Horace Mann Educators’ third quarter results were met with a positive market reaction, as the company outperformed Wall Street’s expectations on both revenue and adjusted earnings per share. Management pointed to strong growth across all business lines, particularly in the Supplemental and Group Benefits segment, and cited lower catastrophe losses in Property and Casualty as a key factor supporting improved profitability. CEO Marita Zuraitis emphasized that “sales are outpacing the prior year across all business lines” and noted the impact of recent actions to reduce volatility and improve efficiency, particularly in the property portfolio.
Is now the time to buy HMN? Find out in our full research report (it’s free for active Edge members).
Horace Mann Educators (HMN) Q3 CY2025 Highlights:
- Revenue: $438.5 million vs analyst estimates of $434.7 million (6.4% year-on-year growth, 0.9% beat)
- Adjusted EPS: $1.36 vs analyst estimates of $1.11 (22.2% beat)
- Adjusted Operating Income: $71.5 million (16.3% margin, 67.4% year-on-year growth)
- Operating Margin: 16.3%, up from 10.4% in the same quarter last year
- Market Capitalization: $1.86 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Horace Mann Educators’s Q3 Earnings Call
- Jack (BMO Capital Markets) asked about policy count growth in P&C and the sustainability of retention rates. CEO Marita Zuraitis emphasized ongoing sales momentum and retention stability, noting steady growth across all business lines.
- Jack (BMO Capital Markets) followed up on the drivers of updated EPS guidance and expense outlook. CFO Ryan Greenier explained that strategic investments and normalization of one-time items would impact fourth quarter earnings, while reiterating the company’s focus on balancing growth with expense discipline.
- John Barnidge (Piper Sandler) inquired about lead management capabilities in Supplemental and Group Benefits. Zuraitis detailed investments in both proprietary and partnered lead management systems, highlighting the company’s commitment to expanding in the educator benefits space.
- John Barnidge (Piper Sandler) questioned asset management partnerships and product innovation in retirement accounts. Greenier responded that Horace Mann’s conservative educator customer base continues to prefer fixed and fixed-index products, with limited demand for alternative offerings.
- Wilma Jackson Burdis (Raymond James) asked about the effectiveness of catastrophe mitigation efforts and outlook for cat losses. Greenier said non-rate actions are working as designed but cautioned that this year’s low catastrophe activity is unlikely to persist into 2026.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace at which digital engagement and lead generation translate into policy growth, (2) execution on expense reduction initiatives, especially through GenAI and operational streamlining, and (3) the effectiveness of catastrophe risk mitigation as weather patterns normalize. Progress in expanding educator partnerships and new product launches will also be critical signposts for sustained growth.
Horace Mann Educators currently trades at $45.62, in line with $45.22 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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