Illinois-based Horace Mann Educators Corp. has reported net income of $33.6 million (72 cents per share) and $60.2 million ($1.29 per share), respectively, for the three and six months ended June 30, 2005, compared to net income of $18.9 million (41 cents per share) and $40.6 million (89 cents per share) for the same periods in 2004.
Included in net income were net realized gains on securities
of $4.3 million ($2.8 million after tax, or 7 cents per share) and $9.0
million ($5.9 million after tax, or 13 cents per share) for the three and six months ended June 30, 2005, respectively, compared to net realized losses on securities of $0.8 million ($0.5 million after tax, or 2 cents per share) for the second quarter of 2004 and net realized gains of $4.5 million ($2.9 million after tax, or 6 cents per share) for the six months ended June 30, 2004. All per-share amounts are stated on a diluted basis.
“Horace Mann produced strong earnings again in the second quarter,
primarily driven by continued strength in property and casualty profit
margins,” said Louis Lower II, president and CEO. “As in recent quarters, our underlying auto and homeowners results benefited from
aggressive underwriting and pricing actions taken in 2003 and 2004, ongoing improvements in claims processes, cost containment initiatives, and a continuing low level of non-catastrophe claim frequencies. And, along with the industry, we also benefited in the quarter from a relatively low level of catastrophe losses.
“Based on results for the first half of the year, we are increasing our
estimate of full year 2005 net income before realized investment gains and losses by 25 cents to between $1.80 and $1.90 per share,” said Lower. “In addition to the second quarter tax refund benefit, this projection reflects continued favorable property and casualty underwriting trends, while remaining appropriately cautious regarding potential catastrophe losses in the second half of the year.”
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