Horace Mann Educators Corporation ( HMN Quick Quote HMN - Free Report) delivered third-quarter 2020 adjusted earnings of 82 cents per share, beating the Zacks Consensus Estimate of 72 cents by 13.9%. The bottom line also improved 28.1% year over year on the back of lower expenses. Quarterly Operational Update
Total revenues of $337 million rose 0.1% year over year on higher net investment income.
Net income soared 43.7% year over year. Net investment income of the company inched up 0.8% year over year. Core earnings of the company increased 28.1% year over year in the third quarter. Operating expenses of the company fell 9% year over year on lower benefits, claims and settlement expenses as well as interest credited. Quarterly Segment Update Property and Casualty’s written premiums declined 5.3% year over year in the third quarter to $172.8 million. This was due to the return of the reinstatement premiums related to the PG&E subrogation recovery. Net investment income from this segment jumped 28% year over year. Core earnings from the segment were up 11.3% year over year on the back of higher net investment income owing to limited partnership returns. Combined ratio expanded 30 basis points (bps) year over year. Supplemental segment’s sales were $1.4 million in the quarter, down 61.1% year over year due to limited school access because of the coronavirus pandemic. Written premiums from the segment dipped 2.1% year over year to $32 million. Core earnings surged 53.6% year over year. Core earnings of the company reflect favorable business trends and short-term benefits from alterations in policyholder behavior. Retirement Segment’s annuity contract deposits climbed 6.9% year over year. Core earnings from the business soared 32.2% year over year. This segment witnessed net income of $7.8 million in the quarter under review, up 32.2% year over year on the back of lower costs. Life Segment's sales plunged 38.6% from the year-ago quarter. Core earnings from this segment fell 15.7% year over year. Written premiums from the business slipped 2.9% from the year-ago period. Financial Position
As of Sep 30, 2020, total assets were $13 billion, up 5.4% year over year.
The company exited the third quarter with shareholders’ equity of $1.72 billion. The company had total debt of $437.2 million as of Sep 30, 2020, up 1.4% year over year. 2020 Outlook
The company raised its full-year earnings per share view to the band of $2.95-$3.15. Core ROE is estimated to be more than 9%.
Horace Mann Educators has a Zacks Rank #3 (Hold), currently. You can see
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