Educational financial services, life assurance and pensions company Horace Mann Educators Corporation has reported second-quarter 2020 net income of $730,000, down 67.4% compared to net income of $2.24 million reported for Q2 2019.
Revenue for the quarter was $314.9 million, down 30.7% from $454.1 million reported for the second quarter of 2019.
The Springfield, Illinois-based company also reported results for the first six months of 2020. Net income for the period was $1.17 million, down 61.1% compared to net income of $3 million reported for the first six months of 2019. Revenue for the period was $622.2 million, down by 19.2% from $770 million reported for the first six months of 2019.
Horace Mann president and chief executive Marita Zuraitis said: “The Covid-19 pandemic has changed how we live, work and learn. In this very different environment, Horace Mann is still guided by the same mission: To help educators achieve lifelong financial success. Given the immense challenges educators are facing during this time, we believe they deserve to have someone looking out for them now more than ever. I’m especially proud of the way our employees and agents have taken this commitment to heart during these challenging times.
“Despite these unusual times, Horace Mann continues to take care of our educator customers while remaining focused on the path to long-term growth in market share and achieving a double-digit return on equity. We continue to see the benefits of our comprehensive transformational strategic plan. For example, this quarter, our new supplemental segment added $9.5 million to core earnings. Our retirement segment continues to benefit from our annuity reinsurance transaction, which significantly mitigated interest rate risk.
“And through the second quarter, we continued measures to support educators, including auto premium credits to reflect driving levels that remained lower than normal. Further, and despite the additional challenges presented by the pandemic, our employees and agents moved quickly and compassionately to take care of customers in the South and Midwest affected by multiple tornadoes and severe storms that resulted in $34.7 million in catastrophe losses.
“As the effects of Covid-19 continue to ripple through the markets, work environments, and schools, we are seeing a short-term impact on new sales and, therefore, the time frame to achieve some longer-term objectives may be extended. But we know that, especially in challenging times, educators appreciate the value of protection and preparation, and we are uniquely well-positioned to help them protect what they have today and prepare for a successful tomorrow.
“Our full-year 2020 core EPS guidance range is now $2.80 to $3, with core ROE expected to be about 9%. The revised guidance takes into account the favourable results for the first half of the year. In addition, we are increasing our full-year catastrophe loss assumption and will record subrogation benefits in the third quarter as a result of PG&E’s successful emergence from bankruptcy. For 75 years, Horace Mann has been successful because we have stayed true to our mission of serving educators. Guided by this mission and supported by our strong financial position, we will continue to work toward our long-term objectives and focus on supporting our educator customers.”
Date published: 10 August 2020