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Full-year 2024 Investor Presentation February 5, 2025 Information as of December 31, 2024, unless otherwise noted
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Safe Harbor Statement and Non-GAAP Measures Certain statements included in this presentation, including those regarding our earnings outlook, expected catastrophe losses, our investment strategies, our plans to implement additional rate actions, our plans relating to share repurchases and dividends, our efforts to enhance customer experience and expand our products and solutions to more educators, our strategies to create sustainable long-term growth and double-digit ROEs, our strategy to achieve a larger share of the education market, and other business strategies, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward- looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Horace Mann and its subsidiaries. Horace Mann cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond Horace Mann’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements included in this document. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Information” sections included in Horace Mann’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC). The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Horace Mann does not undertake to update any particular forward-looking statement included in this document if we later become aware that such statement is not likely to be achieved. The historical and forward-looking financial information contained in this presentation includes measures marked with an asterisk (*) the first time they are presented within this document that are not based on accounting principles generally accepted in the United States of America (non-GAAP) such as core earnings, core earnings per share, adjusted core earnings and adjusted book value per share. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 in our most recent Form 8-K filed with the SEC and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in the Appendix of the most current Investor Supplement available on our website at investors.horacemann.com. 2
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Full-year 2024 business results 3
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4 Core earnings per share (EPS) P&C combined ratio Improved by 15.4 points over the prior year Core return on equity (ROE) Ex- Hurricane Helene, achieved double-digit ROE Solid earnings from L&R and S&GB Below prior year due to lower NII Net premium and contract charges earned Strong sales results and benefit of rate actions More than double the prior year $3.18 8.8% 97.9% Up 8.4% DIVERSIFIED BUSINESS DELIVERED RECORD CORE EPS AND HIGHEST CORE ROE(¹) SINCE 2014 Results reflect successful P&C profitability restoration, stable earnings contributions from L&R and S&GB, and strong sales growth across all segments (1) Excluding 2020 ($3.40 / 10.5%) and 2021 ($4.24 / 11.9%) which were favorably impacted by Covid
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HORACE MANN FINANCIAL POSITION CONTINUES TO STRENGTHEN 5 $28.44 $30.92 $32.91 $35.73 $36.49 $40.93 $44.09 $48.12 $48.63 $49.84 $52.45 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Adjusted book value per share* Accumulated dividend 7.0% COMPOUND ANNUAL GROWTH IN ADJUSTED BOOK VALUE Plus accumulated dividends since 2010 16 consecutive years of dividend increases with current yield of 3.5%(1) Target~50% payout ratio (1) Through January 31, 2025; 2021 and 2022 data adjusted for impact of LDTI $123.7million in share repurchases since initial authorization in 2011(1) 20242023202220212020201920182017201620152014 $3.18$1.54$1.63$4.24$3.40$2.20$0.68$1.74$1.97$2.00$2.30CORE EPS 8.8%4.3%4.5%11.9%10.5%7.3%2.3%6.4%7.4%7.9%9.7%CORE ROE
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$618 $684 $779 2022 2023 2024 Auto Property 119.0% 111.7% 98.4% 108.8% 116.1% 96.4% 115.3% 113.3% 97.9% 2022 2023 2024 Auto Property Total P&C P&C SEGMENT: ACHIEVED FULL-YEAR UNDERWRITING PROFITABILITY P&C Revenue Net Premiums Written* ($M) P&C Profitability Combined Ratio (%) 6 +14% Key Takeaways •Net premiums written up 13.9% over prior year primarily on higher average premiums •Full-year 2024 average written premiums up 15.7% for Auto and 18.2% for Property •Policyholder retention remains strong in both Auto at 85.3%, and Property at 89.6% Key Takeaways •Total combined ratio of 97.9% improved 15.4 points over prior year •Total underlying loss ratio of 61.9% improved 9.3 points over prior year reflecting higher average premiums and lower non-cat weather losses •Prior year reserve development contributed 4.0 points of improvement Full-year segment core earnings of $49.1 million reflect improved underlying results, favorable prior year development, and slightly lower catastrophe losses
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LIFE & RETIREMENT: STABLE RESULTS WITH STRONG LIFE ANNUALIZED SALES 7 Life New Business Life Annualized Sales ($M) Key Takeaways •Life annualized sales up 11.8% over prior year •Retirement persistency steady at 91.4% •Life persistency improved to 96.1% $545 $573 $574 2022 2023 2024 L&R Revenue Net Premiums Written and Contract Deposits* ($M) Key Takeaways •Segment net investment income of $363.6 million slightly below prior year •Net interest spread on fixed annuity business of 172 bps reflecting lower commercial mortgage loan fund returns •Core 403(b) deposits remain strong $9.3 $9.3 $10.4 2022 2023 2024 Full-year segment core earnings of $56.3 million below prior year primarily due to lower net interest margins +12%
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SUPPLEMENTAL & GROUP BENEFITS: CORE EARNINGS UP 10% OVER PRIOR YEAR 8 S&GB New Business Sales* ($M) Key Takeaways •Individual Supplemental sales increased 12.6% over prior year; record fourth- quarter sales of $5.5 million •Individual Supplemental persistency steady at 90.5% •Group Benefits covered lives grew to 838,000 $121.2 $120.3 $121.6 $109.6 $114.9 $118.8 $44.6 $24.6 $14.5 $275.4 $259.8 $254.9 2022 2023 2024 S&GB Revenue Net Premiums and Contract Charges Earned($M) Key Takeaways •Segment net investment income of $38.1 million slightly below prior year •Individual Supplemental pre-tax profit margin of 35.7% •Group Benefits pre-tax profit margin of 17.4% $9.2 $15.1 $17.0 $6.9 $11.1 $8.7 $16.1 $26.2 $25.6 2022 2023 2024 Full-year segment core earnings of $60.4 million reflect favorable profit margins and strong Individual Supplemental sales Individual Supplemental Group Benefits Run-off block Individual Supplemental Group Benefits
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HIGH-QUALITY, WELL-DIVERSIFIED INVESTMENT PORTFOLIO Constructed to support insurance liabilities through various market cycles 9 Corporates 27% Municipals 17% CLO 13% Commercial Mortgage Loan Funds 9% RMBS 9% Limited Partnership Interests 8% Asset- backed 5% U.S. Treasury & Agency 5% CMBS 4% Equities 1% Short-term 1% Mortgage Loans 1% Portfolio composition(1) $6.8 billion fair value $5.4 billion fixed-maturity portfolio •74% A-rated or higher •A+ weighted-average credit quality •<3% below-investment grade exposure(2) •6.8 average duration(3) •4.31% Q4 core pre-tax yield(4) •5.38% Q4 core new money yield(4) $596 million commercial mortgage loan fund portfolio •10% target portfolio allocation •Majority of exposure is to open-ended funds comprised of senior loans $525 million limited partnership portfolio •5% target portfolio allocation •Majority of LPs are lower-volatility, fixed income- like strategies (1) As of December 31, 2024; excludes $140.8 million in policy loans and $18.5 million million in derivatives used to hedge fixed indexed annuity and life insurance products (2) Does not include securities that are not rated (3) Core fixed-maturity portfolios only (4) Prospective investment yield
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RBC Ratios FINANCIAL LEVERAGE AND OTHER CAPITAL METRICS ALIGN WITH LEVELS APPROPRIATE FOR CURRENT FINANCIAL STRENGTH RATINGS 10 Key Takeaways •More than adequate capital to continue to grow business •Conservative targets for year-end RBCs of 425% for pooled non- P&C subsidiaries and 400% for P&C subsidiaries •Debt-to-capital ratio(1) of 26.3% OutlookRating (affirmed/reviewed) Agency StableA (8/22/24) AM Best Company StableA (8/29/24) Fitch Ratings NegativeA2 (7/24/24 – Life group) (4/1/24 – P&C group) Moody’s Investor Services StableA (1/30/24) Standard & Poor’s Global Inc. 477% 459% 446% 343% 386% 385% 1.65 1.58 1.77 0.00 0.50 1.00 1.50 2.00200% 300% 400% 500% 2022 2023 2024(2) Pooled non-P&C RBC Ratio P&C group RBC Ratio P&C P/S Ratio (1) As of December 31, 2024, excluding net unrealized investment gains/losses on fixed maturity securities and net reserve remeasurements attributable to discount rates* (2) Estimated
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Forward guidance 11
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Full-year 2025 core EPS guidance of $3.60 to $3.90 Core earnings of $150 million to $165 million(1) P&C L&R S&GB 12 2025 core EPS guidance assumptions •~$90M of catastrophe losses, in line with five-year historical average(2) •Total net investment income of $470-$480M(3), $370-$380M(3) on the managed portfolio •Segment earnings offset by interest expense and other corporate items of $35-$40M P&C target profitability •Auto: mid-90s CR •Property: 90 or below CRS&GB target profitability •Blended benefit ratio of 39% L&R target profitability •Long-term target for net interest spread between 220 and 230 bps •Mortality in line with actuarial assumptions Long-term profitability targets (1) After-tax (2) On an exposure-weighted basis (3) Pre-tax
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ENTERPRISE FOCUS FOR SUSTAINED PROFITABLE GROWTH 13 Hyper-focused on plan outcomes 2024: Restored P&C profitability 2025: Business positioned to deliver 10%+ ROE; focus on sustained profitable growth 2026+: Deliver sustainable double- digit ROE and support continued growth ENTERPRISE STRATEGIC PRIORITIES 1. Achieve and maintain profitability while reducing earnings volatility 2. Position Horace Mann for sustained, profitable household growth 3. Drive outsized growth in Individual Supplemental & Group Benefits 4. Optimize enterprise spend to drive growth with distinctive service Deliver sustainable double-digit ROE and support growth while maintaining disciplined capital stewardship
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About Horace Mann 14
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TODAY, AN 80-YR OLD COMPANY WITH A STRONG HISTORY OF PROFITABLE GROWTH Multiline ModelNiche MarketFinancial StrengthLongevity •Business mix balanced between segments •Ability to provide total household solutions •Provides earnings diversification •Educators have preferred risk profile •Homogeneous customer set •Serving about half of school locations(3) in our market footprint •$14.5B in assets(1) •$1.6B in net premium and contract deposits for 2024 •$1.6B market capitalization(2) •Highly rated by all four major rating agencies •1945: Founded by Educators for Educators to sell auto insurance •1961: Began offering 403(b) tax- qualified annuities •1991: Listed on NYSE (HMN) •2019: Acquired educator-centric NTA Life with 50-year history serving educators •2022: Acquired educator-centric Madison National Life with 60 years of experience (1) As of December 31, 2024 (2) Based on stock price as of January 31, 2025 (3) Includes school buildings and administration locations Proud to be the largest multiline financial services company focused on America’s educators 80 YEARS 1945-2025 Excellent financial strength “A” AM Best “A” S&P “A” Fitch “A2” Moody’s 15
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DRIVEN BY A NOBLE MISSION 16 We listen to and understand educators and those who serve our community. They are taking care of our children’s future. We believe they deserve someone to look after theirs. Mission We aspire to be the company of choice to provide financial solutions for all educators and others who serve our communities - to help them protect what they have today and prepare for a successful tomorrow. Vision We understand and solve the issues facing educators and others who serve the community, helping them achieve financial success to live better and retire happier. Value Proposition
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HORACE MANN OVERVIEW Group Benefits Individual SupplementalRetirementLifePropertyAutoProducts Distribution Channel •Group Disability •Group Life •Group Supplemental Health •Accident •Cancer •Critical Illness •Hospital •Short-term Disability •Fixed & Variable Annuities •Mutual Funds •Managed Accounts and Brokerage •Term •Whole Life •IUL •Home •Condo •Rental •Dwelling Fire •AutoProduct Details Strategic Enablement Disciplined competition; Carriers assessing changes to work environment with legislative and technology changes Rising healthcare costs and reduced coverage continue to drive importance and value of supplemental products Aging demographics and reliance on individual retirement savings will continue to drive demand for retirement solutions Market continues technology advancements to improve experience and efficiency Carriers remain focused on profitability with limited growth appetite Carriers pivoting from profit restoration to profit maintenance and growth Market Conditions 18%34%49%2024 Revenue(1) Benefits Specialist Brokers Call Ctr Digital EA 17 (1) 2024 revenues include -1% in Corporate & Other segment Roof schedules Add points of distribution Continued investment in technology Rate maintenance Launch new products
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Regular assessment of insurance protection and cost STRATEGIC EMPHASIS ON SOLUTIONS TAILORED FOR EDUCATORS AND OTHERS WHO SERVE THE COMMUNITY AT EVERY LIFE STAGE 18 Pre-career Early Career Established Career Preparing to retire Retirement Issue: Not prepared for social/economic realities Solutions: •Financial literacy •Renters/first auto Issues: •Managing student loan debt •Don’t understand finances Solutions: •Student loan guidance •Financial literacy education •Redirect savings Issues: •Protecting assets •Protecting dependents •Classroom spend Solutions: •Life insurance education •Saving for kids’ college •Redirect savings Issues: •Worried about ensuring smooth retirement •Unsure of pension Solutions: •Retirement education •Retirement modeling •Adjust risk profile Issues: •How to manage retirement income •Need to plan wealth transfer Solutions: •Post-retirement investment strategies •Estate planning Issue: Unexpected event could deplete savings Solution: Supplemental insurance products and group benefits brought to educators via worksite Ongoing discussion on financial goals throughout life stages
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19 Product: • We have built a robust set of products, relevant to our market niche • Expanded product portfolio to meet customer needs, whether they engage with Horace Mann directly or through their district Infrastructure: •We have a clear roadmap to systems modernization and a distinctive service mandate to secure “ease of doing business” and scalable infrastructure •We continue to advance our digital roadmap to support our strategic initiatives Distribution: • We have advanced our distribution model and will need to continue to evolve to remain unique and relevant • Retail distribution focused on trusted advisors working directly with customers • Worksite leverages independent distribution, including benefit consultants, that support employer needs PDI STRATEGY TO DRIVE STRONG SHAREHOLDER VALUE CREATION Focused on initiatives to drive market share expansion
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SIGNIFICANT TRANSFORMATION & GROWTH OVER THE PAST DECADE Market share has climbed to approximately 15% of K-12 educators in our current footprint with additional opportunities in adjacent markets of others who serve the community 20 Households as of end of 2018 Households after adding NTA +1M HHs Households after adding MNL 2018 Today •Business diversification expands customer reach through retail and worksite channels •Positive growth trend with more than one million total households across market footprint •Homogeneous customer set with preferred risk profile and strong policyholder retention •Poised for sustained profitable growth
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Appendix 21
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$596M COMMERCIAL MORTGAGE LOAN FUNDS Portfolio continues to produce strong cash returns; equity method of accounting requires changes in fair value to be reported in net investment income 22 3.87% 6.12% 5.36% 5.84% 6.23% 2.30% 4.69% 2.29% 5.98% 3.42% $0 $100 $200 $300 $400 $500 $600 $700 0% 1% 2% 3% 4% 5% 6% 7% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $millions % return Return $ CML Investments Inception-to-date Average Annual Return: 4.6% Key Takeaways •CML funds are held in L&R and S&GB segments; no allocation in P&C, 10% target portfolio allocation •Majority of exposure is to open-ended funds comprised of senior loans •Fund structure and diversification of managers provide access to broader markets – geography, property types, borrowers and loan type versus direct origination •YTD performance impacted by valuation adjustments largely due to higher cap rates o Average annual return of 4.6% since inception o YTD negative unrealized mark to market adjustments have reduced net investment income by ~$22M o Expect recovery for majority of unrealized loss adjustments in future periods 4.88% 5.34% 5.91% 6.11% 3.07% 4.17% 3.92% 7.80% 8.38% ($40) ($15) $10 $35 $60 0% 3% 5% 8% 10% 2016 2017 2018 2019 2020 2021 2022 2023 2024 CML NII vs. Distribution Yield (1) Analysis Unrealized G/L (2) Cash NII (3) Cash Distribution Yield (1) Annualized (2) Included in income but not in cash distributions (3) Represents cash yield less change in unrealized, excludes management fees and expenses
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COMMERCIAL MORTGAGE LOAN FUND PORTFOLIO CHARACTERISTICS(¹) Well diversified by underlying property type, geography and maturity profile 23 52% 23% 14% 6% 5%By Property Type Multi-family Office Industrial Hotel Retail & Others 20% 36%24% 12% 5% 3%By Maturity Schedule 2024 2025 2026 2027 2028 Beyond 22% 21% 18% 15% 14% 3% 3% 2% 2%By Geography West South Central South Atlantic Pacific Mid-Atlantic East North Central East South Central Mountain New England West North Central Key Takeaways •Underlying loan characteristics o 255 loans, average size of ~$49M o Average loan-to-value of 79% o Average debt service coverage ratio of 1.11x o 84% of loans are floating-rate •Loan-to-value (LTV) ratios are updated quarterly and reflect best estimate of current valuation of property collateral •Quarterly valuation adjustments have impacted LTVs but do not reflect stabilized and expected long-term valuations LTV(2)By Property Type 78%Multifamily 49%Hotel 69%Industrial 78%Retail / Other 86%Office (1) As of September 30, 2024, reporting is on a one-quarter lag (2) Four non-performing loans have been removed from the analysis
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$525M LIMITED PARTNERSHIP FUND PORTFOLIO Well diversified by strategy(1), vintage year and potential volatility of returns 24 8.40% 7.95% 1.55% 9.97% 6.21% 5.03% 7.70% 6.19% 20.27% 7.86% 4.97% 4.65% $0 $100 $200 $300 $400 $500 $600 0% 5% 10% 15% 20% 25% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $millions % return Return $ LP Investments Inception-to-date Average Annual Return: 8.7% 21% 17% 14%14% 14% 12% 5% 3% Private Credit Real Estate Equity Private Equity Corporate Mezz Infrastructure Debt Infrastructure Equity Venture Capital Real Estate Mezz LP exposure by strategy Key Takeaways •Inception-to-date performance strong o Average annual return of 8.7% o Resilient portfolio benefits from diligent manager selection, prudent diversification o Full-year 2024 returns reflect solid contributions from Infrastructure Debt, Private Credit and Corporate Mezz; detractors primarily Real Estate-related strategies •Lower-volatility, fixed income-like strategies comprise majority¹ of LP exposure o Largest allocations to Private Credit, Corporate Mezzanine and Infrastructure Debt strategies o Majority of these funds are held in L&R and S&GB segments •Prudent allocation to more equity-sensitive strategies, which comprise smaller share¹ of exposure o Largest allocation to Private Equity, Real Estate and Infrastructure Equity o No public equity exposure at this time (1) Reflects exposure on a risk-weighted basis Fund ct. 2 5 7 8 12 17 29 39 50 73 74 73
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COMMITMENT TO MAKING A POSITIVE IMPACT EXTENDS TO ALL STAKEHOLDERS 25 We are committed to doing our part to protect the environment, including a pledge to reach net-zero carbon emissions. We strive to have a significant positive social impact on America’s educational community, our employees and the communities in which we live and work. We are committed to following corporate governance best practices to ensure a financially strong company that operates ethically. Our CSR commitment is ingrained in long-term strategy and day-to-day operations For more information, please visit our Corporate Social Responsibility (CSR) site at csr.horacemann.com
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2025 SINGLE-EVENT CATASTROPHE REINSURANCE PROVIDES PML COVERAGE OF APPROXIMATELY 375+ YEARS 26 CASUALTY CLASH $5M $20M $10M 2nd LAYER CASUALTY CLASH & CONTINGENCY $10M xs $10M 1st LAYER CASUALTY CLASH & CONTINGENCY $5M xs $5M Retention50% QS Personal Umbrella Casualty (1) 2025 Reinsurance Program, based on current AIR model. Property(1) 1st LAYER $25M xs $35M 95% Placed PROPERTY CATASTROPHE $60M 2nd LAYER $35M xs $60M 95% Placed 3rd LAYER $90M xs $95M 95% Placed $185M $95M ~375+ yrs Retention $35M
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HORACE MANN AT A GLANCE 27 NYSE: HMNExchange ticker symbol $38.63(1)Share Price 41.5 millionWeighted Average Diluted Shares (for 4Q24) $1.6 billion(1)Market Capitalization $1.36Annualized Dividend Per Share 3.5%(1)Dividend Yield Per Share $37.54Adjusted Book Value Per Share (at December 31, 2024) Dowling & Partners: Julia Ferguson JMP Securities: Matt Carletti Keefe, Bruyette & Woods: Meyer Shields Piper Sandler: John Barnidge Raymond James: Wilma Burdis Analyst Coverage Brendan Dawal, Vice President, Investor Relations 217-670-8766 Rachael Luber, Assistant Vice President, Investor Relations 217-788-5163 investorrelations@horacemann.com investors.horacemann.com Contact (1) Based on stock price as of January 31, 2025