Horace Mann Educators Corporation

MetLife reported second-quarter revenues of $19.08 billion, up 6.4% year on year but 2.2% below analyst expectations, in a mixed quarter for life insurance stocks. The 12 life insurance companies tracked by the publication saw aggregate revenues miss consensus estimates by 8.2%, and their share prices have declined an average of 2.5% since reporting. MetLife's stock fell 1.5% after the results and currently trades at $94.80. Horace Mann Educators posted the strongest quarter with revenues of $443.5 million, up 7.7% year on year and in line with estimates, while Brighthouse Financial was the weakest with revenues of $2.10 billion, down 2.4% year on year and 2% below expectations.

Horace Mann Educators Corporation and Medical Mutual of Ohio have entered into two separate agreements under which Horace Mann will acquire Employee Services LLC and Reserve National Insurance Company, and reinsure MedMutual Life Insurance Company's group life and disability business. The transactions add nearly $200 million in annual revenue, serve more than one million covered lives across approximately 7,000 employer relationships, and add over 1,000 agents and brokers. The total net purchase price is approximately $240 million, financed through excess capital and borrowings under Horace Mann's existing revolving credit facility. The ESI transaction is expected to close in the fourth quarter of 2026, while the RNIC acquisition and reinsurance deal are expected to close in the first quarter of 2027, subject to customary closing conditions and regulatory approvals. Horace Mann expects the deals to be immediately accretive to core earnings per share and shareholder return on equity.

Zacks Equity Research has identified Oscar Health, Radian Group, CNO Financial Group, Pelagos Insurance Capital Ltd., and Horace Mann Educators as multiline insurance stocks to buy, citing product diversification and digitalization as key industry drivers. The Zacks Multiline Insurance industry currently carries a Zacks Industry Rank of 169, placing it in the bottom 32% of 247 industries, with analysts revising aggregate earnings estimates downward by 6.4% for the current year. Despite this, the report points to diversified portfolios, merger and acquisition activity, and increased technology adoption as trends shaping the industry's future. Oscar Health and Pelagos Insurance Capital hold a Zacks Rank of 1, or Strong Buy, while Horace Mann Educators, CNO Financial Group, and Radian Group carry a Zacks Rank of 2, or Buy. The industry has gained 4.8% year to date, underperforming the Finance sector's 5.9% rise and the S&P 500's 9.7% increase.