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• USAA for educators.
• State Farm for teachers and school staff.

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• Auto Insurance: Provides coverage for vehicles, including liability, collision, comprehensive, and other related protections.
• Home & Renters Insurance: Offers protection for homes, personal property, and liability for homeowners and renters.
• Life Insurance: Provides financial protection to beneficiaries upon the policyholder's death, including term, whole, and universal life options.
• Annuities: Retirement savings products designed to provide a steady stream of income during retirement.
• Supplemental Insurance: Offers additional coverage for specific events like cancer, critical illness, or accidents, complementing major medical plans.
• Retirement & Financial Solutions: Provides retirement planning services and investment products, such as 403(b), 457(b) plans, and IRAs, tailored for educators.

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Major Customers of Horace Mann Educators (HMN)

Horace Mann Educators (HMN) primarily sells insurance and financial services products directly to individuals within a specific market segment. Therefore, the company's major customers are not other companies, but rather categories of individuals.

The company is uniquely focused on serving the K-12 public education community. Its major customer categories include:

• K-12 Public School Educators and Professionals: This is the core customer segment, encompassing active teachers, administrators (e.g., principals, superintendents), and other school employees (e.g., support staff, counselors) working in public primary and secondary schools.
• Retired Educators: Horace Mann also serves individuals who have retired from the K-12 public education system, providing ongoing financial and insurance solutions tailored to their post-employment needs.
• Family Members of Educators: The company often extends its services to the spouses and other immediate family members of eligible educators, recognizing the broader financial and protection needs of the education community.

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• BlackRock, Inc. (BLK)

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Marita Zuraitis, President and Chief Executive Officer

Marita Zuraitis joined Horace Mann as President and CEO-elect in May 2013 and assumed her current role in September 2013. Prior to Horace Mann, she served as President of the property and casualty insurance companies of The Hanover Insurance Group from 2004 to 2013, with responsibilities for both personal and commercial lines. Before joining The Hanover in 2004, she held senior management positions at The St. Paul/Travelers Companies, USF&G, and Aetna Life and Casualty. She has over 30 years of experience in the insurance industry.

Ryan E. Greenier, Executive Vice President and Chief Financial Officer

Ryan Greenier was appointed Executive Vice President and Chief Financial Officer of Horace Mann, effective October 1, 2024. He previously served as Deputy CFO starting in January 2023 and was appointed Chief Investment Officer in 2021. Greenier joined Horace Mann in 2012 as Vice President, Investor Relations, and was later named Vice President, Corporate Finance in 2018 and Senior Vice President in 2019. Before joining Horace Mann, he held positions in investments and investor relations at The Hartford from 2008 to 2012. He began his career in public accounting at Deloitte & Touche. He is a Certified Public Accountant.

Stephen McAnena, Chief Operating Officer

Stephen McAnena joined Horace Mann in May 2023 as Chief Operating Officer. In September 2024, he assumed responsibility for Horace Mann's Worksite division, consolidating all business operations under his leadership.

Donald M. Carley, Executive Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer

Donald M. Carley was appointed Executive Vice President in November 2019. He joined Horace Mann in January 2016 as General Counsel and assumed the additional responsibilities of Corporate Secretary and Chief Compliance Officer in May 2016. He was appointed Senior Vice President in November 2016. Prior to joining Horace Mann, Mr. Carley served as Associate General Counsel at State Farm Mutual Automobile Insurance Company since 2008. He also spent 10 years in private practice at Sonnenschein Nath & Rosenthal LLP (now Dentons).

Stephanie A. Fulks, Senior Vice President and Chief Information Officer

Stephanie A. Fulks was appointed Chief Information Officer in May 2021 and Senior Vice President in November 2019. She served as Chief Solutions Delivery Officer from June 2017 to November 2019. Ms. Fulks joined Horace Mann as Vice President in June 2014. Prior to joining the company, she was with American International Group from 1993 to 2014, where she most recently served as Vice President, Information Technology. She has over 30 years of experience in the insurance and financial services industry.

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The key risks to Horace Mann Educators (HMN) are:

1. Market Concentration in the Education Sector: Horace Mann Educators' business model is highly concentrated on serving the K-12 education market, making it vulnerable to changes and challenges within this specific sector. This dependence limits potential customer growth and exposes the company to economic conditions or policy changes that uniquely affect the education community. The company faces intense competition within this niche, impacting its ability to maintain growth rates if it struggles to expand within this market or if competition for educator customers increases.
2. Catastrophic Losses and Investment Risks: As an insurance provider, Horace Mann is inherently exposed to significant financial risks from catastrophic losses due to natural disasters such as weather events, fires, and floods, which can lead to increased claims and negatively impact profitability. Furthermore, the company's investment income, a critical component of its revenue, is susceptible to fluctuations caused by changes in interest rates, downturns in the overall market, and issues affecting the credit quality of its investments.
3. Regulatory Changes and Competitive Pressures: Horace Mann operates within the heavily regulated insurance and financial services industries, meaning changes in laws or regulations could significantly affect its operations, compliance costs, and business practices. The company also faces substantial competitive pressures from a wide array of specialized and diversified insurance providers, which can challenge its market share and profitability, especially if it cannot effectively manage expenses or pass on higher costs through premium increases.

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Horace Mann Educators (HMN) focuses on providing insurance and financial services to K-12 educators and public-school employees in the United States. The addressable markets for their main products and services in the U.S. are as follows:

Auto Insurance

The U.S. motor insurance market is valued at approximately USD 466.0 billion in 2025, with projections to reach USD 702.99 billion by 2030. Another estimate for the U.S. automobile insurance market size in 2025 is $352.9 billion.

Property Insurance

The U.S. property insurance market is anticipated to be valued at USD 234.0 billion in 2024 and is projected to reach USD 375.0 billion by 2035. Homeowners insurance, a significant component of property insurance, was valued at USD 88.0 billion in 2024.

Life Insurance

The U.S. life insurance market size is estimated to be around USD 1.0 trillion in 2025. Other reports indicate the U.S. life insurance market was approximately USD 1.93 trillion in 2024 and is projected to grow to about USD 4.74 trillion by 2034.

Retirement Annuities and Mutual Funds (403(b) and 457(b) Plans)

As of 2025, single-employer 403(b) plan assets in the U.S. totaled approximately USD 1,511.7 billion. For 457 plans (including 457(b) and 457(f)), the total assets were approximately USD 617.5 billion in 2025. K-12 schools represent 15% of the participants in 403(b) plans.

Supplemental Insurance

The U.S. supplemental health market was valued at USD 38.58 billion in 2024 and is projected to reach USD 66.45 billion by 2034. This market includes various supplemental health products, which may encompass critical illness, accident, and disability insurance offered by Horace Mann.

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Horace Mann Educators Corporation (HMN) is expected to drive future revenue growth over the next 2-3 years through several key initiatives:

1. Rate Increases and Premium Growth in Property & Casualty (P&C): The company has been actively implementing rate actions in its Auto and Property segments, leading to higher average written premiums. For example, in Q3 2024, net written premiums for the P&C segment increased by 13% year-over-year, primarily due to higher average written premiums, with Auto premiums specifically rising 9% due to rate actions. This trend continued into Q4 2024, with annual net written premiums increasing by 13.9%, and Q1 2025 saw an 8% increase in net written premiums, including recent approvals for rate increases in California for both auto and property. The company's strategic initiatives for Q3 2025 included mid-single-digit rate increases in auto and high single-digit rate increases for property.

2. Expansion and Penetration within the Educator Market: Horace Mann is focused on expanding its reach within its target market of educators. The company serves approximately 1 million households but has identified a significant opportunity in a total educator market of 14 million households, including 8 million in the K-12 sector alone. Management has stated a commitment to "empowering all educators to achieve lifelong financial success, while also helping employers attract and retain employees by providing more comprehensive benefits." This focus on a specific, large, underserved market provides a clear path for customer growth.

3. Launch and Growth of New Products and Services, particularly Individual Supplemental and Group Benefits: Product innovation and the growth of recently launched offerings, especially within the Individual Supplemental and Group Benefits segments, are contributing to revenue. Individual Supplemental sales were up 20% in Q3 2024, showing strong momentum. In Q3 2025, the company highlighted the launch of new cancer coverage and the expansion of partnerships as crucial for growth, with Group Benefits sales surging by 91% and Individual Supplemental by 41%.

4. Improved Net Investment Income: Growth in net investment income is another driver. In Q3 2024, income from the core fixed maturities portfolio, which comprises about 80% of total investments, was slightly up year-over-year, with new money yields exceeding the portfolio book yield. Furthermore, Q1 2025 saw a 10% increase in total net investment income, with income from the internally managed portfolio growing by 15%, driven by higher limited partnership returns and strong returns from the growing fixed income portfolio.

5. Sustained P&C Profitability Restoration and Strong Policyholder Retention: While not a direct revenue generator, the successful restoration of profitability in the Property & Casualty segment and strong policyholder retention rates provide a stable base and enable more aggressive growth strategies. The underlying loss ratio for P&C improved in Q3 2024, reflecting rate and non-rate actions, with policyholder retention remaining strong at 86.6% despite significant rate increases. This profitability restoration continued into Q4 2024 and Q1 2025. In Q3 2025, the P&C segment's combined ratio showed significant improvement to 87.8%, more than 10 percentage points better than the prior year.

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Share Repurchases

• A $50 million increase in the share buyback program was approved in May 2022.
• In the first two quarters of 2025, Horace Mann Educators repurchased $13.2 million in stock at an average price of around $40.54 per share.
• As of October 2025, approximately $57 million remained on the current share repurchase authorization.

Share Issuance

• Horace Mann Educators granted stock options in 2021, 2022, and 2023.

Outbound Investments

• The net change in long-term investments, which includes the purchase and sale of investments with maturities greater than one year, was -$185 million in 2024, -$77 million in 2023, -$81 million in 2022, and -$283 million in 2021.