Horace Mann Educators Corp.

Reporting Segments - Property & Casualty for further details regarding catastrophe losses for the past five years. Including a profit of $37.3 million in the fourth quarter, the Property & Casualty segment’s net income for the full year 2025 reflected strong underlying results, lower catastrophe losses, and favorable prior year development. Property & Casualty net premiums written were up 6.5% for the year and segment net investment income was up 24.1% for the year. On a reported basis, the 1.9 point decrease in the auto combined ratio in 2025 was mainly attributable to a 4.3 point decrease in the auto underlying loss ratio* partially offset by a 1.8 point increase due to a lower level of favorable prior year development. Favorable prior years' auto reserve development of $7.0 million was reported in 2025, reflecting the impact of lower than expected severity. The reported property combined ratio decreased 18.1 points in 2025 primarily due to a 14.7 point decrease in the catastrophe ratio and a 5.6 point decrease in property underlying ratio*. Favorable prior years' property reserve development of $11.8 million was reported in 2025, reflecting the impact of lower than expected severity. In 2025, total Property & Casualty net premiums written* increased $50.9 million as rate actions and inflation adjustments to coverage values for property more than offset declines in risks in force. Retention remained strong with auto at 83.7% and property at 88.4%.