- Horace Mann Educators ( NYSE: HMN ) said Tuesday it expects Q4 property and casualty segment loss of $25M-$29M , after tax, including losses related to the winter storm in late December.
- That compares to property and casualty segment net income of $14.5M in Q4 2021 .
- CEO Marita Zuraitis said Winter Storm Elliott resulted in ~$8M pretax property losses. She noted that industry-wide, property and casualty loss trends are higher than expected.
- High inflation continues to impact new claims, because of which Horace Mann ( HMN ) will be adding ~$14M, pretax, to its property and casualty prior-year reserves and ~$5M to reserves for the first three quarters of 2022.
- "We are accelerating our already aggressive plan for rate increases in both auto and property, along with implementing additional non-rate underwriting actions, so we can remain on track to our longer-term profitability targets for this business," said Zuraitis.
- She said Q4 results will reflect top-line sales momentum that will help the company resume its trajectory to double-digit return on equity.
- SA Quant has cautioned investors that Horace Mann ( HMN ) is at high risk of performing badly .
For further details see:
Horace Mann Educators Q4 results hit by Winter Storm Elliott