Horace Mann Posts Strong Third Quarter 2025 Results, Raises Full-Year Earnings Guidance
Horace Mann Educators Corporation (NYSE: HMN), the nation’s largest multiline financial services company dedicated to serving educators and school employees, announced its financial results for the third quarter and the first nine months ended September 30, 2025. The company, which is widely recognized as a core small-cap growth and value opportunity within the Financials sector, delivered another quarter of strong performance across its diversified business segments.
For the third quarter of 2025, Horace Mann reported net income of $58.3 million, or $1.40 per diluted share, reflecting a substantial increase compared to the same period in 2024. The company also achieved record core earnings of $56.6 million, or $1.36 per diluted share, demonstrating continued earnings momentum driven by disciplined underwriting, operational execution, and strong investment performance.
At the end of the quarter, Horace Mann reported a book value per share of $35.31, and an adjusted book value per share—a non-GAAP measure often used to evaluate ongoing business strength—of $39.51. Tangible book value per share increased more than 9%, underscoring the company’s strengthened capital position and balance sheet durability.
Total revenue grew 6% year over year, supported by a 7% increase in net premiums and contract charges earned, reflecting continued growth in the company’s recurring revenue base and diversified product mix. One of the most notable improvements came from the Property & Casualty (P&C) segment, where the combined ratio improved to 87.8%, representing an improvement of more than 10 points compared to the prior year, largely due to lower catastrophe losses and ongoing profitability initiatives.
Given the company’s strong performance to date, Horace Mann raised its full-year 2025 core EPS guidance to a range of $4.50 to $4.70, reinforcing expectations for double-digit return on equity (ROE) for the year.
Financial and Performance Highlights
Financial results for the three months ended September 30, 2025:
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Total Revenues | $438.5M | $412.1M | +6.4% |
| Net Income | $58.3M | $34.3M | +70.0% |
| Core Earnings | $56.6M | $34.4M | +64.5% |
| Core EPS (Diluted) | $1.36 | $0.83 | +63.9% |
| Book Value/Share | $35.31 | $31.60 | +11.7% |
| Adjusted Book Value/Share | $39.51 | $36.89 | +7.1% |
| Tangible Book Value/Share | $34.59 | $31.62 | +9.4% |
| Core ROE (LTM) | 13.8% | 7.4% | +6.4 pts |
For the nine months of 2025, total revenues reached $1.27 billion, up from $1.19 billion in the same period in 2024, representing 6.8% growth. Net income nearly doubled to $125.9 million, while core earnings rose to $145.5 million, an increase of over 100% compared to the first nine months of 2024.
The increase in profitability reflects both improved underwriting performance and gains in fee-based and interest-spread income across product lines. Non-core earnings, which typically include items like realized investment gains or losses, were negative for the quarter but improved year-over-year and had minimal impact on overall results.
President and CEO Marita Zuraitis highlighted the significance of the company’s performance, emphasizing both financial momentum and strategic alignment with Horace Mann’s mission:
Record third-quarter core earnings underscore the strong profitability and sustained growth momentum across our diversified business, as well as Property & Casualty catastrophe costs that were meaningfully below prior year and recent prior periods,” Zuraitis said. “Taking year-to-date results into consideration, we are increasing our full-year 2025 core EPS guidance to a range of $4.50 to $4.70. We continue to execute on our strategy to drive sustained, profitable growth, and we are on track to meet our 2025 goals of record annual core earnings and a double-digit shareholder return on equity.
Zuraitis further noted that Horace Mann’s mission-driven approach remains at the core of the company’s value proposition:
Our results clearly illustrate Horace Mann’s ability to empower all educators to achieve lifelong financial success, while also helping employers attract and retain employees by providing more comprehensive benefits. The diversification of our business reflects our strategy to deliver consistent and reliable value to shareholders with a solid balance sheet and a compelling dividend.
The company continues to position its offerings—spanning auto, home, life, retirement, supplemental insurance, and investment solutions—as part of an integrated financial wellness strategy tailored to the distinct needs of educators.
Business Segment Performance (High-Level Summary)
While detailed segment-level operating data is available in the company’s quarterly investor supplement, key performance drivers this quarter included:
- Property & Casualty: Strong underwriting discipline and lower weather-related losses significantly improved the combined ratio.
- Retirement and Supplemental Markets: Continued demand for educator-focused benefits programs supported revenue stability.
- Life & Annuities: Growth in investment income contributed positively to earnings, aided by a favorable interest rate environment and effective asset-liability management.
- Investment Portfolio: Returns remained consistent, with careful risk oversight and exposure to diversified asset classes.
The company also noted favorable trends in employee benefits adoption, as school systems continue to prioritize financial security and retention benefits for staff.
Simultaneous with the earnings release, Horace Mann updated the Quarterly Results page at investors.horacemann.com to include:
- Third-quarter 2025 investor supplement
- Updated investor presentation
- Detailed segment financial performance tables
- Revised guidance and outlook commentary
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