NU Online News Service, July 3, 11:10 a.m. – Horace Mann Educators Corp., Springfield, Corp., estimates it will report about $26 million in investment losses for the second quarter because of problems with notes issued by WorldCom Inc., Clinton, Miss., and other communications companies.
Horace Mann emphasizes that it has $3.3 billion in invested assets, and that the losses on the communications investments will have little effect on the company’s financial condition.
Horace Mann, a multiline insurer that focuses on selling insurance to teachers, says it held $18 million in WorldCom bonds at the beginning of the second quarter. The company lost $8.1 million during the quarter on the sale of $14.6 million of the bonds, then wrote off most of the value of the WorldCom bonds still in its portfolio.
Horace Mann points out that the problems with the WorldCom bonds are affecting the value of other communications bonds.
WorldCom’s woes have probably cut the value of other communications bonds in the Horace Mann portfolio by about $12 million, the company estimates.