Horace Mann Educators (HMN) Q2 2026 earnings summary

Executive summary

• Achieved record second-quarter core earnings of $1.17 per share and net income of $41.6 million, up 41.5% year-over-year, with core shareholder return on equity at 12.8% for the trailing 12 months.

• Total revenues reached $444 million, up 8% year-over-year, driven by strong sales momentum and diversified business segments.

• Tangible book value per share increased 10% year-over-year to $36.64, and book value per share rose 11.4% to $37.11.

• Increased full-year 2026 core earnings guidance to $4.60–$4.90 per share, reflecting strong first-half results and confidence in the outlook.

• Continued expansion of educator-focused partnerships and brand awareness, with over one-third of educators nationwide recognizing the brand.

Financial highlights

• Core earnings for Q2 2026 were $48 million, with Property & Casualty combined ratio improving by over 7 points year-over-year to 89.6% due to favorable weather and lower catastrophe losses.

• Individual Supplemental & Group Benefits sales grew 44% and Life sales rose 20% year-over-year.

• Net investment income rose 8.8% to $120.5 million for the quarter, reflecting strong fixed income returns.

• Tangible book value per share increased 10% year-over-year.

• Net investment losses narrowed to $0.1 million from $5.9 million in Q2 2025.

Outlook and guidance

• Raised full-year 2026 core EPS guidance to $4.60–$4.90, with core earnings expected between $189 million and $202 million.

• Full-year catastrophe loss assumption reduced to $75 million; net investment income guidance lowered to $465–$475 million.

• Individual Supplemental & Group Benefits blended benefit ratio expected at 42%.

• Long-term objectives reaffirmed: 10%+ compound annual growth in core EPS and 12–13% sustainable ROE.

• Recent acquisitions expected to be accretive to EPS and ROE beginning in 2027.