Horace Mann Educators : Q1 2024 Investor Presentation

First Quarter 2024 Investor Presentation

May 8, 2024

Information as of March 31, 2024, unless otherwise noted

Safe Harbor Statement and

Non-GAAP Measures

Certain statements included in this presentation, including those regarding our earnings outlook, expected catastrophe losses, our investment strategies, our plans to implement additional rate actions, our plans relating to share repurchases and dividends, our efforts to enhance customer experience and expand our products and solutions to more educators, our strategies to create sustainable long-term growth and double-digit ROEs, our strategy to achieve a larger share of the education market, and other business strategies, constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Horace Mann and its subsidiaries. Horace Mann cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond Horace Mann's control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements included in this document. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the "Risk Factors" and "Forward-Looking Information" sections included in Horace Mann's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC). The forward-looking statements herein are subject to the risk, among others, that we will be unable to execute our strategy because of market or competitive conditions or other factors. Horace Mann does not undertake to update any particular forward-looking statement included in this document if we later become aware that such statement is not likely to be achieved.

The historical and forward-looking financial information contained in this presentation includes measures marked with an asterisk (*) the first time they are presented within this document that are not based on accounting principles generally accepted in the United States of America (non-GAAP) such as core earnings, core earnings per share, adjusted core earnings and adjusted book value per share. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 in our most recent Form 8-K filed with the SEC and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in the Appendix of the most current Investor Supplement available on our website at investors.horacemann.com.

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Our Foundation: Financially sound company with strong strategy for profitable growth

Longevity	Financial	Niche	Multiline
strength	market	model

• 1945: Founded by Educators for	• $14.0B in assets(1)
Educators to sell auto insurance	• $1.5B in net premium and
• 1961: Began offering 403(b) tax-	contract deposits for 2023
qualified annuities	• $1.6B market
• 1991: Listed on NYSE (HMN)	capitalization(2)
• 2019: Acquired educator-centric	• Highly rated by all four
NTA Life with 50-year history	major rating agencies
serving educators
• 2022: Acquired educator-centric
Madison National Life with 60
years of experience

• Educators have preferred risk profile
• Homogeneous customer set
• Serving about half of school locations(3) in our market footprint

• Business mix balanced between segments
• Ability to provide total household solutions
• Provides earnings diversification

Proud to be the largest multiline financial services company focused on America's educators

(1)	As of December 31, 2023	3
(2)	Based on stock price as of May 3, 2024

1. Includes school buildings and administration locations

Reported first-quarter 2024 core EPS of $0.60; full-year 2024 core EPS guidance unchanged at $3.00-$3.30

First-quarter 2024 results improved nearly three-fold over the prior year reflecting significant improvement in P&C profitability, as well as the continued strength of our diversified business model

$48.63

$49.84

$50.41

202220231Q24

Adjusted book value per share* Accumulated dividend

Core EPS	$3.00 -
	$3.30

$1.63$1.54

2022

2023

2024 guidance

• First-quarter2024 core earnings of $24.8 million, or $0.60 per share
• • P&C segment results significantly improved with first- quarter segment profit of $10.6 million, a $22 million increase compared to the prior year
  • S&GB and L&R segments continued to make strong contribution, however lower variable NII impacted results
• 8% increase in net premiums and contract charges earned
• • P&C earned premiums up 14% over the prior year's first quarter, reflecting rate and non-rate underwriting actions
  • Continued educator household acquisition momentum with strong retail sales growth, P&C sales up 35% compared to the prior year
  • Total revenues up 9% for the quarter with net investment income on the managed portfolio up 7%
• Adjusted book value of $36.52 at quarter end

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On track to reach sustainable double-digit ROE by 2025

Full-year 2024 core EPS guidance unchanged at $3.00 to $3.30, corporate interest expense reflects senior debt issued in September 2023

Diversified business well positioned for 2024 and		2024 enterprise strategic priorities
beyond

• Retail:
• • Property & Casualty segment profit restoration will be the driver of near-term earnings growth
  • Life & Retirement segment continues to provide consistency / ballast to earnings
• Worksite:
• • Supplemental & Group Benefits segment continues to provide intended earnings diversification and growth potential benefits
• Net investment income expected to benefit from rate environment and portfolio positioning

• Restore Property & Casualty segment profitability while reducing earnings volatility
• Drive outsized growth in Worksite
• Position Retail for sustained, profitable household growth
• Ensure Distinctive Service is outcome of all actions

Proud to be the largest multiline financial services company focused on America's educators

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Driven by a noble mission

Mission

We listen to and understand educators and those who serve our community. They are taking care of our children's future. We believe they deserve someone to look after theirs.

Vision

We aspire to be the company of choice to provide financial solutions for all educators and others who serve our communities - to help them protect what they have today and prepare for a successful tomorrow.

Value Proposition

We understand and solve the issues facing educators and others who serve the community, helping them achieve financial success to live better and retire happier.

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Driving shareholder value growth through business diversification and cross-sell

K-12 educator market offers substantial growth potential with additional opportunities in adjacent markets of others who serve the community

Market share has climbed to approximately 15% of K-12 educators in footprint

Total

households now above 1 million

Households after adding

MNL

Households

after adding NTA

Households as of end of 2018

• Business diversification expands customer reach through retail and worksite channels
• • Three organizations with decades of commitment to educators, enhancing reputation and brand recognition of "Horace Mann Companies"
  • Expanded distribution channels allow educators to engage with Horace Mann the way they choose
  • Expanded product set aligns with educator needs throughout life stages
• Positive growth trend with more than
  1 million total households across market footprint
• Homogeneous customer set with preferred risk profile and strong policyholder retention
• Positioned for significant cross-sell opportunities over time between product lines

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Commitment to making a positive impact extends to all stakeholders

Our ESG commitment is ingrained in long-term strategy and day-to-day operations

We are committed to doing our part to protect the environment, including a

pledge to reach net-zero carbon emissions.

We strive to have a significant positive social impact on America's educational community, our employees and the communities in which we live and work.

We are committed to following corporate governance best practices to ensure a financially strong company that operates ethically.

• Published inaugural Task Force on Climate-Related Disclosures (TCFD) report in 2023, detailing our awareness and maintenance of climate-related risks and opportunities
• Reduced absolute Scope 1 and Scope 2 emissions by 55% over base year 2019
• Reducing amount of waste at owned location through active recycling programs, replacing building piping and digitizing processes
• Undertaking DEI initiatives to foster an inclusive culture where individual differences are recognized, respected and appreciated
• Contributed nearly $1 million to charitable causes in 2023 through Horace Mann Educators Foundation and Horace Mann Educators Corporation
• Identified more than $650 million in Public Service Loan Forgiveness opportunities and have found an average of more than $250 in monthly savings on student loan payments for educators since 2016
• Board formally oversees ESG strategy and programs, illustrating the significance of these programs to our company
• Corporate governance policies aligned with long-term shareholder interests
• Incorporated ESG modifier into executive compensation programs to further incent key executives to advance ESG initiatives over the long term

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Strategic emphasis on solutions tailored for educators and others who serve the community at every life stage

				Established
		Early	Career
		Career
	Pre-career					Issues:
					•	Protecting assets
						•	Protecting
			Issues:
					dependents
Issue: Not prepared for		•	Managing student		•	Classroom spend
	•	loan debt
social/economic realities		Don't understand		Solutions:
Solutions:			finances		•	Life insurance
					education
•	Financial literacy		Solutions:		•	Saving for kids'
•	Renters/first auto		•	Student loan			college
			•	guidance		•	Redirect savings
			Financial literacy
			•	education
			Redirect savings

Retirement

Preparing to retire

		Issues:
Issues:	•	How to manage
	retirement income
•	Worried about	•
	ensuring smooth	Need to plan wealth
		transfer
	retirement
•
Unsure of pension	Solutions:
Solutions:	•	Post-retirement
	investment strategies
•	Retirement education	•
•	Retirement modeling	Estate planning

• Adjust risk profile

Issue: Unexpected event could deplete savings

Solution: Supplemental insurance products and group benefits brought to educators via worksite

Ongoing discussion on financial goals throughout life stages

Regular assessment of insurance protection and cost

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Delivering value proposition for educator customers

Focus on Retail 'PDI' provided roadmap for fix-and-build and transformational stages

Serving K-12 Educator Market

Homogenous customer set with attractive

risk profiles

Solutions orientation addresses needs at

every life stage

Focused on Retail "PDI"

Products

• Products designed to meet educators' needs and protect their unique risks

Distribution

• Knowledgeable, trusted distribution tailored to educator preferences

Infrastructure

• Modern, scalable infrastructure that is easy to do business with

Also investing in Worksite products, distribution and infrastructure to serve the broader

municipal market of others who serve their communities.

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