Springfield, Ill.-based Horace Mann Educators Corp., which provides insurance and annuities to educators, announced that its net income for the second quarter and six months ended June 30 was negatively affected by about 15 cents per share due to an increase in property/casualty claims reserves.
Based on recently completed reserve studies, total property/casualty reserves were increased by approximately $10 million compared to March 31. The increase was attributable to adverse development of prior years’ reserves, primarily voluntary automobile.
Net income was also adversely impacted by widespread severe weather experienced in the current period. Second quarter 2003 catastrophe losses of $7.3 million after tax were nearly three times greater than the same period last year and approximately 6 cents per share above expected levels. In addition to these factors, full year net income is expected to reflect lower than anticipated investment income as a result of pressures on the portfolio yield from declining interest rates.
As a result of the above factors, the company has concluded that the previously announced 2003 full year earnings guidance is no longer appropriate. The company will provide additional detail, as well as revised guidance, in its upcoming quarterly earnings release and related earnings conference call.
The company’s second quarter earnings release is scheduled for Aug. 4. Management of Horace Mann will host a conference call Aug. 5, 10 a.m. EDT, to discuss the information announced today and other matters relevant to the company’s second quarter financial results.
The call will be simulcast over the Internet and can be accessed by logging on to a link on the Horace Mann Web site. For those unable to listen to the simulcast, on-demand replay will be available via the Internet through Sept. 5, or telephone through Aug. 12. To listen to a telephone replay of the call, dial 973-341-3080 (PIN: 3989868).
Topics Property Casualty
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