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Prior Period Consolidated Financial Statements (Tables) | 12 Months Ended
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Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Error Corrections and Prior Period Adjustments | The following tables summarize the effects of adopting LDTI on our Consolidated Financial Statements. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED BALANCE SHEET ($ in millions, except share data)
|  | December 31, 2022 |  | Effect of the Adoption of ASU 2018-12 |  | Reclassifications(1) |  | December 31, 2022
|  | As Reported |  |  |  | As Adjusted
Assets |  |  |  |  |  |  |  |
Total investments |  | $ | 6,587.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,587.6 |
Cash |  | 42.8 |  |  | — |  |  | — |  |  | 42.8 |
Deferred policy acquisition costs |  | 433.1 |  |  | (102.5) |  |  | — |  |  | 330.6 |
Reinsurance balances receivable |  | 506.2 |  |  | (38.2) |  |  | — |  |  | 468.0 |
Deposit asset on reinsurance |  | 2,516.6 |  |  | — |  |  | — |  |  | 2,516.6 |
Intangible assets |  | 185.2 |  |  | — |  |  | — |  |  | 185.2 |
Goodwill |  | 54.3 |  |  | — |  |  | — |  |  | 54.3 |
Other assets |  | 328.7 |  |  | — |  |  | — |  |  | 328.7 |
Separate Account variable annuity assets |  | 2,792.3 |  |  | — |  |  | — |  |  | 2,792.3 |
Total assets |  | $ | 13,446.8 |  |  | $ | (140.7) |  |  | $ | — |  |  | $ | 13,306.1 |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |
Policy liabilities |  |  |  |  |  |  |  |
Investment contract and policy reserves |  | $ | 6,968.0 |  |  | $ | (151.9) |  |  | $ | (6,816.1) |  |  | $ | — |
Future policy benefit reserves |  | — |  |  | — |  |  | 1,718.0 |  |  | 1,718.0 |
Policyholders' account balances |  | — |  |  | — |  |  | 5,260.6 |  |  | 5,260.6 |
Unpaid claims and claim expenses |  | 585.1 |  |  | (2.9) |  |  | (18.2) |  |  | 564.0 |
Unearned premiums |  | 264.2 |  |  | 1.9 |  |  | — |  |  | 266.1 |
Total policy liabilities |  | 7,817.3 |  |  | (152.9) |  |  | 144.3 |  |  | 7,808.7 |
Other policyholder funds |  | 954.0 |  |  | (0.4) |  |  | (144.3) |  |  | 809.3 |
Other liabilities |  | 297.0 |  |  | 2.5 |  |  | — |  |  | 299.5 |
Short-term debt |  | 249.0 |  |  | — |  |  | — |  |  | 249.0 |
Long-term debt |  | 249.0 |  |  | — |  |  | — |  |  | 249.0 |
Separate Account variable annuity liabilities |  | 2,792.3 |  |  | — |  |  | — |  |  | 2,792.3 |
Total liabilities |  | 12,358.6 |  |  | (150.8) |  |  | — |  |  | 12,207.8 |
Preferred stock |  | — |  |  | — |  |  | — |  |  | — |
Common stock |  | 0.1 |  |  | — |  |  | — |  |  | 0.1 |
Additional paid-in capital |  | 502.6 |  |  | — |  |  | — |  |  | 502.6 |
Retained earnings |  | 1,468.6 |  |  | 43.8 |  |  | — |  |  | 1,512.4 |
Accumulated other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |
Net unrealized investment losses on fixed maturity securities |  | (356.9) |  |  | (92.7) |  |  | — |  |  | (449.6) |
Net reserve remeasurements attributable to discount rates |  | — |  |  | 59.0 |  |  | — |  |  | 59.0 |
Net funded status of benefit plans |  | (8.8) |  |  | — |  |  | — |  |  | (8.8) |
Treasury stock, at cost |  | (517.4) |  |  | — |  |  | — |  |  | (517.4) |
Total shareholders’ equity |  | 1,088.2 |  |  | 10.1 |  |  | — |  |  | 1,098.3 |
Total liabilities and shareholders’ equity |  | $ | 13,446.8 |  |  | $ | (140.7) |  |  | $ | — |  |  | $ | 13,306.1 |
(1) The Company has reclassified the presentation of certain information to conform to the current year's presentation. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data)
|  | Year Ended |  | Effect of the Adoption of ASU 2018-12 |  | Year Ended
|  | December 31, 2022 |  |  | December 31, 2022
|  | As Reported |  |  | As Adjusted
Statement of Operations |  |  |  |  |  |
Revenues |  |  |  |  |  |
Net premiums and contract charges earned |  | $ | 1,029.0 |  |  | $ | (1.3) |  |  | $ | 1,027.7 |
Net investment income |  | 400.9 |  |  | — |  |  | 400.9 |
Net investment losses |  | (56.5) |  |  | — |  |  | (56.5) |
Other income |  | 9.5 |  |  | — |  |  | 9.5 |
Total revenues |  | 1,382.9 |  |  | (1.3) |  |  | 1,381.6 |
Benefits, losses and expenses |  |  |  |  |  |
Benefits, claims and settlement expenses |  | 761.6 |  |  | (14.6) |  |  | 747.0 |
Interest credited |  | 177.6 |  |  | (4.2) |  |  | 173.4 |
Operating expenses |  | 315.9 |  |  | (0.4) |  |  | 315.5 |
DAC amortization expense |  | 98.7 |  |  | (10.5) |  |  | 88.2 |
Intangible asset amortization expense |  | 16.8 |  |  | — |  |  | 16.8 |
Interest expense |  | 19.4 |  |  | — |  |  | 19.4 |
Other expense - goodwill and intangible asset impairment |  | 4.8 |  |  | — |  |  | 4.8 |
Total benefits, losses and expenses |  | 1,394.8 |  |  | (29.7) |  |  | 1,365.1 |
Income before income taxes |  | (11.9) |  |  | 28.4 |  |  | 16.5 |
Income tax expense (benefit) |  | (9.3) |  |  | 6.0 |  |  | (3.3) |
Net income |  | (2.6) |  |  | 22.4 |  |  | 19.8 |
Net income per share |  |  |  |  |  |
Basic |  | (0.06) |  |  | 0.54 |  |  | 0.48 |
Diluted |  | (0.06) |  |  | 0.53 |  |  | 0.47 |
Weighted average number of shares and equivalent shares |  |  |  |  |  |
Basic |  | 41.6 |  |  | — |  |  | 41.6 |
Diluted |  | 41.8 |  |  | — |  |  | 41.8 |
Statement of Comprehensive Income (Loss) |  |  |  |  |  |
Net income |  | (2.6) |  |  | 22.4 |  |  | 19.8 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |
Change in net unrealized investment losses on fixed maturity securities |  | (647.6) |  |  | (149.1) |  |  | (796.7) |
Change in net reserve remeasurements attributable to discount rates |  | — |  |  | 445.9 |  |  | 445.9 |
Change in net funded status of benefit plans |  | 1.4 |  |  | — |  |  | 1.4 |
Other comprehensive loss |  | (646.2) |  |  | 296.8 |  |  | (349.4) |
Comprehensive income (loss) |  | $ | (648.8) |  |  | $ | 319.2 |  |  | $ | (329.6) |
HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ($ in millions, except per share data)
|  | Year Ended |  | Effect of the Adoption of ASU 2018-12 |  | Year Ended
|  | December 31, 2021 |  |  | December 31, 2021
|  | As Reported |  |  | As Adjusted
Statement of Operations |  |  |  |  |  |
Revenues |  |  |  |  |  |
Net premiums and contract charges earned |  | $ | 889.6 |  |  | $ | (0.8) |  |  | $ | 888.8 |
Net investment income |  | 422.5 |  |  | — |  |  | 422.5 |
Net investment losses |  | (11.0) |  |  | — |  |  | (11.0) |
Other income |  | 29.0 |  |  | — |  |  | 29.0 |
Total revenues |  | 1,330.1 |  |  | (0.8) |  |  | 1,329.3 |
Benefits, losses and expenses |  |  |  |  |  |
Benefits, claims and settlement expenses |  | 617.7 |  |  | (27.0) |  |  | 590.7 |
Interest credited |  | 164.4 |  |  | (4.4) |  |  | 160.0 |
Operating expenses |  | 251.5 |  |  | (0.5) |  |  | 251.0 |
DAC amortization expense |  | 94.7 |  |  | (4.1) |  |  | 90.6 |
Intangible asset amortization expense |  | 13.0 |  |  | — |  |  | 13.0 |
Interest expense |  | 13.9 |  |  | — |  |  | 13.9 |
Total benefits, losses and expenses |  | 1,155.2 |  |  | (36.0) |  |  | 1,119.2 |
Income before income taxes |  | 174.9 |  |  | 35.2 |  |  | 210.1 |
Income tax expense (benefit) |  | 32.1 |  |  | 7.6 |  |  | 39.7 |
Net income |  | 142.8 |  |  | 27.6 |  |  | 170.4 |
Net income per share |  |  |  |  |  |
Basic |  | 3.40 |  |  | 0.66 |  |  | 4.06 |
Diluted |  | 3.39 |  |  | 0.65 |  |  | 4.04 |
Weighted average number of shares and equivalent shares |  |  |  |  |  |
Basic |  | 42.0 |  |  | — |  |  | 42.0 |
Diluted |  | 42.2 |  |  | — |  |  | 42.2 |
Statement of Comprehensive Income (Loss) |  |  |  |  |  |
Net income |  | 142.8 |  |  | 27.6 |  |  | 170.4 |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |
Effect of adopting ASU 2018-12 |  | — |  |  | (426.6) |  |  | (426.6) |
Change in net unrealized investment losses on fixed maturity securities |  | (75.6) |  |  | (14.7) |  |  | (90.3) |
Change in net reserve remeasurements attributable to discount rates |  | — |  |  | 110.8 |  |  | 110.8 |
Change in net funded status of benefit plans |  | 1.0 |  |  | — |  |  | 1.0 |
Other comprehensive loss |  | (74.6) |  |  | (330.5) |  |  | (405.1) |
Comprehensive income (loss) |  | $ | 68.2 |  |  | $ | (302.9) |  |  | $ | (234.7) |
HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions)
|  |  |  | Year Ended |  | Effect of the Adoption of ASU 2018-12 |  | Year Ended
|  |  |  |  |  | December 31, 2022 |  |  | December 31, 2022
|  |  |  |  |  | As Reported |  |  | As Adjusted
Common stock, $0.001 par value |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |
Additional paid-in capital |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | 502.6 |  |  | — |  |  | 502.6 |
Retained earnings |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | 1,524.9 |  |  | 22.1 |  |  | 1,547.0 |
Net income |  |  |  |  |  | (2.6) |  |  | 22.4 |  |  | 19.8 |
Effect of adopting ASU 2018-12(1) |  |  |  |  |  | — |  |  | (0.7) |  |  | (0.7) |
Dividends per share; 2022, $1.28 per share |  |  |  |  |  | (53.7) |  |  | — |  |  | (53.7) |
Ending balance |  |  |  |  |  | 1,468.6 |  |  | 43.8 |  |  | 1,512.4 |
Accumulated other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | 280.5 |  |  | (330.5) |  |  | (50.0) |
Change in net unrealized investment losses on fixed maturity securities |  |  |  |  |  | (647.6) |  |  | (149.1) |  |  | (796.7) |
Change in net reserve remeasurements attributable to discount rates |  |  |  |  |  | — |  |  | 445.9 |  |  | 445.9 |
Change in net funded status of benefit plans |  |  |  |  |  | 1.4 |  |  | — |  |  | 1.4 |
Ending balance |  |  |  |  |  | (365.7) |  |  | (33.7) |  |  | (399.4) |
Treasury stock, at cost |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | (517.4) |  |  | — |  |  | (517.4) |
Shareholders' equity at end of period |  |  |  |  |  | $ | 1,088.2 |  |  | $ | 10.1 |  |  | $ | 1,098.3 |
(1) See Note 1 to the Consolidated Financial Statements for information regarding ASU 2018-12. HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY ($ in millions)
|  |  |  | Year Ended |  | Effect of the Adoption of ASU 2018-12 |  | Year Ended
|  |  |  |  |  | December 31, 2021 |  |  | December 31, 2021
|  |  |  |  |  | As Reported |  |  | As Adjusted
Common stock, $0.001 par value |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |
Additional paid-in capital |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | 495.3 |  |  | — |  |  | 495.3 |
Retained earnings |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | 1,434.6 |  |  | — |  |  | 1,434.6 |
Net income |  |  |  |  |  | 142.8 |  |  | 27.6 |  |  | 170.4 |
Effect of adopting ASU 2018-12 |  |  |  |  |  | — |  |  | (5.5) |  |  | (5.5) |
Dividends per share; 2021, $1.24 per share |  |  |  |  |  | (52.5) |  |  | — |  |  | (52.5) |
Ending balance |  |  |  |  |  | 1,524.9 |  |  | 22.1 |  |  | 1,547.0 |
Accumulated other comprehensive income (loss), net of tax: |  |  |  |  |  |  |  |  |  |
Beginning balance |  |  |  |  |  | 355.1 |  |  | — |  |  | 355.1 |
Effect of adopting ASU 2018-12 |  |  |  |  |  | — |  |  | (426.6) |  |  | (426.6) |
Change in net unrealized investment losses on fixed maturity securities |  |  |  |  |  | (75.6) |  |  | (14.7) |  |  | (90.3) |
Change in net reserve remeasurements attributable to discount rates |  |  |  |  |  | — |  |  | 110.8 |  |  | 110.8 |
Change in net funded status of benefit plans |  |  |  |  |  | 1.0 |  |  | — |  |  | 1.0 |
Ending balance |  |  |  |  |  | 280.5 |  |  | (330.5) |  |  | (50.0) |
Treasury stock, at cost |  |  |  |  |  |  |  |  |  |
Ending balance |  |  |  |  |  | (493.4) |  |  | — |  |  | (493.4) |
Shareholders' equity at end of period |  |  |  |  |  | $ | 1,807.4 |  |  | $ | (308.4) |  |  | $ | 1,499.0 |
HORACE MANN EDUCATORS CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS ($ in millions)
|  | Year Ended |  | Effect of the Adoption of ASU 2018-12 |  | Year Ended
|  | December 31, 2022 |  |  | December 31, 2022
|  | As Reported |  |  | As Adjusted
Cash flows - operating activities |  |  |  |  |  |
Net income |  | $ | (2.6) |  |  | $ | 22.4 |  |  | $ | 19.8 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |
Net investment losses |  | 56.5 |  |  | — |  |  | 56.5 |
Depreciation and intangible asset amortization |  | 27.6 |  |  | — |  |  | 27.6 |
Share-based compensation expense |  | 8.9 |  |  | — |  |  | 8.9 |
Loss from EMA investments, net of dividends or distributions |  | 18.2 |  |  | — |  |  | 18.2 |
Other expense - goodwill impairment |  | 4.8 |  |  | — |  |  | 4.8 |
Changes in: |  |  |  |  |  |
Insurance liabilities |  | 440.5 |  |  | (106.3) |  |  | 334.2 |
Amounts due under reinsurance agreements |  | (348.2) |  |  | 38.4 |  |  | (309.8) |
Income tax liabilities |  | (17.1) |  |  | 127.6 |  |  | 110.5 |
Other operating assets and liabilities |  | (28.1) |  |  | (81.3) |  |  | (109.4) |
Other, net |  | 11.0 |  |  | (0.8) |  |  | 10.2 |
Net cash provided by operating activities |  | 171.5 |  |  | — |  |  | 171.5 |
Cash flows - investing activities |  |  |  |  |  |
Net cash used in investing activities |  | (214.6) |  |  | — |  |  | (214.6) |
Cash flows - financing activities |  |  |  |  |  |
Net cash provided by financing activities |  | (47.8) |  |  | — |  |  | (47.8) |
Net decrease in cash |  | (90.9) |  |  | — |  |  | (90.9) |
Cash at beginning of period |  | 133.7 |  |  | — |  |  | 133.7 |
Cash at end of period |  | $ | 42.8 |  |  | $ | — |  |  | $ | 42.8 |
Schedule of Selected Quarterly Financial Data | Selected unaudited quarterly financial data is presented below.
($ in millions, except per share data) |  | Three Months Ended
|  | December 31, |  | September 30, |  | June 30, |  | March 31,
2022 |  |  |  |  |  |  |  |
Insurance premiums and contract changes earned |  | $ | 259.1 |  |  | $ | 257.4 |  |  | $ | 255.4 |  |  | $ | 255.8 |
Insurance premiums written and contract deposits |  | 358.2 |  |  | 372.7 |  |  | 359.9 |  |  | 346.2 |
Total Revenues |  | 346.4 |  |  | 342.6 |  |  | 345.9 |  |  | 346.7 |
Net income |  | (16.7) |  |  | 20.4 |  |  | (4.2) |  |  | 20.3 |
Per share information |  |  |  |  |  |  |  |
Basic |  |  |  |  |  |  |  |
Net income |  | $ | (0.40) |  |  | $ | 0.49 |  |  | $ | (0.10) |  |  | $ | 0.48 |
Shares of common stock - weighted average |  | 41.4 |  |  | 41.4 |  |  | 41.8 |  |  | 41.9 |
Diluted |  |  |  |  |  |  |  |
Net income |  | $ | (0.40) |  |  | $ | 0.49 |  |  | $ | (0.10) |  |  | $ | 0.48 |
Shares of common stock and equivalent shares - weighted average |  | 41.4 |  |  | 41.6 |  |  | 41.8 |  |  | 42.1 |
2021 |  |  |  |  |  |  |  |
Insurance premiums and contract changes earned |  | $ | 210.6 |  |  | $ | 225.2 |  |  | $ | 225.6 |  |  | $ | 227.4 |
Insurance premiums written and contract deposits |  | 314.0 |  |  | 346.2 |  |  | 334.2 |  |  | 304.4 |
Total Revenues |  | 331.2 |  |  | 329.4 |  |  | 346.9 |  |  | 321.7 |
Net income |  | 46.9 |  |  | 20.2 |  |  | 54.2 |  |  | 49.1 |
Per share information |  |  |  |  |  |  |  |
Basic |  |  |  |  |  |  |  |
Net income |  | $ | 1.12 |  |  | $ | 0.48 |  |  | $ | 1.29 |  |  | $ | 1.17 |
Shares of common stock - weighted average |  | 42.0 |  |  | 42.0 |  |  | 42.0 |  |  | 41.9 |
Diluted |  |  |  |  |  |  |  |
Net income |  | $ | 1.11 |  |  | $ | 0.48 |  |  | $ | 1.29 |  |  | $ | 1.16 |
Shares of common stock and equivalent shares - weighted average |  | 42.2 |  |  | 42.2 |  |  | 42.2 |  |  | 42.1 |

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