Horace Mann Reports Results for First Quarter
SPRINGFIELD, Ill., April 28 /PRNewswire-FirstCall/ -- Horace Mann Educators Corporation (NYSE: HMN) today reported net income of $22.6 million (55 cents per share) for the three months ended March 31, 2010, compared to net income of $13.4 million (33 cents per share) for the same period in 2009. Included in net income were net realized gains on securities of $4.9 million ($3.1 million after tax, or 7 cents per share) for the three months ended March 31, 2010. In the first quarter of 2009, net income included net realized investment losses of $0.8 million ($0.6 million after tax, or 2 cents per share). All per-share amounts are stated on a diluted basis.
"With the continuing stabilization of the financial markets in the first quarter, our net unrealized investment gain position continued to improve, with reported book value per share of $19.84 increasing 75 percent over the last twelve months," said Louis G. Lower, President and Chief Executive Officer. "And, as we begin another year, our underlying profit fundamentals remain strong. Net income before realized investment gains and losses was 48 cents per share for the first quarter compared to 35 cents a year ago, with the prior year quarter including a charge of approximately 8 cents per share related to our property and casualty claims office consolidation and marketing transition initiatives. Within the current quarter results, strong earnings from our annuity and life segments more than offset a decrease in property and casualty earnings," continued Lower. "Catastrophe losses were higher this year, as were sinkhole claims in Florida. The current accident year combined ratio excluding catastrophes was approximately 95 percent in the current quarter, which was about 1 percentage point higher than the prior year, primarily reflecting the loss ratio increase. Combined annuity and life segment net income increased significantly in the first quarter compared to prior year, primarily due to the positive impact of financial market performance, growth in investment income and a notable improvement in the interest margin."
"While the overall economy continues to present challenges, Horace Mann's financial stability, combined with our established position in the educator market, led to stable levels of true new auto sales and new sales of our proprietary annuity products in the quarter," said Lower. "Looking to the remainder of 2010, we expect improvement in new business levels as we build on the momentum we've established to transform our distribution system to a new, more powerful model."
Segment Earnings
The property and casualty segment recorded net income of $11.0 million for the quarter, a decrease of $1.4 million compared to the same period in 2009. Pretax catastrophe costs in the current quarter were $6.8 million compared to $4.5 million incurred in the first quarter of 2009. The first quarter 2010 property and casualty combined ratio was 96.4 percent, including 5.0 percentage points due to catastrophe costs, compared to 94.6 percent, including 3.3 percentage points due to catastrophe costs, in the prior year period. Favorable prior years' reserve development totaling $4.5 million was recorded in the first quarter, which represented 3.3 percentage points on the combined ratio, compared to $3.4 million, or 2.5 percentage points on the combined ratio, recorded in the first quarter of 2009. In the first quarter of 2009, property and casualty pretax income was reduced by $4.4 million due to charges related to the company's claims office consolidation and distribution initiatives.
Annuity segment net income was $7.3 million for the three months ended March 31, 2010, reflecting an increase of $6.1 million compared to the same period in 2009. In the current quarter, the positive financial market performance had a favorable impact on both the valuation of annuity deferred policy acquisition costs and the level of guaranteed minimum death benefit reserves, and favorably affected the level of charges and fees earned on variable contract deposits in the quarter compared to prior year. In addition, the interest margin earned on fixed annuity assets increased significantly compared to a year earlier, with net interest spreads reaching 1.90 percent for the current period, up 47 basis points compared to the first quarter of 2009. Total annuity net fund flows continued to be positive in the current period, as they were throughout 2008 and 2009, with total accumulated account values increasing 18 percent compared to a year earlier. Total cash value persistency of 94 percent increased about 1 percentage point compared to prior year.
Life segment net income of $4.6 million for the first quarter increased $1.2 million compared to the same period in 2009, primarily due to growth in investment income. An increase in mortality costs in the current period was offset by lower operating expenses. Life persistency remained in excess of 94 percent.
Segment Revenues
The company's total premiums written and contract deposits increased 8 percent compared to the three months ended March 31, 2009, primarily reflecting an increase in annuity deposit receipts.
Total property and casualty premiums written increased 2 percent for the current quarter, reflecting increases in average property and auto premiums per policy.
Annuity deposits received increased 23 percent compared to the three months ended March 31, 2009, comprised of a 45 percent increase in single deposit and rollover receipts and an 11 percent increase in scheduled, flexible premium annuity deposit receipts. Life segment insurance premiums and contract deposits decreased 1 percent compared to the prior year period.
Sales and Distribution
For the first quarter of 2010, total new auto sales units decreased 3 percent compared to the prior year, while true new auto sales were comparable to the first three months of 2009. Following growth of 50 percent in the first quarter of 2009, total annuity sales decreased 9 percent in the current quarter compared to prior year, largely driven by a decrease in sales of third-party vendor products. Total new life production decreased 14 percent compared to the prior year, also significantly impacted by a decline in sales of third-party vendor products.
At March 31, 2010, there were 305 Horace Mann Exclusive Agencies, an increase of 55 compared to December 31, 2009. The company's Exclusive Agent opportunity was launched on January 1, 2009. Of the 305 Exclusive Agencies at quarter-end, 182 were formed by previous Employee Agents and 123 were formed by new appointments. "We are encouraged by the continuing increases in the number of Exclusive Agencies. This growth, coupled with the positive impact that our new Agency Business Model is having on productivity and the recent enhancements made to our field sales management structure, bodes well for Horace Mann's future growth prospects," said Lower. In addition to the Exclusive Agencies, there were 379 Employee Agents at quarter-end. Combined, there were 684 Exclusive Agencies and Employee Agents at March 31, 2010, compared to 716 at December 31, 2009 and 675 at March 31, 2009. "While we did experience a decline in the total number of agencies and agents in the first quarter -- a seasonal pattern that is not unusual for us -- we expect increases over the remainder of the year to result in a net growth in our year-end agency force compared to prior year."
Investment Gains and Losses
In the first quarter of 2010, pretax net realized investment gains were $4.9 million, which included a $0.7 million credit-related impairment write-down and less than $0.1 million of realized impairment losses on securities that were disposed of during the quarter. The impairment amounts were more than offset by $5.6 million of realized gains on other security disposals.
Horace Mann's net unrealized investment gains on fixed maturity and equity securities of $101.7 million at March 31, 2010 continued to reflect improvement compared to the net unrealized gain of $36.1 million at December 31, 2009 and the net unrealized loss of $359.6 million recorded at March 31, 2009. "The widespread improvement in the credit markets has continued into 2010," said Lower. "And, the underlying quality of our investment portfolio clearly has been evidenced in our net income and book value results over the last 12 months."
Horace Mann -- the largest national multiline insurance company focusing on educators' financial needs -- provides auto and homeowners insurance, retirement annuities, life insurance and other financial solutions. Founded by Educators for Educators® in 1945, the company is headquartered in Springfield, Ill. For more information, visit www.horacemann.com.
Statements included in this news release that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. Horace Mann is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the company's Annual Report on Form 10-K for the year ended December 31, 2009 and the company's past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements.
HORACE MANN EDUCATORS CORPORATION |
|||||||||
Digest of Earnings and Highlights (Unaudited) |
|||||||||
(Dollars in Millions, Except Per Share Data) |
|||||||||
Three Months Ended |
|||||||||
March 31, |
|||||||||
2010 |
2009 |
% Change |
|||||||
DIGEST OF EARNINGS |
|||||||||
Net income |
$ 22.6 |
$ 13.4 |
68.7% |
||||||
Net income per share: |
|||||||||
Basic |
$ 0.58 |
$ 0.34 |
70.6% |
||||||
Diluted |
$ 0.55 |
$ 0.33 |
66.7% |
||||||
Weighted average number of shares |
|||||||||
and equivalent shares (in millions) |
|||||||||
Basic |
39.2 |
39.2 |
- |
||||||
Diluted |
40.9 |
40.4 |
1.2% |
||||||
HIGHLIGHTS |
|||||||||
Operations |
|||||||||
Insurance premiums written and contract deposits |
$ 238.7 |
$ 221.3 |
7.9% |
||||||
Return on equity (A) |
12.8% |
1.9% |
N.M. |
||||||
Property & Casualty GAAP combined ratio |
96.4% |
94.6% |
N.M. |
||||||
Effect of catastrophe costs on the Property & Casualty |
|||||||||
combined ratio |
5.0% |
3.3% |
N.M. |
||||||
Exclusive agencies (B) |
305 |
91 |
235.2% |
||||||
Employee agents (C) |
379 |
584 |
-35.1% |
||||||
Total |
684 |
675 |
1.3% |
||||||
Additional Per Share Information |
|||||||||
Dividends paid |
$ 0.08 |
$ 0.0525 |
52.4% |
||||||
Book value (D) |
$ 19.84 |
$ 11.35 |
74.8% |
||||||
Financial Position |
|||||||||
Total assets |
$ 6,597.2 |
$ 5,526.3 |
19.4% |
||||||
Short-term debt |
38.0 |
38.0 |
- |
||||||
Long-term debt |
199.6 |
199.6 |
- |
||||||
Total shareholders' equity |
778.2 |
444.7 |
75.0% |
||||||
N.M. - Not meaningful. |
||||||||||
(A) |
Based on trailing 12-month net income and average quarter-end shareholders' equity. |
|||||||||
(B) |
Local Horace Mann agencies created and owned by independent contractors who have signed Exclusive Agent agreements with the Company ("Exclusive Agents"). The agreement states that only the Company's products and limited additional third-party vendor products authorized by the Company will be marketed by the agency. An individual may sign multiple Exclusive Agent agreements resulting in creation of multiple Exclusive Agencies. |
|||||||||
(C) |
Agents who have employee status with the Company and by contract market only the Company's products and limited additional third-party vendor products authorized by the Company. |
|||||||||
(D) |
Book value per share excluding the fair value adjustment for investments was $18.29 at March 31, 2010 and $16.43 at March 31, 2009. Ending shares outstanding were 39,219,927 at March 31, 2010 and 39,169,009 at March 31, 2009. |
|||||||||
- 1 - |
||||||||||
HORACE MANN EDUCATORS CORPORATION |
||||||||
Statements of Operations and Supplemental GAAP Consolidated Data (Unaudited) |
||||||||
(Dollars in Millions) |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2010 |
2009 |
% Change |
||||||
STATEMENTS OF OPERATIONS |
||||||||
Insurance premiums and contract charges earned |
$ 166.4 |
$ 162.5 |
2.4% |
|||||
Net investment income |
65.9 |
57.9 |
13.8% |
|||||
Net realized investment gains (losses) |
4.9 |
(0.8) |
N.M. |
|||||
Other income |
1.5 |
2.9 |
-48.3% |
|||||
Total revenues |
238.7 |
222.5 |
7.3% |
|||||
Benefits, claims and settlement expenses |
112.9 |
107.8 |
4.7% |
|||||
Interest credited |
35.6 |
33.7 |
5.6% |
|||||
Policy acquisition expenses amortized |
20.1 |
23.0 |
-12.6% |
|||||
Operating expenses |
34.7 |
35.7 |
-2.8% |
|||||
Amortization of intangible assets |
- |
0.2 |
-100.0% |
|||||
Interest expense |
3.5 |
3.5 |
- |
|||||
Total benefits, losses and expenses |
206.8 |
203.9 |
1.4% |
|||||
Income before income taxes |
31.9 |
18.6 |
71.5% |
|||||
Income tax expense |
9.3 |
5.2 |
78.8% |
|||||
Net income |
$ 22.6 |
$ 13.4 |
68.7% |
|||||
ANALYSIS OF PREMIUMS WRITTEN |
||||||||
AND CONTRACT DEPOSITS __ |
||||||||
Property & Casualty |
||||||||
Automobile and property (voluntary) |
$ 129.9 |
$ 128.2 |
1.3% |
|||||
Involuntary and other property & casualty |
1.3 |
0.9 |
44.4% |
|||||
Total Property & Casualty |
131.2 |
129.1 |
1.6% |
|||||
Annuity deposits |
84.2 |
68.7 |
22.6% |
|||||
Life |
23.3 |
23.5 |
-0.9% |
|||||
Total |
$ 238.7 |
$ 221.3 |
7.9% |
|||||
ANALYSIS OF SEGMENT NET INCOME (LOSS) |
||||||||
Property & Casualty |
$ 11.0 |
$ 12.4 |
-11.3% |
|||||
Annuity |
7.3 |
1.2 |
N.M. |
|||||
Life |
4.6 |
3.4 |
35.3% |
|||||
Corporate and other (A) |
(0.3) |
(3.6) |
-91.7% |
|||||
Net income |
22.6 |
13.4 |
68.7% |
|||||
Catastrophe costs, after tax, included above (B) |
(4.4) |
(2.9) |
51.7% |
|||||
N.M. - Not meaningful. |
|||||
(A) |
The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. |
||||
The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. See detail for this segment on page 4. |
|||||
(B) |
Includes allocated loss adjustment expenses and catastrophe reinsurance reinstatement premiums. See also page 3. |
||||
- 2 - |
|||||
HORACE MANN EDUCATORS CORPORATION |
|||||||
Supplemental Business Segment Overview (Unaudited) |
|||||||
(Dollars in Millions) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2010 |
2009 |
% Change |
|||||
PROPERTY & CASUALTY |
|||||||
Premiums written |
$ 131.2 |
$ 129.1 |
1.6% |
||||
Premiums earned |
137.7 |
135.0 |
2.0% |
||||
Net investment income |
8.9 |
8.3 |
7.2% |
||||
Other income |
- |
1.4 |
-100.0% |
||||
Losses and loss adjustment expenses (LAE) |
98.4 |
93.6 |
5.1% |
||||
Operating expenses (includes policy |
|||||||
acquisition expenses amortized) |
34.3 |
34.2 |
0.3% |
||||
Income before tax |
13.9 |
16.9 |
-17.8% |
||||
Net income |
11.0 |
12.4 |
-11.3% |
||||
Net investment income, after tax |
7.6 |
7.0 |
8.6% |
||||
Catastrophe costs, after tax (A) |
4.4 |
2.9 |
51.7% |
||||
Catastrophe losses and LAE, before tax |
6.8 |
4.5 |
51.1% |
||||
Reinsurance reinstatement premiums, before tax |
- |
- |
- |
||||
Operating statistics: |
|||||||
Loss and loss adjustment expense ratio |
71.5% |
69.3% |
N.M. |
||||
Expense ratio |
24.9% |
25.3% |
N.M. |
||||
Combined ratio |
96.4% |
94.6% |
N.M. |
||||
Effect on the combined ratio of: |
|||||||
Catastrophe costs |
5.0% |
3.3% |
N.M. |
||||
Claims office consolidation costs (all in LAE) |
- |
2.3% |
N.M. |
||||
Automobile and property detail: |
|||||||
Premiums written (voluntary) (B) |
$ 129.9 |
$ 128.2 |
1.3% |
||||
Automobile |
93.3 |
92.9 |
0.4% |
||||
Property |
36.6 |
35.3 |
3.7% |
||||
Premiums earned (voluntary) (B) |
136.8 |
134.4 |
1.8% |
||||
Automobile |
92.6 |
91.7 |
1.0% |
||||
Property |
44.2 |
42.7 |
3.5% |
||||
Policies in force (voluntary) (in thousands) |
786 |
795 |
-1.1% |
||||
Automobile |
525 |
532 |
-1.3% |
||||
Property |
261 |
263 |
-0.8% |
||||
Policy renewal rate (voluntary) |
|||||||
Automobile (6 months) |
91.0% |
91.1% |
N.M. |
||||
Property (12 months) |
88.9% |
88.8% |
N.M. |
||||
Voluntary automobile operating statistics: |
|||||||
Loss and loss adjustment expense ratio |
70.3% |
70.6% |
N.M. |
||||
Expense ratio |
24.9% |
25.8% |
N.M. |
||||
Combined ratio |
95.2% |
96.4% |
N.M. |
||||
Effect on the combined ratio of: |
|||||||
Catastrophe costs |
0.1% |
0.5% |
N.M. |
||||
Claims office consolidation costs (all in LAE) |
- |
2.7% |
N.M. |
||||
Total property operating statistics: |
|||||||
Loss and loss adjustment expense ratio |
73.6% |
66.8% |
N.M. |
||||
Expense ratio |
25.2% |
24.2% |
N.M. |
||||
Combined ratio |
98.8% |
91.0% |
N.M. |
||||
Effect on the combined ratio of: |
|||||||
Catastrophe costs |
15.3% |
9.5% |
N.M. |
||||
Claims office consolidation costs (all in LAE) |
- |
1.5% |
N.M. |
||||
Prior years' reserves favorable (adverse) |
|||||||
development, pretax |
|||||||
Voluntary automobile |
$ 2.7 |
$ 2.5 |
8.0% |
||||
Total property |
1.8 |
0.4 |
N.M. |
||||
Other property and casualty |
- |
0.5 |
-100.0% |
||||
Total |
4.5 |
3.4 |
32.4% |
||||
N.M. - Not meaningful. |
||||||||
(A) |
Includes allocated loss adjustment expenses and catastrophe reinsurance reinstatement premiums. |
|||||||
(B) |
Amounts are net of additional ceded premiums to reinstate the Company's property and casualty catastrophe reinsurance coverage, if any, as quantified above. |
|||||||
- 3 - |
||||||||
HORACE MANN EDUCATORS CORPORATION |
||||||
Supplemental Business Segment Overview (Unaudited) |
||||||
(Dollars in Millions) |
||||||
Three Months Ended |
||||||
March 31, |
||||||
2010 |
2009 |
% Change |
||||
ANNUITY |
||||||
Contract deposits |
$ 84.2 |
$ 68.7 |
22.6% |
|||
Variable |
27.4 |
26.2 |
4.6% |
|||
Fixed |
56.8 |
42.5 |
33.6% |
|||
Contract charges earned |
4.3 |
3.2 |
34.4% |
|||
Net investment income |
40.4 |
34.8 |
16.1% |
|||
Net interest margin (without realized investment gains and losses) |
14.8 |
10.8 |
37.0% |
|||
Other income |
0.9 |
0.8 |
12.5% |
|||
Mortality loss and other reserve changes |
(0.3) |
(0.6) |
-50.0% |
|||
Operating expenses (includes policy |
||||||
acquisition expenses amortized) |
8.6 |
12.5 |
-31.2% |
|||
Income before tax |
11.1 |
1.7 |
N.M. |
|||
Net income |
7.3 |
1.2 |
N.M. |
|||
Pretax income increase (decrease) due to |
||||||
valuation of: |
||||||
Deferred policy acquisition costs |
$ 1.2 |
$ (3.0) |
N.M. |
|||
Guaranteed minimum death benefit reserve |
0.1 |
(0.5) |
N.M. |
|||
Annuity contracts in force (in thousands) |
178 |
175 |
1.7% |
|||
Accumulated value on deposit |
$ 3,811.7 |
$ 3,221.8 |
18.3% |
|||
Variable |
1,281.5 |
884.3 |
44.9% |
|||
Fixed |
2,530.2 |
2,337.5 |
8.2% |
|||
Annuity accumulated value retention - 12 months |
||||||
Variable accumulations |
93.7% |
93.1% |
N.M. |
|||
Fixed accumulations |
94.5% |
93.9% |
N.M. |
|||
LIFE |
||||||
Premiums and contract deposits |
$ 23.3 |
$ 23.5 |
-0.9% |
|||
Premiums and contract charges earned |
24.4 |
24.3 |
0.4% |
|||
Net investment income |
16.9 |
15.0 |
12.7% |
|||
Income before tax |
7.1 |
5.4 |
31.5% |
|||
Net income |
4.6 |
3.4 |
35.3% |
|||
Pretax income increase (decrease) due to |
||||||
valuation of: |
||||||
Deferred policy acquisition costs |
$ (0.1) |
$ (0.1) |
- |
|||
Life policies in force (in thousands) |
212 |
220 |
-3.6% |
|||
Life insurance in force |
$ 13,754 |
$ 13,651 |
0.8% |
|||
Lapse ratio - 12 months |
||||||
(Ordinary life insurance) |
5.2% |
5.5% |
N.M. |
|||
CORPORATE AND OTHER (A) |
||||||
Components of income (loss) before tax: |
||||||
Net realized investment gains (losses) |
$ 4.9 |
$ (0.8) |
N.M. |
|||
Interest expense |
(3.5) |
(3.5) |
- |
|||
Other operating expenses, net investment income and other income |
(1.6) |
(1.1) |
45.5% |
|||
Loss before tax |
(0.2) |
(5.4) |
-96.3% |
|||
Net loss |
(0.3) |
(3.6) |
-91.7% |
|||
N.M. - Not meaningful. |
||||||
(A) |
The Corporate and Other segment includes interest expense on debt and the impact of realized investment gains and losses and other corporate level items. |
|||||
The Company does not allocate the impact of corporate level transactions to the insurance segments consistent with how management evaluates the results of those segments. |
||||||
- 4 - |
||||||
HORACE MANN EDUCATORS CORPORATION |
|||||||
Supplemental Business Segment Overview (Unaudited) |
|||||||
(Dollars in Millions) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2010 |
2009 |
% Change |
|||||
INVESTMENTS |
|||||||
Annuity and Life |
|||||||
Fixed maturities, at fair value (amortized cost 2010, $3,559.0; 2009, $3,025.0) |
$ 3,638.0 |
$ 2,713.9 |
34.1% |
||||
Equity securities, at fair value (cost 2010, $31.5; 2009, $50.8) |
31.6 |
31.4 |
0.6% |
||||
Short-term investments |
149.0 |
300.7 |
-50.4% |
||||
Short-term investments, securities lending collateral |
- |
- |
- |
||||
Policy loans and other |
117.8 |
110.1 |
7.0% |
||||
Total Annuity and Life investments |
3,936.4 |
3,156.1 |
24.7% |
||||
Property & Casualty |
|||||||
Fixed maturities, at fair value (amortized cost 2010, $752.9; 2009, $681.6) |
773.0 |
658.5 |
17.4% |
||||
Equity securities, at fair value (cost 2010, $18.0; 2009, $21.9) |
20.5 |
15.9 |
28.9% |
||||
Short-term investments |
13.4 |
43.8 |
-69.4% |
||||
Short-term investments, securities lending collateral |
- |
- |
- |
||||
Total Property & Casualty investments |
806.9 |
718.2 |
12.4% |
||||
Corporate investments |
21.0 |
23.6 |
-11.0% |
||||
Total investments |
4,764.3 |
3,897.9 |
22.2% |
||||
Net investment income |
|||||||
Before tax |
$ 65.9 |
$ 57.9 |
13.8% |
||||
After tax |
44.7 |
39.1 |
14.3% |
||||
Net realized investment gains (losses) |
|||||||
by investment portfolio included in |
|||||||
Corporate and Other segment loss |
|||||||
Property & Casualty |
$ 2.4 |
$ (8.2) |
N.M. |
||||
Annuity |
1.8 |
4.1 |
-56.1% |
||||
Life |
0.7 |
3.3 |
-78.8% |
||||
Corporate and Other |
- |
- |
- |
||||
Total, before tax |
4.9 |
(0.8) |
N.M. |
||||
Total, after tax |
3.1 |
(0.6) |
N.M. |
||||
Per share, diluted |
$ 0.07 |
$ (0.02) |
N.M. |
||||
N.M. - Not meaningful. |
|||||||
- 5 - |
|||||||
HORACE MANN EDUCATORS CORPORATION |
|||||||||||||||
Supplemental Business Segment Overview (Unaudited) |
|||||||||||||||
(Dollars in Millions) |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||||
March 31, 2010 |
2009 |
2009 |
2009 |
2009 |
|||||||||||
Fair |
Net Unrealized |
Net Unrealized |
Net Unrealized |
Net Unrealized |
Net Unrealized |
||||||||||
Value |
Gain (Loss) |
Gain (Loss) |
Gain (Loss) |
Gain (Loss) |
Gain (Loss) |
||||||||||
FIXED MATURITY & EQUITY SECURITY INVESTMENTS |
|||||||||||||||
Fixed income securities |
|||||||||||||||
U.S. government and federally sponsored agency bonds |
$ 389.5 |
$ (10.0) |
$ (13.8) |
$ 2.0 |
$ (2.5) |
$ 3.4 |
|||||||||
Municipal bonds |
902.7 |
28.9 |
22.8 |
56.1 |
6.3 |
(3.7) |
|||||||||
Corporate bonds |
|||||||||||||||
Financial institutions |
289.6 |
14.1 |
8.1 |
6.9 |
(11.0) |
(35.3) |
|||||||||
Other |
1,414.0 |
88.7 |
73.0 |
84.6 |
(14.3) |
(140.1) |
|||||||||
High yield |
212.4 |
(1.8) |
(5.9) |
(11.8) |
(26.4) |
(28.0) |
|||||||||
Foreign government bonds |
49.1 |
2.8 |
2.0 |
3.0 |
0.7 |
(0.1) |
|||||||||
Mortgage-backed securities |
|||||||||||||||
Prime agency |
487.2 |
17.6 |
18.3 |
23.9 |
18.5 |
21.2 |
|||||||||
Prime other |
15.9 |
0.3 |
0.4 |
0.5 |
(0.8) |
(0.2) |
|||||||||
Sub-prime, Alt-A |
0.5 |
(0.1) |
(0.1) |
(0.4) |
(0.8) |
(0.9) |
|||||||||
Commercial mortgage-backed securities |
284.1 |
(51.5) |
(67.5) |
(71.7) |
(106.6) |
(115.8) |
|||||||||
Asset-backed securities |
|||||||||||||||
Sub-prime, Alt-A |
0.4 |
- |
- |
(0.5) |
(0.3) |
(0.1) |
|||||||||
Collateralized debt obligations, collateralized loan obligations |
31.0 |
(1.9) |
(4.1) |
(3.3) |
(4.0) |
(4.7) |
|||||||||
Other |
274.8 |
12.0 |
8.2 |
4.5 |
(4.8) |
(8.3) |
|||||||||
Preferred stocks |
|||||||||||||||
Financial institutions |
68.7 |
(1.3) |
(6.4) |
(9.5) |
(19.7) |
(34.2) |
|||||||||
Other |
41.4 |
2.8 |
0.3 |
(0.7) |
(6.1) |
(12.5) |
|||||||||
Total fixed income securities |
4,461.3 |
100.6 |
35.3 |
83.6 |
(171.8) |
(359.3) |
|||||||||
Common stocks |
1.8 |
1.1 |
0.8 |
0.5 |
0.5 |
(0.3) |
|||||||||
Derivatives |
- |
- |
- |
- |
- |
- |
|||||||||
Total fixed maturity and equity security investments |
$ 4,463.1 |
$ 101.7 |
$ 36.1 |
$ 84.1 |
$ (171.3) |
$ (359.6) |
|||||||||
- 6 - |
|||||||||||||||
SOURCE Horace Mann Educators Corporation
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article