Horace Mann Educators CEO Serving Jail Sentence After DUI Plea

Horace Mann Educators Corp. President and Chief Executive Officer Louis G. Lower is serving a 60-day jail sentence after pleading guilty to a misdemeanor charge of driving under the influence.

Lower, 65, entered the plea on Sept. 8 and later that day began serving his sentence at the Indian River County Jail in Florida, company spokesman Richard Madden said. Vero Beach, Fla., police arrested Lower on May 29 following a traffic accident.

Horace Mann, a publicly traded insurance holding company, named Chief Financial Officer Peter Heckman interim CEO and placed Lower on an unpaid leave of absence. The board will consider if "additional disciplinary actions are appropriate," Chairman Gabriel Shaheen said in a statement.

Lower will return to his CEO responsibilities because of his exemplary service, his acceptance of responsibility for his actions and the fact that this was his first offense, Shaheen said. Lower is scheduled to be released from jail on Oct. 26, according to the Indian River County Sheriff’s Office website.

"There are no excuses to offer other than a lapse of personal character for which I take full responsibility," Lower said in a written statement released by the company. Attempts to reach Lower’s attorney for additional comment weren’t immediately successful.

Horace Mann Educators markets and underwrites life insurance and tax-qualified retirement annuities, as well as private passenger automobile and homeowners insurance to educators and other employees of public schools and their families. Its principal insurance subsidiaries are Horace Mann Insurance Co., Teachers Insurance Co., Horace Mann Life Insurance Co., Horace Mann Property and Casualty Insurance Co. and Horace Mann Lloyds. Educators comprise approximately 80% of its book of business, according to BestLink, which provides online access to A.M. Best Co.’s Global Insurance & Banking Database.

On the afternoon of Sept. 14, shares of Horace Mann Educators (NYSE: HMN) were down 0.56% at $17.69.

Horace Mann Insurance Group currently has a Best's Financial Strength rating of A- (Excellent).

(By Diana Rosenberg, senior associate editor, BestWeek)