Springfield, Ill.-based Horace Mann Educators Corp., which provides insurance and annuities to educators, announced that its net income for the second quarter and six months ended June 30 was negatively affected by about 15 cents per share due to an increase in property/casualty claims reserves.
Based on recently completed reserve studies, total property/casualty reserves were increased by approximately $10 million compared to March 31. The increase was attributable to adverse development of prior years’ reserves, primarily voluntary automobile.
Net income was also adversely impacted by widespread severe weather experienced in the current period. Second quarter 2003 catastrophe losses of $7.3 million after tax were nearly three times greater than the same period last year and approximately 6 cents per share above expected levels.
In addition to these factors, full year net income is expected to reflect lower than anticipated investment income as a result of pressures on the portfolio yield from declining interest rates.
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