{"id":885979,"date":"2025-09-12T11:51:06","date_gmt":"2025-09-12T15:51:06","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-horace-mann-educators-corporation-and-its-subsidiaries\/"},"modified":"2025-09-12T11:51:06","modified_gmt":"2025-09-12T15:51:06","slug":"am-best-affirms-credit-ratings-of-horace-mann-educators-corporation-and-its-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-horace-mann-educators-corporation-and-its-subsidiaries\/","title":{"rendered":"AM Best Affirms Credit Ratings of Horace Mann Educators Corporation and Its Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of Horace Mann Educators Corporation and Its Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201ca\u201d (Excellent) of the property\/casualty (P\/C) and life\/health (L\/H) members of Horace Mann Educators Corporation (HMEC) (headquartered in Springfield, IL) [NYSE: HMN]. Additionally, AM Best has affirmed the Long-Term ICR of \u201cbbb\u201d (Good) of HMEC and the associated Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of the subsidiaries and Long-Term IRs.)<\/p>\n

\nThese ratings reflect HMEC\u2019s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).<\/p>\n

\nHMEC\u2019s Long-Term ICR is driven by the group\u2019s very strong balance sheet strength assessment, which is supported by its strongest risk-adjusted capitalization, as measured by Best\u2019s Capital Adequacy Ratio (BCAR), and utilization of highly rated reinsurers with a strong level of reinsurance catastrophe protection. The group\u2019s capital position reflects its favorable liquidity posture and overall financial flexibility with access to capital markets with financial leverage and interest coverage metrics that are at levels acceptable for its current rating. However, these positive factors are offset partially by restricted fungibility of capital as excess capital rests within the operating entities and a higher allocation to less liquid asset classes, and structured securities, along with lower-rated investment-grade bonds.<\/p>\n

\nHMEC benefits from a well-diversified operating profile within P\/C, life and supplemental benefit business segments. Overall results have been positive over the recent five-year period, although the group has experienced volatility in its P\/C operations, albeit improving recently. The P\/C segment\u2019s results have struggled in years past as it was impacted by severe weather events, as well as rising loss costs, largely driven by inflation in the auto and property lines of business. Strong net investment income helped offset losses in recent years and continues to boost overall earnings. Significant rate and non-rate underwriting actions within the auto and property lines have contributed to significant improvements in overall operating results. Life and supplemental benefit results have been favorable over the three-year period and remain stable.<\/p>\n

\nHMEC continues to maintain a strong market position within its niche through its name brand recognition within the educator\u2019s market and policyholder loyalty. These advantages provide cross marketing opportunities between P\/C product lines, as well as life, annuity and supplemental products. The group operates in target market competing with a number of national providers of auto, home, and life. The group\u2019s business is diversified on a product level and a geographic level as the multitude of products offered showcase moderate diversification, while the top five states make up less than 40% of premiums.<\/p>\n

\nThe group operates under a formal ERM framework, which is appropriate for the scope and complexity of its risk profile. Within HMEC, ERM is an ongoing assessment process used to identify, manage and\/or mitigate risk, which continues to influence the company\u2019s strategy and direction. The group employs an extensive reinsurance program with high quality reinsurers. Reinsurance is purchased at the operating entity level and tailored to its specific business segment.<\/p>\n

\nThe FSR of A (Excellent) and the Long-Term ICRs of \u201ca\u201d (Excellent) have been affirmed with stable outlooks for the following P\/C and L\/H subsidiaries of Horace Mann Educators Corporation:<\/p>\n