HORACE MANN EDUCATORS CORP /DE/ (HMN): Results of Operations and Financial Condition
HORACE MANN EDUCATORS CORP /DE/ (HMN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.2 News release for immediate release Contact information: Rachael Luber, Vice President, Investor Relations 217-788-5163 | investorrelations@horacemann.com Horace Mann reports third-quarter 2026 results SPRINGFIELD, Ill., November 3, 2026 — Horace Mann Educators Corpor
How this was made
The 30-second read
Why it matters
The raised guidance signals stronger profitability, likely supporting a positive price reaction.
Market read
The earnings release and guidance raise are primary news that can move HMN today.
What to watch
Potential headwinds from insurance loss exposure or investment market volatility.
Horace Mann Q3 2026 core EPS $2.06, up 51.5% year over year; full-year 2026 core EPS guidance increased to $5.75-$5.95
The company reports record quarterly core earnings of $85.1 million ($2.06 per diluted share, up 51.5% against $1.36) and raised full-year 2026 core EPS guidance. Quarterly GAAP net income was flat (+0.3%) and total revenues were nearly flat (+0.2%), with a net investment loss in the quarter, so the strength is concentrated in core earnings rather than in reported revenue.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026 (three months ended Sept 30)GAAP | $439.2M | – | 0.2% |
| Total revenues, nine months 2026GAAP | $1.31B | – | 3.6% |
| Net income, Q3 2026GAAP | $58.5M | – | 0.3% |
| Net income, nine months 2026GAAP | $141.3M | – | 12.2% |
| Net investment gains (losses), after tax, Q3 2026GAAP | −$20.6M | – | N.M. |
| Net investment gains (losses), after tax, nine months 2026GAAP | −$22.4M | – | N.M. |
| Non-core earnings, after tax, Q3 2026non-GAAP | −$6M | – | N.M. |
| Non-core earnings, after tax, nine months 2026non-GAAP | −$22.1M | – | N.M. |
| Core earnings, Q3 2026non-GAAP | $85.1M | – | 50.4% |
| Core earnings, nine months 2026non-GAAP | $185.8M | – | 27.7% |
| Net income per diluted share, Q3 2026GAAP | $1.41 | – | 0.7% |
| Net income per diluted share, nine months 2026GAAP | $3.43 | – | 13.2% |
| Net investment gains (losses), after tax, per diluted share, Q3 2026GAAP | $(0.50) | – | N.M. |
| Net investment gains (losses), after tax, per diluted share, nine months 2026GAAP | $(0.54) | – | N.M. |
| Non-core earnings, after tax, per diluted share, Q3 2026non-GAAP | $(0.15) | – | N.M. |
| Non-core earnings, after tax, per diluted share, nine months 2026non-GAAP | $(0.53) | – | N.M. |
| Core earnings per diluted share, Q3 2026non-GAAP | $2.06 | – | 51.5% |
| Core earnings per diluted share, nine months 2026non-GAAP | $4.50 | – | 28.6% |
| Book value per share (point-in-time; comparison date not labeled in release)GAAP | $35.11 | – | -0.6% |
| Adjusted book value per share (point-in-time; comparison date not labeled in release)non-GAAP | $42.49 | – | 7.5% |
| Tangible book value per share (point-in-time; comparison date not labeled in release)non-GAAP | $37.85 | – | 9.4% |
| Core ROE, last twelve monthsnon-GAAP | 14.2% | – | 0.4 pts |
| Property & Casualty segment combined ratio, Q3 2026other | 83.6% | – | improved nearly 4 points over prior year (as stated in release) |
Full-year 2026 outlook
- NoteCore EPS guidance increased to $5.75-$5.95 (release states the guidance was increased; prior range not printed)
What drove it
- Company states that Q3 core earnings reflected excellent underwriting performance in the Property & Casualty business, higher net investment income and continued growth across the diversified business (CEO quote).
- Net investment income increased 17% over prior year, as stated in the release bullets; no dollar amount is printed.
- Premiums, contract charges and fee revenue increased 3%, as stated in the release bullets; no dollar amount is printed.
- Third-quarter Property & Casualty combined ratio of 83.6% is stated to have improved nearly 4 points over prior year.
Concerns
- Q3 net investment losses after tax were $(20.6) million against a gain of $2.7 million in the prior-year quarter, which is why Q3 GAAP net income was nearly flat (+0.3%) while core earnings rose 50.4%.
- Q3 total revenues were nearly flat at $439.2 million (+0.2%).
- Non-core earnings after tax were $(6.0) million in Q3 2026 against $(1.0) million in Q3 2025, and $(22.1) million for nine months against $(15.0) million.
- Release notes that the second quarter 2025 non-core earnings included an ($8.1) million out-of-period adjustment to net investment income related to private debt securities of limited partnership investments; this affects the Q2 2025 base, not Q3.
What to watch
- Net investment gains and losses, which swung from a $2.7 million gain to a $(20.6) million loss in Q3 and drive the gap between net income and core earnings.
- Full-year 2026 core EPS delivery against the raised $5.75-$5.95 range, given nine-month core EPS of $4.50.
- Property & Casualty combined ratio, reported at 83.6% for Q3.
- Growth in premiums, contract charges and fee revenue, which the release cites at 3%.
- Company plans for share repurchases and dividends, referenced in the safe harbor statement without amounts.
- Investor call on November 4, 2026 at 10:00 AM Eastern Time and the updated investor supplement and presentation.
Balance sheet and cash flow
- Release describes the balance sheet as strong (CEO quote); no cash, debt, total assets, equity or cash flow figures are printed.
- Only per-share book value measures are reported: book value per share $35.11, adjusted book value per share $42.49 and tangible book value per share $37.85.
Analysis
Horace Mann reported third-quarter 2026 results with total revenues of $439.2 million, up 0.2% from $438.5 million, and net income of $58.5 million, or $1.41 per diluted share, against $58.3 million and $1.40 a year earlier. The gap between the GAAP and core figures is the key feature of the quarter. Core earnings were $85.1 million, or $2.06 per diluted share, up 50.4% and 51.5% respectively, and the company describes this as its strongest quarterly core earnings in its history. Net investment losses after tax were $(20.6) million in the quarter, compared with a gain of $2.7 million a year earlier, which accounts for the difference between the modest GAAP growth and the strong core result.
Over nine months, total revenues rose 3.6% to $1,312.0 million and net income rose 12.2% to $141.3 million. Core earnings for the nine months were $185.8 million, up 27.7%, and core earnings per diluted share were $4.50, up 28.6% from $3.50. Non-core earnings after tax were $(22.1) million for the nine months against $(15.0) million a year earlier, and net investment losses after tax were $(22.4) million against $(4.6) million.
The release attributes the performance to underwriting in the Property & Casualty business, higher net investment income and growth across the diversified business. The bullet points state that net investment income rose 17% and that premiums, contract charges and fee revenue rose 3%, and that the third-quarter Property & Casualty combined ratio was 83.6%, improved by nearly 4 points. The release does not print dollar amounts for these lines, so the reader cannot size them from this document. The 2025 comparison also carries an ($8.1) million out-of-period adjustment in the second quarter of 2025 to net investment income, which the company describes as infrequent and immaterial.
Capital and balance sheet disclosure is limited to per-share measures. Book value per share was $35.11, down 0.6% against $35.31, while adjusted book value per share rose 7.5% to $42.49 and tangible book value per share rose 9.4% to $37.85. Core return on equity on a last-twelve-months basis was 14.2%, up 0.4 points from 13.8%. The release reports no cash, debt, cash flow or repurchase and dividend amounts.
On guidance, the company increased its full-year 2026 core EPS range to $5.75 to $5.95. The release does not print the previous range, so the size of the increase cannot be measured from this filing. With nine-month core EPS at $4.50, the reader can compare the raised range with the year-to-date figure, which the company itself presents without further explanation.
Management, verbatim
Horace Mann delivered the strongest quarterly core earnings in our history, reflecting excellent underwriting performance in our Property & Casualty business, higher net investment income, and continued growth across our diversified business.
Marita Zuraitis, President and CEO, Horace Mann
Based on our performance through the first nine months of the year, we are increasing our full-year 2026 core EPS guidance to a range of $5.75 to $5.95.
Marita Zuraitis, President and CEO, Horace Mann
Not in the filing
stated, not guessed- Previous full-year 2026 core EPS guidance range (release says guidance was increased but does not print the prior range).
- Segment revenue and segment results (no segment table provided).
- Revenue sub-lines (premiums, net investment income, fee revenue dollar amounts) beyond the stated percentage changes.
- Cost of sales, gross margin and operating expense lines (no income statement detail beyond the summary table).
- Operating income and pre-tax income.
- Interest expense and income tax expense.
- Operating cash flow and free cash flow.
- Cash, debt, total assets and total equity.
- Share repurchase and dividend amounts.
- Prior-year comparison date for book value per share, adjusted book value per share and tangible book value per share (not labeled in release).
- Prior-year value for the Property & Casualty combined ratio (release states only the change).
- Dollar amount for net investment income growth of 17% and premiums, contract charges and fee revenue growth of 3%.
- Consensus estimates and share price reaction (not provided and not to be inferred).
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Horace Mann Educators Corp filed a Form 8‑K reporting its third‑quarter 2026 financial results and an updated EPS guidance range.
Ticker impact
Horace Mann reported Q3 2026 results and raised full-year core EPS guidance to $5.75-$5.95.
potential upside as market prices in higher earnings expectations
Guidance increase is a fresh, material fact that can move the stock immediately.
Market effects
Improved earnings outlook may boost sentiment in the financial services sector.
U.S. financial stocks could see modest gains.
Limited to U.S. markets; no direct global impact.
Counterpoint
If the guidance raise is already priced in, the stock may face limited upside.
Key entities
- companyHorace Mann Educators Corp
U.S. financial services firm focused on educators.
