Delaware | 37-0911756 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.001 par value | HMN | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
/s/ KPMG LLP | |||||
KPMG LLP | |||||
Chicago, Illinois | |||||
Horace Mann Educators Corporation | 1 | Quarterly Report on Form 10-Q |
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Investments | Investments | Investments | ||||||||||||||||||||||||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2021, $6,049.4; 2020, $5,788.6) | $ | 6,555.0 | $ | 6,345.3 | ||||||||||||||||||||||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2021, $6,045.6; 2020, $5,788.6) | Fixed maturity securities, available for sale, at fair value (amortized cost, net 2021, $6,045.6; 2020, $5,788.6) | $ | 6,512.0 | $ | 6,345.3 | |||||||||||||||||||||||
Equity securities at fair value | Equity securities at fair value | 145.7 | 121.6 | Equity securities at fair value | 152.3 | 121.6 | ||||||||||||||||||||||
Limited partnership interests | Limited partnership interests | 585.7 | 449.0 | Limited partnership interests | 615.4 | 449.0 | ||||||||||||||||||||||
Short-term and other investments | Short-term and other investments | 301.1 | 346.3 | Short-term and other investments | 251.6 | 346.3 | ||||||||||||||||||||||
Total investments | Total investments | 7,587.5 | 7,262.2 | Total investments | 7,531.3 | 7,262.2 | ||||||||||||||||||||||
Cash | Cash | 29.4 | 22.3 | Cash | 40.2 | 22.3 | ||||||||||||||||||||||
Deferred policy acquisition costs | Deferred policy acquisition costs | 236.0 | 229.8 | Deferred policy acquisition costs | 244.7 | 229.8 | ||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,456.8 | 2,420.9 | Deposit asset on reinsurance | 2,477.9 | 2,420.9 | ||||||||||||||||||||||
Intangible assets | Intangible assets | 151.9 | 158.5 | Intangible assets | 148.7 | 158.5 | ||||||||||||||||||||||
Goodwill | Goodwill | 43.5 | 43.5 | Goodwill | 43.5 | 43.5 | ||||||||||||||||||||||
Other assets | Other assets | 428.3 | 443.2 | Other assets | 451.9 | 443.2 | ||||||||||||||||||||||
Separate Account (variable annuity) assets | Separate Account (variable annuity) assets | 3,256.7 | 2,891.4 | Separate Account (variable annuity) assets | 3,326.8 | 2,891.4 | ||||||||||||||||||||||
Total assets | Total assets | $ | 14,190.1 | $ | 13,471.8 | Total assets | $ | 14,265.0 | $ | 13,471.8 | ||||||||||||||||||
Liabilities and Shareholders' Equity | Liabilities and Shareholders' Equity | Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Policy liabilities | Policy liabilities | Policy liabilities | ||||||||||||||||||||||||||
Investment contract and policy reserves | Investment contract and policy reserves | $ | 6,526.9 | $ | 6,445.3 | Investment contract and policy reserves | $ | 6,569.0 | $ | 6,445.3 | ||||||||||||||||||
Unpaid claims and claim expenses | Unpaid claims and claim expenses | 433.6 | 438.8 | Unpaid claims and claim expenses | 440.1 | 438.8 | ||||||||||||||||||||||
Unearned premiums | Unearned premiums | 251.2 | 264.5 | Unearned premiums | 261.4 | 264.5 | ||||||||||||||||||||||
Total policy liabilities | Total policy liabilities | 7,211.7 | 7,148.6 | Total policy liabilities | 7,270.5 | 7,148.6 | ||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 1,023.1 | 751.3 | Other policyholder funds | 994.3 | 751.3 | ||||||||||||||||||||||
Other liabilities | Other liabilities | 468.5 | 453.1 | Other liabilities | 488.4 | 453.1 | ||||||||||||||||||||||
Short-term debt | Short-term debt | 135.0 | 135.0 | Short-term debt | 135.0 | 135.0 | ||||||||||||||||||||||
Long-term debt | Long-term debt | 278.5 | 302.3 | Long-term debt | 253.6 | 302.3 | ||||||||||||||||||||||
Separate Account (variable annuity) liabilities | Separate Account (variable annuity) liabilities | 3,256.7 | 2,891.4 | Separate Account (variable annuity) liabilities | 3,326.8 | 2,891.4 | ||||||||||||||||||||||
Total liabilities | Total liabilities | 12,373.5 | 11,681.7 | Total liabilities | 12,468.6 | 11,681.7 | ||||||||||||||||||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; NaN issued | 0 | 0 | ||||||||||||||||||||||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2021, 66,432,547; 2020, 66,316,797 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | Preferred stock, $0.001 par value, authorized 1,000,000 shares; none issued | — | — | |||||||||||||||||||||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2021, 66,434,551; 2020, 66,316,797 | Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2021, 66,434,551; 2020, 66,316,797 | 0.1 | 0.1 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 490.7 | 488.4 | Additional paid-in capital | 492.9 | 488.4 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 1,494.4 | 1,434.6 | Retained earnings | 1,497.5 | 1,434.6 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||
Net unrealized investment gains on fixed maturity securities | Net unrealized investment gains on fixed maturity securities | 332.2 | 366.3 | Net unrealized investment gains on fixed maturity securities | 306.9 | 366.3 | ||||||||||||||||||||||
Net funded status of benefit plans | Net funded status of benefit plans | (11.2) | (11.2) | Net funded status of benefit plans | (11.2) | (11.2) | ||||||||||||||||||||||
Treasury stock, at cost, 2021, 24,942,264 shares; 2020, 24,902,579 shares | (489.6) | (488.1) | ||||||||||||||||||||||||||
Treasury stock, at cost, 2021, 24,947,264 shares; 2020, 24,902,579 shares | Treasury stock, at cost, 2021, 24,947,264 shares; 2020, 24,902,579 shares | (489.8) | (488.1) | |||||||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 1,816.6 | 1,790.1 | Total shareholders’ equity | 1,796.4 | 1,790.1 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 14,190.1 | $ | 13,471.8 | Total liabilities and shareholders’ equity | $ | 14,265.0 | $ | 13,471.8 |
Horace Mann Educators Corporation | 2 | Quarterly Report on Form 10-Q |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Statements of Operations | Statements of Operations | Statements of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | $ | 225.8 | $ | 225.4 | $ | 453.4 | $ | 461.7 | Premiums and contract charges earned | $ | 225.4 | $ | 235.3 | $ | 678.8 | $ | 697.0 | ||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 109.2 | 80.4 | 204.7 | 162.7 | Net investment income | 103.7 | 93.7 | 308.4 | 256.4 | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 4.9 | 3.2 | (4.1) | (15.3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains | Net investment (losses) gains | (6.5) | 2.5 | (10.6) | (12.8) | |||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 7.2 | 5.9 | 15.1 | 13.1 | Other income | 7.0 | 5.6 | 22.1 | 17.5 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 347.1 | 314.9 | 669.1 | 622.2 | Total revenues | 329.6 | 337.1 | 998.7 | 958.1 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, losses and expenses | Benefits, losses and expenses | Benefits, losses and expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 147.1 | 143.0 | 281.4 | 281.7 | Benefits, claims and settlement expenses | 164.8 | 151.4 | 446.2 | 433.1 | ||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 51.2 | 50.7 | 101.8 | 102.2 | Interest credited | 51.9 | 51.1 | 153.7 | 153.3 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 60.5 | 55.7 | 118.5 | 116.4 | Operating expenses | 64.3 | 57.9 | 182.8 | 173.1 | ||||||||||||||||||||||||||||||||||||||||||
DAC unlocking and amortization expense | DAC unlocking and amortization expense | 23.5 | 20.4 | 47.6 | 50.4 | DAC unlocking and amortization expense | 22.9 | 24.6 | 70.5 | 75.0 | ||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 3.2 | 3.7 | 6.5 | 7.4 | Intangible asset amortization expense | 3.3 | 3.5 | 9.8 | 10.9 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 3.5 | 4.0 | 7.0 | 8.2 | Interest expense | 3.4 | 3.5 | 10.4 | 11.7 | ||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | Total benefits, losses and expenses | 289.0 | 277.5 | 562.8 | 566.3 | Total benefits, losses and expenses | 310.6 | 292.0 | 873.4 | 857.1 | ||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 58.1 | 37.4 | 106.3 | 55.9 | Income before income taxes | 19.0 | 45.1 | 125.3 | 101.0 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 11.4 | 6.9 | 20.3 | 6.9 | Income tax expense | 2.7 | 8.6 | 23.0 | 15.5 | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 46.7 | $ | 30.5 | $ | 86.0 | $ | 49.0 | Net income | $ | 16.3 | $ | 36.5 | $ | 102.3 | $ | 85.5 | ||||||||||||||||||||||||||||||||||
Net income per share | Net income per share | Net income per share | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | 1.11 | $ | 0.73 | $ | 2.05 | $ | 1.17 | Basic | $ | 0.39 | $ | 0.87 | $ | 2.44 | $ | 2.04 | ||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | 1.11 | $ | 0.73 | $ | 2.04 | $ | 1.17 | Diluted | $ | 0.39 | $ | 0.87 | $ | 2.43 | $ | 2.03 | ||||||||||||||||||||||||||||||||||
Weighted average number of shares and equivalent shares | Weighted average number of shares and equivalent shares | Weighted average number of shares and equivalent shares | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 42.0 | 41.9 | 42.0 | 41.9 | Basic | 42.0 | 41.9 | 42.0 | 41.9 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 42.1 | 42.0 | 42.1 | 42.0 | Diluted | 42.2 | 42.1 | 42.2 | 42.0 | ||||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive (Loss) Income | Statements of Comprehensive (Loss) Income | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 46.7 | $ | 30.5 | $ | 86.0 | $ | 49.0 | Net income | $ | 16.3 | $ | 36.5 | $ | 102.3 | $ | 85.5 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax: | Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | Change in net unrealized investment gains (losses) on fixed maturity securities | 88.6 | 142.5 | (34.1) | 48.7 | Change in net unrealized investment gains (losses) on fixed maturity securities | (25.3) | 49.1 | (59.4) | 97.8 | ||||||||||||||||||||||||||||||||||||||||||
Change in net funded status of benefit plans | Change in net funded status of benefit plans | 0 | 0 | 0 | 0 | Change in net funded status of benefit plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 88.6 | 142.5 | (34.1) | 48.7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | $ | 135.3 | $ | 173.0 | $ | 51.9 | $ | 97.7 | ||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | Other comprehensive (loss) income | (25.3) | 49.1 | (59.4) | 97.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | Comprehensive (loss) income | $ | (9.0) | $ | 85.6 | $ | 42.9 | $ | 183.3 |
Horace Mann Educators Corporation | 3 | Quarterly Report on Form 10-Q |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Common stock, $0.001 par value | Common stock, $0.001 par value | Common stock, $0.001 par value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | Beginning balance | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||||||||||||||||||||||||||||
Options exercised | Options exercised | — | — | — | — | Options exercised | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock units | Conversion of common stock units | — | — | — | — | Conversion of common stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Conversion of restricted stock units | Conversion of restricted stock units | — | — | — | — | Conversion of restricted stock units | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 0.1 | 0.1 | 0.1 | 0.1 | Ending balance | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | 489.2 | 481.9 | 488.4 | 481.0 | Beginning balance | 490.7 | 483.8 | 488.4 | 481.0 | ||||||||||||||||||||||||||||||||||||||||||
Options exercised and conversion of common stock units and restricted stock units | Options exercised and conversion of common stock units and restricted stock units | — | 0.4 | (1.2) | 0.2 | Options exercised and conversion of common stock units and restricted stock units | 0.2 | 1.3 | (1.0) | 1.6 | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | 1.5 | 1.4 | 3.5 | 2.5 | Share-based compensation expense | 2.0 | 1.7 | 5.5 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 490.7 | 483.7 | 490.7 | 483.7 | Ending balance | 492.9 | 486.8 | 492.9 | 486.8 | ||||||||||||||||||||||||||||||||||||||||||
Retained earnings | Retained earnings | Retained earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | 1,460.8 | 1,357.8 | 1,434.6 | 1,352.5 | Beginning balance | 1,494.4 | 1,375.7 | 1,434.6 | 1,352.5 | ||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 46.7 | 30.5 | 86.0 | 49.0 | Net income | 16.3 | 36.5 | 102.3 | 85.5 | ||||||||||||||||||||||||||||||||||||||||||
Dividends, 2021, $0.31, $0.62 per share; 2020, $0.30, $0.60 per share | (13.1) | (12.6) | (26.2) | (25.3) | ||||||||||||||||||||||||||||||||||||||||||||||||
Dividends, 2021, $0.31, $0.93 per share; 2020, $0.30, $0.90 per share | Dividends, 2021, $0.31, $0.93 per share; 2020, $0.30, $0.90 per share | (13.2) | (12.7) | (39.4) | (38.0) | |||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle | Cumulative effect of change in accounting principle | — | — | — | (0.5) | Cumulative effect of change in accounting principle | — | — | — | (0.5) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 1,494.4 | 1,375.7 | 1,494.4 | 1,375.7 | Ending balance | 1,497.5 | 1,399.5 | 1,497.5 | 1,399.5 | ||||||||||||||||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | 232.4 | 125.9 | 355.1 | 219.7 | Beginning balance | 321.0 | 268.4 | 355.1 | 219.7 | ||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | Change in net unrealized investment gains (losses) on fixed maturity securities | 88.6 | 142.5 | (34.1) | 48.7 | Change in net unrealized investment gains (losses) on fixed maturity securities | (25.3) | 49.1 | (59.4) | 97.8 | ||||||||||||||||||||||||||||||||||||||||||
Change in net funded status of benefit plans | Change in net funded status of benefit plans | — | — | — | — | Change in net funded status of benefit plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 321.0 | 268.4 | 321.0 | 268.4 | Ending balance | 295.7 | 317.5 | 295.7 | 317.5 | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock, at cost | Treasury stock, at cost | Treasury stock, at cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | (489.6) | (488.1) | (488.1) | (485.9) | Beginning balance | (489.6) | (488.1) | (488.1) | (485.9) | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of shares | Acquisition of shares | — | — | (1.5) | (2.2) | Acquisition of shares | (0.2) | — | (1.7) | (2.2) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | (489.6) | (488.1) | (489.6) | (488.1) | Ending balance | (489.8) | (488.1) | (489.8) | (488.1) | ||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity at end of period | Shareholders' equity at end of period | $ | 1,816.6 | $ | 1,639.8 | $ | 1,816.6 | $ | 1,639.8 | Shareholders' equity at end of period | $ | 1,796.4 | $ | 1,715.8 | $ | 1,796.4 | $ | 1,715.8 |
Horace Mann Educators Corporation | 4 | Quarterly Report on Form 10-Q |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Cash flows - operating activities | Cash flows - operating activities | Cash flows - operating activities | ||||||||||||||||||||||||||
Net income | Net income | $ | 86.0 | $ | 49.0 | Net income | $ | 102.3 | $ | 85.5 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||||||||
Net investment losses | Net investment losses | 4.1 | 15.3 | Net investment losses | 10.6 | 12.8 | ||||||||||||||||||||||
Amortization of premiums and accretion of discounts on fixed maturity securities, net | Amortization of premiums and accretion of discounts on fixed maturity securities, net | 1.7 | 2.8 | Amortization of premiums and accretion of discounts on fixed maturity securities, net | 3.3 | 4.9 | ||||||||||||||||||||||
Depreciation and intangible asset amortization | Depreciation and intangible asset amortization | 11.1 | 11.7 | Depreciation and intangible asset amortization | 16.7 | 17.5 | ||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | 3.8 | 2.8 | Share-based compensation expense | 6.0 | 4.6 | ||||||||||||||||||||||
Changes in: | Changes in: | Changes in: | ||||||||||||||||||||||||||
Accrued investment income | Accrued investment income | (3.3) | (0.5) | Accrued investment income | (8.1) | (5.5) | ||||||||||||||||||||||
Insurance liabilities | Insurance liabilities | 35.6 | 38.4 | Insurance liabilities | 75.1 | 97.9 | ||||||||||||||||||||||
Premium receivables | Premium receivables | 4.5 | 2.1 | Premium receivables | (3.4) | 4.1 | ||||||||||||||||||||||
Deferred policy acquisition costs | Deferred policy acquisition costs | 1.6 | 1.5 | Deferred policy acquisition costs | (0.1) | (2.5) | ||||||||||||||||||||||
Reinsurance recoverables | Reinsurance recoverables | (1.3) | (2.9) | Reinsurance recoverables | (1.6) | 3.3 | ||||||||||||||||||||||
Income tax liabilities | Income tax liabilities | 6.5 | 7.2 | Income tax liabilities | 2.3 | (3.4) | ||||||||||||||||||||||
Other operating assets and liabilities | Other operating assets and liabilities | (12.0) | 16.7 | Other operating assets and liabilities | 2.5 | 44.3 | ||||||||||||||||||||||
Other | Other | (21.7) | 21.5 | Other | (27.5) | 4.3 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 116.6 | 165.6 | Net cash provided by operating activities | 178.1 | 267.8 | ||||||||||||||||||||||
Cash flows - investing activities | Cash flows - investing activities | Cash flows - investing activities | ||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||
Purchases | Purchases | (872.3) | (818.2) | Purchases | (1,228.1) | (1,093.9) | ||||||||||||||||||||||
Sales | Sales | 163.8 | 294.2 | Sales | 319.2 | 352.8 | ||||||||||||||||||||||
Maturities, paydowns, calls and redemptions | Maturities, paydowns, calls and redemptions | 443.7 | 372.4 | Maturities, paydowns, calls and redemptions | 631.5 | 525.3 | ||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||
Purchases | Purchases | (36.1) | (11.8) | Purchases | (45.0) | (23.2) | ||||||||||||||||||||||
Sales and repayments | Sales and repayments | 0.7 | 12.1 | Sales and repayments | 1.0 | 12.4 | ||||||||||||||||||||||
Limited partnership interests | Limited partnership interests | Limited partnership interests | ||||||||||||||||||||||||||
Purchases | Purchases | (141.4) | (30.3) | Purchases | (202.1) | (59.9) | ||||||||||||||||||||||
Sales | Sales | 41.2 | 5.7 | Sales | 69.4 | 14.6 | ||||||||||||||||||||||
Change in short-term and other investments, net | Change in short-term and other investments, net | 57.3 | (19.1) | Change in short-term and other investments, net | 103.1 | (96.9) | ||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (343.1) | (195.0) | Net cash used in investing activities | (351.0) | (368.8) | ||||||||||||||||||||||
Cash flows - financing activities | Cash flows - financing activities | Cash flows - financing activities | ||||||||||||||||||||||||||
Dividends paid to shareholders | Dividends paid to shareholders | (25.7) | (24.8) | Dividends paid to shareholders | (38.6) | (37.2) | ||||||||||||||||||||||
FHLB borrowings | FHLB borrowings | 1.0 | 4.0 | FHLB borrowings | 1.0 | 4.0 | ||||||||||||||||||||||
Principal repayment on FHLB borrowings | Principal repayment on FHLB borrowings | (25.0) | 0 | Principal repayment on FHLB borrowings | (50.0) | — | ||||||||||||||||||||||
Acquisition of treasury stock | Acquisition of treasury stock | (1.5) | (2.2) | Acquisition of treasury stock | (1.7) | (2.2) | ||||||||||||||||||||||
Proceeds from exercise of stock options | Proceeds from exercise of stock options | 0.3 | 0.9 | Proceeds from exercise of stock options | 0.3 | 2.4 | ||||||||||||||||||||||
Withholding tax payments on RSUs tendered | Withholding tax payments on RSUs tendered | (2.0) | (1.5) | Withholding tax payments on RSUs tendered | (2.0) | (2.0) | ||||||||||||||||||||||
Annuity contracts: variable, fixed and FHLB funding agreements: | Annuity contracts: variable, fixed and FHLB funding agreements: | Annuity contracts: variable, fixed and FHLB funding agreements: | ||||||||||||||||||||||||||
Deposits | Deposits | 515.9 | 325.0 | Deposits | 833.2 | 462.2 | ||||||||||||||||||||||
Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets | Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets | (216.2) | (196.9) | Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets | (342.1) | (284.4) | ||||||||||||||||||||||
Principal repayment on FHLB funding agreements | Principal repayment on FHLB funding agreements | (204.0) | — | |||||||||||||||||||||||||
Life policy accounts: | Life policy accounts: | Life policy accounts: | ||||||||||||||||||||||||||
Deposits | Deposits | 4.4 | 4.6 | Deposits | 6.7 | 6.8 | ||||||||||||||||||||||
Withdrawals and surrenders | Withdrawals and surrenders | (2.1) | (2.1) | Withdrawals and surrenders | (3.0) | (2.9) | ||||||||||||||||||||||
Change in deposit asset on reinsurance | Change in deposit asset on reinsurance | (13.0) | (19.9) | Change in deposit asset on reinsurance | (17.2) | (14.8) | ||||||||||||||||||||||
Change in book overdrafts | Change in book overdrafts | (2.5) | (0.8) | Change in book overdrafts | 8.2 | 9.1 | ||||||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 233.6 | 86.3 | Net cash provided by financing activities | 190.8 | 141.0 | ||||||||||||||||||||||
Net increase in cash | Net increase in cash | 7.1 | 56.9 | Net increase in cash | 17.9 | 40.0 | ||||||||||||||||||||||
Cash at beginning of period | Cash at beginning of period | 22.3 | 25.5 | Cash at beginning of period | 22.3 | 25.5 | ||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 29.4 | $ | 82.4 | Cash at end of period | $ | 40.2 | $ | 65.5 |
Horace Mann Educators Corporation | 5 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 6 | Quarterly Report on Form 10-Q |
($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Fixed maturity securities | $ | 59.8 | $ | 56.4 | $ | 177.2 | $ | 174.7 | ||||||||||||||||||
Equity securities | 1.4 | 1.1 | 3.8 | 3.5 | ||||||||||||||||||||||
Limited partnership interests | 16.8 | 11.1 | 51.1 | 4.9 | ||||||||||||||||||||||
Short-term and other investments | 2.8 | 2.7 | 8.5 | 8.4 | ||||||||||||||||||||||
Investment expenses | (2.7) | (2.1) | (7.3) | (7.2) | ||||||||||||||||||||||
Net investment income - investment portfolio | 78.1 | 69.2 | 233.3 | 184.3 | ||||||||||||||||||||||
Investment income - deposit asset on reinsurance | 25.6 | 24.5 | 75.1 | 72.1 | ||||||||||||||||||||||
Total net investment income | $ | 103.7 | $ | 93.7 | $ | 308.4 | $ | 256.4 |
Horace Mann Educators Corporation | 7 | Quarterly Report on Form 10-Q |
($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Fixed maturity securities | $ | 59.4 | $ | 58.9 | $ | 117.4 | $ | 118.3 | ||||||||||||||||||
Equity securities | 1.3 | 1.2 | 2.4 | 2.4 | ||||||||||||||||||||||
Limited partnership interests | 23.0 | (3.5) | 34.3 | (6.2) | ||||||||||||||||||||||
Short-term and other investments | 2.9 | 2.8 | 5.7 | 5.7 | ||||||||||||||||||||||
Investment expenses | (2.5) | (2.9) | (4.6) | (5.1) | ||||||||||||||||||||||
Net investment income - investment portfolio | 84.1 | 56.5 | 155.2 | 115.1 | ||||||||||||||||||||||
Investment income - deposit asset on reinsurance | 25.1 | 23.9 | 49.5 | 47.6 | ||||||||||||||||||||||
Total net investment income | $ | 109.2 | $ | 80.4 | $ | 204.7 | $ | 162.7 |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | $ | 1.5 | $ | (0.7) | $ | (3.9) | $ | 0.4 | Fixed maturity securities | $ | (4.0) | $ | 2.7 | $ | (7.9) | $ | 3.1 | ||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 4.4 | 7.1 | 1.7 | (7.6) | Equity securities | (1.0) | 4.0 | 0.7 | (3.6) | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments and other | Short-term investments and other | (1.0) | (3.2) | (1.9) | (8.1) | Short-term investments and other | (1.5) | (4.2) | (3.4) | (12.3) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 4.9 | $ | 3.2 | $ | (4.1) | $ | (15.3) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains | Net investment (losses) gains | $ | (6.5) | $ | 2.5 | $ | (10.6) | $ | (12.8) |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Credit loss impairments(1) | Credit loss impairments(1) | $ | 0 | $ | 0 | $ | (1.1) | $ | 0 | Credit loss impairments(1) | $ | (6.6) | $ | — | $ | (7.7) | $ | — | ||||||||||||||||||||||||||||||||||
Intent-to-sell impairments | Intent-to-sell impairments | 0 | (0.5) | (2.1) | (4.2) | Intent-to-sell impairments | — | (1.1) | (2.1) | (5.3) | ||||||||||||||||||||||||||||||||||||||||||
Total impairments on investments recognized in net income | Total impairments on investments recognized in net income | 0 | (0.5) | (3.2) | (4.2) | Total impairments on investments recognized in net income | (6.6) | (1.1) | (9.8) | (5.3) | ||||||||||||||||||||||||||||||||||||||||||
Sales and other, net | Sales and other, net | 1.6 | 0.4 | (0.5) | 4.9 | Sales and other, net | 2.7 | 3.7 | 2.2 | 8.6 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value - equity securities | Change in fair value - equity securities | 4.3 | 6.6 | 1.5 | (7.9) | Change in fair value - equity securities | (1.1) | 2.3 | 0.4 | (5.6) | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value and losses realized on settlements - derivatives | Change in fair value and losses realized on settlements - derivatives | (1.0) | (3.3) | (1.9) | (8.1) | Change in fair value and losses realized on settlements - derivatives | (1.5) | (2.4) | (3.4) | (10.5) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 4.9 | $ | 3.2 | $ | (4.1) | $ | (15.3) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains | Net investment (losses) gains | $ | (6.5) | $ | 2.5 | $ | (10.6) | $ | (12.8) |
Horace Mann Educators Corporation | 8 | Quarterly Report on Form 10-Q |
($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Beginning balance | $ | 1.1 | $ | — | $ | — | $ | — | ||||||||||||||||||
Credit losses on fixed maturity securities for which credit losses were not previously reported | 6.6 | — | 7.7 | — | ||||||||||||||||||||||
Net (increases) decreases related to credit losses previously reported | — | — | — | — | ||||||||||||||||||||||
Reduction of credit allowances related to sales | — | — | — | — | ||||||||||||||||||||||
Write-offs | — | — | — | — | ||||||||||||||||||||||
Ending balance | $ | 7.7 | $ | — | $ | 7.7 | $ | — |
($ in millions) | ($ in millions) | Amortized Cost, net | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ($ in millions) | Amortized Cost, net | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations:(1) | U.S. Government and federally sponsored agency obligations:(1) | U.S. Government and federally sponsored agency obligations:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 610.8 | $ | 68.0 | $ | 0.5 | $ | 678.3 | Mortgage-backed securities | $ | 636.2 | $ | 58.3 | $ | 1.0 | $ | 693.5 | ||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 430.5 | 31.0 | 5.3 | 456.2 | Other, including U.S. Treasury securities | 385.7 | 28.8 | 5.6 | 408.9 | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,598.6 | 200.9 | 0.4 | 1,799.1 | Municipal bonds | 1,592.5 | 184.1 | 1.1 | 1,775.5 | ||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 40.2 | 4.2 | 0 | 44.4 | Foreign government bonds | 40.2 | 3.8 | — | 44.0 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,211.3 | 202.5 | 5.0 | 2,408.8 | Corporate bonds | 2,268.8 | 189.4 | 6.6 | 2,451.6 | ||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,158.0 | 22.7 | 12.5 | 1,168.2 | Other asset-backed securities | 1,122.2 | 21.1 | 4.8 | 1,138.5 | ||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 6,049.4 | $ | 529.3 | $ | 23.7 | $ | 6,555.0 | Totals | $ | 6,045.6 | $ | 485.5 | $ | 19.1 | $ | 6,512.0 | ||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations:(1) | U.S. Government and federally sponsored agency obligations:(1) | U.S. Government and federally sponsored agency obligations:(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 605.5 | $ | 79.6 | $ | 0.3 | $ | 684.8 | Mortgage-backed securities | $ | 605.5 | $ | 79.6 | $ | 0.3 | $ | 684.8 | ||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 395.0 | 39.2 | 1.0 | 433.2 | Other, including U.S. Treasury securities | 395.0 | 39.2 | 1.0 | 433.2 | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,612.3 | 215.7 | 0.5 | 1,827.5 | Municipal bonds | 1,612.3 | 215.7 | 0.5 | 1,827.5 | ||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 40.2 | 4.9 | 0 | 45.1 | Foreign government bonds | 40.2 | 4.9 | — | 45.1 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 1,905.2 | 221.6 | 3.9 | 2,122.9 | Corporate bonds | 1,905.2 | 221.6 | 3.9 | 2,122.9 | ||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,230.4 | 24.1 | 22.7 | 1,231.8 | Other asset-backed securities | 1,230.4 | 24.1 | 22.7 | 1,231.8 | ||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 5,788.6 | $ | 585.1 | $ | 28.4 | $ | 6,345.3 | Totals | $ | 5,788.6 | $ | 585.1 | $ | 28.4 | $ | 6,345.3 |
Horace Mann Educators Corporation | 9 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | 12 Months or Less | More than 12 Months | Total | ($ in millions) | 12 Months or Less | More than 12 Months | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 13.9 | $ | 0.3 | $ | 3.0 | $ | 0.2 | $ | 16.9 | $ | 0.5 | Mortgage-backed securities | $ | 69.5 | $ | 0.9 | $ | 2.1 | $ | 0.1 | $ | 71.6 | $ | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 113.2 | 5.3 | 0 | 0 | 113.2 | 5.3 | Other | 106.1 | 4.4 | 15.0 | 1.2 | 121.1 | 5.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 24.0 | 0.3 | 0.7 | 0.1 | 24.7 | 0.4 | Municipal bonds | 52.2 | 1.0 | 1.4 | 0.1 | 53.6 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 0 | 0 | 0 | 0 | 0 | 0 | Foreign government bonds | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 142.3 | 3.8 | 38.8 | 1.2 | 181.1 | 5.0 | Corporate bonds | 214.1 | 5.3 | 36.1 | 1.3 | 250.2 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 136.0 | 1.0 | 262.8 | 11.5 | 398.8 | 12.5 | Other asset-backed securities | 187.6 | 1.1 | 205.4 | 3.7 | 393.0 | 4.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 429.4 | $ | 10.7 | $ | 305.3 | $ | 13.0 | $ | 734.7 | $ | 23.7 | Total | $ | 629.5 | $ | 12.7 | $ | 260.0 | $ | 6.4 | $ | 889.5 | $ | 19.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of positions with a gross unrealized loss | Number of positions with a gross unrealized loss | 267 | 154 | 421 | Number of positions with a gross unrealized loss | 401 | 129 | 530 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value as a percentage of total fixed maturity securities at fair value | Fair value as a percentage of total fixed maturity securities at fair value | 6.5 | % | 4.7 | % | 11.2 | % | Fair value as a percentage of total fixed maturity securities at fair value | 9.7 | % | 4.0 | % | 13.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 4.9 | $ | 0.1 | $ | 2.6 | $ | 0.2 | $ | 7.5 | $ | 0.3 | Mortgage-backed securities | $ | 4.9 | $ | 0.1 | $ | 2.6 | $ | 0.2 | $ | 7.5 | $ | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 95.9 | 1.0 | 0 | 0 | 95.9 | 1.0 | Other | 95.9 | 1.0 | — | — | 95.9 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 18.1 | 0.5 | 0 | 0 | 18.1 | 0.5 | Municipal bonds | 18.1 | 0.5 | — | — | 18.1 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 0 | 0 | 0 | 0 | 0 | 0 | Foreign government bonds | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 126.6 | 3.7 | 10.9 | 0.2 | 137.5 | 3.9 | Corporate bonds | 126.6 | 3.7 | 10.9 | 0.2 | 137.5 | 3.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 316.9 | 17.2 | 409.3 | 5.5 | 726.2 | 22.7 | Other asset-backed securities | 316.9 | 17.2 | 409.3 | 5.5 | 726.2 | 22.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 562.4 | $ | 22.5 | $ | 422.8 | $ | 5.9 | $ | 985.2 | $ | 28.4 | Total | $ | 562.4 | $ | 22.5 | $ | 422.8 | $ | 5.9 | $ | 985.2 | $ | 28.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of positions with a gross unrealized loss | Number of positions with a gross unrealized loss | 308 | 123 | 431 | Number of positions with a gross unrealized loss | 308 | 123 | 431 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value as a percentage of total fixed maturity securities at fair value | Fair value as a percentage of total fixed maturity securities at fair value | 8.9 | % | 6.7 | % | 15.6 | % | Fair value as a percentage of total fixed maturity securities at fair value | 8.9 | % | 6.7 | % | 15.6 | % |
Horace Mann Educators Corporation | 10 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Percent of Total Fair Value | June 30, 2021 | ($ in millions) | Percent of Total Fair Value | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | Fair Value | Amortized Cost, net | September 30, 2021 | December 31, 2020 | Fair Value | Amortized Cost, net | |||||||||||||||||||||||||||||||||||||||||||||
Estimated expected maturity: | Estimated expected maturity: | Estimated expected maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Due in 1 year or less | Due in 1 year or less | 3.9 | % | 4.0 | % | $ | 254.9 | $ | 247.8 | Due in 1 year or less | 4.0 | % | 4.0 | % | $ | 260.5 | $ | 253.7 | ||||||||||||||||||||||||||||||||||
Due after 1 year through 5 years | Due after 1 year through 5 years | 26.6 | % | 28.3 | % | 1,745.1 | 1,655.2 | Due after 1 year through 5 years | 26.2 | % | 28.3 | % | 1,703.6 | 1,620.1 | ||||||||||||||||||||||||||||||||||||||
Due after 5 years through 10 years | Due after 5 years through 10 years | 28.4 | % | 28.0 | % | 1,861.9 | 1,702.2 | Due after 5 years through 10 years | 28.1 | % | 28.0 | % | 1,830.4 | 1,685.7 | ||||||||||||||||||||||||||||||||||||||
Due after 10 years through 20 years | Due after 10 years through 20 years | 24.3 | % | 24.6 | % | 1,595.1 | 1,433.7 | Due after 10 years through 20 years | 23.9 | % | 24.6 | % | 1,559.5 | 1,411.2 | ||||||||||||||||||||||||||||||||||||||
Due after 20 years | Due after 20 years | 16.8 | % | 15.1 | % | 1,098.0 | 1,010.5 | Due after 20 years | 17.8 | % | 15.1 | % | 1,158.0 | 1,074.9 | ||||||||||||||||||||||||||||||||||||||
Total | Total | 100.0 | % | 100.0 | % | $ | 6,555.0 | $ | 6,049.4 | Total | 100.0 | % | 100.0 | % | $ | 6,512.0 | $ | 6,045.6 | ||||||||||||||||||||||||||||||||||
Average option-adjusted duration, in years | Average option-adjusted duration, in years | 6.8 | 6.4 | Average option-adjusted duration, in years | 6.8 | 6.4 |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds received | Proceeds received | $ | 68.3 | $ | 196.0 | $ | 163.8 | $ | 294.2 | Proceeds received | $ | 155.4 | $ | 58.6 | $ | 319.2 | $ | 352.8 | ||||||||||||||||||||||||||||||||||
Gross gains realized | Gross gains realized | 1.7 | 5.5 | 3.0 | 10.3 | Gross gains realized | 3.2 | 3.7 | 6.2 | 14.0 | ||||||||||||||||||||||||||||||||||||||||||
Gross losses realized | Gross losses realized | (0.2) | (5.6) | (3.6) | (5.9) | Gross losses realized | (0.7) | — | (4.3) | (5.9) | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds received | Proceeds received | $ | 0.3 | $ | 10.6 | $ | 0.7 | $ | 12.1 | Proceeds received | $ | 0.3 | $ | 0.3 | $ | 1.0 | $ | 12.4 | ||||||||||||||||||||||||||||||||||
Gross gains realized | Gross gains realized | 0.1 | 1.7 | 0.2 | 2.0 | Gross gains realized | 0.1 | 0.1 | 0.3 | 2.1 | ||||||||||||||||||||||||||||||||||||||||||
Gross losses realized | Gross losses realized | 0 | (1.2) | 0 | (1.8) | Gross losses realized | — | — | — | (1.8) |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | Net unrealized investment gains (losses) on fixed maturity securities, net of tax | Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning of period | Beginning of period | $ | 287.2 | $ | 149.9 | $ | 439.8 | $ | 264.4 | Beginning of period | $ | 399.4 | $ | 329.9 | $ | 439.8 | $ | 264.4 | ||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | Change in net unrealized investment gains (losses) on fixed maturity securities | 116.9 | 174.9 | (42.1) | 71.2 | Change in net unrealized investment gains (losses) on fixed maturity securities | (34.9) | 56.9 | (77.0) | 128.1 | ||||||||||||||||||||||||||||||||||||||||||
Reclassification of net investment (gains) losses on securities to net income | (4.7) | 5.1 | 1.7 | (5.7) | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of net investment (gains) losses on fixed maturity securities to net income | Reclassification of net investment (gains) losses on fixed maturity securities to net income | 3.9 | 5.2 | 5.6 | (0.5) | |||||||||||||||||||||||||||||||||||||||||||||||
End of period | End of period | $ | 399.4 | $ | 329.9 | $ | 399.4 | $ | 329.9 | End of period | $ | 368.4 | $ | 392.0 | $ | 368.4 | $ | 392.0 |
Horace Mann Educators Corporation | 11 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Senior commercial mortgage loan funds | Senior commercial mortgage loan funds | $ | 254.8 | $ | 149.6 | Senior commercial mortgage loan funds | $ | 265.8 | $ | 149.6 | ||||||||||||||||||
Hedge funds | 50.7 | 63.2 | ||||||||||||||||||||||||||
Infrastructure debt funds | Infrastructure debt funds | 58.1 | 58.3 | Infrastructure debt funds | 62.7 | 58.3 | ||||||||||||||||||||||
Infrastructure equity funds | Infrastructure equity funds | 57.3 | 52.1 | Infrastructure equity funds | 59.1 | 52.1 | ||||||||||||||||||||||
Hedge funds | Hedge funds | 51.1 | 63.2 | |||||||||||||||||||||||||
Other funds(1) | Other funds(1) | 164.8 | 125.8 | Other funds(1) | 176.7 | 125.8 | ||||||||||||||||||||||
Total | Total | $ | 585.7 | $ | 449.0 | Total | $ | 615.4 | $ | 449.0 |
($ in millions) | ($ in millions) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | ($ in millions) | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets/ Liabilities Presented in the Consolidated Balance Sheets | Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts | Financial Instruments | Cash Collateral Received | Net Amount | Gross Amounts | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset derivatives: | Asset derivatives: | Asset derivatives: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | Free-standing derivatives | $ | 15.4 | $ | 0 | $ | 15.4 | $ | 13.6 | $ | 3.3 | $ | (1.5) | Free-standing derivatives | $ | 10.6 | $ | — | $ | 10.6 | $ | 9.8 | $ | 3.5 | $ | (2.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset derivatives: | Asset derivatives: | Asset derivatives: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | Free-standing derivatives | $ | 16.8 | $ | 0 | $ | 16.8 | $ | 13.7 | $ | 2.6 | $ | 0.5 | Free-standing derivatives | $ | 16.8 | $ | — | $ | 16.8 | $ | 13.7 | $ | 2.6 | $ | 0.5 |
Horace Mann Educators Corporation | 12 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 13 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using | ($ in millions) | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments | Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 678.3 | $ | 678.3 | $ | 0 | $ | 678.3 | $ | 0 | Mortgage-backed securities | $ | 693.5 | $ | 693.5 | $ | — | $ | 693.5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 456.2 | 456.2 | 28.0 | 428.2 | 0 | Other, including U.S. Treasury securities | 408.9 | 408.9 | 17.9 | 391.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,799.1 | 1,799.1 | 0 | 1,740.5 | 58.6 | Municipal bonds | 1,775.5 | 1,775.5 | — | 1,717.3 | 58.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 44.4 | 44.4 | 0 | 44.4 | 0 | Foreign government bonds | 44.0 | 44.0 | — | 44.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,408.8 | 2,408.8 | 14.6 | 2,243.7 | 150.5 | Corporate bonds | 2,451.6 | 2,451.6 | 14.5 | 2,232.1 | 205.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,168.2 | 1,168.2 | 0 | 1,052.7 | 115.5 | Other asset-backed securities | 1,138.5 | 1,138.5 | — | 1,040.0 | 98.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 6,555.0 | 6,555.0 | 42.6 | 6,187.8 | 324.6 | Total fixed maturity securities | 6,512.0 | 6,512.0 | 32.4 | 6,117.9 | 361.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 145.7 | 145.7 | 40.0 | 105.4 | 0.3 | Equity securities | 152.3 | 152.3 | 39.3 | 112.6 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 93.5 | 93.5 | 90.4 | 3.1 | 0 | Short-term investments | 52.3 | 52.3 | 36.1 | 16.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | 46.8 | 46.8 | 0 | 46.8 | 0 | Other investments | 43.2 | 43.2 | — | 43.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 6,841.0 | $ | 6,841.0 | $ | 173.0 | $ | 6,343.1 | $ | 324.9 | Totals | $ | 6,759.8 | $ | 6,759.8 | $ | 107.8 | $ | 6,289.9 | $ | 362.1 | ||||||||||||||||||||||||||||||||||||||||||
Separate Account (variable annuity) assets(1) | Separate Account (variable annuity) assets(1) | $ | 3,256.7 | $ | 3,256.7 | $ | 3,256.7 | $ | 0 | $ | 0 | Separate Account (variable annuity) assets(1) | $ | 3,326.8 | $ | 3,326.8 | $ | 3,326.8 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, embedded derivatives | Investment contract and policy reserves, embedded derivatives | $ | 2.8 | $ | 2.8 | $ | 0 | $ | 2.8 | $ | 0 | Investment contract and policy reserves, embedded derivatives | $ | 2.3 | $ | 2.3 | $ | — | $ | 2.3 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds, embedded derivatives | Other policyholder funds, embedded derivatives | $ | 108.9 | $ | 108.9 | $ | 0 | $ | 0 | $ | 108.9 | Other policyholder funds, embedded derivatives | $ | 106.7 | $ | 106.7 | $ | — | $ | — | $ | 106.7 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments | Investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | U.S. Government and federally sponsored agency obligations: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | $ | 684.8 | $ | 684.8 | $ | 0 | $ | 673.7 | $ | 11.1 | Mortgage-backed securities | $ | 684.8 | $ | 684.8 | $ | — | $ | 673.7 | $ | 11.1 | ||||||||||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 433.2 | 433.2 | 18.4 | 414.8 | 0 | Other, including U.S. Treasury securities | 433.2 | 433.2 | 18.4 | 414.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,827.5 | 1,827.5 | 0 | 1,767.9 | 59.6 | Municipal bonds | 1,827.5 | 1,827.5 | — | 1,767.9 | 59.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 45.1 | 45.1 | 0 | 45.1 | 0 | Foreign government bonds | 45.1 | 45.1 | — | 45.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,122.9 | 2,122.9 | 14.9 | 1,952.2 | 155.8 | Corporate bonds | 2,122.9 | 2,122.9 | 14.9 | 1,952.2 | 155.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,231.8 | 1,231.8 | 0 | 1,103.5 | 128.3 | Other asset-backed securities | 1,231.8 | 1,231.8 | — | 1,103.5 | 128.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 6,345.3 | 6,345.3 | 33.3 | 5,957.2 | 354.8 | Total fixed maturity securities | 6,345.3 | 6,345.3 | 33.3 | 5,957.2 | 354.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 121.6 | 121.6 | 39.2 | 82.1 | 0.3 | Equity securities | 121.6 | 121.6 | 39.2 | 82.1 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 141.8 | 141.8 | 137.7 | 4.1 | 0 | Short-term investments | 141.8 | 141.8 | 137.7 | 4.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | 36.3 | 36.3 | 0 | 36.3 | 0 | Other investments | 36.3 | 36.3 | — | 36.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 6,645.0 | $ | 6,645.0 | $ | 210.2 | $ | 6,079.7 | $ | 355.1 | Totals | $ | 6,645.0 | $ | 6,645.0 | $ | 210.2 | $ | 6,079.7 | $ | 355.1 | ||||||||||||||||||||||||||||||||||||||||||
Separate Account (variable annuity) assets(1) | Separate Account (variable annuity) assets(1) | $ | 2,891.4 | $ | 2,891.4 | $ | 2,891.4 | $ | 0 | $ | 0 | Separate Account (variable annuity) assets(1) | $ | 2,891.4 | $ | 2,891.4 | $ | 2,891.4 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, embedded derivatives | Investment contract and policy reserves, embedded derivatives | $ | 2.5 | $ | 2.5 | $ | 0 | $ | 2.5 | $ | 0 | Investment contract and policy reserves, embedded derivatives | $ | 2.5 | $ | 2.5 | $ | — | $ | 2.5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds, embedded derivatives | Other policyholder funds, embedded derivatives | $ | 104.5 | $ | 104.5 | $ | 0 | $ | 0 | $ | 104.5 | Other policyholder funds, embedded derivatives | $ | 104.5 | $ | 104.5 | $ | — | $ | — | $ | 104.5 |
Horace Mann Educators Corporation | 14 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Financial Assets | Financial Liabilities(1) | ($ in millions) | Financial Assets | Financial Liabilities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | Corporate Bonds | Mortgage-Backed and Other Asset- Backed Securities(2) | Total Fixed Maturity Securities | Equity Securities | Total | Municipal Bonds | Corporate Bonds | Mortgage-Backed and Other Asset- Backed Securities(2) | Total Fixed Maturity Securities | Equity Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, April 1, 2021 | $ | 58.6 | $ | 149.1 | $ | 132.2 | $ | 339.9 | $ | 0.3 | $ | 340.2 | $ | 107.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2021 | Beginning balance, July 1, 2021 | $ | 58.6 | $ | 150.5 | $ | 115.5 | $ | 324.6 | $ | 0.3 | $ | 324.9 | $ | 108.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | 0 | 28.5 | 3.1 | 31.6 | 0 | 31.6 | 0 | Transfers into Level 3(3) | — | 55.7 | 4.0 | 59.7 | — | 59.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | 0 | (29.4) | (13.3) | (42.7) | 0 | (42.7) | 0 | Transfers out of Level 3(3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains or losses | Total gains or losses | Total gains or losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) included in net income related to financial assets | Net investment gains (losses) included in net income related to financial assets | 0 | 0 | 0 | 0 | 0 | 0 | — | Net investment gains (losses) included in net income related to financial assets | — | — | (6.6) | (6.6) | 0.1 | (6.5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 3.2 | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | 0.3 | 3.2 | 1.3 | 4.8 | 0 | 4.8 | 0 | Net unrealized investment gains (losses) included in OCI | (0.3) | (0.1) | 6.6 | 6.2 | — | 6.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Purchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 1.2 | Issuances | — | — | — | — | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.3) | (0.9) | (7.8) | (9.0) | 0 | (9.0) | (3.1) | Paydowns, maturities and distributions | (0.1) | (1.1) | (21.0) | (22.2) | — | (22.2) | (4.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2021 | $ | 58.6 | $ | 150.5 | $ | 115.5 | $ | 324.6 | $ | 0.3 | $ | 324.9 | $ | 108.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | Ending balance, September 30, 2021 | $ | 58.2 | $ | 205.0 | $ | 98.5 | $ | 361.7 | $ | 0.4 | $ | 362.1 | $ | 106.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2021 | Beginning balance, January 1, 2021 | $ | 59.6 | $ | 155.8 | $ | 139.4 | $ | 354.8 | $ | 0.3 | $ | 355.1 | $ | 104.5 | Beginning balance, January 1, 2021 | $ | 59.6 | $ | 155.8 | $ | 139.4 | $ | 354.8 | $ | 0.3 | $ | 355.1 | $ | 104.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | 0 | 52.6 | 6.2 | 58.8 | 0 | 58.8 | 0 | Transfers into Level 3(3) | — | 108.3 | 10.2 | 118.5 | — | 118.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | 0 | (56.7) | (19.2) | (75.9) | 0 | (75.9) | 0 | Transfers out of Level 3(3) | — | (56.7) | (19.2) | (75.9) | — | (75.9) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains or losses | Total gains or losses | Total gains or losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) included in net income related to financial assets | Net investment gains (losses) included in net income related to financial assets | 0 | 0 | 0 | 0 | 0 | 0 | — | Net investment gains (losses) included in net income related to financial assets | — | — | (7.7) | (7.7) | 0.1 | (7.6) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 7.5 | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 8.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | (0.6) | 1.2 | 1.0 | 1.6 | 0 | 1.6 | 0 | Net unrealized investment gains (losses) included in OCI | (0.9) | 1.0 | 8.7 | 8.8 | — | 8.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Purchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 1.9 | Issuances | — | — | — | — | — | — | 3.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.4) | (2.4) | (11.9) | (14.7) | 0 | (14.7) | (5.0) | Paydowns, maturities and distributions | (0.5) | (3.4) | (32.9) | (36.8) | — | (36.8) | (9.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2021 | $ | 58.6 | $ | 150.5 | $ | 115.5 | $ | 324.6 | $ | 0.3 | $ | 324.9 | $ | 108.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | Ending balance, September 30, 2021 | $ | 58.2 | $ | 205.0 | $ | 98.5 | $ | 361.7 | $ | 0.4 | $ | 362.1 | $ | 106.7 |
Horace Mann Educators Corporation | 15 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Financial Assets | Financial Liabilities(1) | ($ in millions) | Financial Assets | Financial Liabilities(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal Bonds | Corporate Bonds | Mortgage-Backed and Other Asset- Backed Securities(2) | Total Fixed Maturity Securities | Equity Securities | Total | Municipal Bonds | Corporate Bonds | Mortgage-Backed and Other Asset- Backed Securities(2) | Total Fixed Maturity Securities | Equity Securities | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, April 1, 2020 | $ | 104.9 | $ | 111.7 | $ | 140.5 | $ | 357.1 | $ | 0.1 | $ | 357.2 | $ | 87.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2020 | Beginning balance, July 1, 2020 | $ | 73.2 | $ | 126.3 | $ | 200.1 | $ | 399.6 | $ | 0.1 | $ | 399.7 | $ | 93.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | 10.7 | 14.0 | 64.2 | 88.9 | 0 | 88.9 | 0 | Transfers into Level 3(3) | 6.2 | 6.8 | 8.7 | 21.7 | — | 21.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | (45.9) | (4.2) | (3.4) | (53.5) | 0 | (53.5) | 0 | Transfers out of Level 3(3) | (16.7) | (12.5) | (71.0) | (100.2) | — | (100.2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains or losses | Total gains or losses | Total gains or losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) included in net income related to financial assets | Net investment gains (losses) included in net income related to financial assets | 0 | 0 | 0 | 0 | 0 | 0 | — | Net investment gains (losses) included in net income related to financial assets | — | — | (0.3) | (0.3) | — | (0.3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 6.0 | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 4.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | 3.8 | 5.3 | 3.3 | 12.4 | 0 | 12.4 | 0 | Net unrealized investment gains (losses) included in OCI | 3.2 | 0.5 | 6.3 | 10.0 | — | 10.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Purchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 2.5 | Issuances | — | — | — | — | — | — | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.3) | (0.5) | (4.5) | (5.3) | 0 | (5.3) | (2.4) | Paydowns, maturities and distributions | (0.2) | 0.1 | (3.1) | (3.2) | — | (3.2) | (1.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | 73.2 | $ | 126.3 | $ | 200.1 | $ | 399.6 | $ | 0.1 | $ | 399.7 | $ | 93.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2020 | Ending balance, September 30, 2020 | $ | 65.7 | $ | 121.2 | $ | 140.7 | $ | 327.6 | $ | 0.1 | $ | 327.7 | $ | 98.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2020 | Beginning balance, January 1, 2020 | $ | 44.3 | $ | 104.0 | $ | 146.8 | $ | 295.1 | $ | 0.1 | $ | 295.2 | $ | 93.7 | Beginning balance, January 1, 2020 | $ | 44.3 | $ | 104.0 | $ | 146.8 | $ | 295.1 | $ | 0.1 | $ | 295.2 | $ | 93.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | 74.5 | 32.8 | 86.7 | 194.0 | 0 | 194.0 | 0 | Transfers into Level 3(3) | 80.7 | 39.6 | 95.4 | 215.7 | — | 215.7 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | (45.9) | (14.2) | (6.4) | (66.5) | 0 | (66.5) | 0 | Transfers out of Level 3(3) | (62.6) | (26.7) | (77.4) | (166.7) | — | (166.7) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total gains or losses | Total gains or losses | Total gains or losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) included in net income related to financial assets | Net investment gains (losses) included in net income related to financial assets | 0 | 0 | 0 | 0 | 0 | 0 | — | Net investment gains (losses) included in net income related to financial assets | — | — | (0.3) | (0.3) | — | (0.3) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 0.9 | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | 5.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | 0.8 | (0.2) | (21.1) | (20.5) | 0 | (20.5) | 0 | Net unrealized investment gains (losses) included in OCI | 4.0 | 0.3 | (14.8) | (10.5) | — | (10.5) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | 0 | 6.9 | 1.9 | 8.8 | 0 | 8.8 | 0 | Purchases | — | 6.9 | 1.9 | 8.8 | — | 8.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | 0 | 0 | 0 | 0 | 0 | 0 | 3.9 | Issuances | — | — | — | — | — | — | 5.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.5) | (3.0) | (7.8) | (11.3) | 0 | (11.3) | (4.9) | Paydowns, maturities and distributions | (0.7) | (2.9) | (10.9) | (14.5) | — | (14.5) | (6.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | 73.2 | $ | 126.3 | $ | 200.1 | $ | 399.6 | $ | 0.1 | $ | 399.7 | $ | 93.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2020 | Ending balance, September 30, 2020 | $ | 65.7 | $ | 121.2 | $ | 140.7 | $ | 327.6 | $ | 0.1 | $ | 327.7 | $ | 98.1 |
Horace Mann Educators Corporation | 16 | Quarterly Report on Form 10-Q |
($ in millions) | ||||||||||||||||||||||||||
Financial Assets | Fair Value at | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | ||||||||||||||||||||||
Municipal bonds | $ | discounted cash flow | I spread(2) | 307 - 391 bps | ||||||||||||||||||||||
Corporate bonds | discounted cash flow | N spread(3) | 272 - 553 bps | |||||||||||||||||||||||
market comparable | option adjusted spread | 12.54% | ||||||||||||||||||||||||
Other asset-backed securities | vendor price | haircut | 3.00% - 5.00% | |||||||||||||||||||||||
discounted cash flow | constant prepayment rate | 20.00% | ||||||||||||||||||||||||
discounted cash flow | T spread(4) | 235 - 800 bps | ||||||||||||||||||||||||
discounted cash flow | PDI interest margin(5) | 7.13% | ||||||||||||||||||||||||
discounted cash flow | SBL interest margin(6) | 4.50% | ||||||||||||||||||||||||
Equity securities | Black Scholes | equity value | low - |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Fair Value at June 30, 2021 | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | Financial Liabilities | Fair Value at September 30, 2021 | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | ||||||||||||||||||||||||||||||||||||||||||
Derivatives embedded in fixed indexed annuity products | Derivatives embedded in fixed indexed annuity products | $ | 108.9 | discounted cash flow | lapse rate | 5.30% | Derivatives embedded in fixed indexed annuity products | $ | 106.7 | discounted cash flow | lapse rate | 5.30% | ||||||||||||||||||||||||||||||||||||||||
mortality multiplier(7) | 63.00% | mortality multiplier(7) | 63.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
option budget | 0.90% - 2.50% | option budget | 0.90% - 2.50% | |||||||||||||||||||||||||||||||||||||||||||||||||
non-performance adjustment(8) | 5.00% | non-performance adjustment(8) | 5.00% |
Horace Mann Educators Corporation | 17 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using | ($ in millions) | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | $ | 160.7 | $ | 164.3 | $ | 0 | $ | 0 | $ | 164.3 | Other investments | $ | 156.2 | $ | 159.8 | $ | — | $ | — | $ | 159.8 | ||||||||||||||||||||||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,456.8 | 2,948.5 | 0 | 0 | 2,948.5 | Deposit asset on reinsurance | 2,477.9 | 2,945.0 | — | — | 2,945.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, fixed annuity contracts | Investment contract and policy reserves, fixed annuity contracts | 4,911.3 | 5,031.5 | 0 | 0 | 5,031.5 | Investment contract and policy reserves, fixed annuity contracts | 4,942.5 | 5,063.0 | — | — | 5,063.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, account values on life contracts | Investment contract and policy reserves, account values on life contracts | 101.4 | 110.9 | 0 | 0 | 110.9 | Investment contract and policy reserves, account values on life contracts | 103.2 | 112.6 | — | — | 112.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 914.2 | 914.2 | 0 | 857.7 | 56.5 | Other policyholder funds | 887.6 | 887.6 | — | 832.7 | 54.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | 135.0 | 135.0 | 0 | 0 | 135.0 | Short-term debt | 135.0 | 135.0 | — | — | 135.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 278.5 | 313.6 | 0 | 313.6 | 0 | Long-term debt | 253.6 | 282.1 | — | 282.1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | $ | 168.3 | $ | 172.1 | $ | 0 | $ | 0 | $ | 172.1 | Other investments | $ | 168.3 | $ | 172.1 | $ | — | $ | — | $ | 172.1 | ||||||||||||||||||||||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,420.9 | 3,030.6 | 0 | 0 | 3,030.6 | Deposit asset on reinsurance | 2,420.9 | 3,030.6 | — | — | 3,030.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, fixed annuity contracts | Investment contract and policy reserves, fixed annuity contracts | 4,847.6 | 4,963.3 | 0 | 0 | 4,963.3 | Investment contract and policy reserves, fixed annuity contracts | 4,847.6 | 4,963.3 | — | — | 4,963.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, account values on life contracts | Investment contract and policy reserves, account values on life contracts | 98.7 | 108.4 | 0 | 0 | 108.4 | Investment contract and policy reserves, account values on life contracts | 98.7 | 108.4 | — | — | 108.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 646.8 | 646.8 | 0 | 590.7 | 56.1 | Other policyholder funds | 646.8 | 646.8 | — | 590.7 | 56.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | 135.0 | 135.0 | 0 | 0 | 135.0 | Short-term debt | 135.0 | 135.0 | — | — | 135.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 302.3 | 331.1 | 0 | 331.1 | 0 | Long-term debt | 302.3 | 331.1 | — | 331.1 | — |
Horace Mann Educators Corporation | 18 | Quarterly Report on Form 10-Q |
($ in millions) | ||||||||||||||||||||||||||
Property and Casualty | $ | 9.5 | ||||||||||||||||||||||||
Supplemental | 19.6 | |||||||||||||||||||||||||
Retirement | 4.5 | |||||||||||||||||||||||||
Life | 9.9 | |||||||||||||||||||||||||
Total | $ | 43.5 |
Horace Mann Educators Corporation | 19 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Weighted Average | ($ in millions) | Weighted Average | ||||||||||||||||||||||||
Useful Life (in Years) | Useful Life (in Years) | |||||||||||||||||||||||||||
At inception: | At inception: | At inception: | ||||||||||||||||||||||||||
Value of business acquired | Value of business acquired | 30 | $ | 94.4 | Value of business acquired | 30 | $ | 94.4 | ||||||||||||||||||||
Value of distribution acquired | Value of distribution acquired | 17 | 54.0 | Value of distribution acquired | 17 | 54.0 | ||||||||||||||||||||||
Value of agency relationships | Value of agency relationships | 14 | 17.0 | Value of agency relationships | 14 | 17.0 | ||||||||||||||||||||||
Value of customer relationships | Value of customer relationships | 10 | 9.1 | Value of customer relationships | 10 | 9.1 | ||||||||||||||||||||||
Total | Total | 23 | 174.5 | Total | 23 | 174.5 | ||||||||||||||||||||||
Accumulated amortization and impairments: | Accumulated amortization and impairments: | Accumulated amortization and impairments: | ||||||||||||||||||||||||||
Value of business acquired | Value of business acquired | (14.3) | Value of business acquired | (15.9) | ||||||||||||||||||||||||
Value of distribution acquired | Value of distribution acquired | (10.2) | Value of distribution acquired | (10.9) | ||||||||||||||||||||||||
Value of agency relationships | Value of agency relationships | (5.2) | Value of agency relationships | (5.7) | ||||||||||||||||||||||||
Value of customer relationships | Value of customer relationships | (3.7) | Value of customer relationships | (4.1) | ||||||||||||||||||||||||
Total | Total | (33.4) | Total | (36.6) | ||||||||||||||||||||||||
Net intangible assets subject to amortization: | Net intangible assets subject to amortization: | $ | 141.1 | Net intangible assets subject to amortization: | $ | 137.9 |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||
Year Ending December 31, | Year Ending December 31, | Year Ending December 31, | ||||||||||||||
2021 (excluding the six months ended June 30, 2021) | $ | 6.4 | ||||||||||||||
2021 (excluding the nine months ended September 30, 2021) | 2021 (excluding the nine months ended September 30, 2021) | $ | 3.2 | |||||||||||||
2022 | 2022 | 12.1 | 2022 | 12.1 | ||||||||||||
2023 | 2023 | 11.2 | 2023 | 11.2 | ||||||||||||
2024 | 2024 | 10.5 | 2024 | 10.5 | ||||||||||||
2025 | 2025 | 9.8 | 2025 | 9.8 | ||||||||||||
Thereafter | Thereafter | 91.1 | Thereafter | 91.1 | ||||||||||||
Total | Total | $ | 141.1 | Total | $ | 137.9 |
($ in millions) | ||||||||
Trade names | $ | 7.9 | ||||||
State licenses | 2.9 | |||||||
Total | $ | 10.8 |
Horace Mann Educators Corporation | 20 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty | Property and Casualty | Property and Casualty | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning gross reserves(1) | Beginning gross reserves(1) | $ | 374.1 | $ | 382.2 | $ | 372.2 | $ | 387.0 | Beginning gross reserves(1) | $ | 368.4 | $ | 388.5 | $ | 372.2 | $ | 387.0 | ||||||||||||||||||||||||||||||||||
Less: reinsurance recoverables | Less: reinsurance recoverables | 112.5 | 119.0 | 112.9 | 120.5 | Less: reinsurance recoverables | 108.9 | 116.1 | 112.9 | 120.5 | ||||||||||||||||||||||||||||||||||||||||||
Net reserves, beginning of period(2) | Net reserves, beginning of period(2) | 261.6 | 263.2 | 259.3 | 266.5 | Net reserves, beginning of period(2) | 259.5 | 272.4 | 259.3 | 266.5 | ||||||||||||||||||||||||||||||||||||||||||
Incurred claims and claim expenses: | Incurred claims and claim expenses: | Incurred claims and claim expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Claims occurring in the current period | Claims occurring in the current period | 118.1 | 109.1 | 212.9 | 214.6 | Claims occurring in the current period | 132.5 | 125.6 | 345.4 | 340.2 | ||||||||||||||||||||||||||||||||||||||||||
Decrease in estimated reserves for claims occurring in prior periods(3) | Decrease in estimated reserves for claims occurring in prior periods(3) | (4.2) | (1.0) | (4.2) | (2.0) | Decrease in estimated reserves for claims occurring in prior periods(3) | (3.0) | (7.2) | (7.2) | (9.2) | ||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expenses incurred(4) | Total claims and claim expenses incurred(4) | 113.9 | 108.1 | 208.7 | 212.6 | Total claims and claim expenses incurred(4) | 129.5 | 118.4 | 338.2 | 331.0 | ||||||||||||||||||||||||||||||||||||||||||
Claims and claim expense payments for claims occurring during: | Claims and claim expense payments for claims occurring during: | Claims and claim expense payments for claims occurring during: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Current period | Current period | 79.1 | 61.4 | 113.5 | 104.9 | Current period | 96.8 | 91.0 | 210.3 | 195.9 | ||||||||||||||||||||||||||||||||||||||||||
Prior periods | Prior periods | 36.9 | 37.5 | 95.0 | 101.8 | Prior periods | 26.4 | 19.3 | 121.4 | 121.1 | ||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expense payments | Total claims and claim expense payments | 116.0 | 98.9 | 208.5 | 206.7 | Total claims and claim expense payments | 123.2 | 110.3 | 331.7 | 317.0 | ||||||||||||||||||||||||||||||||||||||||||
Net reserves, end of period(2) | Net reserves, end of period(2) | 259.5 | 272.4 | 259.5 | 272.4 | Net reserves, end of period(2) | 265.8 | 280.5 | 265.8 | 280.5 | ||||||||||||||||||||||||||||||||||||||||||
Plus: reinsurance recoverables | Plus: reinsurance recoverables | 108.9 | 116.1 | 108.9 | 116.1 | Plus: reinsurance recoverables | 109.6 | 114.8 | 109.6 | 114.8 | ||||||||||||||||||||||||||||||||||||||||||
Ending gross reserves(1) | Ending gross reserves(1) | $ | 368.4 | $ | 388.5 | $ | 368.4 | $ | 388.5 | Ending gross reserves(1) | $ | 375.4 | $ | 395.3 | $ | 375.4 | $ | 395.3 |
Horace Mann Educators Corporation | 21 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Gross Amount | Ceded to Other Companies(1) | Assumed from Other Companies | Net Amount | ($ in millions) | Gross Amount | Ceded to Other Companies(1) | Assumed from Other Companies | Net Amount | ||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits(2) | Premiums written and contract deposits(2) | $ | 351.2 | $ | 5.6 | $ | 2.5 | $ | 348.1 | Premiums written and contract deposits(2) | $ | 366.0 | $ | 5.5 | $ | 2.6 | $ | 363.1 | ||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 231.5 | 8.1 | 2.4 | 225.8 | Premiums and contract charges earned | 230.9 | 8.1 | 2.6 | 225.4 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 144.6 | (1.0) | 1.5 | 147.1 | Benefits, claims and settlement expenses | 164.5 | 1.5 | 1.8 | 164.8 | ||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits(2) | Premiums written and contract deposits(2) | $ | 332.4 | $ | 6.4 | $ | 3.1 | $ | 329.1 | Premiums written and contract deposits(2) | $ | 368.6 | $ | 2.1 | $ | 2.4 | $ | 368.9 | ||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 230.6 | 8.3 | 3.1 | 225.4 | Premiums and contract charges earned | 237.1 | 4.2 | 2.4 | 235.3 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 143.3 | 2.4 | 2.1 | 143.0 | Benefits, claims and settlement expenses | 59.4 | (90.1) | 1.9 | 151.4 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits(2) | Premiums written and contract deposits(2) | $ | 671.8 | $ | 11.5 | $ | 4.0 | $ | 664.3 | Premiums written and contract deposits(2) | $ | 1,037.8 | $ | 17.0 | $ | 6.6 | $ | 1,027.4 | ||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 465.7 | 16.5 | 4.2 | 453.4 | Premiums and contract charges earned | 696.6 | 24.6 | 6.8 | 678.8 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 280.2 | 1.5 | 2.7 | 281.4 | Benefits, claims and settlement expenses | 444.7 | 3.0 | 4.5 | 446.2 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits(2) | Premiums written and contract deposits(2) | $ | 666.1 | $ | 12.7 | $ | 4.5 | $ | 657.9 | Premiums written and contract deposits(2) | $ | 1,034.7 | $ | 14.8 | $ | 6.9 | $ | 1,026.8 | ||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 473.8 | 16.7 | 4.6 | 461.7 | Premiums and contract charges earned | 710.9 | 20.9 | 7.0 | 697.0 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 282.8 | 4.3 | 3.2 | 281.7 | Benefits, claims and settlement expenses | 342.2 | (85.8) | 5.1 | 433.1 |
Horace Mann Educators Corporation | 22 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | Premiums and contract charges earned | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty | Property and Casualty | $ | 155.0 | $ | 156.2 | $ | 310.8 | $ | 322.7 | Property and Casualty | $ | 153.3 | $ | 166.0 | $ | 464.1 | $ | 488.7 | ||||||||||||||||||||||||||||||||||
Supplemental | Supplemental | 31.6 | 33.3 | 63.3 | 66.3 | Supplemental | 31.0 | 32.5 | 94.3 | 98.8 | ||||||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | 9.2 | 6.7 | 17.8 | 14.1 | Retirement | 9.9 | 7.4 | 27.7 | 21.5 | ||||||||||||||||||||||||||||||||||||||||||
Life | Life | 30.0 | 29.2 | 61.5 | 58.6 | Life | 31.2 | 29.4 | 92.7 | 88.0 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 225.8 | $ | 225.4 | $ | 453.4 | $ | 461.7 | Total | $ | 225.4 | $ | 235.3 | $ | 678.8 | $ | 697.0 | ||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | Net investment income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty | Property and Casualty | $ | 21.7 | $ | 6.3 | $ | 32.5 | $ | 16.6 | Property and Casualty | $ | 11.3 | $ | 13.7 | $ | 43.8 | $ | 30.3 | ||||||||||||||||||||||||||||||||||
Supplemental | Supplemental | 6.3 | 4.0 | 11.6 | 7.5 | Supplemental | 7.1 | 4.3 | 18.7 | 11.8 | ||||||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | 62.0 | 55.1 | 122.4 | 108.6 | Retirement | 64.8 | 58.1 | 187.2 | 166.7 | ||||||||||||||||||||||||||||||||||||||||||
Life | Life | 19.8 | 15.6 | 39.4 | 31.2 | Life | 21.1 | 18.2 | 60.5 | 49.4 | ||||||||||||||||||||||||||||||||||||||||||
Corporate and Other | Corporate and Other | (0.1) | 0 | (0.1) | (0.1) | Corporate and Other | — | — | (0.1) | (0.1) | ||||||||||||||||||||||||||||||||||||||||||
Intersegment eliminations | Intersegment eliminations | (0.5) | (0.6) | (1.1) | (1.1) | Intersegment eliminations | (0.6) | (0.6) | (1.7) | (1.7) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 109.2 | $ | 80.4 | $ | 204.7 | $ | 162.7 | Total | $ | 103.7 | $ | 93.7 | $ | 308.4 | $ | 256.4 | ||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | Net income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Casualty | Property and Casualty | $ | 19.3 | $ | 11.3 | $ | 47.2 | $ | 37.9 | Property and Casualty | $ | (4.7) | $ | 15.8 | $ | 42.5 | $ | 53.7 | ||||||||||||||||||||||||||||||||||
Supplemental | Supplemental | 12.0 | 9.5 | 23.4 | 20.0 | Supplemental | 11.4 | 10.6 | 34.8 | 30.6 | ||||||||||||||||||||||||||||||||||||||||||
Retirement | Retirement | 11.5 | 9.7 | 22.1 | 8.8 | Retirement | 14.1 | 7.8 | 36.2 | 16.6 | ||||||||||||||||||||||||||||||||||||||||||
Life | Life | 5.0 | 1.9 | 5.7 | 2.5 | Life | 5.1 | 4.3 | 10.8 | 6.8 | ||||||||||||||||||||||||||||||||||||||||||
Corporate and Other | Corporate and Other | (1.1) | (1.9) | (12.4) | (20.2) | Corporate and Other | (9.6) | (2.0) | (22.0) | (22.2) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 46.7 | $ | 30.5 | $ | 86.0 | $ | 49.0 | Total | $ | 16.3 | $ | 36.5 | $ | 102.3 | $ | 85.5 |
($ in millions) | ($ in millions) | June 30, 2021 | December 31, 2020 | ($ in millions) | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Property and Casualty | Property and Casualty | $ | 1,313.2 | $ | 1,324.9 | Property and Casualty | $ | 1,269.0 | $ | 1,324.9 | ||||||||||||||||||
Supplemental | Supplemental | 855.0 | 811.5 | Supplemental | 863.8 | 811.5 | ||||||||||||||||||||||
Retirement | Retirement | 9,800.6 | 9,198.7 | Retirement | 9,893.4 | 9,198.7 | ||||||||||||||||||||||
Life | Life | 2,142.9 | 2,044.5 | Life | 2,142.6 | 2,044.5 | ||||||||||||||||||||||
Corporate and Other | Corporate and Other | 158.9 | 182.3 | Corporate and Other | 165.4 | 182.3 | ||||||||||||||||||||||
Intersegment eliminations | Intersegment eliminations | (80.5) | (90.1) | Intersegment eliminations | (69.2) | (90.1) | ||||||||||||||||||||||
Total | Total | $ | 14,190.1 | $ | 13,471.8 | Total | $ | 14,265.0 | $ | 13,471.8 |
Horace Mann Educators Corporation | 23 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Net Unrealized Investment Gains (Losses) on Securities(1) | Net Funded Status of Benefit Plans(1) | Total(1) | ($ in millions) | Net Unrealized Investment Gains (Losses) on Securities(1) | Net Funded Status of Benefit Plans(1) | Total(1) | ||||||||||||||||||||||||||||||||
Beginning balance, April 1, 2021 | $ | 243.6 | $ | (11.2) | $ | 232.4 | ||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2021 | Beginning balance, July 1, 2021 | $ | 332.2 | $ | (11.2) | $ | 321.0 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 93.3 | 0 | 93.3 | Other comprehensive income (loss) before reclassifications | (29.3) | — | (29.3) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(2) | Amounts reclassified from AOCI(2) | (4.7) | 0 | (4.7) | Amounts reclassified from AOCI(2) | 4.0 | — | 4.0 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | Net current period other comprehensive income (loss) | 88.6 | 0 | 88.6 | Net current period other comprehensive income (loss) | (25.3) | — | (25.3) | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2021 | $ | 332.2 | $ | (11.2) | $ | 321.0 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | Ending balance, September 30, 2021 | $ | 306.9 | $ | (11.2) | $ | 295.7 | |||||||||||||||||||||||||||||||||
Beginning balance, April 1, 2020 | $ | 136.6 | $ | (10.7) | $ | 125.9 | ||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2020 | Beginning balance, July 1, 2020 | $ | 279.1 | $ | (10.7) | $ | 268.4 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 147.5 | 0 | 147.5 | Other comprehensive income (loss) before reclassifications | 54.3 | — | 54.3 | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(3) | Amounts reclassified from AOCI(3) | (5.0) | 0 | (5.0) | Amounts reclassified from AOCI(3) | (5.2) | — | (5.2) | ||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | Net current period other comprehensive income (loss) | 142.5 | 0 | 142.5 | Net current period other comprehensive income (loss) | 49.1 | — | 49.1 | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | 279.1 | $ | (10.7) | $ | 268.4 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2020 | Ending balance, September 30, 2020 | $ | 328.2 | $ | (10.7) | $ | 317.5 | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2021 | Beginning balance, January 1, 2021 | $ | 366.3 | $ | (11.2) | $ | 355.1 | Beginning balance, January 1, 2021 | $ | 366.3 | $ | (11.2) | $ | 355.1 | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | (35.8) | 0 | (35.8) | Other comprehensive income (loss) before reclassifications | (65.0) | — | (65.0) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(2) | Amounts reclassified from AOCI(2) | 1.7 | 0 | 1.7 | Amounts reclassified from AOCI(2) | 5.6 | — | 5.6 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | Net current period other comprehensive income (loss) | (34.1) | 0 | (34.1) | Net current period other comprehensive income (loss) | (59.4) | — | (59.4) | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2021 | $ | 332.2 | $ | (11.2) | $ | 321.0 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | Ending balance, September 30, 2021 | $ | 306.9 | $ | (11.2) | $ | 295.7 | |||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2020 | Beginning balance, January 1, 2020 | $ | 230.4 | $ | (10.7) | $ | 219.7 | Beginning balance, January 1, 2020 | $ | 230.4 | $ | (10.7) | $ | 219.7 | ||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | Other comprehensive income (loss) before reclassifications | 43.0 | 0 | 43.0 | Other comprehensive income (loss) before reclassifications | 97.3 | — | 97.3 | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(3) | Amounts reclassified from AOCI(3) | 5.7 | 0 | 5.7 | Amounts reclassified from AOCI(3) | 0.5 | — | 0.5 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | Net current period other comprehensive income (loss) | 48.7 | 0 | 48.7 | Net current period other comprehensive income (loss) | 97.8 | — | 97.8 | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2020 | $ | 279.1 | $ | (10.7) | $ | 268.4 | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2020 | Ending balance, September 30, 2020 | $ | 328.2 | $ | (10.7) | $ | 317.5 |
Horace Mann Educators Corporation | 24 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||
June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Cash | Cash | $ | 28.3 | $ | 21.8 | Cash | $ | 38.9 | $ | 21.8 | ||||||||||||||||||
Restricted cash | Restricted cash | 1.1 | 0.5 | Restricted cash | 1.3 | 0.5 | ||||||||||||||||||||||
Total cash and restricted cash reported in the Consolidated Balance Sheets | Total cash and restricted cash reported in the Consolidated Balance Sheets | $ | 29.4 | $ | 22.3 | Total cash and restricted cash reported in the Consolidated Balance Sheets | $ | 40.2 | $ | 22.3 |
($ in millions) | ($ in millions) | Six Months Ended June 30, | ($ in millions) | Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Cash paid (recovered) during the three months for: | ||||||||||||||||||||||||||||
Cash paid for: | Cash paid for: | |||||||||||||||||||||||||||
Interest | Interest | $ | 6.8 | $ | 8.2 | Interest | $ | 7.3 | $ | 9.3 | ||||||||||||||||||
Income taxes | Income taxes | 13.4 | (0.6) | Income taxes | 20.2 | 18.5 |
Horace Mann Educators Corporation | 25 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 26 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | $ | 347.1 | $ | 314.9 | 10.2 | % | $ | 669.1 | $ | 622.2 | 7.5 | % | Total revenues | $ | 329.6 | $ | 337.1 | -2.2 | % | $ | 998.7 | $ | 958.1 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 46.7 | 30.5 | 53.1 | % | 86.0 | 49.0 | 75.5 | % | Net income | 16.3 | 36.5 | -55.3 | % | 102.3 | 85.5 | 19.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per diluted share: | Per diluted share: | Per diluted share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 1.11 | 0.73 | 52.1 | % | 2.04 | 1.17 | 74.4 | % | Net income | 0.39 | 0.87 | -55.2 | % | 2.43 | 2.03 | 19.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) after tax | 0.09 | 0.06 | N.M. | (0.08) | (0.28) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains after tax | Net investment (losses) gains after tax | (0.11) | 0.05 | N.M. | (0.19) | (0.24) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book value per share | Book value per share | $ | 43.78 | $ | 39.69 | 10.3 | % | Book value per share | $ | 43.30 | $ | 41.45 | 4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income return on equity - last twelve months | Net income return on equity - last twelve months | 9.8 | % | 6.9 | % | Net income return on equity - last twelve months | 8.5 | % | 7.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income return on equity - annualized | Net income return on equity - annualized | 9.5 | % | 6.1 | % | Net income return on equity - annualized | 7.6 | % | 6.9 | % |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | $ | 225.8 | $ | 225.4 | 0.2 | % | $ | 453.4 | $ | 461.7 | -1.8 | % | Premiums and contract charges earned | $ | 225.4 | $ | 235.3 | -4.2 | % | $ | 678.8 | $ | 697.0 | -2.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 109.2 | 80.4 | 35.8 | % | 204.7 | 162.7 | 25.8 | % | Net investment income | 103.7 | 93.7 | 10.7 | % | 308.4 | 256.4 | 20.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 4.9 | 3.2 | N.M. | (4.1) | (15.3) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains | Net investment (losses) gains | (6.5) | 2.5 | N.M. | (10.6) | (12.8) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 7.2 | 5.9 | 22.0 | % | 15.1 | 13.1 | 15.3 | % | Other income | 7.0 | 5.6 | 25.0 | % | 22.1 | 17.5 | 26.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 347.1 | 314.9 | 10.2 | % | 669.1 | 622.2 | 7.5 | % | Total revenues | 329.6 | 337.1 | -2.2 | % | 998.7 | 958.1 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 147.1 | 143.0 | 2.9 | % | 281.4 | 281.7 | -0.1 | % | Benefits, claims and settlement expenses | 164.8 | 151.4 | 8.9 | % | 446.2 | 433.1 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 51.2 | 50.7 | 1.0 | % | 101.8 | 102.2 | -0.4 | % | Interest credited | 51.9 | 51.1 | 1.6 | % | 153.7 | 153.3 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 60.5 | 55.7 | 8.6 | % | 118.5 | 116.4 | 1.8 | % | Operating expenses | 64.3 | 57.9 | 11.1 | % | 182.8 | 173.1 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC unlocking and amortization expense | DAC unlocking and amortization expense | 23.5 | 20.4 | 15.2 | % | 47.6 | 50.4 | -5.6 | % | DAC unlocking and amortization expense | 22.9 | 24.6 | -6.9 | % | 70.5 | 75.0 | -6.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 3.2 | 3.7 | -13.5 | % | 6.5 | 7.4 | -12.2 | % | Intangible asset amortization expense | 3.3 | 3.5 | -5.7 | % | 9.8 | 10.9 | -10.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 3.5 | 4.0 | -12.5 | % | 7.0 | 8.2 | -14.6 | % | Interest expense | 3.4 | 3.5 | -2.9 | % | 10.4 | 11.7 | -11.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | Total benefits, losses and expenses | 289.0 | 277.5 | 4.1 | % | 562.8 | 566.3 | -0.6 | % | Total benefits, losses and expenses | 310.6 | 292.0 | 6.4 | % | 873.4 | 857.1 | 1.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 58.1 | 37.4 | 55.3 | % | 106.3 | 55.9 | 90.2 | % | Income before income taxes | 19.0 | 45.1 | -57.9 | % | 125.3 | 101.0 | 24.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 11.4 | 6.9 | 65.2 | % | 20.3 | 6.9 | 194.2 | % | Income tax expense | 2.7 | 8.6 | -68.6 | % | 23.0 | 15.5 | 48.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 46.7 | $ | 30.5 | 53.1 | % | $ | 86.0 | $ | 49.0 | 75.5 | % | Net income | $ | 16.3 | $ | 36.5 | -55.3 | % | $ | 102.3 | $ | 85.5 | 19.6 | % |
Horace Mann Educators Corporation | 27 | Quarterly Report on Form 10-Q |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Investment yield, excluding limited partnership interests, pretax - annualized* | Investment yield, excluding limited partnership interests, pretax - annualized* | 4.3% | 4.4% | 4.3% | 4.5% | Investment yield, excluding limited partnership interests, pretax - annualized* | 4.4% | 4.2% | 4.3% | 4.4% | ||||||||||||||||||||||||||||||||||||||||||
Investment yield, excluding limited partnership interests, after tax - annualized* | Investment yield, excluding limited partnership interests, after tax - annualized* | 3.4% | 3.5% | 3.4% | 3.6% | Investment yield, excluding limited partnership interests, after tax - annualized* | 3.5% | 3.3% | 3.4% | 3.5% |
($ in millions) | ($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Impairments on investments recognized in net income | Impairments on investments recognized in net income | $ | — | $ | (0.5) | $ | (3.2) | $ | (4.2) | Impairments on investments recognized in net income | $ | (6.6) | $ | (1.1) | $ | (9.8) | $ | (5.3) | ||||||||||||||||||||||||||||||||||
Sales and other, net | Sales and other, net | 1.6 | 0.4 | (0.5) | 4.9 | Sales and other, net | 2.7 | 3.7 | 2.2 | 8.6 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value - equity securities | Change in fair value - equity securities | 4.3 | 6.6 | 1.5 | (7.9) | Change in fair value - equity securities | (1.1) | 2.3 | 0.4 | (5.6) | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value and losses realized on settlements - derivatives | Change in fair value and losses realized on settlements - derivatives | (1.0) | (3.3) | (1.9) | (8.1) | Change in fair value and losses realized on settlements - derivatives | (1.5) | (2.4) | (3.4) | (10.5) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 4.9 | $ | 3.2 | $ | (4.1) | $ | (15.3) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains | Net investment (losses) gains | $ | (6.5) | $ | 2.5 | $ | (10.6) | $ | (12.8) |
Horace Mann Educators Corporation | 28 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 29 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 30 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 31 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 32 | Quarterly Report on Form 10-Q |
($ in millions, unless otherwise indicated) | ($ in millions, unless otherwise indicated) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions, unless otherwise indicated) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written*: | Premiums written*: | Premiums written*: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | Automobile | $ | 97.8 | $ | 96.7 | 1.1 | % | $ | 197.0 | $ | 206.1 | -4.4 | % | Automobile | $ | 103.1 | $ | 109.5 | -5.8 | % | $ | 300.1 | $ | 315.6 | -4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and other | Property and other | 57.8 | 59.4 | -2.7 | % | 100.4 | 103.6 | -3.1 | % | Property and other | 60.7 | 63.3 | -4.1 | % | 161.1 | 166.9 | -3.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total premiums written | Total premiums written | 155.6 | 156.1 | -0.3 | % | 297.4 | 309.7 | -4.0 | % | Total premiums written | 163.8 | 172.8 | -5.2 | % | 461.2 | 482.5 | -4.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unearned premiums | Change in unearned premiums | (0.6) | 0.1 | N.M. | 13.4 | 13.0 | 3.1 | % | Change in unearned premiums | (10.5) | (6.8) | -54.4 | % | 2.9 | 6.2 | -53.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total premiums earned | Total premiums earned | 155.0 | 156.2 | -0.8 | % | 310.8 | 322.7 | -3.7 | % | Total premiums earned | 153.3 | 166.0 | -7.7 | % | 464.1 | 488.7 | -5.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Incurred claims and claims expenses: | Incurred claims and claims expenses: | Incurred claims and claims expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Claims occurring in the current year | Claims occurring in the current year | 118.2 | 109.2 | 8.2 | % | 212.9 | 214.6 | -0.8 | % | Claims occurring in the current year | 132.5 | 125.6 | 5.5 | % | 345.4 | 340.2 | 1.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserves favorable development | 4.2 | 1.0 | N.M. | 4.2 | 2.0 | 110.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development(1) | Prior years' reserve development(1) | (3.0) | (7.2) | -58.3 | % | (7.2) | (9.2) | -21.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expenses incurred | Total claims and claim expenses incurred | 114.0 | 108.2 | 5.4 | % | 208.7 | 212.6 | -1.8 | % | Total claims and claim expenses incurred | 129.5 | 118.4 | 9.4 | % | 338.2 | 331.0 | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses, including DAC amortization | Operating expenses, including DAC amortization | 39.9 | 40.9 | -2.4 | % | 79.4 | 84.1 | -5.6 | % | Operating expenses, including DAC amortization | 42.1 | 41.9 | 0.5 | % | 121.5 | 126.0 | -3.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain | 1.1 | 7.1 | -84.5 | % | 22.7 | 26.0 | -12.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | (18.3) | 5.7 | N.M. | 4.4 | 31.7 | -86.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 21.7 | 6.3 | 244.4 | % | 32.5 | 16.6 | 95.8 | % | Net investment income | 11.3 | 13.7 | -17.5 | % | 43.8 | 30.3 | 44.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 24.0 | 14.1 | 70.2 | % | 58.4 | 43.9 | 33.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / core earnings* | 19.3 | 11.3 | 70.8 | % | 47.2 | 37.9 | 24.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (6.3) | 19.8 | -131.8 | % | 52.1 | 63.7 | -18.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) / core earnings (loss)* | Net income (loss) / core earnings (loss)* | (4.7) | 15.8 | -129.7 | % | 42.5 | 53.7 | -20.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Statistics: | Operating Statistics: | Operating Statistics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | Automobile | Automobile | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | Loss and loss adjustment expense ratio | 67.6 | % | 53.2 | % | 14.4 | pts | 63.3 | % | 59.8 | % | 3.5 | pts | Loss and loss adjustment expense ratio | 71.5 | % | 57.6 | % | 13.9 | pts | 66.0 | % | 59.1 | % | 6.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 25.7 | % | 27.1 | % | -1.4 | pts | 25.4 | % | 26.5 | % | -1.1 | pts | Expense ratio | 27.7 | % | 25.7 | % | 2.0 | pts | 26.1 | % | 26.2 | % | -0.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio: | Combined ratio: | 93.3 | % | 80.3 | % | 13.0 | pts | 88.7 | % | 86.3 | % | 2.4 | pts | Combined ratio: | 99.2 | % | 83.3 | % | 15.9 | pts | 92.1 | % | 85.3 | % | 6.8 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development | Prior years' reserve development | -3.0 | % | — | % | -3.0 | pts | -1.5 | % | -0.5 | % | -1.0 | pts | Prior years' reserve development | -2.0 | % | -0.9 | % | -1.1 | pts | -1.6 | % | -0.6 | % | -1.0 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses | Catastrophe losses | 2.6 | % | 3.1 | % | -0.5 | pts | 1.5 | % | 1.5 | % | — | pts | Catastrophe losses | 2.9 | % | 1.7 | % | 1.2 | pts | 1.9 | % | 1.6 | % | 0.3 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying combined ratio* | Underlying combined ratio* | 93.7 | % | 77.2 | % | 16.5 | pts | 88.7 | % | 85.3 | % | 3.4 | pts | Underlying combined ratio* | 98.3 | % | 82.5 | % | 15.8 | pts | 91.8 | % | 84.3 | % | 7.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property | Property | Property | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | Loss and loss adjustment expense ratio | 84.8 | % | 99.1 | % | -14.3 | pts | 74.5 | % | 77.8 | % | -3.3 | pts | Loss and loss adjustment expense ratio | 108.9 | % | 97.3 | % | 11.6 | pts | 86.0 | % | 84.5 | % | 1.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 26.0 | % | 24.8 | % | 1.2 | pts | 26.0 | % | 25.5 | % | 0.5 | pts | Expense ratio | 27.2 | % | 24.4 | % | 2.8 | pts | 26.4 | % | 25.1 | % | 1.3 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio: | Combined ratio: | 110.8 | % | 123.9 | % | -13.1 | pts | 100.5 | % | 103.3 | % | -2.8 | pts | Combined ratio: | 136.1 | % | 121.7 | % | 14.4 | pts | 112.4 | % | 109.6 | % | 2.8 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development | Prior years' reserve development | -2.3 | % | -1.8 | % | -0.5 | pts | -1.1 | % | -0.9 | % | -0.2 | pts | Prior years' reserve development | -1.9 | % | -10.8 | % | 8.9 | pts | -1.4 | % | -4.3 | % | 2.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses | Catastrophe losses | 27.9 | % | 57.9 | % | -30.0 | pts | 24.1 | % | 36.8 | % | -12.7 | pts | Catastrophe losses | 67.3 | % | 57.3 | % | 10.0 | pts | 38.4 | % | 43.9 | % | -5.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying combined ratio* | Underlying combined ratio* | 85.2 | % | 67.8 | % | 17.4 | pts | 77.5 | % | 67.4 | % | 10.1 | pts | Underlying combined ratio* | 70.7 | % | 75.2 | % | -4.5 | pts | 75.4 | % | 70.0 | % | 5.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risks in force (in thousands) | Risks in force (in thousands) | Risks in force (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automobile | Automobile | 387 | 418 | -7.4 | % | Automobile | 381 | 406 | -6.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property | Property | 180 | 191 | -5.8 | % | Property | 178 | 187 | -4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 567 | 609 | -6.9 | % | Total | 559 | 593 | -5.7 | % |
Horace Mann Educators Corporation | 33 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 34 | Quarterly Report on Form 10-Q |
($ in millions, unless otherwise indicated) | ($ in millions, unless otherwise indicated) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions, unless otherwise indicated) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits* | Premiums written and contract deposits* | $ | 31.7 | $ | 33.7 | -5.9 | % | $ | 63.3 | $ | 66.3 | -4.5 | % | Premiums written and contract deposits* | $ | 30.9 | $ | 32.0 | -3.4 | % | $ | 94.2 | $ | 98.3 | -4.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 31.6 | 33.3 | -5.1 | % | 63.3 | 66.3 | -4.5 | % | Premiums and contract charges earned | 31.0 | 32.5 | -4.6 | % | 94.3 | 98.8 | -4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 6.3 | 4.0 | 57.5 | % | 11.6 | 7.5 | 54.7 | % | Net investment income | 7.1 | 4.3 | 65.1 | % | 18.7 | 11.8 | 58.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and settlement expenses | Benefits and settlement expenses | 9.9 | 12.5 | -20.8 | % | 19.6 | 23.0 | -14.8 | % | Benefits and settlement expenses | 10.4 | 10.5 | -1.0 | % | 30.0 | 33.5 | -10.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses (includes DAC unlocking and amortization expense) | Operating expenses (includes DAC unlocking and amortization expense) | 10.2 | 10.1 | 1.0 | % | 20.6 | 20.2 | 2.0 | % | Operating expenses (includes DAC unlocking and amortization expense) | 10.7 | 10.1 | 5.9 | % | 31.3 | 30.3 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 3.0 | 3.2 | -6.3 | % | 5.9 | 6.4 | -7.8 | % | Intangible asset amortization expense | 2.9 | 3.1 | -6.5 | % | 8.8 | 9.5 | -7.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 15.4 | 12.1 | 27.3 | % | 30.0 | 25.5 | 17.6 | % | Income before income taxes | 14.5 | 13.6 | 6.6 | % | 44.5 | 39.1 | 13.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / core earnings* | Net income / core earnings* | 12.0 | 9.5 | 26.3 | % | 23.4 | 20.0 | 17.0 | % | Net income / core earnings* | 11.4 | 10.6 | 7.5 | % | 34.8 | 30.6 | 13.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Statistics: | Operating Statistics: | Operating Statistics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental insurance in force (thousands) | Supplemental insurance in force (thousands) | 282 | 298 | -5.4 | % | Supplemental insurance in force (thousands) | 280 | 292 | -4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits ratio(1) | Benefits ratio(1) | 31.3 | % | 37.5 | % | -6.2 | pts | 31.0 | % | 34.7 | % | -3.7 | pts | Benefits ratio(1) | 33.5 | % | 32.3 | % | 1.2 | pts | 31.8 | % | 33.9 | % | -2.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expense ratio(2) | Operating expense ratio(2) | 26.5 | % | 26.6 | % | -0.1 | pts | 27.0 | % | 26.9 | % | 0.1 | pts | Operating expense ratio(2) | 27.7 | % | 26.9 | % | 0.8 | pts | 27.3 | % | 26.9 | % | 0.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax profit margin(2) | Pretax profit margin(2) | 40.0 | % | 31.9 | % | 8.1 | pts | 39.4 | % | 34.0 | % | 5.4 | pts | Pretax profit margin(2) | 37.6 | % | 36.3 | % | 1.3 | pts | 38.8 | % | 34.7 | % | 4.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Persistency | Persistency | 90.7 | % | 89.3 | % | 1.4 | pts | Persistency | 92.2 | % | 90.1 | % | 2.1 | pts |
Horace Mann Educators Corporation | 35 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 36 | Quarterly Report on Form 10-Q |
($ in millions, unless otherwise indicated) | ($ in millions, unless otherwise indicated) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions, unless otherwise indicated) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract charges earned | Contract charges earned | $ | 9.2 | $ | 6.7 | 37.3 | % | $ | 17.8 | $ | 14.1 | 26.2 | % | Contract charges earned | $ | 9.9 | $ | 7.4 | 33.8 | % | $ | 27.7 | $ | 21.5 | 28.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 62.0 | 55.1 | 12.5 | % | 122.4 | 108.6 | 12.7 | % | Net investment income | 64.8 | 58.1 | 11.5 | % | 187.2 | 166.7 | 12.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 40.0 | 39.4 | 1.5 | % | 79.3 | 79.7 | -0.5 | % | Interest credited | 40.7 | 39.7 | 2.5 | % | 120.0 | 119.4 | 0.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin without net investment gains (losses) | 22.8 | 16.7 | 36.5 | % | 45.0 | 30.8 | 46.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin without net investment (losses) gains | Net interest margin without net investment (losses) gains | 25.0 | 19.4 | 28.9 | % | 70.0 | 50.2 | 39.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest margin - reinsured block | Net interest margin - reinsured block | (0.8) | (1.0) | 20.0 | % | (1.9) | (1.9) | — | % | Net interest margin - reinsured block | (0.9) | (1.0) | 10.0 | % | (2.8) | (2.9) | 3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortality loss and other reserve charges | Mortality loss and other reserve charges | 1.6 | 1.2 | 33.3 | % | 2.7 | 2.8 | -3.6 | % | Mortality loss and other reserve charges | 0.9 | 1.3 | -30.8 | % | 3.6 | 4.1 | -12.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 15.7 | 13.9 | 12.9 | % | 31.7 | 30.1 | 5.3 | % | Operating expenses | 16.9 | 15.1 | 11.9 | % | 48.6 | 44.0 | 10.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC and intangible asset amortization expense, excluding DAC unlocking | DAC and intangible asset amortization expense, excluding DAC unlocking | 5.1 | 4.8 | 6.3 | % | 10.6 | 10.0 | 6.0 | % | DAC and intangible asset amortization expense, excluding DAC unlocking | 5.3 | 5.1 | 3.9 | % | 15.8 | 15.1 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC unlocking | DAC unlocking | (0.2) | (4.6) | 95.7 | % | (1.0) | (0.6) | -66.7 | % | DAC unlocking | (0.8) | (0.7) | -14.3 | % | (1.8) | (1.3) | -38.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 13.9 | 11.2 | 24.1 | % | 26.5 | 10.1 | 162.4 | % | Income before income taxes | 16.8 | 8.9 | 88.8 | % | 43.4 | 19.0 | 128.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 11.5 | 9.7 | 18.6 | % | 22.1 | 8.8 | 151.1 | % | Net income | 14.1 | 7.8 | 80.8 | % | 36.2 | 16.6 | 118.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core earnings* | Core earnings* | 11.5 | 9.7 | 18.6 | % | 22.1 | 8.8 | 151.1 | % | Core earnings* | 14.1 | 7.8 | 80.8 | % | 36.2 | 16.6 | 118.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Statistics: | Operating Statistics: | Operating Statistics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net annuity contract deposits* | Net annuity contract deposits* | Net annuity contract deposits* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable | Variable | $ | 67.6 | $ | 52.3 | 29.3 | % | $ | 129.2 | $ | 110.1 | 17.3 | % | Variable | $ | 71.0 | $ | 58.5 | 21.4 | % | $ | 200.2 | $ | 168.6 | 18.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed | Fixed | 49.8 | 49.3 | 1.0 | % | 94.0 | 97.3 | -3.4 | % | Fixed | 50.4 | 60.2 | -16.3 | % | 144.4 | 157.5 | -8.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 117.4 | 101.6 | 15.6 | % | 223.2 | 207.4 | 7.6 | % | Total | 121.4 | 118.7 | 2.3 | % | 344.6 | 326.1 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single | Single | 63.6 | 48.8 | 30.3 | % | 120.8 | 102.2 | 18.2 | % | Single | 75.8 | 68.3 | 11.0 | % | 196.6 | 170.4 | 15.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recurring | Recurring | 53.8 | 52.8 | 1.9 | % | 102.4 | 105.2 | -2.7 | % | Recurring | 45.6 | 50.4 | -9.5 | % | 148.0 | 155.7 | -4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 117.4 | 101.6 | 15.6 | % | 223.2 | 207.4 | 7.6 | % | Total | 121.4 | 118.7 | 2.3 | % | 344.6 | 326.1 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets under administration (AUA) | Assets under administration (AUA) | Assets under administration (AUA) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annuity assets under management(1) | Annuity assets under management(1) | 5,173.1 | 4,324.3 | 19.6 | % | Annuity assets under management(1) | 5,246.9 | 4,508.7 | 16.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Broker and advisory assets under administration | Broker and advisory assets under administration | 2,516.4 | 2,168.0 | 16.1 | % | Broker and advisory assets under administration | 2,499.5 | 2,124.3 | 17.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recordkeeping assets under administration | Recordkeeping assets under administration | 1,629.9 | 1,460.5 | 11.6 | % | Recordkeeping assets under administration | 1,606.3 | 1,399.6 | 14.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 9,319.4 | 7,952.8 | 17.2 | % | Total | 9,352.7 | 8,032.6 | 16.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Persistency | Persistency | Persistency | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable annuities | Variable annuities | 94.8 | % | 94.9 | % | -0.1 | pts | Variable annuities | 94.7 | % | 94.8 | % | -0.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed annuities | Fixed annuities | 95.0 | % | 94.2 | % | 0.8 | pts | Fixed annuities | 94.7 | % | 94.5 | % | 0.2 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 94.9 | % | 94.5 | % | 0.4 | pts | Total | 94.7 | % | 94.6 | % | 0.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annuity contracts in force (thousands) | Annuity contracts in force (thousands) | 229 | 230 | -0.4 | % | Annuity contracts in force (thousands) | 229 | 230 | -0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Advantage® contracts in force (thousands) | Retirement Advantage® contracts in force (thousands) | 14 | 12 | 16.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest spread on fixed annuities - YTD annualized (basis points) | Net interest spread on fixed annuities - YTD annualized (basis points) | 259 | 168 | 91 | bps | Net interest spread on fixed annuities - YTD annualized (basis points) | 272 | 188 | 84 | bps |
Horace Mann Educators Corporation | 37 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | June 30, 2021 | ($ in millions) | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Deferred Annuities | Deferred Annuities at Minimum Guaranteed Rate | Total Deferred Annuities | Deferred Annuities at Minimum Guaranteed Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of Total | Accumulated Value (AV) | Percent of Total Deferred Annuities AV | Percent of Total | Accumulated Value | Percent of Total | Accumulated Value (AV) | Percent of Total Deferred Annuities AV | Percent of Total | Accumulated Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum guaranteed interest rates: | Minimum guaranteed interest rates: | Minimum guaranteed interest rates: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 2% | Less than 2% | 55.1 | % | $ | 1,386.0 | 60.3 | % | 43.5 | % | $ | 835.2 | Less than 2% | 55.2 | % | $ | 1,393.1 | 62.7 | % | 44.6 | % | $ | 873.0 | ||||||||||||||||||||||||||||||||||||||||||
Equal to 2% but less than 3% | Equal to 2% but less than 3% | 11.4 | % | 286.8 | 83.5 | % | 12.5 | % | 239.4 | Equal to 2% but less than 3% | 11.3 | % | 285.5 | 83.5 | % | 12.2 | % | 238.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Equal to 3% but less than 4% | Equal to 3% but less than 4% | 24.8 | % | 624.7 | 99.9 | % | 32.6 | % | 624.3 | Equal to 3% but less than 4% | 24.8 | % | 627.1 | 99.9 | % | 32.0 | % | 626.8 | ||||||||||||||||||||||||||||||||||||||||||||||
Equal to 4% but less than 5% | Equal to 4% but less than 5% | 6.7 | % | 169.3 | 100.0 | % | 8.8 | % | 169.3 | Equal to 4% but less than 5% | 6.7 | % | 169.4 | 100.0 | % | 8.6 | % | 169.4 | ||||||||||||||||||||||||||||||||||||||||||||||
5% or higher | 5% or higher | 2.0 | % | 50.0 | 100.0 | % | 2.6 | % | 50.0 | 5% or higher | 2.0 | % | 50.0 | 100.0 | % | 2.6 | % | 50.0 | ||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 100.0 | % | $ | 2,516.8 | 76.2 | % | 100.0 | % | $ | 1,918.2 | Total | 100.0 | % | $ | 2,525.1 | 77.5 | % | 100.0 | % | $ | 1,957.5 |
Horace Mann Educators Corporation | 38 | Quarterly Report on Form 10-Q |
($ in millions, unless otherwise indicated) | ($ in millions, unless otherwise indicated) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions, unless otherwise indicated) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums written and contract deposits* | Premiums written and contract deposits* | $ | 29.5 | $ | 27.6 | 6.9 | % | $ | 54.7 | $ | 52.4 | 4.4 | % | Premiums written and contract deposits* | $ | 30.1 | $ | 26.9 | 11.9 | % | $ | 84.8 | $ | 79.3 | 6.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Premiums and contract charges earned | Premiums and contract charges earned | 30.0 | 29.2 | 2.7 | % | 61.5 | 58.6 | 4.9 | % | Premiums and contract charges earned | 31.2 | 29.4 | 6.1 | % | 92.7 | 88.0 | 5.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 19.8 | 15.6 | 26.9 | % | 39.4 | 31.2 | 26.3 | % | Net investment income | 21.1 | 18.2 | 15.9 | % | 60.5 | 49.4 | 22.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and settlement expenses | Benefits and settlement expenses | 21.6 | 21.1 | 2.4 | % | 50.4 | 43.3 | 16.4 | % | Benefits and settlement expenses | 24.0 | 21.2 | 13.2 | % | 74.4 | 64.5 | 15.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 11.2 | 11.3 | -0.9 | % | 22.4 | 22.5 | -0.4 | % | Interest credited | 11.1 | 11.2 | -0.9 | % | 33.5 | 33.7 | -0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 9.2 | 8.3 | 10.8 | % | 17.5 | 17.4 | 0.6 | % | Operating expenses | 9.3 | 8.4 | 10.7 | % | 26.8 | 25.8 | 3.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC amortization expense, excluding unlocking | DAC amortization expense, excluding unlocking | 2.0 | 2.0 | — | % | 3.8 | 3.9 | -2.6 | % | DAC amortization expense, excluding unlocking | 1.9 | 1.9 | — | % | 5.7 | 5.8 | -1.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC unlocking | DAC unlocking | (0.2) | (0.2) | — | % | — | (0.3) | 100.0 | % | DAC unlocking | — | (0.2) | 100.0 | % | — | (0.5) | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 6.1 | 2.3 | 165.2 | % | 7.0 | 3.0 | 133.3 | % | Income before income taxes | 6.1 | 5.2 | 17.3 | % | 13.1 | 8.2 | 59.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income / core earnings* | Net income / core earnings* | 5.0 | 1.9 | 163.2 | % | 5.7 | 2.5 | 128.0 | % | Net income / core earnings* | 5.1 | 4.3 | 18.6 | % | 10.8 | 6.8 | 58.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Statistics: | Operating Statistics: | Operating Statistics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance in force | Life insurance in force | $ | 20,122 | $ | 19,565 | 2.8 | % | Life insurance in force | $ | 20,271 | $ | 19,681 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of policies in force (thousands) | Number of policies in force (thousands) | 200 | 201 | -0.5 | % | Number of policies in force (thousands) | 199 | 201 | -1.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average face amount in force (in dollars) | Average face amount in force (in dollars) | $ | 100,529 | $ | 97,306 | 3.3 | % | Average face amount in force (in dollars) | $ | 101,734 | $ | 97,712 | 4.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lapse ratio (ordinary life insurance in force) | Lapse ratio (ordinary life insurance in force) | 4.0 | % | 4.2 | % | -0.2 | pts | Lapse ratio (ordinary life insurance in force) | 3.8 | % | 4.3 | % | -0.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortality costs | Mortality costs | $ | 23.1 | $ | 19.3 | 19.7 | % | Mortality costs | $ | 33.4 | $ | 28.3 | 18.0 | % |
Horace Mann Educators Corporation | 39 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | $ | 3.5 | $ | 3.9 | -10.3 | % | $ | 6.9 | $ | 7.9 | -12.7 | % | Interest expense | $ | 3.4 | $ | 3.4 | — | % | $ | 10.3 | $ | 11.3 | -8.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) pretax | 4.9 | 3.2 | N.M. | (4.1) | (15.3) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on net investment gains (losses) | 1.0 | 0.7 | N.M. | (0.9) | (3.3) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) after tax | 3.9 | 2.5 | N.M. | (3.2) | (12.0) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains pretax | Net investment (losses) gains pretax | (6.5) | 2.5 | N.M. | (10.6) | (12.8) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax on net investment (losses) gains | Tax on net investment (losses) gains | (1.4) | 0.6 | N.M. | (2.3) | (2.7) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (losses) gains after tax | Net investment (losses) gains after tax | (5.1) | 1.9 | N.M. | (8.3) | (10.1) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | (1.1) | (1.9) | 42.1 | % | (12.4) | (20.2) | 38.6 | % | Net loss | (9.6) | (2.0) | N.M. | (22.0) | (22.2) | 0.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core earnings (loss)* | Core earnings (loss)* | (5.0) | (4.4) | -13.6 | % | (9.2) | (8.2) | -12.2 | % | Core earnings (loss)* | (4.5) | (3.9) | -15.4 | % | (13.7) | (12.1) | -13.2 | % |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2021-2020 | Six Months Ended June 30, | 2021-2020 | ($ in millions) | Three Months Ended September 30, | 2021-2020 | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income - investment portfolio | Net investment income - investment portfolio | $ | 84.1 | $ | 56.5 | 48.8 | % | $ | 155.2 | $ | 115.1 | 34.8 | % | Net investment income - investment portfolio | $ | 78.1 | $ | 69.2 | 12.9 | % | $ | 233.3 | $ | 184.3 | 26.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income - deposit asset on reinsurance | Investment income - deposit asset on reinsurance | 25.1 | 23.9 | 5.0 | % | 49.5 | 47.6 | 4.0 | % | Investment income - deposit asset on reinsurance | 25.6 | 24.5 | 4.5 | % | 75.1 | 72.1 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net investment income | Total net investment income | 109.2 | 80.4 | 35.8 | % | 204.7 | 162.7 | 25.8 | % | Total net investment income | 103.7 | 93.7 | 10.7 | % | 308.4 | 256.4 | 20.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net investment gains (losses) | 4.9 | 3.2 | N.M. | (4.1) | (15.3) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net investment (losses) gains | Pretax net investment (losses) gains | (6.5) | 2.5 | N.M. | (10.6) | (12.8) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net unrealized investment gains on fixed maturity securities | Pretax net unrealized investment gains on fixed maturity securities | 505.6 | 417.6 | 21.1 | % | Pretax net unrealized investment gains on fixed maturity securities | 466.4 | 496.2 | -6.0 | % |
Horace Mann Educators Corporation | 40 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | June 30, 2021 | ($ in millions) | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of Issuers | Fair Value | Amortized Cost, net | Pretax Net Unrealized Gain (Loss) | Number of Issuers | Fair Value | Amortized Cost, net | Pretax Net Unrealized Gain (Loss) | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | Corporate bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Finance | 151 | $ | 514.0 | $ | 471.0 | $ | 43.0 | |||||||||||||||||||||||||||||||||||||||||||||
Banking & Finance | Banking & Finance | 148 | $ | 510.5 | $ | 470.9 | $ | 39.6 | ||||||||||||||||||||||||||||||||||||||||||||
Energy(1) | Energy(1) | 90 | 198.5 | 182.1 | 16.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 54 | 198.4 | 174.0 | 24.4 | Insurance | 54 | 197.1 | 173.3 | 23.8 | ||||||||||||||||||||||||||||||||||||||||||
Energy(1) | 82 | 193.7 | 176.1 | 17.6 | ||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare, Pharmacy | Healthcare, Pharmacy | 89 | 179.6 | 164.4 | 15.2 | Healthcare, Pharmacy | 94 | 182.6 | 168.6 | 14.0 | ||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | 45 | 138.6 | 131.0 | 7.6 | Real Estate | 45 | 139.6 | 132.9 | 6.7 | ||||||||||||||||||||||||||||||||||||||||||
Utilities | Utilities | 74 | 137.9 | 126.6 | 11.3 | Utilities | 73 | 139.6 | 128.6 | 11.0 | ||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | Miscellaneous | 39 | 133.8 | 132.7 | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Transportation | Transportation | 52 | 127.0 | 117.5 | 9.5 | Transportation | 50 | 130.0 | 121.5 | 8.5 | ||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 32 | 123.2 | 122.2 | 1.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Food and Beverage | Food and Beverage | 38 | 100.3 | 87.8 | 12.5 | Food and Beverage | 38 | 99.1 | 87.4 | 11.7 | ||||||||||||||||||||||||||||||||||||||||||
Technology | Technology | 47 | 96.0 | 89.9 | 6.1 | Technology | 45 | 97.0 | 91.9 | 5.1 | ||||||||||||||||||||||||||||||||||||||||||
All other corporates(2) | All other corporates(2) | 367 | 600.1 | 550.8 | 49.3 | All other corporates(2) | 370 | 623.8 | 578.9 | 44.9 | ||||||||||||||||||||||||||||||||||||||||||
Total corporate bonds | Total corporate bonds | 1,031 | 2,408.8 | 2,211.3 | 197.5 | Total corporate bonds | 1,046 | 2,451.6 | 2,268.8 | 182.8 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agencies | U.S. Government and federally sponsored agencies | 261 | 467.4 | 426.8 | 40.6 | U.S. Government and federally sponsored agencies | 264 | 487.2 | 452.6 | 34.6 | ||||||||||||||||||||||||||||||||||||||||||
Commercial(3) | Commercial(3) | 130 | 328.6 | 298.1 | 30.5 | Commercial(3) | 134 | 318.5 | 292.4 | 26.1 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 40 | 42.4 | 42.6 | (0.2) | Other | 38 | 35.8 | 35.5 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds(4) | Municipal bonds(4) | 612 | 1,799.1 | 1,598.6 | 200.5 | Municipal bonds(4) | 608 | 1,775.5 | 1,592.5 | 183.0 | ||||||||||||||||||||||||||||||||||||||||||
Government bonds | Government bonds | Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 39 | 456.2 | 430.5 | 25.7 | U.S. | 40 | 408.9 | 385.7 | 23.2 | ||||||||||||||||||||||||||||||||||||||||||
Foreign | Foreign | 7 | 44.4 | 40.2 | 4.2 | Foreign | 7 | 44.0 | 40.2 | 3.8 | ||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations(5) | Collateralized loan obligations(5) | 177 | 671.4 | 668.3 | 3.1 | Collateralized loan obligations(5) | 183 | 687.8 | 683.6 | 4.2 | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 107 | 336.7 | 333.0 | 3.7 | Asset-backed securities | 102 | 302.7 | 294.3 | 8.4 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 2,404 | $ | 6,555.0 | $ | 6,049.4 | $ | 505.6 | Total fixed maturity securities | 2,422 | $ | 6,512.0 | $ | 6,045.6 | $ | 466.4 | ||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | Non-redeemable preferred stocks | 26 | $ | 114.3 | Non-redeemable preferred stocks | 28 | $ | 121.3 | ||||||||||||||||||||||||||||||||||||||||||||
Common stocks | Common stocks | 93 | 9.1 | Common stocks | 93 | 8.9 | ||||||||||||||||||||||||||||||||||||||||||||||
Closed-end fund | Closed-end fund | 1 | 22.3 | Closed-end fund | 1 | 22.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 120 | $ | 145.7 | Total equity securities | 122 | $ | 152.3 | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 2,524 | $ | 6,700.7 | Total | 2,544 | $ | 6,664.3 |
Horace Mann Educators Corporation | 41 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Percent of Portfolio Fair Value | June 30, 2021 | ($ in millions) | Percent of Portfolio Fair Value | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | June 30, 2021 | Fair Value | Amortized Cost, net | December 31, 2020 | September 30, 2021 | Fair Value | Amortized Cost, net | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | 11.6 | % | 10.2 | % | $ | 667.9 | $ | 643.7 | AAA | 11.6 | % | 9.8 | % | $ | 636.5 | $ | 614.4 | ||||||||||||||||||||||||||||||||||
AA(2) | AA(2) | 40.0 | % | 38.1 | % | 2,495.9 | 2,278.5 | AA(2) | 40.0 | % | 37.6 | % | 2,450.3 | 2,256.5 | ||||||||||||||||||||||||||||||||||||||
A | A | 18.7 | % | 17.6 | % | 1,153.6 | 1,045.3 | A | 18.7 | % | 17.0 | % | 1,104.1 | 1,004.7 | ||||||||||||||||||||||||||||||||||||||
BBB | BBB | 21.2 | % | 22.0 | % | 1,440.7 | 1,311.6 | BBB | 21.2 | % | 22.0 | % | 1,433.5 | 1,316.7 | ||||||||||||||||||||||||||||||||||||||
BB | BB | 2.4 | % | 2.8 | % | 182.5 | 172.4 | BB | 2.4 | % | 2.9 | % | 185.6 | 176.3 | ||||||||||||||||||||||||||||||||||||||
B | B | 1.1 | % | 1.3 | % | 90.1 | 88.3 | B | 1.1 | % | 1.3 | % | 86.5 | 85.2 | ||||||||||||||||||||||||||||||||||||||
CCC or lower | CCC or lower | 0.1 | % | 0.1 | % | 5.3 | 5.5 | CCC or lower | 0.1 | % | — | % | 2.7 | 2.6 | ||||||||||||||||||||||||||||||||||||||
Not rated(3) | Not rated(3) | 4.9 | % | 7.9 | % | 519.0 | 504.1 | Not rated(3) | 4.9 | % | 9.4 | % | 612.8 | 589.2 | ||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 100.0 | % | 100.0 | % | $ | 6,555.0 | $ | 6,049.4 | Total fixed maturity securities | 100.0 | % | 100.0 | % | $ | 6,512.0 | $ | 6,045.6 | ||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | — | % | — | % | $ | — | AAA | — | % | — | % | $ | — | ||||||||||||||||||||||||||||||||||||||
AA | AA | — | % | — | % | — | AA | — | % | — | % | — | ||||||||||||||||||||||||||||||||||||||||
A | A | 0.7 | % | 0.5 | % | 0.8 | A | 0.7 | % | 0.5 | % | 0.8 | ||||||||||||||||||||||||||||||||||||||||
BBB | BBB | 62.2 | % | 68.2 | % | 99.3 | BBB | 62.2 | % | 66.0 | % | 100.5 | ||||||||||||||||||||||||||||||||||||||||
BB | BB | 10.9 | % | 9.1 | % | 13.2 | BB | 10.9 | % | 12.5 | % | 19.0 | ||||||||||||||||||||||||||||||||||||||||
B | B | — | % | — | % | — | B | — | % | — | % | — | ||||||||||||||||||||||||||||||||||||||||
CCC or lower | CCC or lower | — | % | — | % | — | CCC or lower | — | % | — | % | — | ||||||||||||||||||||||||||||||||||||||||
Not rated | Not rated | 26.2 | % | 22.2 | % | 32.4 | Not rated | 26.2 | % | 21.0 | % | 32.0 | ||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 100.0 | % | 100.0 | % | $ | 145.7 | Total equity securities | 100.0 | % | 100.0 | % | $ | 152.3 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 6,700.7 | Total | $ | 6,664.3 |
Horace Mann Educators Corporation | 42 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Six Months Ended June 30, | 2021-2020 | ($ in millions) | Nine Months Ended September 30, | 2021-2020 | ||||||||||||||||||||||||||||||||||
2021 | 2020 | Change % | 2021 | 2020 | Change % | |||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | $ | 116.6 | $ | 165.6 | -29.6 | % | Net cash provided by operating activities | $ | 178.1 | $ | 267.8 | -33.5 | % | ||||||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (343.1) | (195.0) | -75.9 | % | Net cash used in investing activities | (351.0) | (368.8) | 4.8 | % | ||||||||||||||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 233.6 | 86.3 | 170.7 | % | Net cash provided by financing activities | 190.8 | 141.0 | 35.3 | % | ||||||||||||||||||||||||||||||
Net increase in cash | Net increase in cash | 7.1 | 56.9 | -87.5 | % | Net increase in cash | 17.9 | 40.0 | -55.3 | % | ||||||||||||||||||||||||||||||
Cash at beginning of period | Cash at beginning of period | 22.3 | 25.5 | -12.5 | % | Cash at beginning of period | 22.3 | 25.5 | -12.5 | % | ||||||||||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 29.4 | $ | 82.4 | -64.3 | % | Cash at end of period | $ | 40.2 | $ | 65.5 | -38.6 | % |
Horace Mann Educators Corporation | 43 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Six Months Ended June 30, | 2021-2020 | 2021-2020 | ($ in millions) | Nine Months Ended September 30, | 2021-2020 | 2021-2020 | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change $ | Change % | 2021 | 2020 | Change $ | Change % | |||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of the period | Balance at beginning of the period | $ | 590.5 | $ | 495.0 | $ | 95.5 | 19.3 | % | Balance at beginning of the period | $ | 590.5 | $ | 495.0 | $ | 95.5 | 19.3 | % | ||||||||||||||||||||||||||||||||||
Advances received from FHLB funding agreements | Advances received from FHLB funding agreements | 267.0 | 95.5 | 171.5 | 179.6 | % | Advances received from FHLB funding agreements | 446.0 | 95.5 | 350.5 | N.M. | |||||||||||||||||||||||||||||||||||||||||
Principal repayments on FHLB funding agreements | Principal repayments on FHLB funding agreements | — | — | — | N.M. | Principal repayments on FHLB funding agreements | (204.0) | — | (204.0) | N.M. | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of the period | Balance at end of the period | $ | 857.5 | $ | 590.5 | $ | 267.0 | 45.2 | % | Balance at end of the period | $ | 832.5 | $ | 590.5 | $ | 242.0 | 41.0 | % |
Horace Mann Educators Corporation | 44 | Quarterly Report on Form 10-Q |
Property and Casualty | Supplemental | Retirement | Life | Corporate and Other | ||||||||||||||||||||||||||||
Activities for potential sources of funds | ||||||||||||||||||||||||||||||||
Receipt of insurance premiums, contractholder charges and fees | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||||||||
Recurring service fees, commissions and overrides | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Contractholder fund deposits | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||||
Reinsurance and indemnification program recoveries | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||||||||
Receipts of principal, interest and dividends on investments | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Sales of investments | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Funds from FHLB and line of credit agreements | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Intercompany loans | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Capital contributions from parent | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||||||||
Dividends or return of capital from subsidiaries | ☑ | |||||||||||||||||||||||||||||||
Tax refunds/settlements | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Funds from periodic issuance of additional securities | ☑ | |||||||||||||||||||||||||||||||
Proceeds from debt issuances | ☑ | |||||||||||||||||||||||||||||||
Receipt of intercompany settlements related to employee benefit plans | ☑ | |||||||||||||||||||||||||||||||
Activities for potential uses of funds | ||||||||||||||||||||||||||||||||
Payment of claims and related expenses | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||||||||
Payment of contract benefits, surrenders and withdrawals | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||||
Reinsurance cessions and indemnification program payments | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||||||||
Operating costs and expenses | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Purchase of investments | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Repayment of FHLB and line of credit agreements | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Payment or repayment of intercompany loans | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Capital contributions to subsidiaries | ☑ | |||||||||||||||||||||||||||||||
Dividends or return of capital to shareholders/parent company | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Tax payments/settlements | ☑ | ☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||||||
Common share repurchases | ☑ | |||||||||||||||||||||||||||||||
Debt service expenses and repayment | ☑ | |||||||||||||||||||||||||||||||
Payments related to employee benefit plans | ☑ | |||||||||||||||||||||||||||||||
Payments for acquisitions | ☑ |
Horace Mann Educators Corporation | 45 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 46 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Interest Rates | Final Maturity | June 30, 2021 | December 31, 2020 | ($ in millions) | Interest Rates | Final Maturity | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Interest Rates | Final Maturity | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | Short-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Credit Facility | Bank Credit Facility | Variable | 2024 | $ | 135.0 | $ | 135.0 | Bank Credit Facility | Variable | 2026 | $ | 135.0 | $ | 135.0 | |||||||||||||||||||||||||||||||||||||||
Long-term debt(1) | Long-term debt(1) | Long-term debt(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
4.50% Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.3 and $0.4 and unamortized debt issuance costs of $1.2 and $1.3 | 4.50% | 2025 | 248.5 | 248.3 | |||||||||||||||||||||||||||||||||||||||||||||||||
4.50% Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.3 and $0.4 and unamortized debt issuance costs of $1.1 and $1.3 | 4.50% Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.3 and $0.4 and unamortized debt issuance costs of $1.1 and $1.3 | 4.50% | 2025 | 248.6 | 248.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
FHLB borrowings | FHLB borrowings | 0.37% | 2022 | 30.0 | 54.0 | FHLB borrowings | 0.00% | 2022 | 5.0 | 54.0 | |||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 413.5 | $ | 437.3 | Total | $ | 388.6 | $ | 437.3 |
Horace Mann Educators Corporation | 47 | Quarterly Report on Form 10-Q |
Insurance Financial | Affirmed/ | |||||||||||||||||||||||||||||||
Strength Ratings (Outlook) | Debt Ratings (Outlook) | Reviewed | ||||||||||||||||||||||||||||||
AM Best | 7/14/2021 | |||||||||||||||||||||||||||||||
HMEC (parent company) | N.A. | bbb | (stable) | |||||||||||||||||||||||||||||
HMEC's Life subsidiary | A | (stable) | N.A. | |||||||||||||||||||||||||||||
HMEC's Property and Casualty subsidiaries | A | (stable) | N.A. | |||||||||||||||||||||||||||||
HMEC's Supplemental subsidiaries | A | (stable) | N.A. | |||||||||||||||||||||||||||||
Fitch | A | (stable) | BBB | (stable) | ||||||||||||||||||||||||||||
Moody's | A2 | (stable) | Baa2 | (stable) | ||||||||||||||||||||||||||||
S&P | A | (stable) | BBB | (stable) | 2/18/2021 |
Horace Mann Educators Corporation | 48 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 49 | Quarterly Report on Form 10-Q |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased under the Program | Approximate Dollar Value of Shares that may yet be Purchased under the Program | ||||||||||||||||||||||
April 1 - 30 | — | — | — | $ | 19.1 | million | ||||||||||||||||||||
May 1 - 31 | — | — | — | $ | 19.1 | million | ||||||||||||||||||||
June 1 - 30 | 200 | $ | 37.01 | 200 | $ | 19.1 | million | |||||||||||||||||||
Total | 200 | $ | 37.01 | 200 | $ | 19.1 | million |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased under the Program | Approximate Dollar Value of Shares that may yet be Purchased under the Program | ||||||||||||||||||||||
July 1 - 31 | 5,000 | $ | 36.88 | 5,000 | $ | 18.9 | million | |||||||||||||||||||
August 1 - 31 | — | — | — | $ | 18.9 | million | ||||||||||||||||||||
September 1 - 30 | — | — | — | $ | 18.9 | million | ||||||||||||||||||||
Total | 5,000 | $ | 36.88 | 5,000 | $ | 18.9 | million |
Exhibit | ||||||||
No. | Description | |||||||
(3) Articles of incorporation and bylaws: | ||||||||
3.1 | ||||||||
3.2 |
Horace Mann Educators Corporation | 50 | Quarterly Report on Form 10-Q |
(4) Instruments defining the rights of security holders, including indentures: | ||||||||
4.1 | ||||||||
4.1(a) | ||||||||
4.2 | ||||||||
4.3 | ||||||||
(10) Material contracts: | ||||||||
10.1 | ||||||||
10.1(a) | ||||||||
10.1(b) | ||||||||
10.2* | ||||||||
10.2(a)* | ||||||||
10.2(b)* | ||||||||
10.2(c)* | ||||||||
10.2(d)* |
Horace Mann Educators Corporation | 51 | Quarterly Report on Form 10-Q |
10.2(e)* | ||||||||
10.3* | ||||||||
10.3(a)* | ||||||||
10.3(b)* | ||||||||
10.3(c)* | ||||||||
10.3(d)* | ||||||||
10.3(e)* | ||||||||
10.3(f)* | ||||||||
10.3(g)* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
10.6* | ||||||||
Horace Mann Educators Corporation | 52 | Quarterly Report on Form 10-Q |
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10* | ||||||||
10.10(a)* | ||||||||
10.11* | ||||||||
10.11(a)* | ||||||||
10.11(b)* | ||||||||
10.12 | ||||||||
10.13 | ||||||||
10.14 | ||||||||
(31) Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002: | ||||||||
31.1 | ||||||||
31.2 | ||||||||
(32) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002: |
Horace Mann Educators Corporation | 53 | Quarterly Report on Form 10-Q |
32.1 | ||||||||
32.2 | ||||||||
(99) Additional exhibits: | ||||||||
99.1 | ||||||||
(101) Interactive Data File: | ||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Horace Mann Educators Corporation | 54 | Quarterly Report on Form 10-Q |
HORACE MANN EDUCATORS CORPORATION | |||||||||||
(Registrant) | |||||||||||
Date | /s/ Marita Zuraitis | ||||||||||
Marita Zuraitis | |||||||||||
President and Chief Executive Officer | |||||||||||
Date | /s/ Bret A. Conklin | ||||||||||
Bret A. Conklin | |||||||||||
Executive Vice President and | |||||||||||
Chief Financial Officer | |||||||||||
Date | /s/ Kimberly A. Johnson | ||||||||||
Kimberly A. Johnson | |||||||||||
Senior Vice President, Controller and | |||||||||||
Principal Accounting Officer |
Horace Mann Educators Corporation | 55 | Quarterly Report on Form 10-Q |