Horace Mann Educators (NYSE:HMN)
Historical Stock Chart
From Oct 2019 to Oct 2024
Horace Mann Issues Earnings Warning
SPRINGFIELD, Ill., Oct. 27 /PRNewswire-FirstCall/ -- Horace Mann Educators
Corporation announced today that its net income for the third quarter and nine
months ended September 30, 2003 was negatively affected by approximately 57
cents per share due to adverse prior years' development and strengthening of
property and casualty claims reserves. The company's recently completed
internal reserve studies identified $30.1 million pretax of adverse prior years'
development, which primarily relates to voluntary automobile liability claims
from the 2001 and 2002 accident years. In addition to the prior years'
development, the company also strengthened current accident year reserves by
approximately $8 million pretax in the third quarter.
"We are obviously disappointed in the continuing and accelerated levels of
adverse prior years' development, which have become more fully revealed as we
have introduced new claims processes in 2003," said Louis G. Lower II, President
and Chief Executive Officer. "We have retained independent property and
casualty actuarial and claims consultants from Deloitte & Touche to conduct a
review of our claims operations and reserving processes. This will include a
review of claim files and claim handling processes and procedures (including
case reserving and establishment of supplemental and IBNR reserves) and will
help us understand the continuing adverse reserve development as well as give us
perspective on future expectations and reserving implications. Completion of
this independent review is targeted for January, 2004. While further
adjustments to our reserves may be necessary based on this study, our September
30 held reserves of $308 million have been established toward what we, and our
independent advisors, believe to be the high end of a reasonable range."
Primarily as a result of the property and casualty adverse development and
reserve strengthening, the company is reducing its guidance for full year 2003
net income before realized investment gains and losses to 30 cents to 40 cents
per share.
Management of Horace Mann will host a conference call on October 28, 2003 at
8:30 a.m. EST to discuss the information announced today. The call will be
simulcast over the Internet and can be accessed by logging onto a link on the
Horace Mann website at http://www.horacemann.com/ . For those unable to listen
to the simulcast, on-demand replay will be available via the Internet through
November 28, 2003 or by telephone through November 4, 2003. To listen to a
telephone replay of the call, dial 973-341-3080 (pin number 4272893). The
company's third quarter earnings release is scheduled for October 30, 2003, with
a conference call hosted by management the following day.
Horace Mann -- the largest national multiline insurance company focusing on
educators' financial needs -- provides retirement annuities, life insurance,
property/casualty insurance, and other financial solutions. Founded by educators
for educators in 1945, the company is headquartered in Springfield, Ill. Horace
Mann is publicly traded on the New York Stock Exchange as HMN. For more
information, visit http://www.horacemann.com/ .
Statements included in this news release 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 certain risks and uncertainties. Horace Mann
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as the result of new information, future events or
otherwise. Information concerning factors that could cause actual results to
differ materially from those in forward-looking statements is contained from
time to time in the company's public filings with the Securities and Exchange
Commission.
DATASOURCE: Horace Mann Educators Corporation
CONTACT: Dwayne D. Hallman, Senior Vice President - Finance of Horace
Mann Educators Corporation, +1-217-788-5708
Web site: http://www.horacemann.com/