Horace Mann Posts Record 2025 Earnings, Eyes Steady Growth in 2026 Amid Strategic Investments
Springfield-based insurer Horace Mann Educators Corporation (NYSE: HMN) capped off a landmark year with record 2025 earnings, setting the stage for what management calls a "sustainable growth trajectory" into 2026. The results, detailed in the company's fourth-quarter earnings call, highlight a firm successfully navigating a competitive landscape by deepening its niche focus on educators.
CEO Marita Zuraitis announced record core earnings per share of $4.71 for the full year 2025, alongside a 12.4% return on equity. Total revenue climbed 7% year-over-year, with net premiums and deposits keeping pace. "These are the highest earnings in our company's history," Zuraitis stated, attributing the performance to broad-based momentum across all business segments.
However, CFO Ryan Greenier provided a normalized perspective, crucial for understanding the underlying business trend. He adjusted the record EPS for one-time benefits, including pre-tax catastrophe losses that were $62 million—significantly below historical averages—and favorable reserve developments. This brought the normalized 2025 core EPS to approximately $3.95, squarely within the company's initial guidance range. "This normalized figure is the right baseline for our 2026 outlook," Greenier emphasized.
That outlook appears robust. Management issued 2026 core EPS guidance of $4.20 to $4.50, representing nearly 10% growth over the normalized 2025 baseline. This aligns with the firm's long-term goal of a 10% compound annual growth rate. Key to this forecast is the company's ongoing transformation. Zuraitis highlighted a leap in unaided brand awareness to 35% in 2025 from below 10% the prior year, driven by marketing partnerships with names like Crayola. The company also ended the year serving close to 1.1 million educator households, a notable increase.
On the operational front, Greenier detailed efficiency gains yielding over $10 million in annualized savings, with more expected through 2028. A recent reinsurance renewal secured a larger catastrophe coverage tower of $240 million at a reduced cost. Shareholder returns remained a focus, with $21 million in share repurchases executed in 2025 and a new $50 million authorization in place.
Analyst & Investor Commentary:
"The normalized EPS figure is the real story here," said Michael Thorne, portfolio manager at Clearwater Capital. "It shows the 10% growth target for 2026 is based on operational execution, not just favorable weather. Their deepening penetration in the educator niche and expense discipline make this guidance credible."
"Another quarter of management patting themselves on the back while quietly adjusting away the 'record' numbers," countered Sarah Chen, independent financial analyst. "The so-called 'normalization' adds back strategic spending they chose to make. The guide for 2026 is barely above what they originally thought 2025 would be before the weather gift. Where's the explosive growth they promised?"
"The growth in educator households is a powerful leading indicator," noted David Reeves, a retired school superintendent and long-term shareholder. "As someone in their target market, the Horace Mann Club and their partnerships show they understand our community's specific financial needs beyond just selling policies."
Founded in 1945, Horace Mann specializes in insurance and financial solutions for educators in the United States.