Educator-focused insurance company Horace Mann Educators (NYSE:HMN) missed Wall Street’s revenue expectations in Q4 CY2025, but sales rose 6.3% year on year to $434.8 million. Its non-GAAP profit of $1.21 per share was 2.8% above analysts’ consensus estimates.
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Horace Mann Educators (HMN) Q4 CY2025 Highlights:
- Revenue: $434.8 million vs analyst estimates of $446.2 million (6.3% year-on-year growth, 2.5% miss)
- Adjusted EPS: $1.21 vs analyst estimates of $1.18 (2.8% beat)
- Book Value per Share: $36.47 vs analyst estimates of $40.58 (15.8% year-on-year growth, 10.1% miss)
- Market Capitalization: $1.83 billion
Company Overview
Founded in 1945 and named after the 19th-century education reformer known as the "father of American public education," Horace Mann Educators (NYSE:HMN) is an insurance company that specializes in providing auto, property, life, and retirement products tailored for educators and other public service employees.
Revenue Growth
Insurers earn revenue three ways. The core insurance business itself, often called underwriting and represented in the income statement as premiums earned, is one way. Investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities is the second way. Fees from various sources such as policy administration, annuities, or other value-added services is the third. Unfortunately, Horace Mann Educators’s 5.3% annualized revenue growth over the last five years was tepid. This was below our standard for the insurance sector and is a poor baseline for our analysis.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Horace Mann Educators’s annualized revenue growth of 6.8% over the last two years is above its five-year trend, but we were still disappointed by the results. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Horace Mann Educators’s revenue grew by 6.3% year on year to $434.8 million, missing Wall Street’s estimates.
Net premiums earned made up 71.2% of the company’s total revenue during the last five years, meaning insurance operations are Horace Mann Educators’s largest source of revenue.
Net premiums earned commands greater market attention due to its reliability and consistency, whereas investment and fee income are often seen as more volatile revenue streams that fluctuate with market conditions.
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Book Value Per Share (BVPS)
Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float – premiums collected but not yet paid out – are invested, creating an asset base supported by a liability structure. Book value captures this dynamic by measuring:
- Assets (investment portfolio, cash, reinsurance recoverables) - liabilities (claim reserves, debt, future policy benefits)
BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.
Horace Mann Educators’s BVPS declined at a 3.3% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 12.6% annually over the last two years from $28.78 to $36.47 per share.
Over the next 12 months, Consensus estimates call for Horace Mann Educators’s BVPS to grow by 20.6% to $40.58, elite growth rate.
Key Takeaways from Horace Mann Educators’s Q4 Results
The company's revenue missed and its book value per share also fell short of Wall Street’s estimates. On the other hand, EPS managed to beat. Overall, this was a mixed quarter. The stock remained flat at $44.90 immediately after reporting.
Is Horace Mann Educators an attractive investment opportunity right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).