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Glossary of Selected Terms — Q3 2026 Earnings Summary

HMN
  • Other Key Points:
    • The document serves as a glossary defining non-GAAP financial measures and operating statistics used by management to evaluate performance, establish targets, and provide investor insight.
    • Non-GAAP measures exclude items such as net investment gains/losses, unrealized investment gains/losses on fixed maturity securities, net reserve remeasurements, goodwill and intangible asset impairments, intangible asset amortization, legacy commercial exposures, and other non-recurring or infrequent items.
    • "Adjusted book value per share" excludes after-tax net unrealized investment gains/losses on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates.
    • "Tangible book value per share" further excludes goodwill and other intangible assets from the adjusted book value calculation.
    • "Adjusted debt to total capitalization ratio" excludes net unrealized investment gains/losses, net reserve remeasurements, and restricted cash designated for debt repayment.
    • "Core earnings (loss)" excludes the after-tax impact of net investment gains/losses, legacy commercial exposures, intangible asset amortization, market risk benefits changes, discontinued operations, goodwill/intangible impairments, cumulative accounting principle changes, and significant non-recurring items.
    • "Catastrophe costs" include catastrophe losses net of reinsurance and before income tax benefits, including allocated loss adjustment expenses and reinsurance reinstatement premiums, but excluding unallocated loss adjustment expenses.
    • A "catastrophe" is defined as a severe loss event (natural or man-made) causing $25 million or more in insured property and casualty losses for the industry, affecting a significant number of insurers.
    • "Net premiums written and contract deposits" is a non-GAAP measure based on statutory accounting principles used to analyze business growth.
    • "Investment yield, excluding limited partnership interests" is an annualized pretax and after-tax measure calculated by excluding investment income from deposit assets on reinsurance, limited partnership interests (excluding commercial mortgage loan funds), and FHLB interest, divided by an adjusted average investment portfolio carrying amount.
    • "Net income return on equity" is calculated on both a trailing 12-month (LTM) basis using a 5-quarter average of shareholders' equity and an annualized basis using a 2-quarter average.
    • "Core return on equity" uses trailing 12-month core earnings or annualized core earnings divided by shareholders' equity excluding net unrealized investment gains/losses and net reserve remeasurements.
    • "Prior years' reserve development" measures the increase or decrease in net incurred claim and claim expense reserves for claims occurring in previous calendar years.
    • Property & Casualty operating statistics include Loss ratio, Underlying loss ratio (excluding catastrophes and reserve development), Expense ratio, Combined ratio, and Underlying combined ratio.
    • Supplemental & Group Benefits operating statistics include Benefits ratio, Operating expense ratio, and Pretax profit margin.
    • "Sales" data pertains to Horace Mann products, excludes authorized products sold by exclusive agents underwritten by third-party vendors, and serves as a leading indicator of future revenue trends and agency productivity.
    • Sales measurement methodologies vary by segment: Property & Casualty measures premiums to be collected over 12 months; Life & Retirement measures annualized sales based on expected yearly premiums plus 10% of single/indexed universal life excess premiums; Supplemental & Group Benefits measures based on submitted or estimated annualized premiums.
Company
HORACE MANN EDUCATORS CORP
Sector
Financial Services
Industry
Insurance - Property & Casualty