Slide 1: Full-year 2024 Investor Presentation
Full-year 2024 Investor Presentation February 5, 2025 Information as of December 31, 2024, unless otherwise noted
Slide 2: Safe Harbor Statement and Non-GAAP Measures
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,
Slide 3: Full-year 2024 business results
Full-year 2024 business results 3
Slide 4: Diversified business delivered record core EPS and highest core ROE since 2014
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 $3.18 97.9% Up 8.8% 8.4% Core earnings Core return on Solid earning
Slide 5: Horace Mann financial position continues to strengthen
HORACE MANN FINANCIAL POSITION CONTINUES TO STRENGTHEN 7.0% COMPOUND ANNUAL GROWTH IN ADJUSTED BOOK VALUE Plus accumulated dividends since 2010 16 consecutive years of $52.45 $48.12 $48.63 $49.84 dividend increases with $44.09 current yield of 3.5%(1) $40.93 $35.73 $36.49 $30.92 $32.91 $28.44 Target
Slide 6: P&C segment: achieved full-year underwriting profitability
P&C SEGMENT: ACHIEVED FULL-YEAR UNDERWRITING PROFITABILITY Full-year segment core earnings of $49.1 million reflect improved underlying results, favorable prior year development, and slightly lower catastrophe losses P&C Revenue P&C Profitability Net Premiums Written* ($M) Combined Ratio (%) Key Tak
Slide 7: Life & Retirement: stable results with strong life annualized sales
LIFE & RETIREMENT: STABLE RESULTS WITH STRONG LIFE ANNUALIZED SALES Full-year segment core earnings of $56.3 million below prior year primarily due to lower net interest margins L&R Revenue Life New Business Net Premiums Written and Contract Deposits* ($M) Life Annualized Sales ($M) Key Takeaways Ke
Slide 8: Supplemental & Group Benefits: core earnings up 10% over prior year
SUPPLEMENTAL & GROUP BENEFITS: CORE EARNINGS UP 10% OVER PRIOR YEAR Full-year segment core earnings of $60.4 million reflect favorable profit margins and strong Individual Supplemental sales S&GB Revenue S&GB New Business Net Premiums and Contract Charges Earned($M) Sales* ($M) $275.4 $259.8 $254.9
Slide 9: High-quality, well-diversified investment portfolio
HIGH-QUALITY, WELL-DIVERSIFIED INVESTMENT PORTFOLIO Constructed to support insurance liabilities through various market cycles Portfolio composition(1) $5.4 billion fixed-maturity portfolio Equities Short-term Mortgage Loans $6.8 billion fair value 1% 1% • 74% A-rated or higher 1% CMBS • A+ weighted
Slide 10: Financial leverage and other capital metrics align with financial strength ratings
FINANCIAL LEVERAGE AND OTHER CAPITAL METRICS ALIGN WITH LEVELS APPROPRIATE FOR CURRENT FINANCIAL STRENGTH RATINGS RBC Ratios Agency Rating Outlook (affirmed/reviewed) Key Takeaways 500% 477% 0.00 AM Best A Stable 459% More than adequate 446% • Company (8/22/24) capital to continue to 0.50 grow busin
Slide 11: Forward guidance
Forward guidance 11
Slide 12: Full-year 2025 core EPS guidance of $3.60 to $3.90
Full-year 2025 core EPS guidance of $3.60 to $3.90 Core earnings of $150 million to $165 million(1) Long-term profitability targets 2025 core EPS guidance assumptions P&C target profitability • ~$90M of catastrophe losses, in line with five-year • Auto: mid-90s CR historical average(2) S&GB target p
Slide 13: Enterprise focus for sustained profitable growth
ENTERPRISE FOCUS FOR SUSTAINED PROFITABLE GROWTH Deliver sustainable double-digit ROE and support growth while maintaining disciplined capital stewardship ENTERPRISE STRATEGIC PRIORITIES Hyper-focused on plan outcomes 1. Achieve and maintain profitability while reducing 2024: Restored P&C profitabil
Slide 14: About Horace Mann
About Horace Mann 14
Slide 15: Today, an 80-year-old company with a strong history of profitable growth
TODAY, AN 80-YR OLD COMPANY WITH A STRONG HISTORY OF PROFITABLE GROWTH Longevity Financial Strength Niche Market Multiline Model • 1945: Founded by Educators for • $14.5B in assets(1) • Educators have preferred • Business mix balanced Educators to sell auto insurance risk profile between segments •
Slide 16: Driven by a noble mission
DRIVEN BY A NOBLE MISSION Mission 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. Vision We aspire to be the company of choice to provide financial solutions for all educator
Slide 17: Horace Mann overview
HORACE MANN OVERVIEW EA Individual Products Auto Property Life Retirement Supplemental Group Benefits Benefits Specialist Distribution Channel Call Ctr Digital • Fixed & Variable • Accident • Group Disability • Home • Term Annuities • Cancer • Group Life Product • Condo Brokers • Auto • Whole Life •
Slide 18: Solutions tailored for educators at every life stage
STRATEGIC EMPHASIS ON SOLUTIONS TAILORED FOR EDUCATORS AND OTHERS WHO SERVE THE COMMUNITY AT EVERY LIFE STAGE Retirement Preparing to retire Established Career Early Issues: Career • How to manage Issues: • Worried about retirement income Issues: ensuring smooth • Need to plan wealth Pre-career • Pr
Slide 19: PDI strategy to drive strong shareholder value creation
PDI STRATEGY TO DRIVE STRONG SHAREHOLDER VALUE CREATION Focused on initiatives to drive market share expansion Product: Infrastructure: • We have built a robust set of products, relevant to our market Distribution: niche • We have a clear roadmap to systems modernization and a • Expanded product por
Slide 20: Significant transformation and growth over the past decade
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 +1M HHs Households • Business diversification expands after adding MNL
Slide 21: Appendix
Appendix 21
Slide 22: $596M commercial mortgage loan funds
$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 CML NII vs. Distribution Yield (1) Analysis Key Takeaways 8.38% 10% $60 7.80% • CML funds are held in L&R and S&
Slide 23: Commercial mortgage loan fund portfolio characteristics
COMMERCIAL MORTGAGE LOAN FUND PORTFOLIO CHARACTERISTICS(¹) Well diversified by underlying property type, geography and maturity profile By Property Type 5% 6% Multi-family Key Takeaways Office 14% Industrial • Underlying loan characteristics 52% 23% Hotel o 255 loans, average size of ~$49M Retail &
Slide 24: $525M limited partnership fund portfolio
$525M LIMITED PARTNERSHIP FUND PORTFOLIO Well diversified by strategy(1), vintage year and potential volatility of returns LP exposure by strategy Key Takeaways 3% 5% Private Credit • Inception-to-date performance strong 21% Real Estate Equity 12% o Average annual return of 8.7% Private Equity Corpo
Slide 25: Commitment to making a positive impact extends to all stakeholders
COMMITMENT TO MAKING A POSITIVE IMPACT EXTENDS TO ALL STAKEHOLDERS Our CSR commitment is ingrained in long-term strategy and day-to-day operations We strive to have a We are committed to We are committed to significant positive following corporate doing our part to protect social impact on governanc
Slide 26: 2025 single-event catastrophe reinsurance provides PML coverage
2025 SINGLE-EVENT CATASTROPHE REINSURANCE PROVIDES PML COVERAGE OF APPROXIMATELY 375+ YEARS Casualty Property(1) ~375+ yrs $20M $185M 3rd LAYER 2nd LAYER CASUALTY $90M xs $95M CLASH & CONTINGENCY 95% Placed $10M xs $10M $95M $10M 2nd LAYER $35M xs $60M 1st LAYER CASUALTY 95% Placed CLASH & CONTINGEN
Slide 27: Horace Mann at a glance
HORACE MANN AT A GLANCE Exchange ticker symbol NYSE: HMN Share Price $38.63(1) Weighted Average Diluted Shares (for 4Q24) 41.5 million Market Capitalization $1.6 billion(1) Annualized Dividend Per Share $1.36 Dividend Yield Per Share 3.5%(1) Adjusted Book Value Per Share (at December 31, 2024) $37.5