Slide 1: Third Quarter 2023 Investor Supplement
Third Quarter 2023 Investor Supplement September 30, 2023 OY Horace Mann
Slide 2: Table of Contents
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 & Casualty Segment Statements of Operations 8 Auto / Property and Other Products 9 Life & Retireme
Slide 3: Consolidated Financial Highlights
Consolidated Financial Highlights ($ in millions, except per share data) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Net premiums and contract charges earned $ 266.0 $ 260.7 $ 255.9 $ 259.1 $ 257.4 $ 782.6
Slide 4: Selected Financial Data - Five Year History
Selected Financial Data - Five Year History ($ in millions, except per share data) Year Ended December 31, 2022(1) 2021 2020 2019(1) 2018 Consolidated Statement of Operations Data Net premiums and contract charges earned $ 1,027.7 $ 888.8 $ 930.7 $ 898.0 $ 817.3 Net investment income 400.9 422.5 357
Slide 5: Consolidated Statements of Operations
Consolidated Statements of Operations ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Revenues Net premiums and contract charges earned $ 266.0 $ 260.7 $ 255.9 $ 259.1 $ 257.4 $ 782.6 $ 768.6 N
Slide 6: Consolidated Balance Sheets
Consolidated Balance Sheets ($ in millions, except per share data) Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, 2023 2023 2023 2022 2022 2022 Assets Investments Fixed maturity securities, available for sale, at fair value $ 4,961.6 $ 5,211.9 $ 5,350.0 $ 5,185.0 $ 5,272.1 $ 5,688.0 Equity
Slide 7: Capital Metrics
Capital Metrics ($ in millions, except per share data) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Debt and Total Capitalization Short-term debt due under revolving credit facility(1) $ — $ 249.0 $ 249.0 $
Slide 8: Property & Casualty Segment | Statements of Operations
Property & Casualty Segment I Statements of Operations ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Underwriting Results Net premiums written* $ 188.4 $ 170.9 $ 149.1 $ 153.5 $ 166.4 $ 508.4
Slide 9: Property & Casualty Segment | Auto Products and Property
Property & Casualty Segment I Auto Products Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Auto Underwriting Results Net premiums written* $ 118.3 $ 106.7 $ 101.2 $ 98.0 $ 102.5 $ 326.2 $ 296.0 Net premiums e
Slide 10: Life & Retirement Segment | Statements of Operations
Life & Retirement Segment I Statements of Operations ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Net premiums written and contract deposits* $ 154.8 $ 141.9 $ 136.1 $ 136.8 $ 138.0 $ 432.8
Slide 11: Life & Retirement Segment | Life Insurance and Retirement Products
Life & Retirement Segment I Life Insurance Products ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Net premiums written and contract deposits* $ 29.2 $ 29.1 $ 26.9 $ 31.8 0 $ 30.0 $ 85.2 $ 83.
Slide 12: Life & Retirement Segment | Account Value Rollforward
Life & Retirement Segment I Account Value Rollforward ($ in millions) Three Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Jun. 30, 2023 2023 2023 2022 2022 2022 Fixed Account Annuities(1) Beginning balance $ 2,002.8 $ 2,012.6 $ 2,028.9 $ 2,033.2 $ 2,023.3 $ 2,012.8 Reinsurance transfer
Slide 13: Supplemental & Group Benefits | Statements of Operations
Supplemental & Group Benefits I Statements of Operations ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Revenues Net premiums and contract charges earned $ 63.5 $ 65.9 $ 65.8 $ 68.2 $ 68.2 $ 1
Slide 14: Supplemental & Group Benefits | Worksite Direct and Employer-Sponsored Products
Supplemental & Group Benefits I Worksite Direct Products ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Net premiums written and contract deposits* $ 29.9 $ 30.2 $ 30.1 $ 29.5 $ 30.3 $ 90.2 $
Slide 15: Corporate & Other Segment | Statements of Operations
Corporate & Other Segment I Statements of Operations ($ in millions, amounts are net of consolidating eliminations) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Revenues Net investment income $ (0.3) $ (0.5
Slide 16: Investment Earnings Before Taxes Consolidated
Investment Earnings Before Taxes Consolidated ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Net Investment Income Fixed maturity securities(1) Taxable $ 66.9 $ 63.3 $ 65.8 $ 60.7 $ 61.4 $ 196
Slide 17: Composition of Invested Assets Consolidated
Composition of Invested Assets Consolidated ($ in millions) September 30, June 30, March 31, December 31, September 30, June 30, 2023 2023 2023 2022 2022 2022 Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent Amount Percent (1) Fixed maturity securities, at fair value $ 4,96
Slide 18: Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures
Appendix: Reconciliations of GAAP Measures to Non-GAAP Measures The following measures are used by the Company's management to evaluate financial performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balan
Slide 19: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures ($ in millions after tax) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Reconciliation of Net Income (Loss) to Core Earnings (Loss) and Adjusted Core Ear
Slide 20: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures ($ in millions after tax) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Reconciliation of Life & Retirement Net Income to Core Earnings and Adjusted Core
Slide 21: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures ($ in millions) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Reconciliation of Return on Equity Average Shareholders' Equity Shareholders' equity $ 1,05
Slide 22: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures ($ in millions) Twelve Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, 2023 2023 2023 2022 2022 Reconciliation of Book Value per Common Share to Adjusted Book Value per Common Share and Tangible Book Value per Common Share Shareholder
Slide 23: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures ($ in millions after tax) Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Reconciliation of Investment Yield, Excluding Limited Partnership Interests Numer
Slide 24: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Operating Ratios - Property & Casualty Property & Casualty Claims and claims expense ("loss") ratio 90.8 96
Slide 25: Reconciliations of GAAP Measures to Non-GAAP Measures
Reconciliations of GAAP Measures to Non-GAAP Measures Three Months Ended Nine Months Ended Sept. 30, Jun. 30, Mar. 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, 2023 2023 2023 2022 2022 2023 2022 Operating Ratios - Property & Casualty (Cont.) Property Claims and claims expense ("loss") ratio 105.5 114.
Slide 26: Ratings and Contact Information
Ratings and Contact Information October 31, 2023 Insurance Financial Affirmed/ Address: Strength Ratings (Outlook) Debt Ratings (Outlook) Reviewed 1 Horace Mann Plaza A.M. Best Springfield, IL 62715 HMEC (parent company) N.A. bbb (stable) 8/10/2023 HMEC's Life & Retirement subsidiaries A (stable) N.