Horace Mann Educators Corporation: Horace Mann Educators Corporation was founded in 1945 under the name Illinois Education Association Mutual Insurance Company.
Leslie Nimmo and Carrol Hall are the founders of Horace Mann Educators Corporation. The company originally dealt only in automotive insurance. Over the years it has evolved and now deals in multiple sectors of finance, insurance, and investments.
Horace Mann Educators Corporation Review 2019
Area of Operations – Horace Mann operates mainly in insurance. It provides its clients with automobile insurance, life insurance, casualty insurance, and property insurance. The company also has a stake in the finance industry where it underwrites loans and provides annuities.
Types of annuities – The Company markets fixed as well as variable annuities, mostly on a tax-qualified basis. Fixed annuities provide an assurance of principal and a guaranteed lowest rate of return. These contracts are supported by the Company’s general investments. They also have a fixed interest rate annuity contract for investors who want to avoid investment risk.
Life Insurance Segment – Horace Mann’s Life Segment gives term insurance and whole life insurance products. It offers a portfolio of Company produced and branded life insurance options, which understands the financial planning needs of teachers.
Quantum of Life Insurance Segment – As of December 31, 2016, Horace Mann’s term, whole life insurance, and group life insurance business consisted of more than 144,000 policies. As of December 31, 2016, the Company also had around 54,000 Experience Life insurance policies.
Property and Casualty Segment – This segment offers private automobile insurance. As of December 31, 2016, the Company had over 220,000 homeowners’ policies active. The Company insures mainly residential properties. They have programs in various states to provide high-risk automobile and homeowners’ cover, as well as other insurance covers, with third-party vendors underwriting and bearing the risk of insurance and Horace Mann receiving commissions on the sales. The Property and Casualty segment of Horace Mann consists of property and casualty reserves, and property and casualty reinsurance also.
Growth – The growth of Horace Mann has come to a halt in December 2018. They Reported a net loss of 20 million dollars, compared to the profit of 125 million dollars a year ago. This is mainly attributed to the ongoing acquisition if NTA. The situation is expected to change. Core earning at the end of 2019 is projected at 2.2 dollars per share.
International presence – Horace Mann Educators Corporation has a limited presence overseas. The management of the company has shown little interest in expanding overseas as the nature of business puts restrictions on overseas operations. The risk carried with expanding an insurance business internationally is very high and the management does not want to put to risk the money of its loyal investors.
Other services – Horace Mann Provides administrative services to school districts, Including Section 125 cafeteria plans allowing school employees to pay for unreimbursed medical and dependent care expenses with pre-tax dollars. They also conduct financial literacy workshops for educators throughout the country.
Horace Mann Educators Corporation is an old organization that has been functional in insurance for a long period of time. Over the Years the company expanded into multiple sectors of insurance, underwriting, and annuities. Horace Mann is one of the biggest domestic insurance players and has a clean track record. It has been working in spreading financial awareness among educators for a long time.