Horace Mann Educators Corporation,(HMN) a prominent player in the insurance and financial services sector, has recently released its consolidated financial statements for the first quarter of 2023. The report showcases the company's financial performance, including net income and revenue figures for the specified period.
The financial data reveals that Horace Mann Educators Corporation generated a net income of $6.6 million during the first quarter of 2023. This represents the profits remaining after all expenses, including claims, taxes, and operational costs, have been deducted from the company's total revenue.
During the same period, the company's total revenue reached $353.9 million. The revenue consists of various components, including net premiums and contract charges earned, net investment income, net investment losses, and other income.
Horace Mann Educators Corporation's total assets amounted to $13,653.9 million as of March 31, 2023, compared to $13,306.1 million at the end of December 2022. The major asset categories include:
Investments: The company's investments grew to $6,785.3 million, showcasing a positive trend in its portfolio. This category encompasses fixed maturity securities available for sale, equity securities at fair value, limited partnership interests, and short-term and other investments.
Cash: The cash position of the company stood at $27.4 million, indicating a decline from $42.8 million at the end of the previous year.
Deferred Policy Acquisition Costs: Horace Mann held $331.6 million in deferred policy acquisition costs, slightly increasing from the previous period.
Reinsurance Balances Receivable: The company recorded $467.6 million in reinsurance balances receivable, almost unchanged from the last reporting period.
Intangible Assets and Goodwill: Intangible assets and goodwill amounted to $181.5 million and $54.3 million, respectively.
Other Assets: Horace Mann had $333.5 million in other assets, showing a slight increase from $328.7 million in December 2022.
Separate Account Variable Annuity Assets: The company held $2,954.7 million in separate account variable annuity assets, reflecting growth from $2,792.3 million at the end of December 2022.
Horace Mann's total liabilities were reported at $12,514.7 million as of March 31, 2023, compared to $12,207.8 million at the end of December 2022. The major liability categories include:
Policy Liabilities: The company's policy liabilities amounted to $7,845.1 million, covering future policy benefit reserves, policyholders' account balances, unpaid claims and claim expenses, and unearned premiums.
Other Policyholder Funds: Horace Mann recorded $887.1 million in other policyholder funds.
Other Liabilities: The company's other liabilities reached $329.8 million, indicating a slight increase from $299.5 million at the end of the last reporting period.
Short-term and Long-term Debt: Horace Mann reported both short-term and long-term debt of $249.0 million each.
Separate Account Variable Annuity Liabilities: The company held $2,954.7 million in separate account variable annuity liabilities, reflecting growth from $2,792.3 million at the end of December 2022.
Horace Mann Educators Corporation's shareholders' equity reached $1,139.2 million as of March 31, 2023, compared to $1,098.3 million at the end of December 2022. The key components of shareholders' equity include common stock, additional paid-in capital, retained earnings, and accumulated other comprehensive income (loss).
Horace Mann reported total revenues of $353.9 million for the first quarter of 2023. The revenues primarily consisted of net premiums and contract charges earned, net investment income, net investment losses, and other income.
The company's benefits, losses, and expenses totaled $345.8 million during the same period. This category includes benefits, claims, and settlement expenses, interest credited, operating expenses, DAC amortization expense, intangible asset amortization expense, and interest expense.
After accounting for all expenses, the company reported an income before income taxes of $8.1 million for the first quarter of 2023. Income tax expense amounted to $1.5 million, resulting in a net income of $6.6 million.
The net income per share for the first quarter of 2023 was $0.16 on a basic and diluted basis, based on the weighted average number of shares outstanding.
Furthermore, Horace Mann's comprehensive income for the specified period was $58.6 million. The comprehensive income calculation considers not only net income but also other comprehensive income (loss) components, such as changes in net unrealized investment losses on fixed maturity securities and net reserve remeasurements attributable to discount rates.
The company's common stock remained stable at $0.1 million, with no new shares issued during the first quarter of 2023.
The additional paid-in capital increased to $503.1 million due to share-based compensation expenses partially offset by the exercise of stock options and conversion of common and restricted stock units.
Retained earnings decreased to $1,505.2 million, taking into account the net income generated during the quarter and dividend payments to shareholders.
The accumulated other comprehensive income (loss) balance improved to $(347.4) million, resulting from changes in net unrealized investment losses on fixed maturity securities and net reserve remeasurements attributable to discount rates.
Treasury stock increased to $(521.8) million due to share repurchases.
During the first quarter of 2023, Horace Mann generated net cash provided by operating activities of $86.4 million. The cash flow from operating activities was driven by net income, adjustments to reconcile net income, and changes in various operating assets and liabilities.
The company used net cash of $95.3 million in investing activities, which included purchases and sales of fixed maturity securities, equity securities, and limited partnership interests. Additionally, the acquisition of business impacted the cash flow during the quarter.
Net cash provided by financing activities amounted to $(6.5) million, with activities such as dividends paid to shareholders and the acquisition of treasury stock.
Horace Mann Educators Corporation's financial report for the first quarter of 2023 indicates steady performance with a net income of $6.6 million and revenue reaching $353.9 million. The company's consolidated balance sheets, statements of operations, changes in shareholders' equity, and cash flows provide a comprehensive overview of its financial health and operations during the specified period. Investors and stakeholders can use this information to make informed decisions about their involvement with the company.