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Horace Mann anticipates Q4 P&C segment loss up to $29m

25th January 2023 - Author: Kane Wells

Horace Mann Educators Corporation has announced that it expects Q4 2022 Property & Casualty segment loss between $25 million and $29 million following a “significant impact from late-in-quarter severe weather.”

horace-mann-logoThe firm’s President and CEO, Marita Zuraitis, commented, “Winter Storm Elliott, which spanned more than 30 states between December 21-25, resulted in approximately $8 million, pretax, in property losses.

“In addition, the widespread ice and extremely low temperatures in the later part of the quarter were a factor in auto losses.”

Zuraitis added that industry-wide, property and casualty loss trends are emerging that are higher than previous assumptions. Further, social and economic inflation continues to impact new claims, alongside those from earlier periods.

She continued, “As a result, we will also be adding approximately $14 million, pretax, to Property & Casualty prior-year reserves and approximately $5 million to reserves for the first three quarters of 2022.

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“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.”

Zuraitis noted that the external events that impacted results in 2022 do not detract from Horace Mann’s commitment to educators and to the achievement of our long-term financial objectives.

She said, “Horace Mann continues to leverage its leadership position in the education market. Fourth-quarter results will reflect the ongoing value of our business diversification, along with top-line sales momentum that supports our ability to resume our trajectory to a double-digit return on equity.”

Horace Mann plans to release its fourth-quarter and full-year 2022 results on Feb. 7, after the market closes.

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