41KB
• hmn-20240930_g1.jpg (GRAPHIC) — 51KB
• hmn-20240930_g2.jpg (GRAPHIC) — 68KB
• hmn-20240930_g3.jpg (GRAPHIC) — 48KB
• hmn-20240930_g4.jpg (GRAPHIC) — 61KB
• 0001628280-24-045020.txt ( ) — 19108KB
• hmn-20240930.xsd (EX-101.SCH) — 70KB
• hmn-20240930_cal.xml (EX-101.CAL) — 112KB
• hmn-20240930_def.xml (EX-101.DEF) — 392KB
• hmn-20240930_lab.xml (EX-101.LAB) — 867KB
• hmn-20240930_pre.xml (EX-101.PRE) — 659KB
• hmn-20240930_htm.xml (XML) — 4840KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Page

Consolidated Financial Statements

Item 1. Consolidated Financial Statements Consolidated Balance Sheets as of September 30, 2024 (Unaudited) and December 31, 2023 1 Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 2 Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended Septem ber 30, 2024 and 2023 (Unaudited) 3 Consolidated Statements of Cash Flows for the Three and Nine Months Ended September 30, 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 18 Note 5 - Long-Duration Insurance Contracts 19 Note 6 - Reinsurance 31 Note 7 - Segment Information 32 Note 8 - Accumulated Other Comprehensive Income (Loss) 33 Note 9 - Supplemental Consolidated Cash and Cash Flow Information 34 Note 10 - Contingencies and Commitments 34

Management's Discussion and Analysis of Financial Condition

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 56

Controls and Procedures

Item 4. Controls and Procedures 57

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58

Other Information

Item 5. Other Information 58

Exhibits

Item 6. Exhibits 59

: 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) September 30, 2024 December 31, 2023 (Unaudited) Assets Investments Fixed maturity securities, available for sale, at fair value (amortized cost, net 2024, $ 5,875.0 ; 2023, $ 5,652.9 ) $ 5,573.2 $ 5,235.3 Equity securities at fair value, (cost $ 102.9 and $ 86.2 ) 88.9 86.2 Limited partnership interests 1,087.2 1,138.8 Policy loans 141.9 141.4 Short-term and other investments 193.6 228.8 Total investments 7,084.8 6,830.5 Cash 39.8 29.7 Deferred policy acquisition costs 345.4 336.3 Reinsurance balances receivable 438.6 480.5 Deposit asset on reinsurance 2,461.1 2,496.6 Intangible assets 159.4 170.3 Goodwill 54.3 54.3 Other assets 397.4 357.6 Separate Account variable annuity assets 3,732.8 3,294.1 Total assets $ 14,713.6 $ 14,049.9 Liabilities and Shareholders' Equity Policy liabilities Future policy benefit reserves $ 1,745.5 $ 1,761.8 Policyholders' account balances 5,128.6 5,187.0 Unpaid claims and claim expenses 597.0 581.7 Unearned premiums 345.4 300.9 Total policy liabilities 7,816.5 7,831.4 Other policyholder funds 966.1 916.0 Other liabilities 364.5 287.1 Long-term debt 546.7 546.0 Separate Account variable annuity liabilities 3,732.8 3,294.1 Total liabilities 13,426.6 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, 66,894,309 ; 2023, 66,747,821 0.1 0.1 Additional paid-in capital 518.3 510.9 Retained earnings 1,524.1 1,502.2 Accumulated other comprehensive income (loss), net of tax: Net unrealized investment losses on fixed maturity securities ( 237.2 ) ( 328.3 ) Net reserve remeasurements attributable to discount rates 21.8 21.9 Net funded status of benefit plans ( 7.6 ) ( 7.6 ) Treasury stock, at cost, 2024, 26,167,246 shares; 2023, 25,911,08

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 and nine months ended September 30, 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

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View this 10-Q filing on SEC EDGAR