2023-04-20 16:32:53 ET
- Horace Mann Educators ( NYSE: HMN ) said Thursday it expects Q1 earnings well below expectations , as an unusually high number of weather events led to higher catastrophe losses.
- The company expects Q1 core EPS of $0.21-$0.23, lower than consensus estimate of $0.39.
- Q1 catastrophe losses are estimated to be $22M-$23M, pretax, contributing about 15 points to combined ratio, compared to $7.3M, or 4.8 points, in Q1 2022.
- Weather events during the quarter included two severe storms in the Midwest in late last month. There were 23 events designated as catastrophes by Property Claims Services in Q1, compared to 11 events in Q1 2022.
- Horace Mann ( HMN ) continues to expect FY catastrophe losses to represent ~10 points on combined ratio.
- "We continue to expect 2023 core EPS of $2-$2.30," said CEO Marita Zuraitis. "In 2024, we believe we will return to a double-digit return on equity as core EPS approaches $4, driven by profitable growth."
- Read why SA contributor Arpit Sathavara rates the stock Hold.
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Horace Mann Educators expects weak Q1 earnings on higher catastrophe losses