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Horace Mann serves educators with insurance and retirement products. A higher annual core earnings outlook follows stronger underwriting and investment income, while investment gains and losses kept quarterly reported net income nearly flat.
Horace Mann Educators Corporation sells insurance and retirement products primarily to K-12 educators, school employees and their families. Its businesses include auto and property insurance, life insurance and annuities, and supplemental and group benefits. The company trades on the New York Stock Exchange as HMN.
On November 3, 2026, Horace Mann raised its annual core earnings outlook to $5.75 to $5.95 per diluted share. Its August forecast was $4.60 to $4.90. The midpoint rose 23.2%, from $4.75 to $5.85.
Core earnings exclude after-tax investment gains and losses, intangible amortization, changes in market risk benefits and selected other items. Ordinary investment income and insurance claims remain in the measure.
| Measure | Q3 2026 | Q3 2025 |
|---|---|---|
| Total revenue, $ millions | 439.2 | 438.5 |
| Reported net income, $ millions | 58.5 | 58.3 |
| Core earnings, $ millions | 85.1 | 56.6 |
| Reported diluted EPS | $1.41 | $1.40 |
| Core diluted EPS | $2.06 | $1.36 |
The gap between core and reported earnings widened. After-tax investment losses were $20.6 million, compared with a $2.7 million gain a year earlier. Other noncore items reduced earnings by $6 million, versus $1 million. Those movements offset $28.3 million of the $28.5 million increase in core earnings.
Net investment income rose 17%, while premiums, contract charges and fee revenue increased 3%. The property and casualty combined ratio was 83.6%, about four percentage points better than a year earlier. Below 100% generally indicates profitable underwriting before investment income. This ratio includes catastrophe claims and changes in estimates for prior years' claims.
The second quarter produced $48.2 million of core earnings and $41.6 million of reported net income. By September, nine-month core earnings reached $185.8 million, up from $145.5 million. Reported nine-month income increased to $141.3 million from $125.9 million.
September book value was $35.11 per share, versus $35.31 a year earlier. Adjusted book value rose to $42.49 from $39.51. The adjusted measure removes unrealized fixed-maturity investment gains and losses and reserve remeasurements tied to discount rates.
Employee Services, an employee assistance program provider, became wholly owned on October 1 for $115 million in cash, subject to purchase price adjustments. The closing was announced then and falls after the September quarter.
A separate agreement to acquire Reserve National Insurance Company and reinsure MedMutual Life's group life and disability business remained pending in the October closing update, with completion expected in the first quarter of 2027. The original July announcement put the combined net price of both transactions at about $240 million and described funding from excess capital and the existing revolving credit facility.
Before the Employee Services closing, consolidated operating cash flow was $285 million for the six months ended June 30, compared with $272.1 million a year earlier. June consolidated debt was $594.2 million and cash was $46.2 million. These are group figures, separate from cash available at the parent company.
Read our analysis of the forecast upgrade and investment swing for the latest earnings comparison.
Analysis HMN
A 23% increase in Horace Mann's annual core forecast sits alongside nearly flat quarterly reported earnings. Our comparison tracks the investment swing and insurance gains.