SPRINGFIELD, Ill., Oct. 28 /PRNewswire-FirstCall/ -- Horace Mann
Educators Corporation (NYSE:HMN) today reported net income of $19.3
million (48 cents per share) and $51.3 million ($1.27 per share)
for the three and nine months ended September 30, 2009,
respectively, compared to net losses of $30.8 million (79 cents per
share) and $12.0 million (30 cents per share) for the same periods
in 2008. Included in net income were net realized gains on
securities of $11.5 million ($7.4 million after tax, or 19 cents
per share) and $21.7 million ($14.0 million after tax, or 35 cents
per share) for the three and nine months ended September 30, 2009,
respectively. In the same periods in 2008, the net losses included
net realized investment losses of $45.2 million ($37.5 million
after tax, or 96 cents per share) and $55.7 million ($44.2 million
after tax, or $1.10 per share), respectively. All per-share amounts
are stated on a diluted basis. "With the continuing improvement and
stabilization of the financial markets in the third quarter, our
confidence in the quality of our investment portfolio has been
reaffirmed. We ended the quarter in a net unrealized gain position,
with reported book value per share increasing 30 percent
sequentially to $18.59. Meanwhile, key balance sheet ratios, as
well as risk based capital, remain more than adequate to support
our ratings," said Louis G. Lower, President and Chief Executive
Officer. "Horace Mann's financial stability, combined with our
established position in the educator niche market, contributed to
another strong quarter in annuity sales, which increased 23 percent
compared to a year ago, with the last two quarters of annuity net
fund flows hitting record levels. While the reduced number of new
car sales this year puts pressure on applications for true new auto
units, we continue to close the gap to prior year and would expect
additional improvement, as our growth in total points of
distribution and recent growth in agent count build on the momentum
we've established to transform our distribution system to a new,
more powerful model." "Net income before realized investment gains
and losses was 29 cents per share for the third quarter compared to
17 cents a year ago," continued Lower. "Due to the absence of
hurricanes, catastrophe losses in the quarter were significantly
less than prior year, although non-hurricane catastrophes were well
above normal levels during the period. In addition, for the current
accident year and excluding catastrophes, our property and casualty
combined ratio of approximately 97 percent in the current quarter
was about 10 percentage points greater than 2008, about 3
percentage points of which was due to the re-estimation and
strengthening of 2009 accident year reserves. The remainder of the
unfavorable prior year combined ratio variance in part reflected an
increase in large property losses, primarily sinkhole claims in
Florida. In addition, for our auto line the adverse prior year
variance was in large part due to the extremely favorable loss
experience in the third quarter of 2008, which reflected the impact
of higher gas prices on miles driven. Year to date, the current
accident year auto loss ratio is only slightly above prior year and
is consistent with our expectations. Meanwhile, combined annuity
and life segment pretax earnings increased approximately 10 percent
in the third quarter compared to prior year, primarily due to
improvement in the interest margin and the positive impact of
market performance." "We are updating our estimate of full-year
2009 net income before realized investment gains and losses to
between $1.37 and $1.47 per share, reflecting the higher level of
non-catastrophe losses in our property line, partially offset by
the favorable results in our annuity business," Lower said. "This
projection assumes a normal level of property and casualty weather
losses and moderate appreciation in the financial markets in the
fourth quarter." Segment Earnings The property and casualty segment
recorded net income of $3.8 million for the quarter, an increase of
$5.1 million compared to the same period in 2008. Pretax
catastrophe costs in the current quarter were $12.3 million
compared to $36.2 million incurred in the third quarter of 2008.
The third quarter 2009 property and casualty combined ratio was
104.1 percent, including 8.9 percentage points due to catastrophe
costs, compared to 109.7 percent, including 26.9 percentage points
due to catastrophe costs, in the prior year period. Favorable prior
years' reserve development totaling $2.8 million was recorded in
the third quarter, which represented 2.0 percentage points on the
combined ratio, compared to $6.3 million, or 4.7 percentage points
on the combined ratio, recorded in the third quarter of 2008.
Adverse development of claims incurred in the first two quarters of
2009 resulted in current accident year reserves being strengthened
by $4.2 million, with a combined ratio impact of 3.1 percentage
points, in the third quarter. Annuity segment net income was $7.3
million for the three months ended September 30, 2009, reflecting
an increase of $1.0 million compared to the same period in 2008. In
the third quarter, the positive market performance had a favorable
impact on both the valuation of annuity deferred policy acquisition
costs and the level of guaranteed minimum death benefit reserves.
In contrast, however, financial market performance over the past 12
months adversely affected the level of charges and fees earned on
variable contract deposits in the quarter compared to prior year,
which partially offset the higher interest margin earned on fixed
annuity assets in the current period. Total annuity net fund flows
continued to be positive in the quarter, as they were throughout
2008, and total cash value persistency of nearly 94 percent
increased about 1 percentage point compared to a year earlier."
Life segment net income of $4.5 million for the third quarter was
slightly higher compared to the same period in 2008, with growth in
investment income nearly offset by an increase in mortality costs.
Life persistency remained in excess of 94 percent. Segment Revenues
The company's total premiums written and contract deposits
increased 8 percent and 5 percent compared to the three and nine
months ended September 30, 2008, respectively, primarily reflecting
increases in annuity deposit receipts in the current periods. Total
property and casualty premiums written increased 2 percent compared
to both the three and nine months ended September 30, 2008,
primarily due to increases in average property and auto premiums
per policy. Annuity deposits received increased 21 percent and 13
percent compared to the three and nine months ended September 30,
2008, respectively. Life segment insurance premiums and contract
deposits decreased 2 percent compared to the prior year periods.
Sales and Distribution For the three and nine months ended
September 30, 2009, total new auto sales units were 3 percent and 4
percent lower in the respective current periods than in the prior
year. "In spite of the adverse prior year comparisons in total
units, average agent true new auto productivity increased in the
current nine months," said Lower. Following a 50 percent increase
in the first half of 2009, total annuity sales increased 23 percent
in the quarter resulting in a 38 percent increase for the nine
months compared to the prior year. While both flexible premium
sales and single and rollover deposits increased approximately 38
percent, the year-to-date overall growth was driven primarily by
single and rollover deposits. In the third quarter of 2009, new
life business -- including both Horace Mann and partner company
products -- increased over 20 percent, with growth in the company's
new life business driven by the recent introduction of a new
educator-focused portfolio of Horace Mann term and whole life
products. At September 30, 2009, Horace Mann's 694 agents
represented an increase of nearly 1 percent compared to a year
earlier. The number of agents grew sequentially in each of the
three quarters in 2009, resulting in a 4 percent increase in agent
count since year-end 2008. Including 519 licensed producers who
work for the agents, Horace Mann's total points of distribution
increased to 1,213, a growth of 16 percent over a year earlier. "We
continue to be encouraged by the increase in the number of agents
this year. This quarter's year-over-year agent growth, coupled with
the positive impact that our new Agency Business Model is having on
productivity and the recent enhancements made to our field sales
management structure, bodes well for Horace Mann's future growth
prospects," said Lower. Investment Gains and Losses In the third
quarter of 2009, pretax net realized investment gains were $11.5
million, which included $1.3 million of credit-related impairment
write-downs, attributable to three issuers, and $0.5 million of
realized impairment losses on securities that were disposed of
during the quarter. The impairment amounts were more than offset by
approximately $13 million of realized gains on other security
sales. Horace Mann's net unrealized investment gains on fixed
maturity and equity securities of $84.1 million at September 30,
2009 improved significantly compared to the net unrealized losses
of $171.3 million, $359.6 million and $327.2 million recorded at
June 30, 2009, March 31, 2009 and December 31, 2008, respectively.
"Credit spreads continued to tighten across virtually all asset
classes in the third quarter, with our investment grade corporate
bond portfolio experiencing the most significant improvement in
fair value. Some of the more highly stressed asset classes also
showed improvement, including our CMBS portfolio and our financial
institution bond and preferred stock holdings," said Lower. "In
light of the continued widespread improvement in the credit
markets, coupled with our insignificant exposure to sub-prime,
Alt-A, other lower-quality structured securities and commercial
mortgage whole loans, we remain very comfortable with the
underlying credit quality of our investment portfolio and have a
high level of confidence that any future investment losses relating
to the current economic environment will be very manageable."
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 http://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 Quarterly
Report on Form 10-Q for the period ended June 30, 2009 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. HORACE MANN
EDUCATORS CORPORATION Digest of Earnings and Highlights (Unaudited)
(Dollars in Millions, Except Per Share Data) Quarter Ended Nine
Months Ended September 30, September 30, -------------
------------- 2009 2008 % Change 2009 2008 % Change ---- ----
-------- ---- ---- -------- DIGEST OF EARNINGS ------------------
Net income (loss) $19.3 $(30.8) N.M. $51.3 $(12.0) N.M. Net income
(loss) per share: Basic $0.49 $(0.79) N.M. $1.31 $(0.30) N.M.
Diluted $0.48 $(0.79) N.M. $1.27 $(0.30) N.M. Weighted average
number of shares and equivalent shares (in millions) (A): Basic
39.2 39.1 0.3% 39.2 40.1 -2.2% Diluted 40.6 39.1 3.8% 40.6 40.1
1.2% HIGHLIGHTS ---------- Operations ---------- Insurance premiums
written and contract deposits $271.7 $251.4 8.1% $757.7 $721.0 5.1%
Return on equity (B) 14.1% 1.0% N.M. Property & Casualty GAAP
combined ratio 104.1% 109.7% N.M. 100.9% 103.3% N.M. Effect of
catastrophe costs on the Property & Casualty combined ratio
8.9% 26.9% N.M. 7.8% 15.9% N.M. Dedicated agents (C) 694 690 0.6%
Licensed producers (D) 519 360 44.2% Total points of distribution
1,213 1,050 15.5% Additional Per Share Information
------------------ Dividends paid $0.0525 $0.105 -50.0% $0.1575
$0.315 -50.0% Book value (E) $18.59 $11.82 57.3% Financial Position
------------------ Total assets $6,292.1 $5,787.4 8.7% Short-term
debt 38.0 - N.M. Long-term debt 199.6 199.5 0.1% Total
shareholders' equity 728.6 461.8 57.8% N.M. - Not meaningful. (A)
During the three months ended March 31, 2008, the Company
repurchased 1,636,376 shares of its common stock at an aggregate
cost of $29.5 million, or an average cost of $18.01 per share.
During the three months ended June 30, 2008, the Company
repurchased 1,561,849 shares of its common stock at an aggregate
cost of $24.8 million, or an average cost of $15.93 per share. (B)
Based on trailing 12-month net income and average quarter-end
shareholders' equity. (C) Agents under contract with the Company to
market only the Company's products and limited additional
third-party vendor products authorized by the Company. (D) Includes
licensed producers working in dedicated agents' offices and
excludes independent agents. (E) Book value per share excluding the
fair value adjustment for investments was $17.30 at September 30,
2009 and $15.82 at September 30, 2008. Ending shares outstanding
were 39,184,363 at September 30, 2009 and 39,061,788 at September
30, 2008. -1- HORACE MANN EDUCATORS CORPORATION Statements of
Operations and Supplemental GAAP Consolidated Data (Unaudited)
(Dollars in Millions) Quarter Ended Nine Months Ended September 30,
September 30, ------------- ------------- 2009 2008 % Change 2009
2008 % Change ---- ---- -------- ---- ---- -------- STATEMENTS OF
OPERATIONS ------------- Insurance premiums and contract charges
earned $165.8 $163.4 1.5% $491.8 $489.7 0.4% Net investment income
62.5 57.8 8.1% 181.4 172.2 5.3% Net realized investment gains
(losses) 11.5 (45.2) N.M. 21.7 (55.7) N.M. Other income 1.8 2.2
-18.2% 6.6 7.5 -12.0% Total revenues 241.6 178.2 35.6% 701.5 613.7
14.3% Benefits, claims and settlement expenses 122.6 131.2 -6.6%
348.6 360.2 -3.2% Interest credited 35.3 33.2 6.3% 103.5 97.9 5.7%
Policy acquisition expenses amortized 18.1 16.2 11.7% 60.2 56.0
7.5% Operating expenses 34.9 30.6 14.1% 105.6 98.7 7.0%
Amortization of intangible assets - 1.3 -100.0% 0.2 4.1 -95.1%
Interest expense 3.5 3.4 2.9% 10.5 10.2 2.9% Total benefits, losses
and expenses 214.4 215.9 -0.7% 628.6 627.1 0.2% Income (loss)
before income taxes 27.2 (37.7) N.M. 72.9 (13.4) N.M. Income tax
expense (benefit) 7.9 (6.9) N.M. 21.6 (1.4) N.M. Net income (loss)
$19.3 $(30.8) N.M. $51.3 $(12.0) N.M. ANALYSIS OF PREMIUMS WRITTEN
AND CONTRACT DEPOSITS --------------------- Property & Casualty
Automobile and property (voluntary) $146.3 $143.1 2.2% $414.2
$407.4 1.7% Involuntary and other property & casualty 0.6 0.4
50.0% 2.5 1.4 78.6% Total Property & Casualty 146.9 143.5 2.4%
416.7 408.8 1.9% Annuity deposits 100.5 83.1 20.9% 268.1 237.8
12.7% Life 24.3 24.8 -2.0% 72.9 74.4 -2.0% Total $271.7 $251.4 8.1%
$757.7 $721.0 5.1% ANALYSIS OF SEGMENT NET INCOME (LOSS)
------------------- Property & Casualty $3.8 $(1.3) N.M. $19.8
$13.6 45.6% Annuity 7.3 6.3 15.9% 14.8 14.4 2.8% Life 4.5 4.4 2.3%
12.9 12.2 5.7% Corporate and other (A) 3.7 (40.2) N.M. 3.8 (52.2)
N.M. Net income (loss) 19.3 (30.8) N.M. 51.3 (12.0) N.M.
Catastrophe costs, after tax, included above (B) (8.0) (23.6)
-66.1% (20.7) (41.6) -50.2% 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. (B) Includes allocated loss
adjustment expenses and catastrophe reinsurance reinstatement
premiums. See also page 3. -2- HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited) (Dollars in
Millions) Quarter Ended Nine Months Ended September 30, September
30, ------------- ------------- 2009 2008 % Change 2009 2008 %
Change ---- ---- -------- ---- ---- -------- PROPERTY &
CASUALTY -------------------- Premiums written $146.9 $143.5 2.4%
$416.7 $408.8 1.9% Premiums earned 137.6 134.5 2.3% 408.4 402.0
1.6% Net investment income 8.8 8.7 1.1% 25.6 27.0 -5.2% Other
income 0.3 - N.M. 2.3 1.1 109.1% Losses and loss adjustment
expenses (LAE) 108.9 117.5 -7.3% 309.2 320.2 -3.4% Operating
expenses (includes policy acquisition expenses amortized) 34.4 30.1
14.3% 102.8 95.3 7.9% Income (loss) before tax 3.4 (4.4) N.M. 24.3
14.6 66.4% Net income (loss) 3.8 (1.3) N.M. 19.8 13.6 45.6% Net
investment income, after tax 7.6 7.3 4.1% 21.8 22.6 -3.5%
Catastrophe costs, after tax (A) 8.0 23.6 -66.1% 20.7 41.6 -50.2%
Catastrophe losses and LAE, before tax 12.3 36.2 -66.0% 31.9 64.0
-50.2% Reinsurance reinstatement premiums, before tax - - - - - -
Operating statistics: Loss and loss adjustment expense ratio 79.2%
87.3% N.M. 75.7% 79.6% N.M. Expense ratio 24.9% 22.4% N.M. 25.2%
23.7% N.M. Combined ratio 104.1% 109.7% N.M. 100.9% 103.3% N.M.
Effect on the combined ratio of: Catastrophe costs 8.9% 26.9% N.M.
7.8% 15.9% N.M. Claims office consolidation costs (all in LAE) 0.3%
- N.M. 0.9% - N.M. Automobile and property detail: Premiums written
(voluntary) (B) $146.3 $143.1 2.2% $414.2 $407.4 1.7% Automobile
94.7 93.1 1.7% 279.3 275.2 1.5% Property 51.6 50.0 3.2% 134.9 132.2
2.0% Premiums earned (voluntary) (B) 137.1 134.3 2.1% 406.8 401.7
1.3% Automobile 92.8 91.6 1.3% 276.8 273.6 1.2% Property 44.3 42.7
3.7% 130.0 128.1 1.5% Policies in force (voluntary) (in thousands)
790 798 -1.0% Automobile 529 535 -1.1% Property 261 263 -0.8%
Policy renewal rate (voluntary) Automobile (6 months) 91.7% 91.5%
N.M. Property (12 months) 89.5% 88.7% N.M. Voluntary automobile
operating statistics: Loss and loss adjustment expense ratio 72.9%
62.1% N.M. 70.9% 68.3% N.M. Expense ratio 25.1% 22.1% N.M. 25.4%
23.5% N.M. Combined ratio 98.0% 84.2% N.M. 96.3% 91.8% N.M. Effect
on the combined ratio of: Catastrophe costs 1.3% 2.0% N.M. 0.9%
1.6% N.M. Claims office consolidation costs (all in LAE) 0.4% -
N.M. 1.1% - N.M. Total property operating statistics: Loss and loss
adjustment expense ratio 92.3% 143.8% N.M. 86.0% 105.4% N.M.
Expense ratio 24.4% 23.2% N.M. 24.6% 24.0% N.M. Combined ratio
116.7% 167.0% N.M. 110.6% 129.4% N.M. Effect on the combined ratio
of: Catastrophe costs 25.4% 82.1% N.M. 22.9% 47.3% N.M. Claims
office consolidation costs (all in LAE) 0.1% - N.M. 0.5% - N.M.
Prior years' reserves favorable (adverse) development, pretax
Voluntary automobile $1.7 $6.2 -72.6% $6.7 $9.7 -30.9% Total
property 0.9 (0.5) N.M. 0.9 0.1 N.M. Other property and casualty
0.2 0.6 -66.7% 0.7 1.6 -56.3% Total 2.8 6.3 -55.6% 8.3 11.4 -27.2%
N.M. - Not meaningful. (A) Includes allocated loss adjustment
expenses and catastrophe reinsurance reinstatement premiums. (B)
Amounts are net of additional ceded premiums to reinstate the
Company's property and casualty catastrophe reinsurance coverage,
if any, as quantified above. -3- HORACE MANN EDUCATORS CORPORATION
Supplemental Business Segment Overview (Unaudited) (Dollars in
Millions) Quarter Ended Nine Months Ended September 30, September
30, ------------- ------------- 2009 2008 % Change 2009 2008 %
Change ---- ---- -------- ---- ---- -------- ANNUITY -------
Contract deposits $100.5 $83.1 20.9% $268.1 $237.8 12.7% Variable
26.5 31.7 -16.4% 82.5 102.6 -19.6% Fixed 74.0 51.4 44.0% 185.6
135.2 37.3% Contract charges earned 3.6 4.2 -14.3% 10.2 13.8 -26.1%
Net investment income 37.8 34.4 9.9% 109.6 101.5 8.0% Net interest
margin (without realized investment gains and losses) 12.3 10.8
13.9% 35.5 32.2 10.2% Other income 0.8 1.4 -42.9% 2.2 4.1 -46.3%
Mortality loss and other reserve changes 0.4 (0.3) N.M. 0.7 (0.4)
N.M. Operating expenses (includes policy acquisition expenses
amortized) 6.2 6.0 3.3% 26.7 26.2 1.9% Amortization of intangible
assets - 0.9 -100.0% - 3.1 -100.0% Income before tax 10.9 9.2 18.5%
21.9 20.4 7.4% Net income 7.3 6.3 15.9% 14.8 14.4 2.8% Pretax
income increase (decrease) due to valuation of: Deferred policy
acquisition costs $2.5 $2.2 13.6% $0.8 $0.1 N.M. Value of acquired
insurance in force - 0.2 -100.0% - - N.M. Guaranteed minimum death
benefit reserve 0.5 (0.2) N.M. 0.7 (0.3) N.M. Annuity contracts in
force (in thousands) 177 168 5.4% Accumulated value on deposit
$3,601.5 $3,539.0 1.8% Variable 1,153.7 1,266.1 -8.9% Fixed 2,447.8
2,272.9 7.7% Annuity accumulated value retention - 12 months
Variable accumulations 93.4% 92.7% N.M. Fixed accumulations 94.1%
93.3% N.M. LIFE ---- Premiums and contract deposits $24.3 $24.8
-2.0% $72.9 $74.4 -2.0% Premiums and contract charges earned 24.6
24.7 -0.4% 73.2 73.9 -0.9% Net investment income 16.2 15.0 8.0%
47.0 44.5 5.6% Income before tax 6.9 6.9 0.0% 20.2 19.2 5.2% Net
income 4.5 4.4 2.3% 12.9 12.2 5.7% Pretax income increase
(decrease) due to valuation of: Deferred policy acquisition costs
$(0.1) $0.2 N.M. $(0.2) $0.1 N.M. Life policies in force (in
thousands) 215 222 -3.2% Life insurance in force $13,667 $13,619
0.4% Lapse ratio - 12 months (Ordinary life insurance) 5.5% 5.5%
N.M. CORPORATE AND OTHER (A) ------------- Components of income
(loss) before tax: Net realized investment gains (losses) $11.5
$(45.2) N.M. $21.7 $(55.7) N.M. Interest expense (3.5) (3.4) 2.9%
(10.5) (10.2) 2.9% Other operating expenses, net investment income
and other income (2.0) (0.8) 150.0% (4.7) (1.7) 176.5% Income
(loss) before tax 6.0 (49.4) N.M. 6.5 (67.6) N.M. Net income (loss)
3.7 (40.2) N.M. 3.8 (52.2) 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) Quarter Ended Nine
Months Ended September 30, September 30, -------------
------------- 2009 2008 % Change 2009 2008 % Change ---- ----
-------- ---- ---- -------- INVESTMENTS ----------- Annuity and
Life Fixed maturities, at fair value (amortized cost 2009,
$3,207.9; 2008, $3,170.2) $3,263.3 $2,956.3 10.4% Equity
securities, at fair value (cost 2009, $45.4; 2008, $50.9) 41.3 36.6
12.8% Short-term investments 359.3 113.6 216.3% Short-term
investments, securities lending collateral - - N.M. Policy loans
and other 113.8 106.9 6.5% ----- ----- Total Annuity and Life
investments 3,777.7 3,213.4 17.6% Property & Casualty Fixed
maturities, at fair value (amortized cost 2009, $717.3; 2008,
$659.3) 750.3 622.1 20.6% Equity securities, at fair value (cost
2009, $19.4; 2008, $30.7) 19.2 25.0 -23.2% Short-term investments
17.3 54.2 -68.1% Short-term investments, securities lending
collateral - - N.M. --- --- Total Property & Casualty
investments 786.8 701.3 12.2% Corporate investments 26.3 0.9 N.M.
Total investments 4,590.8 3,915.6 17.2% Net investment income
Before tax $62.5 $57.8 8.1% $181.4 $172.2 5.3% After tax 42.5 39.2
8.4% 123.1 117.0 5.2% Net realized investment gains (losses) by
investment portfolio included in Corporate and Other segment income
(loss) Property & Casualty $3.4 $(11.9) N.M. $(2.5) $(13.6)
-81.6% Annuity 4.9 (30.7) N.M. 16.3 (41.8) N.M. Life 3.2 (2.6) N.M.
7.9 (0.3) N.M. Corporate and Other - (0.0) N.M. - (0.0) N.M. ---
---- --- ---- Total, before tax 11.5 (45.2) N.M. 21.7 (55.7) N.M.
Total, after tax 7.4 (37.5) N.M. 14.0 (44.2) N.M. Per share,
diluted $0.19 $(0.96) N.M. $0.35 $(1.10) N.M. N.M. - Not meaningful
- 5 - HORACE MANN EDUCATORS CORPORATION Supplemental Business
Segment Overview (Unaudited) (Dollars in Millions) June March
December December 30, 31, 31, 31, September 30, 2009 2009 2009 2008
2007 ----------------- ---- ---- ---- ---- Net Net Net Net Net Fair
Unreal- Unreal- Unreal- Unreal- Unreal- Value ized ized ized ized
ized Gain Gain Gain Gain Gain (Loss) (Loss) (Loss) (Loss) (Loss)
----- ------ ------ ------ ------ ------ FIXED MATURITY &
EQUITY SECURITY INVESTMENTS -------------- Fixed income securities
U.S. government and federally sponsored agency bonds $286.6 $2.0
$(2.5) $3.4 $4.9 $2.3 Municipal bonds 898.8 56.1 6.3 (3.7) (14.1)
6.0 Corporate bonds Financial institutions 244.0 6.9 (11.0) (35.3)
(19.9) (3.0) Other 1,391.1 84.6 (14.3) (140.1) (122.6) 11.0 High
yield 184.2 (11.8) (26.4) (28.0) (38.0) (4.6) Foreign government
bonds 27.0 3.0 0.7 (0.1) 0.5 1.5 Mortgage-backed securities Prime
agency 475.1 23.9 18.5 21.2 20.5 1.9 Prime other 16.4 0.5 (0.8)
(0.2) (0.6) 0.5 Sub-prime, Alt-A 2.0 (0.4) (0.8) (0.9) (0.7) (0.1)
Commercial mortgage- backed securities 258.6 (71.7) (106.6) (115.8)
(108.6) (5.4) Asset-backed securities Sub-prime, Alt-A 2.2 (0.5)
(0.3) (0.1) 0.1 - Collateralized debt obligations, collateralized
loan obligations 10.2 (3.3) (4.0) (4.7) (0.4) (3.8) Other 160.8 4.5
(4.8) (8.3) (8.5) 0.4 Preferred stocks Financial institutions 76.2
(9.5) (19.7) (34.2) (29.8) (7.6) Other 39.5 (0.7) (6.1) (12.5)
(10.0) (3.4) ---- ---- ---- ----- ----- ---- Total fixed income
securities 4,072.7 83.6 (171.8) (359.3) (327.2) (4.3) Common stocks
1.4 0.5 0.5 (0.3) - (0.5) Derivatives - - - - - - --- --- --- ---
--- --- Total fixed maturity and equity security investments
$4,074.1 $84.1 $(171.3) $(359.6) $(327.2) $(4.8) ======== =====
======= ======= ======= ===== - 6 - DATASOURCE: Horace Mann
Educators Corporation CONTACT: Dwayne D. Hallman, Senior Vice
President - Finance of Horace Mann Educators Corporation,
+1-217-788-5708 Web Site: http://www.horacemann.com/
Copyright
Horace Mann Educators (NYSE:HMN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Horace Mann Educators (NYSE:HMN)
Historical Stock Chart
From Jul 2023 to Jul 2024