Educational financial services, life assurance and pensions company Horace Mann Educators Corporation has reported 2020 net income of $3.17 million, down 28% compared to net income of $4.4 million reported for 2019.
Revenue for the year was $1.31 billion, down 8.9% from $1.44 billion reported for 2019.
There was better news for the Springfield, Illinois-based company in its results for the fourth quarter of 2020.
Net income for the period was $1.13 million, up 44.9% compared to net income of $780,000 reported for the final quarter of 2019. Revenue for the period was also up – to $352.3 million, an increase of 5.6% from $333.6 million reported for Q4 2019.
Horace Mann president and chief executive Marita Zuraitis said: “Never has there been a clearer example of how vital educators are to our communities than 2020. We are deeply appreciative of the work educators are doing to educate and advocate for students while facing an overwhelming array of new challenges.
“At Horace Mann, helping educators address challenges is part of who we are, and we completed a number of initiatives this year to optimise our efforts for serving customers better in a remote environment. The events of 2020 serve as reinforcement of the importance of our mission for the past 75 years – to help deserving educators achieve lifelong financial success.
“Our 2020 results reflected the pandemic’s effect on policyholder behaviour, such as changing driving patterns, that resulted in lower auto loss frequency. But underneath those unusual trends, we are benefiting from a stronger foundation – the result of our long-term strategic plan to improve our ability to serve educators by enhancing our product offerings, strengthening our distribution and modernising our infrastructure, including the 2019 addition of our supplemental segment and annuity reinsurance transaction to mitigate interest rate risk.
“While 2020 results clearly illustrate the strength of our profitability initiatives, the impact of a largely remote educator workforce in a pre-vaccine environment is temporarily slowing our top-line growth. More importantly, we are well-positioned for post-vaccine growth due to the strategic work we completed in 2020, including full integration of supplemental agents to allow them to reach more educators with more solutions.”
Date published: 4 February 2021