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Horace Mann Reports Second Quarter Net Loss

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NU Online News Service, Aug. 7, 2:15 p.m. – Horace Mann Educators Corp., Springfield, Ill., is reporting a $4.9 million net loss for the second quarter on $196 million in revenue, compared with a net profit of $9.7 million on $198 million in revenue for the second quarter of 2000.

The operating loss was $1.4 million, down from an operating profit of $9.6 million.

Horace Mann sells property-casualty insurance as well as life insurance and annuities to teachers. Moves to strengthen property-casualty reserves hurt results, the company says.

The operating results exclude contributions to the reserves and $3.6 million in losses on investments sold during the quarter.

Although annuity operating income fell 7%, to $5.2 million, life insurance operating income rose 42%, to $5.4 million.

Life sales are up 18% for the year, and annuity sales are up 75%, the company reports.

The number of agents has fallen 13%, to 875, because of a shift to a new commission structure, but the remaining agents are significantly more productive than the agents who are gone, the company says.