SPRINGFIELD, Ill., April 22, 2015 /PRNewswire/ -- Horace Mann
Educators Corporation (NYSE: HMN) today reported financial results
for the three months ended March 31,
2015:
Horace Mann Financial
Highlights
|
|
Three months
ended
March 31,
|
($ in millions,
except per share amounts)
|
2015
|
2014
|
Change
|
Total
revenues
|
$ 270.1
|
$ 261.2
|
3.4%
|
Net income
|
34.3
|
28.4
|
20.8%
|
Net income per
diluted share
|
0.81
|
0.67
|
20.9%
|
Operating
income*
|
30.3
|
27.3
|
11.0%
|
Operating income per
diluted share*
|
0.72
|
0.65
|
10.8%
|
Book value per
share
|
34.28
|
29.47
|
16.3%
|
Book value per share
excluding the fair value
adjustment for investments*
|
26.13
|
24.27
|
7.7%
|
Property and Casualty
segment net income
|
17.6
|
14.0
|
25.7%
|
Property and Casualty combined ratio
|
90.4%
|
93.7%
|
-3.3 pts
|
Property and Casualty underlying combined ratio*
|
86.0%
|
92.1%
|
-6.1 pts
|
Annuity segment net
income
|
$ 12.5
|
$ 12.3
|
1.6%
|
Life segment net
income
|
3.4
|
3.9
|
-12.8%
|
|
* These
measures are not based on accounting principles generally accepted
in the United States ("non-GAAP"). They are reconciled to the
most directly comparable GAAP measures in the supplemental
numerical pages of this document. An explanation of these
measures is contained in the Glossary of Selected Terms included as
an exhibit in the company's reports filed with the SEC.
|
![Horace Mann Insurance Horace Mann Insurance](http://photos.prnewswire.com/prnvar/20141010/151463LOGO)
"Led by improvement in property and casualty segment earnings,
Horace Mann produced a strong start
to 2015. First quarter operating income was $0.72 per diluted share, reflecting solid
performance across all three segments of our multiline insurance
platform. Sales momentum continued in the first quarter, with
growth in all three of our segments," said Horace Mann's President and CEO Marita Zuraitis. "The first quarter
property and casualty combined ratio was 90.4%, reflecting
continued improvement in underlying results for both auto and
property, partially offset by an increase in catastrophe
losses. Net income in the annuity segment was slightly higher
than the prior year, despite the pressures of the interest rate
environment. For the life segment, net income decreased
primarily due to a higher level of mortality losses. Annuity
sales continued to be strong, up nearly 30% for the quarter, led by
sales of the fixed indexed annuity product. Sales of our life
products with recurring premiums increased 14% for the
quarter. And, auto sales increased 7% for the quarter."
Property and Casualty Segment
For the first quarter of 2015, property and casualty net income
of $17.6 million increased 26%, or
$3.6 million, compared to the prior
year. The current quarter total property and casualty
combined ratio of 90.4% improved 3.3 points compared to a year ago,
including a lower underlying loss ratio due to improvements in both
frequency and severity. Catastrophe losses were higher than
the prior year; favorable prior years' reserve development was
equal to the prior year amount. On an underlying basis, the
first quarter auto combined ratio of 96.1% improved 4.2 points
compared to a year earlier. For property, the underlying
combined ratio was 66.3% for the current quarter, 10.3 points lower
than the first quarter of 2014.
Compared to the first quarter of 2014, the property and casualty
expense ratio decreased 2.2 points, primarily due to a reduction in
incentive compensation accruals. The majority of the cost
reduction benefitted the property and casualty segment, increasing
that segment's net income by approximately $2 million and decreasing the combined ratio by
approximately 2 percentage points.
Total property and casualty written premiums of $140.5 million increased 2% compared to the three
months ended March 31, 2014.
The growth was driven by increases in average premium per policy
for both auto and property accompanied by reductions in catastrophe
reinsurance costs.
Total property and casualty sales increased 6% compared to the
first quarter of 2014. Auto sales increased 7% compared to
the prior year period, while property sales were equal to the prior
year. Policy retention continues to be strong with auto and
property policy retention rates for the current period at 85% and
88%, respectively.
Annuity Segment
Annuity segment net income increased $0.2
million to $12.5 million for
the current quarter, compared to the first quarter of 2014.
In both the current year and prior year quarters, the impact of
unlocking deferred policy acquisition costs was immaterial.
The first quarter annualized net interest spread of 194 basis
points on fixed annuity assets reflected continued solid investment
portfolio performance and disciplined crediting rate
management. Compared to the first quarter of 2014, the net
interest margin decreased 3%. Total annuity assets under
management of $5.8 billion increased
8% compared to March 31, 2014, and
total cash value persistency remained strong at approximately
94%.
For the three months ended March 31,
2015, annuity deposits of $142.0
million increased 42%, or $41.7
million, including an increase of $22.0 million attributable to changes in the
company's employee retirement savings plans. Excluding that
item, the remaining $19.7 million
increase, or 20%, was primarily due to growth in the amount of
single premium and rollover deposits received in the current
period, with recurring deposit receipts also exceeding the prior
year amount.
In the first quarter, Horace
Mann's total annuity sales increased 29%, led by sales of
the company's fixed indexed annuity product. Annuity sales by
the company's agency force increased 35% compared to the three
months ended March 31, 2014, while
annuity sales from the independent agent distribution channel,
which currently produces about 10% of total annuity sales,
decreased 3% compared to the same period.
Life Segment
Life segment net income of $3.4
million for the three months decreased $0.5 million compared to the same period in 2014,
primarily attributable to a modest increase in mortality losses in
the current year and a slight decrease in investment income,
compared to the prior year period.
For the first quarter of 2015, life segment insurance premiums
and contract deposits of $23.2
million increased 2% compared to the same period in
2014. Life persistency of 96% was comparable to 12 months
earlier. For the current quarter, life sales of $1.9 million increased 12%, or $0.2 million, compared to the first three months
of 2014.
Investment Results
Total net investment income was comparable to the three months
ended March 31, 2014, reflecting
higher asset balances in the annuity segment, as well as continued
strong performance in the fixed maturity and alternative investment
portfolios despite the interest rate environment. Pretax net
realized investment gains were $6.1
million in the current quarter.
Horace Mann's net unrealized
investment gains on fixed maturity and equity securities were
$591.7 million at March 31, 2015, compared to $528.6 million of net unrealized gains at
December 31, 2014. Net
unrealized gains were $376.2 million
at March 31, 2014.
Capital Management
During the first quarter of 2015, the company repurchased 23,500
shares of its common stock at an aggregate cost of $0.7 million, or an average price per share of
$30.44, under its $50 million share repurchase program.
Webcast Conference Call
Horace Mann's senior management
will discuss the company's first quarter financial results with
investors and analysts on April 23,
2015 at 10:00 a.m. Eastern
Time. The conference call will be webcast live on the
Internet at investors.horacemann.com and archived later in the day
for replay.
Horace Mann -- the largest
national multiline insurance company focusing on educators'
financial needs -- provides auto and homeowners insurance,
retirement annuities, life insurance and other financial
solutions. Founded by Educators for
Educators® in 1945, the company is
headquartered in Springfield,
Ill. For more information, visit www.horacemann.com.
Statements included in this news release that are not historical
in nature are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to certain
risks and uncertainties. Horace Mann is not under any
obligation to (and expressly disclaims any such obligation to)
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. Please
refer to the company's Annual Report on Form 10-K for the year
ended December 31, 2014 and the
company's past and future filings and reports filed with the
Securities and Exchange Commission for information concerning the
important factors that could cause actual results to differ
materially from those in forward-looking statements. The
information contained in this press release includes financial
measures which are based on methodologies other than United States generally accepted accounting
principles ("GAAP"). Reconciliations of non-GAAP measures to
the closest GAAP measures are contained in the supplemental
numerical pages of this release and additional descriptions of the
non-GAAP measures are contained in the Glossary of Selected Terms
included as an exhibit to the company's SEC filings.
HORACE MANN
EDUCATORS CORPORATION
|
Financial Highlights
(Unaudited)
|
(Dollars in Millions,
Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
EARNINGS
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 34.3
|
|
$ 28.4
|
|
20.8%
|
|
Net realized
investment gains, after tax
|
|
4.0
|
|
1.1
|
|
N.M.
|
Operating income
(A)
|
|
30.3
|
|
27.3
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
Per diluted
share:
|
|
|
|
|
|
|
|
Net income
|
|
$ 0.81
|
|
$ 0.67
|
|
20.9%
|
|
|
Net realized
investment gains, after tax
|
|
$ 0.09
|
|
$ 0.02
|
|
-
|
|
Operating income
(A)
|
|
$ 0.72
|
|
$ 0.65
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
|
and equivalent shares
(in millions) - Diluted
|
|
42.3
|
|
42.3
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income return on
equity (B)
|
|
8.4%
|
|
9.8%
|
|
N.M.
|
Operating income
return on equity excluding the fair value
|
|
|
|
|
|
|
|
adjustment for
investments (A) (C)
|
|
9.8%
|
|
10.8%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
(D):
|
|
|
|
|
|
|
|
Book value
|
|
$ 34.28
|
|
$ 29.47
|
|
16.3%
|
|
|
Effect of the fair
value adjustment for investments (E)
|
|
$ 8.15
|
|
$ 5.20
|
|
56.7%
|
|
Book value excluding
the fair value adjustment for investments (A)
|
|
$ 26.13
|
|
$ 24.27
|
|
7.7%
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
|
$ 0.25
|
|
$ 0.23
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
|
Ending number of
shares outstanding (in millions) (D)
|
|
41.1
|
|
40.6
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 10,074.4
|
|
$ 9,083.5
|
|
10.9%
|
Short-term
debt
|
|
38.0
|
|
38.0
|
|
-
|
Long-term debt,
current and noncurrent
|
|
200.0
|
|
199.9
|
|
0.1%
|
Total shareholders'
equity
|
|
1,409.8
|
|
1,197.8
|
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Horace Mann
Exclusive Agencies (F) & Employee Agents (G)
|
|
729
|
|
722
|
|
1.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
meaningful.
|
|
|
|
|
|
|
(A)
|
These measures are
not based on accounting principles generally accepted in the United
States ("non-GAAP"). An explanation of these measures is contained in the Glossary of Selected
Terms included as an exhibit in the Company's reports filed with
the SEC.
|
(B)
|
Based on trailing
12-month net income and average quarter-end shareholders'
equity.
|
(C)
|
Based on trailing
12-month operating income and average quarter-end shareholders'
equity which has been adjusted to exclude the fair value adjustment for investments, net of the related
impact on deferred policy acquisition costs and the applicable
deferred taxes.
|
(D)
|
Ending shares
outstanding were 41,122,248 at March 31, 2015 and 40,647,979 at
March 31, 2014.
|
(E)
|
Net of the related
impact on deferred policy acquisition costs and the applicable
deferred taxes.
|
(F)
|
Local Horace Mann
agencies created and owned by independent contractors who have
signed Exclusive Agent agreements with the Company ("Exclusive Agents"). Those agreements state
that only the Company's products and limited additional third-party
vendor products authorized by the Company
will be marketed by the agencies. An independent contractor may
sign multiple Exclusive Agent agreements
with the Company and manage more than one Exclusive
Agency.
|
(G)
|
Agents who have
employee status with the Company and by contract market only the
Company's products and limited additional third-party vendor products authorized by the
Company.
|
|
|
- 1 -
|
|
HORACE MANN
EDUCATORS CORPORATION
|
Statements of
Operations and Supplemental Consolidated Data
(Unaudited)
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance premiums
and contract charges earned
|
|
$ 179.7
|
|
$ 175.4
|
|
2.5%
|
Net investment
income
|
|
83.3
|
|
83.0
|
|
0.4%
|
Net realized
investment gains
|
|
6.1
|
|
1.7
|
|
N.M.
|
Other
income
|
|
1.0
|
|
1.1
|
|
-9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
270.1
|
|
261.2
|
|
3.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits, claims and
settlement expenses
|
|
114.0
|
|
112.0
|
|
1.8%
|
Interest
credited
|
|
44.5
|
|
43.1
|
|
3.2%
|
Policy acquisition
expenses amortized
|
|
23.7
|
|
23.0
|
|
3.0%
|
Operating
expenses
|
|
35.9
|
|
39.9
|
|
-10.0%
|
Interest
expense
|
|
3.6
|
|
3.5
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits,
losses and expenses
|
|
221.7
|
|
221.5
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
48.4
|
|
39.7
|
|
21.9%
|
|
Income tax
expense
|
|
14.1
|
|
11.3
|
|
24.8%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 34.3
|
|
$ 28.4
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREMIUMS WRITTEN
AND CONTRACT DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
|
$ 140.5
|
|
$ 137.2
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
Annuity
deposits
|
|
142.0
|
|
100.3
|
|
41.6%
|
|
|
|
|
|
|
|
|
|
|
Life
|
|
|
|
23.2
|
|
22.8
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 305.7
|
|
$ 260.3
|
|
17.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT NET INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
|
$ 17.6
|
|
$ 14.0
|
|
25.7%
|
|
|
|
|
|
|
|
|
|
|
Annuity
|
|
|
12.5
|
|
12.3
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
Life
|
|
|
|
3.4
|
|
3.9
|
|
-12.8%
|
|
|
|
|
|
|
|
|
|
|
Corporate and other
(A)
|
|
0.8
|
|
(1.8)
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 34.3
|
|
$ 28.4
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
meaningful.
|
|
|
|
|
|
|
(A)
|
The Corporate and
Other segment includes interest expense on debt and the impact of
realized investment gains and losses and
other corporate level items. The Company does not allocate the
impact of corporate level transactions to the insurance
segments consistent with how management
evaluates the results of those segments. See detail for this
segment on page 4.
|
|
|
- 2 -
|
|
HORACE MANN
EDUCATORS CORPORATION
|
Supplemental Business
Segment Overview (Unaudited)
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
PROPERTY &
CASUALTY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
written
|
|
$ 140.5
|
|
$ 137.2
|
|
2.4%
|
Premiums
earned
|
|
146.7
|
|
143.9
|
|
1.9%
|
Net investment
income
|
|
9.4
|
|
9.3
|
|
1.1%
|
Other
income
|
|
0.2
|
|
0.2
|
|
-
|
Losses and loss
adjustment expenses (LAE)
|
|
95.2
|
|
95.0
|
|
0.2%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
|
37.4
|
|
39.8
|
|
-6.0%
|
Income before
tax
|
|
23.7
|
|
18.6
|
|
27.4%
|
Net income
|
|
17.6
|
|
14.0
|
|
25.7%
|
|
|
|
|
|
|
|
|
|
|
Net investment
income, after tax
|
|
7.9
|
|
7.8
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
Catastrophe costs
(A)
|
|
|
|
|
|
|
|
After tax
|
|
6.8
|
|
4.1
|
|
65.9%
|
|
Before tax
|
|
10.5
|
|
6.3
|
|
66.7%
|
|
|
|
|
|
|
|
|
|
|
Prior years' reserves
favorable (adverse)
|
|
|
|
|
|
|
|
development, before
tax
|
|
|
|
|
|
|
|
|
Automobile
|
|
2.2
|
|
4.0
|
|
-45.0%
|
|
|
Property
|
|
1.8
|
|
-
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
4.0
|
|
4.0
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating
statistics:
|
|
|
|
|
|
|
|
Loss and loss
adjustment expense ratio
|
|
64.9%
|
|
66.0%
|
|
N.M.
|
|
Expense
ratio
|
|
25.5%
|
|
27.7%
|
|
N.M.
|
|
Combined
ratio
|
|
90.4%
|
|
93.7%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect on the
combined ratio of:
|
|
|
|
|
|
|
|
|
|
Catastrophe costs
(A)
|
|
7.1%
|
|
4.4%
|
|
N.M.
|
|
|
|
Prior years' reserve
development
|
|
-2.7%
|
|
-2.8%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
Combined ratio
excluding the effects of catastrophe
|
|
|
|
|
|
|
|
|
costs and prior
years' reserve development
|
|
|
|
|
|
|
|
|
("underlying combined
ratio") (B)
|
|
86.0%
|
|
92.1%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
Policies in force
(voluntary) (in thousands)
|
|
708
|
|
714
|
|
-0.8%
|
|
Automobile
|
|
480
|
|
480
|
|
-
|
|
Property
|
|
228
|
|
234
|
|
-2.6%
|
|
|
|
|
|
|
|
|
|
|
Policy renewal rate
(voluntary) - 12 months
|
|
|
|
|
|
|
|
Automobile
|
|
84.9%
|
|
84.6%
|
|
N.M.
|
|
Property
|
|
87.7%
|
|
88.9%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
meaningful.
|
|
|
|
|
|
|
(A)
|
Includes allocated
loss adjustment expenses and, when applicable, catastrophe
reinsurance reinstatement premiums.
|
|
For the periods
presented, there were no reinsurance reinstatement
premiums.
|
(B)
|
This measure is not
based on accounting principles generally accepted in the United
States ("non-GAAP").
|
|
See footnote (A) on
page 1 of these supplemental numerical pages.
|
|
|
- 3 -
|
|
HORACE MANN
EDUCATORS CORPORATION
|
Supplemental Business
Segment Overview (Unaudited)
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
ANNUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
deposits
|
|
$ 142.0
|
|
$ 100.3
|
|
41.6%
|
|
Variable
|
|
47.1
|
|
32.5
|
|
44.9%
|
|
Fixed
|
|
94.9
|
|
67.8
|
|
40.0%
|
Contract charges
earned
|
|
6.2
|
|
5.9
|
|
5.1%
|
Net investment
income
|
|
56.4
|
|
55.8
|
|
1.1%
|
Interest
credited
|
|
33.5
|
|
32.3
|
|
3.7%
|
|
Net interest margin
(without realized investment gains/losses)
|
|
22.9
|
|
23.5
|
|
-2.6%
|
Other
income
|
|
0.6
|
|
0.6
|
|
-
|
Mortality loss and
other reserve changes
|
|
(0.3)
|
|
(0.4)
|
|
-25.0%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
|
11.1
|
|
11.8
|
|
-5.9%
|
Income before
tax
|
|
18.3
|
|
17.8
|
|
2.8%
|
Net income
|
|
12.5
|
|
12.3
|
|
1.6%
|
|
|
|
|
|
|
|
|
|
|
Pretax income
increase (decrease) due to
|
|
|
|
|
|
|
|
evaluation
of:
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
$
0.1
|
|
$ (0.1)
|
|
N.M.
|
|
|
Guaranteed minimum
death benefit reserve
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Annuity contracts in
force (in thousands)
|
|
204
|
|
196
|
|
4.1%
|
Accumulated account
value on deposit / Assets under management
|
|
$ 5,829.1
|
|
$ 5,412.1
|
|
7.7%
|
|
Variable
|
|
1,865.2
|
|
1,745.0
|
|
6.9%
|
|
Fixed
|
|
3,963.9
|
|
3,667.1
|
|
8.1%
|
Annuity accumulated
value retention - 12 months
|
|
|
|
|
|
|
|
Variable
accumulations
|
|
93.9%
|
|
94.1%
|
|
N.M.
|
|
Fixed
accumulations
|
|
94.5%
|
|
95.1%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and contract
deposits
|
|
$ 23.2
|
|
$ 22.8
|
|
1.8%
|
Premiums and contract
charges earned
|
|
26.8
|
|
25.6
|
|
4.7%
|
Net investment
income
|
|
17.7
|
|
18.1
|
|
-2.2%
|
Other
income
|
|
0.2
|
|
0.3
|
|
-33.3%
|
Death
benefits/mortality cost/change in reserves
|
|
18.5
|
|
16.6
|
|
11.4%
|
Interest
credited
|
|
11.0
|
|
10.8
|
|
1.9%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
|
9.9
|
|
10.6
|
|
-6.6%
|
Income before
tax
|
|
5.3
|
|
6.0
|
|
-11.7%
|
Net income
|
|
3.4
|
|
3.9
|
|
-12.8%
|
|
|
|
|
|
|
|
|
|
|
Pretax income
increase (decrease) due to
|
|
|
|
|
|
|
|
evaluation
of:
|
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
|
$
0.1
|
|
$ -
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
Life policies in
force (in thousands)
|
|
201
|
|
200
|
|
0.5%
|
Life insurance in
force
|
|
$ 15,983
|
|
$ 15,241
|
|
4.9%
|
Lapse ratio - 12
months
|
|
|
|
|
|
|
|
(Ordinary life
insurance)
|
|
4.0%
|
|
4.2%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE AND
OTHER (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of income
(loss) before tax:
|
|
|
|
|
|
|
|
Net realized
investment gains
|
|
$
6.1
|
|
$ 1.7
|
|
N.M.
|
|
Interest
expense
|
|
(3.6)
|
|
(3.5)
|
|
2.9%
|
|
Other operating
expenses, net investment income
|
|
|
|
|
|
|
|
|
and other
income
|
|
(1.4)
|
|
(0.9)
|
|
55.6%
|
Income (loss) before
tax
|
|
1.1
|
|
(2.7)
|
|
N.M.
|
Net income
(loss)
|
|
0.8
|
|
(1.8)
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
meaningful.
|
|
|
|
|
|
|
(A)
|
The Corporate and
Other segment includes interest expense on debt and the impact of
realized investment gains and losses and
other corporate level items. The Company does not allocate the
impact of corporate level transactions to the insurance
segments consistent with how management
evaluates the results of those segments.
|
|
|
- 4 -
|
|
HORACE MANN
EDUCATORS CORPORATION
|
Supplemental Business
Segment Overview (Unaudited)
|
(Dollars in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuity and
Life
|
|
|
|
|
|
|
|
Fixed maturities, at
fair value (amortized
|
|
|
|
|
|
|
|
|
cost 2015, $5,688.1;
2014, $5,260.1)
|
|
$ 6,221.1
|
|
$ 5,599.1
|
|
11.1%
|
|
Equity securities, at
fair value
|
|
|
|
|
|
|
|
|
(cost 2015,
$37.5; 2014, $35.5)
|
|
35.5
|
|
33.5
|
|
6.0%
|
|
Short-term
investments
|
|
140.6
|
|
22.7
|
|
N.M.
|
|
Policy
loans
|
|
145.6
|
|
140.7
|
|
3.5%
|
|
Other
investments
|
|
82.7
|
|
61.6
|
|
34.3%
|
|
|
|
Total Annuity and
Life investments
|
|
6,625.5
|
|
5,857.6
|
|
13.1%
|
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
|
|
|
|
|
|
|
Fixed maturities, at
fair value (amortized
|
|
|
|
|
|
|
|
|
cost 2015,
$791.2; 2014, $770.9)
|
|
844.7
|
|
799.3
|
|
5.7%
|
|
Equity securities, at
fair value
|
|
|
|
|
|
|
|
|
(cost 2015,
$62.4; 2014, $49.9)
|
|
69.6
|
|
60.7
|
|
14.7%
|
|
Short-term
investments
|
|
2.0
|
|
16.6
|
|
-88.0%
|
|
Other
investments
|
|
41.0
|
|
30.9
|
|
32.7%
|
|
|
|
Total Property &
Casualty investments
|
|
957.3
|
|
907.5
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
Corporate
investments
|
|
38.4
|
|
36.2
|
|
6.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investments
|
|
7,621.2
|
|
6,801.3
|
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
|
|
|
|
|
|
Before tax
|
|
$ 83.3
|
|
$ 83.0
|
|
0.4%
|
|
After tax
|
|
55.9
|
|
55.7
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment gains
|
|
|
|
|
|
|
|
Before tax
|
|
$
6.1
|
|
$ 1.7
|
|
N.M.
|
|
After tax
|
|
4.0
|
|
1.1
|
|
N.M.
|
|
|
Per share,
diluted
|
|
$ 0.09
|
|
$ 0.02
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N.M. - Not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 5 -
|
Logo - http://photos.prnewswire.com/prnh/20141010/151463LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/horace-mann-reports-first-quarter-2015-operating-eps-of-072-300070456.html
SOURCE Horace Mann Educators Corporation