SPRINGFIELD, Ill., April 24, 2014 /PRNewswire/ -- Horace Mann
Educators Corporation (NYSE: HMN) today reported financial results
for the three months ended March 31,
2014:
Horace Mann Financial
Highlights
|
|
Three months
ended
March 31,
|
($ in millions,
except per share amounts)
|
2014
|
2013
|
Change
|
Total
revenues
|
$261.2
|
$254.6
|
2.6%
|
Net income
|
28.4
|
27.0
|
5.2%
|
Net income per
diluted share
|
0.67
|
0.66
|
1.5%
|
Operating
income*
|
27.3
|
22.6
|
20.8%
|
Operating income per
diluted share*
|
0.65
|
0.55
|
18.2%
|
Book value per
share
|
29.47
|
31.81
|
-7.4%
|
Book value per share
excluding
the fair value
adjustment for investments*
|
24.27
|
22.38
|
8.4%
|
Property and Casualty
segment net income
|
14.0
|
10.2
|
37.3%
|
Property and Casualty combined ratio
|
93.7%
|
97.2%
|
-3.5 pts
|
Property and Casualty underlying combined ratio*
|
92.1%
|
95.4%
|
-3.3 pts
|
Annuity segment net
income
|
$
12.3
|
$
11.1
|
10.8%
|
Life segment net
income
|
3.9
|
4.3
|
-9.3%
|
|
* 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's first quarter
operating income was $0.65 per
diluted share, led by strong property and casualty results, as well
as solid earnings in our annuity and life segments," said
Horace Mann's President and CEO
Marita Zuraitis. "Compared to
a year ago, the property and casualty combined ratio improved 3.5
points to 93.7%, reflecting improvement in the underlying
underwriting margin, including winter weather-related losses.
In our annuity segment, assets under management increased 10% over
the 12 months, and the interest spread was better than
expected. For the life segment, net income decreased
primarily due to higher mortality losses. Top line metrics
across all three business segments were strong. Property and
casualty written premiums were up 4%, annuity sales increased 19%
and life sales continued to be strong."
Property and Casualty Segment
The property and casualty segment recorded net income of
$14.0 million for the current quarter
compared to $10.2 million for the
same period in 2013. The total property and casualty combined
ratio of 93.7% was 3.5 percentage points lower than the first
quarter of 2013. The underlying property and casualty
combined ratio of 92.1% decreased 3.3 percentage points compared to
the prior year quarter, primarily reflecting improvement in the
current accident year auto loss ratio. The auto underlying
combined ratio of 100.1% improved 4.7 points compared to last
year's first quarter, driven by a 5.1 point improvement in the
underlying loss ratio. Pretax catastrophe losses in the
current quarter of $6.3 million, or
4.4 points, increased $0.6 million,
or 0.2 points, compared to a year ago and the property underlying
combined ratio was consistent with last year's first quarter.
Favorable prior years' reserve development of $4.0 million, or 2.8 points, was recorded in the
first quarter, compared to $3.3
million, or 2.4 points, of favorable development recorded in
the prior year.
Total property and casualty written premiums of $137.2 million increased 4% compared to the three
months ended March 31, 2013.
The growth was driven by increases in average premium per policy
for both auto and property accompanied by reductions in catastrophe
reinsurance costs.
Horace Mann's property and
casualty sales decreased slightly compared to the first quarter of
2013, primarily due to a decline in property new business.
Policy retention continues to be strong with the auto policy
retention rate for the current period at 85% and the property
policy retention rate at 89%, both comparable to a year ago.
Annuity Segment
Annuity segment net income of $12.3
million for the three months ended March 31, 2014 increased $1.2 million compared to the same period in
2013. The first quarter annualized net interest spread of 214
basis points on fixed annuity assets reflected continued solid
investment portfolio performance and increased security prepayment
activity. The favorable net interest spread, accompanied by
the increase in fixed annuity assets under management, resulted in
the net interest margin increasing 14% compared to the first
quarter of 2013. The deferred policy acquisition costs
unlocking in the current quarter had a minimal impact on annuity
segment net income compared to a $1.6
million pretax positive impact in the prior year.
Total annuity assets under management of $5.4 billion increased 10% compared to
March 31, 2013, and total cash value
persistency remained strong at approximately 95%.
For the three months ended March 31,
2014, annuity deposits of $100.3
million increased 11% compared to the prior year period,
primarily due to an increase in the amount of single premium and
rollover deposits received in the current period. For the
quarter, recurring deposit receipts also exceeded the prior year
amount.
Annuity sales by the company's agency force increased 21% and
annuity sales from the supplemental independent agent distribution
channel increased 7%, compared to the first quarter of 2013.
As a result, Horace Mann's total
annuity sales for the current quarter increased 19%, reflecting the
increase in single premium and rollover deposits noted above.
Life Segment
First quarter life segment net income of $3.9 million decreased $0.4 million compared to the same period in
2013. In the current period, mortality losses were higher
than anticipated, partially offset by an increase in investment
income.
For the first quarter of 2014, life segment insurance premiums
and contract deposits of $22.8
million were comparable to a year earlier. Life
persistency of 96% was also comparable to 12 months earlier.
Horace Mann life sales increased modestly compared to the
first quarter of the prior year.
Investment Results
Total net investment income of $83.0
million increased 7% compared to the three months ended
March 31, 2013, reflecting continued
strong performance in the fixed maturity and alternative investment
portfolios accompanied by the effects of increased security
prepayment activity. Pretax net realized investment gains
were $1.7 million in the current
quarter.
Horace Mann's net unrealized
investment gains on fixed maturity and equity securities of
$376.2 million at March 31, 2014 increased 62% compared to the
$232.5 million net unrealized gain at
December 31, 2013, primarily due to
the decline in interest rates during the current quarter. Net
unrealized gains were $639.4 million
at March 31, 2013.
Capital Management
During the first quarter of 2014, the company repurchased
136,976 shares of its common stock at an aggregate cost of
$3.9 million, or an average price per
share of $28.21, under its
$50 million share repurchase
program. As of March 31, 2014,
the program had a remaining authorization of $24.5 million. There were 40,647,979 shares
outstanding on March 31, 2014.
Webcast Conference Call
Horace Mann's senior management
will discuss the company's first quarter financial results with
investors and analysts on April 25,
2014 at 9:00 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 period
ended December 31, 2013 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,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
EARNINGS
SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
28.4
|
|
$
27.0
|
|
5.2%
|
|
Net realized
investment gains, after tax
|
1.1
|
|
4.4
|
|
-75.0%
|
Operating income
(A)
|
27.3
|
|
22.6
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
Per diluted
share:
|
|
|
|
|
|
|
Net income
|
$
0.67
|
|
$
0.66
|
|
1.5%
|
|
|
Net realized
investment gains, after tax
|
$
0.02
|
|
$
0.11
|
|
-81.8%
|
|
Operating income
(A)
|
$
0.65
|
|
$
0.55
|
|
18.2%
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares
|
|
|
|
|
|
|
and equivalent shares
(in millions) - Diluted
|
42.3
|
|
41.1
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income return on
equity (B)
|
9.8%
|
|
8.7%
|
|
N.M.
|
Operating income
return on equity excluding the fair value
|
|
|
|
|
|
|
adjustment for
investments (A) (C)
|
10.8%
|
|
9.8%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
POSITION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
(D):
|
|
|
|
|
|
|
Book value
|
$
29.47
|
|
$
31.81
|
|
-7.4%
|
|
|
Effect of the fair
value adjustment for investments (E)
|
$
5.20
|
|
$
9.43
|
|
-44.9%
|
|
Book value excluding
the fair value adjustment for investments (A)
|
$
24.27
|
|
$
22.38
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
$
0.230
|
|
$
0.195
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
Ending number of
shares outstanding (in millions) (D)
|
40.6
|
|
39.7
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
Total
assets
|
$ 9,083.5
|
|
$ 8,457.4
|
|
7.4%
|
Short-term
debt
|
38.0
|
|
38.0
|
|
-
|
Long-term
debt
|
199.9
|
|
199.8
|
|
0.1%
|
Total shareholders'
equity
|
1,197.8
|
|
1,261.7
|
|
-5.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADDITIONAL
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exclusive agencies
(F)
|
629
|
|
620
|
|
1.5%
|
Employee agents
(G)
|
93
|
|
129
|
|
-27.9%
|
|
Total
|
722
|
|
749
|
|
-3.6%
|
|
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 40,647,979 at March 31, 2014 and 39,667,063 at
March 31, 2013.
|
(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,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance premiums
and contract charges earned
|
$
175.4
|
|
$
169.2
|
|
3.7%
|
Net investment
income
|
83.0
|
|
77.4
|
|
7.2%
|
Net realized
investment gains
|
1.7
|
|
6.9
|
|
-75.4%
|
Other
income
|
1.1
|
|
1.1
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
261.2
|
|
254.6
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits, claims and
settlement expenses
|
112.0
|
|
112.7
|
|
-0.6%
|
Interest
credited
|
43.1
|
|
41.4
|
|
4.1%
|
Policy acquisition
expenses amortized
|
23.0
|
|
20.1
|
|
14.4%
|
Operating
expenses
|
39.9
|
|
38.8
|
|
2.8%
|
Interest
expense
|
3.5
|
|
3.6
|
|
-2.8%
|
|
|
|
|
|
|
|
|
|
|
|
Total benefits,
losses and expenses
|
221.5
|
|
216.6
|
|
2.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
39.7
|
|
38.0
|
|
4.5%
|
|
Income tax
expense
|
11.3
|
|
11.0
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
Net income
|
$
28.4
|
|
$
27.0
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREMIUMS WRITTEN
AND CONTRACT DEPOSITS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
$
137.2
|
|
$
131.9
|
|
4.0%
|
|
|
|
|
|
|
|
|
|
Annuity
deposits
|
100.3
|
|
90.2
|
|
11.2%
|
|
|
|
|
|
|
|
|
|
Life
|
|
|
22.8
|
|
23.0
|
|
-0.9%
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
260.3
|
|
$
245.1
|
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT NET INCOME
(LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
$
14.0
|
|
$
10.2
|
|
37.3%
|
|
|
|
|
|
|
|
|
|
Annuity
|
12.3
|
|
11.1
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
Life
|
|
|
3.9
|
|
4.3
|
|
-9.3%
|
|
|
|
|
|
|
|
|
|
Corporate and other
(A)
|
(1.8)
|
|
1.4
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
28.4
|
|
$
27.0
|
|
5.2%
|
|
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,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
PROPERTY &
CASUALTY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
written
|
$
137.2
|
|
$
131.9
|
|
4.0%
|
Premiums
earned
|
143.9
|
|
137.9
|
|
4.4%
|
Net investment
income
|
9.3
|
|
9.0
|
|
3.3%
|
Other
income
|
0.2
|
|
-
|
|
N.M.
|
Losses and loss
adjustment expenses (LAE)
|
95.0
|
|
96.4
|
|
-1.5%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
39.8
|
|
37.7
|
|
5.6%
|
Income before
tax
|
18.6
|
|
12.8
|
|
45.3%
|
Net income
|
14.0
|
|
10.2
|
|
37.3%
|
|
|
|
|
|
|
|
|
|
Net investment
income, after tax
|
7.8
|
|
7.6
|
|
2.6%
|
|
|
|
|
|
|
|
|
|
Catastrophe costs
(A)
|
|
|
|
|
|
|
After tax
|
4.1
|
|
3.7
|
|
10.8%
|
|
Before tax
|
6.3
|
|
5.7
|
|
10.5%
|
|
|
|
|
|
|
|
|
|
Prior years' reserves
favorable (adverse)
|
|
|
|
|
|
|
development, before
tax
|
|
|
|
|
|
|
|
Automobile
|
4.0
|
|
3.3
|
|
21.2%
|
|
|
Property
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
4.0
|
|
3.3
|
|
21.2%
|
|
|
|
|
|
|
|
|
|
Operating
statistics:
|
|
|
|
|
|
|
Loss and loss
adjustment expense ratio
|
66.0%
|
|
69.9%
|
|
N.M.
|
|
Expense
ratio
|
27.7%
|
|
27.3%
|
|
N.M.
|
|
Combined
ratio
|
93.7%
|
|
97.2%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
Effect on the
combined ratio of:
|
|
|
|
|
|
|
|
|
Catastrophe costs
(A)
|
4.4%
|
|
4.2%
|
|
N.M.
|
|
|
|
Prior years' reserve
development
|
-2.8%
|
|
-2.4%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
Combined ratio
excluding the effects of catastrophe
|
|
|
|
|
|
|
|
costs and prior
years' reserve development
|
|
|
|
|
|
|
|
("underlying combined
ratio") (B)
|
92.1%
|
|
95.4%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
Policies in force
(voluntary) (in thousands)
|
714
|
|
724
|
|
-1.4%
|
|
Automobile
|
480
|
|
486
|
|
-1.2%
|
|
Property
|
234
|
|
238
|
|
-1.7%
|
|
|
|
|
|
|
|
|
|
Policy renewal rate
(voluntary) - 12 months
|
|
|
|
|
|
|
Automobile
|
84.6%
|
|
85.0%
|
|
N.M.
|
|
Property
|
88.9%
|
|
89.7%
|
|
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)
|
These measures are
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,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
ANNUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
deposits
|
$
100.3
|
|
$
90.2
|
|
11.2%
|
|
Variable
|
32.5
|
|
30.3
|
|
7.3%
|
|
Fixed
|
67.8
|
|
59.9
|
|
13.2%
|
Contract charges
earned
|
5.9
|
|
5.1
|
|
15.7%
|
Net investment
income
|
55.8
|
|
51.3
|
|
8.8%
|
Interest
credited
|
32.3
|
|
30.7
|
|
5.2%
|
|
Net interest margin
(without realized investment gains/losses)
|
23.5
|
|
20.6
|
|
14.1%
|
Other
income
|
0.6
|
|
0.7
|
|
-14.3%
|
Mortality loss and
other reserve changes
|
(0.4)
|
|
(0.3)
|
|
33.3%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
11.8
|
|
9.6
|
|
22.9%
|
Income before
tax
|
17.8
|
|
16.5
|
|
7.9%
|
Net income
|
12.3
|
|
11.1
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
Pretax income
increase (decrease) due to
|
|
|
|
|
|
|
evaluation
of:
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
$
(0.1)
|
|
$
1.6
|
|
N.M.
|
|
|
Guaranteed minimum
death benefit reserve
|
-
|
|
0.1
|
|
-100.0%
|
|
|
|
|
|
|
|
|
|
Annuity contracts in
force (in thousands)
|
196
|
|
190
|
|
3.2%
|
Accumulated account
value on deposit / Assets under management
|
$ 5,412.1
|
|
$ 4,927.3
|
|
9.8%
|
|
Variable
|
1,745.0
|
|
1,508.3
|
|
15.7%
|
|
Fixed
|
3,667.1
|
|
3,419.0
|
|
7.3%
|
Annuity accumulated
value retention - 12 months
|
|
|
|
|
|
|
Variable
accumulations
|
94.1%
|
|
94.3%
|
|
N.M.
|
|
Fixed
accumulations
|
95.1%
|
|
95.5%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums and contract
deposits
|
$
22.8
|
|
$
23.0
|
|
-0.9%
|
Premiums and contract
charges earned
|
25.6
|
|
26.2
|
|
-2.3%
|
Net investment
income
|
18.1
|
|
17.3
|
|
4.6%
|
Other
income
|
0.3
|
|
0.4
|
|
-25.0%
|
Death
benefits/mortality cost/change in reserves
|
16.6
|
|
16.0
|
|
3.8%
|
Interest
credited
|
10.8
|
|
10.7
|
|
0.9%
|
Operating expenses
(includes policy
|
|
|
|
|
|
|
acquisition expenses
amortized)
|
10.6
|
|
10.4
|
|
1.9%
|
Income before
tax
|
6.0
|
|
6.8
|
|
-11.8%
|
Net income
|
3.9
|
|
4.3
|
|
-9.3%
|
|
|
|
|
|
|
|
|
|
Pretax income
increase (decrease) due to
|
|
|
|
|
|
|
evaluation
of:
|
|
|
|
|
|
|
|
Deferred policy
acquisition costs
|
$
-
|
|
$
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Life policies in
force (in thousands)
|
200
|
|
201
|
|
-0.5%
|
Life insurance in
force
|
$
15,241
|
|
$
14,701
|
|
3.7%
|
Lapse ratio - 12
months
|
|
|
|
|
|
|
(Ordinary life
insurance)
|
4.2%
|
|
4.3%
|
|
N.M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE AND
OTHER (A)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of income
(loss) before tax:
|
|
|
|
|
|
|
Net realized
investment gains
|
$
1.7
|
|
$
6.9
|
|
-75.4%
|
|
Interest
expense
|
(3.5)
|
|
(3.6)
|
|
-2.8%
|
|
Other operating
expenses, net investment income
|
|
|
|
|
|
|
|
and other
income
|
(0.9)
|
|
(1.4)
|
|
-35.7%
|
Income (loss) before
tax
|
(2.7)
|
|
1.9
|
|
N.M.
|
Net income
(loss)
|
(1.8)
|
|
1.4
|
|
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,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
% Change
|
INVESTMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuity and
Life
|
|
|
|
|
|
|
Fixed maturities, at
fair value (amortized
|
|
|
|
|
|
|
|
cost 2014,
$5,260.1; 2013, $4,736.2)
|
$ 5,599.1
|
|
$ 5,312.0
|
|
5.4%
|
|
Equity securities, at
fair value
|
|
|
|
|
|
|
|
(cost 2014,
$35.5; 2013, $5.5)
|
33.5
|
|
5.2
|
|
N.M.
|
|
Short-term
investments
|
22.7
|
|
19.6
|
|
15.8%
|
|
Policy
loans
|
140.7
|
|
135.7
|
|
3.7%
|
|
Other
investments
|
61.6
|
|
53.6
|
|
14.9%
|
|
|
|
Total Annuity and
Life investments
|
5,857.6
|
|
5,526.1
|
|
6.0%
|
|
|
|
|
|
|
|
|
|
Property &
Casualty
|
|
|
|
|
|
|
Fixed maturities, at
fair value (amortized
|
|
|
|
|
|
|
|
cost 2014,
$770.9; 2013, $773.7)
|
799.3
|
|
831.7
|
|
-3.9%
|
|
Equity securities, at
fair value
|
|
|
|
|
|
|
|
(cost 2014,
$49.9; 2013, $47.6)
|
60.7
|
|
53.5
|
|
13.5%
|
|
Short-term
investments
|
16.6
|
|
0.7
|
|
N.M.
|
|
Other
investments
|
30.9
|
|
-
|
|
N.M.
|
|
|
|
Total Property &
Casualty investments
|
907.5
|
|
885.9
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
Corporate
investments
|
36.2
|
|
14.1
|
|
156.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investments
|
6,801.3
|
|
6,426.1
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
|
|
|
|
|
Before tax
|
$
83.0
|
|
$
77.4
|
|
7.2%
|
|
After tax
|
55.7
|
|
52.1
|
|
6.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment gains
|
|
|
|
|
|
|
Before tax
|
$
1.7
|
|
$
6.9
|
|
-75.4%
|
|
After tax
|
1.1
|
|
4.4
|
|
-75.0%
|
|
|
Per share,
diluted
|
$
0.02
|
|
$
0.11
|
|
-81.8%
|
SOURCE Horace Mann Educators Corporation