July 19, 2012
/PRNewswire/ -- Horace Mann Educators Corporation (NYSE: HMN) estimates its financial impact from weather-related catastrophe activity during the three months ended
June 30, 2012
$28 million to $30 million
before tax (approximately
$0.44 to $0.47
per share after tax). This range includes the estimated incurred losses and loss adjustment expenses from 13 catastrophe events that occurred during the quarter, the most significant being a prolonged stretch of severe weather in the central and eastern U.S. that occurred at the end of June. The events also included hail and other storm activity in late April and in the month of May. The company's catastrophe losses for the three months ended
June 30, 2011
before tax, or
per share after tax.
"The significant weather-related claims from the severe storm system at the end of June, combined with a number of less costly weather events in April and May, resulted in a level of catastrophe losses significantly higher than our expectations," said
Peter H. Heckman
, President and Chief Executive Officer. "As always,
clients can be assured that we are here to help them through the claims process and will make every effort to ensure timely and equitable claims settlements."
"Excluding catastrophes, underlying earnings, in total, continue to meet our expectations in 2012; however, as a result of the significant level of catastrophe losses in the quarter, we are lowering our estimate of full-year 2012 net income before realized investment gains and losses to between
$1.55 and $1.75
per share from our previously estimated range of
$1.80 to $2.00
per share," stated Heckman. "This estimate assumes that catastrophe losses for the remaining six months of the year will be in a more normal range -- consistent with our initial expectations."
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