HORACE MANN EDUCATORS CORPORATION HORACE MANN EDUCATORS CORPORATION
TABLE OF CONTENTS
Page | |
Consolidated Financial Highlights | 3 |
Selected Financial Data - Five Year History | 4 |
Consolidated Statements of Operations | 5 |
Consolidated Balance Sheets | 6 |
Capital Metrics | 7 |
Property and Casualty Segment | |
Statements of Operations | 8 |
Underwriting Results and Informational Data | 9 |
Supplemental Segment and Informational Data | 10 |
Retirement Segment | |
Statements of Operations and Informational Data | 11 |
Account Value Rollforward | 12 |
Life Segment | |
Statements of Operations and Informational Data | 13 |
Corporate and Other Segment | |
Statements of Operations | 14 |
Investment Earnings Before Taxes Consolidated | 15 |
Composition of Invested Assets Consolidated | 16 |
Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures | 17 |
Reconciliation of Net Income to Core Earnings | 18 |
Reconciliation of Return on Equity | 19 |
Reconciliation of Book Value per Common Share to Book Value per Common Share, Excluding Net Unrealized Gains on Fixed Maturity Securities | 20 |
Reconciliation of Debt to Total Capitalization to Debt to Total Capitalization, Excluding Net Unrealized Gains on Fixed Maturity Securities | |
Reconciliation of Investment Yield Excluding Limited Partnership Interests | 21 |
Operating Ratios - Property and Casualty | 22-23 |
Ratings and Contact Information | 24 |
Note: The information contained in this document includes measures which are based on methodologies other than accounting principles generally accepted in the United States of America ("non-GAAP") and are marked with an asterisk (*) within this document. Reconciliations of non-GAAP measures to the closest GAAP measures are contained in the supplemental numerical pages of HMEC's quarterly earnings releases (and related SEC filings), and additional descriptions of non-GAAP measures are contained in the Glossary of Selected Terms included as an exhibit to HMEC's SEC filings.
HORACE MANN EDUCATORS CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
For Period Ended | Three Months Ended | Year Ended | ||||||||||||||||||
($ in millions, except per share data) | Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||
Premiums and contract charges earned | $ | 227.6 | $ | 233.7 | $ | 235.3 | $ | 225.4 | $ | 236.3 | $ | 930.7 | $ | 898.0 | ||||||
Net investment income | 95.5 | 101.2 | 93.7 | 80.4 | 82.3 | 357.6 | 365.1 | |||||||||||||
Net investment gains (losses) | (9.0) | 10.5 | 2.5 | 3.2 | (18.5) | (2.3) | 153.3 | |||||||||||||
Other income | 7.9 | 6.9 | 4.4 | 5.9 | 7.2 | 24.4 | 14.1 | |||||||||||||
Total revenues | $ | 322.0 | $ | 352.3 | $ | 335.9 | $ | 314.9 | $ | 307.3 | $ | 1,310.4 | $ | 1,430.5 | ||||||
Net income | $ | 39.3 | $ | 47.8 | $ | 36.5 | $ | 30.5 | $ | 18.5 | $ | 133.3 | $ | 184.4 | ||||||
Core earnings* | 46.4 | 47.5 | 34.6 | 28.0 | 33.0 | 143.1 | 92.2 | |||||||||||||
At Period End | ||||||||||||||||||||
Total assets | $ | 13,745.5 | $ | 13,471.8 | $ | 13,003.4 | $ | 12,571.7 | $ | 11,972.2 | $ | 13,471.8 | $ | 12,478.7 | ||||||
Total policy liabilities | 7,182.8 | 7,148.6 | 7,129.7 | 7,031.5 | 6,978.3 | 7,148.6 | 6,956.5 | |||||||||||||
Debt | 437.4 | 437.3 | 437.2 | 437.2 | 433.1 | 437.3 | 433.0 | |||||||||||||
Shareholders' equity | 1,692.9 | 1,790.1 | 1,715.7 | 1,639.8 | 1,477.6 | 1,790.1 | 1,567.3 | |||||||||||||
Per Share and Shares Data (in millions) | ||||||||||||||||||||
Net income per share (basic) | $ | 0.94 | $ | 1.14 | $ | 0.87 | $ | 0.73 | $ | 0.44 | $ | 3.18 | $ | 4.42 | ||||||
Core earnings per share (basic)* | 1.11 | 1.13 | 0.82 | 0.67 | 0.79 | 3.41 | 2.21 | |||||||||||||
Net income per diluted share | 0.93 | 1.13 | 0.87 | 0.73 | 0.44 | 3.17 | 4.40 | |||||||||||||
Core earnings per diluted share* | 1.10 | 1.13 | 0.82 | 0.67 | 0.78 | 3.40 | 2.20 | |||||||||||||
Weighted average common shares (basic) | 41.9 | 42.0 | 41.9 | 41.9 | 41.8 | 41.9 | 41.7 | |||||||||||||
Dilutive effect of stock equivalents | 0.2 | 0.2 | 0.2 | 0.1 | 0.2 | 0.1 | 0.2 | |||||||||||||
Weighted average diluted shares | 42.1 | 42.2 | 42.1 | 42.0 | 42.0 | 42.0 | 41.9 | |||||||||||||
Book value per share | $ | 40.83 | $ | 43.22 | $ | 41.45 | $ | 39.69 | $ | 35.80 | $ | 43.22 | $ | 38.01 | ||||||
Per share impact of net unrealized investment gains on fixed maturity securities | 5.88 | 8.84 | 7.93 | 6.76 | 3.31 | 8.84 | 5.59 | |||||||||||||
Book value per share excluding net unrealized investment gains on fixed maturity securities* | $ | 34.95 | $ | 34.38 | $ | 33.52 | $ | 32.93 | $ | 32.49 | $ | 34.38 | $ | 32.42 | ||||||
Dividends paid per share | $ | 0.31 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.15 | ||||||
Financial Ratios | ||||||||||||||||||||
Net Income ROE - LTM (1) | 9.3 % | 8.1 % | 7.4 % | 6.9 % | 11.3 % | 8.1 % | 12.5 % | |||||||||||||
Net Income ROE - Annualized | 9.0 % | 10.9 % | 8.7 % | 7.8 % | 4.9 % | 7.9 % | 12.9 % | |||||||||||||
Core ROE - LTM* | 11.2 % | 10.5 % | 9.4 % | 9.0 % | 7.6 % | 10.5 % | 7.3 % | |||||||||||||
Core ROE - Annualized* | 12.9 % | 13.5 % | 10.1 % | 8.3 % | 9.9 % | 10.4 % | 7.3 % | |||||||||||||
Debt to total capitalization excluding net unrealized investment gains on fixed maturity securities* | 23.2 % | 23.5 % | 24.0 % | 24.3 % | 24.4 % | 23.5 % | 24.5 % | |||||||||||||
Investment yield, excluding limited partnership interests, pretax - annualized* | 4.20 % | 4.25 % | 4.18 % | 4.39 % | 4.51 % | 4.33 % | 4.64 % | |||||||||||||
(1) LTM = Last twelve months. |
Page 3
HORACE MANN EDUCATORS CORPORATION
SELECTED FINANCIAL DATA - FIVE YEAR HISTORY
($ in millions, except per share data) | Year Ended December 31, | |||||||||||||
2020 | 2019 (1) | 2018 | 2017 | 2016 | ||||||||||
Consolidated Statement of Operations Data | ||||||||||||||
Premiums and contract charges earned | $ | 930.7 | $ | 898.0 | $ | 817.3 | $ | 794.7 | $ | 759.1 | ||||
Net investment income | 357.6 | 365.1 | 376.5 | 373.6 | 361.2 | |||||||||
Net income | 133.3 | 184.4 | 18.3 | 169.4 | 83.8 | |||||||||
Core earnings* | 143.1 | 92.2 | 28.4 | 72.1 | 81.5 | |||||||||
Net income ROE - Annualized | 7.9 % | 12.9 % | 1.3 % | 12.1 % | 6.6 % | |||||||||
Core ROE - Annualized* | 10.4 % | 7.3 % | 2.4 % | 6.2 % | 7.4 % | |||||||||
At Period End | ||||||||||||||
Total assets | $ | 13,471.8 | $ | 12,478.7 | $ | 11,031.9 | $ | 11,198.3 | $ | 10,576.8 | ||||
Total policy liabilities | 7,148.6 | 6,956.5 | 6,384.1 | 6,182.0 | 6,024.1 | |||||||||
Debt | 437.3 | 433.0 | 297.7 | 297.5 | 247.2 | |||||||||
Shareholders' equity | 1,790.1 | 1,567.3 | 1,290.6 | 1,501.6 | 1,294.0 | |||||||||
Per Share and Shares Data (in millions) | ||||||||||||||
Net income per share (basic) | $ | 3.18 | $ | 4.42 | $ | 0.44 | $ | 4.10 | $ | 2.04 | ||||
Core earnings per share (basic)* | 3.41 | 2.21 | 0.68 | 1.75 | 1.98 | |||||||||
Net income per diluted share | 3.17 | 4.40 | 0.44 | 4.08 | 2.02 | |||||||||
Core earnings per diluted share* | 3.40 | 2.20 | 0.68 | 1.74 | 1.97 | |||||||||
Weighted average common shares (basic) | 41.9 | 41.7 | 41.6 | 41.4 | 41.2 | |||||||||
Weighted average diluted shares | 42.0 | 41.9 | 41.9 | 41.6 | 41.5 | |||||||||
Book value per share | 43.22 | 38.01 | 31.50 | 36.88 | 32.15 | |||||||||
Book value per share excluding net unrealized investment gains on fixed maturity securities* | 34.38 | 32.42 | 29.13 | 29.51 | 27.79 | |||||||||
Dividends paid per share | $ | 1.20 | $ | 1.15 | $ | 1.14 | $ | 1.10 | $ | 1.06 | ||||
Segment Information | ||||||||||||||
Insurance premiums written and contract deposits | ||||||||||||||
Property and Casualty | $ | 635.5 | $ | 683.1 | $ | 681.5 | $ | 662.8 | $ | 634.3 | ||||
Supplemental | 130.3 | 65.7 | - | - | - | |||||||||
Retirement | 429.1 | 419.4 | 439.1 | 453.1 | 520.2 | |||||||||
Life | 110.1 | 113.2 | 114.4 | 111.2 | 108.0 | |||||||||
Total | $ | 1,305.0 | $ | 1,281.4 | $ | 1,235.0 | $ | 1,227.1 | $ | 1,262.5 | ||||
Core earnings (loss) | ||||||||||||||
Property and Casualty | $ | 76.5 | $ | 54.3 | $ | (14.3) | $ | 17.2 | $ | 25.6 | ||||
Supplemental | 43.1 | 18.0 | - | - | - | |||||||||
Retirement | 28.2 | 23.2 | 41.7 | 48.9 | 50.7 | |||||||||
Life | 10.4 | 17.6 | 18.8 | 17.3 | 16.6 | |||||||||
Corporate and Other | (15.1) | (20.9) | (17.8) | (11.3) | (11.4) | |||||||||
Total | $ | 143.1 | $ | 92.2 | $ | 28.4 | $ | 72.1 | $ | 81.5 | ||||
(1) The acquisition of NTA (Supplemental segment) closed on July 1, 2019. |
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HORACE MANN EDUCATORS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For Period Ended | Three Months Ended | Year Ended | ||||||||||||||||||
($ in millions) | Mar. 31, | Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Dec. 31, | |||||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||
Revenues | ||||||||||||||||||||
Premiums and contract charges earned | $ | 227.6 | $ | 233.7 | $ | 235.3 | $ | 225.4 | $ | 236.3 | $ | 930.7 | $ | 898.0 | ||||||
Net investment income | 95.5 | 101.2 | 93.7 | 80.4 | 82.3 | 357.6 | 365.1 | |||||||||||||
Net investment gains (losses) | (9.0) | 10.5 | 2.5 | 3.2 | (18.5) | (2.3) | 153.3 | |||||||||||||
Other income | 7.9 | 6.9 | 4.4 | 5.9 | 7.2 | 24.4 | 14.1 | |||||||||||||
Total revenues | 322.0 | 352.3 | 335.9 | 314.9 | 307.3 | 1,310.4 | 1,430.5 | |||||||||||||
Benefits, losses and expenses | ||||||||||||||||||||
Benefits, claims and settlement expenses | 134.3 | 135.8 | 151.4 | 143.0 | 138.7 | 568.9 | 585.1 | |||||||||||||
Interest credited | 50.6 | 51.3 | 51.1 | 50.7 | 51.5 | 204.6 | 212.8 | |||||||||||||
Operating expenses | 58.0 | 64.7 | 56.7 | 55.7 | 60.7 | 237.8 | 234.6 | |||||||||||||
DAC amortization expense, excluding DAC unlocking | 24.7 | 25.2 | 25.5 | 25.2 | 26.1 | 102.0 | 106.0 | |||||||||||||
DAC unlocking | (0.6) | (0.3) | (0.9) | (4.8) | 3.9 | (2.1) | 3.2 | |||||||||||||
Intangible asset amortization expense | 3.3 | 3.5 | 3.5 | 3.7 | 3.7 | 14.4 | 8.8 | |||||||||||||
Interest expense | 3.5 | 3.5 | 3.5 | 4.0 | 4.2 | 15.2 | 15.6 | |||||||||||||
Other expense - goodwill and intangible asset impairments | - | 10.0 | - | - | - | 10.0 | 28.0 | |||||||||||||
Total benefits, losses and expenses | 273.8 | 293.7 | 290.8 | 277.5 | 288.8 | 1,150.8 | 1,194.1 | |||||||||||||
Income before income taxes | 48.2 | 58.6 | 45.1 | 37.4 | 18.5 | 159.6 | 236.4 | |||||||||||||
Income tax expense | 8.9 | 10.8 | 8.6 | 6.9 | - | 26.3 | 52.0 | |||||||||||||
Net income | $ | 39.3 | $ | 47.8 | $ | 36.5 | $ | 30.5 | $ | 18.5 | $ | 133.3 | $ | 184.4 | ||||||
Other Statistics | ||||||||||||||||||||
Effective tax rate on net investment income | 20.4 % | 20.5 % | 20.5 % | 20.3 % | 20.4 % | 20.4 % | 20.3 % | |||||||||||||
Net investment income, after tax | $ | 75.9 | $ | 80.5 | $ | 74.5 | $ | 64.1 | $ | 65.5 | $ | 284.6 | $ | 290.9 | ||||||
Catastrophe losses, net of reinsurance, pretax | 11.0 | 6.1 | 34.8 | 34.7 | 8.8 | 84.4 | 52.0 | |||||||||||||
Catastrophe losses, net of reinsurance, after tax | 8.7 | 4.8 | 27.5 | 27.4 | 7.0 | 66.7 | 41.1 | |||||||||||||
Impairments on investments (1) | (3.2) | - | (1.1) | (0.5) | (3.7) | (5.3) | (1.4) | |||||||||||||
(1) Included in pretax net investment gains (losses). |
Page 5
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Horace Mann Educators Corporation published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 20:24:06 UTC.
