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.