Horace Mann Reports Added Weather Losses In 3Q

Oct. 25--Hurricanes Harvey and Irma added $7.5 million in catastrophic losses at Horace Mann Educators Corp. of Springfield for what is already expected to be a record year of weather-related claims for the insurance industry.

Company executives said despite twin hurricanes, losses were limited in the three-month period ended Sept. 30 by steps in recent years to reduce exposure in hurricane-prone areas. The total $8.6 million in losses for the period, including $1.1 million from four other events, was little changed from the same period of 2016. Operating income for the period increased nearly 19 percent.

Overall property-casualty net-income doubled from last year.

"The quarter's results show significant progress in our efforts to improve auto profitability," President and CEO Marita Zuraitis said in the report. "In addition, our retirement and life results were solid contributors to the quarter's earnings."

The latest quarter at Horace Mann brings total catastrophic claims to $58.2 million in 2017. Fitch Ratings late last month estimated industry losses could hit $100 billion in 2017 as a result of flooding, tornadoes, hail, an active hurricane season and, most recently, wildfires in California.

"2017 will definitely go down as one of the most costly years ever for the industry," said Ryan Greenier, vice president of investor relations for Horace Mann.

But he said trends in auto, life insurance and retirement operations were encouraging for the remainder of the year. The company's full-year earnings estimate of $1.45 to $1.65 a share was unchanged.

Highlights of three-month and nine-month periods compared with 2016.

* Total revenues: $289.8, down 0.5 percent; $868.5, up 2.6 percent.

* Net income: $26.5 million, down 1.5 percent; $44.1 million, down 31 percent.

* Operating income: $28.7 million, up 18.6 percent; $44.9 million, down 25.3 percent.

* Operating income per share: 69 cents, up 19 percent; $1.08, down 25.5 percent.

* Property-casualty net income: $13.4 million, up 100 percent; $2.2 million, down 86.3 percent.

* Retirement net income: $13.6 million, down 13.4 percent; $36.9 million, down 6.1 percent.

* Life net income: $4.8 million, up 4.3 percent; $14.3 million; up 9.2 percent.

The full report is available at investors.horacemann.com.

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