Slides
Page 1
Strengthening customer relationships, accelerating long-term profitable growth through transactions with Medical Mutual of Ohio Enhancing our employer solutions platform, expanding distribution capabilities, and broadening market reach July 21, 2026
Page 2
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. 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. Historical reconciliations to the most directly comparable GAAP measures are included in our Annual Report on Form 10-K for the year ended December 31, 2025, available on our website at investors.horacemann.com. 2
Page 3
3 Transaction summary Transaction • Horace Mann Educators Corporation (NYSE: HMN) to acquire three complementary businesses from Medical Mutual of Ohio (MMO) • Acquisitions broaden employer solutions platform, expand customer reach and distribution capabilities across: • Employee Assistance Program (ESI): Legal entity purchase • Individual Supplemental (RNIC): Legal entity purchase • Group Benefits (MMLIC): Reinsurance agreement • Together, the transactions add nearly $200 million in annual premium and revenue, serve more than one million covered lives across approximately 7,000 employer relationships, and add over 1,000 producing agents and brokers • Further diversifies earnings across high-margin, capital-efficient, low-volatility businesses and fee-based revenue Deal Value • Two separate transactions for a net purchase price of approximately $240 million • Represents approximately 10x full-year 2026E net income of businesses acquired • Adds $20-25 million of after-tax core earnings*(1) and approximately 100 basis points to core ROE* in first 12 months after closing Financing • Approximately $100-150 million of revolving credit borrowings, with the balance funded from excess capital • <30% pro forma debt-to-total capitalization ex. AOCI Approvals and Timeline • Subject to regulatory approvals and other customary closing conditions • Expect to close ESI transaction in fourth quarter of 2026 but no earlier than October 1, 2026; Expect to close RNIC purchase & MMLIC reinsurance transactions in first quarter of 2027 but no earlier than January 1, 2027 1) After-tax core earnings estimate includes transaction adjustments, i.e. foregone net investment income, financing costs and tax benefits
Page 4
4 Educator-centric foundation Mission-driven, solutions-based, focused on building long-term customer relationships Who we are How we grow Increase penetration of educator households we currently access Gain access to educator households where we have no exclusive agent / footprint Expand our market to adjacent households where our brand, products and services resonate HM Today • Largest multiline financial services company focused on America’s educators • Trusted relationships built over 80+ years • Building on our educator-centric foundation by serving customers with similar financial profiles and protection needs Educator Centric • Helping educators succeed in and out of the classroom • Deep understanding of educators and their unique needs • Serving customers through every life stage Mission Driven • Broad suite of insurance and financial solutions • Strong distribution capabilities designed to meet customers where they are • Focus on solving customer needs Solutions Based
Page 5
Expanding customer relationships and capabilities to drive long-term, profitable growth 5 Acquisitions enhance our employer solutions platform and expand market reach Building on our educator-centric foundation by expanding customer relationships, solutions, and distribution Educator-Centric Foundation Mission-oriented Solutions-based Trusted relationships Broadens solutions platform . Employee assistance program enhances employer value proposition . Scales high-margin, capital-efficient businesses with proven capabilities Scales distribution .. Expands our omnichannel distribution model with additional direct, agent and broker capabilities . Adds more than 1,000 producing agents and brokers Expands customer reach. . Accelerates growth of educator, employer, and adjacent customer relationships . Adds more than one million covered lives and more than 7,000 employer relationships
Page 6
6 28% 30% 42% % of Covered Lives by Industry Education Community- Oriented Sectors All Other 2025 Financial Highlights Revenue $19.8 million Pre-tax earnings $7.6 million Enhances our employer value proposition with differentiated employee assistance program (EAP) capabilities • Mission-driven foundation with nearly 60% of the portfolio in education and community-oriented sectors • Currently serving ~3,450 employer groups and more than 900,000 covered lives • Adds critical mental health, wellness, and workplace support services to our employer solutions platform • Educator research consistently identifies mental health support as a top workplace need • Highly recurring, predictable fee-based revenue with ~92% retention • Modern and scalable infrastructure with predominantly digital delivery
Page 7
7 2025 Financial Highlights Revenue $97.5 million Pre-tax earnings $13.1 million Expands distribution and customer reach through a scaled Individual Supplemental platform • National Individual Accident & Health carrier serving adjacent customer segments with shared economic characteristics and protection needs of our educator-centric foundation • Diversified, scalable distribution model • Traditional agent force complemented by a growing broker channel; more than 600 producing agents and brokers • High-margin, capital-efficient product portfolio with strong, consistent earnings 37% 35% 23% 5% Product Mix Hospital Indemnity Critical Illness Accident Only All Other
Page 8
8 2025 Financial Highlights Revenue $62.1 million Pre-tax earnings $5.2 million Scales Group Benefits platform through a capital-efficient transaction structure • Scaled Group Life and Disability platform focused on mid-to-large employers • Currently serving ~4,000 employer groups and more than 245,000 covered lives • Broker-led distribution model with deep relationships • Proven, stable business model with strong retention, predictable recurring revenue, and consistent underwriting performance • Horace Mann assumes the Group life and disability business through a reinsurance agreement while MMO retains the legal insurance entity 80% 11% 8% 1% Product Mix Group Term Life Group STD Group LTD Other
Page 9
Immediately accretive to core EPS and ROE 9 Accelerates progress against Investor Day targets Building on our educator-centric foundation by expanding our value proposition, customer relationships, and distribution Growth Initiatives Accelerates high quality revenue • Strong return on capital • Strengthens earnings diversification and capital generation • Maintains current dividend and share repurchase strategy • Immediate scale benefit improves operating leverage • Larger premium base optimizes expense ratio • Additional upside from integration of shared services, back-office functions • EAP enhances employer solution and competitive position • Adds high-margin businesses with strong growth profiles • Increases individual customer relationships and covered lives Capitol Optimization Enhances capital efficiency Expense Optimization Increases scale of the platform
Page 10
Greater scale supports operating leverage while increasing contribution from Individual Supplemental & Group Benefits 10 Growth Initiatives Expense Optimization Operating Leverage IS&GB 17% L&R 32% P&C 51% $1.7B IS&GB 25% L&R 29% P&C 46% $1.9B YE 2025 Pro Forma YE 2025 Total Revenue(1) IS&GB 26% L&R 25% P&C 49% $292M IS&GB ~32% L&R ~23% P&C ~45% $312 - 317M YE 2025 Pro Forma YE 2025 Pre-tax Core Earnings*(2) +11% +9% Transaction increases scale and further diversifies earnings mix toward higher-return businesses 2) Excludes $47.5 million loss in Corporate & Other segment1) Excludes $6.3 million revenue and $13.0 million net investment losses in Corporate & Other segment
Page 11
1M+ Households Today Post Transaction • Adds more than one million covered lives across employer-sponsored benefits and EAP • Adds more than 7,000 employer relationships • Expands reach into adjacent customer segments Expanded relationship platform creates more opportunities to deepen customer engagement over time 11 Growth Initiatives Expense Optimization Operating Leverage Accelerates growth of educator, employer, and adjacent customer relationships 2M+ Relationships(1) 1) Includes individual product households and Group covered lives
Page 12
Enhances capital efficiency and supports long-term operating leverage 12 Growth Initiatives Expense Optimization Operating Leverage 12 ~$165M to ~$195M ~40% 25 - 30% 30 - 35% Insurance Co Dividend Capacity Shareholder Dividends Interest & Holdco Expense Deployable Capital • Strong capital position supports disciplined growth • Greater contributions from Individual Supplemental and Group businesses and recurring fee-based employee assistance program earnings strengthens earnings diversification and our consolidated capital profile • Maintains current capital deployment strategy 434% 400% YE 2025 Pro Forma Target Comparables Non-P&C RBC Ratio 375% - 400% • Strengthened diversification lowers aggregate required capital • Additional mortality and morbidity diversification creates meaningful RBC covariance benefits across our non-P&C businesses • Covariance benefits more than offset the incremental capital required to support the Group Life and Disability reinsurance transaction • Transaction accelerates flexibility to optimize non-P&C capital levels over time
Page 13
Contact Rachael Luber Vice President, Investor Relations rachael.luber@horacemann.com investors.horacemann.com 13