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Horace Mann Educators (HMN) Sees Q2 Impact of Up to $28M on Severe Weather

July 20, 2016 4:24 PM EDT

Horace Mann Educators Corporation (NYSE: HMN) estimates its financial impact from weather-related catastrophe activity during the three months ended June 30, 2016 will total $27 to $28 million on a pre-tax basis. These catastrophe losses were related to 14 catastrophe events, the most significant being severe weather in Texas and the Midwest. This estimate represents 17 to 18 percentage points on the Company's estimated second quarter 2016 combined ratio, or approximately $0.42 to $0.44 per diluted share after tax. In addition to sizable catastrophe losses, the Company experienced an increase in claim counts in auto, as adverse weather contributed to an increase in frequency.

"We continued to experience a significant amount of severe convective storm activity, and as a result, property catastrophe losses were elevated and auto losses were significantly higher than planned," said Marita Zuraitis, President and Chief Executive Officer. "Therefore, we estimate our second quarter 2016 property and casualty combined ratio will be between 111 and 112 percentage points," stated Zuraitis.

As a reminder, the Company will release its second quarter 2016 earnings on Wednesday, July 27, 2016 after the market closes. The earnings press release and investor financial supplement will be available shortly thereafter within the Investor Relations section of the Company's website at investors.horacemann.com.

Management will host a conference call to discuss the financial results on Thursday, July 28, 2016 at 9:00 a.m. Eastern Time. The conference call will be simulcast over the internet or accessible by telephone at 877.269.7756, conference code 13641379. On-demand replay will be available via the Internet or telephone for those unable to listen to the call live.



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