Horace Mann Educators Corp. (NYSE:HMN) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 11:00 am ET


Horace Mann Educators Corp. (NYSE:HMN) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to Horace Mann's Third Quarter Investor call. [Operator Instructions] .After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Heather Wietzel, Vice President, Investor Relations. Please go ahead.

Heather J. Wietzel

Thank you and good morning everyone. Welcome to Horace Mann's discussion of our third quarter 2019 results. Yesterday, we issued our earnings release and investor supplement. Copies are available on the investor page of our website along with our investor presentation, which was posted this morning.

Our speakers today are Marita Zuraitis, President and Chief Executive Officer; and Bret Conklin, Executive Vice President and Chief Financial Officer. They are in two different locations. Joining Marita in Bermuda for the Q&A is Bill Caldwell, EVP Product. Bret is here in Springfield, along with Matt Sharpe EVP Strategy and Business Development; Wade Rugenstein, EVP Operations and Ryan Greenier, VP Corporate Finance.

Before turning it over to Marita, I want to note that our presentation today includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. The company cautions investors that any forward-looking statements include risks and uncertainties and are not guarantees of future performance. These forward-looking statements are based on management's current expectations and we assume no obligation to update them.

Actual results may differ materially due to a variety of factors, which are described in our news release and SEC filings. In our prepared remarks, we use some non-GAAP measures. Reconciliations of these measures to the most comparable GAAP measures are available in our news release.

I'll turn the call over to Marita.

Marita Zuraitis

Thanks, Heather. Good morning everyone and welcome to our call. Last night, we reported third quarter core earnings of $0.64 per diluted share, more than double last year's result. Our annualized core ROE was 8.3%. These results show that our deliberate actions to enhance our value proposition to the education market, including important strategic transactions are taking hold. We are on a path to accelerating shareholder value creation and substantially growing our education market share. I'll talk more in a minute about how we're leveraging our leadership position in the education market to become the financial services company of choice for all educators. But first let me touch on a few highlights of this transformative year, most notably NTA became a part of Horace Mann at the start of the third quarter as the supplemental segment.

In its first three months, NTA contributed $6.9 million in earnings with a solid pre-tax profit margin, in line with the level of profitability we anticipated. As we've discussed, the stable contribution of the supplemental segment will provide important sales and earnings diversification. We're very pleased with the first stages of our integration efforts, which have been bolstered by the fact that both companies are working from the same foundation, a mission centric culture dedicated to serving educators.

As we've noted before, we are undertaking a thoughtful