# Horace Mann Educators (HMN) 10-Q SEC filing - Q2 FY2026 - Filed: Aug 7, 2026, 12:31 PM EDT - Fiscal quarter: Q2 FY2026 - Calendar quarter: Q2 2026 - Accession: 0000850141-26-000033 - OpenCapital page: https://www.opencapital.sh/filings/0000850141-26-000033 - Markdown URL: https://www.opencapital.sh/filings/0000850141-26-000033.md - Official SEC filing index: https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/0000850141-26-000033-index.htm ## Filing documents - [10-Q (hmn-20260630.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/hmn-20260630.htm) - [EX-31.1 (a63026ex311.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex311.htm) - [EX-31.2 (a63026ex312.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex312.htm) - [EX-32.1 (a63026ex321.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex321.htm) - [EX-32.2 (a63026ex322.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex322.htm) - [EX-99.1 (q22026ex991-glossaryofterms.htm)](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/q22026ex991-glossaryofterms.htm) --- ## 10-Q SEC source: [hmn-20260630.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/hmn-20260630.htm) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q  ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 1-10890 HORACE MANN EDUCATORS CORPORATION (Exact name of registrant as specified in its charter) Delaware 37-0911756 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1 Horace Mann Plaza, Springfield, Illinois      62715-0001 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: 217-789-2500 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.001 par value HMN New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.). Yes ☐ No ☑ As of July 31, 2026, the registrant had 40,501,054 common shares, $0.001 par value, outstanding. HORACE MANN EDUCATORS CORPORATION QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026 TABLE OF CONTENTS [PART I - FINANCIAL INFORMATION](#i515f81829c7245749f8a6da7ce395664_10) Page Item 1. [Consolidated Financial Statements](#i515f81829c7245749f8a6da7ce395664_13) [Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025](#i515f81829c7245749f8a6da7ce395664_16) [1](#i515f81829c7245749f8a6da7ce395664_16) [Consolidated Statements of Operations and Comprehensive Income (Loss) for the](#i515f81829c7245749f8a6da7ce395664_19) [Three and Six Months Ended June 30, 2026 and 2025 (Unaudited)](#i515f81829c7245749f8a6da7ce395664_19) [2](#i515f81829c7245749f8a6da7ce395664_19) [Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six](#i515f81829c7245749f8a6da7ce395664_22)      [Months Ended June 30, 2026 and 2025 (Unaudited)](#i515f81829c7245749f8a6da7ce395664_22) [3](#i515f81829c7245749f8a6da7ce395664_22) [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2026 and 2025 (Unaudited)](#i515f81829c7245749f8a6da7ce395664_25) [4](#i515f81829c7245749f8a6da7ce395664_25) [Notes to Consolidated Financial Statements (Unaudited)](#i515f81829c7245749f8a6da7ce395664_28) [Note 1 - Basis of Presentation and Significant Accounting Policies](#i515f81829c7245749f8a6da7ce395664_31) [5](#i515f81829c7245749f8a6da7ce395664_31) Note 2 - Investments [6](#i515f81829c7245749f8a6da7ce395664_34) [Note 3 - Fair Value of Financial Instruments](#i515f81829c7245749f8a6da7ce395664_37) [12](#i515f81829c7245749f8a6da7ce395664_37) [Note 4 - Short-Duration Insurance Contracts](#i515f81829c7245749f8a6da7ce395664_43) [19](#i515f81829c7245749f8a6da7ce395664_43) [Note 5 - Long-Duration Insurance Contracts](#i515f81829c7245749f8a6da7ce395664_46) [20](#i515f81829c7245749f8a6da7ce395664_46) [Note 6 - Reinsurance](#i515f81829c7245749f8a6da7ce395664_52) [33](#i515f81829c7245749f8a6da7ce395664_52) [Note 7 - Segment Information](#i515f81829c7245749f8a6da7ce395664_55) [34](#i515f81829c7245749f8a6da7ce395664_55) [Note 8 - Accumulated Other Comprehensive Income (Loss)](#i515f81829c7245749f8a6da7ce395664_61) [39](#i515f81829c7245749f8a6da7ce395664_61) [Note 9 - Supplemental Consolidated Cash and Cash Flow Information](#i515f81829c7245749f8a6da7ce395664_64) [40](#i515f81829c7245749f8a6da7ce395664_64) [Note 10 - Contingencies and Commitments](#i515f81829c7245749f8a6da7ce395664_67) [40](#i515f81829c7245749f8a6da7ce395664_67) [Note 11 - Subsequent Events](#i515f81829c7245749f8a6da7ce395664_1179) [40](#i515f81829c7245749f8a6da7ce395664_1179) Item 2. [Management’s Discussion and Analysis of Financial Condition](#i515f81829c7245749f8a6da7ce395664_70) [and Results of Operations](#i515f81829c7245749f8a6da7ce395664_70) [41](#i515f81829c7245749f8a6da7ce395664_70) Item 3. [Quantitative and Qualitative Disclosures About Market Risk](#i515f81829c7245749f8a6da7ce395664_115) [63](#i515f81829c7245749f8a6da7ce395664_115) Item 4. [Controls and Procedures](#i515f81829c7245749f8a6da7ce395664_118) [63](#i515f81829c7245749f8a6da7ce395664_118) [PART II - OTHER INFORMATION](#i515f81829c7245749f8a6da7ce395664_121) Item 1. [Legal Proceedings](#i515f81829c7245749f8a6da7ce395664_124) [64](#i515f81829c7245749f8a6da7ce395664_124) Item 1A. [Risk Factors](#i515f81829c7245749f8a6da7ce395664_127) [64](#i515f81829c7245749f8a6da7ce395664_127) Item 2. [Unregistered Sales of Equity Securities and Use of Proceeds](#i515f81829c7245749f8a6da7ce395664_130) [64](#i515f81829c7245749f8a6da7ce395664_130) Item 5. [Other Information](#i515f81829c7245749f8a6da7ce395664_133) [64](#i515f81829c7245749f8a6da7ce395664_133) Item 6. [Exhibits](#i515f81829c7245749f8a6da7ce395664_139) [65](#i515f81829c7245749f8a6da7ce395664_139) [SIGNATURES](#i515f81829c7245749f8a6da7ce395664_142) [66](#i515f81829c7245749f8a6da7ce395664_142) ### PART I: FINANCIAL INFORMATION ## Item 1. Consolidated Financial Statements ITEM 1. I Consolidated Financial Statements **HORACE MANN EDUCATORS CORPORATION** ### CONSOLIDATED BALANCE SHEETS _($ in millions, except share data)_ | Line item | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | | (Unaudited) | | | Assets | | | | Investments | | | | Fixed maturity securities, available for sale, at fair value(amortized cost, net 2026, $6,125.5; 2025, $6,026.7) | $5,767.0 | $5,714.6 | | Equity securities at fair value, (cost 2026, $56.2 and 2025, $56.2) | 40.3 | 41.9 | | Limited partnership interests (Carried Under Fair Value Option, 2026, $26.9 and 2025, $0.0) | 1,101.0 | 1,100.6 | | Policy loans | 136.3 | 138.1 | | Short-term investments | 184.8 | 210.4 | | Other investments | 116.7 | 99.0 | | Total investments | 7,346.1 | 7,304.6 | | Cash | 46.2 | 27.5 | | Deferred policy acquisition costs | 358.2 | 358.2 | | Reinsurance balances receivable | 409.2 | 419.0 | | Deposit asset on reinsurance | 2,345.4 | 2,369.6 | | Intangible assets | 134.4 | 141.5 | | Goodwill | 54.3 | 54.3 | | Other assets | 440.8 | 434.5 | | Separate Account variable annuity assets | 4,469.8 | 4,157.4 | | Total assets | $15,604.4 | $15,266.6 | | Liabilities and Shareholders' Equity | | | | Policy liabilities | | | | Future policy benefit reserves | $1,586.5 | $1,611.5 | | Policyholders' account balances | 5,041.8 | 5,064.1 | | Unpaid claims and claim expenses | 587.8 | 565.2 | | Unearned premiums | 369.1 | 372.1 | | Total policy liabilities | 7,585.2 | 7,612.9 | | Other policyholder funds | 1,076.0 | 1,046.2 | | Other liabilities | 376.3 | 374.0 | | Long-term debt | 594.2 | 593.4 | | Separate Account variable annuity liabilities | 4,469.8 | 4,157.4 | | Total liabilities | 14,101.5 | 13,783.9 | | Preferred stock, $0.001 par value, authorized1,000,000 shares; none issued | — | — | | Common stock, $0.001 par value, authorized 75,000,000 shares;issued, 2026, 67,580,562; 2025, 67,323,929 | 0.1 | 0.1 | | Additional paid-in capital | 544.0 | 538.8 | | Retained earnings | 1,704.7 | 1,651.7 | | Accumulated other comprehensive income (loss), net of tax: | | | | Net unrealized investment losses on fixed maturity securities | (281.9) | (245.5) | | Net reserve remeasurements attributable to discount rates | 110.0 | 93.4 | | Net funded status of benefit plans | (2.5) | (2.5) | | Treasury stock, at cost, 2026, 27,086,418 shares;2025, 26,664,472 shares | (571.5) | (553.3) | | Total shareholders’ equity | 1,502.9 | 1,482.7 | | Total liabilities and shareholders’ equity | $15,604.4 | $15,266.6 | The accompanying Notes are an integral part of these Consolidated Financial Statements. Horace Mann Educators Corporation 1 Second Quarter 2026 Form 10-Q **HORACE MANN EDUCATORS CORPORATION** ### CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) _($ in millions, except per share data)_ | Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Statements of Operations | | | | | | Revenues | | | | | | Net premiums and contract charges earned | $316.9 | $302.6 | $629.9 | $600.9 | | Net investment income | 120.5 | 110.8 | 231.2 | 226.7 | | Net investment losses | (0.1) | (5.9) | (2.3) | (9.2) | | Other income | 6.2 | 4.2 | 14.0 | 9.7 | | Total revenues | 443.5 | 411.7 | 872.8 | 828.1 | | Benefits, losses and expenses | | | | | | Benefits, claims and settlement expenses (Reserve remeasurement (gains)/losses, $0.5; $(2.4); $0.6; $(0.3)) | 186.3 | 183.5 | 362.7 | 366.7 | | Interest credited | 54.6 | 52.7 | 108.4 | 105.5 | | Operating expenses | 108.5 | 96.9 | 212.0 | 187.7 | | DAC amortization expense | 32.0 | 29.9 | 64.3 | 59.5 | | Intangible asset amortization expense | 3.5 | 3.6 | 7.1 | 7.2 | | Interest expense | 9.6 | 8.6 | 19.1 | 17.5 | | Total benefits, losses and expenses | 394.5 | 375.2 | 773.6 | 744.1 | | Income before income taxes | 49.0 | 36.5 | 99.2 | 84.0 | | Income tax expense | 7.4 | 7.1 | 16.4 | 16.4 | | Net income | $41.6 | $29.4 | $82.8 | $67.6 | | Net income per share | | | | | | Basic | $1.02 | $0.71 | $2.03 | $1.64 | | Diluted | $1.01 | $0.71 | $2.01 | $1.63 | | Weighted average number of shares and equivalent shares | | | | | | Basic | 40.9 | 41.3 | 40.9 | 41.3 | | Diluted | 41.2 | 41.6 | 41.2 | 41.6 | | Statements of Comprehensive Income (Loss) | | | | | | Net income | $41.6 | $29.4 | $82.8 | $67.6 | | Other comprehensive income (loss), net of tax: | | | | | | Change in net unrealized investment losses on fixed maturity securities | 6.9 | 4.6 | (36.4) | 47.5 | | Change in net reserve remeasurements attributable to discount rates | (6.1) | 0.7 | 16.6 | (11.1) | | Other comprehensive income | 0.8 | 5.3 | (19.8) | 36.4 | | Comprehensive income | $42.4 | $34.7 | $63.0 | $104.0 | The accompanying Notes are an integral part of these Consolidated Financial Statements. Horace Mann Educators Corporation 2 Second Quarter 2026 Form 10-Q **HORACE MANN EDUCATORS CORPORATION** ### CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) _($ in millions, except per share data)_ | Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Common stock, $0.001 par value | | | | | | Beginning balance | $0.1 | $0.1 | $0.1 | $0.1 | | Options exercised | — | — | — | — | | Conversion of common stock units | — | — | — | — | | Conversion of restricted stock units | — | — | — | — | | Ending balance | 0.1 | 0.1 | 0.1 | 0.1 | | Additional paid-in capital | | | | | | Beginning balance | 538.7 | 526.1 | 538.8 | 525.2 | | Options exercised and conversion of common and restricted stock units | 2.8 | 1.7 | 0.6 | 0.1 | | Share-based compensation expense | 2.5 | 2.6 | 4.6 | 5.1 | | Ending balance | 544.0 | 530.4 | 544.0 | 530.4 | | Retained earnings | | | | | | Beginning balance | 1,678.0 | 1,571.7 | 1,651.7 | 1,548.2 | | Net income | 41.6 | 29.4 | 82.8 | 67.6 | | Dividends, 2026, $0.36 per share; 2025, $0.35 per share | (14.9) | (14.6) | (29.8) | (29.3) | | Ending balance | 1,704.7 | 1,586.5 | 1,704.7 | 1,586.5 | | Accumulated other comprehensive income (loss), net of tax: | | | | | | Beginning balance | (175.2) | (222.4) | (154.6) | (253.5) | | Change in net unrealized investment losseson fixed maturity securities | 6.9 | 4.6 | (36.4) | 47.5 | | Change in net reserve remeasurements attributable to discount rates | (6.1) | 0.7 | 16.6 | (11.1) | | Change in net funded status of benefit plans | — | — | — | — | | Ending balance | (174.4) | (217.1) | (174.4) | (217.1) | | Treasury stock, at cost | | | | | | Beginning balance | (571.6) | (532.7) | (553.3) | (532.5) | | Treasury stock acquired - share repurchase authorization | 0.1 | (6.9) | (18.2) | (7.1) | | Ending balance | (571.5) | (539.6) | (571.5) | (539.6) | | Shareholders' equity at end of period | $1,502.9 | $1,360.3 | $1,502.9 | $1,360.3 | The accompanying Notes are an integral part of these Consolidated Financial Statements. Horace Mann Educators Corporation 3 Second Quarter 2026 Form 10-Q **HORACE MANN EDUCATORS CORPORATION** ### CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) _($ in millions)_ | Line item | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | | Cash flows - operating activities | | | | Net income | $82.8 | $67.6 | | Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | Net investment (gains) losses | 2.3 | 9.2 | | Depreciation and intangible asset amortization | 13.4 | 13.6 | | Share-based compensation expense | 4.6 | 5.2 | | Loss (gain) from equity method investments, net of dividends or distributions | 1.9 | (2.4) | | Changes in: | | | | Insurance liabilities | 73.6 | 75.9 | | Amounts due under reinsurance agreements | 9.8 | 21.1 | | Income tax liabilities | (17.3) | (8.1) | | Other operating assets and liabilities | 114.9 | 86.2 | | Contributions to defined benefit plan | — | (0.4) | | Other, net | (1.0) | 4.2 | | Net cash provided by operating activities | 285.0 | 272.1 | | Cash flows - investing activities | | | | Fixed maturity securities purchases | (641.5) | (446.5) | | Fixed maturity securities sales | 231.6 | 129.9 | | Fixed maturity securities maturities, paydowns, calls and redemptions | 317.1 | 314.3 | | Equity securities purchases | (6.9) | (1.3) | | Equity securities sales, calls and repayments | — | 6.3 | | Limited partnership interests purchases | (43.6) | (33.6) | | Limited partnership interests sales | 43.2 | 19.5 | | Change in short-term and other investments, net | 18.7 | (65.3) | | Other, net | (5.3) | 4.7 | | Net cash used in investing activities | (86.7) | (72.0) | | Cash flows - financing activities | | | | Dividends paid to shareholders | (29.1) | (28.6) | | Treasury stock acquired | (18.2) | (7.1) | | Proceeds from exercise of stock options | 3.7 | 1.4 | | Withholding tax payments on RSUs and options tendered | (4.0) | (2.1) | | Annuity contracts: variable, fixed and FHLB funding agreements: | | | | Deposits | 897.9 | 576.2 | | Benefits, withdrawals and net transfers to Separate Account variable annuity assets | (313.4) | (309.8) | | Repayment of FHLB funding agreements | (659.5) | (354.5) | | Life policy accounts deposits, withdrawals, and surrenders | 11.3 | 8.2 | | Change in deposit asset on reinsurance | (71.4) | (70.4) | | Net increase (decrease) in reverse repurchase agreements | — | (12.0) | | Change in book overdrafts | 3.1 | 1.4 | | Net cash used in financing activities | (179.6) | (197.3) | | Net increase in cash | 18.7 | 2.8 | | Cash at beginning of period | 27.5 | 38.1 | | Cash at end of period | $46.2 | $40.9 | The accompanying Notes are an integral part of these Consolidated Financial Statements. Horace Mann Educators Corporation 4 Second Quarter 2026 Form 10-Q HORACE MANN EDUCATORS CORPORATION ### NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) ### NOTE 1 - Basis of Presentation and Significant Accounting Policies #### Business Horace Mann Educators Corporation is a holding company for insurance subsidiaries that market and underwrite personal lines of property and casualty insurance products (primarily personal lines of auto and property insurance), life insurance products, retirement products (primarily tax-qualified fixed and variable annuities), individual supplemental insurance products (primarily accident, cancer, critical illness, hospital, and supplemental disability), and group benefit products (primarily group disability, group life, and group supplemental health coverages), primarily to K-12 teachers, administrators and other employees of public schools and their families (collectively, HMEC, the Company or Horace Mann). The Company conducts and manages its business in four reporting segments: (1) Property & Casualty, (2) Life & Retirement, (3) Supplemental & Group Benefits and (4) Corporate & Other. #### Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) and with the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and disclosures normally included in annual financial statements prepared in conformity with GAAP, but are not required for interim reporting purposes, have been omitted. These Consolidated Financial Statements and Notes thereto should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in Part II - Item 8 of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for the full year. The accompanying Consolidated Financial Statements and Notes thereto are unaudited and reflect all adjustments (generally consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods. The Company's significant accounting policies are summarized in Part II - Item 8, Note 1 of the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. In the quarter ended June 30, 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error related to private debt securities associated with the Company’s limited partnership investments. The $8.1 million after tax ($10.2 million pre-tax) adjustment decreases net income for the following segments: Life & Retirement $5.3 million; and Supplemental & Group Benefits, $2.8 million. The Company has reclassified the presentation of certain prior period information to conform to the current year's presentation. #### Consolidation All intercompany transactions and balances between HMEC and its subsidiaries and affiliates have been eliminated. #### Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The most significant critical accounting estimates include valuation of hard-to-value fixed maturity securities, evaluation of credit loss impairments for fixed maturity securities, valuation of future policy benefit reserves, and valuation of liabilities for property and casualty unpaid claims and claim expense reserves. Horace Mann Educators Corporation 5 Second Quarter 2026 Form 10-Q ### NOTE 1 - Basis of Presentation and Significant Accounting Policies (continued) #### Future Adoption of New Accounting Standards #### Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance will improve the disclosures regarding a public business entity’s expenses by requiring (1) disclosure of the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption, (2) inclusion of certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements, (3) disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and (4) disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in this guidance will be effective for the Company for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted. The guidance will have no net impact on the Company's consolidated financial position, results of operations, or cash flows. #### Internal-Use Software In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use-Software. This guidance requires capitalization of costs associated with software developed for internal use once management has authorized and committed to funding the software project and when it is probable the project will be completed and used to perform the function intended. The amendments in this guidance will be effective for the Company for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its financial statements and disclosures, but does not expect the standard will have a material impact on our financial statements. ### NOTE 2 - Investments #### Net Investment Income The components of net investment income for the following periods were as follows: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Fixed maturity securities | $75.2 | $59.4 | $146.4 | $131.0 | | Equity securities | 0.8 | 1.0 | 1.3 | 2.0 | | Limited partnership interests | 17.2 | 23.2 | 30.4 | 39.5 | | Short-term and other investments | 5.3 | 5.2 | 10.6 | 10.6 | | Investment expenses | (2.3) | (3.1) | (5.4) | (5.9) | | Net investment income - investment portfolio | 96.2 | 85.7 | 183.3 | 177.2 | | Investment income - deposit asset on reinsurance | 24.3 | 25.1 | 47.9 | 49.5 | | Total net investment income(1) | $120.5 | $110.8 | $231.2 | $226.7 | (1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2026 Form 10-Q. Horace Mann Educators Corporation 6 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) #### Net Investment Gains (Losses) Net investment gains (losses) for the following periods were as follows: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Fixed maturity securities | $(0.1) | $(4.1) | $0.4 | $(3.9) | | Equity securities | (0.3) | (0.7) | (1.6) | (2.0) | | Short-term investments and other | 0.3 | (1.1) | (1.1) | (3.3) | | Net investment gains (losses) | $(0.1) | $(5.9) | $(2.3) | $(9.2) | The Company may, from time to time, sell fixed maturity securities subsequent to the reporting date but prior to the issuance of the financial statements that were in an unrealized loss position at the reporting date. Such sales are generally driven by issuer-specific developments or other changes in facts and circumstances occurring after the reporting date that result in a reassessment of the Company’s investment strategy or risk profile for a particular security. The Company’s assessment of its intent and ability to hold fixed maturity securities is made as of the reporting date based on information available at that time. Accordingly, any subsequent sales do not contradict the Company’s conclusion at the reporting date that it neither intended to sell, nor more likely than not required to sell, those securities before recovery of their amortized cost basis. These subsequent developments are not considered conditions that existed as of the reporting date. #### Net Investment Gains (Losses) by Transaction Type The breakdown of net investment gains (losses) by transaction type for the following periods were as follows: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Credit loss impairments | — | $(0.9) | — | $(0.9) | | Intent-to-sell impairments | (0.1) | (2.2) | (0.1) | (2.2) | | Total impairments | (0.1) | (3.1) | (0.1) | (3.1) | | Sales and other, net | 4.2 | 2.0 | 6.2 | 4.1 | | Change in fair value - equity securities | (0.3) | (0.7) | (1.6) | (1.9) | | Change in fair value and gains (losses) realizedon settlements - derivatives | (3.9) | (4.1) | (6.8) | (8.3) | | Net investment gains (losses) | $(0.1) | $(5.9) | $(2.3) | $(9.2) | #### Allowance for Credit Loss Impairments on Fixed Maturity Securities The following table presents changes in the allowance for credit loss impairments on fixed maturity securities classified as available for sale for the category of other asset-backed securities (no other categories of fixed maturity securities have an allowance for credit loss impairments): | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Beginning balance | $2.1 | $0.9 | $2.1 | $0.9 | | Credit losses on fixed maturity securities for which credit losses were not previously reported | — | 3.1 | — | 3.1 | | Net increase (decrease) related to credit losses previously reported | — | (0.9) | — | (0.9) | | Reduction of credit allowances related to sales | — | — | — | — | | Write-offs | — | — | — | — | | Ending balance | $2.1 | $3.1 | $2.1 | $3.1 | Horace Mann Educators Corporation 7 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) #### Fixed Maturity Securities The Company's investment portfolio is comprised primarily of fixed maturity securities. Amortized cost, net, gross unrealized investment gains (losses) and fair values of all fixed maturity securities in the portfolio were as follows: | ($ in millions) / June 30, 2026 | Amortized Cost, net | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | | --- | --- | --- | --- | --- | | Fixed maturity securities | | | | | | U.S. Government and federallysponsored agency obligations: | | | | | | Mortgage-backed securities | $699.0 | $5.4 | $42.2 | $662.2 | | Other, including U.S. Treasury securities | 371.8 | — | 58.6 | 313.2 | | Municipal bonds | 1,222.4 | 23.9 | 82.8 | 1,163.5 | | Foreign government bonds | 8.6 | — | 0.7 | 7.9 | | Corporate bonds | 2,139.1 | 15.2 | 199.8 | 1,954.5 | | Other asset-backed securities | 1,684.6 | 7.5 | 26.4 | 1,665.7 | | Totals | $6,125.5 | $52.0 | $410.5 | $5,767.0 | | December 31, 2025 | | | | | | Fixed maturity securities | | | | | | U.S. Government and federallysponsored agency obligations: | | | | | | Mortgage-backed securities | $718.1 | $9.5 | $38.6 | $689.0 | | Other, including U.S. Treasury securities | 381.4 | 0.4 | 56.1 | 325.7 | | Municipal bonds | 1,235.3 | 24.6 | 82.7 | 1,177.2 | | Foreign government bonds | 10.6 | — | 0.6 | 10.0 | | Corporate bonds | 2,064.8 | 27.6 | 182.1 | 1,910.3 | | Other asset-backed securities | 1,616.5 | 12.0 | 26.1 | 1,602.4 | | Totals | $6,026.7 | $74.1 | $386.2 | $5,714.6 | Horace Mann Educators Corporation 8 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) The following table presents the fair value and gross unrealized losses for fixed maturity securities in an unrealized loss position as of June 30, 2026 and December 31, 2025, respectively. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of June 30, 2026 as due to factors other than a credit loss. As of June 30, 2026, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell the fixed maturity securities with unrealized losses before a recovery of the amortized cost basis. In reaching our conclusion that an allowance for credit is unnecessary, we considered the factors described in the evaluation of credit loss impairments for fixed maturity securities critical accounting estimate in our Annual Report on Form 10-K. In the current three months ended June 30, 2026, the performance of fixed maturity securities has been impacted by the change in interest rates, specifically interest rates being at relatively high levels compared to interest rates at the time of acquisition of the securities. In consideration of the factors, we expect to receive cash flows sufficient to recover the entire amortized cost basis of the securities in the following table. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | 12 Months or Less | | | | More than 12 Months | | | | Total | | | | | | Fair Value | | GrossUnrealizedLosses | | Fair Value | | GrossUnrealizedLosses | | Fair Value | | GrossUnrealizedLosses | | | June 30, 2026 | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | U.S. Government and federally sponsored agency obligations: | | | | | | | | | | | | | | Mortgage-backed securities | $ | $174.5 | $ | $2.3 | $ | $225.5 | $ | $39.9 | $ | $400.0 | $ | $42.2 | | Other | 38.7 | | 0.9 | | 273.3 | | 57.7 | | 312.0 | | 58.6 | | | Municipal bonds | 108.4 | | 2.0 | | 584.1 | | 80.8 | | 692.5 | | 82.8 | | | Foreign government bonds | — | | — | | 6.9 | | 0.7 | | 6.9 | | 0.7 | | | Corporate bonds | 600.1 | | 18.9 | | 887.3 | | 180.9 | | 1,487.4 | | 199.8 | | | Other asset-backed securities | 404.2 | | 3.3 | | 285.6 | | 23.1 | | 689.8 | | 26.4 | | | Total | $ | $1,325.9 | $ | $27.4 | $ | $2,262.7 | $ | $383.1 | $ | $3,588.6 | $ | $410.5 | | Number of positions with a gross unrealized loss | 759 | | | | 1,565 | | | | 2,324 | | | | | Fair value as a percentage of total fixed maturity securities at fair value | 23.0 | | | | 39.2 | | | | 62.2 | | | | | December 31, 2025 | | | | | | | | | | | | | | Fixed maturity securities | | | | | | | | | | | | | | U.S. Government and federally sponsored agency obligations: | | | | | | | | | | | | | | Mortgage-backed securities | $ | $69.7 | $ | $0.3 | $ | $247.9 | $ | $38.3 | $ | $317.6 | $ | $38.6 | | Other | 27.1 | | 0.4 | | 276.1 | | 55.7 | | 303.2 | | 56.1 | | | Municipal bonds | 126.0 | | 2.8 | | 596.4 | | 79.9 | | 722.4 | | 82.7 | | | Foreign government bonds | — | | — | | 9.0 | | 0.6 | | 9.0 | | 0.6 | | | Corporate bonds | 387.3 | | 10.5 | | 930.6 | | 171.6 | | 1,317.9 | | 182.1 | | | Other asset-backed securities | 239.5 | | 1.2 | | 369.8 | | 24.9 | | 609.3 | | 26.1 | | | Total | $ | $849.6 | $ | $15.2 | $ | $2,429.8 | $ | $371.0 | $ | $3,279.4 | $ | $386.2 | | Number of positions with a gross unrealized loss | 466 | | | | 1,649 | | | | 2,115 | | | | | Fair value as a percentage of total fixed maturity securities at fair value | 14.9 | | | | 42.5 | | | | 57.4 | | | | Horace Mann Educators Corporation 9 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) With regards to fixed maturity securities that had gross unrealized losses more than 12 months, the number of positions by their respective credit ratings were as follows: | Line item | Number of Positions / June 30, 2026 | Number of Positions / December 31, 2025 | | --- | --- | --- | | Credit Rating | | | | AAA | 131 | 140 | | AA | 823 | 860 | | A | 261 | 275 | | BBB | 300 | 317 | | Total investment grade | 1,515 | 1,592 | | BB | 19 | 24 | | B | 10 | 8 | | CCC or lower | 3 | 2 | | Total below investment grade | 32 | 34 | | Not rated | 18 | 23 | | Totals: | 1,565 | 1,649 | Fixed maturity securities with an investment grade rating represented 97.7% of the gross unrealized losses as of June 30, 2026. For the same reasons discussed above, we expect to receive cash flow sufficient to recover the entire amortized cost basis of the securities in the previous table. #### Maturities of Fixed Maturity Securities The following table presents the distribution of the Company’s fixed maturity securities portfolio by estimated expected maturity. Estimated expected maturities differ from contractual maturities, reflecting assumptions regarding borrowers' utilization of the right to call or prepay obligations with or without call or prepayment penalties. For structured securities, estimated expected maturities consider broker-dealer survey prepayment assumptions and are verified for consistency with the interest rate and economic environments. | ($ in millions) | June 30, 2026 / Amortized Cost, net | June 30, 2026 / Fair Value | June 30, 2026 / Percent of Total Fair Value | | --- | --- | --- | --- | | Estimated expected maturity: | | | | | Due in 1 year or less | $277.8 | $276.1 | 4.8% | | Due after 1 year through 5 years | 1,264.2 | 1,240.8 | 21.5% | | Due after 5 years through 10 years | 1,602.1 | 1,556.5 | 27.0% | | Due after 10 years through 20 years | 1,711.8 | 1,574.0 | 27.3% | | Due after 20 years | 1,269.6 | 1,119.6 | 19.4% | | Total | $6,125.5 | $5,767.0 | 100.0% | | Average option-adjusted duration, in years | 5.9 | | | Horace Mann Educators Corporation 10 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) #### Sales of Fixed Maturity and Equity Securities Proceeds received from sales of fixed maturity and equity securities, each determined using the specific identification method, and gross gains and gross losses realized as a result of those sales for each period were as follows: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Fixed maturity securities | | | | | | Proceeds received | $137.8 | $52.1 | $231.6 | $129.9 | | Gross gains realized | 2.4 | 0.5 | 3.9 | 1.7 | | Gross losses realized | (2.5) | (1.5) | (3.4) | (2.5) | | Equity securities | | | | | | Proceeds received | — | $6.3 | — | $6.3 | | Gross gains realized | — | — | — | — | | Gross losses realized | — | — | — | — | #### Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities The following table reconciles net unrealized investment gains (losses) on fixed maturity securities, net of tax, included in AOCI: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Net unrealized investment gains (losses) on fixed maturity securities, net of tax | | | | | | Beginning of period | $(288.8) | $(314.5) | $(245.5) | $(357.4) | | Change in net unrealized investment gains (losses) on fixed maturity securities | 6.8 | 1.4 | (36.1) | 44.4 | | Reclassification of net investment losses on fixed maturity securities to net income | 0.1 | 3.2 | (0.3) | 3.1 | | End of period | $(281.9) | $(309.9) | $(281.9) | $(309.9) | #### Limited Partnership Interests Investments in limited partnership interests are predominantly accounted for using the equity method of accounting (EMA) and include interests in commercial mortgage loan funds, real estate equity funds, private equity funds, infrastructure equity funds, infrastructure debt funds and other funds. In addition, we have one limited partnership investment accounted for at fair value using the fair value option (FVO). Principal factors influencing carrying amount appreciation or depreciation include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. The carrying amounts of limited partnership interests were as follows: | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Commercial mortgage loan funds | $573.9 | $590.7 | | Real estate equity funds | 107.5 | 127.5 | | Private equity funds | 150.0 | 118.3 | | Infrastructure debt funds | 74.4 | 73.9 | | Venture capital funds | 62.4 | 50.0 | | Infrastructure equity funds | 47.5 | 52.4 | | Other funds(1) | 85.3 | 87.8 | | Total | $1,101.0 | $1,100.6 | (1) Other funds consist primarily of limited partnership interests in corporate mezzanine and private credit funds. Horace Mann Educators Corporation 11 Second Quarter 2026 Form 10-Q ### NOTE 2 - Investments (continued) #### Offsetting of Assets and Liabilities The Company's derivatives are subject to enforceable master netting arrangements. Collateral support agreements associated with each master netting arrangement provides that the Company will receive or pledge financial collateral in the event minimum thresholds have been reached. The Company’s reverse repurchase agreements are also subject to enforceable master netting arrangements but there was no offsetting in their presentation in the Company’s Consolidated Balance Sheets. Information regarding the Company's derivatives is contained in Part II - Item 8, Note 4 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The following table presents instruments that were subject to a master netting arrangement for the Company. | ($ in millions) / June 30, 2026 | Gross Amounts | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amountsof Assets/Liabilities Presentedin the Consolidated Balance Sheets | Gross Amounts Not Offsetin the Consolidated Balance Sheets / Financial Instruments | Gross Amounts Not Offsetin the Consolidated Balance Sheets / Cash Collateral Received | Net Amount | | --- | --- | --- | --- | --- | --- | --- | | Asset derivatives: | | | | | | | | Free-standing derivatives | $24.4 | — | $24.4 | — | $24.2 | $0.2 | | December 31, 2025 | | | | | | | | Asset derivatives: | | | | | | | | Free-standing derivatives | $21.6 | — | $21.6 | — | $23.8 | $(2.2) | #### Reverse Repurchase Agreements Periodically, in connection with reverse repurchase agreements, the Company transfers primarily U.S. government, government agency and corporate securities and receives cash. For reverse repurchase agreements, the Company receives cash in an amount equal to at least 95% of the fair value of the securities transferred, and the agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The Company accounts for reverse repurchase agreements as secured borrowings. The securities transferred under reverse repurchase agreements are included in Fixed maturity securities with the obligation to repurchase those securities reported in Other liabilities on the Company's Consolidated Balance Sheets. The fair value of the securities transferred was $0.0 million as of June 30, 2026 and December 31, 2025. The obligation for securities sold under reverse repurchase agreements was a net amount of $0.0 million as of June 30, 2026 and December 31, 2025. #### Deposits As of June 30, 2026 and December 31, 2025, fixed maturity securities with a fair value of $24.8 million and $26.3 million were on deposit with governmental agencies as required by law in various states for which the insurance subsidiaries of HMEC conduct business. In addition, as of June 30, 2026 and December 31, 2025, fixed maturity securities with a fair value of $1,153.1 million and $1,107.1 million, respectively, were on deposit with the Federal Home Loan Bank of Chicago (FHLB) as collateral for amounts subject to funding agreements, advances and borrowings which were equal to $1,069.5 million as of June 30, 2026 and $1,039.5 million as of December 31, 2025. The deposited securities are reported as Fixed maturity securities on the Company’s Consolidated Balance Sheets. ### NOTE 3 - Fair Value of Financial Instruments The Company is required to disclose estimated fair values for certain financial and nonfinancial assets and liabilities. Fair values for the Company’s insurance contracts other than annuity contracts (which are investment contracts) and equity method limited partnership interests are not required to be disclosed in fair value hierarchy. The estimated fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk through the matching of investment maturities with amounts due under insurance contracts. Information regarding the three-level fair value hierarchy presented below and the valuation methodologies utilized by the Company to estimate fair values at each reporting date is included in Part II - Item 8, Note 3 of the Horace Mann Educators Corporation 12 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. #### Financial Instruments Measured and Carried at Fair Value on a Recurring Basis The following table presents the Company's fair value hierarchy for financial assets and financial liabilities measured and carried at fair value on a recurring basis. During the six months ended June 30, 2026 and 2025, there were no transfers between Level 1 and Level 2. As of June 30, 2026, Level 3 invested assets comprised 7.4% of the Company’s total investment portfolio at fair value. | ($ in millions) / June 30, 2026 | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using / Level 1 | Fair Value Measurements at Reporting Date Using / Level 2 | Fair Value Measurements at Reporting Date Using / Level 3 | | --- | --- | --- | --- | --- | --- | | Financial Assets(1) | | | | | | | Investments | | | | | | | Fixed maturity securities | | | | | | | U.S. Government and federally sponsored agency obligations: | | | | | | | Mortgage-backed securities | $662.2 | $662.2 | — | $662.2 | — | | Other, including U.S. Treasury securities | 313.2 | 313.2 | 38.3 | 274.8 | — | | Municipal bonds | 1,163.5 | 1,163.5 | — | 1,079.1 | 84.4 | | Foreign government bonds | 7.9 | 7.9 | — | 7.9 | — | | Corporate bonds | 1,954.5 | 1,954.5 | 0.5 | 1,632.1 | 321.9 | | Other asset-backed securities | 1,665.7 | 1,665.7 | — | 1,631.4 | 34.3 | | Total fixed maturity securities | 5,767.0 | 5,767.0 | 38.8 | 5,287.5 | 440.6 | | Equity securities | 40.3 | 40.3 | 1.3 | 35.5 | 3.6 | | Short-term investments | 184.8 | 184.8 | 184.8 | — | — | | Other investments | 24.4 | 24.4 | — | 24.4 | — | | Totals | $6,016.5 | $6,016.5 | $224.9 | $5,347.4 | $444.2 | | Separate Account variable annuity assets(2) | $4,469.8 | $4,469.8 | $4,469.8 | — | — | | Financial Liabilities(3) | $79.9 | $79.9 | — | $7.6 | $72.3 | | December 31, 2025 | | | | | | | Financial Assets | | | | | | | Investments | | | | | | | Fixed maturity securities | | | | | | | U.S. Government and federally sponsored agency obligations: | | | | | | | Mortgage-backed securities | $689.0 | $689.0 | — | $689.0 | — | | Other, including U.S. Treasury securities | 325.8 | 325.8 | 40.8 | 285.0 | — | | Municipal bonds | 1,177.1 | 1,177.1 | — | 1,098.7 | 78.4 | | Foreign government bonds | 10.0 | 10.0 | — | 10.0 | — | | Corporate bonds | 1,910.3 | 1,910.3 | 4.9 | 1,562.8 | 342.6 | | Other asset-backed securities | 1,602.4 | 1,602.4 | — | 1,558.1 | 44.3 | | Total fixed maturity securities | 5,714.6 | 5,714.6 | 45.7 | 5,203.6 | 465.3 | | Equity securities | 41.9 | 41.9 | 1.3 | 36.8 | 3.8 | | Short-term investments | 210.5 | 210.5 | 210.5 | — | — | | Other investments | 21.6 | 21.6 | — | 21.6 | — | | Totals | $5,988.6 | $5,988.6 | $257.5 | $5,262.0 | $469.1 | | Separate Account (variable annuity) assets(2) | $4,157.4 | $4,157.4 | $4,157.4 | — | — | | Financial Liabilities(3) | $78.9 | $78.9 | — | $5.8 | $73.1 | (1) Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of June 30, 2026, the fair value of such investments was $26.9 million. (2) Separate Account variable annuity assets represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. Separate Account variable annuity liabilities are equal to the estimated fair value of the Separate Account variable annuity assets. (3) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. Horace Mann Educators Corporation 13 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) #### Changes in Level 3 Fair Value Measurements The reconciliation for all financial assets and financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows: | ($ in millions) | Financial Assets / Municipal Bonds | Financial Assets / Corporate Bonds | Financial Assets / Mortgage-Backedand Other Asset-Backed Securities(2) | Financial Assets / Total Fixed Maturity Securities | Financial Assets / Equity Securities | Financial Liabilities(1) | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance, April 1, 2026 | $85.2 | $336.6 | $41.7 | $463.5 | $3.6 | $$72.0 | | Transfers into Level 3(3) | — | — | — | — | — | — | | Transfers out of Level 3(3) | — | — | — | — | — | — | | Total gains or losses | | | | | | | | Net investment gains (losses) included in net income | — | — | — | — | — | — | | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | 3.7 | | Net unrealized gains (losses) included in OCI | (0.4) | (3.3) | (3.3) | (7.0) | | (0.3) | | Purchases | — | 13.9 | — | 13.9 | — | — | | Issuances | — | — | — | — | — | 0.8 | | Sales | — | (11.6) | — | (11.6) | — | — | | Settlements | — | — | — | — | — | — | | Paydowns, maturities and distributions | (0.4) | (13.7) | (4.1) | (18.2) | — | (3.9) | | Ending balance, June 30, 2026 | $84.4 | $321.9 | $34.3 | $440.6 | $3.6 | $$72.3 | | Beginning balance, January 1, 2026 | $78.4 | $342.6 | $44.3 | $465.3 | $3.8 | $$73.1 | | Transfers into Level 3(3) | — | — | — | — | — | — | | Transfers out of Level 3(3) | — | — | — | — | — | — | | Total gains or losses | | | | | | | | Net investment gains (losses) included in net income | — | — | 0.4 | 0.4 | (0.2) | — | | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | 4.9 | | Net unrealized gains (losses) included in OCI | (0.5) | (5.4) | (1.8) | (7.7) | — | (0.2) | | Purchases | 9.0 | 24.1 | — | 33.1 | — | — | | Issuances | — | — | — | — | — | 1.5 | | Sales | — | (21.5) | (0.7) | (22.2) | — | — | | Settlements | — | — | — | — | — | — | | Paydowns, maturities and distributions | (2.5) | (17.9) | (7.9) | (28.3) | — | (7.0) | | Ending balance, June 30, 2026 | $84.4 | $321.9 | $34.3 | $440.6 | $3.6 | $$72.3 | (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2026 were related to changes in the primary pricing source or changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. Horace Mann Educators Corporation 14 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) | ($ in millions) | Financial Assets / Municipal Bonds | Financial Assets / Corporate Bonds | Financial Assets / Mortgage-Backedand Other Asset-Backed Securities(2) | Financial Assets / Total Fixed Maturity Securities | Financial Assets / Equity Securities & Limited Partnership Interests | Financial Liabilities(1) | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance, April 1, 2025 | $76.1 | $340.9 | $67.1 | $484.1 | $38.9 | $$74.3 | | Transfers into Level 3(3) | — | — | — | — | — | — | | Transfers out of Level 3(3) | — | — | — | — | — | — | | Total gains or losses | | | | | | | | Net investment gains (losses) included in net income | — | — | — | — | (0.9) | — | | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | 3.7 | | Net unrealized gains (losses) included in OCI | 0.1 | 2.4 | 0.3 | 2.8 | — | (0.4) | | Purchases | — | 8.9 | — | 8.9 | — | — | | Issuances | — | — | — | — | — | 0.7 | | Sales | — | (3.0) | (1.7) | (4.7) | — | — | | Settlements | — | — | — | — | — | — | | Paydowns, maturities and distributions | (0.3) | (7.3) | (2.5) | (10.1) | — | (4.3) | | Ending balance, June 30, 2025 | $75.9 | $342.0 | $63.2 | $481.0 | $38.0 | $$74.0 | | Beginning balance, January 1, 2025 | $74.9 | $351.3 | $73.7 | $499.9 | $33.1 | $$75.5 | | Transfers into Level 3(3) | — | — | — | — | — | — | | Transfers out of Level 3(3) | — | — | — | — | — | — | | Total gains or losses | | | | | | | | Net investment gains (losses) included in net income | — | — | — | — | 4.9 | — | | Net investment (gains) losses included in net income related to financial liabilities | — | — | — | — | — | 5.6 | | Net unrealized gains/losses included in OCI | 1.5 | 1.8 | (0.2) | 3.0 | — | (0.2) | | Purchases | — | 22.3 | — | 22.3 | — | — | | Issuances | — | — | — | — | — | 2.1 | | Sales | — | (25.3) | (1.8) | (27.1) | — | — | | Settlements | — | — | — | — | — | — | | Paydowns, maturities and distributions | (0.5) | (8.1) | (8.5) | (17.1) | — | (9.0) | | Ending balance, June 30, 2025 | $75.9 | $342.0 | $63.2 | $481.0 | $38.0 | $$74.0 | (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. (2) Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other asset-backed securities. (3) Transfers into and out of Level 3 during the three and six months ended June 30, 2025 were related to changes in the primary pricing source or changes in observability of external information used in determining fair value. The Company's policy is to recognize transfers into and out of the levels as having occurred at the end of the reporting period in which the transfers were determined. For the three and six months ended June 30, 2026, the Company had net gains of $0.0 million and $0.2 million with respect to Level 3 financial assets. For the three and six months ended June 30, 2025, the Company had net losses of $0.9 million and net gains of $4.9 million with respect to Level 3 financial assets. For the three and six months ended June 30, 2026, the Company had net losses of $3.7 million and $4.9 million, respectively, that were included in net income that were attributable to changes in the fair value of Level 3 financial liabilities. For the three and six months ended June 30, 2025, the Company had net losses of $3.7 million and $5.6 million, respectively, that were included in net income and attributable to changes in the fair value of Level 3 financial liabilities. Horace Mann Educators Corporation 15 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) #### Level 3 Assets and Liabilities by Price Source The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources: _($ in millions)_ | June 30, 2026 / Financial Assets / Fixed maturity securities / U.S. Government and federally sponsored agency obligations: / Mortgage-backed securities | Total / $ | Total / — | Internal / $ | Internal / — | External / $ | External / — | | --- | --- | --- | --- | --- | --- | --- | | Municipal bonds | 84.4 | | — | | 84.4 | | | Corporate bonds | 321.9 | | 193.7 | | 128.2 | | | Other asset-backed securities | 34.3 | | — | | 34.3 | | | Total fixed maturity securities | 440.6 | | 193.7 | | 246.9 | | | Equity securities | 3.6 | | 2.6 | | 1.0 | | | Totals | 444.2 | | 196.3 | | 247.9 | | | Financial Liabilities(1) | 72.3 | | 72.3 | | — | | | December 31, 2025 | | | | | | | | Financial Assets | | | | | | | | Fixed maturity securities | | | | | | | | U.S. Government and federally sponsored agency obligations: | | | | | | | | Mortgage-backed securities | — | | — | | — | | | Municipal bonds | 78.4 | | — | | 78.4 | | | Corporate bonds | 342.6 | | 6.7 | | 335.9 | | | Other asset-backed securities | 44.3 | | — | | 44.3 | | | Total fixed maturity securities | 465.3 | | 6.7 | | 458.6 | | | Equity securities | 3.8 | | 2.6 | | 1.2 | | | Totals | 469.1 | | 9.3 | | 459.8 | | | Financial Liabilities(1) | $ | $73.1 | $ | $73.1 | $ | — | (1) Represents embedded derivatives related to fixed indexed annuity and indexed universal life products reported in Future policy benefit reserves and Other policyholder funds as well as net MRBs reported in Policyholders' account balances in the Company's Consolidated Balance Sheets. External pricing sources for securities represent prices from prior transactions or unadjusted third-party pricing information where pricing inputs are not readily available. For annual reporting periods, certain Level 3 securities are valued with assistance from an independent third-party valuation specialist. During interim reporting periods, the Company updates those valuations using internally developed estimates that are based on the same valuation methodologies and significant assumptions applied by the independent valuation specialist, adjusted as appropriate for current market conditions and security-specific information. Horace Mann Educators Corporation 16 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) #### Quantitative Information about Level 3 Fair Value Measurements The following table provides quantitative information about the significant unobservable inputs for recurring fair value measurements categorized with Level 3. | ($ in millions) | ($ in millions) / Fair Value at June 30, 2026 | ($ in millions) / Valuation Technique(s) | ($ in millions) / Unobservable Inputs | ($ in millions) / Range (Weighted Average)and Single Point Best Estimate(1) | Impact of Increase in Input on Fair Value | | --- | --- | --- | --- | --- | --- | | Financial Assets | | | | | | | Corporate bonds | $193.7 | discounted cash flow | yield | 3.5% - 10.3% | decrease | | | | discounted cash flow | option adjusted spread | 0 bps - 1086 bps | decrease | | Financial Liabilities | | | | | | | Derivatives embedded in fixed indexed annuity products | $83.4 | discounted cash flow | lapse rate | 7.5% | decrease | | | | | mortality multiplier(2) | 71.0% | decrease | | | | | option budget | 0.9% - 3.9% | increase | | | | | non-performance adjustment(3) | 5.0% | decrease | | Net MRBs | $(11.1) | discounted cash flow | lapse rate | 7.5% | decrease | | | | | mortality multiplier(2) | 71.0% | increase | (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. | ($ in millions) | ($ in millions) / Fair Value at December 31, 2025 | ($ in millions) / Valuation Techniques | ($ in millions) / Unobservable Inputs | ($ in millions) / Range (Weighted Average)and Single Point Best Estimate(1) | Impact of Increase in Input on Fair Value | | --- | --- | --- | --- | --- | --- | | Financial Liabilities | | | | | | | Derivatives embedded in fixed indexed annuity products | $82.1 | discounted cash flow | lapse rate | 7.5% | decrease | | | | | mortality multiplier(2) | 71.0% | decrease | | | | | option budget | 0.9% - 3.9% | increase | | | | | non-performance adjustment(3) | 5.0% | decrease | | Net MRBs | $(9.0) | discounted cash flow | lapse rate | 7.5% | decrease | | | | | mortality multiplier(2) | 71.0% | increase | (1) When a range of unobservable inputs is not readily available, the Company uses a single point best estimate. (2) Mortality multiplier is applied to the Annuity 2000 table. (3) Determined as a percentage of the risk-free rate. The valuation techniques and significant unobservable inputs used in the fair value measurement for financial assets and financial liabilities classified as Level 3 are subject to the processes as described in Part II - Item 8, Note 3 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Generally, valuation techniques for corporate bonds include using discounted cash flow techniques where the unobservable input is the yield. Horace Mann Educators Corporation 17 Second Quarter 2026 Form 10-Q ### NOTE 3 - Fair Value of Financial Instruments (continued) #### Financial Instruments Not Carried at Fair Value The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. These financial assets and financial liabilities are further described in Part II - Item 8, Note 3 in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The following table presents the carrying amount and fair value of the Company’s financial assets and financial liabilities not carried at fair value and the level within the fair value hierarchy at which such financial assets and liabilities are categorized. | ($ in millions) / June 30, 2026 | Carrying Amount | Fair Value | Fair Value Measurements at Reporting Date Using / Level 1 | Fair Value Measurements at Reporting Date Using / Level 2 | Fair Value Measurements at Reporting Date Using / Level 3 | | --- | --- | --- | --- | --- | --- | | Financial Assets | | | | | | | Policy loans | $136.3 | $139.3 | — | — | $139.3 | | Other investments | 92.3 | 92.3 | — | 38.2 | 54.1 | | Deposit asset on reinsurance | 2,345.4 | 2,087.9 | — | — | 2,087.9 | | Financial Liabilities | | | | | | | Policyholders' account balances | 4,962.9 | 4,625.4 | — | — | 4,625.4 | | Other policyholder funds | 1,076.0 | 1,076.0 | — | 1,073.1 | 2.9 | | Long-term debt | 594.2 | 620.7 | — | 620.7 | — | | December 31, 2025 | | | | | | | Financial Assets | | | | | | | Policy loans | $138.1 | $141.2 | — | — | $141.2 | | Other investments | 77.4 | 77.5 | — | 39.3 | 38.2 | | Deposit asset on reinsurance | 2,369.6 | 2,143.1 | — | — | 2,143.1 | | Financial Liabilities | | | | | | | Policyholders' account balances | 4,984.9 | 4,791.1 | — | — | 4,791.1 | | Other policyholder funds | 1,046.2 | 1,046.2 | — | 1,043.2 | 3.0 | | Long-term debt | 593.4 | 629.1 | — | 629.1 | — | Horace Mann Educators Corporation 18 Second Quarter 2026 Form 10-Q ### NOTE 4 - Short-Duration Insurance Contracts #### Property & casualty Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending property & casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net property & casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. Also included in property & casualty claims expense reserves are legacy commercial line exposures, which are included in the Corporate & Other segment for segment reporting purposes. | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Property & Casualty | | | | | | Beginning gross reserves | $406.9 | $416.7 | $404.5 | $420.6 | | Less: reinsurance recoverables | 101.5 | 98.3 | 101.2 | 100.8 | | Net reserves, beginning of period(1) | 305.4 | 318.4 | 303.3 | 319.8 | | Incurred claims and claim expenses: | | | | | | Claims occurring in the current period | 134.0 | 141.9 | 253.1 | 265.7 | | Increase (decrease) in estimated reserves for claims occurring in prior periods(2) | (6.6) | (5.5) | (11.6) | (10.8) | | Total claims and claim expenses incurred | 127.4 | 136.4 | 241.5 | 254.9 | | Claims and claim expense paymentsfor claims occurring during: | | | | | | Current period | 78.8 | 89.7 | 123.6 | 139.7 | | Prior periods | 39.2 | 44.0 | 106.4 | 113.9 | | Total claims and claim expense payments | 118.0 | 133.7 | 230.0 | 253.6 | | Net reserves, end of period(1) | 314.8 | 321.0 | 314.8 | 321.0 | | Plus: reinsurance recoverables | 100.6 | 98.8 | 100.6 | 98.8 | | Ending gross reserves | $415.4 | $419.8 | $415.4 | $419.8 | (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. The Company recognized $6.6 million and $11.6 million of net favorable prior years' reserve development for the three and six months ended June 30, 2026. There was $5.5 million and $10.8 million of net favorable prior years' reserve development for the three and six months ended June 30, 2025. The net favorable development for the six months ended June 30, 2026 was primarily a result of favorable loss trends in auto and property for accident years 2025 and prior. The net favorable development for the six months ended June 30, 2025 was primarily a result of favorable loss trends in auto and property for accident years 2024 and prior. #### Group Benefits Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. Horace Mann Educators Corporation 19 Second Quarter 2026 Form 10-Q ### NOTE 4 - Short-Duration Insurance Contracts (continued) | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Group Benefits | | | | | | Beginning gross reserves | $116.7 | $109.0 | $113.2 | $104.9 | | Less: reinsurance recoverables | 27.0 | 25.9 | 26.5 | 25.2 | | Net reserves, beginning of period(1) | 89.7 | 83.1 | 86.7 | 79.7 | | Incurred claims and claim expenses: | | | | | | Claims occurring in the current period | 24.2 | 18.6 | 46.0 | 37.0 | | Increase (decrease) in estimated reserves for claims occurring in prior periods(2) | (1.6) | (3.0) | (4.3) | (2.6) | | Total claims and claim expenses incurred | 22.6 | 15.6 | 41.7 | 34.4 | | Claims and claim expense paymentsfor claims occurring during: | | | | | | Current period | 11.6 | 5.9 | 16.3 | 9.7 | | Prior periods | 9.0 | 5.4 | 20.3 | 17.0 | | Total claims and claim expense payments | 20.6 | 11.3 | 36.6 | 26.7 | | Net reserves, end of period(1) | 91.7 | 87.4 | 91.7 | 87.4 | | Plus: reinsurance recoverables | 27.7 | 25.8 | 27.7 | 25.8 | | Ending gross reserves | $119.4 | $113.2 | $119.4 | $113.2 | (1) Reserves net of expected reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development. Net favorable prior years' reserve development for Group Benefits was $1.6 million and $4.3 million for the three and six months ended June 30, 2026. There was $3.0 million and $2.6 million of net favorable prior years' reserve development for the three and six months ended June 30, 2025. The favorable development for the six months ended June 30, 2026 was primarily the result of favorable loss trends in group life for loss years 2025 and prior. The favorable development for the six months ended June 30, 2025 was primarily the result of favorable loss trends in group life and disability for loss years 2024 and prior. #### Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets | ($ in millions) / Ending gross reserves | As of June 30, 2026 | As of December 31, 2025 | | --- | --- | --- | | Property & Casualty | $415.4 | $404.5 | | Group Benefits | 119.4 | 113.2 | | Total short-duration insurance contracts | 534.8 | 517.7 | | Other than short-duration(1) | 53.0 | 47.5 | | Total unpaid claims and claims expenses | $587.8 | $565.2 | (1) This line includes Life & Retirement, Supplemental, and other certain group benefit reserves. ### Note 5 - Long-Duration Insurance Contracts #### Liability for Future Policy Benefits As of and for the three and six months ended June 30, 2026 and 2025, the Company updated the net premium ratio when updating for actual historical experience for the quarter; future cash flow assumptions were reviewed but not changed. The following tables summarize balances and changes in LFPB for traditional and limited-pay contracts. Horace Mann Educators Corporation 20 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The balances of and changes in LFPB as of and for the three months ended June 30, 2026 were as follows: | ($ in millions) | Whole Life | Term Life | Experience Life(1) | Limited-Pay Whole Life | Supplemental Health(2) | SPIA (life contingent) | | --- | --- | --- | --- | --- | --- | --- | | Present value of expected net premiums: | | | | | | | | Balance at April 1, 2026 | $222.2 | $242.8 | $64.6 | $34.0 | $187.2 | — | | April 1, 2026 balance at original discount rate | 252.4 | 259.9 | 63.2 | 35.9 | 215.7 | — | | Effect of: | | | | | | | | Change in cash flow assumptions | — | — | — | — | — | — | | Actual variances from expected experience | (0.4) | (0.1) | (0.8) | — | 1.4 | — | | Adjusted balance at April 1, 2026 | 252.0 | 259.8 | 62.4 | 35.9 | 217.1 | — | | Issuances(3) | 2.8 | 5.5 | — | 0.5 | 4.7 | — | | Interest accruals(4) | 2.1 | 2.8 | 0.9 | 0.3 | 1.8 | — | | Net premiums collected(5) | (6.2) | (6.8) | (1.7) | (1.2) | (6.9) | — | | June 30, 2026 balance at original discount rate | 250.8 | 261.3 | 61.6 | 35.6 | 216.6 | — | | Effect of changes in discount rate assumptions | (29.4) | (16.8) | 1.4 | (1.9) | (27.6) | — | | Balance at June 30, 2026 | 221.4 | 244.5 | 63.0 | 33.7 | 189.0 | — | | Present value of expected future policy benefits: | | | | | | | | Balance at April 1, 2026 | 496.8 | 386.0 | 786.0 | 88.1 | 375.0 | 93.4 | | April 1, 2026 balance at original discount rate | 615.8 | 432.5 | 757.1 | 118.5 | 463.9 | 101.7 | | Effect of: | | | | | | | | Changes in cash flow assumptions | — | — | — | — | — | — | | Actual variances from expected experience | (0.5) | — | (1.2) | 0.1 | 1.3 | (0.1) | | Adjusted balance at April 1, 2026 | 615.3 | 432.5 | 755.9 | 118.6 | 465.2 | 101.6 | | Issuances | 2.8 | 5.6 | — | 0.5 | 4.7 | — | | Interest accruals | 5.4 | 4.5 | 11.1 | 1.1 | 3.5 | 1.0 | | Benefit payments(6) | (7.0) | (5.2) | (16.1) | (0.9) | (9.1) | (2.9) | | June 30, 2026 balance at original discount rate | 616.5 | 437.4 | 750.9 | 119.3 | 464.3 | 99.7 | | Effect of changes in discount rate assumptions | (114.8) | (44.4) | 30.0 | (29.5) | (86.7) | (8.2) | | Balance at June 30, 2026 | 501.7 | 393.0 | 780.9 | 89.8 | 377.6 | 91.5 | | Net liability for future policy benefits | 280.3 | 148.4 | 718.0 | 56.0 | 188.9 | 91.6 | | Less: Reinsurance recoverable | (56.8) | (21.3) | (0.8) | (1.5) | (5.1) | (4.1) | | Net liability for future policy benefits, after reinsurance recoverable | 223.5 | 127.1 | 717.2 | 54.5 | 183.8 | 87.5 | | Impact of flooring on net liability for future policy benefits | — | — | — | — | — | — | | Net liability for future policy benefits at June 30, 2026 | $223.5 | $127.1 | $717.2 | $54.5 | $183.8 | $87.5 | (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2026, the net LFPB for Supplemental Health was $64.7 million for cancer, $17.2 million for accident, $21.0 million for disability and $80.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. Horace Mann Educators Corporation 21 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The balances of and changes in LFPB as of and for the six months ended June 30, 2026 were as follows: | ($ in millions) | Whole Life | Term Life | Experience Life(1) | Limited-Pay Whole Life | Supplemental Health(2) | SPIA (life contingent) | | --- | --- | --- | --- | --- | --- | --- | | Present value of expected net premiums: | | | | | | | | Balance at January 1, 2026 | $239.5 | $245.2 | $67.1 | $35.0 | $187.5 | — | | January 1, 2026 balance at original discount rate | 270.6 | 259.7 | 64.5 | 36.5 | 213.6 | — | | Effect of: | | | | | | | | Change in cash flow assumptions | — | — | — | — | — | — | | Actual variances from expected experience | (1.3) | (1.4) | (1.3) | (0.4) | 3.1 | — | | Adjusted balance at January 1, 2026 | 269.3 | 258.3 | 63.2 | 36.1 | 216.7 | — | | Issuances(3) | 5.3 | 10.3 | — | 1.0 | 10.1 | 0.2 | | Interest accruals(4) | 4.3 | 5.6 | 1.8 | 0.7 | 3.5 | — | | Net premiums collected(5) | (28.1) | (12.9) | (3.4) | (2.2) | (13.7) | (0.2) | | June 30, 2026 balance at original discount rate | 250.8 | 261.3 | 61.6 | 35.6 | 216.6 | — | | Effect of changes in discount rate assumptions | (29.4) | (16.8) | 1.4 | (1.9) | (27.6) | — | | Balance at June 30, 2026 | 221.4 | 244.5 | 63.0 | 33.7 | 189.0 | — | | Present value of expected future policy benefits: | | | | | | | | Balance at January 1, 2026 | 518.4 | 389.3 | 807.8 | 89.6 | 379.0 | 96.0 | | January 1, 2026 balance at original discount rate | 631.9 | 429.8 | 763.3 | 118.1 | 462.7 | 103.0 | | Effect of: | | | | | | | | Changes in cash flow assumptions | — | — | — | — | — | — | | Actual variances from expected experience | (1.3) | (0.9) | (1.8) | (0.4) | 2.8 | (0.3) | | Adjusted balance at January 1, 2026 | 630.6 | 428.9 | 761.5 | 117.7 | 465.5 | 102.7 | | Issuances | 5.3 | 10.5 | — | 1.0 | 10.1 | 0.2 | | Interest accruals | 10.8 | 8.8 | 22.4 | 2.3 | 6.9 | 2.0 | | Benefit payments(6) | (30.2) | (10.8) | (33.0) | (1.7) | (18.2) | (5.2) | | June 30, 2026 balance at original discount rate | 616.5 | 437.4 | 750.9 | 119.3 | 464.3 | 99.7 | | Effect of changes in discount rate assumptions | (114.8) | (44.4) | 30.0 | (29.5) | (86.7) | (8.2) | | Balance at June 30, 2026 | 501.7 | 393.0 | 780.9 | 89.8 | 377.6 | 91.5 | | Net liability for future policy benefits | 280.3 | 148.4 | 718.0 | 56.0 | 188.9 | 91.6 | | Less: Reinsurance recoverable | (56.8) | (21.3) | (0.8) | (1.5) | (5.1) | (4.1) | | Net liability for future policy benefits, after reinsurance recoverable | 223.5 | 127.1 | 717.2 | 54.5 | 183.8 | 87.5 | | Impact of flooring on net liability for future policy benefits | — | — | — | — | — | — | | Net liability for future policy benefits at June 30, 2026 | $223.5 | $127.1 | $717.2 | $54.5 | $183.8 | $87.5 | (1) Experience Life contains both whole life and term elements. (2) As of June 30, 2026, the net LFPB for Supplemental Health was $64.7 million for cancer, $17.2 million for accident, $21.0 million for disability and $80.9 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. Horace Mann Educators Corporation 22 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The balances of and changes in LFPB as of and for the year ended December 31, 2025 were as follows: | ($ in millions) | Whole Life | Term Life | Experience Life(1) | Limited-Pay Whole Life | Supplemental Health(2) | SPIA (life contingent) | | --- | --- | --- | --- | --- | --- | --- | | Present value of expected net premiums: | | | | | | | | Balance at January 1, 2025 | $229.1 | $245.9 | $66.6 | $34.2 | $179.9 | — | | January 1, 2025 balance at original discount rate | 263.2 | 271.2 | 65.4 | 36.8 | 214.6 | — | | Effect of: | | | | | | | | Change in cash flow assumptions | 6.3 | (16.5) | 0.7 | 0.4 | (2.8) | — | | Actual variances from expected experience | 0.3 | (3.4) | 1.6 | (0.2) | (2.4) | — | | Adjusted balance at January 1, 2025 | 269.8 | 251.3 | 67.7 | 37.0 | 209.4 | — | | Issuances(3) | 10.7 | 23.6 | — | 2.5 | 22.9 | 2.4 | | Interest accruals(4) | 8.4 | 11.1 | 3.7 | 1.5 | 7.0 | — | | Net premiums collected(5) | (18.3) | (26.3) | (6.9) | (4.5) | (25.7) | (2.4) | | December 31, 2025 balance at original discount rate | 270.6 | 259.7 | 64.5 | 36.5 | 213.6 | — | | Effect of changes in discount rate assumptions | (31.1) | (14.5) | 2.6 | (1.5) | (26.1) | — | | Balance at December 31, 2025 | 239.5 | 245.2 | 67.1 | 35.0 | 187.5 | — | | Present value of expected future policy benefits: | | | | | | | | Balance at January 1, 2025 | 504.3 | 377.8 | 813.2 | 86.2 | 383.4 | 97.3 | | January 1, 2025 balance at original discount rate | 617.4 | 433.2 | 782.8 | 114.3 | 482.8 | 107.3 | | Effect of: | | | | | | | | Changes in cash flow assumptions | 5.9 | (20.7) | 1.7 | 0.2 | (5.3) | — | | Actual variances from expected experience | 1.0 | (4.4) | 3.4 | — | (4.7) | 0.1 | | Adjusted balance at January 1, 2025 | 624.3 | 408.1 | 787.9 | 114.5 | 472.8 | 107.4 | | Issuances | 10.7 | 23.8 | — | 2.5 | 22.9 | 2.4 | | Interest accruals | 21.0 | 17.0 | 45.7 | 4.5 | 13.9 | 4.1 | | Benefit payments(6) | (24.1) | (19.1) | (70.3) | (3.4) | (46.9) | (10.9) | | December 31, 2025 balance at original discount rate | 631.9 | 429.8 | 763.3 | 118.1 | 462.7 | 103.0 | | Effect of changes in discount rate assumptions | (113.5) | (40.4) | 44.5 | (28.5) | (83.7) | (7.0) | | Balance at December 31, 2025 | 518.4 | 389.3 | 807.8 | 89.6 | 379.0 | 96.0 | | Net liability for future policy benefits | 278.8 | 144.1 | 740.8 | 54.6 | 191.8 | 96.0 | | Less: Reinsurance recoverable | (57.3) | (20.9) | (0.8) | (1.4) | (5.1) | (3.8) | | Net liability for future policy benefits, after reinsurance recoverable | 221.5 | 123.2 | 740.0 | 53.2 | 186.7 | 92.2 | | Impact of flooring on net liability for future policy benefits | — | — | — | — | — | — | | Net liability for future policy benefits at December 31, 2025 | $221.5 | $123.2 | $740.0 | $53.2 | $186.7 | $92.2 | (1) Experience Life contains both whole life and term elements. (2) As of December 31, 2025, the net LFPB for Supplemental Health was $66.0 million for cancer, $17.9 million for accident, $21.3 million for disability and $81.5 million for other supplemental health policies. (3) Issuances are calculated at present value, using the original discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the current period. (4) Interest accruals represent the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the original interest rate. (5) Net premiums collected represent the product of the current period net premium ratio and the gross premiums collected during the period of in force business. (6) Benefit payments represent the release of the present value, using the original discount rate, of the expected future policy benefits due to death, lapse/withdrawal and maturity payments based on revised expected assumptions. Horace Mann Educators Corporation 23 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The following table reconciles the net LFPB to LFPB in the Consolidated Balance Sheets. DPL for single premium and immediate annuity products is presented together with LFPB in the Consolidated Balance Sheets: | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Whole life | $280.3 | $278.8 | | Term life | 148.4 | 144.1 | | Experience life | 718.0 | 740.8 | | Limited-pay whole life | 56.0 | 54.6 | | Supplemental health | 188.9 | 191.8 | | SPIA (life contingent) | 91.6 | 96.0 | | Limited-pay whole life DPL | 6.6 | 6.2 | | SPIA (life contingent) DPL | 1.2 | 1.5 | | Reconciling items(1) | 95.4 | 97.7 | | Total | $1,586.5 | $1,611.5 | (1) Reconciling items primarily relate to products not in scope of ASU 2018-12 and return of premium reserves. The following table summarizes the amount of revenue and interest related to traditional and limited-payment contracts recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss): | ($ in millions) | Gross premiums or assessments / Three Months Ended June 30, 2026 | Gross premiums or assessments / Three Months Ended June 30, 2025 | Gross premiums or assessments / Six Months Ended June 30, 2026 | Gross premiums or assessments / Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Whole life | $7.4 | $7.4 | $14.4 | $14.4 | | Term life | 12.2 | 11.1 | 23.7 | 22.8 | | Experience life | 7.0 | 7.3 | 13.9 | 14.7 | | Limited-pay whole life | 1.6 | 1.6 | 3.4 | 3.4 | | Supplemental health | 32.9 | 31.2 | 65.6 | 62.1 | | SPIA (life contingent) | — | 0.7 | 0.2 | 1.3 | | Total | $61.1 | $59.3 | $121.2 | $118.7 | | ($ in millions) | Interest expense / Three Months Ended June 30, 2026 | Interest expense / Three Months Ended June 30, 2025 | Interest expense / Six Months Ended June 30, 2026 | Interest expense / Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Whole life | $3.3 | $3.2 | $6.5 | $6.3 | | Term life | 1.6 | 1.5 | 3.1 | 2.9 | | Experience life | 10.3 | 10.5 | 20.6 | 21.1 | | Limited-pay whole life | 0.8 | 0.7 | 1.6 | 1.5 | | Supplemental health | 1.6 | 1.7 | 3.3 | 3.5 | | SPIA (life contingent) | 1.0 | 1.0 | 2.0 | 2.1 | | Total | $18.6 | $18.6 | $37.1 | $37.4 | Horace Mann Educators Corporation 24 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefits and expenses for traditional and limited-payment contracts: | ($ in millions) | As of June 30, 2026 / Undiscounted | As of June 30, 2026 / Discounted | As of December 31, 2025 / Undiscounted | As of December 31, 2025 / Discounted | | --- | --- | --- | --- | --- | | Whole life | | | | | | Expected future gross premiums | $548.0 | $345.8 | $547.3 | $364.1 | | Expected future benefits and expenses | 1,349.3 | 616.4 | 1,340.4 | 631.9 | | Term life | | | | | | Expected future gross premiums | 700.1 | 454.8 | 692.2 | 456.7 | | Expected future benefits and expenses | 751.5 | 437.3 | 735.9 | 429.8 | | Experience Life | | | | | | Expected future gross premiums | 434.4 | 246.7 | 453.1 | 256.3 | | Expected future benefits and expenses | 1,492.8 | 750.9 | 1,531.5 | 763.3 | | Limited-pay whole life | | | | | | Expected future gross premiums | 75.4 | 55.4 | 75.9 | 56.0 | | Expected future benefits and expenses | 342.0 | 119.3 | 337.8 | 118.1 | | Supplemental health | | | | | | Expected future gross premiums | 1,635.8 | 1,166.9 | 1,613.0 | 1,160.1 | | Expected future benefits and expenses | 684.5 | 464.2 | 674.0 | 462.7 | | SPIA (life contingent) | | | | | | Expected future gross premiums | — | — | — | — | | Expected future benefits and expenses | 139.7 | 99.8 | 144.6 | 103.0 | For the six months ended June 30, 2026 and for the year ended December 31, 2025, net premiums exceeded gross premiums for several cohorts in the Whole Life and Term Life product lines. This resulted in an immaterial change to current period benefit expense for both periods. The following table summarizes the ranges of actual experience and expected experience for mortality and lapses of LFPB: _June 30, 2026_ | Line item | Whole Life | Term Life | Experience Life | Limited-Pay Whole Life | Supplemental Health | SPIA (life contingent) | | --- | --- | --- | --- | --- | --- | --- | | Mortality / Morbidity | | | | | | | | Actual experience | 0.7% | 0.1% - 0.7% | 1.8% | 0.2% | 30.3% | N.M. | | Expected experience | 0.8% | 0.1% - 1.0% | 2.0% | 0.3% | 27.8% | N.M. | | Lapses | | | | | | | | Actual experience | 3.8% | 4.3% - 8.1% | 4.5% | 4.2% | 11.0% | N.M. | | Expected experience | 3.4% | 4.8% - 9.0% | 3.3% | 3.6% | 10.5% | N.M. | | | June 30, 2025 | | | | | | | | Whole Life | Term Life | Experience Life | Limited-Pay Whole Life | Supplemental Health | SPIA (life contingent) | | Mortality / Morbidity | | | | | | | | Actual experience | 0.9% | 0.1% - 0.4% | 1.9% | 0.2% | 37.6% | N.M. | | Expected experience | 0.8% | 0.1% - 0.9% | 1.9% | 0.3% | 26.9% | N.M. | | Lapses | | | | | | | | Actual experience | 3.3% | 3.7% - 10.1% | 3.6% | 3.4% | 11.0% | N.M. | | Expected experience | 3.8% | 5.1% - 9.6% | 3.0% | 4.0% | 14.0% | N.M. | Horace Mann Educators Corporation 25 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The following table provides the weighted-average durations of LFPB, in years: | Line item | As of June 30, 2026 | As of June 30, 2025 | | --- | --- | --- | | Whole life | 19.8 | 19.4 | | Term life | 15.4 | 15.8 | | Experience life | 9.4 | 10.0 | | Limited-pay whole life | 24.6 | 24.1 | | Supplemental health | 11.8 | 11.6 | | SPIA (life contingent) | 7.3 | 7.5 | The following table provides ranges of the weighted-average interest rates for LFPB: | Line item | As of June 30, 2026 | As of June 30, 2025 | | --- | --- | --- | | Whole life | | | | Interest accretion rate | 1.7% - 4.8% | 1.7% - 4.8% | | Current discount rate | 4.8% - 5.8% | 4.9% - 5.7% | | Term life | | | | Interest accretion rate | 4.2% - 4.3% | 4.2% - 4.2% | | Current discount rate | 5.4% - 5.6% | 5.3% - 5.4% | | Experience life | | | | Interest accretion rate | 6.1% | 6.1% | | Current discount rate | 5.6% | 5.5% | | Limited-pay whole life | | | | Interest accretion rate | 4.0% | 4.0% | | Current discount rate | 5.9% | 5.8% | | Supplemental health | | | | Interest accretion rate | 1.7% - 2.8% | 1.7% - 2.8% | | Current discount rate | 5.6% - 5.7% | 5.5% - 5.7% | | SPIA (life contingent) | | | | Interest accretion rate | 1.7% - 4.1% | 1.7% - 4.1% | | Current discount rate | 5.4% - 5.4% | 5.2% - 5.3% | Horace Mann Educators Corporation 26 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) #### Liability for Policyholders' Account Balances The Company recognizes a liability for policyholders' account balances. The following tables summarize balances of and changes in policyholders' account balances: | ($ in millions) | Three Months Ended June 30, 2026 / Indexed Universal Life | Three Months Ended June 30, 2026 / Experience Life(1) | Three Months Ended June 30, 2026 / Fixed Account Annuities | Three Months Ended June 30, 2026 / Fixed Indexed Account Annuities | Three Months Ended June 30, 2026 / SPIA (non-life contingent) | | --- | --- | --- | --- | --- | --- | | Balance at April 1, 2026 | $100.6 | $53.7 | $4,482.6 | $365.1 | $26.2 | | Premiums received(2) | $7.3 | $(0.2) | $40.0 | $2.8 | $0.8 | | Surrenders and withdrawals(3) | (0.5) | (1.1) | (88.4) | (10.1) | (0.2) | | Benefit payments(4) | (0.4) | (0.3) | (17.1) | (0.4) | (1.2) | | Net transfers from (to) separate account | 0.2 | — | 5.3 | (0.2) | — | | Interest credited(5) | 2.0 | 0.7 | 42.7 | 5.6 | 0.2 | | Other | (1.3) | — | 3.9 | (2.1) | — | | Balance at June 30, 2026 | $107.9 | $52.8 | $4,469.0 | $360.7 | $25.8 | | Weighted-average crediting rate | 8.2% | 5.3% | 3.9% | 6.4% | 3.4% | | Net amount at risk(6) | — | — | $22.2 | — | — | | Cash surrender value | $84.3 | $52.2 | $4,421.0 | $356.9 | $25.5 | | ($ in millions) | Three Months Ended June 30, 2025 | | | | | | | Indexed Universal Life | Experience Life(1) | Fixed Account Annuities | Fixed Indexed Account Annuities | SPIA (non-life contingent) | | Balance at April 1, 2025 | $78.2 | $57.4 | $4,495.9 | $399.7 | $28.3 | | Premiums received(2) | $4.9 | $(0.2) | $46.6 | $3.4 | $0.8 | | Surrenders and withdrawals(3) | (0.4) | (1.0) | (80.8) | (11.2) | — | | Benefit payments(4) | — | (0.4) | (21.4) | (0.7) | (1.1) | | Net transfers from (to) separate account | (0.1) | — | 8.2 | (0.4) | — | | Interest credited(5) | 0.8 | 0.7 | 40.9 | 2.8 | 0.2 | | Other | (1.1) | — | 5.7 | (5.0) | (0.3) | | Balance at June 30, 2025 | $82.3 | $56.5 | $4,495.1 | $388.6 | $27.9 | | Weighted-average crediting rate | 4.1% | 5.0% | 3.7% | 2.9% | 2.9% | | Net amount at risk(6) | — | — | $24.7 | — | — | | Cash surrender value | $62.4 | $55.9 | $4,448.7 | $382.7 | $27.6 | (1) Represents the Policy Account feature embedded in our Experience Life suite of products. (2) Premiums received represents premiums collected from policyholder during the period of in force business. (3) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (4) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (5) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (6) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. Horace Mann Educators Corporation 27 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) | ($ in millions) | Six Months Ended June 30, 2026 / Indexed Universal Life | Six Months Ended June 30, 2026 / Experience Life(1) | Six Months Ended June 30, 2026 / Fixed Account Annuities | Six Months Ended June 30, 2026 / Fixed Indexed Account Annuities | Six Months Ended June 30, 2026 / SPIA (non-life contingent) | | --- | --- | --- | --- | --- | --- | | Balance at January 1, 2026 | $95.5 | $54.8 | $4,486.8 | $373.3 | $26.1 | | Premiums received(2) | $14.0 | $(0.4) | $76.3 | $5.7 | $1.9 | | Surrenders and withdrawals(3) | (1.4) | (2.0) | (162.4) | (20.0) | (0.3) | | Benefit payments(4) | (0.4) | (0.8) | (32.1) | (1.4) | (2.3) | | Net transfers from (to) separate account | (0.1) | — | 14.2 | (0.3) | — | | Interest credited(5) | 2.8 | 1.3 | 84.1 | 7.0 | 0.4 | | Other | (2.5) | (0.1) | 2.1 | (3.6) | — | | Balance at June 30, 2026 | $107.9 | $52.8 | $4,469.0 | $360.7 | $25.8 | | Weighted-average crediting rate | 5.8% | 4.9% | 3.9% | 3.9% | 3.3% | | Net amount at risk(6) | — | — | $22.2 | — | — | | Cash surrender value | $84.3 | $52.2 | $4,421.0 | $356.9 | $25.5 | | ($ in millions) | Six Months Ended June 30, 2025 | | | | | | | Indexed Universal Life | Experience Life(1) | Fixed Account Annuities | Fixed Indexed Account Annuities | SPIA (non-life contingent) | | Balance at January 1, 2025 | $72.9 | $58.0 | $4,508.4 | $409.5 | $28.6 | | Premiums received(2) | $10.9 | $(0.4) | $90.0 | $7.6 | $1.4 | | Surrenders and withdrawals(3) | (0.8) | (1.8) | (170.0) | (24.4) | (0.2) | | Benefit payments(4) | — | (0.7) | (43.2) | (2.4) | (2.3) | | Net transfers from (to) separate account | (0.2) | — | 20.2 | (0.6) | — | | Interest credited(5) | 1.8 | 1.4 | 83.6 | 6.2 | 0.5 | | Other | (2.3) | — | 6.1 | (7.3) | (0.1) | | Balance at June 30, 2025 | $82.3 | $56.5 | $4,495.1 | $388.6 | $27.9 | | Weighted-average crediting rate | 4.8% | 5.0% | 3.8% | 3.2% | 3.7% | | Net amount at risk(6) | — | — | $24.7 | — | — | | Cash surrender value | $62.4 | $55.9 | $4,448.7 | $382.7 | $27.6 | (1) Represents the Policy Account feature embedded in our Experience Life suite of products. (2) Premiums received represents premiums collected from policyholder during the period of in force business. (3) Surrenders and withdrawals represent reductions to the policyholders' account balance due to policyholders surrendering the policy or withdrawing funds from the account balance. (4) Benefit payments represent benefits due under contract that were paid to a policyholder during the periods. (5) Interest credited represents interest earned and credited to policyholders' account balance during the periods. (6) Net amount at risk represents guaranteed benefit amounts less current policyholders' account balance at the reporting date. Horace Mann Educators Corporation 28 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The following table reconciles policyholders' account balances to the policyholders' account balance liability in the Consolidated Balance Sheets: | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Indexed universal life | $107.9 | $95.5 | | Experience Life | 52.8 | 54.8 | | Fixed account annuities | 4,469.0 | 4,486.8 | | Fixed indexed account annuities | 360.7 | 373.3 | | SPIA (non-life contingent) | 25.8 | 26.1 | | Reconciling items(1) | 25.6 | 27.6 | | Total | $5,041.8 | $5,064.1 | (1) Reconciling items primarily relate to FIA reserves net of account balances, miscellaneous fixed annuity reserves, personal promise accounts and MRBs. The following tables present the gross account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums: | ($ in millions) | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | June 30, 2026 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | At Guaranteed Minimum | | 1-50 Basis Points Above | | 51-150 Basis Points Above | | Greater Than 150 Basis Points Above | | Total(1) | | | Guaranteed minimum crediting rates: | | | | | | | | | | | | Less than 2% | $ | $6.6 | $ | $5.3 | $ | $205.7 | $ | $485.3 | $ | $702.8 | | Equal to 2% but less than 3% | 46.2 | | 169.1 | | 145.2 | | 181.9 | | 542.4 | | | Equal to 3% but less than 4% | 563.3 | | 14.2 | | 30.8 | | 106.8 | | 715.1 | | | Equal to 4% but less than 5% | 2,501.2 | | — | | — | | — | | 2,501.2 | | | 5% or higher | 76.0 | | — | | — | | — | | 76.0 | | | Total | $ | $3,193.3 | $ | $188.6 | $ | $381.7 | $ | $774.0 | $ | $4,537.5 | | ($ in millions) | December 31, 2025 | | | | | | | | | | | | At Guaranteed Minimum | | 1-50 Basis Points Above | | 51-150 Basis Points Above | | Greater Than 150 Basis Points Above | | Total(1) | | | Guaranteed minimum crediting rates: | | | | | | | | | | | | Less than 2% | $ | $8.3 | $ | $10.0 | $ | $255.2 | $ | $453.6 | $ | $727.1 | | Equal to 2% but less than 3% | 63.8 | | 142.4 | | 127.4 | | 165.1 | | 498.8 | | | Equal to 3% but less than 4% | 577.6 | | 10.4 | | 31.7 | | 105.8 | | 725.4 | | | Equal to 4% but less than 5% | 2,528.1 | | — | | — | | — | | 2,528.1 | | | 5% or higher | 78.1 | | — | | — | | — | | 78.1 | | | Total | $ | $3,255.9 | $ | $162.8 | $ | $414.3 | $ | $724.5 | $ | $4,557.5 | (1) Excludes products not containing a fixed guaranteed minimum crediting rate. #### Separate Account Liabilities Separate account assets and liabilities consist of investment accounts established and maintained by the Company for certain variable contracts. Some of these variable contracts include minimum guarantees such as GMDBs that guarantee a minimum payment to the policyholder in the event of death. The assets that support variable contracts are measured at fair value and are reported as separate account assets on the Consolidated Balance Sheets. An equivalent amount is reported as separate account liabilities. MRB assets and liabilities for minimum guarantees are valued and presented separately from separate account assets and separate account liabilities. MRBs are discussed further in the market risk benefits section of this Note to the Consolidated Financial Statements. Policy charges assessed against the policyholders for mortality, Horace Mann Educators Corporation 29 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) administration and other services are included in the life premiums and contract charges line item on the Consolidated Statements of Operations and Comprehensive Income (Loss). The following table presents the balances of and changes in the Separate Account variable annuity liabilities presented in the Consolidated Balance Sheets(1): | ($ in millions) | Retirement Services / Variable Account Annuities / June 30, 2026 | Retirement Services / Variable Account Annuities / December 31, 2025 | | --- | --- | --- | | Balance, beginning of year | $4,157.4 | $3,708.8 | | Deposits | 142.7 | 293.8 | | Withdrawals | (164.8) | (316.4) | | Net transfers | (13.9) | (27.5) | | Fees and charges | (31.1) | (57.2) | | Market appreciation (depreciation) | 379.5 | 555.9 | | Other | — | — | | Balance, end of period | $4,469.8 | $4,157.4 | (1) The Separate Account variable annuity liabilities are backed by, and are equal to, the Separate Account variable annuity assets that represent contractholder funds invested in various actively traded mutual funds that have daily quoted net asset values that are readily determinable for identical assets that the Company can access. #### Market Risk Benefits The following table presents the balances of and changes in MRBs associated with deferred variable annuities as of and for the three months ended June 30, 2026 and 2025, respectively: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Balance, beginning of period | $(6.2) | $(5.2) | $(9.0) | $(6.8) | | Balance, beginning of period, before effects of changes in the instrument-specific credit risk | (6.5) | (6.0) | (9.1) | (7.4) | | Changes in market risk benefits(1) | (4.5) | (1.0) | (1.9) | 0.4 | | Balance, end of period(2) | $(11.0) | $(7.0) | $(11.0) | $(7.0) | | Effect of changes in the instrument-specific credit risk | (0.1) | 0.3 | (0.1) | 0.3 | | Balance, end of period | $(11.1) | $(6.7) | $(11.1) | $(6.7) | | Net amount at risk(3) | $11.2 | $13.8 | $11.2 | $13.8 | | Weighted-average attained age of contract holders | 62 | 62 | 62 | 62 | (1) Reflects interest accruals and effect of changes in interest rates, equity markets, equity index volatility and future assumptions. (2) Balance, end of period, before the effect of changes in the instrument-specific credit risk. (3) Net amount at risk represents the current guaranteed benefit less current account balance at the reporting date. The following table presents MRBs by amounts in an asset position and amounts in a liability position. The net liabilities (assets) are included in Policyholders' account balances presented in the Consolidated Balance Sheets. | As of June 30, 2026 / (Asset) | As of June 30, 2026 / Liability | As of December 31, 2025 / (Asset) | As of December 31, 2025 / Liability | As of December 31, 2025 / Net | | --- | --- | --- | --- | --- | | $(12.1) | $$1.0 | $$(10.3) | $1.3 | $(9.0) | Horace Mann Educators Corporation 30 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) #### Deferred Acquisition Costs The following tables roll-forward DAC for the periods indicated: | ($ in millions) | Three Months Ended June 30, 2026 / Whole Life | Three Months Ended June 30, 2026 / Term Life | Three Months Ended June 30, 2026 / Experience Life | Three Months Ended June 30, 2026 / Limited-Pay Whole Life | Three Months Ended June 30, 2026 / Indexed Universal Life | Three Months Ended June 30, 2026 / Supplemental Health | Three Months Ended June 30, 2026 / Total Annuities | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance, beginning of period | $25.1 | $35.9 | $5.1 | $8.3 | $23.9 | $14.6 | $206.4 | | Capitalizations | 0.7 | 0.9 | — | 0.2 | 1.3 | 1.4 | 3.4 | | Amortization expense | (0.3) | (0.8) | (0.1) | (0.1) | (0.3) | (0.4) | (4.1) | | Experience adjustment | — | (0.1) | — | — | — | — | (0.4) | | Balance, end of period | $25.5 | $35.9 | $5.0 | $8.4 | $24.9 | $15.6 | $205.3 | | ($ in millions) | Three Months Ended June 30, 2025 | | | | | | | | | Whole Life | Term Life | Experience Life | Limited-Pay Whole Life | Indexed Universal Life | Supplemental Health | Total Annuities | | Balance, beginning of period | $24.1 | $34.5 | $5.4 | $8.0 | $19.8 | $11.2 | $210.4 | | Capitalizations | 0.8 | 1.0 | 0.1 | 0.2 | 0.8 | 1.1 | 3.2 | | Amortization expense | (0.3) | (0.7) | (0.1) | (0.1) | (0.3) | (0.2) | (3.9) | | Experience adjustment | — | — | — | — | — | — | (0.3) | | Balance, end of period | $24.6 | $34.8 | $5.4 | $8.1 | $20.3 | $12.1 | $209.4 | | ($ in millions) | Six Months Ended June 30, 2026 / Whole Life | Six Months Ended June 30, 2026 / Term Life | Six Months Ended June 30, 2026 / Experience Life | Six Months Ended June 30, 2026 / Limited-Pay Whole Life | Six Months Ended June 30, 2026 / Indexed Universal Life | Six Months Ended June 30, 2026 / Supplemental Health | Six Months Ended June 30, 2026 / Total Annuities | | --- | --- | --- | --- | --- | --- | --- | --- | | Balance, beginning of period | $24.9 | $35.5 | $5.2 | $8.3 | $22.8 | $13.7 | $207.7 | | Capitalizations | 1.3 | 2.0 | — | 0.3 | 2.7 | 2.7 | 6.6 | | Amortization expense | (0.6) | (1.5) | (0.2) | (0.2) | (0.6) | (0.7) | (8.3) | | Experience adjustment | (0.1) | (0.1) | — | — | — | (0.1) | (0.7) | | Balance, end of period | $25.5 | $35.9 | $5.0 | $8.4 | $24.9 | $15.6 | $205.3 | | ($ in millions) | Six Months Ended June 30, 2025 | | | | | | | | | Whole Life | Term Life | Experience Life | Limited-Pay Whole Life | Indexed Universal Life | Supplemental Health | Total Annuities | | Balance, beginning of period | $23.8 | $34.2 | $5.5 | $8.0 | $19.2 | $10.6 | $211.4 | | Capitalizations | 1.4 | 2.2 | 0.1 | 0.3 | 1.6 | 2.1 | 6.8 | | Amortization expense | (0.6) | (1.6) | (0.2) | (0.2) | (0.5) | (0.5) | (7.9) | | Experience adjustment | — | — | — | — | — | (0.1) | (0.9) | | Balance, end of period | $24.6 | $34.8 | $5.4 | $8.1 | $20.3 | $12.1 | $209.4 | Horace Mann Educators Corporation 31 Second Quarter 2026 Form 10-Q ### NOTE 5 - Long-Duration Insurance Contracts (continued) The following table presents a reconciliation of DAC to the Consolidated Balance Sheets: | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Whole life | $25.5 | $24.9 | | Term life | 35.9 | 35.5 | | Experience life | 5.0 | 5.2 | | Limited pay whole life | 8.4 | 8.3 | | Indexed universal life | 24.9 | 22.8 | | Supplemental health | 15.6 | 13.7 | | Total annuities | 205.3 | 207.7 | | Reconciling item(1) | 37.6 | 40.1 | | Total | $358.2 | $358.2 | (1) Reconciling item relates to DAC associated with the Property & Casualty reporting segment. The assumptions used to amortize DAC were consistent with the assumptions used to estimate LFPB for traditional and limited-payment contracts. The underlying assumptions for DAC and LFPB were updated at the same time. In the second quarter of 2026 and 2025, the Company conducted a review of all significant assumptions and did not make any changes to future assumptions because actual experience for mortality and lapses was materially consistent with underlying assumptions. Horace Mann Educators Corporation 32 Second Quarter 2026 Form 10-Q ### NOTE 6 - Reinsurance The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, claims incurred but not yet reported and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on net premiums written and contract deposits; net premiums and contract charges earned; and benefits, claims and settlement expenses were as follows: | ($ in millions) / Three months ended June 30, 2026 | Direct Amount(1) | Ceded to Other Companies | Assumedfrom Other Companies | Net Amount | | --- | --- | --- | --- | --- | | Net premiums written and contract deposits(2) | $432.5 | $15.2 | $6.6 | $423.8 | | Net premiums and contract charges earned | 325.3 | 15.1 | 6.7 | 316.9 | | Benefits, claims and settlement expenses | 192.9 | 11.1 | 4.5 | 186.3 | | Three months ended June 30, 2025 | | | | | | Net premiums written and contract deposits(2) | $427.9 | $15.4 | $6.3 | $418.8 | | Net premiums and contract charges earned | 311.9 | 15.3 | 6.0 | 302.6 | | Benefits, claims and settlement expenses | 192.1 | 11.0 | 2.4 | 183.5 | | Six months ended June 30, 2026 | | | | | | Net premiums written and contract deposits(2) | $838.3 | $30.3 | $15.8 | $823.7 | | Net premiums and contract charges earned | 645.5 | 30.2 | 14.6 | 629.9 | | Benefits, claims and settlement expenses | 376.3 | 22.2 | 8.6 | 362.7 | | Six months ended June 30, 2025 | | | | | | Net premiums written and contract deposits(2) | $830.3 | $30.5 | $12.2 | $812.0 | | Net premiums and contract charges earned | 618.6 | 29.7 | 12.0 | 600.9 | | Benefits, claims and settlement expenses | 381.7 | 22.0 | 7.0 | 366.7 | (1) Direct amount is net of the annuity reinsurance transaction accounted for using the deposit method. (2) This measure is not based on accounting principles generally accepted in the United States of America (non-GAAP). An explanation of this non-GAAP measure is contained in the Glossary of Selected Terms included as Exhibit 99.1 in the Company's reports filed with the SEC. Horace Mann Educators Corporation 33 Second Quarter 2026 Form 10-Q ### Note 7 - Segment Information The Company conducts and manages its business through four reporting segments. The three reporting segments representing the major lines of business are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). The Company does not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those reporting segments, but classifies those items in the fourth reporting segment, Corporate & Other. Corporate & Other includes capital raising activities (including debt financing and related interest expense), net investment gains (losses), certain public company expenses and other corporate-level transactions including termination of defined benefit plans and the early retirement offering. In addition to these transactions, Corporate & Other also includes legacy commercial claims. The accounting policies of the reporting segments are the same as those described in Note 1-Basis of Presentation and Significant Accounting Policies. Expense allocations are based on certain assumptions and estimates primarily related to direct cost, revenue and activity; methodologies are applied consistently. Stated segment operating results would change if different methods were applied. The Company’s Chief Executive Officer is the chief operating decision maker (CODM), responsible for reviewing financial performance and making decisions regarding the allocation of resources for the reporting segments. The Company measures and analyzes segment performance based on core earnings which differs from total income as presented in our consolidated statements of operations due to excluding the after-tax impact of net investment gains (losses), discontinued operations, the after-tax impact of goodwill and intangible asset impairments, other non-recurring or infrequent items and the cumulative effect of changes in accounting principles when applicable. We believe core earnings is a better performance measure and indicator of the profitability and underlying trends in our business. The CODM considers actual-to-budget variances in core earnings on a monthly basis when making decisions about allocating capital and personnel to segments and evaluating product pricing. Horace Mann Educators Corporation 34 Second Quarter 2026 Form 10-Q ### NOTE 7 - Segment Information (continued) Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2026, is as follows: | Line item | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | | --- | --- | --- | --- | --- | --- | | ($ in millions) | | | | | | | Net premiums and contract charges earned | $205.3 | $41.0 | $70.6 | — | $316.9 | | Net investment income | 11.8 | 96.7 | 10.4 | 1.6 | 120.5 | | Other segment income | 0.7 | 5.5 | (0.9) | 0.9 | 6.2 | | Total segment revenues | $217.8 | $143.2 | $80.1 | $2.5 | $443.6 | | Benefits and claims expenses (excluding catastrophe losses) | $84.7 | $31.9 | $31.6 | — | $148.2 | | Catastrophe losses | 24.2 | — | — | — | 24.2 | | Loss adjustment expenses | 18.5 | — | — | — | 18.5 | | Interest credited | — | 53.2 | 1.4 | — | 54.6 | | Operating & admin expenses | 34.5 | 25.1 | 21.0 | 3.5 | 84.0 | | Commissions expense | 16.9 | 11.3 | 11.3 | — | 39.5 | | Taxes, licenses and fees | 5.6 | 1.2 | 1.5 | 0.2 | 8.5 | | Deferred policy acquisition costs | (24.9) | (6.4) | (1.5) | — | (32.8) | | Deferred policy acquisition cost amortization | 25.3 | 6.2 | 0.5 | — | 32.0 | | Interest expense | — | — | — | 9.6 | 9.6 | | Total segment expenses | $184.8 | $122.5 | $65.8 | $13.3 | $386.4 | | Pretax profit (loss) | $33.0 | $20.7 | $14.3 | $(10.8) | $57.2 | | Income tax expense | 7.2 | 4.1 | 3.1 | (5.4) | 9.0 | | Segment profit (loss) (Core earnings) | 25.8 | 16.6 | 11.2 | (5.4) | 48.2 | | Net investment losses (after-tax) | — | — | — | (0.1) | (0.1) | | Non-core income adjustments (after-tax) | — | 3.6 | (2.7) | (7.3) | (6.5) | | Net income | $25.8 | $20.1 | $8.5 | $(12.8) | $41.6 | *-Corporate & Other is net of intersegment eliminations. Horace Mann Educators Corporation 35 Second Quarter 2026 Form 10-Q ### NOTE 7 - Segment Information (continued) Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2026, is as follows: | Line item | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | | --- | --- | --- | --- | --- | --- | | ($ in millions) | | | | | | | Net premiums and contract charges earned | $408.5 | $80.4 | $141.0 | — | $629.9 | | Net investment income | 26.4 | 183.7 | 19.3 | 1.8 | 231.2 | | Other segment income | 2.7 | 11.0 | (1.5) | 1.8 | 14.0 | | Total segment revenues | $437.6 | $275.1 | $158.8 | $3.6 | $875.1 | | Benefits and claims expenses (excluding catastrophe losses) | $170.6 | $63.4 | $59.7 | — | $293.7 | | Catastrophe losses | 35.5 | — | — | — | 35.5 | | Loss adjustment expenses | 35.4 | — | — | — | 35.4 | | Interest credited | — | 105.6 | 2.8 | — | 108.4 | | Operating & admin expenses | 67.9 | 50.2 | 41.6 | 6.4 | 166.1 | | Commissions expense | 33.3 | 22.3 | 23.1 | — | 78.7 | | Taxes, licenses and fees | 10.8 | 2.2 | 3.0 | 0.3 | 16.3 | | Deferred policy acquisition costs | (48.6) | (12.8) | (2.9) | — | (64.3) | | Deferred policy acquisition cost amortization | 51.1 | 12.2 | 1.0 | — | 64.3 | | Interest expense | — | — | — | 19.1 | 19.1 | | Total segment expenses | $356.0 | $243.1 | $128.3 | $25.8 | $753.2 | | Pretax profit (loss) | $81.6 | $32.0 | $30.5 | $(22.2) | $121.9 | | Income tax expense | 16.8 | 6.2 | 6.7 | (8.5) | 21.2 | | Segment profit (loss) (Core earnings) | 64.8 | 25.8 | 23.8 | (13.7) | 100.7 | | Net investment losses (after-tax) | — | — | — | (1.8) | (1.8) | | Non-core income adjustments (after-tax)(1) | — | 1.4 | (5.4) | (12.1) | (16.1) | | Net income | $64.8 | $27.2 | $18.4 | $(27.6) | $82.8 | *-Corporate & Other is net of intersegment eliminations. Horace Mann Educators Corporation 36 Second Quarter 2026 Form 10-Q ### NOTE 7 - Segment Information (continued) Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the three months ended June 30, 2025, is as follows: | Line item | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | | --- | --- | --- | --- | --- | --- | | ($ in millions) | | | | | | | Net premiums and contract charges earned | $197.3 | $39.6 | $65.7 | — | $302.6 | | Net investment income(1) | 14.9 | 97.2 | 10.6 | (1.6) | 121.1 | | Other segment income | 0.7 | 4.9 | (1.9) | 0.5 | 4.2 | | Total segment revenues | $212.9 | $141.7 | $74.4 | $(1.1) | $427.9 | | Benefits and claims expenses (excluding catastrophe losses) | $89.6 | $25.2 | $22.9 | — | $137.7 | | Catastrophe losses | 29.7 | — | — | — | 29.7 | | Loss adjustment expenses | 17.1 | — | — | — | 17.1 | | Interest credited | — | 51.5 | 1.2 | — | 52.7 | | Operating & admin expenses | 33.4 | 24.0 | 21.1 | 3.7 | 82.2 | | Commissions expense | 16.5 | 9.8 | 11.2 | — | 37.5 | | Taxes, licenses and fees | 6.1 | 1.4 | 1.7 | 0.1 | 9.3 | | Deferred policy acquisition costs | (24.7) | (6.1) | (1.2) | — | (32.0) | | Deferred policy acquisition cost amortization | 23.9 | 5.7 | 0.4 | — | 29.9 | | Interest expense | — | — | — | 8.6 | 8.6 | | Total segment expenses | $191.6 | $111.5 | $57.3 | $12.4 | $372.8 | | Pretax profit (loss) | $21.3 | $30.2 | $17.1 | $(13.5) | $55.1 | | Income tax expense | 4.8 | 5.6 | 3.7 | (3.2) | 10.9 | | Segment profit (loss) (Core earnings) | 16.5 | 24.6 | 13.4 | (10.3) | 44.2 | | Net investment losses (after-tax) | — | — | — | (4.7) | (4.7) | | Non-core income adjustments (after-tax) | — | (4.6) | (5.5) | — | (10.1) | | Net income | $16.5 | $20.0 | $7.9 | $(15.0) | $29.4 | *-Corporate & Other is net of intersegment eliminations. (1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2026 Form 10-Q. Horace Mann Educators Corporation 37 Second Quarter 2026 Form 10-Q ### NOTE 7 - Segment Information (continued) Disaggregated financial information for these segments, as regularly provided to the CODM as of and for the six months ended June 30, 2025, is as follows: | Line item | Property & Casualty | Life & Retirement | Supplemental & Group Benefits | Corporate & Other* | Totals | | --- | --- | --- | --- | --- | --- | | ($ in millions) | | | | | | | Net premiums and contract charges earned | $390.0 | $78.1 | $132.8 | — | $600.9 | | Net investment income(1) | 26.6 | 186.2 | 20.0 | 4.1 | 236.9 | | Other segment income | 2.0 | 9.7 | (3.0) | 1.0 | 9.7 | | Total segment revenues | $418.6 | $274.0 | $149.8 | $5.1 | $847.5 | | Benefits and claims expenses (excluding catastrophe losses) | $175.3 | $61.8 | $49.8 | — | $286.9 | | Catastrophe losses | 46.1 | — | — | — | 46.1 | | Loss adjustment expenses | 33.4 | — | — | — | 33.4 | | Interest credited | — | 103.1 | 2.4 | — | 105.5 | | Operating & admin expenses | 66.8 | 47.9 | 38.5 | 6.0 | 159.2 | | Commissions expense | 33.4 | 19.6 | 22.5 | — | 75.5 | | Taxes, licenses and fees | 11.0 | 2.3 | 3.1 | 0.3 | 16.7 | | Deferred policy acquisition costs | (49.0) | (12.2) | (2.4) | — | (63.6) | | Deferred policy acquisition cost amortization | 46.9 | 11.7 | 0.9 | — | 59.5 | | Interest expense | — | — | — | 17.5 | 17.5 | | Total segment expenses | $363.9 | $234.1 | $114.8 | $23.8 | $736.6 | | Pretax profit (loss) | $54.7 | $39.9 | $35.0 | $(18.7) | $110.9 | | Income tax expense | 11.4 | 7.3 | 7.6 | (4.4) | 21.9 | | Segment profit (loss) (Core earnings) | 43.3 | 32.5 | 27.4 | (14.3) | 89.0 | | Net investment losses (after-tax) | — | — | — | (7.3) | (7.3) | | Non-core income adjustment (after-tax) | — | (5.7) | (8.3) | — | (14.0) | | Net income | $43.3 | $26.8 | $19.1 | $(21.6) | $67.6 | *-Corporate & Other is net of intersegment eliminations. (1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2026 Form 10-Q. | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Assets | | | | Property & Casualty | $1,415.5 | $1,372.1 | | Life & Retirement | 12,600.1 | 12,204.5 | | Supplemental & Group Benefits | 1,330.6 | 1,401.7 | | Corporate & Other | 297.8 | 308.8 | | Intersegment eliminations | (39.6) | (20.5) | | Total | $15,604.4 | $15,266.6 | Horace Mann Educators Corporation 38 Second Quarter 2026 Form 10-Q ### NOTE 8 - Accumulated Other Comprehensive Income (Loss) AOCI represents the accumulated change in shareholders’ equity from transactions and other events and circumstances from non-shareholder sources. For the Company, AOCI includes the after tax change in net unrealized investment gains (losses) on fixed maturity securities, the after tax change in net reserve remeasurements attributable to discount rates and the after tax change in net funded status of benefit plans for the periods as shown in the Consolidated Statements of Changes in Shareholders’ Equity. The following table reconciles these components. | ($ in millions) | Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities(1) | Net Reserve Remeasurements Attributable to Discount Rates(1) | Net Funded Status of Benefit Plans(1) | Total(1) | | --- | --- | --- | --- | --- | | Beginning balance, April 1, 2026 | $(288.8) | $116.1 | $(2.5) | $(175.2) | | Other comprehensive income (loss) before reclassifications | 6.8 | (6.1) | — | 0.7 | | Amounts reclassified from AOCI(2) | 0.1 | — | — | 0.1 | | Net current period other comprehensive income (loss) | 6.9 | (6.1) | — | 0.8 | | Ending balance, June 30, 2026 | $(281.9) | $110.0 | $(2.5) | $(174.4) | | Beginning balance, April 1, 2025 | $(314.5) | $99.1 | $(7.0) | $(222.4) | | Other comprehensive income (loss) before reclassifications | 1.4 | 0.7 | — | 2.1 | | Amounts reclassified from AOCI(3) | 3.2 | — | — | 3.2 | | Net current period other comprehensive income (loss) | 4.6 | 0.7 | — | 5.3 | | Ending balance, June 30, 2025 | $(309.9) | $99.8 | $(7.0) | $(217.1) | | Beginning balance, January 1, 2026 | $(245.5) | $93.4 | $(2.5) | $(154.6) | | Other comprehensive income (loss) before reclassifications | (36.1) | 16.6 | — | (19.5) | | Amounts reclassified from AOCI(2) | (0.3) | — | — | (0.3) | | Net current period other comprehensive income (loss) | (36.4) | 16.6 | — | (19.8) | | Ending balance, June 30, 2026 | $(281.9) | $110.0 | $(2.5) | $(174.4) | | Beginning balance, January 1, 2025 | $(357.4) | $110.9 | $(7.0) | $(253.5) | | Other comprehensive income (loss) before reclassifications | 44.4 | (11.1) | — | 33.3 | | Amounts reclassified from AOCI(2) | 3.1 | — | — | 3.1 | | Net current period other comprehensive income (loss) | 47.5 | (11.1) | — | 36.4 | | Ending balance, June 30, 2025 | $(309.9) | $99.8 | $(7.0) | $(217.1) | (1) All amounts are net of tax. (2) The pretax amounts reclassified from AOCI, $(0.1) million and $0.4 million, are included in Net investment gains (losses) and the related income tax benefits, $0.0 million and $0.1 million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2026, respectively. (3) The pretax amounts reclassified from AOCI,$(4.1) million and $(3.9) million, are included in Net investment gains (losses) and the related income tax benefits, $(0.9) million and $(0.8) million, are included in income tax expense in the Consolidated Statements of Operations for the three and six months ended June 30, 2025, respectively. Comparative information for elements that are not required to be reclassified in their entirety to net income (loss) in the same reporting period is disclosed in Note 2. Horace Mann Educators Corporation 39 Second Quarter 2026 Form 10-Q ### NOTE 9 - Supplemental Consolidated Cash and Cash Flow Information | ($ in millions) | June 30, 2026 | December 31, 2025 | | --- | --- | --- | | Cash | $44.6 | $26.2 | | Restricted cash | 1.6 | 1.3 | | Total cash and restricted cash reported in the Consolidated Statement of Cash Flows | $46.2 | $27.5 | | ($ in millions) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | | Cash paid for: | | | | Interest | $18.4 | $16.9 | | Income taxes | 38.1 | 21.5 | Non-cash activities were not material for the three and six months ended June 30, 2026 and 2025, respectively. ### NOTE 10 - Contingencies and Commitments #### Lawsuits and Legal Proceedings Companies in the insurance industry have been subject to substantial litigation resulting from claims, disputes and other matters. For instance, they have faced expensive claims, including class action lawsuits, alleging, among other things, improper sales practices and improper claims settlement procedures. Negotiated settlements of certain such actions have had a material adverse effect on many insurance companies. At the time of issuance of this Interim Report on Form 10-Q, the Company does not have pending litigation from which there is a reasonable possibility of material loss. #### Investment Commitments The Company has outstanding commitments to fund investments primarily in limited partnership interests. Such unfunded commitments were $360.5 million and $380.5 million as of June 30, 2026 and December 31, 2025, respectively. ### NOTE 11 - Subsequent Events On July 21, 2026 the Company announced that it entered into a Membership Interest Purchase Agreement, with Medical Mutual of Ohio (MMO), pursuant to which the Company will acquire all of the equity interests of Employee Services LLC, a New York limited liability company (ESI). Pursuant to the Membership Interest Purchase Agreement and subject to the terms and conditions set forth in the Membership Interest Purchase Agreement, the Company will acquire all of the equity interests of ESI for approximately $115 million. The purchase price will be funded with cash on hand or borrowings under the Company’s existing credit facility. The Agreement and the consummation of the transactions contemplated therein have been approved by the Company’s Board of Directors. The closing of the ESI Acquisition is expected to occur in the fourth quarter of 2026, subject to the satisfaction or waiver of applicable closing conditions. Also on July 21, 2026, the Company announced that it entered into a Master Transaction Agreement, with MMO and Medical Mutual Life Insurance Company (MML), pursuant to which (i) the Company agreed to acquire all of the issued and outstanding shares of the common stock of Reserve National Insurance Company, an insurance company organized under the laws of the State of Illinois (RNIC), and (ii) MML agreed to reinsure to an affiliate of the Company the group life and disability insurance contracts (such reinsurance, the Reinsurance Transaction and together with the Stock Purchase, the Acquisition). Subject to the terms and conditions of the Master Transaction Agreement, the Company will acquire all of the outstanding stock of RNIC for a purchase price of approximately $125 million, and the Company’s applicable affiliate will pay MML a ceding commission of approximately $7.4 million in connection with the Reinsurance Transaction. With respect to the purchase of RNIC, the net purchase price includes approximately $10 million of excess statutory capital expected to remain in RNIC at closing. The purchase price and ceding commission will Horace Mann Educators Corporation 40 Second Quarter 2026 Form 10-Q ### NOTE 11 - Subsequent Events (continued) be funded with cash on hand and borrowings under the Company’s existing credit facility. The existing Medicare supplement insurance policies of RNIC will be excluded from the Acquisition, and prior to the closing of the Acquisition, will be reinsured by RNIC to MMO or otherwise transferred out of RNIC. The Master Transaction Agreement and the consummation of the transactions contemplated therein have been approved by the Company’s Board of Directors. The closing of the Acquisition is expected to occur in the first quarter of 2027, subject to the satisfaction or waiver of applicable closing conditions as well as approval by certain regulators. ## Item 2. Management’s Discussion and Analysis of Financial Condition ITEM 2. I Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) | Line item | Page | | --- | --- | | Introduction | 41 | | Corporate Strategy | 42 | | Consolidated Financial Highlights | 42 | | Consolidated Results of Operations | 43 | | Outlook for 2026 | 45 | | Application of Critical Accounting Estimates | 46 | | Results of Operations by Segment | 47 | | Property & Casualty | 47 | | Life & Retirement | 50 | | Supplemental & Group Benefits | 52 | | Corporate & Other | 54 | | Investment Results | 54 | | Liquidity and Capital Resources | 57 | ### Introduction The purpose of this MD&A is to provide an understanding of our consolidated results of operations and financial condition. This MD&A should be read in conjunction with the Consolidated Financial Statements and Notes thereto contained in Part I - Item 1 of this Quarterly Report on Form 10-Q. Measures within this MD&A that are not based on accounting principles generally accepted in the United States of America (non-GAAP) are marked with an asterisk (*) the first time they are presented within this Part I - Item 2. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 to this Quarterly Report on Form 10-Q and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in the Appendix to the Company's Second Quarter 2026 Investor Supplement. Increases or decreases in this MD&A that are not meaningful are marked "N.M.". Statements made in this Quarterly Report on Form 10-Q that are not historical in nature are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to known and unknown risks, uncertainties and other factors. Horace Mann Educators Corporation (referred to in this Quarterly Report on Form 10-Q as "we", "our", "us", the "Company", "Horace Mann" or "HMEC") is an insurance holding company. We are not under any obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is important to note that our actual results could differ materially from those projected in forward-looking statements due to a number of risks and uncertainties inherent in our business. Also, see Part I - Items 1 and 1A in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding risks and uncertainties. Horace Mann Educators Corporation 41 Second Quarter 2026 Form 10-Q ### Corporate Strategy Our vision is to be the company of choice to provide insurance and financial solutions for all educators and others who serve their communities, whether they engage with Horace Mann directly or through their district/employer. We believe the unique value of Horace Mann is providing solutions tailored for educators at each stage of their lives, empowering them to achieve lifelong financial success. Our motivation stems from our gratitude for educators: They are looking after our children's futures, and we believe they deserve someone to look after theirs. Our commitment to having a positive impact on our customers' lives extends to all our corporate stakeholders, including employees, agents, investors and the communities where we live and work. We conduct and manage our business in four reporting segments. The three reporting segments representing our major lines of business are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). We do not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those segments, but classify those items in the fourth reporting segment, Corporate & Other. In addition to ongoing transactions such as corporate debt service, net investment gains (losses) and certain public company expenses, such items also have included corporate debt retirement costs, when applicable. See Part I - Item 1, Note 7 of the Consolidated Financial Statements in this Quarterly Report on Form 10-Q for more information. ### Consolidated Financial Highlights (All comparisons vs. same periods in 2025, unless noted otherwise) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | 2026-2025 | | Six Months EndedJune 30, | | | | 2026-2025 | | | | 2026 | 2025 | % Change | | 2026 | | 2025 | | % Change | | | Total revenues | $443.5 | $411.7 | 7.7% | % | $ | $872.8 | $ | $828.1 | 5.4% | % | | Net income | 41.6 | 29.4 | 41.5% | % | 82.8 | | 67.6 | | 22.5% | % | | Net Investment gains (losses), after tax | (0.1) | (4.7) | N.M. | | (1.8) | | (7.3) | | N.M. | | | Per diluted share: | | | | | | | | | | | | Net income | 1.01 | 0.71 | 42.3% | % | 2.01 | | 1.63 | | 23.3% | % | | Net investment gains (losses), after tax | — | (0.11) | N.M. | | (0.04) | | (0.17) | | N.M. | | | Book value per share | | | | | $ | $37.11 | $ | $33.31 | 11.4% | % | | Net income return on equity - last twelve months | 12.2% | 10.8% | 1.4 | pts | 12.2 | | 10.8 | | 1.4 | pts | | Net income return on equity - annualized | 11.2% | 8.7% | 2.5 | pts | 11.1 | | 10.2 | | 0.9 | pts | For the three and six months ended June 30, 2026, net income increased $12.2 million and $15.2 million, respectively, primarily due to improved Property & Casualty segment results reflecting the impact of improved underlying results and lower catastrophe losses. Horace Mann Educators Corporation 42 Second Quarter 2026 Form 10-Q ### Consolidated Results of Operations (All comparisons vs. same periods in 2025, unless noted otherwise) | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | | | 2026-2025 | Six Months EndedJune 30, | | | | 2026-2025 | | | 2026 | | 2025 | | % Change | 2026 | | 2025 | | % Change | | Net premiums and contract charges earned | $ | $316.9 | $ | $302.6 | 4.7% | $ | $629.9 | $ | $600.9 | 4.8% | | Net investment income | 120.5 | | 110.8 | | 8.8% | 231.2 | | 226.7 | | 2.0% | | Net investment gains (losses) | (0.1) | | (5.9) | | N.M. | (2.3) | | (9.2) | | N.M. | | Other income | 6.2 | | 4.2 | | 47.6% | 14.0 | | 9.7 | | 44.3% | | Total revenues | 443.5 | | 411.7 | | 7.7% | 872.8 | | 828.1 | | 5.4% | | Benefits, claims and settlement expenses | 186.3 | | 183.5 | | 1.5% | 362.7 | | 366.7 | | -1.1% | | Interest credited | 54.6 | | 52.7 | | 3.6% | 108.4 | | 105.5 | | 2.7% | | Operating expenses | 108.5 | | 96.9 | | 12.0% | 212.0 | | 187.7 | | 12.9% | | DAC amortization expense | 32.0 | | 29.9 | | 7.0% | 64.3 | | 59.5 | | 8.1% | | Intangible asset amortization expense | 3.5 | | 3.6 | | -2.8% | 7.1 | | 7.2 | | -1.4% | | Interest expense | 9.6 | | 8.6 | | 11.6% | 19.1 | | 17.5 | | 9.1% | | Total benefits, losses and expenses | 394.5 | | 375.2 | | 5.1% | 773.6 | | 744.1 | | 4.0% | | Income before income taxes | 49.0 | | 36.5 | | 34.2% | 99.2 | | 84.0 | | 18.1% | | Income tax expense | 7.4 | | 7.1 | | 4.2% | 16.4 | | 16.4 | | — | | Net income | $ | $41.6 | $ | $29.4 | 41.5% | $ | $82.8 | $ | $67.6 | 22.5% | Net Premiums and Contract Charges Earned For the three and six months ended June 30, 2026, net premiums and contract charges earned increased $14.3 million and $29.0 million as the Property & Casualty segment had higher sales* in the Property business lines and the Company experienced strong growth in our Supplemental and Group Benefits segment. Net Investment Income For the three and six months ended June 30, 2026, total net investment income increased $9.7 million and $4.5 million. The increase for the quarter is primarily due to continued strong returns from our fixed income portfolio. The annualized investment yield on the portfolio excluding limited partnership interests* was as follows: | Line item | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Investment yield, excluding limited partnership interests, pretax - annualized*(1) | 4.7% | 4.3% | 4.6% | 4.5% | | Investment yield, excluding limited partnership interests, after tax - annualized* | 3.7% | 3.5% | 3.7% | 3.6% | During the three and six months ended June 30, 2026, we continued to identify and purchase investments with attractive risk-adjusted yields relative to market conditions without venturing into asset classes or individual securities that would be inconsistent with our overall investment guidelines. The Company continues to deploy capital in accordance with its strategic asset allocation framework, with the objective of maintaining diversification while balancing risk and return. Investments are allocated across public and private fixed income strategies, commercial mortgage loan funds, and limited partnership interests based on relative value considerations, portfolio capacity, and income objectives. Horace Mann Educators Corporation 43 Second Quarter 2026 Form 10-Q Net Investment Gains (Losses) For the three and six months ended June 30, 2026, total net investment losses decreased by $5.8 million and $6.9 million, respectively. The breakdown of net investment gains (losses) by transaction type were as follows: | ($ in millions) | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | | --- | --- | --- | --- | --- | | Credit loss and intent-to-sell impairments | $(0.1) | $(3.1) | $(0.1) | $(3.1) | | Sales and other, net | 4.2 | 2.0 | 6.2 | 4.1 | | Change in fair value - equity securities | (0.3) | (0.7) | (1.6) | (1.9) | | Change in fair value and gains (losses) realized on settlements - derivatives | (3.9) | (4.1) | (6.8) | (8.3) | | Net investment gains (losses) | $(0.1) | $(5.9) | $(2.3) | $(9.2) | From time to time, we may sell fixed maturity securities subsequent to the reporting date that were considered temporarily impaired at such reporting date. Such sales are due to issuer-specific events occurring subsequent to the reporting date that result in a change in our intent to sell a fixed maturity security. Other Income For the three and six months ended June 30, 2026, other income increased $2.0 million and $4.3 million, respectively. Benefits, Claims and Settlement Expenses For the three and six months ended June 30, 2026, benefits, claims and settlement expenses increased $2.8 million and decreased $4.0 million, primarily due to the Property & Casualty segment having lower catastrophe and underlying losses while the Supplemental and Group Benefits segment benefits increased due to higher utilization. Interest Credited For the three and six months ended June 30, 2026, interest credited increased $1.9 million and $2.9 million, respectively. Under the deposit method of accounting, the interest credited on the reinsured annuity block continues to be reported. The average deferred annuity credited rate, excluding the reinsured annuity block, was 3.4% and 3.3% as of June 30, 2026 and June 30, 2025, respectively. Operating Expenses For the three and six months ended June 30, 2026, operating expenses increased $11.6 million and $24.3 million, respectively, reflecting higher expenses related to our Early Retirement Offering and acquisition expenses in the Corporate & Other segment. Deferred Policy Acquisition Costs (DAC) Amortization Expense For the three and six months ended June 30, 2026, DAC amortization expense increased $2.1 million and $4.8 million, primarily due to premium increases in the Property & Casualty segment driving higher commission and underwriting expenses which increase DAC asset levels. Intangible Asset Amortization Expense For the three and six months ended June 30, 2026, intangible asset amortization expense was flat with prior year. Interest Expense For the three and six months ended June 30, 2026, interest expense increased $1.0 million and $1.6 million, respectively, due to an increase in the level of debt associated with the issuance of the 2025 Senior Notes that were used to repay the 2015 Senior Notes. Horace Mann Educators Corporation 44 Second Quarter 2026 Form 10-Q Income Tax Expense The effective income tax rate on our pretax income, including net investment gains (losses), was 16.5% and 19.5% for the six months ended June 30, 2026 and 2025, respectively. Income from investments in tax-advantaged securities reduced the effective income tax rates by 1.5 and 2.4 percentage points for the six months ended June 30, 2026 and 2025, respectively. The effective tax rate was further reduced by 4.0 and 0.5 percentage points for the six months ended June 30, 2026 and 2025, respectively, as a result of purchases of transferable tax credits to be utilized on the federal income tax returns for the 2026 and 2025 tax years. We record liabilities for uncertain tax filing positions where it is more likely than not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based on changes in facts or law. We have no unrecorded liabilities related to uncertain tax positions. As of June 30, 2026, our federal income tax returns for years prior to 2022 are no longer subject to examination by the Internal Revenue Service. We do not expect any assessments for tax years that remain subject to examination to have a material effect on our financial position or results of operations. ### Outlook for 2026 The following discussion provides forward-looking information for our results of operations and capital position. ### Consolidated Results At the time of issuance of this Quarterly Report on Form 10-Q, we estimate that 2026 full year core income will be within a range of $4.60 to $4.90 per diluted share, generating a core return on equity* of over 12%+. These results anticipate the following: - Property & Casualty segment target profitability of low-mid 90s Combined Ratio with ~$75 million of catastrophe losses - Life & Retirement segment long-term target net interest spread between 220 and 230 bps and mortality in line with actuarial assumptions - Supplemental & Group Benefits segment target blended benefits ratio of ~42% - Net investment income between $465 million and $475 million pre-tax, or $365-$375 million excluding the accreted investment income on the deposit asset on reinsurance in the Life & Retirement segment - Approximately $35 million to $40 million in corporate interest expense and other items included in results for the Corporate & Other segment As described in Application of Critical Accounting Estimates, certain of our significant accounting measurements require the use of estimates and assumptions. As additional information becomes available, adjustments may be required. Those adjustments are charged or credited to net income for the period in which the adjustments are made and may impact actual results compared to our estimates above. Additionally, see forward-looking information in this Quarterly Report on Form 10-Q as well as Part I - Items 1 and 1A in our Annual Report on Form 10-K for the year ended December 31, 2025 concerning other important factors that could impact actual results. Our projections do not include a forecast of net investment gains (losses), which can vary substantially from one period to another and may have a significant impact on net income. Core income and core return on equity are non-GAAP financial measures. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most directly comparable GAAP measures without unreasonable effort because certain items, including net investment gains (losses), changes in market risk benefits, and other market-driven items, are inherently uncertain and difficult to predict. These items could be material to our results in accordance with U.S. GAAP. Horace Mann Educators Corporation 45 Second Quarter 2026 Form 10-Q ### Application of Critical Accounting Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions based on information available at the time the consolidated financial statements are prepared. These estimates and assumptions affect the reported amounts of our consolidated assets, liabilities, shareholders' equity and net income. Certain accounting estimates are particularly sensitive because of their significance to our consolidated financial statements and because of the possibility that subsequent events and available information may differ markedly from management's judgments at the time the consolidated financial statements were prepared. We have discussed with the Audit Committee the quality, not just the acceptability, of our accounting principles as applied in our financial reporting. The discussions generally included such matters as the consistency of our accounting policies and their application, and the clarity and completeness of our consolidated financial statements, which include related disclosures. Information regarding our accounting policies pertaining to these topics is located in the Notes to the Consolidated Financial Statements contained in Part II - Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2025. In addition, discussion of accounting policies, including certain sensitivity information, was presented in Management's Discussion and Analysis of Financial Condition and Results of Operations - Application of Critical Accounting Estimates in that Form 10-K within which we identified the following accounting estimates as critical in that they involve a higher degree of judgment and are subject to a significant degree of variability: - Valuation of hard-to-value fixed maturity securities - Evaluation of credit loss impairments for fixed maturity securities - Valuation of future policy benefit reserves - Valuation of liabilities for property and casualty unpaid claims and claim expense reserves Compared to December 31, 2025, as of June 30, 2026, there were no material changes to accounting policies for areas most subject to significant management judgments identified above. Horace Mann Educators Corporation 46 Second Quarter 2026 Form 10-Q ### Results of Operations by Segment Consolidated financial results reflect the results of the Property & Casualty, Life & Retirement, and Supplemental & Group Benefits reporting segments, as well as the Corporate & Other reporting segment. These segments are defined based on financial information management uses to evaluate performance and to determine the allocation of resources. The following sections provide analysis and discussion of the results of operations for each of the reporting segments as well as investment results. ### Property & Casualty The Property & Casualty segment primarily markets private passenger auto insurance and residential home insurance. Horace Mann offers standard auto coverages, including liability, collision and comprehensive. Property coverage includes both homeowners and renters policies. For both auto and property coverage, Horace Mann offers educators a discounted rate and the Educator Advantage® package of features. The Property & Casualty segment represented 51% of total revenues in 2025. (All comparisons vs. same periods in 2025, unless noted otherwise) For the three and six months ended June 30, 2026, net income reflected the following factors: - Increases in average written premium per policy - Lower underlying loss ratio* - Lower Catastrophe losses - Lower net investment income for the quarter driven by limited partnership portfolio Horace Mann Educators Corporation 47 Second Quarter 2026 Form 10-Q The following table provides certain financial information for Property & Casualty for the periods indicated. | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions, unless otherwise indicated) | Three Months EndedJune 30, | | | | 2026-2025 | | Six Months EndedJune 30, | | | | 2026-2025 | | | | 2026 | | 2025 | | % Change | | 2026 | | 2025 | | % Change | | | Underwriting Results | | | | | | | | | | | | | | Net premiums written* | $ | $211.6 | $ | $211.4 | 0.1% | % | $ | $405.8 | $ | $396.7 | 2.3% | % | | Net premiums earned | 205.3 | | 197.3 | | 4.1% | % | 408.5 | | 390.0 | | 4.7% | % | | Other income | 0.7 | | 0.7 | | — | % | 2.7 | | 2.0 | | 35.0% | % | | Losses and loss adjustment expenses | | | | | | | | | | | | | | Current accident year before catastrophe losses | 109.8 | | 112.3 | | -2.2% | % | 217.6 | | 219.5 | | -0.9% | % | | Current accident year catastrophe losses | 24.2 | | 29.7 | | -18.5% | % | 35.5 | | 46.1 | | -23.0% | % | | Prior years' reserve development(1) | (6.6) | | (5.5) | | 20.0% | % | (11.6) | | (10.8) | | 7.4% | % | | Total losses and loss adjustment expenses | 127.4 | | 136.5 | | -6.7% | % | 241.5 | | 254.8 | | -5.2% | % | | Operating expenses, including DAC amortization expense | 57.4 | | 55.1 | | 4.2% | % | 114.5 | | 109.1 | | 4.9% | % | | Underwriting gain (loss) | 21.2 | | 6.4 | | 231.3% | % | 55.2 | | 28.1 | | 96.4% | % | | Net investment income | 11.8 | | 14.9 | | -20.8% | % | 26.4 | | 26.6 | | -0.8% | % | | Income (loss) before income taxes | 33.0 | | 21.3 | | 54.9% | % | 81.6 | | 54.7 | | 49.2% | % | | Income tax expense (benefit) | 7.2 | | 4.8 | | 50.0% | % | 16.8 | | 11.4 | | 47.4% | % | | Net income | 25.8 | | 16.5 | | 56.4% | % | 64.8 | | 43.3 | | 49.7% | % | | Core earnings* | 25.8 | | 16.5 | | 56.4% | % | 64.8 | | 43.3 | | 49.7% | % | | Operating Statistics: | | | | | | | | | | | | | | Auto | | | | | | | | | | | | | | Net premiums written* | $ | $121.8 | $ | $126.7 | -3.9% | % | $ | $243.1 | $ | $248.3 | -2.1% | % | | Loss and loss adjustment expense ratio | 65.0 | | 70.7 | | -5.7 | pts | 63.6 | | 68.7 | | -5.1 | pts | | Expense ratio | 28.1 | | 27.4 | | 0.7 | pts | 27.5 | | 27.4 | | 0.1 | pts | | Combined ratio: | 93.1 | | 98.1 | | -5.0 | pts | 91.1 | | 96.1 | | -5.0 | pts | | Prior years' reserve development(1) | -1.6 | | -1.2 | | -0.4 | pts | -2.0 | | -1.6 | | -0.4 | pts | | Catastrophe losses | 1.5 | | 3.2 | | -1.7 | pts | 1.0 | | 2.4 | | -1.4 | pts | | Underlying combined ratio* | 93.2 | | 96.1 | | -2.9 | pts | 92.1 | | 95.3 | | -3.2 | pts | | Property and other | | | | | | | | | | | | | | Net premiums written* | $ | $89.8 | $ | $84.7 | 6.0% | % | $ | $162.7 | $ | $148.4 | 9.6% | % | | Loss and loss adjustment expense ratio | 57.6 | | 66.6 | | -9.0 | pts | 52.4 | | 59.7 | | -7.3 | pts | | Expense ratio | 27.0 | | 28.0 | | -1.0 | pts | 27.1 | | 27.5 | | -0.4 | pts | | Combined ratio: | 84.6 | | 94.6 | | -10.0 | pts | 79.5 | | 87.2 | | -7.7 | pts | | Prior years' reserve development(1) | -5.6 | | -5.4 | | -0.2 | pts | -4.0 | | -4.8 | | 0.8 | pts | | Catastrophe losses | 27.2 | | 34.6 | | -7.4 | pts | 20.2 | | 27.6 | | -7.4 | pts | | Underlying combined ratio* | 63.0 | | 65.4 | | -2.4 | pts | 63.3 | | 64.4 | | -1.1 | pts | | Household retention-LTM | | | | | | | | | | | | | | Auto | | | | | | | 83.9 | | 83.8 | | 0.1 | pts | | Property (excludes Other Products) | | | | | | | 88.4 | | 89.1 | | -0.7 | pts | (1) (Favorable) unfavorable. Horace Mann Educators Corporation 48 Second Quarter 2026 Form 10-Q The Property & Casualty segment three and six month net income of $25.8 million and $64.8 million, as well as the three month and six month combined ratio of 89.6% and 86.5%, reflected improved current year underlying results and catastrophe losses below prior year. The current quarter reflects an increase in net premiums written* of 0.1%, with average written premiums* rising for both property and auto. Sales* were lower for the quarter, down 3.6% from the prior year, and household retention remains in line with expectations. The three and six month loss ratios decreased 7.1 and 6.2 points from last year reflecting higher average premiums and lower catastrophe losses. In addition, $6.6 million and $11.6 million of net favorable prior years' reserve development for the three and six months reduced the loss ratio 3.2 and 2.8 points, respectively. Catastrophe losses for the quarter were $24.2 million, pretax, contributing 11.8 points to the combined ratio. In total, there were 22 events designated as catastrophes by Property Claims Services (PCS) in this year’s second quarter. The lower catastrophe losses are driven by lower frequency and severity of policyholder claims. In the second quarter of 2025, catastrophe losses were $29.7 million, pretax, contributing 15.0 points to the combined ratio, from 20 PCS events. The year-over-year increase in average written premiums* for auto policies in the second quarter was 2.8%, while retention remained stable. The second quarter auto underlying loss ratio* was 65.1%, improving 3.6 points from the prior year quarter, reflecting the benefit of higher average earned premium. The second quarter reported loss ratio benefited 1.6 points from favorable prior years' reserve development. The year-over-year increase in average written premiums* for property policies was 7.4% in the second quarter, as rate increases and inflation adjustments to coverage values continue to take effect. Policyholder retention remains stable. The second quarter property and other underlying loss ratio* was 36.0%, a 1.4 point decrease from prior year reflecting the increase in average earned premium*. The second quarter reported loss ratio benefited 5.6 points from favorable prior years' reserve development. Horace Mann Educators Corporation 49 Second Quarter 2026 Form 10-Q ### Life & Retirement The Life & Retirement segment markets 403(b) tax-qualified fixed, fixed indexed and variable annuities; the Horace Mann Retirement Advantage® open architecture platform for 403(b)(7) and other defined contribution plans; traditional term and whole life insurance products and indexed universal life (IUL) products. Horace Mann is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net premiums written on a statutory accounting basis. The Life & Retirement segment represented 32% of total revenues in 2025. (All comparisons vs. same periods in 2025, unless noted otherwise) For the three and six months ended June 30, 2026, net income reflected the following factors: - Higher premiums and contract charges earned and other income in Retirement due to higher assets under administration - Annualized quarterly net interest spread on fixed annuities up 35 basis points - Higher benefits in Life were offset by a favorable market risk benefit adjustment in Retirement Horace Mann Educators Corporation 50 Second Quarter 2026 Form 10-Q The following table provides certain information for Life & Retirement for the periods indicated. | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | 2026-2025 | Six Months EndedJune 30, | | | | 2026-2025 | | | | 2026 | 2025 | % Change | 2026 | | 2025 | | % Change | | | Life & Retirement | | | | | | | | | | | Net premiums written and contract deposits* | $142.0 | $141.7 | 0.2% | $ | $276.9 | $ | $282.0 | -1.8% | % | | Revenues | | | | | | | | | | | Net premiums and contract charges earned | 41.0 | 39.6 | 3.5% | 80.4 | | 78.1 | | 2.9% | % | | Net investment income(1) | 96.7 | 90.4 | 7.0% | 183.7 | | 179.5 | | 2.3% | % | | Other income | 5.5 | 4.9 | 12.2% | 11.0 | | 9.7 | | 13.4% | % | | Total revenues | 143.2 | 134.9 | 6.2% | 275.1 | | 267.3 | | 2.9% | % | | Benefits and Expenses | | | | | | | | | | | Benefits and change in reserves | 27.3 | 24.2 | 12.8% | 61.5 | | 62.2 | | -1.1% | % | | Interest credited | 53.2 | 51.5 | 3.3% | 105.6 | | 103.1 | | 2.4% | % | | Operating expenses | 31.2 | 29.1 | 7.2% | 61.9 | | 57.5 | | 7.7% | % | | DAC amortization expense | 6.2 | 5.7 | 8.8% | 12.2 | | 11.7 | | 4.3% | % | | Intangible asset amortization expense | — | — | N.M. | 0.1 | | 0.1 | | — | % | | Total benefits and expenses | 117.9 | 110.5 | 6.7% | 241.3 | | 234.6 | | 2.9% | % | | Income before income taxes | 25.3 | 24.4 | 3.7% | 33.8 | | 32.7 | | 3.4% | % | | Income tax expense | 5.2 | 4.4 | 18.2% | 6.6 | | 5.9 | | 11.9% | % | | Net income | 20.1 | 20.0 | 0.5% | 27.2 | | 26.8 | | 1.5% | % | | Core earnings* | 16.6 | 24.6 | -32.5% | 25.8 | | 32.5 | | -20.6% | % | | Life policies in force (in thousands) | | | | 160 | | 161 | | -0.6% | % | | Life insurance in force | | | | $ | $21,717 | $ | $21,241 | 2.2% | % | | Life persistency - LTM | | | | 95.7 | | 96.0 | | -0.3 | pts | | Annuity contracts in force (in thousands) | | | | 210 | | 215 | | -2.3% | % | | Horace Mann Retirement Advantage® contracts in force (in thousands) | | | | 25 | | 22 | | 13.6% | % | | Cash value persistency - LTM | | | | 91.9 | | 91.7 | | 0.2 | pts | (1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2026 Form 10-Q. Life & Retirement segment net income for the three and six months ended June 30, 2026, was $20.1 million and $27.2 million, increases of 0.5% and 1.5%, respectively. Life benefits increased $7.5 million and $3.6 million for the three and six months periods related to the LDTI reserve change. Retirement benefits decreased $4.4 million and $4.3 million for the three and six months, respectively due to a favorable market risk benefit adjustment primarily driven by favorable market performance. The quarterly net spread increased 35 basis points primarily due to higher returns in the fixed-income portfolios. Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $6.7 million ($5.3 million after tax) in the second quarter of 2025, net investment income decreased $0.4 million and $2.5 million for the three and six months ended June 30, 2026. For the Retirement business, net annuity contract deposits were down 2.4% for the quarter at $107.6 million primarily reflecting product mix and market conditions. Educators continue to begin their relationship with Horace Mann through 403(b) retirement savings products, which provide encouraging cross-sell opportunities. Average persistency rose from the prior period to 91.9%. Horace Mann currently has $6.2 billion in retained annuity assets under management, including $2.2 billion of fixed annuities, $3.6 billion of variable annuities and $0.4 billion of fixed indexed annuities. Assets under administration, which includes Horace Mann Retirement Advantage® and other advisory and recordkeeping assets, were up due to the effect of equity market performance on assets. Horace Mann Educators Corporation 51 Second Quarter 2026 Form 10-Q Life annualized sales* were $3.0 million for the quarter. Persistency remains strong. Life insurance in force rose to $21.7 billion at quarter-end. As a general guideline, based on our existing policies and investment portfolio, the impact from a 100 basis point decline in the average reinvestment rate would reduce Life & Retirement net investment income by approximately $2.1 million in year one, reducing the annualized net interest spread on fixed annuities by approximately 8 basis points, compared to the current period annualized net interest spread on fixed annuities. We could also consider potential changes in rates credited to policyholders, tempered by any restrictions on the ability to adjust policyholder rates due to guaranteed minimum crediting rates. ### Supplemental & Group Benefits The Supplemental & Group Benefits segment markets group solutions for districts and other public employers, as well as individual supplemental products typically distributed through the employer channel. The Supplemental & Group Benefits segment provides group term life, disability and specialty health insurance, along with supplemental products including cancer, heart, hospital, supplemental disability and accident coverages. The Supplemental & Group Benefits segment represented 17% of total revenues in 2025. (All comparisons vs. same periods in 2025, unless noted otherwise) For the three and six months ended June 30, 2026, net income reflected the following factors: - Higher premium earned reflecting investment to grow the book of business - Higher benefits ratio for Individual Supplemental and Group Benefits Horace Mann Educators Corporation 52 Second Quarter 2026 Form 10-Q The following table provides certain information for Supplemental & Group Benefits for the periods indicated. | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | 2026-2025 | | Six Months EndedJune 30, | | 2026-2025 | | | | 2026 | 2025 | % Change | | 2026 | 2025 | % Change | | | Supplemental & Group Benefits | | | | | | | | | | Revenues | | | | | | | | | | Net premiums and contract charges earned | $70.6 | $65.7 | 7.5% | % | $141.0 | $132.8 | 6.2% | % | | Net investment income(1) | 10.4 | 7.1 | 46.5% | % | 19.3 | 16.5 | 17.0% | % | | Other income | (0.9) | (1.9) | 52.6% | % | (1.5) | (3.0) | 50.0% | % | | Total revenues | 80.1 | 70.9 | 13.0% | % | 158.8 | 146.3 | 8.5% | % | | Benefits and Expenses | | | | | | | | | | Benefits, settlement expenses and change in reserves | 33.0 | 24.0 | 37.5% | % | 62.5 | 52.1 | 20.0% | % | | Operating expenses (including DAC amortization expense) | 32.8 | 33.1 | -0.9% | % | 65.8 | 62.6 | 5.1% | % | | Intangible asset amortization expense | 3.5 | 3.6 | -2.8% | % | 7.0 | 7.1 | -1.4% | % | | Total benefits and expenses | 69.3 | 60.7 | 14.2% | % | 135.3 | 121.8 | 11.1% | % | | Income before income taxes | 10.8 | 10.2 | 5.9% | % | 23.5 | 24.5 | -4.1% | % | | Income tax expense | 2.3 | 2.3 | — | % | 5.1 | 5.4 | -5.6% | % | | Net income | 8.5 | 7.9 | 7.6% | % | 18.4 | 19.1 | -3.7% | % | | Core earnings* | 11.2 | 13.4 | -16.4% | % | 23.8 | 27.4 | -13.1% | % | | Benefits ratio | 46.8% | 36.7% | 10.1 | pts | 44.4% | 39.3% | 5.1 | pts | | Operating expense ratio | 40.9% | 46.7% | -5.8 | pts | 41.4% | 42.8% | -1.4 | pts | | Pretax profit margin | 13.5% | 14.4% | -0.9 | pts | 14.8% | 16.7% | -1.9 | pts | | Individual supplemental products benefits ratio | 29.2% | 27.7% | 1.5 | pts | 29.8% | 28.0% | 1.8 | pts | | Individual supplemental premium persistency (rolling beginning 12 months) | 89.2% | 89.9% | -0.7 | pts | 89.2% | 89.9% | -0.7 | pts | | Group benefits products benefits ratio | 62.2% | 44.8% | 17.4 | pts | 57.0% | 49.2% | 7.8 | pts | | Group benefits covered lives (in thousands) | | | | | 911 | 822 | 10.8% | % | (1) In the second quarter of 2025, the Company recorded a reduction in net investment income due to an immaterial out-of-period correction of an error. See additional disclosure contained in Note 1 of the June 30, 2026 Form 10-Q. Supplemental & Group Benefits segment net income for the three and six months ended June 30, 2026, of $8.5 million and $18.4 million, was up $0.6 million and down $0.7 million, respectively. The Individual Supplemental benefits ratio was modestly higher, 1.5 points and 1.8 points for the three and six months ended due to higher utilization consistent with our long-term expectations. The Group Benefits benefits ratio increased 17.4 points and 7.8 points for the three and six months ended driven by strong growth momentum, particular within our Paid Family Medical Leave enhancement. Excluding the reduction in net investment income due to an immaterial out-of-period correction of an error of $3.5 million ($2.8 million after tax) in the second quarter 2025, net investment income decreased $0.2 million and $0.7 million for the three and six months ended June 30, 2026. Total sales* for the three and six months ended June 30, 2026 increased $2.5 million and $11.1 million due to our strategic investments to drive growth. Individual Supplemental products increased $0.3 million and $0.9 million and Group Benefits products increased $2.2 million and $10.2 million. Variability in sales between comparable periods is typical for Group Benefits given the relatively small scale and the longer sales cycle of this business. Persistency remains strong for the segment. Horace Mann Educators Corporation 53 Second Quarter 2026 Form 10-Q ### Corporate & Other (All comparisons vs. same periods in 2025, unless noted otherwise) The following table provides certain financial information for Corporate & Other for the periods indicated. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | 2026-2025 | Six Months EndedJune 30, | | 2026-2025 | | | 2026 | 2025 | % Change | 2026 | 2025 | % Change | | Total revenues | 2.5 | (1.1) | N.M. | 3.6 | 5.1 | -29.4% | | Interest expense | $9.6 | $8.6 | 11.6% | 19.1 | 17.5 | 9.1% | | Other operating expenses | 12.9 | 3.8 | 239.5% | 21.9 | 6.3 | 247.6% | | Net investment losses | (0.1) | (5.9) | N.M. | (2.3) | (9.2) | N.M. | | Loss before income taxes | (20.1) | (19.4) | -3.6% | (39.7) | (27.9) | -42.3% | | Net loss | (12.8) | (15.0) | 14.7% | (27.6) | (21.6) | -27.8% | | Core loss* | (5.4) | (10.3) | 47.6% | (13.7) | (14.3) | 4.2% | For the three and six months ended June 30, 2026, the net results increased $2.2 million and decreased $6.0 million, respectively. The change in revenues is driven by net investment income increasing $3.2 million for the quarter due to higher returns from limited partnerships and decreasing $2.3 million for the year, reflecting lower contributions from limited partnerships compared to a particularly strong prior-year period. Lower net investment losses were due to routine portfolio management activities, including lower impairment losses. Operating expenses increased $9.1 million and $15.6 million for the three and six months ended June 30, 2026, respectively. The increase included $6.7 million and $13.7 million for the three and six months ended June 30, 2026, respectively related to our voluntary Early Retirement Offering. In addition, the segment incurred $2.5 million of acquisition related expenses that impacted both the quarterly and year to date comparisons. ### Investment Results (All comparisons vs. same periods in 2025, unless noted otherwise) Our investment strategy is primarily focused on generating income while balancing principal protection and investment risk. Total net investment income includes net investment income from our managed investment portfolio as well as accreted investment income from the deposit asset on reinsurance related to the company's reinsurance of policy liabilities related to legacy individual annuities written in 2002 or earlier. | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Three Months EndedJune 30, | | 2026-2025 | Six Months EndedJune 30, | | 2026-2025 | | | 2026 | 2025 | % Change | 2026 | 2025 | % Change | | Net investment income - managed investment portfolio | $96.2 | $85.7 | 12.3% | $183.3 | $177.2 | 3.4% | | Investment income - deposit asset on reinsurance | 24.3 | 25.1 | -3.2% | 47.9 | 49.5 | -3.2% | | Total net investment income | 120.5 | 110.8 | 8.8% | 231.2 | 226.7 | 2.0% | | Pretax net investment gains (losses) | (0.1) | (5.9) | -98.3% | (2.3) | (9.2) | N.M. | | Pretax net unrealized investment losses on fixed maturity securities | | | | (358.5) | (394.1) | N.M. | For the three and six months ended June 30, 2026, net investment income from our managed investment portfolio increased $10.5 million and $6.1 million, primarily due to higher returns in the fixed-income portfolios. The investment yield on the portfolio excluding limited partnership interests was 4.6%, with new money yields continuing to exceed portfolio yields in the core fixed maturity securities portfolio. For the three and six months ended June 30, 2026, pretax net investment losses decreased $5.8 million and $6.9 million, primarily due to lower net investment losses from routine portfolio management activities, including lower impairment losses. Pretax net unrealized investment losses on fixed maturity securities as of June 30, 2026 increased $46.4 million, or 14.9%, compared to December 31, 2025, primarily due to an increase of 30 basis points in US Treasury rates. Horace Mann Educators Corporation 54 Second Quarter 2026 Form 10-Q Fixed Maturity and Equity Securities Portfolios The table below presents our fixed maturity and equity securities portfolios by major asset class, including the 10 largest sectors of our corporate bond holdings (based on fair value). | ($ in millions) | June 30, 2026 / Number of Issuers | June 30, 2026 / Fair Value | June 30, 2026 / Amortized Cost, net | June 30, 2026 / Pretax Net Unrealized Loss | | --- | --- | --- | --- | --- | | Fixed maturity securities | | | | | | Corporate bonds | | | | | | Banking & Finance | 166 | $362.8 | $392.9 | $(30.1) | | Utilities | 98 | 185.5 | 202.0 | (16.5) | | HealthCare,Pharmacy | 79 | 140.8 | 160.7 | (19.9) | | Energy | 91 | 139.4 | 151.2 | (11.8) | | Insurance | 55 | 129.5 | 141.8 | (12.3) | | Real Estate | 38 | 88.2 | 93.2 | (5.0) | | Technology | 39 | 85.5 | 93.8 | (8.3) | | Transportation | 41 | 74.4 | 80.7 | (6.3) | | Telecommunications | 36 | 66.6 | 71.0 | (4.4) | | Consumer Products | 53 | 63.1 | 76.8 | (13.7) | | All other corporates(1) | 320 | 618.7 | 675.0 | (56.3) | | Total corporate bonds | 1,016 | 1,954.5 | 2,139.1 | (184.6) | | Mortgage-backed securities | | | | | | U.S. Government and federally sponsored agencies | 247 | 662.2 | 699.0 | (36.8) | | Commercial(2) | 149 | 308.0 | 323.9 | (15.9) | | Other | 129 | 182.6 | 183.4 | (0.8) | | Municipal bonds(3) | 570 | 1,163.5 | 1,222.4 | (58.9) | | Government bonds | | | | | | U.S. | 41 | 313.2 | 371.8 | (58.6) | | Foreign | 3 | 7.9 | 8.6 | (0.7) | | Collateralized loan obligations(4) | 419 | 946.4 | 946.2 | 0.2 | | Asset-backed securities | 137 | 228.7 | 231.1 | (2.4) | | Total fixed maturity securities | 2,711 | $5,767.0 | $6,125.5 | $(358.5) | | Equity securities | | | | | | Non-redeemable preferred stocks | 15 | $39.3 | | | | Common stocks | 4 | 1.0 | | | | Total equity securities | 19 | $40.3 | | | | Total | 2,730 | $5,807.3 | | | (1) The All other corporates category contains 21 additional industry sectors. Natural Gas, Manufacturing, Entertainment, Food and Beverage, and Retail represented $223.7 million of fair value at June 30, 2026, with the remaining 16 sectors each representing less than $29.1 million. (2) At June 30, 2026, 100% were investment grade, with an overall credit rating of AA, and the positions were well diversified by property type, geography and sponsor. (3) Holdings are geographically diversified, 41.2% are tax-exempt and 77.4% are revenue bonds tied to essential services, such as mass transit, water and sewer. The overall credit quality of the municipal bond portfolio was AA- at June 30, 2026. (4) Based on fair value, 99.9% of the collateralized loan obligation securities were rated investment grade based on ratings assigned by a nationally recognized statistical ratings organization (NRSRO - S&P, Moody's, Fitch, DBRS, Egan Jones and Kroll). As of June 30, 2026, our diversified fixed maturity securities portfolio consisted of 4,051 investment positions, issued by 2,711 entities, and totaled approximately $5.8 billion in fair value. This portfolio was 97.6% investment grade, based on fair value, with an average quality rating of A+. Our investment guidelines target single corporate issuer concentrations to 0.5% of invested assets for AAA or AA rated securities, 0.35% of invested assets for A or BBB rated securities, and $5.0 million for non-investment grade securities. Horace Mann Educators Corporation 55 Second Quarter 2026 Form 10-Q Rating of Fixed Maturity Securities and Equity Securities(1) The following table presents the composition and fair value of our fixed maturity and equity securities portfolios by rating category. As of June 30, 2026, 96.0% of these combined portfolios were investment grade, based on fair value, with an overall average quality rating of A+. We have classified the entire fixed maturity securities portfolio as available for sale, which is carried at fair value. | ($ in millions) | Percent of Portfolio Fair Value / December 31, 2025 | Percent of Portfolio Fair Value / June 30, 2026 | June 30, 2026 / Fair Value | June 30, 2026 / Amortized Cost, net | | --- | --- | --- | --- | --- | | Fixed maturity securities | | | | | | AAA | 11.6% | 11.1% | $640.2 | $657.4 | | AA(2) | 42.6 | 41.2 | 2,375.4 | 2,573.5 | | A | 20.9 | 22.7 | 1,309.2 | 1,357.5 | | BBB | 21.3 | 21.1 | 1,219.7 | 1,305.0 | | BB | 1.4 | 1.5 | 84.7 | 89.2 | | B | 0.4 | 0.5 | 26.0 | 27.9 | | CCC or lower | — | — | 1.6 | 2.9 | | Not rated(3) | 1.8 | 1.9 | 110.2 | 112.1 | | Total fixed maturity securities | 100.0% | 100.0% | $5,767.0 | $6,125.5 | | Equity securities | | | | | | AAA | — | — | — | | | AA | — | — | — | | | A | — | — | — | | | BBB | 69.0 | 69.2 | 27.9 | | | BB | 22.0 | 21.9 | 8.8 | | | B | — | — | — | | | CCC or lower | — | — | — | | | Not rated | 9.0 | 8.9 | 3.6 | | | Total equity securities | 100.0% | 100.0% | $40.3 | | | Total | | | $5,807.3 | | (1) Ratings are assigned by an NRSRO when available, If no rating is available from an NRSRO, then an internally developed rating may be used. Ratings for publicly traded securities are determined when the securities are acquired and are updated monthly to reflect any changes in ratings. (2) At June 30, 2026, the AA rated fair value amount included $313.2 million of U.S. Government and federally sponsored agency securities and $651.2 million of mortgage-backed and other asset-backed securities issued by U.S. Government and federally sponsored agencies. (3) This category primarily represents private placement and municipal securities not rated by an NRSRO. As of June 30, 2026, the fixed maturity securities portfolio had $410.5 million of pretax gross unrealized investment losses on $3,588.6 million of fair value related to 2,324 positions. Of the investment positions with gross unrealized losses, there were 370 trading below 80.0% of the carrying value as of June 30, 2026. The Company views the decrease in fair value of all of the fixed maturity securities with unrealized losses as of June 30, 2026 as due to factors other than a credit loss. Future changes in circumstances related to these and other securities could require subsequent recognition of impairment. See Part II - Item 8, Note 2 of the Consolidated Financial Statements in this Quarterly Report on Form 10-Q for more information. Increases in U.S. Treasury yields and credit spreads contributed to an increase in unrealized investment losses. As of June 30, 2026, the 10-year U.S. Treasury yield increased 30 basis points since December 31, 2025, rising from 4.17% as of December 31, 2025 to 4.47% as of June 30, 2026. Credit spreads were tighter by 4 basis points during the same time period for investment grade and high yield credit spreads were wider by 4 basis points. As of June 30, 2026, investment grade and high yield total returns were 0.86% and 1.96%, respectively, since December 31, 2025. Horace Mann Educators Corporation 56 Second Quarter 2026 Form 10-Q ### Liquidity and Capital Resources Our liquidity and access to capital were not materially impacted by inflation or changes in interest rates during the three and six months ended June 30, 2026. For further discussion regarding the potential future impacts of inflation and changes in interest rates, see Part I – Item 1A - Risk Factors and Part II – Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations - Effects of Inflation and Changes in Interest Rates presented in our Annual Report on Form 10-K for the year ended December 31, 2025. ### Investments Information regarding our investment portfolio, which is comprised primarily of investment grade fixed maturity securities, is presented in Part I - Item 1, Note 2 of the Consolidated Financial Statements as well as Part I - Item 2 - Investment Results in this Quarterly Report on Form 10-Q. ### Cash Flow Our short-term liquidity requirements, within a 12 month operating cycle, are for the timely payment of claims and benefits to policyholders, operating expenses, interest payments and federal income taxes. Cash flow generated from operations has been, and is expected to be, adequate to meet our operating cash needs in the next 12 months. Cash flow in excess of operational needs has been used to fund business growth, pay dividends to shareholders and repurchase shares of our common stock. Long-term liquidity requirements, beyond one year, are principally for the payment of future insurance and annuity policy claims and benefits, as well as retirement of debt. The following table summarizes our consolidated cash flows activity for the periods indicated. | | | | | | | | --- | --- | --- | --- | --- | --- | | ($ in millions) | Six Months EndedJune 30, | | | | 2026-2025 | | | 2026 | | 2025 | | % Change | | Net cash provided by operating activities | $ | $285.0 | $ | $272.1 | 4.7% | | Net cash used in investing activities | (86.7) | | (72.0) | | -20.4% | | Net cash used in financing activities | (179.6) | | (197.3) | | 9.0% | | Net increase in cash | 18.7 | | 2.8 | | N.M. | | Cash at beginning of period | 27.5 | | 38.1 | | -27.8% | | Cash at end of period | $ | $46.2 | $ | $40.9 | 13.0% | Operating Activities As a holding company, we conduct our principal operations in the personal lines segment of the property and casualty, life, retirement, supplemental and group insurance industries through our subsidiaries. Our insurance subsidiaries generate cash flow from premium and investment income, generally well in excess of their immediate needs for policy obligations, operating expenses and other cash requirements. Fluctuations in net cash provided by operating activities primarily reflect seasonality in timing of premium and investment income collections and claims and benefits payments. For the six months ended June 30, 2026, net cash provided by operating activities increased $12.9 million. Investing Activities Net cash used in investing activities for the six months ended June 30, 2026 and 2025 was $86.7 million and $72.0 million, respectively. Investing cash inflows consist primarily of proceeds from the sales and maturities of investments. Investing cash outflows consist primarily of payments for purchases of investments. Our investment strategy is to appropriately match the cash flows and durations of our assets with the cash flows and durations of our liabilities to meet the funding requirements of our business and, generally, the expected principal and interest payments produced by our fixed maturity securities portfolio adequately fund the estimated runoff of our insurance reserves. When market opportunities arise, we may sell selected securities and reinvest the proceeds to improve the yield and credit quality of our portfolio. We may at times also sell selected securities and reinvest the proceeds to improve the duration matching of our assets and liabilities and/or rebalance our portfolio. As a result, sales before maturity may vary from period to period. The sale and purchase of short-term investments is influenced by Horace Mann Educators Corporation 57 Second Quarter 2026 Form 10-Q proceeds received from FHLB funding advances, issuance of debt, our reverse repurchase agreement program, and by the amount of cash which is at times held in short-term investments to facilitate the availability of cash to fund the purchase of appropriate long-term investments, repay maturing debt, and/or to respond to catastrophes. Financing Activities Financing activities include primarily payment of dividends, receipt and withdrawal of funds by annuity contractholders, changes in the deposit asset on reinsurance, repurchases of our common stock, fluctuations in book overdraft balances, and borrowings, repayments and repurchases related to debt facilities. For the six months ended June 30, 2026, net cash used in financing activities decreased $17.7 million compared to the prior year period. The change was primarily due to a $20 million decrease in net cash outflows (advances less repayments) from FHLB funding agreements. Additionally, there was a $12.0 million decrease in cash outflow for reverse repurchase agreements. These were partially offset by a $11.1 million increase of Treasury stock purchases and a $3.6 million increase in cash outflows from benefits, withdrawals, and net transfers to Separate Account variable annuity assets. The following table shows activity from FHLB funding agreements for the periods indicated. | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | ($ in millions) | Six Months EndedJune 30, | | | | 2026-2025 | | 2026-2025 | | | 2026 | | 2025 | | $ Change | | % Change | | Balance at beginning of the period | $ | $1,039.5 | $ | $989.5 | $ | $50.0 | 5.1% | | Advances received from FHLB funding agreements | 689.5 | | 364.5 | | 325.0 | | 89.2% | | Principal repayments on FHLB funding agreements | (659.5) | | (354.5) | | (305.0) | | 86.0% | | Balance at end of the period | $ | $1,069.5 | $ | $999.5 | $ | $70.0 | 7.0% | Horace Mann Educators Corporation 58 Second Quarter 2026 Form 10-Q ### Liquidity Sources and Uses Our potential sources and uses of funds principally include the following activities: Property & Casualty Life & Retirement Supplemental & Group Benefits Corporate & Other Activities for potential sources of funds Receipt of insurance premiums, contractholder charges and fees ☑ ☑ ☑ Recurring service fees, commissions and overrides ☑ ☑ ☑ ☑ Contractholder fund deposits ☑ ☑ Reinsurance and indemnification program recoveries ☑ ☑ ☑ ☑ Receipts of principal, interest and dividends on investments ☑ ☑ ☑ ☑ Proceeds from sales of investments ☑ ☑ ☑ ☑ Proceeds from FHLB borrowing and funding agreements ☑ ☑ ☑ Proceeds from reverse repurchase agreements ☑ ☑ ☑ Intercompany loans ☑ ☑ ☑ ☑ Capital contributions from parent ☑ ☑ ☑ ☑ Dividends or return of capital from subsidiaries ☑ Tax refunds/settlements ☑ ☑ ☑ ☑ Proceeds from periodic issuance of additional securities ☑ Proceeds from debt issuances ☑ Proceeds from revolving credit facility ☑ Receipt of intercompany settlements related to employee benefit plans ☑ Activities for potential uses of funds Payment of claims and related expenses ☑ ☑ ☑ ☑ Payment of contract benefits, surrenders and withdrawals ☑ ☑ Reinsurance cessions and indemnification program payments ☑ ☑ ☑ ☑ Payment of operating costs and expenses ☑ ☑ ☑ ☑ Payments to purchase investments ☑ ☑ ☑ ☑ Repayment of FHLB borrowing and funding agreements ☑ ☑ ☑ Repayment of reverse repurchase agreements ☑ ☑ ☑ Payment or repayment of intercompany loans ☑ ☑ ☑ ☑ Capital contributions to subsidiaries ☑ Dividends or return of capital to shareholders/parent company ☑ ☑ ☑ ☑ Tax payments/settlements ☑ ☑ ☑ ☑ Common share repurchases ☑ Debt service expenses and repayments ☑ Repayment on revolving credit facility ☑ Payments related to employee benefit plans ☑ Payments for business acquisitions ☑ We actively manage our financial position and liquidity levels in light of changing market, economic and business conditions. Liquidity is managed at both the entity and enterprise level across HMEC and is assessed on both base and stressed level liquidity needs. We believe we have sufficient liquidity to meet these needs. Additionally, we have existing intercompany agreements in place that facilitate liquidity management across HMEC to enhance flexibility. Horace Mann Educators Corporation 59 Second Quarter 2026 Form 10-Q As of June 30, 2026, we held $1.0 billion of cash, U.S. government and agency fixed maturity securities and public equity securities (excluding non-redeemable preferred stocks and foreign equity securities) which, under normal market conditions, could be rapidly liquidated. Certain remote events and circumstances could constrain our liquidity. Those events and circumstances include, for example, a catastrophe resulting in extraordinary losses, a downgrade of our Senior Notes rating to non-investment grade status or a downgrade in our insurance subsidiaries' financial strength ratings. The rating agencies also consider the interdependence of our individually rated entities; therefore, a rating change in one entity could potentially affect the ratings of other related entities. ### Capital Resources We have determined the amount of capital that is needed to adequately fund and support business growth, primarily based on risk-based capital formulas, including those developed by the National Association of Insurance Commissioners. Historically, our insurance subsidiaries have generated capital in excess of such needed levels. These excess amounts have been paid to us through dividends. We have then utilized these dividends and our access to the capital markets to fund growth initiatives, service and retire debt, pay dividends to our shareholders, repurchase shares of our common stock and for other corporate purposes. If necessary, we also have other potential sources of liquidity that could provide for additional funding to meet corporate obligations or pay shareholder dividends, including a revolving line of credit, reverse repurchase agreements program, as well as issuances of various securities. The insurance subsidiaries are subject to various regulatory restrictions that limit the amount of annual dividends or other distributions, including loans or cash advances, available to us without prior approval of the insurance regulatory authorities. The aggregate amount of dividends that may be paid in 2025 from all of our insurance subsidiaries without prior regulatory approval is $162.5 million, excluding the impact and timing of prior dividends, of which $73.0 million was paid during the six months ended June 30, 2026. We anticipate that our sources of capital will continue to generate sufficient capital to meet the needs for business growth, debt interest payments, shareholder dividends and our share repurchase programs. Additional information is contained in Part II - Item 8, Note 13 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025. Total capital was $2,097.1 million as of June 30, 2026, including $594.2 million of long-term debt. Total debt represented 28.3% of total capital including net unrealized investment losses on fixed maturity securities (26.2% excluding net unrealized investment losses on fixed maturity securities and net reserve remeasurements attributable to discount rates*) as of June 30, 2026, which remains consistent with the Company's long-term capital management objectives. Shareholders' equity was $1,502.9 million as of June 30, 2026, including net unrealized investment losses on fixed maturity securities of $281.9 million after taxes. The market value of our common stock and the market value per share were $2,091.5 million and $51.65, respectively, as of June 30, 2026. Book value per share and adjusted book value per share* was $37.11 and $41.36, respectively, as of June 30, 2026. Additional information regarding net unrealized investment gains (losses) on fixed maturity securities as of June 30, 2026 is included in Part I - Item 1, Note 2 of the Consolidated Financial Statements as well as in Part I - Item 2 - Investment Results in this Quarterly Report on Form 10-Q. Total dividends paid to shareholders was $29.2 million for the six months ended June 30, 2026. In March and June of 2026, the Board of Directors (Board) approved regular quarterly dividends of $0.36 per share. For the six months ended June 30, 2026, we repurchased 421,946 shares of our common stock under our share repurchase program for a total cost of $18.2 million, at an average price per share of $43.07. See Part II - Item 8, Note 12 of the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2025 for more information. As of June 30, 2026, $37.4 million remained authorized for future share repurchases under the share repurchase program. Horace Mann Educators Corporation 60 Second Quarter 2026 Form 10-Q The following table summarizes our debt obligations. | ($ in millions) / Short-term debt / Revolving Credit Facility | Interest Rates / Variable | Final Maturity / 2030 | June 30, 2026 / $ | June 30, 2026 / — | December 31, 2025 / $ | December 31, 2025 / — | | --- | --- | --- | --- | --- | --- | --- | | Long-term debt(1) | | | | | | | | 4.70% 2025 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $1.4 and $1.5 unamortized debt issuance costs of $2.7 and $3.1 | 4.70% | 2030 | 295.9 | | 295.4 | | | 7.25% 2023 Senior Notes, Aggregate principal amount of $300.0 less unaccrued discount of $0.2 and $0.3 and unamortized debt issuance costs of $1.5 and $1.7 | 7.25% | 2028 | 298.3 | | 298.0 | | | Total | | | $ | $594.2 | $ | $593.4 | (1) We designate debt obligations as "long-term" based on maturity date at issuance. On September 26, 2025, we issued $300.0 million aggregate principal amount of 4.70% senior notes (2025 Senior Notes), which will mature on October 1, 2030, issued at a discount resulting in an effective yield of 4.82%. Interest on the 2025 Senior Notes is payable semi-annually at a rate of 4.70%. The 2025 Senior Notes are redeemable in whole or in part, at any time, at our option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 20 basis points, plus, in either of the above cases, accrued interest up to, but not including the date of redemption. The 2025 Senior Notes are traded in the open market (HMN 4.70). On September 29, 2025, we issued a notice of redemption for all of the outstanding 4.50% Senior Notes due 2025. The redemption occurred on October 14, 2025 utilizing the proceeds from the 2025 Senior Notes. On September 15, 2023, we issued $300.0 million aggregate principal amount of 7.25% senior notes (2023 Senior Notes), which will mature on September 15, 2028, issued at a discount resulting in an effective yield of 7.29%. Interest on the 2023 Senior Notes is payable semi-annually at a rate of 7.25%. The 2023 Senior Notes are redeemable in whole or in part, at any time, at our option, at a redemption price equal to the greater of (1) 100% of the principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted, on a semi-annual basis, at the Treasury yield (as defined in the indenture) plus 45 basis points, plus, in either of the above cases, accrued interest up to, but not including the date of redemption. The 2023 Senior Notes are traded in the open market (HMN 7.25). As of June 30, 2026, we had $325.0 million available on the Revolving Credit Facility, with an interest rate based on Term SOFR plus 115 basis points plus the applicable benchmark adjustment spread. The Revolving Credit Facility expires on May 19, 2030. The unused portion of the Revolving Credit Facility is subject to a variable commitment fee, which was 0.15% on an annual basis as of June 30, 2026. As of June 30, 2026, we had no borrowings outstanding with FHLB. The Board has authorized a maximum amount equal to 15% of net aggregate admitted assets less separate account assets of the insurance subsidiaries for FHLB borrowing and funding agreements which is below our maximum FHLB borrowing capacity. We had no obligation for securities sold under reverse repurchase agreements at June 30, 2026 and December 31, 2025. To provide additional capital management flexibility, we filed a "universal shelf" registration statement on Form S-3 with the Securities and Exchange Commission (SEC) on March 8, 2024. The registration statement, which registered the offer and sale from time to time of an indeterminate amount of various securities, which may include debt securities, common stock, preferred stock, depositary shares, warrants, delayed delivery contracts and/or units that include any of these securities, was automatically effective on March 8, 2024. Unless withdrawn by us earlier, this registration statement will remain effective through March 8, 2027. No securities associated with the registration statement have been issued at the time of issuance of this Quarterly Report on Form 10-Q. Horace Mann Educators Corporation 61 Second Quarter 2026 Form 10-Q On March 13, 2018, we filed a "shelf" registration statement on Form S-4 with the SEC which became effective on May 2, 2018. Under this registration statement, we may from time to time offer and issue up to 5,000,000 shares of our common stock in connection with future acquisitions of other businesses, assets or securities. Unless withdrawn by us, this registration statement will remain effective indefinitely. No securities associated with the registration statement have been issued at the time of issuance of this Quarterly Report on Form 10-Q. Financial Ratings Our principal insurance subsidiaries are rated by A.M. Best Company, Inc. (A.M. Best), Moody's, and S&P. These rating agencies have also assigned ratings to our Senior Notes. The ratings that are assigned by these agencies, which are subject to change, can impact, among other things, our access to sources of capital, cost of capital, and competitive position. These ratings are not a recommendation to buy or hold any of our securities. All three agencies currently have assigned the same insurance financial strength ratings to our Property & Casualty and Life insurance subsidiaries. Only A.M. Best currently rates our Supplemental & Group Benefits subsidiaries, each of which is rated at the same level as our Property & Casualty and Life & Retirement subsidiaries. Assigned ratings and respective affirmation/review dates as of July 31, 2026 were as follows: | Line item | Insurance Financial / Strength Ratings (Outlook) | Debt Ratings (Outlook) | Affirmed/ / Reviewed | | --- | --- | --- | --- | | A.M. Best | | | | | HMEC (parent company) | N.A. | bbb | 9/12/2025 | | HMEC's Life & Retirement subsidiaries | A | N.A. | 9/12/2025 | | HMEC's Property & Casualty subsidiaries | A | N.A. | 9/12/2025 | | HMEC's Supplemental & Group Benefits subsidiaries | | | | | Madison National Life Insurance Company | A | N.A. | 9/12/2025 | | National Teachers Associates Life Insurance Company | A | N.A. | 9/12/2025 | | Moody's | | | | | HMEC (parent company) | | Baa2 | 3/31/2026 | | HMEC's Life Group | A2 | | 3/31/2026 | | HMEC's P&C Group | A2 | | 3/31/2026 | | S&P | A | BBB | 1/22/2026 | ### Reinsurance Programs There have been no material changes in our reinsurance programs for our Property & Casualty, Life & Retirement and Supplemental & Group Benefits segments from that disclosed in Part I - Item 1, Reporting Segments in our Annual Report on Form 10-K for the year ended December 31, 2025. Horace Mann Educators Corporation 62 Second Quarter 2026 Form 10-Q ## Item 3. Quantitative and Qualitative Disclosures About Market Risk ITEM 3. I Quantitative and Qualitative Disclosures about Market Risk Market value risk, our primary market risk exposure, is the risk that our invested assets will decrease in value. This decrease in value may be due to (1) a change in the yields realized on our assets and prevailing market yields for similar assets, (2) an unfavorable change in the liquidity of an investment, (3) an unfavorable change in the financial prospects of the issuer of an investment, or (4) a downgrade in the credit rating of the issuer of an investment. Also see Consolidated Results of Operations in Part I - Item 2 of this Quarterly Report on Form 10-Q regarding net investment losses. Significant changes in interest rates expose us to the risk of experiencing losses or earning a reduced level of income based on the difference between the interest rates earned on our investments and the credited interest rates on our insurance and investment contract liabilities. Also see Consolidated Results of Operations in Part I - Item 2 of this Quarterly Report on Form 10-Q regarding interest credited to policyholders. We seek to manage our market value risk by coordinating the projected cash inflows of assets with the projected cash outflows of liabilities. For all of our assets and liabilities, we seek to maintain reasonable durations, consistent with the maximization of income without sacrificing investment quality, while providing for liquidity and diversification. The investment risk associated with variable annuity deposits and the underlying mutual funds is assumed by those contractholders, and not by us. Certain fees that we earn from variable annuity deposits are based on the market value of the funds deposited. More detailed descriptions of our exposure to market value risks and the management of those risks is contained in Part II - Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025. ## Item 4. Controls and Procedures ITEM 4. I Controls and Procedures ### Management's Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934 as amended (Exchange Act), as of June 30, 2026. Based on this evaluation, the chief executive officer and chief financial officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us (including our consolidated subsidiaries) that is required to be included in our periodic SEC filings. No material weaknesses in our disclosure controls and procedures were identified in the evaluation and therefore, no corrective actions were taken. There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. ### Changes in Internal Control Over Financial Reporting There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Horace Mann Educators Corporation 63 Second Quarter 2026 Form 10-Q ### PART II: OTHER INFORMATION ## Item 1. Legal Proceedings ITEM 1. I Legal Proceedings For a description of noteworthy litigation, see Part I - Item 1, Note 10 of the Consolidated Financial Statements of this Quarterly Report on Form 10-Q. ## Item 1A. Risk Factors ITEM 1A. I Risk Factors At the time of issuance of this Quarterly Report on Form 10-Q, we believe there are no material changes from the risk factors as previously disclosed in Part I - Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. ## Item 2. Unregistered Sales of Equity Securities and Use of Proceeds ITEM 2. I Unregistered Sales of Equity Securities and Use of Proceeds ### Issuer Purchases of Equity Securities On May 13, 2025, our Board of Directors authorized a share repurchase program allowing repurchases of up to $50 million of our common shares in open market or privately negotiated transactions, from time to time, depending on market conditions (Program). The Program does not have an expiration date and may be limited or terminated at any time without notice. During the three months ended June 30, 2026, no shares were repurchased under the program. As of June 30, 2026, the approximate dollar value of shares that may yet be purchased under the Program was $37.4 million. ## Item 5. Other Information ITEM 5. I Other Information As reported in our March 27, 2026 Form 8-K, Ryan Greenier has been acting as the Company’s interim chief accounting officer for this Form 10-Q. It is expected that he will continue in this role for the third quarter and, as necessary, through the fiscal year. Horace Mann Educators Corporation 64 Second Quarter 2026 Form 10-Q ## Item 6. Exhibits ITEM 6. I Exhibits The following items are filed as Exhibits. Management contracts and compensatory plans are indicated by an asterisk (*). | Exhibit No. | Description | | --- | --- | | 31.1 | Certification by Marita Zuraitis, Chief Executive Officer of HMEC. | | 31.2 | Certification by Ryan E. Greenier, Chief Financial Officer of HMEC. | | 32.1 | Certification by Marita Zuraitis, Chief Executive Officer of HMEC. | | 32.2 | Certification by Ryan E. Greenier, Chief Financial Officer of HMEC. | | 99.1 | Glossary of Selected Terms. | | 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | | 101.SCH | XBRL Taxonomy Extension Schema | | 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | | 101.DEF | XBRL Taxonomy Extension Definition Linkbase | | 101.LAB | XBRL Taxonomy Extension Label Linkbase | | 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Horace Mann Educators Corporation 65 Second Quarter 2026 Form 10-Q SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. HORACE MANN EDUCATORS CORPORATION (Registrant) Date August 7, 2026 /s/ Marita Zuraitis Marita Zuraitis President and Chief Executive Officer Date August 7, 2026 /s/ Ryan E. Greenier Ryan E. Greenier Executive Vice President and Chief Financial Officer Horace Mann Educators Corporation 66 Second Quarter 2026 Form 10-Q --- ## EX-31.1 SEC source: [a63026ex311.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex311.htm) Exhibit 31.1 Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Marita Zuraitis, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2026 of Horace Mann Educators Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. /s/ Marita Zuraitis Marita Zuraitis, Chief Executive Officer Horace Mann Educators Corporation Date: August 7, 2026 --- ## EX-31.2 SEC source: [a63026ex312.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex312.htm) Exhibit 31.2 Chief Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Ryan E. Greenier, certify that: 1. I have reviewed this Quarterly Report on Form 10-Q for the period ended June 30, 2026 of Horace Mann Educators Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors: a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. /s/ Ryan E. Greenier Ryan E. Greenier, Chief Financial Officer Horace Mann Educators Corporation Date: August 7, 2026 --- ## EX-32.1 SEC source: [a63026ex321.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex321.htm) Exhibit 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Horace Mann Educators Corporation (the "Company") on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Marita Zuraitis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Marita Zuraitis Marita Zuraitis Chief Executive Officer Date: August 7, 2026 A signed original of this written statement required by Section 906 has been provided to Horace Mann Educators Corporation and will be retained by Horace Mann Educators Corporation and furnished to the Securities and Exchange Commission or its staff upon request. --- ## EX-32.2 SEC source: [a63026ex322.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/a63026ex322.htm) Exhibit 32.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Horace Mann Educators Corporation (the "Company") on Form 10-Q for the period ended June 30, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Ryan E. Greenier, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Ryan E. Greenier Ryan E. Greenier Chief Financial Officer Date: August 7, 2026 A signed original of this written statement required by Section 906 has been provided to Horace Mann Educators Corporation and will be retained by Horace Mann Educators Corporation and furnished to the Securities and Exchange Commission or its staff upon request. --- ## EX-99.1 SEC source: [q22026ex991-glossaryofterms.htm](https://www.sec.gov/Archives/edgar/data/850141/000085014126000033/q22026ex991-glossaryofterms.htm) Exhibit 99.1 Glossary of Selected Terms The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, are not based on accounting principles generally accepted in the United States of America (non-GAAP) under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statements of Operations and Comprehensive Income (Loss) or Consolidated Balance Sheets or are not required to be disclosed in the Notes to the Consolidated Financial Statements or, in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States of America (GAAP). In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company's financial performance. Internally, the Company's management uses the measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons. Some of these measures exclude net investment gains (losses), net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Also, some of these measures exclude goodwill and intangible asset impairments, intangible asset amortization, legacy commercial exposures and other non-recurring or infrequent items. Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management. Adjusted book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company’s underlying insurance operations. Tangible book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities after-tax net reserve remeasurements attributable to discount rates, goodwill and other intangible assets (including the related impact of deferred taxes) by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Adjusted debt to total capitalization ratio, excluding net unrealized investment gains (losses) on fixed maturity securities, net reserve remeasurements attributable to discount rates, and restricted cash for debt repayment - The result of dividing (1) total debt less debt to be repaid by restricted cash by (2) total debt less debt to be repaid by restricted cash, plus common shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates from common shareholders' equity. The debt to total capitalization ratio is the most directly comparable GAAP measure. Catastrophe costs - The sum of catastrophe losses, net of reinsurance and before income tax benefits that includes allocated loss adjustment expenses and reinsurance reinstatement premiums, excluding unallocated loss adjustment expenses. Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of a covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports claims and claim expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their effects are not included in earnings or claim and claim expense reserves prior to occurrence. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings. Core earnings (loss) - Consolidated net income (loss) excluding the after-tax impact of net investment gains (losses), the after-tax impact of legacy commercial exposures, the after-tax impact of intangible asset amortization, the after-tax change in market risk benefits, discontinued operations, the after-tax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and after-tax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Net income is the most directly comparable GAAP measure. - Pretax core earnings (loss) - Pretax net income (loss) excluding the pretax impact of net investment gains (losses), the pretax impact of legacy commercial exposures, the pretax impact of intangible asset amortization, the pretax impact of the change in market risk benefits, discontinued operations, the pretax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and pretax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Income before income taxes is the most directly comparable GAAP measure. - Segment core earnings (loss) - Determined in the same manner as core earnings (loss) on a consolidated basis. Management uses segment core earnings to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core earnings when analyzing the results and trends of insurance companies. Core earnings (loss) per share - Core earnings on a per common share basis. Earnings per share is the most directly comparable GAAP measure. Net premiums written and contract deposits – Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating business growth. Premiums and contract charges earned is the most directly comparable GAAP measure. Net premiums written and contract deposits for the Company’s operating segments are as follows: Property & Casualty Net premiums written: Reflects the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers. The difference between premiums written and premiums earned is premiums unearned. Life & Retirement Life Insurance Product Lines: - Net premiums written and contract deposits: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Contract deposits include amounts received from customers on deposit-type contracts. Retirement Product Lines: - Net annuity contract deposits: Reflects total recurring deposits and single deposits/rollovers – net of contract deposits ceded to reinsurers. Supplemental & Group Benefits Individual Supplemental Product Lines: - Net premiums written: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders/certificate holders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Group Benefits Product Lines: - Net premiums written: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Investment yield, excluding limited partnership interests - annualized, pretax and after-tax - For the three month periods presented, investment yields are calculated by annualizing the result of year-to-date total net investment income, pretax adjusted to exclude (1) investment income from deposit asset on reinsurance, (2) investment income from limited partnership interests (excluding investment income on commercial mortgage loan funds) and (3) FHLB interest credited for the corresponding periods, divided by the average quarter-end and beginning of quarter carrying amount of the total investment portfolio as presented in the Consolidated Balance Sheets adjusted to exclude (1) FHLB funding agreements, (2) the carrying amount of limited partnership interests (excluding the carrying amount of commercial mortgage loan funds), and (3) gross unrealized investment gains (losses) on fixed maturity securities. For full year periods presented, investment yields are calculated by (i) summing the investment yields for each respective three-month period applicable to the year and (ii) dividing that sum per the calculation in (i) by four. Net investment income is the most directly comparable GAAP measure. Net income return on equity - LTM: The ratio of (1) trailing 12 month net income to (2) the average of ending shareholders’ equity for the current quarter end and the preceding four quarter ends - referred to as the 5 quarter average of shareholders' equity. - Net income return on equity - Annualized: The ratio of (1) annualized net income to (2) the 2 quarter average of shareholders' equity. - Core return on equity - LTM: The ratio of (1) trailing 12 month core earnings to (2) the 5 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - LTM is the most directly comparable GAAP measure. - Core return on equity - Annualized: The ratio of (1) annualized core earnings to (2) the 2 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - Annualized is the most directly comparable GAAP measure. Net reserves - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables. Prior years’ reserve development - A measure which the Company reports for its Property & Casualty segment which identifies the increase or decrease in net incurred claim and claim expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of management, a discussion of prior years’ reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years. Property & Casualty operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results. - Loss ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net premiums earned. - Underlying loss ratio - The sum of the loss ratio adjusted to remove the effect of catastrophe losses and prior years' reserve development. The loss ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods. - Expense ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs less other income to (2) net earned premiums. - Combined ratio - The sum of the loss ratio and the expense ratio. A combined ratio less than 100% generally indicates profitable underwriting prior to the consideration of net investment income. - Underlying combined ratio or combined ratio excluding catastrophe losses and prior years’ reserve development - The sum of the loss ratio and the expense ratio adjusted to remove the effect of catastrophe losses and prior years’ reserve development. The combined ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company’s underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years’ reserve development, the amounts of which may be significant and may vary significantly between periods. Supplemental & Group Benefits operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of supplemental and group benefits underwriting results. - Benefits ratio - The ratio of (1) the sum of benefits, settlement expenses and change in reserves to (2) net premiums and contract charges earned. - Operating expense ratio - The ratio of (1) the sum of operating expenses and DAC amortization expense to (2) total revenues. - Pretax profit margin - The ratio of (1) net income before income taxes to (2) total revenues. Sales – Sales data pertains to Horace Mann products and excludes authorized products sold by exclusive agents that are underwritten by third-party vendors. Sales should not be viewed as a substitute for any GAAP measure, including "sales" as it relates to non-insurance companies, and the Company’s definition of sales, sales deposits or new annualized sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends. Sales for the Company’s operating segments are as follows: Property & Casualty - Sales: Sales are measured as premiums to be collected over the 12 months following the sale of new automobile and property policies. Life & Retirement Life Insurance Product Lines: - Annualized sales: Annualized sales are based on the total yearly premium that the Company would expect to receive if all first year recurring premium policies would remain in force, plus 10% of single and indexed universal life excess premiums. Annualized sales measure activity associated with gaining new insurance business in the current period, and includes deposits received related to universal-life-type products. Supplemental & Group Benefits Individual Supplemental Product Lines: - Sales: Based on application received date on the submitted policy and measured as the submitted annual premium. Group Benefits Product Lines: - Sales: Sales are measured based on estimated annualized premium on the effective date of sale.