HMN 10-K & 10-Q changes, risk factors and insider trading

We have identified what we believe reflect key significant risks to the organization, and in turn to our shareholders, which are outlined below. Any of the risks described below could result in a significant or material adverse effect on our results of operations or financial condition. In addition to these enumerated risks, we face numerous other strategic, operational and emerging risks that could in the aggregate lead to shortfalls to our long-term goals or add to short-term volatility in our earnings. Additionally, many risk factors are correlated, which could exacerbate the financial impact. The disclosures in this section reflect our beliefs and opinions as to factors that could materially and adversely affect us in the future. References to past events are provided by way of example only and are not intended to be a complete listing or a representation as to whether or not such factors have occurred in the past. The following review of important risk factors should not be construed as exhaustive and should be read in conjunction with the Forward-looking Information section located in Part I - Item 1 of this Annual Report on Form 10-K as well as Part II - Item 8, “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K and other reports and materials we submit to the SEC. The words or phrases believe, anticipate, estimate, project, plan, expect, intend, hope, forecast, evaluate, will likely result or will continue or words or phrases of similar import generally involve forward-looking statements. All of the risks that may affect our financial or operating performance may not be material at this time but may become material in the future.

We also distribute group benefits under agreements with third-party distribution partnerspartners, with distribution highly concentrated in one partner. If we are unable to retain our critical distribution partner or are unable to expand to additional distribution partners, our sales could be adversely impacted.

InWe addition,utilize a diversified distribution approach to help mitigate these risks by enabling us to reach educators where, when, and how they prefer to engage, including through local agents, our call center, digital experiences, and strategic partnerships. A failure to effectively develop or maintain these distribution channels, develop new methods of reaching consumersconsumers, or realize cost efficiencies could impact our ability to grow our business and generate revenuesrevenues, asand new sales could suffer.

Our ability to successfully increase new business in the educator market is largely dependent on our ability to effectively access educators either in their school buildings or through other approaches. While this is especially true for the sale of 403(b) tax-qualified retirement products via payroll deduction and worksiteIndividual directSupplemental sales, any significant decrease in access, either through fewer payroll slots, increased security measures, impacts of state or federal level pension reform initiatives, or for other reasons, could adversely affect the sale of all lines of business and require us to change our traditional approach to worksite marketing and promotion, as well as contact with potential customers. With the current IRS regulations regarding Section 403(b) arrangements, including retirement products, our ability to maintain and increase our share of the 403(b) market, and the access it gives for other product lines, will depend on our ability to successfully compete in this market. Some school districts and benefit consultants have placed emphasis on the relative financial strength ratings of competing companies, as well as low-cost product and distribution approaches, which may put us at a competitive disadvantage relative to other more highly rated insurance companies.

We accounted for the NTA and Madison NationalMNL acquisitions using the acquisition method of accounting, which requires that the assets acquired and liabilities assumed be recognized on our consolidated balance sheet at their respective fair values as of the acquisition date, including recognition of intangible assets. Any excess of the purchase consideration over the fair value of the acquired net tangible and intangible assets is recognized as goodwill.

Actual experience differing significantly from our life and health pricing and reserving assumptions could negatively affect our results of operations and financial condition.

The profitability of our supplemental insurance, group, life insurance, and annuity products depends significantly upon the extent to which our actual experience is consistent with the assumptions used in setting prices for our products and establishing liabilities for our future policy benefits and claims. The premiums we charge and the liabilities we hold for future policy benefits are based on assumptions reflecting several factors, including the amount of premiums we will receive in the future, rate of return on assets we purchase, expected claims, mortality, morbidity, lapse rates and expenses. In addition, for our supplemental products, historical results may not be indicative of future performance due to, among other things, changes in our mix of business, regulatory actions or changes in legal doctrine impacting our products or lines of business, or any number of economic cyclical effects including inflation.

A large-scale pandemic, the occurrence of terrorismterrorism, or military actions may have an adverse effect on our business.

Climate change may adversely affect our financial position, results of operationsoperations, and cash flows.

Further,Legal, it is also possible that the legal, regulatoryregulatory, and social responses to climate change could haveadversely an adverse effect onaffect our financial condition, results of operationsoperations, and cash flows. InRegulatory 2022,and thestakeholder SECfocus proposedon aclimate-related risks and disclosures continues to evolve, which has resulted in, and may continue to result in, new disclosureor rulemodified thatlaws, wouldregulations, require public companies to disclose on several climate-related factors, includingand

climate-relatedreporting risk management and greenhouse gas emissions, among others.requirements. In March 2024, the SEC adopted final rules requiring public companies to discloseenhanced climate-related risks,disclosures; greenhousehowever, gasthe emissions,effectiveness and financial impactsenforcement of climate-relatedthese events.rules However,have enforcement wasbeen stayed in April 2024 due to ongoing legal challengeschallenges, questioningand the SEC'sscope, authority.timing, Asand applicability of Novemberany 2024,such the rulesrequirements remain onuncertain. holdRegardless pending litigation, withof the outcome expectedof this litigation, climate-related regulatory requirements and stakeholder expectations may continue to shapedevelop at the futurefederal, ofstate, climate-relatedand disclosureinternational requirements. The legal proceedings are expected to continue into 2025.levels. We expect that changes in these laws, regulations and proposals could negatively impact our business, including by increasing our legal, compliance and information technology costs. For additional impacts from the regulatory environment, see Part I - Item 1A - Risk Factors - 'Legal, statutory and regulatory developments could adversely impact our business by increasing costs or making our business less profitable."

Cybersecurity threats are evolving in nature and becoming increasingly difficult to detect, and may come from a variety of sources, including organized criminal groups, “hacktivists,” terrorists, and nation state-supported actors. These threats include, among other things, computer viruses, worms, malware, ransomware, denial of service attacks, defective software, credential stuffing, social engineering, phishing attacks, human error, fraud, theft, or improper access by employees or service providers, and other similar threats. Furthermore, cyber-attacks increasingly involve the use of artificial intelligence (AI) and machine learning, with bad actors using these technologies to launch more automated, targeted, and coordinated attacks. Any cybersecurity incident, including system failure, cyber-attacks, security breaches, disruption by malware or other damage, with respect to our or our service providers’ information technology systems, could interrupt or delay our operations, result in a violation of applicable cybersecurity, privacy, data protection or other laws, regulations, rules, standards or contractual obligations, damage our reputation, cause a loss of customers or expose sensitive customer data, give rise to civil litigation, injunctions, damages, monetary fines or other penalties, subject us to additional regulatory scrutiny or notification obligations, and/or increase our compliance costs, any of which could adversely affect our business, financial conditions and results of operations.

We may not be able to anticipate all cyber-attacks, security breaches or other similar incidents, detect or react to such incidents in a timely manner, or adequately remediate any such incident. It may also take considerable time for us to investigate and evaluate the full impact of cyber-attacks, particularly for sophisticated attacks, which may inhibit our ability to provide prompt, full, and reliable information about cybersecurity incidents to our customers, regulators, and the public. In addition, recent disclosure requirements add additional risk that bad actors might use the information with malicious intent, exacerbating the impacts of a breach. While management is not aware of any cyber-attack, security breach or other similar incident that has had a material effect on our operations, there can be no assurances that such an incident that could have a material impact on us will not occur in the future.

We cannot ensure that any limitations of liability provisions in our agreements with clients, service providers and other third parties with which we do business would be enforceable or adequate or otherwise protect us from any liabilities or damages with respect to any claim in connection with a cyber-attack, security breach or other similar incident. In addition, while we maintain insurance that would mitigate the financial loss under such scenarios, providing what we believe to be appropriate policy limits, terms and conditions, we cannot guarantee that our insurance coverage will be adequate for all financial and non-financial consequences from a

similar incident. In addition, while we maintain insurance that would mitigate the financial loss under such scenarios, providing what we believe to be appropriate policy limits, terms and conditions, we cannot guarantee that our insurance coverage will be adequate for all financial and non-financial consequences from a cybersecurity event, that insurance will continue to be available to us on economically reasonable terms, or at all, or that our insurer will not deny coverage as to any future claim.

•competitive total rewards;rewards, including compensation and benefits;

Changes in the U.S. federal administrationor followingstate thelaws, 2024regulations, electionsor may result in new legislative initiatives thatinterpretations could changeaversely our tax burden and have a significant impact onaffect our financial results.condition and results of operations. Legislative, regulatory, or administrative actions may occur with limited advance notice and may apply retroactively. We are unable to predict the likelihood, timing, or scope of any future tax law changes or their potential effects on our business. We continue to monitor developments and assess their potential impact on our operations and financial performance.

Our increasing reliance on artificial intelligence (AI) technologies introduces risks that could impact our business operations, regulatory compliance, financial performance, and customer relationships. These risks include potential inaccuracies in AI-driven processes, increased regulatory scrutiny, unintended biases, data privacy and security concerns, operational disruptions, and broader ethical considerations. AsEvolving AIand regulationsincreasingly complex AI-related laws, regulations, and industry standards continuemay increase our compliance costs and regulatory exposure, and failure to evolve,maintain weeffective must ensure appropriategovernance, oversight, governance, and risk controls tocould mitigatematerially potentialand adverseadversely impacts.affect our business, results of operations, or reputation. While we are committed to implementing AI responsibly and aligning with best practices, there can be no assurance that AI-related risks will not affect our business, reputation, or compliance obligations.

•life insurance, primarily traditional termterm, whole life, and wholeindexed universal life insurance products

•worksiteindividual directsupplemental insurance products, including accident, cancer, heart,critical illness, hospital, and supplemental disability and accident

•employer-sponsoredgroup benefits insurance products, primarily long-termgroup disabilitydisability, group life, and short-termgroup disabilitysupplemental health We market our products primarily to K-12 teachers, administrators and other employees of public schools and their families, whether they engage with Horace Mann directly or through their district/employer, as well as other markets of those who serve the community.

We conduct and manage our business in four reporting segments. The three reporting segments representing the major lines of business, are: (1) Property & Casualty (primarily personal lines of auto and property insurance products), (2) Life & Retirement (primarily tax-qualified fixed and variable annuities as well as life insurance products), and (3) Supplemental & Group Benefits (primarily cancer, heart, hospital, supplemental disability, accident, short-term and long-term group disability, and group term life coverages). We do not allocate the impact of corporate-level transactions to these reporting segments, consistent with the basis for management's evaluation of the results of those segments, but classify those items in the fourth reporting segment, Corporate & Other. Corporate & Other includes corporatecapital raising activities (including debt service,financing and related interest expense), net investment gains (losses) and, certain public company expenses,expenses asand wellother ascorporate-level corporatetransactions debtincluding retirementexpenses costs,related whento applicable.business acquisition activity and termination of defined benefit plans. In addition to these transactions, Corporate & Other also includes legacy commercial claims. See Part II - Item 8, Note 17 of the Consolidated Financial Statements in this Annual Report on Form 10-K for more information.

For 2024,2025, net income increased $57.8$59.3 million compared to the prior year primarily due to improved underlying auto and property loss ratios* and favorable prior years' reserve development, partially offset by higher interest credited..

For 2024,2025, net premiums and contract charges earned increased $88.9$82.4 million asdue to sales* growth and implemented rate and inflation adjustments in the Property & Casualty segment continuesand tostrong implementgrowth ratefrom higher sales* in Supplemental and inflationGroup adjustments to coverage values.Benefits.

Total net investment income in 20242025 increased $0.9$18.6 million, primarily due to higherimproved returnscore onfixed the fixed-income portfolio. Lowerincome, commercial mortgage loan fundsfund incomeresults, wasand partially offset by higher returns onstrong limited partnership interestsreturns. Excluding the reduction in variousnet equityinvestment funds.income due to an immaterial out-of period correction of an error of $10.2 million, net investment income increased $28.8 million. The annualized investment yield on the portfolio excluding limited partnership interests* was as follows:

During 2024,2025, we continued to identify and purchase investments with attractive risk-adjusted yields relative to market conditions without venturing into asset classes or individual securities that would be inconsistent with our overall investment guidelinesguidelines. forThe company continues to deploy capital in accordance with its strategic asset allocation framework, with the coreobjective portfolio.of Wemaintaining alsodiversification fundedwhile balancing risk and return. Investments are allocated across public and private fixed income strategies, commercial mortgage loan fundsfunds, and limited partnership interests inbased lineon withrelative ourvalue intended allocation to this portion of ourconsiderations, portfolio to increase yields while balancing protectioncapacity, and risk.income objectives.

For 2024,2025, benefits, claims and settlement expenses decreased $24.1$33.5 million due to favorablelower priorcatastrophe yearlosses developmentand inimproved 2024underlying loss ratios* in the Property & Casualty segment.

For 2024,2025, interest credited increased $10.2$1.0 million, driven primarily by higher credited rates on the retained annuity blockblock. alongThis withwas highermostly offset by lower interest rates on advances received from the Federal Home Loan Bank of Chicago (FHLB). Theand net dollar contribution from FHLB advances increased year over year as the higherlower interest credited ratesrelated areto moreour thanreinsured offsetannuity by higher earnings from the floating rate securities backing the program.block.

For 2024,2025, DAC amortization expense increased $9.9$13.4 million, primarily due to premium increases in the Property & Casualty segment driving higher DAC asset levels partially offset by lower levels of write-offs in the Life & Retirement segment as annuity persistency has been stable in the current year.levels.

For 2024,2025, interest expense increased $4.9$1.8 million, due to an increase in the interest rate as well as an increase in the level of debt associated with the issuance of the 20232025 Senior Notes that were used to repay the 2015 Senior Notes.

The effective income tax rate on our pretax income, including net investment gains (losses) was 20.1%19.4% and 15.6%20.1% for the years ended December 31, 20242025 and 2023,2024, respectively. Income from investments in tax-advantaged securities decreasedreduced the effective income tax ratesrate by 3.42.4 and 7.53.4 percentage points for 20242025 and 2023,2024, respectively. For the year ended December 31, 2025, the effective tax rate was further reduced by 0.7 percentage points as a result of purchases of transferable tax credits to be utilized for the 2025 tax year.

We record liabilities for uncertain tax filing positions wherewhen it is more likely than not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based on changes in facts or law. We have no unrecorded liabilities from uncertain tax filing positions.

As of December 31, 2024,2025, our federal income tax returns for years prior to 20212022 are no longer subject to examination by the Internal Revenue Service. We do not anticipateexpect any assessments for tax years that remain subject to examination to have a material effect on our financial position or results of operations. On July 4, 2025, the One Big Beautiful Bill Act was enacted into U.S. law, introducing various business tax reforms. We do not expect this legislation to have a material impact on our effective tax rate, financial condition, or results of operations. See Part II - Item 8, Note 11 of the Consolidated Financial Statements in this Annual Report on Form 10-K for further information.

At the time of issuance of this Annual Report on Form 10-K, we estimate that 20252026 full year netcore income will be within a range of $3.60$4.20 to $3.90$4.50 per diluted share, generating a core return on equity* of 10%11%+. These results anticipate the following:

•Property & Casualty segment target profitability of Autolow-mid in the mid-90s90s Combined Ratio and Property at a 90 or below Combined ratio with ~$90 million of catastrophe losses, in line with five-year historical averageslosses

•Approximately $35 million to $40 million in corporate Interest expense and other items included in results for the Corporate & Other segment As described in Critical Accounting Estimates, certain of our significant accounting measurements require the use of estimates and assumptions. As additional information becomes available, adjustments may be required. Those adjustments are charged or credited to net income for the period in which the adjustments are made and may impact actual results compared to our estimates above. Additionally, see forward-looking information in Part I - Items 1 and 1A of this Annual Report on Form 10-K concerning other important factors that could impact actual results. Our projections duedo not include a forecast of net investment gains (losses), which can vary substantially from one period to another and may have a significant impact on net income.

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions based on information available at the time the consolidated financial statements are prepared. These estimates and assumptions affect the reported amounts of our consolidated assets, liabilities, shareholders' equity and net income. Certain accounting estimates are particularly sensitive because of their significance to our consolidated financial statements and because of the possibility that subsequent events and available information may differ markedly from management's judgments at the time the consolidated financial statements were prepared. We have discussed with ourthe Audit Committee the quality, not just the acceptability, of our accounting principles as applied in our financial reporting. The discussions generally included such matters as to the consistency of our accounting policies and their application, and the clarity and completeness of our consolidated financial statements, which include related disclosures. Information regarding our accounting policies pertaining to these topics is located in the Notes to Consolidated Financial Statements set forth in Part II - Item 8 of this Annual Report on Form 10-K.

As part of determining the fair value of fixed maturity securities, including hard-to-value fixed maturity securities, we address the estimation uncertainty in the fair value estimates through our valuation processes. The uncertainty is caused by the availability and observability of the fair value, and more specifically the inputs to fair value, of individual securities. We assess whether individual prices have become stale, are using appropriate methodologies and assumptions, exceed certain acceptable thresholds as compared to previous prices and alternative pricing sources, and how those prices are developed and assessed when provided by valuation service providers. In addition, we may evaluate prices for individual securities by comparing the prices to brokerthird party prices or prices based on internal models.

Individual fixed maturity securities may have variability based on security specific inputs and characteristics, but overall our portfolio duration is approximately 5.66.0 years, meaning a 100 basis point increase in yield would result in an approximately 6% decrease in the fair value of fixed maturity securities. As of December 31, 2024,2025, Level 3 invested assets comprised 9.5%7.8% of our total investment portfolio based on fair value. Invested assets are classified as Level 3 when fair value is determined based on unobservable inputs and those inputs are significant to the determination of fair value.

For fixed maturity securities classified as available for sale, the difference between amortized cost, net of a credit loss allowance (i.e., amortized cost, net) and fair value, net of certain other items and deferred income taxes is reported as a component of accumulated other comprehensive income (loss) (i.e., AOCI) on the Consolidated Balance Sheets and is not reflected in the operating results of any period until reclassified to net income upon the consummation of a transaction with an unrelated third party or when a credit loss allowance transaction is recorded. We evaluate fixed maturity securities where fair value is below amortized cost on a quarterly basis to determine if a credit loss allowance is necessary. These reviews, in conjunction with our investment managers’ quarterly credit reports and relevant factors such as (1) has the security missed any scheduled principal or interest payments in the current quarter; (2) has the security been downgraded to below investment grade by rating agencies or if the security was below investment grade at time of purchase, has the security been downgraded by two or more notches since acquisition; (3) has the security declined in value by more than 10% compared to the prior quarter; (4) has the market yield changed by more than 50 basis points; are all considered in the impairment assessment process.

In addition, duringbeginning in 2024 property & casualty includes loss and loss adjustment reserves and IBNR related to legacy commercial claims. The claims, which include asbestos, environmental, and sexual molestation claims, are related to legacy, long-tail commercial lines policies that were issued as early as the 1960s, under a previous ownership structure in business lines in which we no longer operate.

Favorable prior years' reserve re-estimates increased net income in 20242025 by approximately $18.8 million pretax, primarily the result of favorable loss trends for auto and property for accident years 2024 and prior. During 2024 the Company recognized favorable prior years' reserve re-estimates of $29.5 million pretax, primarily the result of favorable loss trends for auto and property for accident years 2023 and prior. In addition, during 2024 the Company recognized $17.7 million of losses arising from the legacy commercial line exposures. The Company had no reserves for these liabilities prior to 2024. No prior years' reserve development was recorded in 2023.

•Improved underlying property loss ratio* duefor toboth favorableauto frequencyand property

Including a profit of $36.5$37.3 million in the fourth quarter, the Property & Casualty segment’s net income for the full year 20242025 reflected strong underlying results, lower catastrophe losses, and favorable prior years' reserve development in the current year and non-catastrophe loss activity for much of the year.development. Property & Casualty net premiums written were up 13.9%6.5% for the year and segment net investment income was up 21.4%24.1% for the year.

On a reported basis, the 13.31.9 point decrease in the auto combined ratio in 20242025 was mainly attributable to a 9.14.3 point decrease in the auto underlying loss ratio* andpartially offset by a 1.8 point increase due to a lower level of favorable prior year development. Favorable prior years' auto reserve development of $15.2$7.0 million was reported in 2024,2025, reflecting the impact of lower than expected severity.

The reported property combined ratio decreased 19.718.1 points in 20242025 primarily due to a 9.914.7 point decrease in the catastrophe ratio and a 5.6 point decrease in property underlying ratio*. and favorableFavorable prior yearyears' development.property Additionally,reserve theredevelopment of $11.8 million was a 4.7 point decreasereported in 2025, reflecting the catastropheimpact ratioof drivenlower bythan higherexpected premiums.severity.

In 2024,2025, total Property & Casualty net premiums written* increased $94.9$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 despite the rate actions with auto at 85.3%, reflecting a one point decline,83.7% and property flat at 89.6%.88.4%.

In 2024,2025, auto net premiums written* increased $51.6$11.3 million, primarily due to rate actions partially offset by the continuing decline in auto risks in force. For 2024,2025, average auto net premium written and average net premium earned increased 15.7%7.6% and 16.3%,10.6%, respectively. Property and other net premiums written* increased $43.3$39.6 million due to increases in average net premium written and average net premium earned which increased 18.2%12.7% and 17.8%16.3% respectively, asdue to rate actions and inflation adjustments to coverage values continue to take effect.actions. The number of educator risks hascontinues beento be at or above 80% relative to overall risks in force over the past two years.force.

•DeclineIncrease of 4612 basis points in the annualized net interest spread due to higher interest credited with slight decrease inimproved net investment income

•Life Benefits increaseddecreased 4%4.8%

The Life & Retirement segment net income decreasedincreased 21.3%0.9% in 20242025. reflectingExcluding the lowerreduction in net interest margin. Net investment income decreaseddue 1.7%to an immaterial out-of-period correction of an error disclosed in Note 1, net investment income increased $9.6 million for the full-year due to lowerstrong limited partnership returns onand theimproved commercial mortgage loan funds.results. The annualized net interest spread in our fixed annuity business was 172184 basis points for the full year compared to 218172 basis points in 2023,2024, largely due to lowerhigher limited partnership and commercial mortgage loan funds income and higherlower credited rates on the retainedFHLB annuityfunding agreement block. The net dollar contribution from our FHLB funding agreements increased $3.8$1.8 million compared with 2023,2024, with FHLB interest expense reflected in interest credited.

For 2024,2025, net annuity contract deposits* for variable and fixed annuities decreasedincreased 0.8%6.7% for the year to $452.4$482.8 million. Educators continue to begin their relationship with Horace Mann through 403(b) retirement savings products, including the company’s attractive annuity products, which provide encouraging cross-sell opportunities. Cash value persistency remainedrose strongto at 91.4%.91.7%.

We actively manage our interest rate risk exposure, considering a variety of factors, including earned interest rates, credited interest rates and the relationship between the expected durations of assets and liabilities. We estimate that over the next 12 months approximately $416.7 million of the Life & Retirement investment portfolio and related investable cash flows will be reinvested at current market rates.

Interest rates remaineddeclined relativelymodestly elevatedin throughoutthe 2024.second half of 2025. However, the risk of a deep recession or shock to the economy, such as a global pandemic, could result in afurther returnreductions to historically lowin interest rates. The current environment of higher interest rates havehas afforded us the opportunity to invest new insurance cash flows and reinvested cash flows at higher yields, which should be a benefit to net investment income, but the higher interest rates have caused net unrealized investment losses in the portfolios.

As a general guideline, based on our existing policies and investment portfolio, the impact from a 100 basis point decline in the average reinvestment rate would reduce Life & Retirement net investment income by approximately $2.0$2.1 million in year one and $5.9 million in year two,one, reducing the annualized net interest spread by approximately 78 basis points and 21 basis points in the respective periods,points, compared to the current period annualized net interest spread. We could also consider potential changes in rates credited to policyholders, tempered by any restrictions on the ability to adjust policyholder rates due to minimum guaranteed crediting rates.

Measures within this MD&A that are not based on accounting principles generally accepted in the United States of America (non-GAAP) are marked with an asterisk (*) the first time they are presented within this Part I - Item 2. An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 to this Quarterly Report on Form 10-Q and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) in the Appendix to the Company's FirstSecond Quarter 2026 Investor Supplement.

For the three and six months ended MarchJune 31,30, 2026, net income increased $3.0$12.2 million and $15.2 million, respectively, primarily due to improved Property & Casualty segment results reflecting the impact of improved underlying results and lower catastrophe losses.

For the three and six months ended MarchJune 31,30, 2026, net premiums and contract charges earned increased $14.7$14.3 million and $29.0 million as the Property & Casualty segment had higher sales* in the Property business lines and the Company seesexperienced strong growth in our Supplemental and Group Benefits segment.

For the three and six months ended MarchJune 31,30, 2026, total net investment income decreasedincreased $5.2$9.7 million and $4.5 million. The decreaseincrease for the quarter is primarily due to lowercontinued strong returns from our limitedfixed partnershipincome funds.portfolio. The annualized investment yield on the portfolio excluding limited partnership interests* was as follows:

During the three and six months ended MarchJune 31,30, 2026, we continued to identify and purchase investments with attractive risk-adjusted yields relative to market conditions without venturing into asset classes or individual securities that would be inconsistent with our overall investment guidelines. The Company continues to deploy capital in accordance with its strategic asset allocation framework, with the objective of maintaining diversification while balancing risk and return. Investments are allocated across public and private fixed income strategies, commercial mortgage loan funds, and limited partnership interests based on relative value considerations, portfolio capacity, and income objectives.

For the three and six months ended MarchJune 31,30, 2026, total net investment losses decreased by $1.1$5.8 million.million and $6.9 million, respectively. The breakdown of net investment gains (losses) by transaction type were as follows:

For the three and six months ended MarchJune 31,30, 2026, other income increased $2.3$2.0 million.million and $4.3 million, respectively.

For the three and six months ended MarchJune 31,30, 2026, benefits, claims and settlement expenses increased $2.8 million and decreased $6.8$4.0 millionmillion, primarily due to lower catastrophe losses and underlying losses in the Property & Casualty segment as well ashaving lower Lifecatastrophe and underlying losses while the Supplemental and Group Benefits segment benefits increased due to favorablehigher mortality compared to prior year.utilization.

For the three and six months ended MarchJune 31,30, 2026, interest credited increased $1.0$1.9 million.million and $2.9 million, respectively.

Under the deposit method of accounting, the interest credited on the reinsured annuity block continues to be reported. The average deferred annuity credited rate, excluding the reinsured annuity block, was 3.4% and 3.3% as of MarchJune 31,30, 2026 and MarchJune 31,30, 2025, respectively.

For the three and six months ended MarchJune 31,30, 2026, operating expenses increased $12.7$11.6 million and $24.3 million, respectively, reflecting higher expenses related to our Early Retirement Offering and acquisition expenses in the Corporate & Other segment.

For the three and six months ended MarchJune 31,30, 2026, DAC amortization expense increased $2.7$2.1 million and $4.8 million, primarily due to premium increases in the Property & Casualty segment driving higher commission and underwriting expenses which increase DAC asset levels.

For the three and six months ended MarchJune 31,30, 2026, intangible asset amortization expense was flat with prior year.

For the three and six months ended MarchJune 31,30, 2026, interest expense increased $0.6$1.0 million and $1.6 million, respectively, due to an increase in the level of debt associated with the issuance of the 2025 Senior Notes that were used to repay the 2015 Senior Notes.

The effective income tax rate on our pretax income, including net investment gains (losses), was 17.9%16.5% and 19.6%19.5% for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. Income from investments in tax-advantaged securities reduced the effective income tax rates by 2.11.5 and 2.32.4 percentage points for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The effective tax rate was further reduced by 1.74.0 and 0.20.5 percentage points for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively, as a result of purchases of transferable tax credits to be utilized on the federal income tax returns.returns for the 2026 and 2025 tax years.

We record liabilities for uncertain tax filing positions where it is more likely than not that the position will not be sustainable upon audit by taxing authorities. These liabilities are reevaluated routinely and are adjusted appropriately based on changes in facts or law. We have no unrecorded liabilities fromrelated to uncertain tax filing positions.

As of MarchJune 31,30, 2026, our federal income tax returns for years prior to 2022 are no longer subject to examination by the Internal Revenue Service. We do not expect any assessments for tax years that remain subject to examination to have a material effect on our financial position or results of operations.

The following discussion provides outlookforward-looking information for our results of operations and capital position.

•Supplemental & Group Benefits segment target blended benefits ratio of 39%~42%

•Valuation of liabilities for property and casualty unpaid claims and claim expense reserves Compared to December 31, 2025, as of MarchJune 31,30, 2026, there were no material changes to accounting policies for areas most subject to significant management judgments identified above.

For the three and six months ended MarchJune 31,30, 2026, net income reflected the following factors:

•HigherLower net investment income for the quarter driven by limited partnership portfolio The following table provides certain financial information for Property & Casualty for the periods indicated.

The Property & Casualty segment three and six month net income of $39.0$25.8 million and $64.8 million, as well as the three month and six month combined ratio of 83.3%,89.6% and 86.5%, reflected improved current year underlying results and catastrophe losses below prior year.

The current quarter reflects an increase in net premiums written* of 4.8%,0.1%, with average written premiums* rising for both property and auto. Sales* were steadylower for the quarter, down 1.8%3.6% from the prior year, and household retention remains in line with expectations.

The three and six month loss ratioratios decreased 5.27.1 and 6.2 points from last year reflecting higher average premiums and lower catastrophe losses. In addition, $5.0$6.6 million and $11.6 million of net favorable prior years' reserve development for the three and six months reduced the loss ratio 2.53.2 points.and 2.8 points, respectively. Catastrophe losses for the quarter were $11.3$24.2 million, pretax, contributing 5.611.8 points to the combined ratio. In total, there were 2122 events designated as catastrophes by Property Claims Services (PCS) in this year’s firstsecond quarter. The lower catastrophe losses are driven by lower frequency and severity of policyholder claims. In the firstsecond quarter of 2025, catastrophe losses were $16.4$29.7 million, pretax, contributing 8.515.0 points to the combined ratio, from 1820 PCS events.

The year-over-year increase in average written premiums* for auto policies in the firstsecond quarter was 5.4%,2.8%, while retention remained stable. The firstsecond quarter auto underlying loss ratio* was 64.2%,65.1%, improving 2.83.6 points from the prior year quarter, reflecting the benefit of higher average earned premium. The firstsecond quarter reported loss ratio benefited 2.51.6 points from favorable prior years' reserve development.

The year-over-year increase in average written premiums* for property policies was 8.6%7.4% in the firstsecond quarter, as rate increases and inflation adjustments to coverage values continue to take effect. Policyholder retention remains stable. The firstsecond quarter property and other underlying loss ratio* was 36.4%,36.0%, a 0.11.4 point decrease from prior year reflecting the increase in average earned premium*. The firstsecond quarter reported loss ratio benefited 2.55.6 points from favorable prior years' reserve development.

For the three and six months ended MarchJune 31,30, 2026, net income reflected the following factors:

•Higher premiums and contract charges earned and other income in Retirement due to higher assets under administration

•Annualized quarterly net interest spread on fixed annuities downup 3735 basis points

•Higher benefits in Life were offset by a favorable market risk benefit adjustment in Retirement The following table provides certain information for Life & Retirement for the periods indicated.

Horace Mann currently has $5.8$6.2 billion in retained annuity assets under management, including $2.2 billion of fixed annuities, $3.2$3.6 billion of variable annuities and $0.4 billion of fixed indexed annuities. Assets under administration, which includes Horace Mann Retirement Advantage® and other advisory and recordkeeping assets, were up due to the effect of equity market performance on assets.

As a general guideline, based on our existing policies and investment portfolio, the impact from a 100 basis point decline in the average reinvestment rate would reduce Life & Retirement net investment income by approximately $2.1 million in year one, reducing the annualized net interest spread on fixed annuities by approximately 8 basis points, compared to the current period annualized net interest spread on fixed annuities. We could also consider potential changes in rates credited to policyholders, tempered by any restrictions on the ability to adjust policyholder rates due to guaranteed minimum crediting rates.

For the three and six months ended MarchJune 31,30, 2026, net income reflected the following factors:

•Higher benefits ratio for Individual Supplemental and Group Benefits The following table provides certain information for Supplemental & Group Benefits for the periods indicated.

Supplemental & Group Benefits segment net income for the three and six months ended MarchJune 31,30, 20262026, of $9.9$8.5 million and $18.4 million, was up $0.6 million and down $1.3$0.7 million.million, respectively. The Individual Supplemental benefits ratio increasedwas 2.1modestly higher, 1.5 points and 1.8 points for the three and six months ended due to higher utilization consistent with our long-term expectations. The Group Benefits benefits ratio decreasedincreased 1.417.4 points dueand to7.8 higherpoints premiumsfor the three and six months ended driven by higher sales*. Operating expense increase reflects inflation and investments being made instrong growth initiativesmomentum, andparticular infrastructure.within our Paid Family Medical Leave enhancement.

Total sales* for the three and six months ended MarchJune 31,30, 2026 increased $8.6$2.5 million and $11.1 million due to our strategic investments to drive growth. Individual Supplemental products increased $0.6$0.3 million and $0.9 million and Group Benefits products increased $8.0$2.2 million. Individual Supplemental sales increased 11.3%million and Group$10.2 Benefits sales increased 258.1%.million. Variability in sales between comparable periods is typical for Group Benefits given the relatively small scale and the longer sales cycle of this business. Persistency remains strong for the segment.

For the three and six months ended MarchJune 31,30, 2026, net investment income from our managed investment portfolio decreasedincreased $4.4$10.5 million and $6.1 million, primarily due to lowerhigher returns in limitedthe partnerships.fixed-income portfolios. The investment yield on the portfolio excluding limited partnership interests was 4.5%,4.6%, with new money yields continuing to exceed portfolio yields in the core fixed maturity securities portfolio.

For the three and six months ended MarchJune 31,30, 2026, pretax net investment losses decreased $1.1$5.8 million.million and $6.9 million, primarily due to lower net investment losses from routine portfolio management activities, including lower impairment losses.

Pretax net unrealized investment losses on fixed maturity securities as of MarchJune 31,30, 2026 increased $55.2$46.4 million, or 17.7%,14.9%, compared to December 31, 2025, primarily due to an increase of 1530 basis points in US Treasury rates and investment-grade credit spreads that were wider by 11 basis points.rates.

(1)The All other corporates category contains 2221 additional industry sectors. Telecommunications,Natural Gas, Manufacturing, Entertainment, Food and Beverage, Retail, Leisure and EntertainmentRetail represented $198.6$223.7 million of fair value at MarchJune 31,30, 2026, with the remaining 1716 sectors each representing less than $29.1 million.

(2)At MarchJune 31,30, 2026, 100% were investment grade, with an overall credit rating of AA, and the positions were well diversified by property type, geography and sponsor.

(3)Holdings are geographically diversified, 41.8%41.2% are tax-exempt and 78.1%77.4% are revenue bonds tied to essential services, such as mass transit, water and sewer. The overall credit quality of the municipal bond portfolio was AA- at MarchJune 31,30, 2026.

As of MarchJune 31,30, 2026, our diversified fixed maturity securities portfolio consisted of 4,0634,051 investment positions, issued by 2,7032,711 entities, and totaled approximately $5.8 billion in fair value. This portfolio was 97.7%97.6% investment grade, based on fair value, with an average quality rating of A+. Our investment guidelines target single corporate issuer concentrations to 0.5% of invested assets for AAA or AA rated securities, 0.35% of invested assets for A or BBB rated securities, and $5.0 million for non-investment grade securities.

The following table presents the composition and fair value of our fixed maturity and equity securities portfolios by rating category. As of MarchJune 31,30, 2026, 96.1%96.0% of these combined portfolios were investment grade, based on fair value, with an overall average quality rating of A+. We have classified the entire fixed maturity securities portfolio as available for sale, which is carried at fair value.

(2)At MarchJune 31,30, 2026, the AA-ratedAA rated fair value amount included $312.9$313.2 million of U.S. Government and federally sponsored agency securities and $668.2$651.2 million of mortgage-backed and other asset-backed securities issued by U.S. Government and federally sponsored agencies.