HORACE MANN EDUCATORS CORP /DE/HMN
HORACE MANN EDUCATORS CORP /DE/ Segments Disclosure
Segment Information
The Company conducts and manages its business through four reporting segments. The three reporting segments representing the major lines of business, are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those reporting segments, but classifies those items in the fourth reporting segment, Corporate & Other. Corporate & Other includes corporate debt service, net investment gains (losses) and certain public company expenses, as well as corporate debt retirement costs, when applicable. In addition to these transactions, Corporate & Other also includes legacy commercial claims.
The accounting policies of the reporting segments are the same as those described in Note 1-Basis of Presentation and Significant Accounting Policies. Expense allocations are based on certain assumptions and estimates primarily related to direct cost, revenue and activity; methodologies are applied consistently. Stated segment operating results would change if different methods were applied.
The Company’s Chief Executive Officer is the chief operating decision maker (CODM), responsible for reviewing financial performance and making decisions regarding the allocation of resources for the reporting segments. The Company measures and analyzes segment performance based on core earnings which differs from total income as presented in our consolidated statements of operations due to excluding the after-tax impact of net investment gains (losses), discontinued operations, the after-tax impact of goodwill and intangible asset impairments, other non-recurring or infrequent items, the cumulative effect of changes in accounting principles when applicable, and for the period ended December 31, 2025, the impacts of the immaterial correction of the prior period error discussed in Note 1. We believe core earnings is a better performance measure and indicator of the profitability and underlying trends in our business. The CODM considers actual-to-budget variances in core earnings on a monthly basis when making decisions about allocating capital and personnel to segments and evaluating product pricing.
Disaggregated financial information for these segments, as regularly provided to the CODM, is as follows:
(1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the December 31, 2025 Form 10-K.
December 31, 2025 | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | |||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||
| Net premiums and contract charges earned | $ | 802.6 | $ | 158.6 | $ | 267.2 | $ | — | $ | 1,228.4 | ||||||||||||||||||||||
Net investment income(1) | 57.1 | 373.2 | 40.3 | 3.9 | 474.5 | |||||||||||||||||||||||||||
Other segment income | 3.2 | 21.2 | (5.1) | 2.4 | 21.7 | |||||||||||||||||||||||||||
Total segment revenues | $ | 862.9 | $ | 553.0 | $ | 302.4 | $ | 6.3 | $ | 1,724.6 | ||||||||||||||||||||||
Benefits and claims expenses (excluding catastrophe losses) | $ | 366.0 | $ | 124.2 | $ | 93.1 | $ | — | $ | 583.3 | ||||||||||||||||||||||
Catastrophe losses | 61.7 | — | — | — | 61.7 | |||||||||||||||||||||||||||
Loss adjustment expenses | 68.3 | — | — | — | 68.3 | |||||||||||||||||||||||||||
Interest credited | — | 211.6 | 5.3 | — | 216.9 | |||||||||||||||||||||||||||
Operating & admin expenses | 136.3 | 99.6 | 81.7 | 16.8 | 334.4 | |||||||||||||||||||||||||||
Commissions expense | 72.0 | 42.3 | 45.1 | — | 159.4 | |||||||||||||||||||||||||||
Taxes, licenses and fees | 21.2 | 4.0 | 5.3 | 0.6 | 31.1 | |||||||||||||||||||||||||||
Deferred policy acquisition costs | (103.7) | (26.6) | (5.1) | — | (135.4) | |||||||||||||||||||||||||||
Deferred policy acquisition cost amortization | 98.2 | 24.3 | 2.0 | — | 124.5 | |||||||||||||||||||||||||||
Interest expense | — | — | — | 36.4 | 36.4 | |||||||||||||||||||||||||||
Total segment expenses | $ | 720.0 | $ | 479.4 | $ | 227.4 | $ | 53.8 | $ | 1,480.6 | ||||||||||||||||||||||
Pretax profit (loss) | $ | 142.9 | $ | 73.6 | $ | 75.0 | $ | (47.5) | $ | 244.0 | ||||||||||||||||||||||
Income tax expense | 30.5 | 12.6 | 16.3 | (11.2) | 48.2 | |||||||||||||||||||||||||||
Segment profit (loss) (Core earnings) | 112.4 | 61.0 | 58.7 | (36.3) | 195.8 | |||||||||||||||||||||||||||
| Net investment losses (after-tax) | — | — | — | (10.2) | (10.2) | |||||||||||||||||||||||||||
Non-core income adjustment (after-tax) | — | (4.2) | (13.7) | (5.6) | (23.5) | |||||||||||||||||||||||||||
Net income | $ | 112.4 | $ | 56.8 | $ | 45.0 | $ | (52.1) | $ | 162.1 | ||||||||||||||||||||||
December 31, 2024 | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | |||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||
| Net premiums and contract charges earned | $ | 736.5 | $ | 154.6 | $ | 254.9 | $ | — | $ | 1,146.0 | ||||||||||||||||||||||
Net investment income | 46.0 | 363.6 | 38.1 | (2.0) | 445.7 | |||||||||||||||||||||||||||
Other segment income | 2.3 | 20.2 | (4.6) | 2.9 | 20.8 | |||||||||||||||||||||||||||
Total segment revenues | $ | 784.8 | $ | 538.4 | $ | 288.4 | $ | 0.9 | $ | 1,612.5 | ||||||||||||||||||||||
Benefits and claims expenses (excluding catastrophe losses) | $ | 353.3 | $ | 128.1 | $ | 78.8 | $ | — | $ | 560.2 | ||||||||||||||||||||||
Catastrophe losses | 94.9 | — | — | — | 94.9 | |||||||||||||||||||||||||||
Loss adjustment expenses | 72.8 | — | — | — | 72.8 | |||||||||||||||||||||||||||
Interest credited | — | 211.2 | 4.7 | — | 215.9 | |||||||||||||||||||||||||||
Operating & admin expenses | 122.4 | 93.2 | 70.7 | 8.6 | 294.9 | |||||||||||||||||||||||||||
Commissions expense | 63.0 | 41.1 | 38.1 | — | 142.2 | |||||||||||||||||||||||||||
Taxes, licenses and fees | 20.2 | 3.8 | 5.9 | 0.7 | 30.6 | |||||||||||||||||||||||||||
Deferred policy acquisition costs | (89.8) | (28.3) | (4.1) | — | (122.2) | |||||||||||||||||||||||||||
Deferred policy acquisition cost amortization | 84.6 | 24.6 | 1.9 | — | 111.1 | |||||||||||||||||||||||||||
Interest expense | — | — | — | 34.6 | 34.6 | |||||||||||||||||||||||||||
Total segment expenses | $ | 721.4 | $ | 473.7 | $ | 196.0 | $ | 43.9 | $ | 1,435.0 | ||||||||||||||||||||||
Pretax profit (loss) | $ | 63.4 | $ | 64.7 | $ | 92.4 | $ | (43.0) | $ | 177.5 | ||||||||||||||||||||||
Income tax expense | 14.3 | 10.5 | 20.7 | (9.3) | 36.2 | |||||||||||||||||||||||||||
Segment profit (loss) (Core earnings) | 49.1 | 54.2 | 71.7 | (33.7) | 141.3 | |||||||||||||||||||||||||||
Net investment losses (after-tax) | — | — | — | (13.6) | (13.6) | |||||||||||||||||||||||||||
Non-core income adjustments (after-tax) | — | 2.1 | (11.3) | (15.7) | (24.9) | |||||||||||||||||||||||||||
Net income | $ | 49.1 | $ | 56.3 | $ | 60.4 | $ | (63.0) | $ | 102.8 | ||||||||||||||||||||||
December 31, 2023 | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | |||||||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||||||
| Net premiums and contract charges earned | $ | 645.6 | $ | 151.7 | $ | 259.8 | $ | — | $ | 1,057.1 | ||||||||||||||||||||||
Net investment income | 37.9 | 369.9 | 38.9 | (1.9) | 444.8 | |||||||||||||||||||||||||||
Other segment income | 2.8 | 17.0 | (11.1) | 5.3 | 14.0 | |||||||||||||||||||||||||||
Total segment revenues | $ | 686.3 | $ | 538.6 | $ | 287.6 | $ | 3.4 | $ | 1,515.9 | ||||||||||||||||||||||
Benefits and claims expenses (excluding catastrophe losses) | $ | 387.9 | $ | 127.7 | $ | 88.9 | $ | — | $ | 604.5 | ||||||||||||||||||||||
Catastrophe losses | 97.6 | — | — | — | 97.6 | |||||||||||||||||||||||||||
Loss adjustment expenses | 71.5 | — | — | — | 71.5 | |||||||||||||||||||||||||||
Interest credited | — | 201.8 | 3.9 | — | 205.7 | |||||||||||||||||||||||||||
Operating & admin expenses | 109.2 | 83.9 | 66.9 | 7.0 | 267.0 | |||||||||||||||||||||||||||
Commissions expense | 52.6 | 37.2 | 40.6 | — | 130.4 | |||||||||||||||||||||||||||
Taxes, licenses and fees | 17.7 | 3.9 | 5.7 | 0.4 | 27.7 | |||||||||||||||||||||||||||
Deferred policy acquisition costs | (76.2) | (26.2) | (4.6) | — | (107.0) | |||||||||||||||||||||||||||
Deferred policy acquisition cost amortization | 71.3 | 28.0 | 1.9 | — | 101.2 | |||||||||||||||||||||||||||
Interest expense | — | — | — | 29.7 | 29.7 | |||||||||||||||||||||||||||
Total segment expenses | $ | 731.6 | $ | 456.3 | $ | 203.3 | $ | 37.1 | $ | 1,428.3 | ||||||||||||||||||||||
Pretax profit (loss) | $ | (45.3) | $ | 82.3 | $ | 84.3 | $ | (33.7) | $ | 87.6 | ||||||||||||||||||||||
Income tax expense | (9.8) | 14.1 | 17.9 | (6.6) | 15.6 | |||||||||||||||||||||||||||
Segment profit (loss) (Core earnings) | (35.5) | 68.2 | 66.4 | (27.1) | 72.0 | |||||||||||||||||||||||||||
Net investment losses (after-tax) | — | — | — | (18.8) | (18.8) | |||||||||||||||||||||||||||
Non-core income adjustments (after-tax) | — | 3.3 | (11.5) | — | (8.2) | |||||||||||||||||||||||||||
Net income | $ | (35.5) | $ | 71.5 | $ | 54.9 | $ | (45.9) | $ | 45.0 | ||||||||||||||||||||||
*-Corporate & Other is net of intersegment eliminations.
| ($ in millions) | December 31, | |||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Assets | ||||||||||||||||||||
| Property & Casualty | $ | 1,372.1 | $ | 1,272.3 | $ | 1,218.1 | ||||||||||||||
| Life & Retirement | 12,204.5 | 11,670.7 | 11,365.0 | |||||||||||||||||
Supplemental & Group Benefits | 1,401.7 | 1,377.6 | 1,338.8 | |||||||||||||||||
| Corporate & Other | 308.8 | 191.0 | 190.4 | |||||||||||||||||
| Intersegment eliminations | (20.5) | (23.8) | (62.4) | |||||||||||||||||
Total | $ | 15,266.6 | $ | 14,487.8 | $ | 14,049.9 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.