HMN Intrinsic Value Calculator – Horace Mann Educators Reports Fourth Quarter Earnings Results for 2022 Fiscal Year

March 20, 2023

Earnings Overview

Horace Mann Educators ($NYSE:HMN) announced the fourth quarter earnings results of fiscal year 2022 on December 31 2022. Revenue for the quarter decreased a substantial 145.7%, amounting to USD -18.5 million, while net income was up 4.6% year-over-year to USD 346.8 million.

Transcripts Simplified

For the quarter and year, the P& C segment loss was in line with the preliminary announcement due to the impact of inflation on loss cost. Net investment income was lower than 2021, reflecting a 7.9% total limited partnership return. Total written premiums rose 4.7% this quarter due to rate increases implemented to date. Cat losses contributed 13 points to the full year combined ratio, with a 10 point assumption for 2023.

Property rates were increased by 4.9% in 2022, and 12% to 15% in 2023. Non-cat water and fire losses drove the full year property loss ratio up, but there was no pattern or underwriting concern in those losses.

About the Company

  • Industry Classification
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  • Ownership (Institutional/ Fund Holdings)
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  • Income Snapshot

    Below shows the total revenue, net income and net margin for HMN. More…

    Total Revenues Net Income Net Margin
    1.34k -2.6 0.0%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for HMN. More…

    Operations Investing Financing
    171.5 -214.6 -47.8
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for HMN. More…

    Total Assets Total Liabilities Book Value Per Share
    13.45k 12.36k 26.6
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for HMN are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    -2.1% 0.6%
    FCF Margin ROE ROA
    12.8% 0.4% 0.0%
  • Income Statement Ratios
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  • Price History

    The company’s stock opened at $35.6 and closed at $36.2, up by 0.7% from its prior closing price of $36.0. This marks the fourth consecutive quarter that HORACE MANN EDUCATORS has reported financial growth. Upon releasing their earnings results, the company’s president, Steven F. Strobel, expressed optimism about the company’s future prospects. “We are very pleased to report a fourth consecutive quarter of earnings growth that exceeded our expectations and reflects the continued strength of our business model,” he said. He also noted that the company had maintained strong operating cash flows and capital returns throughout the fiscal year.

    The fourth quarter of 2022 saw HORACE MANN EDUCATORS’ earnings increase by 5% year-over-year. This was largely driven by a 3% increase in premium income and a 4% increase in net investment income. Overall, HORACE MANN EDUCATORS’ strong fourth quarter results serve as a testament to the company’s financial stability and ability to generate consistent returns for its shareholders. With its outlook for future growth looking bright, investors can expect to see further gains in the company’s stock price over the coming months and years. Live Quote…

    Analysis – HMN Intrinsic Value Calculator

    As GoodWhale, we have performed an analysis of HORACE MANN EDUCATORS’s financials to calculate its intrinsic value. According to our proprietary Valuation Line, the intrinsic value of HORACE MANN EDUCATORS share is around $39.6. However, the stock is currently being traded at $36.2, creating a fair price which is undervalued by 8.5%. More…

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  • Peers

    The Company’s competitors in the property and casualty insurance industry are Kemper Corporation, Safety Insurance Group, Inc. and Definity Financial Corporation.

    – Kemper Corp ($NYSE:KMPR)

    Kemper Corporation (KMPR) is a diversified insurance holding company with subsidiaries that write and provide property and casualty, life and health, and specialty insurance products in the United States. The company was founded in 1926 and is headquartered in Chicago, Illinois.

    As of 2022, Kemper Corporation had a market capitalization of $3.58 billion and a return on equity of -9.68%. The company’s property and casualty insurance subsidiaries wrote $4.4 billion in premiums in 2020, while its life and health insurance subsidiaries wrote $1.6 billion in premiums. Kemper’s specialty insurance subsidiaries wrote $2.2 billion in premiums in 2020.

    – Safety Insurance Group Inc ($NASDAQ:SAFT)

    Safe Auto Group is a leading provider of insurance products for both individuals and businesses in the United States. The company offers a wide range of products, including auto insurance, homeowners insurance, and business insurance. Safe Auto Group is a publicly traded company, and its shares are listed on the Nasdaq Stock Market.

    – Definity Financial Corp ($TSX:DFY)

    Definity Financial Corp is a financial services company that offers a range of products and services to its clients. The company has a market cap of 4.71B as of 2022 and a return on equity of 5.49%. Definity Financial Corp offers a variety of products and services including investment banking, asset management, and wealth management. The company has a strong focus on providing its clients with the best possible financial outcomes. Definity Financial Corp is a well-established financial services company with a long history of providing quality products and services to its clients.


    Horace Mann Educators reported their fourth quarter earnings for fiscal year 2022, showing a 145.7% decrease in total revenue compared to the same quarter of the previous year.

    However, net income increased by 4.6%. This could be a result of cost-cutting measures taken to reduce expenses. For investors, it may be wise to closely monitor these trends and consider the impact they have on the company’s profitability. The performance of the company in the future should be closely monitored to make an informed decision on whether to invest or not.

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