Horace Mann sees Q2 EPS 18c-20c, consensus 42c

“We continue to make progress toward our objective of a double-digit return on equity in 2025 through executing on our multi-year Property & Casualty restoration strategy and driving profitable growth across the business,” said Horace Mann President and CEO Marita Zuraitis. “In the second quarter, we saw double-digit sales growth in our auto, property, life, worksite direct and employer-sponsored business lines. Notably, P&C sales increased more than 30%, which provides strong momentum entering the back-to-school season. Our $7 billion investment portfolio continues to benefit from a higher interest rate environment, with new money yields in the core portfolio exceeding book yield by 163 basis points at the end of the second quarter,” Zuraitis continued. “In the first half of 2024, we recorded lower-than-expected income in the Life & Retirement segment due to mark-to-market valuation adjustments on several commercial mortgage loan funds. These valuation adjustments occur on a one-quarter lag and have not impacted cash returns, which are performing in line with expectations with cash yields of about 7.5%. However, as a result, we expect second-quarter Life & Retirement segment earnings comparable to first quarter, and full-year earnings in the range of $50 to $56 million.”