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On Monday, analysts at JMP reiterated a Market Perform rating on Horace Mann Educators stock (NYSE:HMN), following the company’s efforts to achieve its target margins in the property and casualty (P&C) insurance sector by 2025. The management at Horace Mann has indicated confidence in the changes made to the P&C portfolio, which are expected to contribute to reaching the desired margins within the set timeframe. These adjustments come as a result of rate and terms/conditions changes that have largely been incorporated into the renewal book.
The analysts also highlighted the seasonal impact of higher catastrophe (cat) losses in the second quarter, which is traditionally Horace Mann’s most significant period for such losses. Historically, the second quarter accounts for approximately 50% of the company’s cat losses annually. As the second quarter is already underway, JMP analysts project that Horace Mann will continue to follow this trend, with an estimation of around 21 points of catastrophe losses in the P&C segment for the second quarter of 2025. This projection is slightly lower than the approximately 23 points of cat losses recorded in the same quarter of the previous year.
The emphasis on the second quarter’s impact is due to its historical significance for the company’s performance, with a notable portion of annual cat losses occurring during this period. The company’s management has reassured that the necessary adjustments have been made to meet the target margins by 2025, as the approved changes in rates and terms/conditions are now reflected in the renewal book. Notably, HMN has maintained dividend payments for 34 consecutive years and has raised its dividend for 15 straight years, demonstrating consistent shareholder returns despite seasonal challenges.
Horace Mann Educators Corporation specializes in providing insurance and financial services to educators and school employees. The company’s focus on the education sector positions it uniquely in the insurance industry. With a market capitalization of $1.78 billion and a P/E ratio of 15.11, HMN demonstrates solid fundamentals. For detailed analysis and comprehensive metrics, investors can access the full Pro Research Report available on InvestingPro, which provides in-depth insights into the company’s valuation and growth prospects.
The Market Perform rating suggests that JMP analysts see the stock performing in line with the broader market expectations. Investors will be watching closely to see if Horace Mann’s strategic changes in the P&C portfolio will lead to the anticipated margin improvements and how the company will manage the seasonal rise in catastrophe losses.
In other recent news, Horace Mann Educators Corporation reported first-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.07, surpassing the forecasted $1.03, and reported revenue of $416.4 million, significantly higher than the anticipated $302.65 million. Additionally, Horace Mann announced a new $50 million share repurchase program as part of its long-term strategy to enhance shareholder value. In terms of strategic partnerships, Horace Mann has teamed up with Crayola to promote creative educational programs, including sponsoring Crayola Creativity Week.
Furthermore, Raymond (NSE:RYMD) James has raised its price target for Horace Mann shares from $46.00 to $49.00, maintaining a Strong Buy rating due to the company’s solid distribution network and customer relationships. This reassessment follows Horace Mann’s recent investor day, where ambitious financial goals, such as a high single-digit compound annual growth rate in revenue over the next three years, were disclosed. During the company’s Annual Meeting of Shareholders, nine directors were elected, executive compensation was approved, and KPMG LLP was ratified as the independent auditor for the upcoming fiscal year. These developments reflect Horace Mann’s ongoing commitment to corporate governance and strategic growth initiatives.
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