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, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Investments | Investments | Investments | ||||||||||||||||||||||||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2022, $6,046.5; 2021, $5,797.7) | $ | 5,688.0 | $ | 6,239.3 | ||||||||||||||||||||||||
Fixed maturity securities, available for sale, at fair value (amortized cost, net 2022, $5,904.1; 2021, $5,797.7) | Fixed maturity securities, available for sale, at fair value (amortized cost, net 2022, $5,904.1; 2021, $5,797.7) | $ | 5,272.1 | $ | 6,239.3 | |||||||||||||||||||||||
Equity securities at fair value | Equity securities at fair value | 117.3 | 147.2 | Equity securities at fair value | 113.8 | 147.2 | ||||||||||||||||||||||
Limited partnership interests | Limited partnership interests | 828.4 | 712.8 | Limited partnership interests | 997.5 | 712.8 | ||||||||||||||||||||||
Short-term and other investments | Short-term and other investments | 302.7 | 350.2 | Short-term and other investments | 254.6 | 350.2 | ||||||||||||||||||||||
Total investments | Total investments | 6,936.4 | 7,449.5 | Total investments | 6,638.0 | 7,449.5 | ||||||||||||||||||||||
Cash | Cash | 50.1 | 133.7 | Cash | 36.2 | 133.7 | ||||||||||||||||||||||
Deferred policy acquisition costs | Deferred policy acquisition costs | 389.9 | 248.0 | Deferred policy acquisition costs | 440.1 | 248.0 | ||||||||||||||||||||||
Reinsurance balances receivable | Reinsurance balances receivable | 497.6 | 153.2 | Reinsurance balances receivable | 497.5 | 153.2 | ||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,507.1 | 2,481.5 | Deposit asset on reinsurance | 2,525.6 | 2,481.5 | ||||||||||||||||||||||
Intangible assets | Intangible assets | 196.4 | 145.4 | Intangible assets | 192.2 | 145.4 | ||||||||||||||||||||||
Goodwill | Goodwill | 56.3 | 43.5 | Goodwill | 56.3 | 43.5 | ||||||||||||||||||||||
Other assets | Other assets | 313.5 | 288.1 | Other assets | 328.6 | 288.1 | ||||||||||||||||||||||
Separate Account (variable annuity) assets | 2,811.2 | 3,441.0 | ||||||||||||||||||||||||||
Separate Account variable annuity assets | Separate Account variable annuity assets | 2,599.6 | 3,441.0 | |||||||||||||||||||||||||
Total assets | Total assets | $ | 13,758.5 | $ | 14,383.9 | Total assets | $ | 13,314.1 | $ | 14,383.9 | ||||||||||||||||||
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 | $ | 7,053.8 | $ | 6,577.8 | Investment contract and policy reserves | $ | 7,068.1 | $ | 6,577.8 | ||||||||||||||||||
Unpaid claims and claim expenses | Unpaid claims and claim expenses | 490.5 | 425.9 | Unpaid claims and claim expenses | 481.9 | 425.9 | ||||||||||||||||||||||
Unearned premiums | Unearned premiums | 252.6 | 255.1 | Unearned premiums | 266.5 | 255.1 | ||||||||||||||||||||||
Total policy liabilities | Total policy liabilities | 7,796.9 | 7,258.8 | Total policy liabilities | 7,816.5 | 7,258.8 | ||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 1,027.6 | 945.9 | Other policyholder funds | 1,000.7 | 945.9 | ||||||||||||||||||||||
Other liabilities | Other liabilities | 364.9 | 428.2 | Other liabilities | 322.8 | 428.2 | ||||||||||||||||||||||
Short-term debt | Short-term debt | 249.0 | 249.0 | Short-term debt | 249.0 | 249.0 | ||||||||||||||||||||||
Long-term debt | Long-term debt | 248.8 | 253.6 | Long-term debt | 248.9 | 253.6 | ||||||||||||||||||||||
Separate Account (variable annuity) liabilities | 2,811.2 | 3,441.0 | ||||||||||||||||||||||||||
Separate Account variable annuity liabilities | Separate Account variable annuity liabilities | 2,599.6 | 3,441.0 | |||||||||||||||||||||||||
Total liabilities | Total liabilities | 12,498.4 | 12,576.5 | Total liabilities | 12,237.5 | 12,576.5 | ||||||||||||||||||||||
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 | — | — | 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, 2022, 66,608,045; 2021, 66,436,821 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2022, 66,612,323; 2021, 66,436,821 | Common stock, $0.001 par value, authorized 75,000,000 shares; issued, 2022, 66,612,323; 2021, 66,436,821 | 0.1 | 0.1 | |||||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 498.1 | 495.3 | Additional paid-in capital | 500.4 | 495.3 | ||||||||||||||||||||||
Retained earnings | Retained earnings | 1,499.9 | 1,524.9 | Retained earnings | 1,500.4 | 1,524.9 | ||||||||||||||||||||||
Accumulated other comprehensive (loss) income, net of tax: | ||||||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net of tax: | Accumulated other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||
Net unrealized investment gains (losses) on fixed maturity securities | Net unrealized investment gains (losses) on fixed maturity securities | (220.4) | 290.7 | Net unrealized investment gains (losses) on fixed maturity securities | (396.7) | 290.7 | ||||||||||||||||||||||
Net funded status of benefit plans | Net funded status of benefit plans | (10.2) | (10.2) | Net funded status of benefit plans | (10.2) | (10.2) | ||||||||||||||||||||||
Treasury stock, at cost, 2022, 25,418,708 shares; 2021, 25,043,337 shares | (507.4) | (493.4) | ||||||||||||||||||||||||||
Treasury stock, at cost, 2022, 25,714,153 shares; 2021, 25,043,337 shares | Treasury stock, at cost, 2022, 25,714,153 shares; 2021, 25,043,337 shares | (517.4) | (493.4) | |||||||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 1,260.1 | 1,807.4 | Total shareholders’ equity | 1,076.6 | 1,807.4 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity | Total liabilities and shareholders’ equity | $ | 13,758.5 | $ | 14,383.9 | Total liabilities and shareholders’ equity | $ | 13,314.1 | $ | 14,383.9 |
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, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Statements of Operations | Statements of Operations | Statements of Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | $ | 255.8 | $ | 225.8 | $ | 511.7 | $ | 453.4 | Net premiums and contract charges earned | $ | 257.8 | $ | 225.4 | $ | 769.5 | $ | 678.8 | ||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 105.2 | 109.2 | 203.1 | 204.7 | Net investment income | 97.6 | 103.7 | 300.7 | 308.4 | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (15.5) | 4.9 | (31.0) | (4.1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Net investment losses | Net investment losses | (12.8) | (6.5) | (43.8) | (10.6) | |||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 0.8 | 7.2 | 9.3 | 15.1 | Other income | 0.4 | 7.0 | 9.7 | 22.1 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 346.3 | 347.1 | 693.1 | 669.1 | Total revenues | 343.0 | 329.6 | 1,036.1 | 998.7 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, losses and expenses | Benefits, losses and expenses | Benefits, losses and expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 207.6 | 147.1 | 384.6 | 281.4 | Benefits, claims and settlement expenses | 173.6 | 164.8 | 558.2 | 446.2 | ||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 42.4 | 51.2 | 83.2 | 101.8 | Interest credited | 45.9 | 51.9 | 129.1 | 153.7 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 77.3 | 60.5 | 154.1 | 118.5 | Operating expenses | 75.6 | 64.3 | 229.7 | 182.8 | ||||||||||||||||||||||||||||||||||||||||||
DAC unlocking and amortization expense | DAC unlocking and amortization expense | 27.0 | 23.5 | 53.4 | 47.6 | DAC unlocking and amortization expense | 23.3 | 22.9 | 76.7 | 70.5 | ||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 4.2 | 3.2 | 8.4 | 6.5 | Intangible asset amortization expense | 4.2 | 3.3 | 12.6 | 9.8 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 4.3 | 3.5 | 8.2 | 7.0 | Interest expense | 5.3 | 3.4 | 13.5 | 10.4 | ||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | Total benefits, losses and expenses | 362.8 | 289.0 | 691.9 | 562.8 | Total benefits, losses and expenses | 327.9 | 310.6 | 1,019.8 | 873.4 | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (16.5) | 58.1 | 1.2 | 106.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (4.0) | 11.4 | (0.8) | 20.3 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 15.1 | 19.0 | 16.3 | 125.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 1.2 | 2.7 | 0.4 | 23.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (12.5) | $ | 46.7 | $ | 2.0 | $ | 86.0 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 13.9 | $ | 16.3 | $ | 15.9 | $ | 102.3 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income per share | Net income per share | |||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | $ | (0.30) | $ | 1.11 | $ | 0.05 | $ | 2.05 | Basic | $ | 0.33 | $ | 0.39 | $ | 0.38 | $ | 2.44 | ||||||||||||||||||||||||||||||||||
Diluted | Diluted | $ | (0.30) | $ | 1.11 | $ | 0.05 | $ | 2.04 | Diluted | $ | 0.33 | $ | 0.39 | $ | 0.38 | $ | 2.43 | ||||||||||||||||||||||||||||||||||
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 | 41.8 | 42.0 | 41.8 | 42.0 | Basic | 41.4 | 42.0 | 41.7 | 42.0 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 41.8 | 42.1 | 42.0 | 42.1 | Diluted | 41.6 | 42.2 | 41.9 | 42.2 | ||||||||||||||||||||||||||||||||||||||||||
Statements of Comprehensive Income (Loss) | Statements of Comprehensive Income (Loss) | Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (12.5) | $ | 46.7 | $ | 2.0 | $ | 86.0 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 13.9 | $ | 16.3 | $ | 15.9 | $ | 102.3 | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (240.4) | 88.6 | (511.1) | (34.1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment losses on fixed maturity securities | Change in net unrealized investment losses on fixed maturity securities | (176.3) | (25.3) | (687.4) | (59.4) | |||||||||||||||||||||||||||||||||||||||||||||||
Change in net funded status of benefit plans | Change in net funded status of benefit plans | — | — | — | — | Change in net funded status of benefit plans | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (240.4) | 88.6 | (511.1) | (34.1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | (176.3) | (25.3) | (687.4) | (59.4) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) | $ | (252.9) | $ | 135.3 | $ | (509.1) | $ | 51.9 | Comprehensive income (loss) | $ | (162.4) | $ | (9.0) | $ | (671.5) | $ | 42.9 |
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, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
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 | 496.6 | 489.2 | 495.3 | 488.4 | Beginning balance | 498.1 | 490.7 | 495.3 | 488.4 | ||||||||||||||||||||||||||||||||||||||||||
Options exercised and conversion of common stock units and restricted stock units | Options exercised and conversion of common stock units and restricted stock units | (0.7) | — | (1.2) | (1.2) | Options exercised and conversion of common stock units and restricted stock units | 0.2 | 0.2 | (1.1) | (1.0) | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | 2.2 | 1.5 | 4.0 | 3.5 | Share-based compensation expense | 2.1 | 2.0 | 6.2 | 5.5 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 498.1 | 490.7 | 498.1 | 490.7 | Ending balance | 500.4 | 492.9 | 500.4 | 492.9 | ||||||||||||||||||||||||||||||||||||||||||
Retained earnings | Retained earnings | Retained earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | 1,525.9 | 1,460.8 | 1,524.9 | 1,434.6 | Beginning balance | 1,499.9 | 1,494.4 | 1,524.9 | 1,434.6 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (12.5) | 46.7 | 2.0 | 86.0 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 13.9 | 16.3 | 15.9 | 102.3 | |||||||||||||||||||||||||||||||||||||||||||||||
Dividends, 2022, $0.32 per share; 2021, $0.31 per share | Dividends, 2022, $0.32 per share; 2021, $0.31 per share | (13.5) | (13.1) | (27.0) | (26.2) | Dividends, 2022, $0.32 per share; 2021, $0.31 per share | (13.4) | (13.2) | (40.4) | (39.4) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | 1,499.9 | 1,494.4 | 1,499.9 | 1,494.4 | Ending balance | 1,500.4 | 1,497.5 | 1,500.4 | 1,497.5 | ||||||||||||||||||||||||||||||||||||||||||
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 | 9.8 | 232.4 | 280.5 | 355.1 | Beginning balance | (230.6) | 321.0 | 280.5 | 355.1 | ||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (240.4) | 88.6 | (511.1) | (34.1) | ||||||||||||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment losses on fixed maturity securities | Change in net unrealized investment losses on fixed maturity securities | (176.3) | (25.3) | (687.4) | (59.4) | |||||||||||||||||||||||||||||||||||||||||||||||
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 | (230.6) | 321.0 | (230.6) | 321.0 | Ending balance | (406.9) | 295.7 | (406.9) | 295.7 | ||||||||||||||||||||||||||||||||||||||||||
Treasury stock, at cost | Treasury stock, at cost | Treasury stock, at cost | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | (495.6) | (489.6) | (493.4) | (488.1) | Beginning balance | (507.4) | (489.6) | (493.4) | (488.1) | ||||||||||||||||||||||||||||||||||||||||||
Acquisition of shares | Acquisition of shares | (11.8) | — | (14.0) | (1.5) | Acquisition of shares | (10.0) | (0.2) | (24.0) | (1.7) | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | (507.4) | (489.6) | (507.4) | (489.6) | Ending balance | (517.4) | (489.8) | (517.4) | (489.8) | ||||||||||||||||||||||||||||||||||||||||||
Shareholders' equity at end of period | Shareholders' equity at end of period | $ | 1,260.1 | $ | 1,816.6 | $ | 1,260.1 | $ | 1,816.6 | Shareholders' equity at end of period | $ | 1,076.6 | $ | 1,796.4 | $ | 1,076.6 | $ | 1,796.4 |
Horace Mann Educators Corporation | 4 | Quarterly Report on Form 10-Q |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Cash flows - operating activities | Cash flows - operating activities | Cash flows - operating activities | ||||||||||||||||||||||||||
Net income | Net income | $ | 2.0 | $ | 86.0 | Net income | $ | 15.9 | $ | 102.3 | ||||||||||||||||||
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 | 31.0 | 4.1 | Net investment losses | 43.8 | 10.6 | ||||||||||||||||||||||
Depreciation and intangible asset amortization | Depreciation and intangible asset amortization | 7.9 | 11.1 | Depreciation and intangible asset amortization | 20.7 | 16.7 | ||||||||||||||||||||||
Share-based compensation expense | Share-based compensation expense | 4.4 | 3.8 | Share-based compensation expense | 6.7 | 6.0 | ||||||||||||||||||||||
Income from equity method investments, net of dividends or distributions | Income from equity method investments, net of dividends or distributions | (3.8) | (24.6) | Income from equity method investments, net of dividends or distributions | 2.1 | (31.1) | ||||||||||||||||||||||
Changes in: | Changes in: | Changes in: | ||||||||||||||||||||||||||
Accrued investment income | (4.6) | (3.3) | ||||||||||||||||||||||||||
Insurance liabilities | Insurance liabilities | 411.8 | 35.6 | Insurance liabilities | 403.3 | 75.1 | ||||||||||||||||||||||
Amounts due under reinsurance agreements | Amounts due under reinsurance agreements | (344.3) | (1.3) | Amounts due under reinsurance agreements | (344.3) | (1.6) | ||||||||||||||||||||||
Income tax liabilities | Income tax liabilities | (6.3) | 6.5 | Income tax liabilities | (6.0) | 2.3 | ||||||||||||||||||||||
Other operating assets and liabilities | Other operating assets and liabilities | (21.2) | (5.8) | Other operating assets and liabilities | (31.0) | (9.0) | ||||||||||||||||||||||
Other | 3.1 | 4.5 | ||||||||||||||||||||||||||
Other, net | Other, net | 4.6 | 6.8 | |||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 80.0 | 116.6 | Net cash provided by operating activities | 115.8 | 178.1 | ||||||||||||||||||||||
Cash flows - investing activities | Cash flows - investing activities | Cash flows - investing activities | ||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||
Purchases | Purchases | (784.6) | (872.3) | Purchases | (901.3) | (1,228.1) | ||||||||||||||||||||||
Sales | Sales | 365.3 | 163.8 | Sales | 529.9 | 319.2 | ||||||||||||||||||||||
Maturities, paydowns, calls and redemptions | Maturities, paydowns, calls and redemptions | 346.8 | 443.7 | Maturities, paydowns, calls and redemptions | 428.8 | 631.5 | ||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||
Purchases | Purchases | (4.3) | (36.1) | Purchases | (4.5) | (45.0) | ||||||||||||||||||||||
Sales and repayments | Sales and repayments | 6.8 | 0.7 | Sales and repayments | 7.0 | 1.0 | ||||||||||||||||||||||
Limited partnership interests | Limited partnership interests | Limited partnership interests | ||||||||||||||||||||||||||
Purchases | Purchases | (147.8) | (141.4) | Purchases | (332.3) | (202.1) | ||||||||||||||||||||||
Sales | Sales | 36.4 | 41.2 | Sales | 45.5 | 69.4 | ||||||||||||||||||||||
Change in short-term and other investments, net | Change in short-term and other investments, net | 49.7 | 57.3 | Change in short-term and other investments, net | 95.4 | 103.1 | ||||||||||||||||||||||
Acquisition of business, net of cash acquired | Acquisition of business, net of cash acquired | (164.4) | — | Acquisition of business, net of cash acquired | (164.4) | — | ||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (296.1) | (343.1) | Net cash used in investing activities | (295.9) | (351.0) | ||||||||||||||||||||||
Cash flows - financing activities | Cash flows - financing activities | Cash flows - financing activities | ||||||||||||||||||||||||||
Dividends paid to shareholders | Dividends paid to shareholders | (26.4) | (25.7) | Dividends paid to shareholders | (39.5) | (38.6) | ||||||||||||||||||||||
FHLB borrowings | FHLB borrowings | — | 1.0 | FHLB borrowings | — | 1.0 | ||||||||||||||||||||||
Principal repayment on FHLB borrowings | Principal repayment on FHLB borrowings | (5.0) | (25.0) | Principal repayment on FHLB borrowings | (5.0) | (50.0) | ||||||||||||||||||||||
Acquisition of treasury stock | Acquisition of treasury stock | (14.0) | (1.5) | Acquisition of treasury stock | (24.0) | (1.7) | ||||||||||||||||||||||
Proceeds from exercise of stock options | Proceeds from exercise of stock options | — | 0.3 | Proceeds from exercise of stock options | — | 0.3 | ||||||||||||||||||||||
Withholding tax payments on RSUs tendered | Withholding tax payments on RSUs tendered | (2.3) | (2.0) | Withholding tax payments on RSUs tendered | (2.4) | (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 | 332.9 | 515.9 | Deposits | 516.7 | 833.2 | ||||||||||||||||||||||
Benefits, withdrawals and net transfers to Separate Account (variable annuity) assets | (223.4) | (216.2) | ||||||||||||||||||||||||||
Benefits, withdrawals and net transfers to Separate Account variable annuity assets | Benefits, withdrawals and net transfers to Separate Account variable annuity assets | (340.6) | (342.1) | |||||||||||||||||||||||||
Principal repayment on FHLB funding agreements | Principal repayment on FHLB funding agreements | (10.0) | — | Principal repayment on FHLB funding agreements | (94.0) | (204.0) | ||||||||||||||||||||||
Life policy accounts: | Life policy accounts: | Life policy accounts: | ||||||||||||||||||||||||||
Deposits | Deposits | 4.6 | 4.4 | Deposits | 7.7 | 6.7 | ||||||||||||||||||||||
Withdrawals and surrenders | Withdrawals and surrenders | (1.9) | (2.1) | Withdrawals and surrenders | (2.8) | (3.0) | ||||||||||||||||||||||
Change in deposit asset on reinsurance | Change in deposit asset on reinsurance | (24.4) | (13.0) | Change in deposit asset on reinsurance | (32.4) | (17.2) | ||||||||||||||||||||||
Net increase in reverse repurchase agreements | Net increase in reverse repurchase agreements | 95.8 | — | Net increase in reverse repurchase agreements | 95.2 | — | ||||||||||||||||||||||
Change in book overdrafts | Change in book overdrafts | 6.6 | (2.5) | Change in book overdrafts | 3.7 | 8.2 | ||||||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 132.5 | 233.6 | Net cash provided by financing activities | 82.6 | 190.8 | ||||||||||||||||||||||
Net increase (decrease) in cash | Net increase (decrease) in cash | (83.6) | 7.1 | Net increase (decrease) in cash | (97.5) | 17.9 | ||||||||||||||||||||||
Cash at beginning of period | Cash at beginning of period | 133.7 | 22.3 | Cash at beginning of period | 133.7 | 22.3 | ||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 50.1 | $ | 29.4 | Cash at end of period | $ | 36.2 | $ | 40.2 |
Horace Mann Educators Corporation | 5 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 6 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 7 | Quarterly Report on Form 10-Q |
Area of significant change | Impacts at transition (January 1, 2021) | Impacts subsequent to the effective date | ||||||
Cash flow assumptions for measuring the liability for future policy benefits | ||||||||
Under current accounting guidance, assumptions for traditional long-duration insurance contracts (e.g., mortality, lapses, etc.), are locked-in at issuance. The new guidance requires insurers to review, and if necessary, update the cash flow assumptions used to measure liabilities for future policy benefits periodically. The change in the liability estimate as a result of updating cash flow assumptions will be recognized in net income. | The Company expects to adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. Upon adoption, there will be an adjustment to retained earnings as a result of capping the net premium ratio at 100%. The Company expects the impact of such adjustment will likely result in an after-tax decrease to retained earnings of less than $5 million. | The Company does not expect any material impacts to its results of operations subsequent to the effective date of the ASU. | ||||||
Discount rate assumption for measuring the liability for future policy benefits | ||||||||
Under current accounting guidance, the-then current discount rate is locked-in at issuance. The new guidance requires insurers to update the discount rate assumption used to measure liabilities for future policy benefits at each reporting period, and the discount rate utilized must be based on an upper-medium grade fixed income instrument yield. The change in the liability estimate as a result of updating the discount rate assumption will be recognized in other comprehensive income. | The Company expects to adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. Upon adoption, there will be an adjustment to accumulated other comprehensive income (AOCI) as a result of remeasuring in force contract liabilities using a standard discount rate to measure the liabilities that will be equivalent to the yield from a high-quality bond and the adjustment will largely reflect the difference between discount rates locked-in at contract inception versus current discount rates at transition. The Company currently estimates that the transition date impact from adoption is likely to result in an after-tax decrease to AOCI in a range between | The Company expects material impacts to AOCI subsequent to the effective date of the ASU due to subsequent increases and decreases in discount rates. | ||||||
Market risk benefits | ||||||||
Under current accounting guidance, certain benefit features of annuity contracts (e.g., GMDB, etc.) are accounted for using a benefit ratio methodology. The new guidance created a new category of benefit features called market risk benefits that will be measured at fair value with changes in fair value attributable to a change in the instrument-specific credit risk recognized in other comprehensive income. | The Company will adopt this guidance on a retrospective basis as of the earliest period presented in the year of adoption. Upon adoption, the Company expects an impact to AOCI for the cumulative effect of changes in the instrument-specific credit risk between contract issue date and transition date and retained earnings for the difference between fair value and carrying value at the transition date, excluding the changes in the instrument-specific credit risk. The Company is currently evaluating the impact of these adjustments but anticipates they will likely reduce AOCI and retained earnings by less than $15 million after-tax. | Subsequent to the effective date of the ASU, the Company expects market risk benefits will add volatility to benefits expense which could be material. The Company is currently evaluating the impacts of these adjustments subsequent to the effective date of the ASU. | ||||||
Deferred policy acquisition costs (DAC) including shadow DAC | ||||||||
Under current accounting guidance, for all annuity contracts, DAC is amortized over 20 years in proportion to estimated gross profits. For individual life contracts, DAC is amortized in proportion to anticipated premiums over the terms of the insurance policies (10, 15, 20, 30) years. For IUL, DAC is amortized in proportion to estimated gross profits over 30 years. The new guidance requires DAC and other balances to be amortized on a constant level basis over the expected term of the related contracts. | The Company expects to adopt this guidance on a modified retrospective basis as of the earliest period presented in the year of adoption. Upon adoption, the Company expects an adjustment to AOCI for the removal of cumulative adjustments to DAC associated with unrealized investment gains and losses previously recorded in AOCI. The impact of this adjustment will likely result in an after-tax increase to AOCI in a range between | Subsequent to the effective date of the ASU, the Company expects a significant reduction in volatility of DAC unlocking due to the removal of investment performance and market impacts and an insignificant decrease in amortization expense due to the treatment of interest expense and method of amortizing DAC. |
Horace Mann Educators Corporation | 8 | Quarterly Report on Form 10-Q |
($ in millions) | ||||||||
Assets: | ||||||||
Investments | $ | 90.4 | ||||||
Cash and short-term investments | 123.4 | |||||||
Reinsurance recoverable | 356.0 | |||||||
Intangible assets(1) | 59.4 | |||||||
Other assets | 23.2 | |||||||
Liabilities: | ||||||||
Investment contract and policy reserves | 274.5 | |||||||
Unpaid claims and claim expenses | 48.2 | |||||||
Unearned premiums | 1.5 | |||||||
Other policyholder funds | 152.8 | |||||||
Other liabilities | 15.9 | |||||||
Total identifiable net assets acquired | 159.5 | |||||||
Goodwill(2) | 12.8 | |||||||
Purchase price | $ | 172.3 |
Horace Mann Educators Corporation | 9 | 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | $ | 62.0 | $ | 59.4 | $ | 120.6 | $ | 117.4 | Fixed maturity securities | $ | 63.9 | $ | 59.8 | $ | 184.5 | $ | 177.2 | ||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 4.0 | 1.3 | 5.3 | 2.4 | Equity securities | 1.8 | 1.4 | 7.1 | 3.8 | ||||||||||||||||||||||||||||||||||||||||||
Limited partnership interests | Limited partnership interests | 13.2 | 23.0 | 26.2 | 34.3 | Limited partnership interests | 5.1 | 16.8 | 31.3 | 51.1 | ||||||||||||||||||||||||||||||||||||||||||
Short-term and other investments | Short-term and other investments | 2.7 | 2.9 | 5.4 | 5.7 | Short-term and other investments | 2.8 | 2.8 | 8.2 | 8.5 | ||||||||||||||||||||||||||||||||||||||||||
Investment expenses | Investment expenses | (2.5) | (2.5) | (5.1) | (4.6) | Investment expenses | (2.7) | (2.7) | (7.8) | (7.3) | ||||||||||||||||||||||||||||||||||||||||||
Net investment income - investment portfolio | Net investment income - investment portfolio | 79.4 | 84.1 | 152.4 | 155.2 | Net investment income - investment portfolio | 70.9 | 78.1 | 223.3 | 233.3 | ||||||||||||||||||||||||||||||||||||||||||
Investment income - deposit asset on reinsurance | Investment income - deposit asset on reinsurance | 25.8 | 25.1 | 50.7 | 49.5 | Investment income - deposit asset on reinsurance | 26.7 | 25.6 | 77.4 | 75.1 | ||||||||||||||||||||||||||||||||||||||||||
Total net investment income | Total net investment income | $ | 105.2 | $ | 109.2 | $ | 203.1 | $ | 204.7 | Total net investment income | $ | 97.6 | $ | 103.7 | $ | 300.7 | $ | 308.4 |
($ 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | $ | (2.9) | $ | 1.5 | $ | (5.2) | $ | (3.9) | Fixed maturity securities | $ | (10.7) | $ | (4.0) | $ | (15.9) | $ | (7.9) | ||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | (12.6) | 4.4 | (28.1) | 1.7 | Equity securities | (4.4) | (1.0) | (32.5) | 0.7 | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments and other | Short-term investments and other | — | (1.0) | 2.3 | (1.9) | Short-term investments and other | 2.3 | (1.5) | 4.6 | (3.4) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | (15.5) | $ | 4.9 | $ | (31.0) | $ | (4.1) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment losses | Net investment losses | $ | (12.8) | $ | (6.5) | $ | (43.8) | $ | (10.6) |
($ 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Credit loss impairments | Credit loss impairments | $ | (1.3) | $ | — | $ | (2.2) | $ | (1.1) | Credit loss impairments | $ | (0.6) | $ | (6.6) | $ | (2.8) | $ | (7.7) | ||||||||||||||||||||||||||||||||||
Intent-to-sell impairments | Intent-to-sell impairments | (0.5) | — | (1.4) | (2.1) | Intent-to-sell impairments | (6.2) | — | (7.6) | (2.1) | ||||||||||||||||||||||||||||||||||||||||||
Total impairments on investments recognized in net income | (1.8) | — | (3.6) | (3.2) | ||||||||||||||||||||||||||||||||||||||||||||||||
Total impairments | Total impairments | (6.8) | (6.6) | (10.4) | (9.8) | |||||||||||||||||||||||||||||||||||||||||||||||
Sales and other, net | Sales and other, net | (1.1) | 1.6 | — | (0.5) | Sales and other, net | (3.9) | 2.7 | (3.9) | 2.2 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value - equity securities | Change in fair value - equity securities | (12.6) | 4.3 | (29.7) | 1.5 | Change in fair value - equity securities | (4.4) | (1.1) | (34.1) | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value and gains (losses) realized on settlements - derivatives | Change in fair value and gains (losses) realized on settlements - derivatives | — | (1.0) | 2.3 | (1.9) | Change in fair value and gains (losses) realized on settlements - derivatives | 2.3 | (1.5) | 4.6 | (3.4) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | (15.5) | $ | 4.9 | $ | (31.0) | $ | (4.1) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment losses | Net investment losses | $ | (12.8) | $ | (6.5) | $ | (43.8) | $ | (10.6) |
Horace Mann Educators Corporation | 10 | 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 8.3 | $ | 1.1 | $ | 7.7 | $ | — | Beginning balance | $ | 9.5 | $ | 1.1 | $ | 7.7 | $ | — | ||||||||||||||||||||||||||||||||||
Credit losses on fixed maturity securities for which credit losses were not previously reported | Credit losses on fixed maturity securities for which credit losses were not previously reported | — | — | — | 1.1 | Credit losses on fixed maturity securities for which credit losses were not previously reported | — | 6.6 | — | 7.7 | ||||||||||||||||||||||||||||||||||||||||||
Net increase related to credit losses previously reported | Net increase related to credit losses previously reported | 1.3 | — | 2.2 | — | Net increase related to credit losses previously reported | 0.6 | — | 2.8 | — | ||||||||||||||||||||||||||||||||||||||||||
Reduction of credit allowances related to sales | Reduction of credit allowances related to sales | — | — | — | — | Reduction of credit allowances related to sales | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Write-offs | Write-offs | (0.1) | — | (0.4) | — | Write-offs | — | — | (0.4) | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 9.5 | $ | 1.1 | $ | 9.5 | $ | 1.1 | Ending balance | $ | 10.1 | $ | 7.7 | $ | 10.1 | $ | 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 640.4 | $ | 5.2 | $ | 33.8 | $ | 611.8 | Mortgage-backed securities | $ | 643.7 | $ | 1.5 | $ | 66.1 | $ | 579.1 | ||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 406.7 | 3.9 | 42.0 | 368.6 | Other, including U.S. Treasury securities | 408.3 | 0.4 | 66.0 | 342.7 | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,476.7 | 30.4 | 80.8 | 1,426.3 | Municipal bonds | 1,440.9 | 14.5 | 147.5 | 1,307.9 | ||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 41.2 | 0.7 | 0.5 | 41.4 | Foreign government bonds | 37.2 | — | 1.7 | 35.5 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,342.9 | 21.8 | 214.2 | 2,150.5 | Corporate bonds | 2,228.8 | 10.0 | 311.0 | 1,927.8 | ||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,138.6 | 4.5 | 53.7 | 1,089.4 | Other asset-backed securities | 1,145.2 | 2.9 | 69.0 | 1,079.1 | ||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 6,046.5 | $ | 66.5 | $ | 425.0 | $ | 5,688.0 | Totals | $ | 5,904.1 | $ | 29.3 | $ | 661.3 | $ | 5,272.1 | ||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 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 | $ | 612.1 | $ | 51.9 | $ | 1.5 | $ | 662.5 | Mortgage-backed securities | $ | 612.1 | $ | 51.9 | $ | 1.5 | $ | 662.5 | ||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 342.5 | 27.7 | 4.3 | 365.9 | Other, including U.S. Treasury securities | 342.5 | 27.7 | 4.3 | 365.9 | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,519.7 | 184.4 | 0.7 | 1,703.4 | Municipal bonds | 1,519.7 | 184.4 | 0.7 | 1,703.4 | ||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 40.2 | 3.4 | — | 43.6 | Foreign government bonds | 40.2 | 3.4 | — | 43.6 | ||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,217.7 | 176.2 | 5.2 | 2,388.7 | Corporate bonds | 2,217.7 | 176.2 | 5.2 | 2,388.7 | ||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,065.5 | 16.6 | 6.9 | 1,075.2 | Other asset-backed securities | 1,065.5 | 16.6 | 6.9 | 1,075.2 | ||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 5,797.7 | $ | 460.2 | $ | 18.6 | $ | 6,239.3 | Totals | $ | 5,797.7 | $ | 460.2 | $ | 18.6 | $ | 6,239.3 |
Horace Mann Educators Corporation | 11 | 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 478.9 | $ | 30.3 | $ | 9.8 | $ | 3.5 | $ | 488.7 | $ | 33.8 | Mortgage-backed securities | $ | 472.2 | $ | 51.5 | $ | 51.3 | $ | 14.6 | $ | 523.5 | $ | 66.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 235.9 | 24.8 | 44.8 | 17.2 | 280.7 | 42.0 | Other | 266.6 | 36.6 | 58.0 | 29.4 | 324.6 | 66.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 919.4 | 80.4 | 1.5 | 0.4 | 920.9 | 80.8 | Municipal bonds | 1,035.5 | 143.5 | 9.7 | 4.0 | 1,045.2 | 147.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 14.2 | 0.5 | — | — | 14.2 | 0.5 | Foreign government bonds | 35.4 | 1.7 | — | — | 35.4 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 1,620.9 | 199.6 | 68.2 | 14.6 | 1,689.1 | 214.2 | Corporate bonds | 1,496.6 | 280.0 | 80.3 | 31.0 | 1,576.9 | 311.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 798.1 | 42.3 | 152.7 | 11.4 | 950.8 | 53.7 | Other asset-backed securities | 776.2 | 52.4 | 213.9 | 16.6 | 990.1 | 69.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 4,067.4 | $ | 377.9 | $ | 277.0 | $ | 47.1 | $ | 4,344.4 | $ | 425.0 | Total | $ | 4,082.5 | $ | 565.7 | $ | 413.2 | $ | 95.6 | $ | 4,495.7 | $ | 661.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of positions with a gross unrealized loss | Number of positions with a gross unrealized loss | 2,858 | 197 | 3,055 | Number of positions with a gross unrealized loss | 3,002 | 303 | 3,305 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 71.5 | % | 4.9 | % | 76.4 | % | Fair value as a percentage of total fixed maturity securities at fair value | 77.4 | % | 7.8 | % | 85.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 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 | $ | 67.4 | $ | 1.3 | $ | 3.9 | $ | 0.2 | $ | 71.3 | $ | 1.5 | Mortgage-backed securities | $ | 67.4 | $ | 1.3 | $ | 3.9 | $ | 0.2 | $ | 71.3 | $ | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 59.5 | 1.7 | 35.1 | 2.6 | 94.6 | 4.3 | Other | 59.5 | 1.7 | 35.1 | 2.6 | 94.6 | 4.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 56.8 | 0.7 | 0.6 | — | 57.4 | 0.7 | Municipal bonds | 56.8 | 0.7 | 0.6 | — | 57.4 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | — | — | — | — | — | — | Foreign government bonds | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 220.7 | 3.8 | 44.1 | 1.4 | 264.8 | 5.2 | Corporate bonds | 220.7 | 3.8 | 44.1 | 1.4 | 264.8 | 5.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 379.0 | 3.8 | 128.2 | 3.1 | 507.2 | 6.9 | Other asset-backed securities | 379.0 | 3.8 | 128.2 | 3.1 | 507.2 | 6.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 783.4 | $ | 11.3 | $ | 211.9 | $ | 7.3 | $ | 995.3 | $ | 18.6 | Total | $ | 783.4 | $ | 11.3 | $ | 211.9 | $ | 7.3 | $ | 995.3 | $ | 18.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of positions with a gross unrealized loss | Number of positions with a gross unrealized loss | 516 | 122 | 638 | Number of positions with a gross unrealized loss | 516 | 122 | 638 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 12.6 | % | 3.4 | % | 16.0 | % | Fair value as a percentage of total fixed maturity securities at fair value | 12.6 | % | 3.4 | % | 16.0 | % |
Horace Mann Educators Corporation | 12 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Percent of Total Fair Value | June 30, 2022 | ($ in millions) | Percent of Total Fair Value | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | Fair Value | Amortized Cost, net | September 30, 2022 | December 31, 2021 | 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 | 4.0 | % | 4.0 | % | $ | 227.5 | $ | 225.0 | Due in 1 year or less | 3.9 | % | 4.0 | % | $ | 204.0 | $ | 204.6 | ||||||||||||||||||||||||||||||||||
Due after 1 year through 5 years | Due after 1 year through 5 years | 26.2 | 27.0 | 1,490.6 | 1,527.0 | Due after 1 year through 5 years | 26.0 | 27.0 | 1,369.3 | 1,439.0 | ||||||||||||||||||||||||||||||||||||||||||
Due after 5 years through 10 years | Due after 5 years through 10 years | 28.0 | 27.7 | 1,591.0 | 1,656.3 | Due after 5 years through 10 years | 28.3 | 27.7 | 1,492.6 | 1,621.7 | ||||||||||||||||||||||||||||||||||||||||||
Due after 10 years through 20 years | Due after 10 years through 20 years | 25.1 | 23.9 | 1,426.7 | 1,534.6 | Due after 10 years through 20 years | 25.5 | 23.9 | 1,348.3 | 1,551.8 | ||||||||||||||||||||||||||||||||||||||||||
Due after 20 years | Due after 20 years | 16.7 | 17.4 | 952.2 | 1,103.6 | Due after 20 years | 16.3 | 17.4 | 857.9 | 1,087.0 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | 100.0 | % | 100.0 | % | $ | 5,688.0 | $ | 6,046.5 | Total | 100.0 | % | 100.0 | % | $ | 5,272.1 | $ | 5,904.1 | ||||||||||||||||||||||||||||||||||
Average option-adjusted duration, in years | Average option-adjusted duration, in years | 6.5 | 6.7 | Average option-adjusted duration, in years | 6.5 | 6.7 |
($ 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds received | Proceeds received | $ | 197.0 | $ | 68.3 | $ | 365.3 | $ | 163.8 | Proceeds received | $ | 164.6 | $ | 155.4 | $ | 529.9 | $ | 319.2 | ||||||||||||||||||||||||||||||||||
Gross gains realized | Gross gains realized | 1.2 | 1.7 | 3.6 | 3.0 | Gross gains realized | 1.1 | 3.2 | 4.7 | 6.2 | ||||||||||||||||||||||||||||||||||||||||||
Gross losses realized | Gross losses realized | (2.3) | (0.2) | (5.2) | (3.6) | Gross losses realized | (5.0) | (0.7) | (10.2) | (4.3) | ||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds received | Proceeds received | $ | — | $ | 0.3 | $ | 5.8 | $ | 0.7 | Proceeds received | $ | 0.2 | $ | 0.3 | $ | 6.0 | $ | 1.0 | ||||||||||||||||||||||||||||||||||
Gross gains realized | Gross gains realized | — | 0.1 | 1.7 | 0.2 | Gross gains realized | — | 0.1 | 1.7 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
Gross losses realized | Gross losses realized | — | — | (0.1) | — | Gross losses realized | — | — | (0.1) | — |
Horace Mann Educators Corporation | 13 | Quarterly Report on Form 10-Q |
($ in millions) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||||||||||||||||||||||||
Beginning of period | $ | 13.2 | $ | 287.2 | $ | 348.9 | $ | 439.8 | ||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (308.7) | 116.9 | (658.5) | (42.1) | ||||||||||||||||||||||
Reclassification of net investment (gains) losses on fixed maturity securities to net income (loss) | 12.3 | (4.7) | 26.4 | 1.7 | ||||||||||||||||||||||
End of period | $ | (283.2) | $ | 399.4 | $ | (283.2) | $ | 399.4 |
($ in millions) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||
Net unrealized investment gains (losses) on fixed maturity securities, net of tax | ||||||||||||||||||||||||||
Beginning of period | $ | (283.2) | $ | 399.4 | $ | 348.9 | $ | 439.8 | ||||||||||||||||||
Change in net unrealized investment gains (losses) on fixed maturity securities | (228.0) | (34.9) | (886.5) | (77.0) | ||||||||||||||||||||||
Reclassification of net investment losses on fixed maturity securities to net income | 11.9 | 3.9 | 38.3 | 5.6 | ||||||||||||||||||||||
End of period | $ | (499.3) | $ | 368.4 | $ | (499.3) | $ | 368.4 |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Commercial mortgage loan funds | Commercial mortgage loan funds | $ | 446.4 | $ | 346.8 | Commercial mortgage loan funds | $ | 601.5 | $ | 346.8 | ||||||||||||||||||
Private equity funds | Private equity funds | 68.2 | 74.0 | Private equity funds | 73.4 | 74.0 | ||||||||||||||||||||||
Infrastructure equity funds | Infrastructure equity funds | 70.2 | 58.3 | |||||||||||||||||||||||||
Infrastructure debt funds | Infrastructure debt funds | 68.3 | 62.4 | Infrastructure debt funds | 67.4 | 62.4 | ||||||||||||||||||||||
Infrastructure equity funds | 67.3 | 58.3 | ||||||||||||||||||||||||||
Other funds(1) | Other funds(1) | 178.2 | 171.3 | Other funds(1) | 185.0 | 171.3 | ||||||||||||||||||||||
Total | Total | $ | 828.4 | $ | 712.8 | Total | $ | 997.5 | $ | 712.8 |
($ 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 | |||||||||||||||||||||||||||||||||||
June 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Asset derivatives: | ||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | $ | 1.6 | $ | — | $ | 1.6 | $ | 0.8 | $ | 0.4 | $ | 0.4 | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Asset derivatives: | ||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | $ | 10.7 | $ | — | $ | 10.7 | $ | 4.5 | $ | 6.4 | $ | (0.2) |
Horace Mann Educators Corporation | 14 | Quarterly Report on Form 10-Q |
($ 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 | |||||||||||||||||||||||||||||||||||
September 30, 2022 | ||||||||||||||||||||||||||||||||||||||
Asset derivatives: | ||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | $ | 2.0 | $ | — | $ | 2.0 | $ | — | $ | 1.8 | $ | 0.2 | ||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Asset derivatives: | ||||||||||||||||||||||||||||||||||||||
Free-standing derivatives | $ | 10.7 | $ | — | $ | 10.7 | $ | 4.5 | $ | 6.4 | $ | (0.2) |
Horace Mann Educators Corporation | 15 | 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 611.8 | $ | 611.8 | $ | — | $ | 609.1 | $ | 2.7 | Mortgage-backed securities | $ | 579.1 | $ | 579.1 | $ | — | $ | 576.5 | $ | 2.6 | ||||||||||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 368.6 | 368.6 | 24.6 | 344.0 | — | Other, including U.S. Treasury securities | 342.8 | 342.7 | 24.5 | 318.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,426.3 | 1,426.3 | — | 1,375.3 | 51.0 | Municipal bonds | 1,307.9 | 1,307.9 | — | 1,254.6 | 53.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 41.4 | 41.4 | — | 41.4 | — | Foreign government bonds | 35.4 | 35.5 | — | 35.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,150.5 | 2,150.5 | 13.0 | 1,867.0 | 270.5 | Corporate bonds | 1,927.8 | 1,927.8 | 12.8 | 1,675.2 | 239.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,089.4 | 1,089.4 | — | 995.0 | 94.4 | Other asset-backed securities | 1,079.1 | 1,079.1 | — | 974.5 | 104.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 5,688.0 | 5,688.0 | 37.6 | 5,231.8 | 418.6 | Total fixed maturity securities | 5,272.1 | 5,272.1 | 37.3 | 4,834.5 | 400.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 117.3 | 117.3 | 25.0 | 90.9 | 1.4 | Equity securities | 113.8 | 113.8 | 22.4 | 89.4 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 97.2 | 97.2 | 94.8 | 2.4 | — | Short-term investments | 51.4 | 51.4 | 49.0 | 2.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | 33.7 | 33.7 | — | 33.7 | — | Other investments | 34.0 | 34.0 | — | 34.0 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 5,936.2 | $ | 5,936.2 | $ | 157.4 | $ | 5,358.8 | $ | 420.0 | Totals | $ | 5,471.3 | $ | 5,471.3 | $ | 108.7 | $ | 4,960.3 | $ | 402.3 | ||||||||||||||||||||||||||||||||||||||||||
Separate Account (variable annuity) assets(1) | $ | 2,811.2 | $ | 2,811.2 | $ | 2,811.2 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Separate Account variable annuity assets(1) | Separate Account variable annuity assets(1) | $ | 2,599.6 | $ | 2,599.6 | $ | 2,599.6 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, embedded derivatives | Investment contract and policy reserves, embedded derivatives | $ | 0.3 | $ | 0.3 | $ | — | $ | 0.3 | $ | — | Investment contract and policy reserves, embedded derivatives | $ | 0.4 | $ | 0.4 | $ | — | $ | 0.4 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds, embedded derivatives | Other policyholder funds, embedded derivatives | $ | 93.2 | $ | 93.2 | $ | — | $ | — | $ | 93.2 | Other policyholder funds, embedded derivatives | $ | 89.9 | $ | 89.9 | $ | — | $ | — | $ | 89.9 | ||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 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 | $ | 662.5 | $ | 662.5 | $ | — | $ | 662.5 | $ | — | Mortgage-backed securities | $ | 662.5 | $ | 662.5 | $ | — | $ | 662.5 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other, including U.S. Treasury securities | Other, including U.S. Treasury securities | 365.9 | 365.9 | 17.7 | 348.2 | — | Other, including U.S. Treasury securities | 365.9 | 365.9 | 17.7 | 348.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | 1,703.4 | 1,703.4 | — | 1,642.6 | 60.8 | Municipal bonds | 1,703.4 | 1,703.4 | — | 1,642.6 | 60.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | Foreign government bonds | 43.6 | 43.6 | — | 43.6 | — | Foreign government bonds | 43.6 | 43.6 | — | 43.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 2,388.7 | 2,388.7 | 14.9 | 2,163.5 | 210.3 | Corporate bonds | 2,388.7 | 2,388.7 | 14.9 | 2,163.5 | 210.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | Other asset-backed securities | 1,075.2 | 1,075.2 | — | 976.3 | 98.9 | Other asset-backed securities | 1,075.2 | 1,075.2 | — | 976.3 | 98.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 6,239.3 | 6,239.3 | 32.6 | 5,836.7 | 370.0 | Total fixed maturity securities | 6,239.3 | 6,239.3 | 32.6 | 5,836.7 | 370.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 147.2 | 147.2 | 35.2 | 110.6 | 1.4 | Equity securities | 147.2 | 147.2 | 35.2 | 110.6 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 157.8 | 157.8 | 157.8 | — | — | Short-term investments | 157.8 | 157.8 | 157.8 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | 43.6 | 43.6 | — | 43.6 | — | Other investments | 43.6 | 43.6 | — | 43.6 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Totals | Totals | $ | 6,587.9 | $ | 6,587.9 | $ | 225.6 | $ | 5,990.9 | $ | 371.4 | Totals | $ | 6,587.9 | $ | 6,587.9 | $ | 225.6 | $ | 5,990.9 | $ | 371.4 | ||||||||||||||||||||||||||||||||||||||||||
Separate Account (variable annuity) assets(1) | Separate Account (variable annuity) assets(1) | $ | 3,441.0 | $ | 3,441.0 | $ | 3,441.0 | $ | — | $ | — | Separate Account (variable annuity) assets(1) | $ | 3,441.0 | $ | 3,441.0 | $ | 3,441.0 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, embedded derivatives | Investment contract and policy reserves, embedded derivatives | $ | 2.1 | $ | 2.1 | $ | — | $ | 2.1 | $ | — | Investment contract and policy reserves, embedded derivatives | $ | 2.1 | $ | 2.1 | $ | — | $ | 2.1 | $ | — | ||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds, embedded derivatives | Other policyholder funds, embedded derivatives | $ | 106.6 | $ | 106.6 | $ | — | $ | — | $ | 106.6 | Other policyholder funds, embedded derivatives | $ | 106.6 | $ | 106.6 | $ | — | $ | — | $ | 106.6 |
Horace Mann Educators Corporation | 16 | 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, 2022 | $ | 54.1 | $ | 226.0 | $ | 89.8 | $ | 369.9 | $ | 1.3 | $ | 371.2 | $ | 99.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2022 | Beginning balance, July 1, 2022 | $ | 51.0 | $ | 270.5 | $ | 97.1 | $ | 418.6 | $ | 1.4 | $ | 420.0 | $ | 93.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | — | 56.0 | 17.5 | 73.5 | — | 73.5 | — | Transfers into Level 3(3) | — | 20.5 | 12.2 | 32.7 | 0.8 | 33.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | — | — | — | — | — | — | — | Transfers out of Level 3(3) | — | (34.8) | — | (34.8) | — | (34.8) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | (1.4) | (1.4) | 0.1 | (1.3) | — | Net investment gains (losses) included in net income related to financial assets | — | — | (0.8) | (0.8) | (0.1) | (0.9) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | (4.6) | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | (4.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | (2.8) | (4.9) | (3.2) | (10.9) | — | (10.9) | — | Net unrealized investment gains (losses) included in OCI | (5.3) | (7.4) | (3.9) | (16.6) | — | (16.6) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | — | 4.9 | — | 4.9 | — | 4.9 | — | Purchases | 0.2 | 8.4 | 7.9 | 16.5 | — | 16.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | — | — | — | — | — | — | 1.2 | Issuances | — | — | — | — | — | — | 2.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | — | — | (2.1) | (2.1) | — | (2.1) | — | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | — | — | — | — | — | — | — | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.3) | (11.5) | (3.5) | (15.3) | — | (15.3) | (2.5) | Paydowns, maturities and distributions | 7.4 | (17.4) | (5.3) | (15.3) | (0.1) | (15.4) | (1.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2022 | $ | 51.0 | $ | 270.5 | $ | 97.1 | $ | 418.6 | $ | 1.4 | $ | 420.0 | $ | 93.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2022 | Ending balance, September 30, 2022 | $ | 53.3 | $ | 239.8 | $ | 107.2 | $ | 400.3 | $ | 2.0 | $ | 402.3 | $ | 89.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2022 | Beginning balance, January 1, 2022 | $ | 60.8 | $ | 210.3 | $ | 98.9 | $ | 370.0 | $ | 1.4 | $ | 371.4 | $ | 106.6 | Beginning balance, January 1, 2022 | $ | 60.8 | $ | 210.3 | $ | 98.9 | $ | 370.0 | $ | 1.4 | $ | 371.4 | $ | 106.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3(3) | Transfers into Level 3(3) | — | 123.4 | 22.3 | 145.7 | — | 145.7 | — | Transfers into Level 3(3) | — | 144.0 | 34.5 | 178.5 | 0.8 | 179.3 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3(3) | Transfers out of Level 3(3) | (3.2) | — | (4.8) | (8.0) | — | (8.0) | — | Transfers out of Level 3(3) | (3.2) | (34.9) | (4.8) | (42.9) | — | (42.9) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | (2.3) | (2.3) | — | (2.3) | — | Net investment gains (losses) included in net income related to financial assets | — | — | (3.1) | (3.1) | (0.1) | (3.2) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment (gains) losses included in net income related to financial liabilities | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | (9.8) | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | — | (14.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) included in OCI | Net unrealized investment gains (losses) included in OCI | (6.2) | (11.3) | (7.4) | (24.9) | — | (24.9) | — | Net unrealized investment gains (losses) included in OCI | (11.6) | (18.7) | (11.3) | (41.6) | — | (41.6) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | — | 4.9 | — | 4.9 | — | 4.9 | — | Purchases | 0.2 | 13.3 | 7.9 | 21.4 | — | 21.4 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | — | — | — | — | — | — | 2.1 | Issuances | — | — | — | — | — | — | 4.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | — | — | (2.1) | (2.1) | — | (2.1) | — | Sales | — | — | (2.1) | (2.1) | — | (2.1) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | — | — | — | — | — | — | — | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.4) | (56.8) | (7.5) | (64.7) | — | (64.7) | (5.7) | Paydowns, maturities and distributions | 7.1 | (74.2) | (12.8) | (79.9) | (0.1) | (80.0) | (7.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, June 30, 2022 | $ | 51.0 | $ | 270.5 | $ | 97.1 | $ | 418.6 | $ | 1.4 | $ | 420.0 | $ | 93.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2022 | Ending balance, September 30, 2022 | $ | 53.3 | $ | 239.8 | $ | 107.2 | $ | 400.3 | $ | 2.0 | $ | 402.3 | $ | 89.9 |
Horace Mann Educators Corporation | 17 | 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) | — | 28.5 | 3.1 | 31.6 | — | 31.6 | — | 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) | — | (29.4) | (13.3) | (42.7) | — | (42.7) | — | 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 | — | — | — | — | — | — | — | 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 | — | 4.8 | — | Net unrealized investment gains (losses) included in OCI | (0.3) | (0.1) | 6.6 | 6.2 | — | 6.2 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | — | — | — | — | — | — | — | Purchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | — | — | — | — | — | — | 1.2 | Issuances | — | — | — | — | — | — | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | — | — | — | — | — | — | — | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | — | — | — | — | — | — | — | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.3) | (0.9) | (7.8) | (9.0) | — | (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) | — | 52.6 | 6.2 | 58.8 | — | 58.8 | — | 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) | — | (56.7) | (19.2) | (75.9) | — | (75.9) | — | 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 | — | — | — | — | — | — | — | 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 | — | 1.6 | — | Net unrealized investment gains (losses) included in OCI | (0.9) | 1.0 | 8.7 | 8.8 | — | 8.8 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | Purchases | — | — | — | — | — | — | — | Purchases | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuances | Issuances | — | — | — | — | — | — | 1.9 | Issuances | — | — | — | — | — | — | 3.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | Sales | — | — | — | — | — | — | — | Sales | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlements | Settlements | — | — | — | — | — | — | — | Settlements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paydowns, maturities and distributions | Paydowns, maturities and distributions | (0.4) | (2.4) | (11.9) | (14.7) | — | (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 | 18 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Fair Value at June 30, 2022 | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | Financial Assets | Fair Value at September 30, 2022 | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | Municipal bonds | $ | 51.0 | discounted cash flow | option adjusted spread | 309 - 425 bps | Municipal bonds | $ | 53.3 | discounted cash flow | option adjusted spread | 330 - 446 bps | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | 270.5 | discounted cash flow | N spread(2) | 363 bps | Corporate bonds | 239.8 | discounted cash flow | N spread(2) | 363 bps | ||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | T spread(3) | 16 - 403 bps | discounted cash flow | T spread(3) | 16 - 403 bps | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | yield | 3.8% - 10.6% | discounted cash flow | yield | 3.8% - 11.2% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | exit cap rate | 6.20% | discounted cash flow | exit cap rate | 6.2% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | occupancy rate | 31.0% - 100.0% | discounted cash flow | occupancy rate | 31.0% - 100.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | option adjusted spread | 242 - 393 | discounted cash flow | option adjusted spread | 242 - 393 bps | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | weighted average cost of capital | 0.05 | discounted cash flow | weighted average cost of capital | 5.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | discount rate | 11.3% - 12.0% | discounted cash flow | discount rate | 11.3% - 12.0% | |||||||||||||||||||||||||||||||||||||||||||||||
market comparable | EV / Fwd EBITDA (x) | 5.9x | market comparable | EV / Fwd EBITDA (x) | 5.1x | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed and other asset-backed securities | Mortgage-backed and other asset-backed securities | 97.1 | discounted cash flow | discount margin | 22.9% | Mortgage-backed and other asset-backed securities | 107.2 | discounted cash flow | discount margin | 30.4% | ||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | discount rate | 15.5% - 20.5% | discounted cash flow | discount rate | 16.0% - 21.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | median comparable yield | 12.9% - 25.0% | discounted cash flow | median comparable yield | 17.2% - 33.1% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | yield | 5.6% - 7.3% | discounted cash flow | yield | 7.0% - 7.4% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | libor | 1.0% | discounted cash flow | LIBOR | 1.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | PDI spread | 6.8% | discounted cash flow | PDI spread | 6.8% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | SBL spread | 4.5% | discounted cash flow | SBL spread | 4.5% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | weighting | 17.0% - 83.0% | discounted cash flow | weighting | 17.0% - 83.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | CPR | 20.0% | discounted cash flow | CPR | 20.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | default rate annual | 4.0% | discounted cash flow | default rate annual | 4.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | recovery | 65.0% | discounted cash flow | recovery | 65.0% | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | N spread | 416 bps | discounted cash flow | N spread | 463 bps | |||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | T Spread | 272 bps | discounted cash flow | T Spread | 226 bps | |||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 1.4 | black scholes | volatility | low 30.0% - high 46.0% | Equity securities | 2.0 | black-scholes | volatility | low 32.0% - high 47.0% | ||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | variable square per unit | $21,544 - $38,345 | ||||||||||||||||||||||||||||||||||||||||||||||||||
discounted cash flow | variable square meter | $100.00 - $624.19 |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Fair Value at June 30, 2022 | Valuation Technique(s) | Unobservable Inputs | Range (Weighted Average) and Single Point Best Estimate(1) | Financial Liabilities | Fair Value at September 30, 2022 | 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 | $ | 93.2 | discounted cash flow | lapse rate | 5.3% | Derivatives embedded in fixed indexed annuity products | $ | 89.9 | discounted cash flow | lapse rate | 5.3% | ||||||||||||||||||||||||||||||||||||||||
mortality multiplier(4) | 66.8% | mortality multiplier(4) | 66.8% | |||||||||||||||||||||||||||||||||||||||||||||||||
option budget | 0.9% - 2.5% | option budget | 0.9% - 3.3% | |||||||||||||||||||||||||||||||||||||||||||||||||
non-performance adjustment(5) | 5.0% | non-performance adjustment(5) | 5.0% |
Horace Mann Educators Corporation | 19 | 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2022 | September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | $ | 171.8 | $ | 175.2 | $ | — | $ | — | $ | 175.2 | Other investments | $ | 169.1 | $ | 172.5 | $ | — | $ | — | $ | 172.5 | ||||||||||||||||||||||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,507.1 | 2,338.5 | — | — | 2,338.5 | Deposit asset on reinsurance | 2,525.6 | 2,164.9 | — | — | 2,164.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, fixed annuity contracts | Investment contract and policy reserves, fixed annuity contracts | 4,986.4 | 5,049.7 | — | — | 5,049.7 | Investment contract and policy reserves, fixed annuity contracts | 5,005.8 | 5,068.8 | — | — | 5,068.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, account values on life contracts | Investment contract and policy reserves, account values on life contracts | 108.0 | 117.9 | — | — | 117.9 | Investment contract and policy reserves, account values on life contracts | 109.5 | 119.3 | — | — | 119.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 934.4 | 934.4 | — | 867.3 | 67.1 | Other policyholder funds | 910.8 | 910.8 | — | 857.9 | 52.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | 249.0 | 249.0 | — | — | 249.0 | Short-term debt | 249.0 | 249.0 | — | — | 249.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 248.8 | 249.7 | — | 249.7 | — | Long-term debt | 248.9 | 249.5 | — | 249.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | December 31, 2021 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets | Financial Assets | Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | Other investments | $ | 148.8 | $ | 152.4 | $ | — | $ | — | $ | 152.4 | Other investments | $ | 148.8 | $ | 152.4 | $ | — | $ | — | $ | 152.4 | ||||||||||||||||||||||||||||||||||||||||||
Deposit asset on reinsurance | Deposit asset on reinsurance | 2,481.5 | 2,935.1 | — | — | 2,935.1 | Deposit asset on reinsurance | 2,481.5 | 2,935.1 | — | — | 2,935.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities | Financial Liabilities | Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, fixed annuity contracts | Investment contract and policy reserves, fixed annuity contracts | 4,941.3 | 5,004.9 | — | — | 5,004.9 | Investment contract and policy reserves, fixed annuity contracts | 4,941.3 | 5,004.9 | — | — | 5,004.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment contract and policy reserves, account values on life contracts | Investment contract and policy reserves, account values on life contracts | 105.4 | 115.4 | — | — | 115.4 | Investment contract and policy reserves, account values on life contracts | 105.4 | 115.4 | — | — | 115.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds | Other policyholder funds | 839.3 | 839.3 | — | 782.8 | 56.5 | Other policyholder funds | 839.3 | 839.3 | — | 782.8 | 56.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | 249.0 | 249.0 | — | — | 249.0 | Short-term debt | 249.0 | 249.0 | — | — | 249.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt | 253.6 | 277.4 | — | 277.4 | — | Long-term debt | 253.6 | 277.4 | — | 277.4 | — |
Horace Mann Educators Corporation | 20 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | December 31, 2021 | Impairment | Acquisition | June 30, 2022 | ($ in millions) | December 31, 2021 | Impairment | Acquisition | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | $ | 9.5 | $ | — | $ | — | $ | 9.5 | Property & Casualty | $ | 9.5 | $ | — | $ | — | $ | 9.5 | ||||||||||||||||||||||||||||||||||
Life & Retirement | Life & Retirement | 14.4 | — | — | 14.4 | Life & Retirement | 14.4 | — | — | 14.4 | ||||||||||||||||||||||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | 19.6 | — | 12.8 | 32.4 | Supplemental & Group Benefits | 19.6 | — | 12.8 | 32.4 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 43.5 | $ | — | $ | 12.8 | $ | 56.3 | Total | $ | 43.5 | $ | — | $ | 12.8 | $ | 56.3 |
($ 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 | 28 | $ | 100.1 | Value of business acquired | 28 | $ | 100.1 | ||||||||||||||||||||
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 | 59.9 | Value of customer relationships | 10 | 59.9 | ||||||||||||||||||||||
Total | Total | 20 | 231.0 | Total | 20 | 231.0 | ||||||||||||||||||||||
Accumulated amortization and impairments: | Accumulated amortization and impairments: | Accumulated amortization and impairments: | ||||||||||||||||||||||||||
Value of business acquired | Value of business acquired | (23.5) | Value of business acquired | (26.6) | ||||||||||||||||||||||||
Value of distribution acquired | Value of distribution acquired | (13.1) | Value of distribution acquired | (13.8) | ||||||||||||||||||||||||
Value of agency relationships | Value of agency relationships | (7.2) | Value of agency relationships | (7.7) | ||||||||||||||||||||||||
Value of customer relationships | Value of customer relationships | (4.6) | Value of customer relationships | (4.5) | ||||||||||||||||||||||||
Total | Total | (48.4) | Total | (52.6) | ||||||||||||||||||||||||
Net intangible assets subject to amortization: | Net intangible assets subject to amortization: | $ | 182.6 | Net intangible assets subject to amortization: | $ | 178.4 |
Horace Mann Educators Corporation | 21 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||
Year Ending December 31, | Year Ending December 31, | Year Ending December 31, | ||||||||||||||
2022 (excluding the six months ended June 30, 2022) | $ | 8.3 | ||||||||||||||
2022 (excluding the nine months ended September 30, 2022) | 2022 (excluding the nine months ended September 30, 2022) | $ | 4.1 | |||||||||||||
2023 | 2023 | 15.5 | 2023 | 15.5 | ||||||||||||
2024 | 2024 | 15.1 | 2024 | 15.1 | ||||||||||||
2025 | 2025 | 14.8 | 2025 | 14.8 | ||||||||||||
2026 | 2026 | 14.5 | 2026 | 14.5 | ||||||||||||
Thereafter | Thereafter | 114.4 | Thereafter | 114.4 | ||||||||||||
Total | Total | $ | 182.6 | Total | $ | 178.4 |
($ in millions) | ||||||||
Trade names | $ | 7.9 | ||||||
State licenses | 5.9 | |||||||
Total | $ | 13.8 |
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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | Property & Casualty | ||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning gross reserves(1) | Beginning gross reserves(1) | $ | 356.2 | $ | 374.1 | $ | 362.4 | $ | 372.2 | Beginning gross reserves(1) | $ | 378.4 | $ | 368.4 | $ | 362.4 | $ | 372.2 | ||||||||||||||||||||||||||||||||||
Less: reinsurance recoverables | Less: reinsurance recoverables | 108.0 | 112.5 | 110.3 | 112.9 | Less: reinsurance recoverables | 109.8 | 108.9 | 110.3 | 112.9 | ||||||||||||||||||||||||||||||||||||||||||
Net reserves, beginning of period(2) | Net reserves, beginning of period(2) | 248.2 | 261.6 | 252.1 | 259.3 | Net reserves, beginning of period(2) | 268.6 | 259.5 | 252.1 | 259.3 | ||||||||||||||||||||||||||||||||||||||||||
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 | 144.1 | 118.1 | 252.4 | 212.9 | Claims occurring in the current period | 120.3 | 132.5 | 372.8 | 345.4 | ||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in estimated reserves for claims occurring in prior periods(3) | Increase (decrease) in estimated reserves for claims occurring in prior periods(3) | 6.0 | (4.2) | 6.0 | (4.2) | Increase (decrease) in estimated reserves for claims occurring in prior periods(3) | 2.0 | (3.0) | 8.0 | (7.2) | ||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expenses incurred(4) | Total claims and claim expenses incurred(4) | 150.1 | 113.9 | 258.4 | 208.7 | Total claims and claim expenses incurred(4) | 122.3 | 129.5 | 380.8 | 338.2 | ||||||||||||||||||||||||||||||||||||||||||
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 | 84.4 | 79.1 | 118.2 | 113.5 | Current period | 102.8 | 96.8 | 221.1 | 210.3 | ||||||||||||||||||||||||||||||||||||||||||
Prior periods | Prior periods | 45.3 | 36.9 | 123.7 | 95.0 | Prior periods | 29.7 | 26.4 | 153.4 | 121.4 | ||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expense payments | Total claims and claim expense payments | 129.7 | 116.0 | 241.9 | 208.5 | Total claims and claim expense payments | 132.5 | 123.2 | 374.5 | 331.7 | ||||||||||||||||||||||||||||||||||||||||||
Net reserves, end of period(2) | Net reserves, end of period(2) | 268.6 | 259.5 | 268.6 | 259.5 | Net reserves, end of period(2) | 258.4 | 265.8 | 258.4 | 265.8 | ||||||||||||||||||||||||||||||||||||||||||
Plus: reinsurance recoverables | Plus: reinsurance recoverables | 109.8 | 108.9 | 109.8 | 108.9 | Plus: reinsurance recoverables | 109.0 | 109.6 | 109.0 | 109.6 | ||||||||||||||||||||||||||||||||||||||||||
Ending gross reserves(1) | Ending gross reserves(1) | $ | 378.4 | $ | 368.4 | $ | 378.4 | $ | 368.4 | Ending gross reserves(1) | $ | 367.4 | $ | 375.4 | $ | 367.4 | $ | 375.4 |
Horace Mann Educators Corporation | 23 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Direct Amount | Ceded to Other Companies(1) | Assumed from Other Companies | Net Amount | ($ in millions) | Direct Amount | Ceded to Other Companies(1) | Assumed from Other Companies | Net Amount | ||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written and contract deposits(2) | Net premiums written and contract deposits(2) | $ | 374.5 | $ | 16.4 | $ | 13.7 | $ | 371.8 | Net premiums written and contract deposits(2) | $ | 390.3 | $ | 15.4 | $ | 13.4 | $ | 388.3 | ||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | 260.9 | 18.7 | 13.6 | 255.8 | Net premiums and contract charges earned | 262.0 | 17.6 | 13.4 | 257.8 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 220.6 | 14.3 | 1.3 | 207.6 | Benefits, claims and settlement expenses | 177.3 | 8.4 | 4.7 | 173.6 | ||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written and contract deposits(2) | Net premiums written and contract deposits(2) | $ | 351.2 | $ | 5.6 | $ | 2.5 | $ | 348.1 | Net premiums written and contract deposits(2) | $ | 366.0 | $ | 5.5 | $ | 2.6 | $ | 363.1 | ||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | 231.5 | 8.1 | 2.4 | 225.8 | Net 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 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written and contract deposits(2) | Net premiums written and contract deposits(2) | $ | 734.1 | $ | 31.3 | $ | 26.1 | $ | 728.9 | Net premiums written and contract deposits(2) | $ | 1,124.4 | $ | 46.7 | $ | 39.5 | $ | 1,117.2 | ||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | 521.4 | 35.9 | 26.2 | 511.7 | Net premiums and contract charges earned | 783.4 | 53.5 | 39.6 | 769.5 | ||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 400.1 | 25.8 | 10.3 | 384.6 | Benefits, claims and settlement expenses | 577.4 | 34.2 | 15.0 | 558.2 | ||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written and contract deposits(2) | Net premiums written and contract deposits(2) | $ | 671.8 | $ | 11.5 | $ | 4.0 | $ | 664.3 | Net premiums written and contract deposits(2) | $ | 1,037.8 | $ | 17.0 | $ | 6.6 | $ | 1,027.4 | ||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | 465.7 | 16.5 | 4.2 | 453.4 | Net 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 |
Horace Mann Educators Corporation | 24 | 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | Net premiums and contract charges earned | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | $ | 149.9 | $ | 155.0 | $ | 300.1 | $ | 310.8 | Property & Casualty | $ | 152.4 | $ | 153.3 | $ | 452.5 | $ | 464.1 | ||||||||||||||||||||||||||||||||||
Life & Retirement | Life & Retirement | 36.8 | 38.5 | 72.6 | 77.9 | Life & Retirement | 37.1 | 40.4 | 109.7 | 118.3 | ||||||||||||||||||||||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | 69.1 | 32.3 | 139.0 | 64.7 | Supplemental & Group Benefits | 68.3 | 31.7 | 207.3 | 96.4 | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 255.8 | $ | 225.8 | $ | 511.7 | $ | 453.4 | Total | $ | 257.8 | $ | 225.4 | $ | 769.5 | $ | 678.8 | ||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | Net investment income | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | $ | 7.7 | $ | 21.7 | $ | 14.9 | $ | 32.5 | Property & Casualty | $ | 8.0 | $ | 11.3 | $ | 22.9 | $ | 43.8 | ||||||||||||||||||||||||||||||||||
Life & Retirement | Life & Retirement | 88.4 | 81.7 | 172.6 | 161.6 | Life & Retirement | 81.4 | 85.8 | 254.0 | 247.4 | ||||||||||||||||||||||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | 9.6 | 6.4 | 16.7 | 11.8 | Supplemental & Group Benefits | 8.7 | 7.2 | 25.4 | 19.0 | ||||||||||||||||||||||||||||||||||||||||||
Corporate & Other | Corporate & Other | — | — | — | — | Corporate & Other | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Intersegment eliminations | Intersegment eliminations | (0.5) | (0.6) | (1.1) | (1.2) | Intersegment eliminations | (0.5) | (0.6) | (1.6) | (1.8) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 105.2 | $ | 109.2 | $ | 203.1 | $ | 204.7 | Total | $ | 97.6 | $ | 103.7 | $ | 300.7 | $ | 308.4 | ||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | Net income (loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | $ | (25.4) | $ | 19.3 | $ | (16.9) | $ | 47.2 | Property & Casualty | $ | (2.5) | $ | (4.7) | $ | (19.4) | $ | 42.5 | ||||||||||||||||||||||||||||||||||
Life & Retirement | Life & Retirement | 17.3 | 16.5 | 29.1 | 27.9 | Life & Retirement | 12.7 | 19.1 | 41.8 | 47.0 | ||||||||||||||||||||||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | 13.2 | 12.0 | 24.4 | 23.3 | Supplemental & Group Benefits | 19.2 | 11.5 | 43.6 | 34.8 | ||||||||||||||||||||||||||||||||||||||||||
Corporate & Other | Corporate & Other | (17.6) | (1.1) | (34.6) | (12.4) | Corporate & Other | (15.5) | (9.6) | (50.1) | (22.0) | ||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | (12.5) | $ | 46.7 | $ | 2.0 | $ | 86.0 | Total | $ | 13.9 | $ | 16.3 | $ | 15.9 | $ | 102.3 |
($ in millions) | ($ in millions) | June 30, 2022 | December 31, 2021 | ($ in millions) | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Property & Casualty | Property & Casualty | $ | 1,063.4 | $ | 1,243.4 | Property & Casualty | $ | 1,052.1 | $ | 1,243.4 | ||||||||||||||||||
Life & Retirement | Life & Retirement | 11,125.5 | 12,064.7 | Life & Retirement | 10,719.4 | 12,064.7 | ||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | 1,450.6 | 858.8 | Supplemental & Group Benefits | 1,431.7 | 858.8 | ||||||||||||||||||||||
Corporate & Other | Corporate & Other | 180.7 | 281.8 | Corporate & Other | 177.9 | 281.8 | ||||||||||||||||||||||
Intersegment eliminations | Intersegment eliminations | (61.7) | (64.8) | Intersegment eliminations | (67.0) | (64.8) | ||||||||||||||||||||||
Total | Total | $ | 13,758.5 | $ | 14,383.9 | Total | $ | 13,314.1 | $ | 14,383.9 |
Horace Mann Educators Corporation | 25 | 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, 2022 | $ | 20.0 | $ | (10.2) | $ | 9.8 | ||||||||||||||||||||||||||||||||||
Beginning balance, July 1, 2022 | Beginning balance, July 1, 2022 | $ | (220.4) | $ | (10.2) | $ | (230.6) | |||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | Other comprehensive loss before reclassifications | (252.7) | — | (252.7) | Other comprehensive loss before reclassifications | (188.2) | — | (188.2) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(2) | Amounts reclassified from AOCI(2) | 12.3 | — | 12.3 | Amounts reclassified from AOCI(2) | 11.9 | — | 11.9 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive loss | Net current period other comprehensive loss | (240.4) | — | (240.4) | Net current period other comprehensive loss | (176.3) | — | (176.3) | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2022 | $ | (220.4) | $ | (10.2) | $ | (230.6) | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2022 | Ending balance, September 30, 2022 | $ | (396.7) | $ | (10.2) | $ | (406.9) | |||||||||||||||||||||||||||||||||
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 before reclassifications | Other comprehensive income before reclassifications | 93.3 | — | 93.3 | Other comprehensive income before reclassifications | (29.3) | — | (29.3) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(3) | Amounts reclassified from AOCI(3) | (4.7) | — | (4.7) | Amounts reclassified from AOCI(3) | 4.0 | — | 4.0 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive income | Net current period other comprehensive income | 88.6 | — | 88.6 | Net current period other comprehensive income | (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, January 1, 2022 | Beginning balance, January 1, 2022 | $ | 290.7 | $ | (10.2) | $ | 280.5 | Beginning balance, January 1, 2022 | $ | 290.7 | $ | (10.2) | $ | 280.5 | ||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | Other comprehensive loss before reclassifications | (537.5) | — | (537.5) | Other comprehensive loss before reclassifications | (725.7) | — | (725.7) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(2) | Amounts reclassified from AOCI(2) | 26.4 | — | 26.4 | Amounts reclassified from AOCI(2) | 38.3 | — | 38.3 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive loss | Net current period other comprehensive loss | (511.1) | — | (511.1) | Net current period other comprehensive loss | (687.4) | — | (687.4) | ||||||||||||||||||||||||||||||||
Ending balance, June 30, 2022 | $ | (220.4) | $ | (10.2) | $ | (230.6) | ||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2022 | Ending balance, September 30, 2022 | $ | (396.7) | $ | (10.2) | $ | (406.9) | |||||||||||||||||||||||||||||||||
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 loss before reclassifications | Other comprehensive loss before reclassifications | (35.8) | — | (35.8) | Other comprehensive loss before reclassifications | (65.0) | — | (65.0) | ||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI(3) | Amounts reclassified from AOCI(3) | 1.7 | — | 1.7 | Amounts reclassified from AOCI(3) | 5.6 | — | 5.6 | ||||||||||||||||||||||||||||||||
Net current period other comprehensive loss | Net current period other comprehensive loss | (34.1) | — | (34.1) | Net current period other comprehensive 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 |
Horace Mann Educators Corporation | 26 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | ($ in millions) | ||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Cash | Cash | $ | 49.2 | $ | 133.0 | Cash | $ | 35.2 | $ | 133.0 | ||||||||||||||||||
Restricted cash | Restricted cash | 0.9 | 0.7 | Restricted cash | 1.0 | 0.7 | ||||||||||||||||||||||
Total cash and restricted cash reported in the Consolidated Balance Sheets | Total cash and restricted cash reported in the Consolidated Balance Sheets | $ | 50.1 | $ | 133.7 | Total cash and restricted cash reported in the Consolidated Balance Sheets | $ | 36.2 | $ | 133.7 |
($ in millions) | ($ in millions) | Six Months Ended June 30, | ($ in millions) | Nine Months Ended September 30, | ||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
Cash paid for: | Cash paid for: | Cash paid for: | ||||||||||||||||||||||||||
Interest | Interest | $ | 7.1 | $ | 6.8 | Interest | $ | 9.1 | $ | 7.3 | ||||||||||||||||||
Income taxes | Income taxes | 5.3 | 13.4 | Income taxes | 6.4 | 20.2 |
Horace Mann Educators Corporation | 27 | Quarterly Report on Form 10-Q |
Page | ||||||||
Horace Mann Educators Corporation | 28 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | $ | 346.3 | $ | 347.1 | -0.2 | % | $ | 693.1 | $ | 669.1 | 3.6 | % | Total revenues | $ | 343.0 | $ | 329.6 | 4.1 | % | $ | 1,036.1 | $ | 998.7 | 3.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (12.5) | 46.7 | -126.8 | % | 2.0 | 86.0 | -97.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 13.9 | 16.3 | -14.7 | % | 15.9 | 102.3 | -84.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per diluted share: | Per diluted share: | Per diluted share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (0.30) | 1.11 | -127.0 | % | 0.05 | 2.04 | -97.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) after tax | (0.29) | 0.09 | N.M. | (0.58) | (0.08) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 0.33 | 0.39 | -15.4 | % | 0.38 | 2.43 | -84.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment losses, after tax | Net investment losses, after tax | (0.24) | (0.11) | N.M. | (0.82) | (0.19) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Book value per share | Book value per share | $ | 30.59 | $ | 43.78 | -30.1 | % | Book value per share | $ | 26.32 | $ | 43.30 | -39.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income return on equity - last twelve months | Net income return on equity - last twelve months | 3.6 | % | 9.8 | % | Net income return on equity - last twelve months | 3.8 | % | 8.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income return on equity - annualized | Net income return on equity - annualized | 0.3 | % | 9.5 | % | Net income return on equity - annualized | 1.5 | % | 7.6 | % |
Horace Mann Educators Corporation | 29 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | $ | 255.8 | $ | 225.8 | 13.3 | % | $ | 511.7 | $ | 453.4 | 12.9 | % | Net premiums and contract charges earned | $ | 257.8 | $ | 225.4 | 14.4 | % | $ | 769.5 | $ | 678.8 | 13.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 105.2 | 109.2 | -3.7 | % | 203.1 | 204.7 | -0.8 | % | Net investment income | 97.6 | 103.7 | -5.9 | % | 300.7 | 308.4 | -2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (15.5) | 4.9 | N.M. | (31.0) | (4.1) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment losses | Net investment losses | (12.8) | (6.5) | N.M. | (43.8) | (10.6) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 0.8 | 7.2 | -88.9 | % | 9.3 | 15.1 | -38.4 | % | Other income | 0.4 | 7.0 | -94.3 | % | 9.7 | 22.1 | -56.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 346.3 | 347.1 | -0.2 | % | 693.1 | 669.1 | 3.6 | % | Total revenues | 343.0 | 329.6 | 4.1 | % | 1,036.1 | 998.7 | 3.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, claims and settlement expenses | Benefits, claims and settlement expenses | 207.6 | 147.1 | 41.1 | % | 384.6 | 281.4 | 36.7 | % | Benefits, claims and settlement expenses | 173.6 | 164.8 | 5.3 | % | 558.2 | 446.2 | 25.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 42.4 | 51.2 | -17.2 | % | 83.2 | 101.8 | -18.3 | % | Interest credited | 45.9 | 51.9 | -11.6 | % | 129.1 | 153.7 | -16.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 77.3 | 60.5 | 27.8 | % | 154.1 | 118.5 | 30.0 | % | Operating expenses | 75.6 | 64.3 | 17.6 | % | 229.7 | 182.8 | 25.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC unlocking and amortization expense | DAC unlocking and amortization expense | 27.0 | 23.5 | 14.9 | % | 53.4 | 47.6 | 12.2 | % | DAC unlocking and amortization expense | 23.3 | 22.9 | 1.7 | % | 76.7 | 70.5 | 8.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 4.2 | 3.2 | 31.3 | % | 8.4 | 6.5 | 29.2 | % | Intangible asset amortization expense | 4.2 | 3.3 | 27.3 | % | 12.6 | 9.8 | 28.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 4.3 | 3.5 | 22.9 | % | 8.2 | 7.0 | 17.1 | % | Interest expense | 5.3 | 3.4 | 55.9 | % | 13.5 | 10.4 | 29.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total benefits, losses and expenses | Total benefits, losses and expenses | 362.8 | 289.0 | 25.5 | % | 691.9 | 562.8 | 22.9 | % | Total benefits, losses and expenses | 327.9 | 310.6 | 5.6 | % | 1,019.8 | 873.4 | 16.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (16.5) | 58.1 | -128.4 | % | 1.2 | 106.3 | -98.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (4.0) | 11.4 | -135.1 | % | (0.8) | 20.3 | -103.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (12.5) | $ | 46.7 | -126.8 | % | $ | 2.0 | $ | 86.0 | -97.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 15.1 | 19.0 | -20.5 | % | 16.3 | 125.3 | -87.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 1.2 | 2.7 | -55.6 | % | 0.4 | 23.0 | -98.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 13.9 | $ | 16.3 | -14.7 | % | $ | 15.9 | $ | 102.3 | -84.5 | % |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Investment yield, excluding limited partnership interests, pretax - annualized* | Investment yield, excluding limited partnership interests, pretax - annualized* | 4.3% | 4.2% | 4.3% | 4.2% | Investment yield, excluding limited partnership interests, pretax - annualized* | 4.3% | 4.3% | 4.3% | 4.3% | ||||||||||||||||||||||||||||||||||||||||||
Investment yield, excluding limited partnership interests, after tax - annualized* | Investment yield, excluding limited partnership interests, after tax - annualized* | 3.4% | 3.4% | 3.4% | 3.4% | Investment yield, excluding limited partnership interests, after tax - annualized* | 3.4% | 3.5% | 3.4% | 3.4% |
Horace Mann Educators Corporation | 30 | 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, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||
Impairments on investments recognized in net income | $ | (1.8) | $ | — | $ | (3.6) | $ | (3.2) | ||||||||||||||||||||||||||||||||||||||||||||
Credit loss and intent-to-sell impairments | Credit loss and intent-to-sell impairments | $ | (6.8) | $ | (6.6) | $ | (10.4) | $ | (9.8) | |||||||||||||||||||||||||||||||||||||||||||
Sales and other, net | Sales and other, net | (1.1) | 1.6 | — | (0.5) | Sales and other, net | (3.9) | 2.7 | (3.9) | 2.2 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value - equity securities | Change in fair value - equity securities | (12.6) | 4.3 | (29.7) | 1.5 | Change in fair value - equity securities | (4.4) | (1.1) | (34.1) | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value and losses realized on settlements - derivatives | Change in fair value and losses realized on settlements - derivatives | — | (1.0) | 2.3 | (1.9) | Change in fair value and losses realized on settlements - derivatives | 2.3 | (1.5) | 4.6 | (3.4) | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | $ | (15.5) | $ | 4.9 | $ | (31.0) | $ | (4.1) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment losses | Net investment losses | $ | (12.8) | $ | (6.5) | $ | (43.8) | $ | (10.6) |
Horace Mann Educators Corporation | 31 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 32 | Quarterly Report on Form 10-Q |
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, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions, unless otherwise indicated) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Data: | Financial Data: | Financial Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written*: | Net premiums written*: | Net premiums written*: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | Auto | $ | 99.0 | $ | 97.8 | 1.2 | % | $ | 193.5 | $ | 197.0 | -1.8 | % | Auto | $ | 102.5 | $ | 103.1 | -0.6 | % | $ | 296.0 | $ | 300.1 | -1.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property and other | Property and other | 59.0 | 57.8 | 2.1 | % | 104.1 | 100.4 | 3.7 | % | Property and other | 63.9 | 60.7 | 5.3 | % | 168.0 | 161.1 | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net premiums written | Total net premiums written | 158.0 | 155.6 | 1.5 | % | 297.6 | 297.4 | 0.1 | % | Total net premiums written | 166.4 | 163.8 | 1.6 | % | 464.0 | 461.2 | 0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unearned net premiums | Change in unearned net premiums | (8.1) | (0.6) | N.M. | 2.5 | 13.4 | -81.3 | % | Change in unearned net premiums | (14.0) | (10.5) | 33.3 | % | (11.5) | 2.9 | N.M | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net premiums earned | Total net premiums earned | 149.9 | 155.0 | -3.3 | % | 300.1 | 310.8 | -3.4 | % | Total net premiums earned | 152.4 | 153.3 | -0.6 | % | 452.5 | 464.1 | -2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 144.2 | 118.2 | 22.0 | % | 252.5 | 212.9 | 18.6 | % | Claims occurring in the current year | 120.3 | 132.5 | -9.2 | % | 372.8 | 345.4 | 7.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development(1) | Prior years' reserve development(1) | 6.0 | (4.2) | N.M. | 6.0 | (4.2) | N.M. | Prior years' reserve development(1) | 2.0 | (3.0) | N.M. | 8.0 | (7.2) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total claims and claim expenses incurred | Total claims and claim expenses incurred | 150.2 | 114.0 | 31.8 | % | 258.5 | 208.7 | 23.9 | % | Total claims and claim expenses incurred | 122.3 | 129.5 | -5.6 | % | 380.8 | 338.2 | 12.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses, including DAC amortization | Operating expenses, including DAC amortization | 40.1 | 39.9 | 0.5 | % | 79.5 | 79.4 | 0.1 | % | Operating expenses, including DAC amortization | 41.6 | 42.1 | -1.2 | % | 121.1 | 121.5 | -0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain | (40.4) | 1.1 | N.M. | (37.9) | 22.7 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting gain (loss) | Underwriting gain (loss) | (11.5) | (18.3) | 37.2 | % | (49.4) | 4.4 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 7.7 | 21.7 | -64.5 | % | 14.9 | 32.5 | -54.2 | % | Net investment income | 8.0 | 11.3 | -29.2 | % | 22.9 | 43.8 | -47.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (31.5) | 24.0 | N.M. | (21.0) | 58.4 | -136.0 | % | Income (loss) before income taxes | (2.8) | (6.3) | 55.6 | % | (23.8) | 52.1 | -145.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | (25.4) | 19.3 | N.M. | (16.9) | 47.2 | -135.8 | % | Net income (loss) | (2.5) | (4.7) | 46.8 | % | (19.4) | 42.5 | -145.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core earnings (loss)* | Core earnings (loss)* | (25.4) | 19.3 | N.M. | (16.9) | 47.2 | -135.8 | % | Core earnings (loss)* | (2.5) | (4.7) | 46.8 | % | (19.4) | 42.5 | -145.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Statistics: | Operating Statistics: | Operating Statistics: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto | Auto | Auto | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | Loss and loss adjustment expense ratio | 93.2 | % | 67.6 | % | 25.6 | pts | 84.6 | % | 63.3 | % | 21.3 | pts | Loss and loss adjustment expense ratio | 83.1 | % | 71.5 | % | 11.6 | pts | 84.1 | % | 66.0 | % | 18.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 26.1 | % | 25.7 | % | 0.4 | pts | 26.0 | % | 25.4 | % | 0.6 | pts | Expense ratio | 27.7 | % | 27.7 | % | — | pts | 26.5 | % | 26.1 | % | 0.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio: | Combined ratio: | 119.3 | % | 93.3 | % | 26.0 | pts | 110.6 | % | 88.7 | % | 21.9 | pts | Combined ratio: | 110.8 | % | 99.2 | % | 11.6 | pts | 110.6 | % | 92.1 | % | 18.5 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development(1) | Prior years' reserve development(1) | 12.4 | % | -3.0 | % | 15.4 | pts | 6.2 | % | -1.5 | % | 7.7 | pts | Prior years' reserve development(1) | 2.0 | % | -2.0 | % | 4.0 | pts | 4.8 | % | -1.6 | % | 6.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses | Catastrophe losses | 3.9 | % | 2.6 | % | 1.3 | pts | 2.2 | % | 1.5 | % | 0.7 | pts | Catastrophe losses | 2.7 | % | 2.9 | % | -0.2 | pts | 2.3 | % | 1.9 | % | 0.4 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying combined ratio* | Underlying combined ratio* | 103.0 | % | 93.7 | % | 9.3 | pts | 102.2 | % | 88.7 | % | 13.5 | pts | Underlying combined ratio* | 106.1 | % | 98.3 | % | 7.8 | pts | 103.5 | % | 91.8 | % | 11.7 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Property | Property | Property | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and loss adjustment expense ratio | Loss and loss adjustment expense ratio | 113.0 | % | 84.8 | % | 28.2 | pts | 88.9 | % | 74.5 | % | 14.4 | pts | Loss and loss adjustment expense ratio | 75.1 | % | 108.9 | % | -33.8 | pts | 84.2 | % | 86.0 | % | -1.8 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 28.0 | % | 26.0 | % | 2.0 | pts | 27.7 | % | 26.0 | % | 1.7 | pts | Expense ratio | 26.8 | % | 27.2 | % | -0.4 | pts | 27.4 | % | 26.4 | % | 1.0 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio: | Combined ratio: | 141.0 | % | 110.8 | % | 30.2 | pts | 116.6 | % | 100.5 | % | 16.1 | pts | Combined ratio: | 101.9 | % | 136.1 | % | -34.2 | pts | 111.6 | % | 112.4 | % | -0.8 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Prior years' reserve development(1) | Prior years' reserve development(1) | -11.4 | % | -2.3 | % | -9.1 | pts | -5.7 | % | -1.1 | % | -4.6 | pts | Prior years' reserve development(1) | — | % | -1.9 | % | 1.9 | pts | -3.7 | % | -1.4 | % | -2.3 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Catastrophe losses | Catastrophe losses | 79.7 | % | 27.9 | % | 51.8 | pts | 46.1 | % | 24.1 | % | 22.0 | pts | Catastrophe losses | 21.8 | % | 67.3 | % | -45.5 | pts | 37.8 | % | 38.4 | % | -0.6 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying combined ratio* | Underlying combined ratio* | 72.7 | % | 85.2 | % | -12.5 | pts | 76.2 | % | 77.5 | % | -1.3 | pts | Underlying combined ratio* | 80.1 | % | 70.7 | % | 9.4 | pts | 77.5 | % | 75.4 | % | 2.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Risks in force (in thousands) | Risks in force (in thousands) | Risks in force (in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Auto(2) | Auto(2) | 371 | 387 | -4.1 | % | Auto(2) | 368 | 381 | -3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property | Property | 174 | 180 | -3.3 | % | Property | 172 | 178 | -3.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 545 | 567 | -3.9 | % | Total | 540 | 559 | -3.4 | % |
Horace Mann Educators Corporation | 35 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 36 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 37 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life & Retirement | Life & Retirement | Life & Retirement | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums written and contract deposits* | Net premiums written and contract deposits* | $ | 133.6 | $ | 146.3 | -8.7 | % | $ | 270.0 | $ | 276.6 | -2.4 | % | Net premiums written and contract deposits* | $ | 138.0 | $ | 150.8 | -8.5 | % | $ | 408.0 | $ | 427.4 | -4.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | 36.8 | 38.5 | -4.4 | % | 72.6 | 77.9 | -6.8 | % | Net premiums and contract charges earned | 37.1 | 40.4 | -8.2 | % | 109.7 | 118.3 | -7.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 88.4 | 81.7 | 8.2 | % | 172.6 | 161.6 | 6.8 | % | Net investment income | 81.4 | 85.8 | -5.1 | % | 254.0 | 247.4 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 4.4 | 5.0 | -12.0 | % | 9.3 | 9.8 | -5.1 | % | Other income | 4.1 | 5.1 | -19.6 | % | 13.4 | 14.9 | -10.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life mortality costs | Life mortality costs | 8.2 | 8.5 | -3.5 | % | 20.4 | 23.1 | -11.7 | % | Life mortality costs | 11.1 | 10.3 | 7.8 | % | 31.5 | 33.4 | -5.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 42.2 | 51.1 | -17.4 | % | 82.9 | 101.6 | -18.4 | % | Interest credited | 45.5 | 51.8 | -12.2 | % | 128.4 | 153.4 | -16.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in reserves | Change in reserves | 22.5 | 14.5 | 55.2 | % | 44.2 | 29.5 | 49.8 | % | Change in reserves | 21.6 | 14.5 | 49.0 | % | 65.8 | 44.0 | 49.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | 24.8 | 24.6 | 0.8 | % | 50.6 | 48.3 | 4.8 | % | Operating expenses | 24.2 | 25.7 | -5.8 | % | 74.8 | 74.0 | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC amortization expense, excluding unlocking | DAC amortization expense, excluding unlocking | 7.2 | 6.6 | 9.1 | % | 14.6 | 13.5 | 8.1 | % | DAC amortization expense, excluding unlocking | 6.7 | 6.6 | 1.5 | % | 21.3 | 20.1 | 6.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DAC unlocking | DAC unlocking | 3.7 | (0.4) | N.M. | 6.2 | (1.0) | N.M. | DAC unlocking | 0.2 | (0.8) | N.M. | 6.4 | (1.8) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 0.3 | 0.2 | 50.0 | % | 0.6 | 0.6 | — | % | Intangible asset amortization expense | 0.2 | 0.4 | -50.0 | % | 0.8 | 1.0 | -20.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 20.7 | 20.1 | 3.0 | % | 35.0 | 33.7 | 3.9 | % | Income before income taxes | 13.1 | 22.8 | -42.5 | % | 48.1 | 56.5 | -14.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 3.4 | 3.6 | -5.6 | % | 5.9 | 5.8 | 1.7 | % | Income tax expense | 0.4 | 3.7 | -89.2 | % | 6.3 | 9.5 | -33.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 17.3 | 16.5 | 4.8 | % | 29.1 | 27.9 | 4.3 | % | Net income | 12.7 | 19.1 | -33.5 | % | 41.8 | 47.0 | -11.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core earnings* | Core earnings* | 17.3 | 16.5 | 4.8 | % | 29.1 | 27.9 | 4.3 | % | Core earnings* | 12.7 | 19.1 | -33.5 | % | 41.8 | 47.0 | -11.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life policies in force (in thousands) | Life policies in force (in thousands) | 162 | 163 | -0.6 | % | Life policies in force (in thousands) | 162 | 163 | -0.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance in force | Life insurance in force | $ | 19,714 | $ | 19,239 | 2.5 | % | Life insurance in force | $ | 19,815 | $ | 19,384 | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Life persistency - LTM | Life persistency - LTM | 96.2 | % | 96.0 | % | 0.2 | pts | Life persistency - LTM | 96.0 | % | 96.2 | % | -0.2 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annuity contracts in force (in thousands) | Annuity contracts in force (in thousands) | 228 | 229 | -0.4 | % | Annuity contracts in force (in thousands) | 227 | 229 | -0.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Advantage® contracts in force (in thousands) | Retirement Advantage® contracts in force (in thousands) | 16 | 13 | 23.1 | % | Retirement Advantage® contracts in force (in thousands) | 16 | 14 | 14.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash value persistency - LTM | Cash value persistency - LTM | 94.1 | % | 94.9 | % | -0.8 | pts | Cash value persistency - LTM | 94.0 | % | 94.7 | % | -0.7 | pts |
Horace Mann Educators Corporation | 38 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | June 30, 2022 | ($ in millions) | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guaranteed minimum crediting rates: | Guaranteed minimum crediting rates: | Guaranteed minimum crediting rates: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 2% | Less than 2% | 56.0 | % | $ | 1,422.2 | 73.0 | % | 49.2 | % | $ | 1,037.9 | Less than 2% | 56.3 | % | $ | 1,436.9 | 65.7 | % | 47.1 | % | $ | 943.6 | ||||||||||||||||||||||||||||||||||||||||||
Equal to 2% but less than 3% | Equal to 2% but less than 3% | 11.1 | 283.2 | 83.8 | 11.2 | 237.4 | Equal to 2% but less than 3% | 11.1 | 282.2 | 81.0 | 11.4 | 228.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equal to 3% but less than 4% | Equal to 3% but less than 4% | 24.5 | 623.1 | 99.9 | 29.5 | 622.7 | Equal to 3% but less than 4% | 24.2 | 618.4 | 100.0 | 30.9 | 618.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equal to 4% but less than 5% | Equal to 4% but less than 5% | 6.5 | 165.1 | 100.0 | 7.8 | 165.1 | Equal to 4% but less than 5% | 6.5 | 165.0 | 100.0 | 8.2 | 165.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
5% or higher | 5% or higher | 1.9 | 47.9 | 100.0 | 2.3 | 47.9 | 5% or higher | 1.9 | 47.6 | 100.0 | 2.4 | 47.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 100.0 | % | $ | 2,541.5 | 83.1 | % | 100.0 | % | $ | 2,111.0 | Total | 100.0 | % | $ | 2,550.1 | 78.5 | % | 100.0 | % | $ | 2,002.9 |
Horace Mann Educators Corporation | 39 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | 2022 | 2021 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental & Group Benefits | Supplemental & Group Benefits | Supplemental & Group Benefits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net premiums and contract charges earned | Net premiums and contract charges earned | $ | 69.1 | $ | 32.3 | 113.9 | % | $ | 139.0 | $ | 64.7 | 114.8 | % | Net premiums and contract charges earned | $ | 68.3 | $ | 31.7 | 115.5 | % | $ | 207.3 | $ | 96.4 | 115.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 9.6 | 6.4 | 50.0 | % | 16.7 | 11.8 | 41.5 | % | Net investment income | 8.7 | 7.2 | 20.8 | % | 25.4 | 19.0 | 33.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | (4.8) | 0.6 | N.M. | (3.2) | 1.3 | N.M. | Other income | (5.2) | 0.6 | N.M. | (8.4) | 1.9 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, settlement expenses and change in reserves | Benefits, settlement expenses and change in reserves | 26.7 | 10.1 | N.M. | 61.5 | 20.2 | N.M. | Benefits, settlement expenses and change in reserves | 18.6 | 10.5 | N.M. | 80.1 | 30.7 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest credited | Interest credited | 0.2 | 0.1 | N.M. | 0.3 | 0.1 | N.M. | Interest credited | 0.4 | 0.1 | N.M. | 0.7 | 0.2 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses (includes DAC unlocking and amortization expense) | Operating expenses (includes DAC unlocking and amortization expense) | 26.5 | 10.7 | 147.7 | % | 52.0 | 21.7 | 139.6 | % | Operating expenses (includes DAC unlocking and amortization expense) | 24.5 | 11.4 | 114.9 | % | 76.5 | 33.1 | 131.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | Intangible asset amortization expense | 3.9 | 3.0 | 30.0 | % | 7.8 | 5.9 | 32.2 | % | Intangible asset amortization expense | 4.0 | 2.9 | 37.9 | % | 11.8 | 8.8 | 34.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 16.6 | 15.4 | 7.8 | % | 30.9 | 29.9 | 3.3 | % | Income before income taxes | 24.3 | 14.6 | 66.4 | % | 55.2 | 44.5 | 24.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 13.2 | 12.0 | 10.0 | % | 24.4 | 23.3 | 4.7 | % | Net income | 19.2 | 11.5 | 67.0 | % | 43.6 | 34.8 | 25.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core earnings* | Core earnings* | 13.2 | 12.0 | 10.0 | % | 24.4 | 23.3 | 4.7 | % | Core earnings* | 19.2 | 11.5 | 67.0 | % | 43.6 | 34.8 | 25.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits ratio(1) | Benefits ratio(1) | 38.9 | % | 31.6 | % | 7.3 | pts | 44.5 | % | 31.4 | % | 13.1 | pts | Benefits ratio(1) | 27.8 | % | 33.4 | % | -5.6 | pts | 39.0 | % | 32.1 | % | 6.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expense ratio(2) | Operating expense ratio(2) | 35.9 | % | 27.2 | % | 8.7 | pts | 34.1 | % | 27.9 | % | 6.2 | pts | Operating expense ratio(2) | 34.1 | % | 28.9 | % | 5.2 | pts | 34.1 | % | 28.2 | % | 5.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax profit margin(3) | Pretax profit margin(3) | 22.5 | % | 39.2 | % | -16.7 | pts | 20.3 | % | 38.4 | % | -18.1 | pts | Pretax profit margin(3) | 33.8 | % | 37.0 | % | -3.2 | pts | 24.6 | % | 37.9 | % | -13.3 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Voluntary products benefits ratio | Voluntary products benefits ratio | 34.3 | % | 31.3 | % | 3.0 | pts | 31.8 | % | 31.1 | % | 0.7 | pts | Voluntary products benefits ratio | 31.4 | % | 33.9 | % | -2.5 | pts | 31.7 | % | 31.8 | % | -0.1 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Voluntary premium persistency (rolling 12 months) | Voluntary premium persistency (rolling 12 months) | 92.0 | % | 90.7 | % | 1.3 | pts | 92.0 | % | 90.7 | % | 1.3 | pts | Voluntary premium persistency (rolling 12 months) | 91.3 | % | 92.2 | % | -0.9 | pts | 91.3 | % | 92.2 | % | -0.9 | pts | ||||||||||||||||||||||||||||||||||||||||||||||||||
Employer-sponsored products benefits ratio | Employer-sponsored products benefits ratio | 42.6 | % | — | % | 42.6 | pts | 54.4 | % | — | % | N.M. | Employer-sponsored products benefits ratio | 25.0 | % | — | % | N.M. | 44.8 | % | — | % | N.M. |
Horace Mann Educators Corporation | 40 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | $ | (4.3) | $ | (3.5) | -22.9 | % | $ | (8.2) | $ | (6.9) | -18.8 | % | Interest expense | $ | (5.3) | $ | (3.4) | -55.9 | % | $ | (13.5) | $ | (10.3) | -31.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) pretax | (15.5) | 4.9 | N.M. | (31.0) | (4.1) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | (2.5) | (2.8) | 10.7 | % | (4.5) | (4.7) | 4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) after tax | (12.2) | 3.9 | N.M. | (24.4) | (3.2) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment losses, pretax | Net investment losses, pretax | (12.8) | (6.5) | N.M. | (43.8) | (10.6) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses, net investment income and other income | Other operating expenses, net investment income and other income | (1.4) | (2.2) | 36.4 | % | (5.9) | (6.9) | 14.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment losses, after tax | Net investment losses, after tax | (10.1) | (5.1) | N.M. | (34.5) | (8.3) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | (17.6) | (1.1) | N.M. | (34.6) | (12.4) | N.M. | Net loss | (15.5) | (9.6) | -61.5 | % | (50.1) | (22.0) | -127.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Core loss* | Core loss* | (5.4) | (5.0) | -8.0 | % | (10.2) | (9.2) | -10.9 | % | Core loss* | (5.4) | (4.5) | -20.0 | % | (15.6) | (13.7) | -13.9 | % |
($ in millions) | ($ in millions) | Three Months Ended June 30, | 2022-2021 | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Three Months Ended September 30, | 2022-2021 | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | 2022 | 2021 | Change % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income - investment portfolio | Net investment income - investment portfolio | $ | 79.4 | $ | 84.1 | -5.6 | % | $ | 152.4 | $ | 155.2 | -1.8 | % | Net investment income - investment portfolio | $ | 70.9 | $ | 78.1 | -9.2 | % | $ | 223.3 | $ | 233.3 | -4.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment income - deposit asset on reinsurance | Investment income - deposit asset on reinsurance | 25.8 | 25.1 | 2.8 | % | 50.7 | 49.5 | 2.4 | % | Investment income - deposit asset on reinsurance | 26.7 | 25.6 | 4.3 | % | 77.4 | 75.1 | 3.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net investment income | Total net investment income | 105.2 | 109.2 | -3.7 | % | 203.1 | 204.7 | -0.8 | % | Total net investment income | 97.6 | 103.7 | -5.9 | % | 300.7 | 308.4 | -2.5 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net investment gains (losses) | (15.5) | 4.9 | N.M. | (31.0) | (4.1) | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net investment losses | Pretax net investment losses | (12.8) | (6.5) | N.M. | (43.8) | (10.6) | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax net unrealized investment gains (losses) on fixed maturity securities | Pretax net unrealized investment gains (losses) on fixed maturity securities | (358.5) | 505.6 | N.M. | Pretax net unrealized investment gains (losses) on fixed maturity securities | (632.0) | 466.4 | N.M. |
Horace Mann Educators Corporation | 41 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | June 30, 2022 | ($ in millions) | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of Issuers | Fair Value | Amortized Cost, net | Pretax Net Unrealized Gain (Loss) | Number of Issuers | Fair Value | Amortized Cost, net | Pretax Net Unrealized Loss | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | Corporate bonds | Corporate bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||
Banking & Finance | Banking & Finance | 178 | $ | 504.2 | $ | 543.3 | $ | (39.1) | Banking & Finance | 177 | $ | 470.5 | $ | 534.2 | $ | (63.7) | ||||||||||||||||||||||||||||||||||||
Miscellaneous | Miscellaneous | 36 | 152.3 | 154.4 | (2.1) | |||||||||||||||||||||||||||||||||||||||||||||||
Insurance | Insurance | 59 | 162.4 | 172.0 | (9.6) | Insurance | 58 | 150.7 | 170.5 | (19.8) | ||||||||||||||||||||||||||||||||||||||||||
Miscellaneous | 40 | 150.9 | 153.8 | (2.9) | ||||||||||||||||||||||||||||||||||||||||||||||||
Energy | Energy | 93 | 149.9 | 164.6 | (14.7) | Energy | 81 | 134.4 | 157.7 | (23.3) | ||||||||||||||||||||||||||||||||||||||||||
HealthCare, Pharmacy | HealthCare, Pharmacy | 89 | 139.9 | 158.3 | (18.4) | HealthCare, Pharmacy | 80 | 119.7 | 147.9 | (28.2) | ||||||||||||||||||||||||||||||||||||||||||
Utilities | Utilities | 83 | 130.5 | 145.8 | (15.3) | Utilities | 78 | 111.1 | 134.5 | (23.4) | ||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | 47 | 107.3 | 114.2 | (6.9) | Real Estate | 46 | 105.1 | 118.2 | (13.1) | ||||||||||||||||||||||||||||||||||||||||||
Transportation | Transportation | 54 | 104.2 | 113.0 | (8.8) | Transportation | 50 | 89.3 | 102.9 | (13.6) | ||||||||||||||||||||||||||||||||||||||||||
Food and Beverage | Food and Beverage | 36 | 82.6 | 89.0 | (6.4) | Food and Beverage | 32 | 72.1 | 83.1 | (11.0) | ||||||||||||||||||||||||||||||||||||||||||
Consumer Products | Consumer Products | 60 | 74.8 | 86.9 | (12.1) | Consumer Products | 53 | 62.5 | 80.6 | (18.1) | ||||||||||||||||||||||||||||||||||||||||||
All other corporates(1) | All other corporates(1) | 360 | 543.8 | 601.9 | (58.1) | All other corporates(1) | 305 | 460.1 | 544.7 | (84.6) | ||||||||||||||||||||||||||||||||||||||||||
Total corporate bonds | Total corporate bonds | 1,099 | 2,150.5 | 2,342.8 | (192.3) | Total corporate bonds | 996 | 1,927.8 | 2,228.7 | (300.9) | ||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | Mortgage-backed securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Government and federally sponsored agencies | U.S. Government and federally sponsored agencies | 260 | 405.1 | 426.9 | (21.8) | U.S. Government and federally sponsored agencies | 249 | 381.6 | 425.5 | (43.9) | ||||||||||||||||||||||||||||||||||||||||||
Commercial(2) | Commercial(2) | 151 | 302.5 | 316.7 | (14.2) | Commercial(2) | 159 | 290.9 | 322.3 | (31.4) | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 33 | 16.8 | 17.5 | (0.7) | Other | 31 | 13.0 | 14.1 | (1.1) | ||||||||||||||||||||||||||||||||||||||||||
Municipal bonds(3) | Municipal bonds(3) | 617 | 1,426.3 | 1,476.6 | (50.3) | Municipal bonds(3) | 616 | 1,307.9 | 1,440.9 | (133.0) | ||||||||||||||||||||||||||||||||||||||||||
Government bonds | Government bonds | Government bonds | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. | 43 | 371.3 | 409.5 | (38.2) | U.S. | 44 | 345.4 | 412.0 | (66.6) | ||||||||||||||||||||||||||||||||||||||||||
Foreign | Foreign | 8 | 41.4 | 41.3 | 0.1 | Foreign | 7 | 35.4 | 37.2 | (1.8) | ||||||||||||||||||||||||||||||||||||||||||
Collateralized loan obligations(4) | Collateralized loan obligations(4) | 216 | 680.5 | 701.9 | (21.4) | Collateralized loan obligations(4) | 218 | 679.7 | 707.3 | (27.6) | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 118 | 293.6 | 313.3 | (19.7) | Asset-backed securities | 125 | 290.4 | 316.1 | (25.7) | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 2,545 | $ | 5,688.0 | $ | 6,046.5 | $ | (358.5) | Total fixed maturity securities | 2,445 | $ | 5,272.1 | $ | 5,904.1 | $ | (632.0) | ||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | Non-redeemable preferred stocks | 29 | $ | 98.8 | Non-redeemable preferred stocks | 29 | $ | 97.1 | ||||||||||||||||||||||||||||||||||||||||||||
Common stocks | Common stocks | 5 | 0.6 | Common stocks | 5 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||
Closed-end fund | Closed-end fund | 1 | 17.9 | Closed-end fund | 1 | 15.6 | ||||||||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 35 | $ | 117.3 | Total equity securities | 35 | $ | 113.8 | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 2,580 | $ | 5,805.3 | Total | 2,480 | $ | 5,385.9 |
Horace Mann Educators Corporation | 42 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Percent of Portfolio Fair Value | June 30, 2022 | ($ in millions) | Percent of Portfolio Fair Value | September 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | June 30, 2022 | Fair Value | Amortized Cost, net | December 31, 2021 | September 30, 2022 | Fair Value | Amortized Cost, net | |||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | 10.1 | % | 10.1 | % | $ | 574.8 | $ | 600.6 | AAA | 10.1 | % | 10.8 | % | $ | 567.8 | $ | 610.1 | ||||||||||||||||||||||||||||||||||
AA(2) | AA(2) | 37.1 | 38.4 | 2,183.2 | 2,321.1 | AA(2) | 37.1 | 38.6 | 2,034.2 | 2,299.9 | ||||||||||||||||||||||||||||||||||||||||||
A | A | 19.2 | 18.0 | 1,025.8 | 1,075.1 | A | 19.2 | 17.9 | 944.9 | 1,040.2 | ||||||||||||||||||||||||||||||||||||||||||
BBB | BBB | 23.6 | 23.9 | 1,356.6 | 1,475.7 | BBB | 23.6 | 23.6 | 1,247.3 | 1,436.6 | ||||||||||||||||||||||||||||||||||||||||||
BB | BB | 3.1 | 2.8 | 157.8 | 172.6 | BB | 3.1 | 2.5 | 131.7 | 148.2 | ||||||||||||||||||||||||||||||||||||||||||
B | B | 1.3 | 1.5 | 84.9 | 92.2 | B | 1.3 | 1.0 | 52.4 | 58.8 | ||||||||||||||||||||||||||||||||||||||||||
CCC or lower | CCC or lower | — | — | 1.0 | 1.1 | CCC or lower | — | 0.1 | 2.9 | 3.2 | ||||||||||||||||||||||||||||||||||||||||||
Not rated(3) | Not rated(3) | 5.6 | 5.3 | 303.9 | 308.1 | Not rated(3) | 5.6 | 5.5 | 290.9 | 307.1 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | Total fixed maturity securities | 100.0 | % | 100.0 | % | $ | 5,688.0 | $ | 6,046.5 | Total fixed maturity securities | 100.0 | % | 100.0 | % | $ | 5,272.1 | $ | 5,904.1 | ||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | Equity securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | — | — | $ | — | AAA | — | % | — | % | $ | — | ||||||||||||||||||||||||||||||||||||||||
AA | AA | — | — | — | AA | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
A | A | 0.5 | % | 0.5 | % | 0.6 | A | 0.5 | 0.5 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||
BBB | BBB | 67.3 | 69.0 | 80.9 | BBB | 67.3 | 70.0 | 79.7 | ||||||||||||||||||||||||||||||||||||||||||||
BB | BB | 12.7 | 13.2 | 15.5 | BB | 12.7 | 13.1 | 14.9 | ||||||||||||||||||||||||||||||||||||||||||||
B | B | — | — | — | B | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
CCC or lower | CCC or lower | — | — | — | CCC or lower | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Not rated | Not rated | 19.5 | 17.3 | 20.3 | Not rated | 19.5 | 16.4 | 18.6 | ||||||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 100.0 | % | 100.0 | % | $ | 117.3 | Total equity securities | 100.0 | % | 100.0 | % | $ | 113.8 | ||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 5,805.3 | Total | $ | 5,385.9 |
Horace Mann Educators Corporation | 43 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Six Months Ended June 30, | 2022-2021 | ($ in millions) | Nine Months Ended September 30, | 2022-2021 | ||||||||||||||||||||||||||||||||||
2022 | 2021 | Change % | 2022 | 2021 | Change % | |||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | $ | 80.0 | $ | 116.6 | -31.4 | % | Net cash provided by operating activities | $ | 115.8 | $ | 178.1 | -35.0 | % | ||||||||||||||||||||||||||
Net cash used in investing activities | Net cash used in investing activities | (296.1) | (343.1) | 13.7 | % | Net cash used in investing activities | (295.9) | (351.0) | 15.7 | % | ||||||||||||||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 132.5 | 233.6 | -43.3 | % | Net cash provided by financing activities | 82.6 | 190.8 | -56.7 | % | ||||||||||||||||||||||||||||||
Net increase (decrease) in cash | Net increase (decrease) in cash | (83.6) | 7.1 | N.M. | Net increase (decrease) in cash | (97.5) | 17.9 | N.M. | ||||||||||||||||||||||||||||||||
Cash at beginning of period | Cash at beginning of period | 133.7 | 22.3 | N.M. | Cash at beginning of period | 133.7 | 22.3 | N.M. | ||||||||||||||||||||||||||||||||
Cash at end of period | Cash at end of period | $ | 50.1 | $ | 29.4 | 70.4 | % | Cash at end of period | $ | 36.2 | $ | 40.2 | -10.0 | % |
Horace Mann Educators Corporation | 44 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Six Months Ended June 30, | 2022-2021 | 2022-2021 | ($ in millions) | Nine Months Ended September 30, | 2022-2021 | 2022-2021 | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Change $ | Change % | 2022 | 2021 | Change $ | Change % | |||||||||||||||||||||||||||||||||||||||||||||
Balance at beginning of the period | Balance at beginning of the period | $ | 782.5 | $ | 590.5 | $ | 192.0 | 32.5 | % | Balance at beginning of the period | $ | 782.5 | $ | 590.5 | $ | 192.0 | 32.5 | % | ||||||||||||||||||||||||||||||||||
Advances received from FHLB funding agreements | Advances received from FHLB funding agreements | 94.0 | 267.0 | (173.0) | -64.8 | % | Advances received from FHLB funding agreements | 154.0 | 446.0 | (292.0) | -65.5 | % | ||||||||||||||||||||||||||||||||||||||||
Principal repayments on FHLB funding agreements | Principal repayments on FHLB funding agreements | (10.0) | — | (10.0) | N.M. | Principal repayments on FHLB funding agreements | (94.0) | (204.0) | 110.0 | N.M. | ||||||||||||||||||||||||||||||||||||||||||
Balance at end of the period | Balance at end of the period | $ | 866.5 | $ | 857.5 | $ | 9.0 | 1.0 | % | Balance at end of the period | $ | 842.5 | $ | 832.5 | $ | 10.0 | 1.2 | % |
Horace Mann Educators Corporation | 45 | Quarterly Report on Form 10-Q |
Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & 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 | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||
☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||
☑ | ☑ | ☑ | ||||||||||||||||||||||||
Proceeds from reverse repurchase agreements | ☑ | ☑ | ☑ | |||||||||||||||||||||||
Intercompany loans | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||
Capital contributions from parent | ☑ | ☑ | ☑ | |||||||||||||||||||||||
Dividends or return of capital from subsidiaries | ☑ | |||||||||||||||||||||||||
Tax refunds/settlements | ☑ | ☑ | ☑ | ☑ | ||||||||||||||||||||||
☑ | ||||||||||||||||||||||||||
Proceeds from debt issuances | ☑ | |||||||||||||||||||||||||
Proceeds from senior revolving credit facility | ☑ | |||||||||||||||||||||||||
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 | ☑ | ☑ | ☑ | |||||||||||||||||||||||
☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||
☑ | ☑ | ☑ | ☑ | |||||||||||||||||||||||
Repayment of FHLB borrowing and funding agreements | ☑ | ☑ | ☑ | |||||||||||||||||||||||
Repayment of reverse repurchase 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 on senior revolving credit facility | ☑ | |||||||||||||||||||||||||
Payments related to employee benefit plans | ☑ | |||||||||||||||||||||||||
Payments for business acquisitions | ☑ |
Horace Mann Educators Corporation | 46 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 47 | Quarterly Report on Form 10-Q |
($ in millions) | ($ in millions) | Interest Rates | Final Maturity | June 30, 2022 | December 31, 2021 | ($ in millions) | Interest Rates | Final Maturity | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
($ in millions) | Interest Rates | Final Maturity | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | Short-term debt | Short-term debt | |||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Credit Facility | Bank Credit Facility | Variable | 2026 | $ | 249.0 | $ | 249.0 | Bank Credit Facility | Variable | 2026 | $ | 249.0 | $ | 249.0 | |||||||||||||||||||||||||||||||||||||||
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 $0.3 and unamortized debt issuance costs of $0.9 and $1.1 | 4.50% Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.3 and $0.3 and unamortized debt issuance costs of $0.9 and $1.1 | 4.50% | 2025 | 248.8 | 248.6 | 4.50% Senior Notes, Aggregate principal amount of $250.0 less unaccrued discount of $0.3 and $0.3 and unamortized debt issuance costs of $0.9 and $1.1 | 4.50% | 2025 | 248.8 | 248.6 | |||||||||||||||||||||||||||||||||||||||||||
FHLB borrowings | FHLB borrowings | 0.00% | 2022 | — | 5.0 | FHLB borrowings | 0.00% | 2022 | — | 5.0 | |||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 497.8 | $ | 502.6 | Total | $ | 497.8 | $ | 502.6 |
Horace Mann Educators Corporation | 48 | Quarterly Report on Form 10-Q |
Insurance Financial | Affirmed/ | |||||||||||||||||||||||||||||||
Strength Ratings (Outlook) | Debt Ratings (Outlook) | Reviewed | ||||||||||||||||||||||||||||||
A.M. Best | ||||||||||||||||||||||||||||||||
HMEC (parent company) | N.A. | bbb | (stable) | 7/28/2022 | ||||||||||||||||||||||||||||
HMEC's Life & Retirement subsidiaries | A | (stable) | N.A. | 7/28/2022 | ||||||||||||||||||||||||||||
HMEC's Property & Casualty subsidiaries | A | (stable) | N.A. | 7/28/2022 | ||||||||||||||||||||||||||||
HMEC's Supplemental & Group Benefits subsidiaries | ||||||||||||||||||||||||||||||||
Madison National Life Insurance Company | A- | (stable) | N.A. | 7/28/2022 | ||||||||||||||||||||||||||||
National Teachers Associates Life Insurance Company | A | (stable) | N.A. | 7/28/2022 | ||||||||||||||||||||||||||||
Fitch | A | (stable) | BBB | (stable) | ||||||||||||||||||||||||||||
Moody's | ||||||||||||||||||||||||||||||||
HMEC (parent company) | Baa2 | (stable) | ||||||||||||||||||||||||||||||
HMEC's Life Group | A2 | (stable) | 7/27/2022 | |||||||||||||||||||||||||||||
HMEC's P&C Group | A2 | (stable) | ||||||||||||||||||||||||||||||
S&P | A | (stable) | BBB | (stable) | 2/14/2022 |
Horace Mann Educators Corporation | 49 | Quarterly Report on Form 10-Q |
Horace Mann Educators Corporation | 50 | Quarterly Report on Form 10-Q |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased under the 2015 Program | Approximate Dollar Value of Shares that may yet be Purchased under the 2015 Program | ||||||||||||||||||||||
April 1 - 30 | — | $ | — | — | $ | 13.1 | million | |||||||||||||||||||
May 1 - 31 | 226,640 | 38.09 | 226,640 | $ | 4.5 | million | ||||||||||||||||||||
June 1 - 30 | 88,985 | 35.65 | 88,985 | $ | 1.3 | million | ||||||||||||||||||||
Total | 315,625 | $ | 37.40 | 315,625 | $ | 1.3 | million |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased under the Programs | Approximate Dollar Value of Shares that may yet be Purchased under the Program | ||||||||||||||||||||||
July 1 - 31 | 295,445 | $ | 33.87 | 295,445 | $ | 41.3 | million | |||||||||||||||||||
August 1 - 31 | — | — | — | $ | 41.3 | million | ||||||||||||||||||||
September 1 - 30 | — | — | — | $ | 41.3 | million | ||||||||||||||||||||
Total | 295,445 | $ | 33.87 | 295,445 | $ | 41.3 | million |
Exhibit | ||||||||
No. | Description | |||||||
(3) Articles of incorporation and bylaws: | ||||||||
3.1 | ||||||||
Horace Mann Educators Corporation | 51 | Quarterly Report on Form 10-Q |
3.2 | ||||||||
(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)* | ||||||||
Horace Mann Educators Corporation | 52 | Quarterly Report on Form 10-Q |
10.2(d)* | ||||||||
10.2(e)* | ||||||||
10.3* | ||||||||
10.3(a)* | ||||||||
10.3(b)* | ||||||||
10.3(c)* | ||||||||
10.3(d)* | HMEC 2010 Comprehensive Executive Compensation Plan (As Amended and Restated Effective May 20, 2015) Performance-Based Restricted Stock Units Agreement - Employee Grantee, | |||||||
10.3(e)* | ||||||||
10.3(f)* | ||||||||
10.3(g)* | ||||||||
10.4* | ||||||||
10.5* | ||||||||
Horace Mann Educators Corporation | 53 | Quarterly Report on Form 10-Q |
10.6* | ||||||||
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 | ||||||||
Horace Mann Educators Corporation | 54 | Quarterly Report on Form 10-Q |
31.2 | ||||||||
(32) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002: | ||||||||
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 | 55 | 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 | 56 | Quarterly Report on Form 10-Q |