Slide 1: First Quarter 2025 Investor Presentation
First Quarter 2025 Investor Presentation May 6, 2025 Information as of March 31, 2025, 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: First-quarter 2025 business results
First-quarter 2025 business results 3
Slide 4: First-Quarter 2025 Results: Record First-Quarter Core EPS, Strong Growth Momentum
FIRST-QUARTER 2025 RESULTS: RECORD FIRST-QUARTER CORE EPS(1), STRONG GROWTH MOMENTUM Results reflect strong P&C segment earnings, stable contributions from L&R and S&GB, and strong sales momentum $1.07 89.4% Up 10.6% 8.4% Core earnings Core return on Stable earnings Net premium P&C combined per shar
Slide 5: First-Quarter 2025 Highlights
FIRST-QUARTER 2025 HIGHLIGHTS Diversified business delivered… • P&C combined ratio of 89.4% improved 10.5 pts over prior year • Property combined ratio of 79.9%; Auto combined ratio of 95.0% Profitability • Individual Supplemental benefits ratio of 28.4% reflected continued favorable utilization tre
Slide 6: 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 17 consecutive years of $52.45 $53.31 $48.12 $48.63 $49.84 dividend increases with $44.09 current yield of 3.3%(1) $40.93 $35.73 $36.49 $30.92 $32.91 Year-t
Slide 7: P&C Segment: Strong First-Quarter Results
P&C SEGMENT: STRONG FIRST-QUARTER RESULTS First-quarter segment core earnings of $26.8 million were more than double the prior year; reflect improved underlying results, lower property frequency, and favorable prior years’ reserve development P&C Revenue P&C Profitability Net Premiums Written* ($M)
Slide 8: Life & Retirement: Below Prior Year Due to Unfavorable Benefits
LIFE & RETIREMENT: BELOW PRIOR YEAR DUE TO UNFAVORABLE BENEFITS First-quarter segment core earnings of $7.9 million below prior year primarily due to higher mortality L&R Revenue Life New Business Net Premiums Written and Contract Deposits* ($M) Life Annualized Sales ($M) Key Takeaways Key Takeaways
Slide 9: Individual Supplemental & Group Benefits: Stable Results, Strong Sales
INDIVIDUAL SUPPLEMENTAL & GROUP BENEFITS: STABLE RESULTS, STRONG INDIVIDUAL SUPPLEMENTAL SALES First-quarter segment core earnings of $14.0 million reflect higher net investment income and continued Individual Supplemental sales momentum S&GB Revenue S&GB New Business Net Premiums and Contract Charg
Slide 10: High-Quality, Well-Diversified Investment Portfolio
HIGH-QUALITY, WELL-DIVERSIFIED INVESTMENT PORTFOLIO Constructed to support insurance liabilities through various market cycles Portfolio Composition(1) $5.5 billion fixed-maturity portfolio Mortgage Loans $6.9 billion fair value Short-term 1.8% Equity 0.9% 0.6% • 74% A-rated or higher Asset-backed R
Slide 11: Financial Leverage and Other Capital Metrics Align with 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 12: Forward guidance
Forward guidance 12
Slide 13: Full-year 2025 core EPS guidance of $3.85 to $4.15
Full-year 2025 core EPS guidance of $3.85 to $4.15(1) Core earnings of $160 million to $175 million(1,2) Long-term profitability targets 2025 core EPS guidance assumptions • ~$90M of catastrophe losses, in line with five- S&GB target profitability year historical average(3) • Blended benefit ratio •
Slide 14: 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 15: About Horace Mann
About Horace Mann 15
Slide 16: Today, an 80-Yr 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 • $14.4B in assets(1) • Educators have preferred • Business mix balanced Educators to sell auto insurance risk profile between segments •
Slide 17: 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 18: 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 19: Strategic Emphasis on 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 20: 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 21: Significant Transformation & Growth Over the Past Decade
SIGNIFICANT TRANSFORMATION & GROWTH OVER THE PAST DECADE Market share has climbed to approximately 13% 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 22: Appendix
Appendix 22
Slide 23: $591M Commercial Mortgage Loan Funds
$591M 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% 7.96% • CML funds are held in L&R
Slide 24: 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% 5% Multi-family Key Takeaways Office 16% Industrial • Underlying loan characteristics 57% 17% Hotel o 252 loans, average size of ~$46M Retail &
Slide 25: $535M Limited Partnership Fund Portfolio
$535M LIMITED PARTNERSHIP FUND PORTFOLIO Well diversified by strategy(1), vintage year and potential volatility of returns LP Exposure by Strategy Key Takeaways 3% 6% Real Estate Equity • Inception-to-date performance strong 20% Private Credit 11% o Average annual return of 8.7% Private Equity Corpo
Slide 26: 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 27: 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 28: Horace Mann at a Glance
HORACE MANN AT A GLANCE Exchange ticker symbol NYSE: HMN Share Price $42.25(1) Weighted Average Diluted Shares (for 1Q25) 41.6 million Market Capitalization $1.8 billion(1) Annualized Dividend Per Share $1.40 Dividend Yield Per Share 3.3%(1) Adjusted Book Value Per Share (at March 31, 2025) $38.05 A