Horace Mann reports preliminary Q2 cat losses of up to $43m

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Horace Mann Educators Corporation has announced preliminary Q2 catastrophe losses of between $41 million and $43 million pretax, driven by 19 events designated as catastrophes by Property Claims Services in the quarter.

horace-mann-logoThese events include multiple severe convective storms across the Midwest and Texas in June. Expected catastrophe losses will amount to 26 to 27 points to the firm’s Q2 combined ratio.

As a result of the losses, the firm now expects full-year catastrophe losses of between $95 million and $100 million, which acknowledges the potential for continued outsized weather through the second half of 2023.

Marita Zuraitis, the President & CEO of Horace, commented, “Across the country, weather events are increasing in frequency and size, resulting in record levels of catastrophe losses for the industry. I am proud of our team members who continuously deliver on Horace Mann’s promise to help affected educator customers at the ‘moment of truth.”

Zuraitis confirmed that the underlying results for Q2 show that the company took appropriate reserve actions in 2022 to address the emergence of the post-pandemic inflationary loss environment.

Zuraitis added, “Auto rate increases since the beginning of 2022 have reached almost 15% nationwide, and we expect the cumulative year-end impact to be near 20%. Further, we expect average renewal premiums for property to increase by 17% to 20% in 2023 due to rate increases and other actions. We will continue to address the increased weather activity through additional filed rate, product changes and enhanced modeling.”

The company stated that the expected results for Q2, as well as its outlook, have benefited from the significant revenue and earnings diversification efforts it undertook in the past five years.

Zuraitis concluded, “Strong contributions from our Worksite and Life & Retirement businesses, combined with continued progress toward P&C segment profitability targets, should enable us to deliver 2023 core EPS in the range of $1.20 to $1.45. We continue to see sales momentum across our entire business and we remain confident in our long-term outlook.”

The post Horace Mann reports preliminary Q2 cat losses of up to $43m appeared first on ReinsuranceNe.ws.

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