Horace Mann Educators Corporation · NYSE:HMN
Horace Mann Educators — Investor Day (May 2025)
83 slides from Horace Mann Educators's investor day presentation, May 13, 2025
Slide 1: 2025 Investor Day
| me | (%) Horace Mann 2025 Investor Day
Slide 2: Agenda
01 Who we are Marita Zuraitis, President & CEO 02 How we win Steve McAnena, Chief Operating Officer Steve Chauby, Chief Marketing & Distribution Officer 03 What’s to come Ryan Greenier, Chief Financial Officer 04 Closing 2
Slide 3: 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 4: Who we are
Who we are Marita Zuraitis, President & CEO 4
Slide 5: Today’s discussion
Today’s discussion Who we are How we win What’s to come • 80 years serving • Trusted partner in • Confidence in educators preferred educator risk delivering our financial segment goals • Largest multiline financial services • Highly diversified product • Profitable growth company focused on suite fo
Slide 6: Helping educators succeed in and out of the classroom
Helping educators succeed in and out of the classroom 6
Slide 7: Today, an 80-yr old highly rated, multiline educator focused company
Today, an 80-yr old highly rated, multiline educator focused company Longevity Financial Strength Niche Market Multiline Model • 1945: Founded by • $14.4B in assets(1) • Educators have preferred • Business mix balanced Educators for Educators risk profile between segments • $1.6B in net premium and
Slide 8: Robust product offering
Robust product offering We provide a full suite of financial protection offerings to serve educators Auto Managed Accounts & Brokerage Home Accident Condo Cancer Rental Critical Illness Dwelling Fire Hospital Term Life Short-term Disability Whole Life Group Disability Indexed Universal Life Group Li
Slide 9: …and, in P&C, coverage related to their profession
…and, in P&C, coverage related to their profession Our Educator Advantage Program provides educators tailored coverages and benefits with their auto and home insurance at no additional charge Auto benefits Home benefits Waived Deductible Safe and Sound New Car Theft of School Theft from Personal Pro
Slide 10: We understand issues facing educators and we solve them!
Appreciation of educators and their unique needs Credit Monitoring HMScoreTM credit monitoring, reporting and improvement solutions for educators Student Loan Solutions We understand issues Student Loan Debt burdens 50% of Teachers facing educators and Donors Choose we solve them! The average teache
Slide 11: …with significant transformation & growth over the past decade
….with significant transformation & growth over the past decade 1M+ Households • Business diversification expands Households customer reach with integrated after adding MNL omni-channel approach Households • Positive growth trend with more after adding NTA than one million total households across ma
Slide 12: Significant opportunity ahead
Significant opportunity ahead Total Educator Market* 14M Households ~1M Households (HHs) ~8M K-12 Educator HHs 12 *Total educator market includes K-12 (public/private), higher education, childcare and homeschool
Slide 13: Clear strategy to capture growth opportunity
Clear strategy to capture growth opportunity Total Accessible Market Educators we currently access HM Today 1 Improve penetration of educator 1M HH HHs we currently access through our current capabilities Educators we currently access 2 Educators we don’t currently access 2.2M HH Gain access to educ
Slide 14: Delivering strong returns to shareholders
Delivering strong returns to shareholders Diversified business delivered record core EPS(1) 2024YE UP $3.40 9.4% 97.9% 8.4% Core earnings* Core return on Solid earnings P&C Net premium per share equity* from L&R and combined and contract (EPS) (ROE) S&GB ratio charges earned Nearly double the Ex- Hu
Slide 15: Delivering strong returns to shareholders
Delivering strong returns to shareholders Sustained, profitable growth continuing into 2025 2025 Q1 +72.6% +4.9 pts Q1 PY Q1 PY UP $1.07 10.6% 89.4% 8.4% Core earnings Core return on Solid earnings P&C Net premium per share equity (2) from L&R and combined and contract (EPS) (ROE) S&GB ratio charges
Slide 16: Our leadership team
Our leadership team Industry experts with a shared vision Marita Zuraitis Ryan Greenier Steve McAnena Don Carley Stephanie Fulks Jenny Thayer President & Chief Chief Chief Operating General Counsel Chief Information Chief HR Officer Executive Officer Financial Officer Officer Officer Steve Chauby Ma
Slide 17: Macro environment
Macro environment Economy Tariffs Dept of Education GenAI K-12 educator Prudent level of Capitalize on our Enterprise-wide employment has conservatism in strong relationships application to drive historically been our loss picks; at the state and local meaningful resilient to quick response to level
Slide 18: Operating from a position of strength
It’s our time … and we are positioned for sustained, profitable growth Operating from a position of strength Strong competitive advantage to capture significant growth Confidence in delivering sustained market- leading growth and returns to shareholders 18
Slide 19: How we win
How we win Steve McAnena, Chief Operating Officer 19
Slide 20: Strong offering and distribution | Property and Casualty
Strong offering and distribution | Property and Casualty Auto Property 2024YE (Home, Condo, Rental, Dwelling Fire) Revenue $469.9M $266.6M (Earned Premium) +13.5% PY +15.1%PY NB Growth (Annualized Premium) +24.8% +43.1% Profit (Combined Ratio) 98.4% 96.4% Core Earnings $33.6M $15.4M Distribution Exc
Slide 21: Strong offering and distribution | Life & Retirement
Strong offering and distribution | Life & Retirement Life Retirement 2024YE (Fixed & Variable Annuities, Mutual Funds, (Term, Whole Life, IUL) Managed Accounts and Brokerage) Revenue $190.9M $347.5M (1% PY) +.3% PY NB Growth +11.8% +4.8% (Annualized Premium) (Assets Under Management) Return on Premi
Slide 22: Strong offering and distribution | Individual Supplemental and Group Benefits
Strong offering and distribution | Individual Supplemental and Group Benefits Individual Supplemental Group Benefits 2024YE (Accident, Cancer, Critical Illness, (Group Disability, Group Life, Hospital, Short-term Disability) Group Supplemental Health) Revenue $121.6M $118.8M(1) (Earned Premium) +1.1
Slide 23: Long-term goal
Long-term goal Be the leading financial services provider for How we win educators in the US Distinctive service to great customers How we are doing it Robust product offering Accessing schools with customer centric Diversified earnings marketing, distribution Strong & evolving distribution and prod
Slide 24: Distinctive service to great customers
Distinctive service to great customers …are loyal …prefer an 85.3% Agent Auto Retention 70% Educators 89.6% Prefer an Agent Property Retention Our customers… …are given …are choice recognized Figures excludes our Group Benefit customers 24
Slide 25: Robust product offering
Robust product offering We provide a full suite of financial protection offerings to serve educators Auto Managed Accounts & Brokerage Home Accident Condo Cancer Rental Critical Illness Dwelling Fire Hospital Term Life Short-term Disability Whole Life Group Disability Indexed Universal Life Group Li
Slide 26: Diversified product portfolio and evolving distribution
Diversified product portfolio and evolving distribution Premium 2024YE Core Earnings 2024YE by Product Portfolio by Product Portfolio Individual Supplemental & Group Benefits Individual Property & 16.5% Supplemental & Casualty Property & Group Benefits 29.6% Casualty 36.4% 48.0% Life & Retirement Li
Slide 27: Strong and evolving distribution
Strong and evolving distribution We continue to advance our marketing and distribution capabilities Advancing Exclusive Agents Whether it’s our long- Benefits Specialist standing Exclusive Agents, Benefit Specialists, Inside Performance Sales team or 3rd Party Maturity Call Center Partners… 3rd Part
Slide 28: 8M K-12 educator households
8M K-12 educator households Estimated New Business Build/Scale HM Today HM’s annual share of P&C switchers Capabilities 1M HH Based on industry • EAs (scale & productivity) shopping/switching • Acquisition marketing studies, we estimate 45K – 90K • Lead management Educators we HM should capture • Di
Slide 29: 8M K-12 educator households
8M K-12 educator households Estimated New Business Build/Scale HM Today HM’s annual share of P&C switchers Capabilities 1M HH • EAs (scale & productivity) • Acquisition marketing 45K - 90K • Lead management Educators we • Digital distribution Partnerships / Associations currently access • • 3rd part
Slide 30: Clear strategy to capture growth opportunity
Clear strategy to capture growth opportunity Total Accessible Market Estimated New Business Build/Scale HM Today HM’s annual share of P&C switchers Capabilities 1M HH • EAs (scale & productivity) • Acquisition marketing 45K - 90K • Lead management Educators we • Digital distribution Partnerships / A
Slide 31: Reflections: A multi-year perspective
Reflections: A multi-year perspective PERFORMANCE Progress Made DRIVERS Future Enhancements K-12 Educators TARGET MARKET Explore adjacent markets Gain access to remaining districts through Access to almost half of school districts EDUCATOR ACCESS company-led model Strong Agent-driven activity comple
Slide 32: How we grow
How we grow Steve Chauby, Chief Marketing & Distribution Officer 32
Slide 33: How we’re unique
How we grow We have a unique sales and marketing model that provides many advantages How we’re unique How that creates and sustains a competitive advantage How those advantages help accelerate profitable growth 33
Slide 34: Our distribution model
Our distribution model We are available when, where, and how our prospects want to engage while providing custom & complete products and services to meet their needs Where we engage How we engage Work Home Community Local Agent Call Center Digital Partnerships 30% 70% Integrated Omni-Channel of Time
Slide 35: Consumer shopping and purchasing journey
Consumer shopping and purchasing journey We provide an integrated experience across channels Data shows educators research, shop, and purchase differently based on the product and often cross between channels Auto Insurance Research Shop Digital Local Agent Call Center 35
Slide 36: Consumer shopping and purchasing journey
Consumer shopping and purchasing journey We provide an integrated experience across channels Data shows educators research, shop, and purchase differently based on the product and often cross between channels Auto Insurance Research Shop Purchase Service Digital Local Agent Call Center 36
Slide 37: Consumer shopping and purchasing journey
Consumer shopping and purchasing journey We provide an integrated experience across channels Data shows educators research, shop, and purchase differently based on the product and often cross between channels Auto Insurance Life & Retirement Research Shop Purchase Service Digital Local Agent Call Ce
Slide 38: Consumer shopping and purchasing journey
Consumer shopping and purchasing journey We provide an integrated experience across channels Data shows educators research, shop, and purchase differently based on the product and often cross between channels Auto Insurance Life & Retirement Research Shop Purchase Service Digital Local Agent Call Ce
Slide 39: Our relationships
Our relationships We have strong relationships across the education system Presence of Horace Mann Payroll % of Districts with Greater than 5% Deduction (Payroll Slot) Auto Participation Rate Horace Mann has 70% over 45,000 school 45,000+ relationships with 51% payroll deduction 27% capabilities 8%
Slide 40: Our tools and services
Our tools and services We have innovative tools and services to engage prospects in unique ways Proprietary Lead and Client Unique Value Add Services Management System Our proprietary lead and client We receive greater access to schools management tool helps us engage with and educators through a va
Slide 41: Key Horace Mann sales advantages
Key Horace Mann sales advantages Our five focused levers to accelerate growth While our sales and distribution model has many competitive advantages, our five focused levers include… Greater Market Integrated Payroll Cutting Edge Marketing Access Omni-Channel Relationships Tools Hooks Greater access
Slide 42: Growth levers
Growth levers We have multiple distribution levers to reach more educators Growth Lever Scalability Upfront Cost Lifetime Value Maturity Key Takeaway Appoint More Local Agents Increase Advertising To achieve our growth aspirations, Expand Lead Partnerships we need to pull on a variety of growth New
Slide 43: Sustained profitable growth
Sustained profitable growth Sustaining target profitability is a prerequisite for growth Growth and Profit Continuum Benefits of our Strategy High High growth but Stable growth at Consistent customer and inadequate returns target returns agent experience Growth More predictable operational needs and
Slide 44: Clear strategy to capture growth opportunity
Clear strategy to capture growth opportunity Total Accessible Market Educators we currently access HM Today 1 Improve penetration of educator 1M HH HHs we currently access through our current capabilities Educators we currently access 2 Educators we don’t currently access 2.2M HH Gain access to educ
Slide 45: Educators we currently access
Educators we currently access Improve the participation rate to increase membership Educators we currently access HM Today 1 Improve penetration of educator 1M HH HHs we currently access through our current capabilities Educators we currently access • Add more EA points of distribution 2.2M HH • Upg
Slide 46: Add points of distribution
Add points of distribution Local agents play an important role in our growth and continue to be an effective lever to pull Agent Satisfaction Score We believe we can double the number of local agents to better meet our client needs Industry Horace Mann Competitor A Competitor B Agent Tenure Z (Years
Slide 47: Our brand
Our brand We have a great brand and a mission that resonates with the public Annual Marketing Spend Brand Awareness In Millions Past, Current, and Future 20% Z 3% Past Present Future Past Present Future Brand awareness has improved in a short time with a small increase in spend and improved marketin
Slide 48: Scale lead generation
Scale lead generation Educators are choosing to shop with Horace Mann Website Visits (‘000) Online Originated Quotes Company Generated Leads +24% 340K 1,540 97,000 +21% 275K 1,100 +78% 949 866 52,800 17,300 19,000 2022 2023 2024 2025F 2022 2023 2024 2025F 2024 2025F We are driving and capturing more
Slide 49: Event marketing
Event marketing Celebrating milestone events with teachers creates enthusiasm for the brand Teacher Return from Parent-Teacher Spring State Appreciation Graduation/ Summer Back to Holiday winter break conferences break testing month End of school break school break We engage teachers with the right
Slide 50: Accelerate cross sell
Accelerate cross sell Our multi-product model creates greater opportunity for cross sell Horace Mann Book of Business Cross Sell Initiatives 3 of 4 P&C clients are cross sold, and we have plenty of opportunity across other We have a variety of online and offline lines of business cross-sell efforts
Slide 51: Grow partnerships
Grow partnerships Strategic partnerships are another way we can capture prospects in an effective way Strategic partnerships provide value through creating local access, promoting our brand, generating leads, or directly offering our products 175+ associations 10+ corporate partnerships 25+ emerging
Slide 52: Educators we do not currently access
Educators we do not currently access Expand our footprint HM Today 1M HH Educators we currently access 2 Educators we don’t currently access 2.2M HH Gain access to educator HHs where we have no EA/footprint Educators we don’t currently access 4.8M HH • Everything from the markets we currently access
Slide 53: Accelerate using company-led entry model (B2B2C)
Accelerate using company-led entry model (B2B2C) Business to business marketing provides another growth lever to pull Why utilize company-led entry model Models to enter new territories Leverages existing capabilities Company-led Local EA entry established Easier to scale 40% 40% Lower cost Customer
Slide 54: The company-led model approach
The company-led model approach Specializing roles to focus on their part of the sales process creates benefits Key Engagement Activities The B2B2C model enables us to engage more schools, create better relationships, and Servicing Building School maximize resources Relationships Activity Role Buildi
Slide 55: How does company-led B2B2C work?
How does company-led B2B2C work? The B2B2C model moves from a generalist model to a company-led specialist model, enabling us to build relationships with more schools FROM TO Activity EA Model Company-Led B2B2C Model Relationship with School Onsite Events and Workshops P&C Consultation and Fulfillme
Slide 56: Explore adjacent markets
Explore adjacent markets Expand our market in segments that resonate with our brand Explore careful expansion of adjacent markets with segments that: HM Today 1M HH Align with our mission and vision Are sizeable Educators we Are accessible via marketing and distribution currently access tactic
Slide 57: Why market expansion?
Why market expansion? While educators are here to stay, our services are valuable for additional audiences and we have greater aspiration to grow while staying true to our mission and values Education Occupation Trends HM Today 1M HH Prior 10 Years Educators we currently access ~1% growth rate 2.2M
Slide 58: Access New Markets | Evaluation
Access New Markets | Evaluation There are multiple markets to assess for expansion Market Size Alignment to Market Segment Right to Win Products/Services Sales/Distribution HHs (M) Those Who Serve Educators (Pre K – 12 + Private) 8 Higher Education 3 Home School Teachers 1 State /Local Government 17
Slide 59: Bringing it together
Bringing it together Total Accessible Market Estimated New Business Build/Scale HM Today HM’s annual share of P&C switchers Capabilities 1M HH • EAs (scale & productivity) • Acquisition marketing 45K - 90K • Lead management Educators we • Digital distribution Partnerships / Associations currently ac
Slide 60: Break
Break 60
Slide 61: What’s to come
What’s to come Ryan Greenier, Chief Financial Officer 61
Slide 62: Profitable growth accelerates shareholder value creation
What’s to come Profitable growth Operating from a position of strength accelerates shareholder value Earnings diversification of multiline business model creation Delivering strong earnings growth and ROE goals Compelling valuation with significant upside 62
Slide 63: Delivering strong returns to shareholders
Delivering strong returns to shareholders Diversified business delivered record core EPS(1) 2024YE UP $3.40 9.4% 97.9% 8.4% Core earnings* Core return on Solid earnings P&C Net premium per share equity* from L&R and combined and contract (EPS) (ROE) S&GB ratio charges earned Nearly double the Ex- Hu
Slide 64: With a solid track record and a conservative balance sheet
With a solid track record and a conservative balance sheet ~8% 17 $131 CAGR in adjusted book consecutive years of million in share repurchases value* plus accumulated dividend increases with since initial authorization in dividends in past 15 years current yield of 3.4%(1) 2011 at an average purchas
Slide 65: Delivering strong returns to shareholders
Delivering strong returns to shareholders Sustained, profitable growth continuing into 2025 2025 Q1 +72.6% +4.9 pts Q1 PY Q1 PY UP $1.07 10.6% 89.4% 8.4% Core earnings Core return on Solid earnings P&C Net premium per share equity (2) from L&R and combined and contract (EPS) (ROE) S&GB ratio charges
Slide 66: 2025 on track for…
Which accelerates shareholder value creation 2025 on track for… Strong free Record Achieve cash flow core 10%+ generation of earnings core ROE +75% (1) (2) Core earnings per share guidance of $3.85 to $4.15, reflecting each segment at target profitability 66
Slide 67: Multiline business model reduces earnings volatility
Multiline business model reduces earnings volatility Earnings Volatility over past five years *Coefficient of Variation(CoV) = Std Dev / Average • HMN volatility has declined since acquiring Personal Lines Public Comps Individual Supplemental Auto, Property & Group Benefits Life / Retirement & Prote
Slide 68: High quality, well-diversified portfolio delivered 32% increase in net investment income
High quality, well-diversified portfolio delivered 32% increase in net investment income over past 5 years Portfolio Composition(1) $6.9 billion fair value Short-term, Other 3.8% Proactive repositioning has significantly increased net Asset-backed 4.5% investment income without adding outsized risk
Slide 69: Strong top line premium and deposit growth
Future growth accelerates shareholder value creation 10%+ Earnings CAGR Core EPS $3.85 - $4.15 Strong top line Core ROE $3.40 12% - premium and 13% deposit growth 10%+ drives 10%+ increase $1.74 in earnings per share 9.4% 4.9% 2023 2024 2025 3 Year Goal 69
Slide 70: Three levers to achieving our ROE and EPS growth goals
Three levers to achieving our ROE and EPS growth goals Operating Leverage Expense Optimization Growth Initiatives 12% - 12% - 13% 13% 10%+ 10%+ ROE ROE 2025 3 Year Goal 70
Slide 71: Growth lever
Growth Expense Operating Growth lever Initiatives Optimization Leverage Accelerating top-line growth High Single Digit in all businesses Revenue Growth 3-year CAGR Industry-leading retention, strong Property & Casualty returns at target profitability Life & Retirement Consistent, steady earnings Ind
Slide 72: Expense optimization lever
Growth Expense Operating Expense optimization lever Initiatives Optimization Leverage Expense Ratio Corporate Expense Ratio Competitive expense ratio with P&C Expense Ratio opportunity to reduce further with 28.3% scale & improved operational 1% - 1.5%+ efficiencies Corporate Expense Ratio 27.2% • E
Slide 73: Operating leverage lever
Growth Expense Operating Operating leverage lever Initiatives Optimization Leverage P&C Premium to Surplus Ratio We have more than enough capital 2024YE 2.52 to support accelerated growth 1.77 • Conservatively positioned balance sheet relative to comparables HMN Comparables • Improved operating leve
Slide 74: As we execute on our growth plans…
As we execute on our growth plans… Our capital production will grow, accelerating shareholder value creation ~$150M Insurance Co to Dividend Capacity • Capital-efficient businesses: Targeting 75%+ ~$175M free cash flow conversion • Attractive dividend payout ratio: 40% Shareholder ~40% Dividends • D
Slide 75: Confident in our path forward
Confident in our path forward Share repurchases by year $Millions Announcing a $50M share $24 repurchase authorization $22 $21 • $131M of share buybacks since 2011 at $16 an average price of $29.25(1) • $7M of share repurchases done YTD 2025(1) $9 $7 $6 $5 $5 $5 • Additional $50M share repurchase $4
Slide 76: Compelling valuation with significant upside
Compelling valuation with significant upside We are confident that the investments we are making will generate above-peer top line growth due to So let us consider the following: • Our ability to leverage our niche • Sum of the parts current market focus valuation versus our • Our industry-leading r
Slide 77: Horace Mann’s public comparables
Horace Mann’s public comparables Comparable 2026 P/E Range Shared Characteristics Progressive Improved profitability Personal Lines Allstate 9.3x – 18.1x • Donegal Median: 10.3x • Multi-channel distribution Property & Casualty Hanover Average: 11.7x • Geographic footprint with regional strategies Ke
Slide 78: Implied sum of the parts valuation is ~10% to ~20% higher than where Horace Mann trades
Implied sum of the parts valuation is ~10% to ~20%, higher than where Horace Mann trades today… ~10% to ~20% $500 - $550 $1,910 - $2,110 $12.00 - $13.50 $550 - $620 $13.00 - $15.00 $46.00 - $860 - $940 $51.50 $41.71 $21.00 - $23.00 Property & Life & Supplemental & Total Value Current Casualty Retire
Slide 79: …even without considering strong outperformance relative to comparables
…even without considering strong outperformance relative to comparables Strong dividend yield Top line revenue Bottom line earnings with compelling growth ahead of per share growth payout ratio comparables ahead of comparables 3.4% High Single Digit 10+% Horace Mann Horace Mann Horace Mann 2.4% 5.6%
Slide 80: Operating from a position of strength
It’s our time … and we are positioned for sustained, profitable growth Operating from a position of strength Strong competitive advantage to capture significant growth Confidence in delivering sustained market- leading growth and returns to shareholders 80
Slide 81: Q&A
Q&A 81
Slide 82: Appendix
Appendix 82
Slide 83: Footnotes
Footnotes Page 1) As of March 31, 2025 7 2) As of May 7, 2025 14 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid 1) Excluding 2021 ($4.48 / 12.6%) which was favorably impacted by Covid 15 2) Last twelve months 22 1) Excludes premium related to runoff business 63 1) Excluding