[Management View]
Horace Mann reported a record core EPS of $1.36 for Q3 2025, a 64% increase YoY, with a trailing twelve-month core ROE of 13.8%. Management emphasized strong performance across all business segments, allowing for accelerated investments in growth while maintaining expense discipline.

[Outlook]
The company raised its full-year 2025 core EPS guidance to $4.5-$4.7, factoring in strategic investments and non-recurring expenses. Future plans include mid-single-digit rate increases for auto and high-single-digit for property, aligning with expected loss trends.

[Financial Performance]
Q3 2025 saw a 6% increase in total revenues, with individual supplemental sales up 40% and record sales in Group Benefits. Property & Casualty combined ratio improved to 91.4% YTD, with pretax catastrophe losses reduced to $56 million from $91 million.

[Q&A Highlights]
Question 1: How do you view the growth outlook on a policy count basis in both auto and home?
Answer: Growth is not seen as an on-and-off switch but as a sustained effort across all business lines. Sales momentum is evident with individual supplemental up 41%, group up 91%, and auto up 4%. Retention remains strong, with property nearly 90% and auto at 84%.

Question 2: Can you elaborate on the EPS guidance and strategic investments planned?
Answer: The updated guidance of $4.5 to $4.7 implies $1 to $1.2 for Q4. The guidance reflects year-to-date outperformance and planned strategic investments. Last year's Q4 was unusually strong due to one-time items, and the current guidance reflects a normalized growth rate.

Question 3: What are your capabilities in lead management systems for supplemental and group benefits?
Answer: The company is investing in lead generation, expanding distribution, and modernizing infrastructure. A lead management partner is in place, and the focus is on sustained growth in the educator segment.

Question 4: Is there an opportunity for a larger partnership with an alternative asset manager?
Answer: The company prefers a best-of-breed model, working with core portfolio managers and specialized managers. Current products meet the conservative investment preferences of the educator market, with no immediate demand for more exotic products.

Question 5: How effective have catastrophe mitigation efforts been, and what are the expectations for 2026?
Answer: Catastrophe mitigation efforts are working as designed, but in a light cat year, full benefits are hard to quantify. For 2026, no significant decline in cat losses is expected, and the company will rely on probabilistic models for estimates.

[Sentiment Analysis]
Analysts showed interest in growth strategies and EPS guidance, with management providing detailed responses. The tone was positive, reflecting confidence in strategic initiatives and financial performance.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------------|---------|---------|
| Core EPS | $1.36 | $0.83 |
| Total Revenues | +6% | N/A |
| Individual Supplemental Sales | +40% | N/A |
| Group Benefits Sales | Record | N/A |
| Property & Casualty Combined | 91.4% | N/A |
| Pretax Catastrophe Losses | $56M | $91M |

[Risks and Concerns]
Potential risks include the unpredictability of catastrophe losses and the impact of increased competition in the auto insurance market. Management is focused on maintaining profitability through strategic rate increases and expense management.

[Final Takeaway]
Horace Mann's Q3 2025 results demonstrate strong financial performance and strategic growth across all business segments. The company is well-positioned to achieve its long-term financial targets, with a focus on sustained profitable growth and shareholder value creation. Management's confidence is supported by robust sales momentum, effective expense management, and strategic investments in growth initiatives.