Slides
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2025 Investor Day
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Who we are Marita Zuraitis, President & CEO How we win Steve McAnena, Chief Operating Officer Steve Chauby, Chief Marketing & Distribution Officer What’s to come Ryan Greenier, Chief Financial Officer Closing 01 02 03 04 2
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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, 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. 3
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Who we are Marita Zuraitis, President & CEO 4
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Who we are How we win What’s to come •80 years serving educators •Largest multiline financial services company focused on America’s educators •Strong K-12 educator household penetration with significant opportunity •Leadership team focused on educators Today’s discussion •Trusted partner in preferred educator risk segment •Highly diversified product suite for educators’ needs •Clear strategy to capture exceptional market opportunity •Confidence in delivering our financial goals •Profitable growth accelerates shareholder value creation •Compelling valuation with significant upside 5
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Helping educators succeed in and out of the classroom 6
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Today, an 80-yr old highly rated, multiline educator focused company Excellent financial strength 1945-2025 “A” AM Best “A” S&P “A” Fitch “A2” Moody’s Longevity •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 Financial Strength •$14.4B in assets(1) •$1.6B in net premium and contract deposits for 2024 •$1.7B market capitalization (2) •Highly rated by all four major rating agencies Niche Market •Educators have preferred risk profile •Homogeneous customer set •Currently serving almost half of K-12 school locations in the United States Multiline Model •Business mix balanced between segments •Ability to provide total household solutions •Provides earnings diversification Proud to be the largest multiline financial services company focused on America’s educators 7
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Robust product offering Auto Home Condo Rental Dwelling Fire Term Life Whole Life Indexed Universal Life Fixed & Variable Annuities Mutual Funds Managed Accounts & Brokerage Accident Cancer Critical Illness Hospital Short-term Disability Group Disability Group Life Group Supplemental Health We provide a full suite of financial protection offerings to serve educators 8
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Home benefits Auto benefits …and, in P&C, coverage related to their profession Our Educator Advantage Program provides educators tailored coverages and benefits with their auto and home insurance at no additional charge Merit Reducing Deductible Identity Fraud Advocacy Services Theft of School Goods or Money Theft from Your Auto Personal Property Replacement of Locks or Keys Mortgage/Rent Payment Recovery Same Occurrence Rental Car Coverage Clothing & Luggage Coverage Waived Deductible on school property Safe and Sound New Car Replacement Transportation of Students Pet Coverage Personal Property Coverage Trip Interruption Coverage 9
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Teacher Appreciation 86% of educators believe their career is meaningful & worthwhile Donors Choose The average teacher spends $1000 a year of their own money to support student learning Student Loan Solutions Student Loan Debt burdens 50% of Teachers Credit Monitoring HMScoreTM credit monitoring, reporting and improvement solutions for educators Appreciation of educators and their unique needs 10 We understand issues facing educators and we solve them! 10
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….with significant transformation & growth over the past decade Households as of end of 2018 Households after adding NTA 1M+ Households Households after adding MNL 2018 Today •Business diversification expands customer reach with integrated omni-channel approach •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 11
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Significant opportunity ahead *Total educator market includes K-12 (public/private), higher education, childcare and homeschool Total Educator Market* 14M Households ~8M K-12 Educator HHs ~1M Households (HHs) 12
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Clear strategy to capture growth opportunity Educators we currently access 2.2M HH Explore Adjacent Markets TBD HH HM Today 1M HH 1 2 3 Educators we currently access Improve penetration of educator HHs we currently access through our current capabilities Educators we don’t currently access Gain access to educator HHs where we have no local agent (EA) footprint Explore Adjacent Markets Expand our market to additional non- K-12 educator prospects where our brand, products and services resonate Total Accessible Market Educators we don’t currently access 4.8M HH 13
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Delivering strong returns to shareholders Diversified business delivered record core EPS(1) 2024YE $3.40 9.4% 97.9% UP 8.4% Core earnings* per share (EPS) P&C combined ratio Core return on equity* (ROE) Solid earnings from L&R and S&GB Net premium and contract charges earned Improved by 15.4 points over the prior year Ex- Hurricane Helene, achieved double-digit ROE Below prior year due to lower NII Strong sales results and benefit of rate actions Nearly double the prior year 14
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+4.9 pts Q1 PY +72.6% Q1 PY Delivering strong returns to shareholders Sustained, profitable growth continuing into 2025 $1.07 10.6% 89.4% UP 8.4% Core earnings per share (EPS) P&C combined ratio Core return on equity (2) (ROE) Solid earnings from L&R and S&GB Net premium and contract charges earned Improved by 10.5 points over the prior year On track to deliver full-year double- digit core ROE Life slightly below prior year due to higher mortality Strong sales results and benefit of rate actions On track to deliver record full-year core earnings (1) 2025 Q1 15
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Steve McAnena Chief Operating Officer Industry experts with a shared vision Our leadership team Marita Zuraitis President & Chief Executive Officer Don Carley General Counsel Ryan Greenier Chief Financial Officer Stephanie Fulks Chief Information Officer Jenny Thayer Chief HR Officer Vanessa Jackson Property and Casualty Jennie McGinnis Life & Retirement Steve Chauby Chief Marketing & Distribution Officer Mark Desrochers Chief Actuarial, Analytics & Strategy Officer Tyson Sanders Supplemental & Group 16
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Macro environment Dept of Education Capitalize on our strong relationships at the state and local level to continue to provide unique educator solutions GenAI Enterprise-wide application to drive meaningful efficiencies; focus on Claim, Customer Care & Underwriting Tariffs Prudent level of conservatism in our loss picks; quick response to emerging trends Economy K-12 educator employment has historically been resilient to recessionary trends 17
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It’s our time … and we are positioned for sustained, profitable growth Strong competitive advantage to capture significant growth Confidence in delivering sustained market- leading growth and returns to shareholders Operating from a position of strength 18
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How we win Steve McAnena, Chief Operating Officer 19
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2024YE $266.6M +15.1%PY $469.9M +13.5% PY Revenue (Earned Premium) +43.1%+24.8%NB Growth (Annualized Premium) 96.4%98.4%Profit (Combined Ratio) $15.4M$33.6MCore Earnings Distribution •Managing aggregation/volatility through contract & underwriting advancements •Profit maintenance (rate + non rate) •Distribution advancements •Enhance product sophisticationKey Initiatives Strong offering and distribution | Property and Casualty Auto Property (Home, Condo, Rental, Dwelling Fire) Exclusive Agents Call Center Digital 3rd Party Partnerships 20
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Strong offering and distribution | Life & Retirement 2024YE $347.5M +.3% PY $190.9M (1% PY) Revenue +4.8% (Assets Under Management)+11.8%NB Growth (Annualized Premium) Fixed Annuity Interest Spread: 172 bps Variable Annuity Fee Margin: 144 bps Return on Premium: 30.3% (Pre-tax Income/ Earned Premium)Profit Metrics $29.2M$27.1MCore Earnings Distribution •Expand points of distribution •Digital enrollment •Process simplification •Distribution advancementsKey Initiatives Life (Term, Whole Life, IUL) Retirement (Fixed & Variable Annuities, Mutual Funds, Managed Accounts and Brokerage) Exclusive Agents Call Center Digital 21
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2024YE $118.8M(1) +3.4% PY $121.6M +1.1% PY Revenue (Earned Premium) +2% Lives covered+12.6%NB Growth (Annualized Premium) 37.4%23.8%Benefits Ratio (ex Interest Credited) $21.7M$50.0MCore Earnings Distribution •Expand Brokers and geography •Introduce new products •Deployment of rating and underwriting workbench •Benefit specialist recruitment •New territory development •Straight through processing •Introduce new products Key Initiatives Strong offering and distribution | Individual Supplemental and Group Benefits Group Benefits (Group Disability, Group Life, Group Supplemental Health) Individual Supplemental (Accident, Cancer, Critical Illness, Hospital, Short-term Disability) Brokers Benefit Specialists Call Center Digital 22
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How we win Distinctive service to great customers Robust product offering Diversified earnings Strong & evolving distribution Long-term goal Be the leading financial services provider for educators in the US Accessing schools with customer centric marketing, distribution and products How we are doing it 23
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Our customers… Distinctive service to great customers …prefer an Agent 70% Educators Prefer an Agent …are given choice 85.3% Auto Retention 89.6% Property Retention …are loyal …are recognized Figures excludes our Group Benefit customers 24
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Robust product offering Auto Home Condo Rental Dwelling Fire Term Life Whole Life Indexed Universal Life Fixed & Variable Annuities Mutual Funds Managed Accounts & Brokerage Accident Cancer Critical Illness Hospital Short-term Disability Group Disability Group Life Group Supplemental Health We provide a full suite of financial protection offerings to serve educators 25
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Diversified product portfolio and evolving distribution Core Earnings 2024YE by Product Portfolio Premium 2024YE by Product Portfolio 48.0% 35.5% 16.5% Individual Supplemental & Group Benefits Life & Retirement Property & Casualty 29.6% 34.0% 36.4% Individual Supplemental & Group Benefits Life & Retirement Property & Casualty 26
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Strong and evolving distribution Performance Maturity Time in Market Well-establishedNew Building Advancing Whether it’s our long- standing Exclusive Agents, Benefit Specialists, Inside Sales team or 3rd Party Partners… Horace Mann enables educators to seamlessly engage with us when, where, and how they want We continue to advance our marketing and distribution capabilities Benefits Specialist Call Center Brokers 3rd Party Partnerships Digital Exclusive Agents 27
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8M K-12 educator households •EAs (scale & productivity) •Acquisition marketing •Lead management •Digital distribution •Partnerships / Associations •3rd party partnerships Build/Scale Capabilities Educators we currently access 2.2M HH HM Today 1M HH Estimated New Business HM’s annual share of P&C switchers 45K – 90K Based on industry shopping/switching studies, we estimate HM should capture ~2-4% of HHs 28
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8M K-12 educator households •EAs (scale & productivity) •Acquisition marketing •Lead management •Digital distribution •Partnerships / Associations •3rd party partnerships Build/Scale Capabilities •Continue to scale above •Accelerate using company-led entry model (B2B2C) Educators we currently access 2.2M HH Educators we don’t currently access 4.8M HH HM Today 1M HH Estimated New Business HM’s annual share of P&C switchers 100K – 200K 45K - 90K HM should capture ~2-4% of HHs 29
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Clear strategy to capture growth opportunity •Leverage above capabilities to enter new markets •EAs (scale & productivity) •Acquisition marketing •Lead management •Digital distribution •Partnerships / Associations •3rd party partnerships Build/Scale Capabilities •Continue to scale above •Accelerate using company-led entry model (B2B2C) Total Accessible Market Educators we currently access 2.2M HH Educators we don’t currently access 4.8M HH Explore Adjacent Markets TBD HH HM Today 1M HH Estimated New Business HM’s annual share of P&C switchers 100K - 200K TBD 45K - 90K HM should capture ~1-4% of HHs 30
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Reflections: A multi-year perspective Progress Made Future EnhancementsPERFORMANCE DRIVERS Access to almost half of school districts Gain access to remaining districts through company-led modelEDUCATOR ACCESS Strong Agent-driven activity complemented with brand awareness Scale lead generation marketing tacticsLEAD GENERATION Impactful local agent presence Optimize distribution channels for customer preferencesPOINTS OF DISTRIBUTION Breadth in individual and group products Advance sophistication to sustain profitable growthPRODUCT OFFERING K-12 Educators Explore adjacent marketsTARGET MARKET Among best-in-class earnings diversification Continue growth and reduce property volatility through contract changes, use of advanced risk tools and portfolio optimization EARNINGS VOLATILITY 31
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How we grow Steve Chauby, Chief Marketing & Distribution Officer 32
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33 How we grow How we’re unique How that creates and sustains a competitive advantage How those advantages help accelerate profitable growth We have a unique sales and marketing model that provides many advantages
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How we engage Our distribution model We are available when, where, and how our prospects want to engage while providing custom & complete products and services to meet their needs Work Home Community Where we engage 30% of Time At school access is a competitive advantage for Horace Mann 70% of Time Local Agent Call Center Digital Partnerships Clients choose how they want to engage and can cross channels with ease Integrated Omni-Channel 34
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Shop Research We provide an integrated experience across channels Consumer shopping and purchasing journey Auto Insurance Call CenterLocal AgentDigital Data shows educators research, shop, and purchase differently based on the product and often cross between channels 35
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Service Purchase Shop Research We provide an integrated experience across channels Consumer shopping and purchasing journey Auto Insurance Data shows educators research, shop, and purchase differently based on the product and often cross between channels 36 Call CenterLocal AgentDigital
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We provide an integrated experience across channels Consumer shopping and purchasing journey Data shows educators research, shop, and purchase differently based on the product and often cross between channels Life & Retirement 37 Service Purchase Shop Research Auto Insurance Call CenterLocal AgentDigital
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We provide an integrated experience across channels Consumer shopping and purchasing journey Data shows educators research, shop, and purchase differently based on the product and often cross between channels 38 Life & Retirement Service Purchase Shop Research Auto Insurance Call CenterLocal AgentDigital
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% of Districts with Greater than 5% Auto Participation Rate Presence of Horace Mann Payroll Deduction (Payroll Slot) We have strong relationships across the education system Our relationships # of School Payroll Slots 0 1 2 3+ 8% 27% 51% 70% Auto participation increases as more payroll slots are present Our relationships provide us great access to our target market 45,000+ Horace Mann has over 45,000 school relationships with payroll deduction capabilities Ease Retention Confidence 39
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Unique Value Add Services Proprietary Lead and Client Management System We have innovative tools and services to engage prospects in unique ways Our tools and services Our unique tools and services provide us more opportunity to engage educators Our proprietary lead and client management tool helps us engage with more prospects at scale with greater probability for success We receive greater access to schools and educators through a variety of unique workshops, programs, and value add services 40
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Key Horace Mann sales advantages Our five focused levers to accelerate growth Greater access to our target market at work Greater Market Access Integrated Omni-Channel Payroll Relationships Cutting Edge Tools Marketing Hooks While our sales and distribution model has many competitive advantages, our five focused levers include… Seamless flow through multiple sales channels Technical integrations with payroll systems Innovative in-house technology to reach prospects at scale Products and services to reach more prospects at a lower cost 41
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MaturityLifetime ValueUpfront CostScalabilityGrowth Lever Appoint More Local Agents Increase Advertising Expand Lead Partnerships New Channels New Products/Services More Schools (B2B) Optimize Current Levers Highly Favorable Less Favorable We have multiple distribution levers to reach more educators Growth levers 42 To achieve our growth aspirations, we need to pull on a variety of growth levers that each have their advantages and challenges Key Takeaway 42
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Sustained profitable growth Growth and Profit Continuum Benefits of our Strategy Profit Growth High Low Low High Stable growth at target returns High growth but inadequate returns Low growth at high profit Sustaining target profitability is a prerequisite for growth Consistent customer and agent experience More predictable operational needs and consistent business operations Increased investor confidence 43
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Educators we currently access 2.2M HH Educators we don’t access 4.8M HH Explore Adjacent Markets TBD HH HM Today 1M HH Clear strategy to capture growth opportunity 1 2 3 Educators we currently access Improve penetration of educator HHs we currently access through our current capabilities Educators we don’t currently access Gain access to educator HHs where we have no EA/footprint Explore Adjacent Markets Expand our market to additional non- K-12 educator prospects where our brand, products and services resonate Total Accessible Market 44
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•Add more EA points of distribution •Upgrade the EA ecosystem to increase productivity of current agents •Scale lead generation marketing tactics •Enhance digital and sales call center capabilities to capitalize on educator shopping behaviors and preferences •Harvest the value of our in-force book to sell more products to current clients •Grow partnerships to capture more prospects Educators we currently access 2.2M HH HM Today 1M HH Educators we currently access 1 Educators we currently access Improve penetration of educator HHs we currently access through our current capabilities Improve the participation rate to increase membership 45
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Z Local agents play an important role in our growth and continue to be an effective lever to pull Add points of distribution We have a great value proposition for agents and outperform the industry Horace Mann Competitor A Competitor B Industry Agent Satisfaction Score Agent Tenure (Years with Horace Mann) We believe we can double the number of local agents to better meet our client needs High 30% 23% 24% 23% <5 5-10 10-15 15+ LowModerate Local Agent Expansion Opportunity 46
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Z Brand awareness has improved in a short time with a small increase in spend and improved marketing We have a great brand and a mission that resonates with the public Our brand Annual Marketing Spend In Millions Brand Awareness Past, Current, and Future Past Present Future Past Present Future 47 3% 20%
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Company Generated Leads Online Originated Quotes Website Visits (‘000) We are driving and capturing more leads online through marketing efforts, landing page enhancements, reputational improvements, and online experience Scale lead generation 866 949 1,100 1,540 2022 2023 2024 2025F 17,300 19,000 52,800 97,000 2022 2023 2024 2025F 2024 2025F 275K 340K +21% +78% +24% Educators are choosing to shop with Horace Mann 48
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We engage teachers with the right message at the right time using event marketing Celebrating milestone events with teachers creates enthusiasm for the brand Event marketing Return from winter break Parent-Teacher conferences Spring break Holiday break Back to school Summer break Graduation/ End of school Teacher Appreciation month State testing 49
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Horace Mann Book of Business Our multi-product model creates greater opportunity for cross sell Accelerate cross sell Cross Sell Initiatives We have a variety of online and offline cross-sell efforts to increase policies per household Life events Point of sale bundling Renewal policy review Ease Incentives *Figures exclude our Group Benefits customers 29% 22%20% 12% 16% 3 of 4 P&C clients are cross sold, and we have plenty of opportunity across other lines of business Life Only Auto or Property Only Retirement Only Supplemental Only 2+ Lines of Business 50
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Strategic partnerships are another way we can capture prospects in an effective way Grow partnerships 175+ associations 10+ corporate partnerships 25+ emerging relationships Includes insurance carriers, agencies, publishers, associations, consumer goods, and more! Strategic partnerships provide value through creating local access, promoting our brand, generating leads, or directly offering our products 51
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2 Educators we don’t currently access Gain access to educator HHs where we have no EA/footprint Educators we do not currently access Expand our footprint •Everything from the markets we currently access •Utilize Company-led model (B2B2C) to enter more territories Educators we don’t currently access 4.8M HH Educators we currently access 2.2M HH HM Today 1M HH 52
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Business to business marketing provides another growth lever to pull Accelerate using company-led entry model (B2B2C) Models to enter new territories 40% 20% 40% Company-led entry Local EA placement in progress Local EA established Why utilize company-led entry model Leverages existing capabilities Lower cost Customer-centric distribution Improved success rate for new agents Easier to scale 53
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Specializing roles to focus on their part of the sales process creates benefits The company-led model approach Building School Relationships Account Executive Conducting Onsite Events & Workshops Individual Consultation & Fulfillment Servicing Building School Relationships Regional Agent or Virtual Advisor Conducting Onsite Events & Workshops Digital and Call Center Individual Consultation, Fulfillment, and Servicing Activity The B2B2C model enables us to engage more schools, create better relationships, and maximize resources Key Engagement Activities Role 54
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Local Agent Call Center/Digital Account Executive Regional Agent/Virtual Advisor FROM The B2B2C model moves from a generalist model to a company-led specialist model, enabling us to build relationships with more schools How does company-led B2B2C work? Activity L&R Consultation and Fulfillment P&C Consultation and Fulfillment Onsite Events and Workshops Relationship with School EA Model Company-Led B2B2C Model Servicing TO 55
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Expand our market in segments that resonate with our brand Explore adjacent markets Educators we currently access 2.2M HH Explore Adjacent Markets TBD HH HM Today 1M HH 3 Explore Adjacent Markets Expand our market to additional non- K-12 educator prospects where our brand, products and services resonate Explore careful expansion of adjacent markets with segments that: Align with our mission and vision Are sizeable Are accessible via marketing and distribution tactics Give Horace Mann the right to win based on products, distribution, and value proposition Educators we don’t currently access 4.8M HH 56
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While educators are here to stay, our services are valuable for additional audiences and we have greater aspiration to grow while staying true to our mission and values Why market expansion? Educators we currently access 2.2M HH Explore Adjacent Markets TBD HH HM Today 1M HH Educators we don’t currently access 4.8M HH 3 Education Occupation Trends Prior 10 Years ~1% growth rate 57
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Sales/DistributionProducts/ServicesRight to WinAlignment to Those Who Serve Market Size HHs (M)Market Segment 8Educators (Pre K – 12 + Private) 3Higher Education 1Home School Teachers 17State /Local Government 2Police and Fire 7Small Business Owners 80Alumni There are multiple markets to assess for expansion Access New Markets | Evaluation Sizing data compiled from U.S. Dept. of Education, National Center for Education Statistics; Bureau of Labor Statistics; U.S. Census Bureau *NCES Table 213.10. Staff employed in public elementary and secondary school systems, by type of assignment: Selected school years, 1949-50 through fall 2022 58
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Bringing it together •Leverage above capabilities to enter new markets •EAs (scale & productivity) •Acquisition marketing •Lead management •Digital distribution •Partnerships / Associations •3rd party partnerships Build/Scale Capabilities •Continue to scale above •Accelerate using company-led entry model (B2B2C) Total Accessible Market Educators we currently access 2.2M HH Educators we don’t currently access 4.8M HH Explore Adjacent Markets TBD HH HM Today 1M HH Estimated New Business HM’s annual share of P&C switchers 100K – 200K TBD 45K - 90K 59
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Break 60
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What’s to come Ryan Greenier, Chief Financial Officer 61
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What’s to come Operating from a position of strength Earnings diversification of multiline business model Delivering strong earnings growth and ROE goals Compelling valuation with significant upside Profitable growth accelerates shareholder value creation 62
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Delivering strong returns to shareholders Diversified business delivered record core EPS(1) 2024YE $3.40 9.4% 97.9% UP 8.4% Core earnings* per share (EPS) P&C combined ratio Core return on equity* (ROE) Solid earnings from L&R and S&GB Net premium and contract charges earned Improved by 15.4 points over the prior year Ex- Hurricane Helene, achieved double-digit ROE Below prior year due to lower NII Strong sales results and benefit of rate actions Nearly double the prior year 63
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With a solid track record and a conservative balance sheet consecutive years of dividend increases with current yield of 3.4%(1) million in share repurchases since initial authorization in 2011 at an average purchase multiple of 1.03x book value(1) $13117~8% All supported by a conservative balance sheet & investment portfolio 64 CAGR in adjusted book value* plus accumulated dividends in past 15 years
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+4.9 pts Q1 PY +72.6% Q1 PY Delivering strong returns to shareholders Sustained, profitable growth continuing into 2025 $1.07 10.6% 89.4% UP 8.4% Core earnings per share (EPS) P&C combined ratio Core return on equity (2) (ROE) Solid earnings from L&R and S&GB Net premium and contract charges earned Improved by 10.5 points over the prior year On track to deliver full-year double- digit core ROE Life slightly below prior year due to higher mortality Strong sales results and benefit of rate actions On track to deliver record full-year core earnings (1) 2025 Q1 65
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Core earnings per share guidance of $3.85 to $4.15, reflecting each segment at target profitability Which accelerates shareholder value creation Record core earnings(1) Achieve 10%+ core ROE Strong free cash flow generation of +75% (2) 2025 on track for… 66
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Multiline business model reduces earnings volatility •HMN volatility has declined since acquiring Individual Supplemental & Group Benefits businesses •Lower volatility than many personal lines public comps •Focused on further reducing P&C property volatility via portfolio optimization actions and growing non-correlated businesses more quickly Personal Lines Public Comps Auto, Property Life / Retirement & Protection Public Comps Life, Retirement, Supplemental, Group Horace Mann Total Auto, Property, Life, Retirement, Individual Supplemental, Group 40% Comparables A B D HMNE F H I Earnings Volatility over past five years *Coefficient of Variation(CoV) = Std Dev / Average J K LC G 67 73% HMN Ex IS&GB
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High quality, well-diversified portfolio delivered 32% increase in net investment income over past 5 years Proactive repositioning has significantly increased net investment income without adding outsized risk •Added prudent portfolio allocation to commercial mortgage loans and limited partnerships •Increased exposure to less liquid private assets while reducing public high-yield, bank loan and equity exposure Fixed income new money yields have exceeded average portfolio yield for 13 consecutive quarters 68 Corporates 26.2% Municipals 16.9% CLO 12.6% RMBS 9.7% Commercial Mortgage Loan Funds 8.6% Limited Partnership Interests 7.8% U.S. Treasury & Agency 5.3% CMBS 4.6% Asset-backed 4.5% Short-term, Other 3.8% Portfolio Composition(1) $6.9 billion fair value
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Future growth accelerates shareholder value creation Strong top line premium and deposit growth drives 10%+ increase in earnings per share $1.74 $3.40 2023 2024 2025 3 Year Goal 4.9% 9.4% 10%+ 12% - 13% 10%+ Earnings CAGR Core EPS Core ROE $3.85 - $4.15 6969
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Three levers to achieving our ROE and EPS growth goals ROE 2025 ROE 3 Year Goal 10%+ 12% - 13% 10%+ 12% - 13% Growth Initiatives Expense Optimization Operating Leverage 7070
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Growth lever Property & Casualty Industry-leading retention, strong returns at target profitability Accelerating top-line growth in all businesses High Single Digit Revenue Growth 3-year CAGR Individual Supplemental & Group Benefits Capital-efficient, high-margin business Life & Retirement Consistent, steady earnings 71 Growth Initiatives Expense Optimization Operating Leverage 71
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Competitive expense ratio with opportunity to reduce further with scale & improved operational efficiencies •Expense leverage: adding scale in all businesses •Focused on operational efficiency improvements •Enterprise-wide GenAI focus Expense optimization lever 28.3% ~27% 2024 3 year goal 1% - 1.5%+ Corporate Expense Ratio Growth Initiatives Expense Optimization Operating Leverage 7272 27.2% Corporate Expense Ratio P&C Expense Ratio ~25% Expense Ratio
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Operating leverage lever 446% HMN Comparables Non-P&C RBC Ratio 2024YE 375% - 400% 1.77 2.52 HMN Comparables P&C Premium to Surplus Ratio 2024YE We have more than enough capital to support accelerated growth •Conservatively positioned balance sheet relative to comparables •Improved operating leverage: Premium- to-surplus ratio (P&C) and non-P&C RBC to move closer to comparables over time •Strong capital generation with diversified and disciplined capital allocation 73 Growth Initiatives Expense Optimization Operating Leverage 73
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Our capital production will grow, accelerating shareholder value creation As we execute on our growth plans… •Capital-efficient businesses: Targeting 75%+ free cash flow conversion •Attractive dividend payout ratio: 40% •Deployable capital target of 30-35% for share repurchase, strategic inorganic transactions •Strong track record of strategic M&A ~$150M to ~$175M ~40% 25 - 30% 30 - 35% Insurance Co Dividend Capacity Shareholder Dividends Interest & Holdco Expense Deployable Capital 7474
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$2 $16 $4 $5 $22 $21 $2 $5 $2 $5 $24 $6 $9 $7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2025 Confident in our path forward Announcing a $50M share repurchase authorization •$131M of share buybacks since 2011 at an average price of $29.25(1) •$7M of share repurchases done YTD 2025(1) •Additional $50M share repurchase authorization approved by Board of Directors •$69M of remaining capacity with new authorization Share repurchases by year $Millions Well-executed opportunistic approach Average purchase multiple of 1.03x book value (1) 7575
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Compelling valuation with significant upside So let us consider the following: •Sum of the parts current valuation versus our comparables •ROE improvement •Higher earning growth opportunity versus comparables We are confident that the investments we are making will generate above-peer top line growth due to •Our ability to leverage our niche market focus •Our industry-leading retention and persistency •Our proven cross-sell abilities and market expansion 7676
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Horace Mann’s public comparables Shared Characteristics2026 P/E RangeComparable •Improved profitability •Multi-channel distribution •Geographic footprint with regional strategies 9.3x – 18.1x Median: 10.3x Average: 11.7x Progressive Allstate Donegal Hanover Kemper Personal Lines Property & Casualty •Focus on middle-income market / everyday American •Retirement solutions as core strategy •Managed portfolio of complementary life insurance products 5.5x – 8.9x Median: 8.6x Average: 7.7x Principal Corebridge CNO Diversified Life & Retirement •Emphasize accessibility and simplicity, serving demographics often overlooked by traditional group insurers •Capital-light, low-claim products •Cross-selling within a broader protection strategy 8.0x – 15.1x Median: 10.0x Average: 10.8x Aflac Unum Globe Life Primerica Protection 77
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$21.00 - $23.00 $860 - $940 Property & Casualty $13.00 - $15.00 $550 - $620 Life & Retirement $12.00 - $13.50 $500 - $550 Supplemental & Group Benefits $46.00 - $51.50 $1,910 - $2,110 Total Value $41.71 Current Market Cap(1) ~10% to ~20% 2026 Estimated Analyst Consensus (Per Segment) Earnings(2) $1.7B$190$50$65$75 2026 P/E Selected Multiple Range 9.8x10.0x – 11.0x10.0x – 11.0x Protection 8.5x – 9.5x Diversified L&R 11.5x – 12.5x Personal Lines P&C Implied sum of the parts valuation is ~10% to ~20%, higher than where Horace Mann trades today… 7878
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…even without considering strong outperformance relative to comparables 79 Strong dividend yield with compelling payout ratio Top line revenue growth ahead of comparables Bottom line earnings per share growth ahead of comparables 10+% Horace Mann 5.1% Comparables High Single Digit Horace Mann 5.6% Comparables 3.4% Horace Mann 2.4% Comparables Comparables as defined in sum of the parts analysis 79
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It’s our time … and we are positioned for sustained, profitable growth Strong competitive advantage to capture significant growth Confidence in delivering sustained market- leading growth and returns to shareholders Operating from a position of strength 80
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Q & A 81
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Appendix 82
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Footnotes 1) As of March 31, 2025 2) As of May 7, 20257 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid14 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid 2) Last twelve months15 1) Excludes premium related to runoff business22 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid63 1) As of May 7, 202564 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid 2) Last twelve months65 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid 2) Capital generated as a % of Core Earnings after tax66 1) As of March 31, 2025; excludes $139.5 million in policy loans and $13.8 million in derivatives used to hedge fixed indexed annuity and life insurance products68 1) As of May 7, 202575 1) As of May 7, 2025 2) Represents estimated analyst consensus revised for core earnings definition change; Corporate & Other expense allocated evenly to each segment 78 83 Page