Educator-focused insurance company Horace Mann Educators (NYSE: HMN) beat Wall Street’s revenue expectations in Q3 CY2025, with sales up 6.4% year on year to $438.5 million. Its non-GAAP profit of $1.36 per share was 22.2% above analysts’ consensus estimates.
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Horace Mann Educators (HMN) Q3 CY2025 Highlights:
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
Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services. Unfortunately, Horace Mann Educators’s 5.3% annualized revenue growth over the last five years was tepid. This fell short of our benchmark for the insurance sector and is a rough starting point 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 8% over the last two years is above its five-year trend, suggesting some bright spots. 
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 reported year-on-year revenue growth of 6.4%, and its $438.5 million of revenue exceeded Wall Street’s estimates by 0.9%.
Net premiums earned made up 71% of the company’s total revenue during the last five years, meaning insurance operations are Horace Mann Educators’s largest source of revenue.
Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.
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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 per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less 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 because it reflects long-term capital growth and is harder to manipulate than more commonly-used metrics like EPS.
Horace Mann Educators’s BVPS declined at a 3.2% annual clip over the last five years. However, BVPS growth has accelerated recently, growing by 17.1% annually over the last two years from $25.74 to $35.31 per share.
Over the next 12 months, Consensus estimates call for Horace Mann Educators’s BVPS to grow by 20.4% to $39.58, elite growth rate.
Key Takeaways from Horace Mann Educators’s Q3 Results
It was good to see Horace Mann Educators beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its book value per share missed. Overall, this print was mixed. The stock remained flat at $45.24 immediately following the results.
Big picture, is Horace Mann Educators a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
