By Chris Munro

Feb 6 - (The Insurer) - Horace Mann Educators Corporation’s P&C business swung to an underwriting gain of $31.8mn in Q4 2024 from the prior-year period’s loss of $1.6mn, as the Springfield, Illinois-based company reported results for the period that came in comfortably ahead of analysts’ consensus forecasts.

• Underwriting gain of $31.8mn compared with loss of $1.6mn in Q4 2023

• Adjusted core earnings per diluted share of $1.68 beats analysts’ consensus forecast

• P&C NPW up 11.2 percent YoY to $195.7mn

• Ex-cat and PYD combined ratio improves 10.9 points YoY to 87.1%

The company’s P&C business ended 2024’s fourth quarter with a combined ratio of 83.9 percent, a 17.0 point improvement from the prior-year period’s 100.9 percent.

That P&C operation’s ex-catastrophe loss combined ratio totalled 81.9 percent for Q4 2024, down 16.1 points year on year.

And the unit’s ex-cat and prior years reserve development combined ratio was 87.1 percent, an improvement of 10.9 points from Q4 2023.

The P&C segment faced $3.8mn of current accident year catastrophe losses in the three months to 31 December 2024, compared with $5.0mn in the prior-year period.

Favourable prior years reserve development totalled $10.3mn in 2024’s fourth quarter, compared with nil in Q4 2023.

Horace Mann closed out 2024’s fourth quarter with adjusted core earnings per diluted share of $1.68, a significant increase on the prior-year period’s $0.91, and well ahead of the $1.03 that was the consensus forecast of analysts, as compiled by S&P Global IQ.

P&C net premiums written increased 11.2 percent year on year to $195.7mn in Q4 2024.

Across the company, Horace Mann booked total revenues of $409.0mn in 2024’s fourth quarter, up 1.5 percent year on year.

That comprised net premiums and contract charges earned of $300.8mn, up 9.6 percent from 2023’s fourth quarter, and net investment income that increased 1.6 percent year on year to $118.9mn.

Other income increased 17.5 percent year on year to $6.7mn.

Those were slightly offset by net investment losses in Q4 2024 of $17.4mn, compared with a net investment gain of $5.7mn in the prior-year period.

Its adjusted core earnings reached $69.8mn in 2024’s fourth quarter, compared with $37.8mn in the prior-year period.

Net income fell by 3.3 percent year on year to $38.2mn.

“In 2024, we delivered strong earnings results by restoring property and casualty segment profitability while positioning the company for sustained, profitable household growth,” said Horace Mann’s president and CEO Marita Zuraitis.

“In 2025, by maintaining business profitability and executing on our growth plans, we expect core EPS in the range of $3.60 to $3.90 per share and a double-digit shareholder return on equity.

“Our results clearly illustrate Horace Mann’s ability to empower all educators to achieve lifelong financial success, while also helping employers attract and retain employees by providing more comprehensive benefits,” Zuraitis added.

“The diversification of our business reflects our strategy to deliver consistent and reliable value to shareholders with a solid balance sheet and a compelling dividend,” she said.