Horace Mann Educators Corporation Q1 FY2026 earnings call

Marita Zuraitis mentioned yesterday Horace Mann Educators Corporation reported record first quarter core earnings per share of $1.28, 20% above the prior year. Insurance and fee-based revenue increased 6% year over year. Core shareholder return on equity for the trailing twelve months was 12.7%. Maintaining 2026 core EPS guidance of $4.20 to $4.50. Discussing segment highlights like strong P&C profitability, growth in Life and Retirement, and robust growth in Supplemental and Group Benefits. Also, talking about expanding relationships across the educator market, brand awareness increase, and shareholder return initiatives.

Property and Casualty: Core earnings were $39 million, up 46% year over year. Reported combined ratio of 83.3 points improved five points year over year, reflecting lower catastrophe costs and improved underlying results. Net written premiums increased 5% to $194 million, primarily reflecting higher average premium. Property premiums were up 14%, while auto premiums were essentially flat. Life and Retirement: Core earnings increased 16% to $9 million, primarily driven by favorable mortality. Life sales were up 17%, with persistency remaining strong near 96%. Supplemental and Group Benefits: The segment contributed $12.6 million of core earnings, and net written premiums rose to nearly $71 million. Individual supplemental delivered another strong quarter with sales up 11%. Group Benefits sales more than tripled year over year to $11 million.

Maintaining our 2026 core EPS guidance of $4.20 to $4.50. Remain confident in achieving our three-year strategic goal of a 10% compound annual growth rate in core earnings per share and a sustainable 12% to 13% shareholder return on equity.

Q: Hey, good morning. My first one is on the group business. I wonder if you could unpack further what is driving the strong sales growth, and I am curious over time how significant of a contributor you think the new paid family medical leave offering can be within that business.

A: Yes, thanks for the question. When we think about our supplemental growth—both individual supplemental, quite frankly, and group—it really has been a very strategic product enhancement strategy...

Q: Good morning. Could you talk a little bit more about how much of the good combined ratio in P&C comes from favorable claims experience and some of the variability there in the quarter, and how much is just more diligent underwriting that is going to stick around a little bit longer, especially given some others seem to be leaning aggressively in pricing?

A: Good morning, Wilma Jackson Burdis. Thanks for the question. The combined ratio improved 5.4 points this quarter and was 83.3%. Both auto and property contributed to that improvement...

Q: Marita, I might ask you to follow on part of your last answer, specifically around auto and the environment we are in. Can you talk about how you are using the agency to help manage the environment? We can see the PIF numbers in the supplement and understand those are just on Horace Mann Educators Corporation paper. Has the agency been more active? Have you been placing more business with partners as the environment changes? Can you help us understand how you use it as a tool?

A: Yes, thanks for that, Matt. The Horace Mann Educators Corporation General Agency was started with the idea that if we had an educator customer or someone who served the community and they needed coverage that we either did not have an appetite for—think nonstandard—or a higher-valued home...