false--12-31FY20182018-12-310000850141YesfalseLarge Accelerated Filer1792200000HORACE MANN EDUCATORS CORP /DE/falsefalseNoYesHMNP1YP5Y11M23DP0YP9M25DP8Y2M8DP6Y4M24D41.9517.010042.9531.0144.7542.9541.9517.32156291598130368222297313292212382142203208306145438730295000011632000001.061.101.140.0010.0010.0010.0010.00175000000750000007500000075000000654392456543924565820369658203692500000000.0450547000488000340.0010.0010.0010.00110000001000000100000000002500000044.7522.6941.9533.4141.9517.0138.0528.88P7Y6MP9Y2M8DP9M25DP8Y2M8DP6Y8M5D41.9517.0144.7517.322397152224672932247213722472137224850484248504847014104844012911219840001772000 0000850141 2018-01-01 2018-12-31 0000850141 2017-06-30 0000850141 2019-02-15 0000850141 2018-06-30 0000850141 2018-12-31 0000850141 2017-12-31 0000850141 2017-01-01 2017-12-31 0000850141 2016-01-01 2016-12-31 0000850141 us-gaap:TreasuryStockMember 2017-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0000850141 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0000850141 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0000850141 us-gaap:CommonStockMember 2016-12-31 0000850141 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0000850141 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0000850141 us-gaap:TreasuryStockMember 2016-12-31 0000850141 us-gaap:CommonStockMember 2018-12-31 0000850141 us-gaap:RetainedEarningsMember 2017-12-31 0000850141 us-gaap:TreasuryStockMember 2018-12-31 0000850141 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0000850141 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0000850141 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0000850141 us-gaap:TreasuryStockMember 2015-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0000850141 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000850141 2016-12-31 0000850141 us-gaap:CommonStockMember 2017-12-31 0000850141 us-gaap:RetainedEarningsMember 2015-12-31 0000850141 us-gaap:RetainedEarningsMember 2016-12-31 0000850141 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0000850141 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0000850141 us-gaap:CommonStockMember 2015-12-31 0000850141 us-gaap:RetainedEarningsMember 2018-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0000850141 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000850141 2015-12-31 0000850141 us-gaap:GuaranteedMinimumDeathBenefitMember 2018-12-31 0000850141 us-gaap:GuaranteedMinimumDeathBenefitMember 2017-12-31 0000850141 hmn:RetirementMember 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-01-01 2016-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-01-01 2017-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2016-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2016-01-01 2016-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2015-12-31 0000850141 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2015-12-31 0000850141 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0000850141 hmn:RetirementAnnuityMember 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2017-12-31 0000850141 hmn:RetirementAnnuityMember 2017-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2016-01-01 2016-12-31 0000850141 hmn:InterestSensitiveLifeContractsMember 2017-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2017-01-01 2017-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember hmn:MaturingOnJanuary162026Member 2018-12-31 0000850141 srt:MaximumMember 2018-01-01 2018-12-31 0000850141 srt:MaximumMember hmn:RealEstatePropertyMember 2018-01-01 2018-12-31 0000850141 srt:MinimumMember hmn:LeaseHoldImprovementsAndOtherPropertyAndEquipmentMember 2018-01-01 2018-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember 2018-01-01 2018-12-31 0000850141 srt:MaximumMember hmn:LeaseHoldImprovementsAndOtherPropertyAndEquipmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000850141 hmn:InterestSensitiveLifeContractsMember 2018-01-01 2018-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember hmn:MaturingOnSeptember132019Member 2018-12-31 0000850141 srt:MinimumMember 2018-01-01 2018-12-31 0000850141 hmn:InterestSensitiveLifeContractsMember 2018-12-31 0000850141 hmn:OtherPolicyholderFundsMember 2018-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember hmn:MaturingOnDecember152023Member 2018-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2017-01-01 2017-12-31 0000850141 us-gaap:AccountingStandardsUpdate201602Member us-gaap:ProFormaMember 2018-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember us-gaap:InvestmentContractsMember 2018-12-31 0000850141 srt:MinimumMember hmn:RealEstatePropertyMember 2018-01-01 2018-12-31 0000850141 hmn:HoraceMannLifeInsuranceCompanyMember 2018-12-31 0000850141 hmn:AnnuitySegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 hmn:AnnuitySegmentMember 2016-01-01 2016-12-31 0000850141 hmn:AnnuitySegmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 hmn:FreeStandingDerivativesMember 2018-12-31 0000850141 hmn:FreeStandingDerivativesMember 2017-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedMaturitiesMember 2016-01-01 2016-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2018-01-01 2018-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2016-01-01 2016-12-31 0000850141 us-gaap:EquitySecuritiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedMaturitiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember 2016-01-01 2016-12-31 0000850141 us-gaap:FixedMaturitiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember 2016-01-01 2016-12-31 0000850141 us-gaap:EquitySecuritiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedMaturitiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedMaturitiesMember 2016-01-01 2016-12-31 0000850141 us-gaap:USGovernmentDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:DebtSecuritiesMember 2017-12-31 0000850141 us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:USGovernmentDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:DebtSecuritiesMember 2018-12-31 0000850141 us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2017-12-31 0000850141 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2017-12-31 0000850141 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-12-31 0000850141 hmn:FederalHomeLoansBankOfChicagoMember 2017-12-31 0000850141 hmn:GovernmentalAgenciesAsRequiredByLawInVariousStatesMember 2017-12-31 0000850141 us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-12-31 0000850141 hmn:GovernmentalAgenciesAsRequiredByLawInVariousStatesMember 2018-12-31 0000850141 us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-12-31 0000850141 hmn:FederalHomeLoansBankOfChicagoMember 2018-12-31 0000850141 us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2017-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2016-01-01 2016-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2018-01-01 2018-12-31 0000850141 us-gaap:EquityMethodInvestmentsMember 2018-01-01 2018-12-31 0000850141 us-gaap:EquityMethodInvestmentsMember 2017-01-01 2017-12-31 0000850141 us-gaap:EquityMethodInvestmentsMember 2016-01-01 2016-12-31 0000850141 hmn:ShortTermAndOtherInvestmentsMember 2017-01-01 2017-12-31 0000850141 hmn:OtherIncludingUsTreasurySecuritiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:CorporateDebtSecuritiesMember 2018-01-01 2018-12-31 0000850141 hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-01-01 2018-12-31 0000850141 us-gaap:ForeignGovernmentDebtMember 2017-01-01 2017-12-31 0000850141 us-gaap:MunicipalBondsMember 2018-01-01 2018-12-31 0000850141 us-gaap:CorporateDebtSecuritiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:MortgageBackedSecuritiesOtherMember 2018-01-01 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesOtherMember 2017-01-01 2017-12-31 0000850141 us-gaap:DebtSecuritiesMember 2017-01-01 2017-12-31 0000850141 hmn:OtherIncludingUsTreasurySecuritiesMember 2017-01-01 2017-12-31 0000850141 us-gaap:MunicipalBondsMember 2017-01-01 2017-12-31 0000850141 us-gaap:ForeignGovernmentDebtMember 2018-01-01 2018-12-31 0000850141 us-gaap:DebtSecuritiesMember 2018-01-01 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-01-01 2018-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2017-01-01 2017-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2015-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2016-01-01 2016-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member 2018-01-01 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member 2017-01-01 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember hmn:OtherInvestmentMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember hmn:OtherInvestmentMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:CorporateDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MunicipalBondsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2018-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherIncludingUsTreasurySecuritiesMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:MunicipalBondsMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000850141 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember hmn:OtherInvestmentMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:MortgageBackedSecuritiesOtherMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ForeignGovernmentDebtMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:EstimateOfFairValueFairValueDisclosureMember us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0000850141 us-gaap:DebtSecuritiesMember 2016-12-31 0000850141 us-gaap:EquitySecuritiesMember 2016-12-31 0000850141 us-gaap:ShortTermInvestmentsMember 2018-01-01 2018-12-31 0000850141 us-gaap:ShortTermInvestmentsMember 2017-01-01 2017-12-31 0000850141 us-gaap:ShortTermInvestmentsMember 2018-12-31 0000850141 us-gaap:MortgageBackedSecuritiesOtherMember 2016-12-31 0000850141 us-gaap:ShortTermInvestmentsMember 2017-12-31 0000850141 us-gaap:MunicipalBondsMember 2016-12-31 0000850141 us-gaap:ShortTermInvestmentsMember 2016-12-31 0000850141 us-gaap:CorporateDebtSecuritiesMember 2016-12-31 0000850141 us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member 2017-12-31 0000850141 us-gaap:FairValueInputsLevel2Member 2018-12-31 0000850141 hmn:BarclaysBankPlcMember 2018-12-31 0000850141 hmn:CitigroupIncMember 2017-12-31 0000850141 hmn:SocieteGeneraleMember 2018-12-31 0000850141 hmn:SocieteGeneraleMember 2017-12-31 0000850141 hmn:CitigroupIncMember 2018-12-31 0000850141 hmn:CreditSuisseInternationalMember 2017-12-31 0000850141 hmn:BarclaysBankPlcMember 2017-12-31 0000850141 hmn:BankOfAmericaMember 2018-12-31 0000850141 hmn:BankOfAmericaMember 2017-12-31 0000850141 hmn:CreditSuisseInternationalMember 2018-12-31 0000850141 us-gaap:OtherLiabilitiesMember 2017-12-31 0000850141 us-gaap:OtherLiabilitiesMember 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2012-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2013-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2018-12-31 0000850141 hmn:HomeownersMember 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2010-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2011-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2011-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortDurationInsuranceContractsAccidentYear2018Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2013-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2012-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2012-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2009-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2018-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2013-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2015-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2013-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2012-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2010-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2013-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2014-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2016-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2017-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2011-12-31 0000850141 hmn:HomeownersMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2016-12-31 0000850141 hmn:AutoLiabilityMember 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2013-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2011-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2010-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2011-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortDurationInsuranceContractsAccidentYear2018Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2011-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2013-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2012-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2010-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2009-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2018-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2013-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2012-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2013-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2012-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2017-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2012-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2015-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2016-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2014-12-31 0000850141 hmn:AutoLiabilityMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2013-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember hmn:AutoPhysicalDamageMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember hmn:OtherThanShortDurationLineMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember hmn:OtherShortDurationLinesMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember hmn:AutoLiabilityMember 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember hmn:HomeownersMember 2018-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2017-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2018-01-01 2018-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2016-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2016-01-01 2016-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2018-12-31 0000850141 hmn:LifeAndAnnuitySegmentsCombinedMember 2017-01-01 2017-12-31 0000850141 hmn:ProductandCasualtyMember 2016-01-01 2016-12-31 0000850141 hmn:ProductandCasualtyMember 2018-01-01 2018-12-31 0000850141 hmn:ProductandCasualtyMember 2017-12-31 0000850141 hmn:ProductandCasualtyMember 2017-01-01 2017-12-31 0000850141 hmn:ProductandCasualtyMember 2015-12-31 0000850141 hmn:ProductandCasualtyMember 2016-12-31 0000850141 hmn:ProductandCasualtyMember 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2009-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2013-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2012-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortDurationInsuranceContractsAccidentYear2017Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2012-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2015Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2010-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2017-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2013-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2010-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2012-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2011-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2014Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2011-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2010Member 2013-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortDurationInsuranceContractsAccidentYear2018Member 2018-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2009Member 2011-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2013Member 2013-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2013-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2015-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2016Member 2016-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2012-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2011Member 2014-12-31 0000850141 hmn:AutoPhysicalDamageMember us-gaap:ShortdurationInsuranceContractsAccidentYear2012Member 2016-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember srt:MinimumMember 2018-01-01 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember srt:MaximumMember 2018-01-01 2018-12-31 0000850141 hmn:LifeAndHealthMember 2018-12-31 0000850141 hmn:PropertyLiabilityAndCasualtyInsuranceReinsuranceCompaniesMember 2017-12-31 0000850141 hmn:LifeAndHealthMember 2017-12-31 0000850141 hmn:PropertyLiabilityAndCasualtyInsuranceStateInsuranceFacilitiesMember 2018-12-31 0000850141 hmn:PropertyLiabilityAndCasualtyInsuranceReinsuranceCompaniesMember 2018-12-31 0000850141 hmn:PropertyLiabilityAndCasualtyInsuranceStateInsuranceFacilitiesMember 2017-12-31 0000850141 us-gaap:SeniorNotesMember 2018-12-31 0000850141 us-gaap:FederalHomeLoanBankAdvancesMember 2018-12-31 0000850141 us-gaap:FederalHomeLoanBankAdvancesMember 2017-12-31 0000850141 us-gaap:SeniorNotesMember 2017-12-31 0000850141 hmn:CurrentUnsecuredBankCreditFacilityMember 2018-12-31 0000850141 hmn:MaturityPeriodTwoMember 2018-12-31 0000850141 us-gaap:LongTermDebtMember 2018-12-31 0000850141 hmn:MaturityPeriodOneMember 2017-12-31 0000850141 2017-10-01 2017-12-31 0000850141 2017-12-07 2017-12-07 0000850141 hmn:ExercisePriceRangeRangeTwoMember 2018-12-31 0000850141 hmn:ExercisePriceRangeRangeThreeMember 2018-12-31 0000850141 hmn:ExercisePriceRangeFourMember 2018-12-31 0000850141 hmn:ExercisePriceRangeRangeOneMember 2018-12-31 0000850141 2012-01-01 2018-12-31 0000850141 srt:MinimumMember us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000850141 hmn:TwoThousandTenComprehensiveExecutiveCompensationPlanMember 2018-12-31 0000850141 hmn:TwoThousandTenComprehensiveExecutiveCompensationPlanMember 2018-01-01 2018-12-31 0000850141 hmn:TwoThousandFifteenEquityIncentivePlanMember 2015-09-30 0000850141 srt:MinimumMember us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0000850141 srt:MaximumMember us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000850141 hmn:TwoThousandElevenEquityIncentivePlanMember 2011-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2017-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2017-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2018-12-31 0000850141 us-gaap:EmployeeStockOptionMember 2016-12-31 0000850141 us-gaap:RestrictedStockUnitsRSUMember 2016-12-31 0000850141 hmn:ExercisePriceRangeRangeThreeMember 2018-01-01 2018-12-31 0000850141 hmn:ExercisePriceRangeFourMember 2018-01-01 2018-12-31 0000850141 hmn:ExercisePriceRangeRangeTwoMember 2018-01-01 2018-12-31 0000850141 hmn:ExercisePriceRangeRangeOneMember 2018-01-01 2018-12-31 0000850141 srt:MaximumMember hmn:ExercisePriceRangeRangeOneMember 2018-12-31 0000850141 srt:MinimumMember hmn:ExercisePriceRangeRangeOneMember 2018-12-31 0000850141 srt:MinimumMember 2018-12-31 0000850141 srt:MaximumMember hmn:ExercisePriceRangeRangeThreeMember 2018-12-31 0000850141 srt:MinimumMember hmn:ExercisePriceRangeRangeTwoMember 2018-12-31 0000850141 srt:MaximumMember hmn:ExercisePriceRangeRangeTwoMember 2018-12-31 0000850141 srt:MaximumMember 2018-12-31 0000850141 srt:MinimumMember hmn:ExercisePriceRangeRangeThreeMember 2018-12-31 0000850141 srt:MaximumMember 2017-12-31 0000850141 srt:MinimumMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember 2018-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2018-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0000850141 us-gaap:FixedIncomeSecuritiesMember 2018-12-31 0000850141 2006-12-31 0000850141 us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-09-30 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2017-01-01 2017-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2016-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2016-01-01 2016-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2016-01-01 2016-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2018-01-01 2018-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2016-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:FixedIncomeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 hmn:ShorttermInvestmentsFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2015-12-31 0000850141 us-gaap:PensionPlansDefinedBenefitMember 2015-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-01-01 2016-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-12-31 0000850141 hmn:FourZeroOneKPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-01-01 2016-12-31 0000850141 us-gaap:NonqualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0000850141 hmn:QualifiedDefinedContributionPlanMember us-gaap:QualifiedPlanMember us-gaap:PensionPlansDefinedBenefitMember 2014-01-01 2014-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2018-01-01 2018-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2017-01-01 2017-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2018-01-01 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2017-01-01 2017-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2016-01-01 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2018-01-01 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2016-01-01 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 us-gaap:VariableAnnuityMember 2018-01-01 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 us-gaap:VariableAnnuityMember 2017-01-01 2017-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2017-01-01 2017-12-31 0000850141 us-gaap:VariableAnnuityMember 2016-01-01 2016-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2016-01-01 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2016-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2016-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2016-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:LifeInsuranceSegmentMember 2017-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2017-12-31 0000850141 us-gaap:CorporateNonSegmentMember us-gaap:CorporateAndOtherMember 2016-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2018-12-31 0000850141 us-gaap:OperatingSegmentsMember us-gaap:VariableAnnuityMember 2017-12-31 0000850141 us-gaap:IntersegmentEliminationMember 2017-12-31 0000850141 hmn:NTALifeEnterprisesMember 2018-12-10 2018-12-10 0000850141 hmn:BenefitConsultantsGroupInc.Member 2018-10-30 2018-10-30 0000850141 2016-07-01 2016-09-30 0000850141 2016-01-01 2016-03-31 0000850141 2018-01-01 2018-03-31 0000850141 2018-04-01 2018-06-30 0000850141 2016-10-01 2016-12-31 0000850141 2018-10-01 2018-12-31 0000850141 2016-04-01 2016-06-30 0000850141 2018-07-01 2018-09-30 0000850141 2017-01-01 2017-03-31 0000850141 2017-07-01 2017-09-30 0000850141 2017-04-01 2017-06-30 0000850141 hmn:DerivativeInstrumentsMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:ForeignGovernmentDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember us-gaap:BanksTrustAndInsuranceEquitiesMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:CommercialMortgageBackedSecuritiesMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember us-gaap:PublicUtilityEquitiesMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:AssetBackedSecuritiesMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember us-gaap:NonredeemablePreferredStockMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember us-gaap:ContractHolderFundsMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:PublicUtilityBondsMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:ResidentialMortgageBackedSecuritiesMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:AllOtherCorporateBondsMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember 2018-12-31 0000850141 us-gaap:MortgagesMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:RedeemablePreferredStockMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:USGovernmentSponsoredEnterprisesDebtSecuritiesMember 2018-12-31 0000850141 us-gaap:OtherLongTermInvestmentsMember 2018-12-31 0000850141 us-gaap:FixedMaturitiesMember us-gaap:USStatesAndPoliticalSubdivisionsMember 2018-12-31 0000850141 us-gaap:PolicyLoansMember 2018-12-31 0000850141 us-gaap:EquityMethodInvestmentsMember 2018-12-31 0000850141 us-gaap:EquitySecuritiesInvestmentSummaryMember us-gaap:IndustrialMiscellaneousAndAllOthersMember 2018-12-31 0000850141 srt:ParentCompanyMember 2018-01-01 2018-12-31 0000850141 srt:ParentCompanyMember 2016-01-01 2016-12-31 0000850141 srt:ParentCompanyMember 2017-01-01 2017-12-31 0000850141 srt:ParentCompanyMember 2018-12-31 0000850141 srt:ParentCompanyMember 2015-12-31 0000850141 srt:ParentCompanyMember 2017-12-31 0000850141 srt:ParentCompanyMember 2016-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-01-01 2017-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2017-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2018-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2017-01-01 2017-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2017-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2016-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2016-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2018-01-01 2018-12-31 0000850141 srt:ConsolidationEliminationsMember us-gaap:OtherInsuranceProductLineMember 2017-01-01 2017-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2016-01-01 2016-12-31 0000850141 hmn:AnnuityInsuranceProductLineMember 2016-01-01 2016-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2016-12-31 0000850141 srt:ConsolidationEliminationsMember us-gaap:OtherInsuranceProductLineMember 2018-01-01 2018-12-31 0000850141 us-gaap:PropertyLiabilityAndCasualtyInsuranceSegmentMember 2018-01-01 2018-12-31 0000850141 us-gaap:LifeInsuranceSegmentMember 2017-12-31 0000850141 srt:ConsolidationEliminationsMember us-gaap:OtherInsuranceProductLineMember 2016-01-01 2016-12-31 hmn:security xbrli:shares xbrli:pure iso4217:USD xbrli:shares iso4217:USD hmn:claim hmn:segment







UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 

FORM 10-K 
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2018
OR
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______ 

Commission file number 1-10890 
 
HORACE MANN EDUCATORS CORPORATION
(Exact name of registrant as specified in its charter) 
Delaware
37-0911756
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
1 Horace Mann Plaza, Springfield, Illinois 62715-0001
(Address of principal executive offices, including Zip Code) 
 
Registrant's Telephone Number, Including Area Code: 217-789-2500

Securities Registered Pursuant to Section 12(b) of the Act:
 
Name of each exchange on
Title of each class
which registered
Common Stock, par value $0.001 per share
New York Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act: None 
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes   X   No      
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes        No   X
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   X   No       
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes   X   No       
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company,"and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer       X      Accelerated filer          
Non-accelerated filer              Smaller reporting company           
Emerging growth company          
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.       

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes       No   X

The aggregate market value of the registrant's Common Stock held by non-affiliates of the registrant based on the closing price of the registrant's Common Stock on the New York Stock Exchange and the shares outstanding on June 30, 2018, was $1,792.2 million

As of February 15, 2019, the registrant had 40,986,161 shares of Common Stock, par value $0.001 per share, outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Certain portions of the registrant's Proxy Statement for the 2019 Annual Meeting of Shareholders are incorporated by reference into Part III Items 10, 11, 12, 13 and 14 of this Form 10-K as specified in those Items and will be filed with the Securities and Exchange Commission within 120 days after December 31, 2018.







HORACE MANN EDUCATORS CORPORATION
FORM 10-K
YEAR ENDED DECEMBER 31, 2018
INDEX
Part
 
Item
 
 
 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 





PART I

ITEM 1.    Business

Measures within this Annual Report on Form 10-K that are not based on accounting principles generally accepted in the U.S. (non-GAAP) are marked with an asterisk (*). An explanation of these measures is contained in the Glossary of Selected Terms included as Exhibit 99.1 to this Annual Report on Form 10-K and are reconciled to the most directly comparable measures prepared in accordance with accounting principles generally accepted in the U.S. (GAAP) in the Appendix to the Company's Fourth Quarter 2018 Investor Supplement.

Forward-looking Information
 
It is important to note that the Company's actual results could differ materially from those projected in forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in forward-looking statements is contained in Item 1A and in Item 7 of this report.

Overview and Available Information
 
Horace Mann Educators Corporation (HMEC; and together with its subsidiaries, the Company or Horace Mann) is an insurance holding company incorporated in Delaware. Through its subsidiaries, HMEC markets and underwrites personal lines of property and casualty (primarily personal lines of automobile and property) insurance, retirement products (primarily tax-qualified annuities) and life insurance in the U.S. HMEC's principal insurance subsidiaries are Horace Mann Life Insurance Company (HMLIC), Horace Mann Insurance Company (HMIC), Horace Mann Property & Casualty Insurance Company (HMPCIC) and Teachers Insurance Company (TIC), each of which is an Illinois corporation, and Horace Mann Lloyds (HM Lloyds), an insurance company domiciled in Texas.
 
Founded by Educators for Educators®, the Company markets its products primarily to K-12 teachers, administrators and other employees of public schools and their families. The Company's nearly one million customers typically have moderate annual incomes, with many belonging to two-income households. Their financial planning tends to focus on retirement, security, savings and primary insurance needs. Management believes that Horace Mann is the largest national multi-line insurance company focused on the nation's educators as its primary market.
 
Horace Mann markets and services its products primarily through a dedicated sales force of full-time Exclusive Distributors supported by the Company's Customer Contact Center. These agents sell Horace Mann's products and limited additional third-party vendor products. Some of these agents are former educators or individuals with close ties to the educational community who utilize their contacts within, and knowledge of, the target market.
 
The Company's insurance premiums written and contract deposits* for the year ended December 31, 2018 were $1.2 billion and net income was $18.3 million. The Company's total assets were $11.0 billion at December 31, 2018. The Company's investment portfolio had an aggregate fair value of $8.3 billion at December 31, 2018 and consisted primarily of investment grade, publicly traded fixed maturity securities.
 

1




The Company conducts and manages its business through four reporting segments. The three operating segments, representing the major lines of insurance business, are: Property and Casualty, Retirement and Life. The Company does not allocate the impact of corporate-level transactions to the three operating segments, consistent with the basis for management's evaluation of the results of those segments, but classifies those items in the fourth reporting segment, Corporate and Other. Property and Casualty, Retirement, and Life accounted for 55.2%, 35.5% and 9.3%, respectively, of the Company's insurance premiums written and contract deposits for the year ended December 31, 2018.
 
The Company is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net written premium on a statutory accounting basis. The Company's 403(b) tax-qualified annuities are voluntarily purchased by individuals employed by public school systems or other tax-exempt organizations through the employee benefit plans of those entities. The Company has 403(b) payroll deduction capabilities utilized by approximately 30% of the 13,200 public school districts in the U.S.
 
The Company's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and all amendments to those reports are available free of charge through the Investors section of the Company's website, www.horacemann.com, as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the Securities and Exchange Commission (SEC). The EDGAR filings of such reports are also available at the SEC's website, www.sec.gov.
 
Also available in the Investors section of the Company's website are its corporate governance principles, code of conduct, code of ethics, and corporate social responsibility reports, as well as the charters of the HMEC Board of Director's (Board) Audit Committee, Compensation Committee, Executive Committee, Investment and Finance Committee, and Nominating and Governance Committee. Copies also may be obtained by writing to Investor Relations, Horace Mann Educators Corporation, 1 Horace Mann Plaza, Springfield, Illinois 62715-0001.
 
On May 29, 2018, the Chief Executive Officer (CEO) of HMEC submitted the Annual Section 12(a) CEO Certification to the New York Stock Exchange (NYSE) without any qualifications. The Company filed with the SEC, as exhibits to the Annual Report on Form 10-K for the year ended December 31, 2017, the CEO and Chief Financial Officer (CFO) certifications required under Section 302 of the Sarbanes-Oxley Act.

History
 
The Company's business was founded in Springfield, Illinois in 1945 by two school teachers to sell automobile insurance to other teachers within Illinois. The Company expanded its business to other states and broadened its product line to include life insurance in 1949, 403(b) tax-qualified retirement annuities in 1961 and property insurance in 1965. In November 1991, HMEC completed an initial public offering of its common stock. The common stock is traded on the NYSE under the symbol HMN.


2




Corporate Strategy

The Horace Mann vision is to be the company of choice to provide financial solutions for all educators and others who serve their communities. Management believes the unique value of the Company is providing solutions tailored for educators at each stage of their lives, empowering them to achieve lifelong financial success.
Education Market
Horace Mann serves customers in roughly one-third of the K-12 public school districts in the U.S., with significant opportunity to grow in this niche market. The U.S. Department of Education estimates that there are approximately 6.4 million K-12 public school teachers, administrators and support staff nationwide, a number that is steadily growing. Adjacent markets such as private education staff offer further opportunity.
Because of the focus on this niche market, the Company has a homogeneous customer set with similar characteristics and preferred risk profiles. This allows for more precise underwriting processes and more targeted marketing operations, amplifying the benefit of successful approaches.
In addition, the Company has taken steps to increase its "business-to-business" value to administrators and business officials who make decisions on financial solution providers at the school district level.
Growth Strategy
Horace Mann is implementing a long-term growth strategy designed to provide solutions for the full range of the education market’s financial needs through "PDI":
Products designed to meet educators’ needs and protect their unique risks;
Knowledgeable, trusted distribution tailored to educator preferences; and
Modern, scalable infrastructure that is easy to do business with.

The Company has undertaken a continuous business development process to analyze how to best achieve these strategic objectives: To build capabilities internally, leveraging internal resources; to partner with organizations with specific expertise; or to take advantage of unique opportunities to purchase specific elements to accelerate profitable growth over the long term.
Taking advantage of internal subject matter experts and institutional knowledge, product development has largely been completed internally. In particular, the Retirement and Life product suites have been updated to offer more contemporary investment options with features that meet educators’ risk tolerances.
For coverages Horace Mann does not have the scale or risk tolerance to offer, the Company identifies partners and executes agreements to sell their products through the Horace Mann General Agency. This allows Horace Mann to be the primary point of contact for customers’ financial needs, building brand affinity and loyalty.

3




In some cases inorganic development has made the most sense financially, and the Company decided to acquire capabilities. In 2018, the Company announced plans to acquire:
National Teachers Associates (NTA), a fellow insurer focused on the education market with complementary products and distribution. Headquartered in a suburb of Dallas, family-owned NTA specializes in developing, marketing and underwriting supplemental insurance products, including cancer and heart.
Benefit Consultants Group (BCG), a retirement plan provider with strong employer plan infrastructure and competencies based in Cherry Hill, NJ. BCG expands Horace Mann’s strategic capabilities in the retirement market.

Relevant Products
At the core of Horace Mann’s value proposition is the commitment to providing relevant products and solutions to address the issues that educators face at each stage of their career and life. For example:
For young educators new to the profession, student loan debt often precludes saving for retirement, at the point when those savings would have the most time to grow and make a significant impact at retirement age. Through the Company’s Student Loan Solutions program, educators receive complimentary financial guidance to pursue public servant forgiveness or alternate repayment programs, or consolidate loans at a lower rate, freeing up money to begin a savings program.
For mid-career educators, protecting their loved ones and assets in case of the unexpected becomes a priority. Horace Mann helps provide security and peace of mind by using a consultative sales approach for life insurance and property and casualty coverages.
For educators preparing to retire, the viability of their pension and retirement plans is top of mind. Horace Mann agents are well-versed in state teacher retirement systems, and can help with retirement income modeling and supplemental plans.
Other solutions are valuable to educators across all career stages. A recurring issue for a majority of teachers is spending their own money on classroom supplies. Horace Mann trains its agents to provide in-school workshops on how to optimize classroom crowdfunding opportunities, primarily DonorsChoose.org, to free up money to put toward educators’ own financial goals.
With the acquisition of NTA, the Company will be able to address educators’ need for supplemental insurance, such as cancer, heart and accident. The defined dollar benefit can be used for medical or non-medical costs of an accident, illness or health emergency, which can help customers address unexpected issues without needing to draw down retirement or other savings.
Trusted Distribution
Horace Mann aims to provide multiple complementary distribution channels to meet individual educator preferences. The largest component of this strategy is the Company’s more than 700 Exclusive Distributors with strong school district relationships. These local agents serve as a school district partner, providing financial wellness workshops in schools, consulting with educators and administrators, and supporting school events and activities. This trusted adviser model builds particularly strong brand loyalty and affinity. With the acquisition of NTA, the Company will gain more than 200 additional captive agents in largely complementary geographies.


4




To build brand awareness and encourage market access, the Company partners with multiple national, state and local associations to reach educators. Through strategic alliances with the American Association of School Administrators (AASA), The School Superintendents Association; and the Association of School Business Officials (ASBO), the Company builds relationships with administrators. Through partnerships with the National Education Association (NEA), as well as state and local affiliates, the Company can build credibility with individual educators.

To meet the preferences of customers who prefer "on demand" services, the Company’s direct sales team can provide coverage over the phone. Customers can secure auto, home and life quote and coverage comparisons online.

Modern Infrastructure

The Company is implementing a multi-year effort to upgrade its infrastructure to provide a superior customer experience. The Retirement and Life administration systems have been enhanced for faster, more accurate processes; a substantial reduction in the amount of time it takes to issue Life policies; and improved ease of doing business for both customers and agents. The Property and Casualty administration system upgrade has completed its first phase, reducing claims cycle time and providing more insight into customer and loss trends. In addition, the Company has implemented several initiatives to successfully improve the Company Net Promoter Score (NPS), a leading measure of customer satisfaction.

Through the acquisition of BCG, Horace Mann strengthens its retirement platform to better meet the needs of employers, as well as other worksite capabilities. This will strengthen Horace Mann's value proposition and enhance its retirement plan infrastructure and offerings for school districts.

Reporting Segments

Horace Mann conducts business primarily in four reporting segments: Property and Casualty, Retirement, Life and Corporate and Other.

These Segments are defined based on the way management organizes the segments for making operating decisions and assessing performance. Management maintains discrete financial information by these segments to evaluate performance and allocate resources.

The calculations of segment data are described in more detail in Item 8, Note 14 of the Consolidated Financial Statements in this report. Some of the information is discussed in this section, where the business operations of each segment are explained. The financial performance of each segment is discussed in Item 7 of this report.


5




Property and Casualty

The Company's primary Property and Casualty insurance products include private passenger automobile insurance and residential home insurance. The Company's automobile business is primarily preferred risk, defined as a household whose drivers have had no recent accidents and no more than one recent moving violation.
 
 
Year Ended December 31, 2018
 
 
% of Total
Written Premium/
Contract Deposits
 
% of P&C
Written Premium
 
Policies in Force Count
 
 
 
 
 
 
 
Automobile
 
38.1%
 
69.0%
 
462,778
Property and other liability
 
17.1%
 
31.0%
 
212,927
Total
 
55.2%
 
100.0%
 
675,705

The Company offers standard auto coverages, including liability, collision and comprehensive. Horace Mann customers are mostly preferred risks, while the Company utilizes partner carriers for non-standard auto coverages. Property coverage includes both homeowners and renters policies. For both auto and property coverage, the Company offers educators a discounted rate and the Educator Advantage® package of features. This includes value-added benefits specifically for educators, such as liability coverage for transporting students in an insured vehicle and reimbursement for stolen school fundraising items.

The Company has programs in a majority of states to provide higher-risk automobile and property coverages, as well as a number of other insurance coverages, with third-party vendors underwriting and bearing the risk of such insurance and the Company receiving commissions on the sales. Similarly, the Company has increased its offering of third-party vendor products in many areas to include coverage for small business owners and classic/collector automobiles to meet those aspects of an educator's needs.


6




Catastrophe Costs (Pretax)

The level of catastrophe costs can fluctuate significantly from year to year. Catastrophe costs for the Company for the last ten years are shown in the following table.

Catastrophe Costs (1) 
($ in millions)
Year
 
Month
 
Event Description
 
States/Region
 
Total
2018
 
 
 
 
 
 
 
$
114.1

 
 
March
 
Winter Storm
 
Northeastern U.S.
 
5.4

 
 
June
 
Wind, Hail
 
CO, UT
 
9.8

 
 
July
 
Carr Fire
 
CA
 
7.0

 
 
September
 
Hurricane Florence
 
Southeast and Mid-Atlantic U.S.
 
14.0

 
 
October
 
Hurricane Michael
 
Southeastern U.S.
 
4.0

 
 
November
 
Camp Fire
 
CA
 
38.0

 
 
 
 
All other single events less than $5.0 million
 
 
 
35.9

2017
 
 
 
 
 
 
 
$
61.8

 
 
February
 
Wind, Hail, Tornado
 
Multi-State
 
11.0

 
 
May
 
Wind, Hail, Tornado
 
CO
 
8.8

 
 
June
 
Wind, Hail
 
MN (primarily)
 
8.0

 
 
August
 
Hurricane Harvey
 
Southeastern U.S.
 
5.0

 
 
August
 
Hurricane Irma
 
Eastern U.S.
 
2.5

 
 
 
 
All other single events less than $5.0 million
 
 
 
26.5

2016
 
 
 
 
 
 
 
$
60.0

 
 
April
 
Wind, Hail
 
Multi-State
 
9.2

 
 
September
 
Hurricane Matthew
 
Southeastern U.S.
 
10.0

 
 
 
 
All other single events less than $5.0 million
 
 
 
40.8

2015
 
 
 
 
 
 
 
$
44.4

 
 
February
 
Winter Storm
 
Multi-State
 
8.9

 
 
 
 
All other single events less than $5.0 million
 
 
 
35.5

2014
 
 
 
 
 
 
 
$
37.5

 
 
May
 
Wind, Hail
 
Multi-State
 
8.5

 
 
 
 
All other single events less than $5.0 million
 
 
 
29.0

2013
 
 
 
 
 
 
 
$
40.2

 
 
May
 
Wind, Hail, Tornado
 
Multi-State
 
10.1

 
 
August
 
Wind, Hail, Tornado
 
CO, MN, SD, WI
 
7.9

 
 
 
 
All other single events less than $5.0 million
 
 
 
22.2

2012
 
 
 
 
 
 
 
$
43.3

 
 
March
 
Wind, Hail, Tornado
 
Multi-State
 
6.6

 
 
April
 
Wind, Hail, Tornado
 
Multi-State
 
6.6

 
 
May
 
Wind, Hail, Tornado
 
Multi-State
 
5.8

 
 
June
 
Wind, Hail, Tornado
 
Multi-State
 
11.9

 
 
August
 
Hurricane Isaac
 
Multi-State
 
4.0

 
 
October
 
Hurricane/Superstorm Sandy
 
Eastern and Mid-Atlantic U.S.
 
2.8

 
 
 
 
All other single events less than $5.0 million
 
 
 
5.6

2011
 
 
 
 
 
 
 
$
86.0

 
 
April
 
Wind, Hail, Tornado
 
Multi-State
 
28.0

 
 
May
 
Wind, Hail, Tornado
 
Multi-State
 
17.6

 
 
June
 
Wind, Hail, Tornado
 
Multi-State
 
8.5

 
 
August
 
Hurricane Irene
 
NC
 
8.0

 
 
 
 
All other single events less than $5.0 million
 
 
 
23.9

2010
 
 
 
 
 
 
 
$
49.2

 
 
May
 
Wind, Hail, Tornado
 
Multi-State
 
8.3

 
 
June
 
Wind, Hail, Tornado
 
Multi-State
 
12.1

 
 
July
 
Wind, Hail, Tornado
 
Multi-State
 
5.5

 
 
October
 
Wind, Hail, Tornado
 
Multi-State
 
7.7

 
 
 
 
All other single events less than $5.0 million
 
 
 
15.6

2009
 
 
 
 
 
 
 
$
33.1

 
 
June
 
Wind, Hail, Tornado
 
Multi-State
 
6.3

 
 
July
 
Wind, Hail, Tornado
 
Multi-State
 
9.3

 
 
 
 
All other single events less than $5.0 million
 
 
 
17.5

 
 
 
 
 
(1) 
Net of reinsurance and before income tax benefits. Includes allocated loss adjustment expenses and reinsurance reinstatement premiums; excludes unallocated loss adjustment expenses.

7




Fluctuations from year to year in the level of catastrophe losses impact a property and casualty insurance company's claims and claim adjustment expenses incurred and paid. For comparison purposes, the following table provides amounts for the Company excluding catastrophe losses.

Impact of Catastrophe Losses
($ in millions)
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
 
 
 
 
 
Claims and claim expenses incurred (1)
 
$
547.7

 
$
496.3

 
$
464.1

Deduct: amount attributable to catastrophes (2)
 
107.3

 
61.8

 
60.0

Excluding catastrophes (1)
 
$
440.4

 
$
434.5

 
$
404.1

 
 
 
 
 
 
 
Claims and claim expense payments
 
$
532.0

 
$
481.1

 
$
468.8

Deduct: amount attributable to catastrophes (2)
 
97.5

 
65.6

 
62.0

Excluding catastrophes
 
$
434.5

 
$
415.5

 
$
406.8

 
 
 
 
 
(1) 
Includes the impact of development of prior years' reserves as quantified in Property and Casualty Reserves.
(2) 
Net of reinsurance and before income tax benefits. Includes allocated loss adjustment expenses; excludes unallocated loss adjustment expenses.

Property and Casualty Reserves
 
Property and Casualty unpaid claims and claim expenses (loss reserves) represent management's estimate of ultimate unpaid costs of losses and settlement expenses for claims that have been reported and claims that have been incurred but not yet reported. The Company calculates and records a single best estimate of the reserve as of each reporting date in conformity with generally accepted actuarial standards. For additional information regarding the process used to estimate Property and Casualty reserves and the risk factors involved, as well as a summary reconciliation of the beginning and ending Property and Casualty insurance claims and claim expense reserves and reserve development recorded in each of the three years ended December 31, 2018, see Item 8, Note 5 of the Consolidated Financial Statements, and Item 7, Critical Accounting Estimates and Results of Operations for the Property and Casualty Segment for the Three Years Ended December 31, 2018 in this report.
 
All of the Company's reserves for Property and Casualty unpaid claims and claim expenses are carried at the full value of estimated liabilities and are not discounted for interest expected to be earned on reserves. Due to the nature of the Company's personal lines business, the Company has no exposure to losses related to claims for toxic waste cleanup, other environmental remediation or asbestos-related illnesses other than claims under property insurance policies for environmentally related items such as mold.
 
Property and Casualty Reinsurance
 
All reinsurance is obtained through contracts which generally are entered into for each calendar year. Although reinsurance does not legally discharge the Company from primary liability for the full amount of its policies, it does allow for recovery from assuming reinsurers to the extent of the reinsurance ceded. Past due reinsurance recoverables as of December 31, 2018 were not material.
 

8




The Company maintains catastrophe excess of loss reinsurance coverage. For 2018, the Company's catastrophe excess of loss coverage consisted of one contract in addition to a minimal amount of coverage by the Florida Hurricane Catastrophe Fund (FHCF). The catastrophe excess of loss contract provided 95% coverage for catastrophe losses above a retention of $25.0 million per occurrence up to $175.0 million per occurrence. This contract consisted of three layers, each of which provided for one mandatory reinstatement. The layers were $25.0 million excess of $25.0 million, $40.0 million excess of $50.0 million and $85.0 million excess of $90.0 million. The Company's 2019 catastrophe excess of loss coverage is unchanged from 2018.

The Company has not joined the California Earthquake Authority (CEA). The Company's exposure to losses from earthquakes is managed through its underwriting standards, its earthquake policy coverage limits and deductible levels, and the geographic distribution of its business, as well as its reinsurance program. After reviewing the exposure to earthquake losses from the Company's own policies and from what it would be with participation in the CEA, including estimated start-up and ongoing costs related to CEA participation, management believes it is in the Company's best economic interest to offer earthquake coverage directly to its property policyholders.
 
For liability coverages, in 2018 the Company reinsured each loss above a retention of $1.0 million up to $5.0 million per occurrence and $20.0 million in a clash event. A clash cover is a reinsurance casualty excess contract requiring two or more casualty coverages or policies issued by the Company to be involved in the same loss occurrence for coverage to apply. The Company's 2019 liability coverages are unchanged from 2018.

The Company markets personal lines excess liability policies. The limits of these policies are $1.0 million to $5.0 million in excess of $0.5 million of underlying auto and homeowners liability coverage. The Company reinsures these policies on a quota share basis with General Reinsurance Corporation (GRC). GRC assumes 95% of losses, including allocated loss adjustment expenses and premiums for all states except Massachusetts. For business written in the state of Massachusetts, the quota share portion is 75%.

For auto insurance sold in Michigan, Personal Injury Protection (PIP) coverage is unlimited in compliance with Michigan state law. The Company participates in the Michigan Catastrophic Claims Association (MCCA). For policies issued in 2018, MCCA reimburses PIP losses including allocated loss adjustment expenses in excess of $0.6 million.

For property coverages, in 2018 the Company reinsured each loss above a retention of $1.0 million up to $5.0 million per risk, including catastrophe losses. Also, the Company could submit to the reinsurers two per risk losses from the same occurrence for a total of $8.0 million of property recovery in any one event. The Company's 2019 property coverages are unchanged from 2018.


9




The following table identifies the Company's most significant reinsurers under the catastrophe first event excess of loss reinsurance program, their percentage participation in this program and their ratings by A.M. Best Company (A.M. Best) and Standard & Poor's Global Inc. (S&P) as of January 1, 2019. No other single reinsurer's percentage participation in 2019 or 2018 exceeds 5%.
 
Property Catastrophe First Event Excess of Loss
Reinsurance Participants In Excess of 5%
A.M. Best
 
S&P
 
 
 
 
 
Participation
Rating
 
Rating
 
Reinsurer
 
Parent
 
2019
 
2018
 
 
 
 
 
 
 
 
 
 
 
A
 
A+
 
Lloyd's of London Syndicates
 
 
 
28
%
 
31
%
NR
 
AA-
 
R+V Versicherung AG
 
DZ BANK AG
 
8
%
 
8
%
A+
 
AA-
 
Swiss Re Underwriters Agency, Inc.
 
Swiss Re Ltd.
 
7
%
 
7
%
A+
 
AA-
 
SCOR Global P&C SE
 
SCOR SE
 
7
%
 
7
%
 
 
 
 
 
NR - Not rated.
 
For both 2019 and 2018, remaining property catastrophe reinsurers representing 100% of the Company's aggregate reinsured catastrophe coverage were rated A- (Excellent) or above by A.M. Best.

Retirement

Educators in the Company's target market continue to benefit from the provisions of Section 403(b) of the Internal Revenue Code (Code). This section of the Code allows public school employees and employees of other tax-exempt organizations, such as not-for-profit private schools, to utilize pretax income to make periodic contributions to a qualified retirement plan (also see Regulation — Regulation at Federal Level). The Company entered the educators retirement annuity market in 1961 and is one of the largest participants in the K-12 educator portion of the 403(b) tax-qualified annuity market, measured by 403(b) net written premium on a statutory accounting basis. The Company has 403(b) payroll deduction capabilities utilized by approximately 30% of the 13,200 public school districts in the U.S. Of the Company's new annuity contract deposits in 2018, 57.2% were for 403(b) tax-qualified annuities and 61.9% of accumulated annuity value on deposit is 403(b) tax-qualified. In 2018, premium written* by Retirement represented 35.5% of the Company's consolidated insurance premiums written and contract deposits.
 
The Company markets both fixed and variable annuity contracts, primarily on a tax-qualified basis. Fixed only annuities provide a guarantee of principal and a guaranteed minimum rate of return. These contracts are backed by the Company's general account investments. The Company bears the investment risk associated with the investments and may change the declared interest rate on these contracts subject to contract guarantees. The Company also offers fixed indexed annuity (FIA) products with interest crediting strategies linked to the S&P 500 Index and the Dow Jones Industrial Average (DJIA). These products are fixed annuities with a guaranteed minimum interest rate, as described above, plus a contingent return based on equity market performance. The Company purchases call options on the applicable indices as an investment to provide the income needed to fund the annual index credits on the indexed products. See Item 8, Notes to Consolidated Financial Statements, Note 4, for more information.
 
Variable annuities combine a fixed account option with equity-linked and bond-linked sub-account options. In general, contractholders bear the investment risk related to the variable annuity sub-accounts and may change their allocation at any time between the guaranteed interest rate fixed account and the wide range of variable investment options. By utilizing tools that provide assistance in determining needs and making asset allocation decisions, contractholders are able to choose the investment mix that matches their

10




personal risk tolerance and retirement goals. The Company's sub-account options also include both lifecycle funds and asset allocation funds. These all-purpose funds have assets allocated among multiple investment classes within each fund based on a specific targeted retirement date or risk tolerance.
 
Variable annuity contracts with a guaranteed minimum death benefit (GMDB) provide an additional benefit if the contractholder dies and the contract value is less than a contractually defined amount. The Company has a relatively low exposure to GMDB risk as 30.0% of contract values have no guarantee; 64.6% have only a return of premium guarantee; and only 5.4% have a guarantee of premium roll-up at an annual rate of 3.0% or 5.0%.
 
As of December 31, 2018, the Company had 102 variable sub-account options including funds managed by some of the best known names in the mutual fund industry such as AllianceBernstein, American Funds, Ariel, BlackRock, Calvert, Davis, Dreyfus, Fidelity, Franklin Templeton, Goldman Sachs, JPMorgan, Lord Abbett, MFS, Neuberger Berman, Putnam, T. Rowe Price, Vanguard, Wells Fargo and Wilshire, offering the Company's customers multiple investment options to address their personal investment objectives and risk tolerance. These funds have been selected with the assistance of Wilshire Associates, the Company's fund advisor, until October 1, 2018 when they were replaced by SWBC Retirement Plan Services. The fund advisor provides oversight and input to fund manager additions and replacements. Total accumulated fixed and variable annuity cash value on deposit at December 31, 2018 was $6.7 billion.

In 2017, the Company introduced the Personal Retirement Planner (PRP) annuity series, replacing its previous individual annuity lineup. The PRP series includes a flexible premium deferred variable annuity, a flexible premium deferred fixed indexed annuity, a single premium deferred fixed annuity and a single premium immediate annuity. Consistent across all of these products is the elimination of any surrender charges for early withdrawal. This is supported by a revision in the compensation structure for the Company's Exclusive Distributors which pays them a consistent level percentage of account value each year in lieu of paying commissions up front on each deposit. The two fixed deferred annuity products each contain a market value adjustment clause to help mitigate disintermediation risk. The variable annuity offers a wide array of variable sub-accounts that are devoid of any revenue sharing or 12b-1 fees to provide greater fee transparency. The single premium deferred fixed annuity allows the customer to lock-in a fixed interest rate for a single lump sum payment for a period of 5, 7 or 10 years. FIA provides an opportunity for potentially greater credited interest over the long term than traditional fixed rate annuities by linking the credited interest rates to changes in a market index. In late 2018, the Company reintroduced two traditional fixed rate annuities and the original FIA from the previous annuity portfolio. This was done to expand the choices available to the Company's customers, particularly for customers who prefer the certainty of a declining surrender charge versus the unknown potential impact of a market value adjustment. These products also offer up-front premium bonuses which were eliminated in the 2017 product portfolio.

In addition to variable annuities, the Company administers the Horace Mann Retirement Advantage® open architecture platform for 403(b)(7) and other defined contribution plans. This platform combines a wide array of mutual funds integrated with a group unallocated fixed annuity stable value fund. This platform provides the Company with greater flexibility to offer customized 403(b)(7) and other qualified plan solutions to better meet the needs of school districts and other non-for-profit plan sponsors. With the acquisition of BCG, the Company expects to migrate the administration of its Retirement Advantage® platform from a third-party vendor to the BCG platform and it expects to offer its Group Unallocated Fixed Annuity as a stable value option within a number of the 401(k) plans BCG administers.

11




To further assist registered representatives in delivering the Horace Mann Value Proposition, the Company has entered into third-party vendor agreements with American Funds Distributors, Inc. and Fidelity Distributors Corporation, to market their respective 529 college savings programs, and a brokerage clearing arrangement with Raymond James Financial, Inc. In addition, the Company's Investment Advisor Representatives offer investment portfolios managed by unaffiliated registered investment advisors. With the recent expansion of the Company’s annuity lineup and introduction of the Retirement Advantage® platform, the Company has significantly reduced its utilization of third-party vendor products to help fill the life and retirement needs not met by products manufactured by the Company. But that capability of selling third-party manufactured products and receiving a fee on such sales remains in place where opportunity arises.

Life

The Company entered the individual life insurance business in 1949. The Company offers traditional term and whole life insurance products and, from time to time, revises products and product features or develops new products. Additionally, the Company offers a discount for educator customers.
($ in millions)
 
Year Ended December 31, 2018
 
 
% of Total
Written Premium/
Contract Deposits
 
% of Life
Written Premium
 
Life Insurance
in Force
 
Policies in Force Count
 
 
 
 
 
 
 
 
 
Whole life, term and group
 
5.5%
 
59.1%
 
$
14,680

 
146,439

Experience life and indexed universal life
 
3.8%
 
40.9%
 
3,598

 
52,075

Total
 
9.3%
 
100.0%
 
$
18,278

 
198,514


During 2018, the average face amount of ordinary life insurance policies issued by the Company was approximately $186,000 and the average face amount of all ordinary life insurance policies in force at December 31, 2018 was approximately $108,000.

The Company offers a lineup of several product portfolios. Life by Design is a portfolio of Horace Mann manufactured and branded life insurance products which specifically address the financial planning needs of educators. The Life by Design portfolio features individual whole life and individual term products, including 10, 20 and 30-year level term policies. The Life by Design policies have premiums that are guaranteed for the duration of the contract and offer lower minimum face amounts.

The Company offers a combination product called Life Select that mixes a base of either traditional whole life, 20-pay life or life paid-up at age 65 with a variety of term riders to allow for more flexibility in tailoring the coverage to customers' varying life insurance needs. Additional products and features include single premium whole life products, as well as a preferred plus underwriting category and $0.5 million and $1.0 million rate band enhancements for term products. The Company offers Cash Value Term — a term policy that builds cash value while providing the income protection of traditional level term life insurance.
 
The Company offers an indexed universal life (IUL) product with interest crediting strategies linked to the S&P 500 Index and the DJIA offering a contingent return based on equity market performance. Along with expanded product offerings, new marketing support tools continue to be introduced to aid the agency force. After December 31, 2006, the Company no longer issues new policies for its Experience Life product, a flexible, adjustable-premium life insurance contract that includes availability of an interest-bearing account.

12




Life Reinsurance

The maximum individual life insurance risk retained by the Company is $300,000 on any individual life, while either $100,000 or $125,000 is retained on each group life policy depending on the type of coverage. The excess of the amounts retained are reinsured with life reinsurers that are rated A (Excellent) or above by A.M. Best. The Company also maintains a life catastrophe reinsurance program. In 2018, the Company reinsured 100% of the catastrophe risk in excess of $1.0 million up to $35.0 million per occurrence, with one reinstatement. For 2019, the Company's catastrophe risk coverage is unchanged. The Company's life catastrophe risk reinsurance program covers acts of terrorism and includes nuclear, biological and chemical explosions but excludes other acts of war.

Corporate and Other

Corporate and Other includes capital raising activities (including debt financing and related interest expense), net investment gains (losses), certain public company expenses and other corporate-level transactions (including expenses related to business acquisition activity). The Company does not allocate the impact of corporate-level transactions to the operating segments, consistent with the basis for management's evaluation of the results of those segments.

Geographic Composition of Business
 
The Company's business is geographically diversified. For the year ended December 31, 2018, based on direct premiums and contract deposits for all product lines, the top five states and their portion of total direct insurance premiums and contract deposits were California, 8.3%; Texas, 7.3%; North Carolina, 6.5%; Minnesota, 5.8%; and South Carolina, 5.7%.
 
HMEC's property and casualty subsidiaries are licensed to write business in 48 states and the District of Columbia. The following table shows the Company's top ten Property and Casualty states based on total direct premiums.
Property and Casualty Segment Top Ten States
($ in millions)
 
 
Property and Casualty Segment
 
 
2018 Direct
Premiums (1)
 
Percent
of Total
State
 
 
 
 
California
 
$
75.6

 
10.9
%
Texas
 
61.8

 
8.9

North Carolina
 
49.3

 
7.1

Minnesota
 
39.6

 
5.7

South Carolina
 
34.3

 
5.0

Louisiana
 
32.6

 
4.7

Georgia
 
31.3

 
4.5

Florida
 
29.5

 
4.3

Pennsylvania
 
24.0

 
3.5

Colorado
 
21.8

 
3.2

Total of top ten states
 
399.8

 
57.8

All other areas
 
292.3

 
42.2

Total direct premiums
 
$
692.1

 
100.0
%
 
 
 
 
 
(1) 
Defined as earned premiums before reinsurance as determined under statutory accounting principles.

13




HMEC's principal life insurance subsidiary is licensed to write business in 48 states and the District of Columbia. The following table shows the Company's top ten combined Life and Retirement states based on total direct premiums and contract deposits.

Combined Life and Retirement Segments Top Ten States
($ in millions) 
 
 
2018 Direct
Premiums and
Contract Deposits (1)
 
Percent
of Total
State
 
 
 
 
South Carolina
 
$
36.9

 
6.6
%
Pennsylvania
 
35.8

 
6.4

Minnesota
 
32.7

 
5.8

North Carolina
 
31.6

 
5.6

Florida
 
31.1

 
5.6

Texas
 
30.1

 
5.4

California
 
28.7

 
5.1

Indiana
 
25.7

 
4.6

Virginia
 
24.4

 
4.4

Illinois
 
24.2

 
4.3

Total of top ten states
 
301.2

 
53.8

All other areas
 
258.3

 
46.2

Total direct premiums
 
$
559.5

 
100.0
%
 
 
 
 
 
(1) 
Defined as collected premiums before reinsurance as determined under statutory accounting principles.

Competition

The Company operates in a highly competitive environment. The insurance industry consists of a large number of insurance companies, some of which have substantially greater financial resources, widespread advertising campaigns, more diversified product lines, greater economies of scale and/or lower-cost marketing approaches compared to the Company. In the Company's target market, management believes that the principal competitive factors in the sale of Property and Casualty's insurance products are overall service, worksite sales and service, price, and name recognition. Management believes that the principal competitive factors in the sale of Retirement's products and Life's insurance products are worksite sales and service, product features, perceived stability of the insurer, price, overall service and name recognition.
 
The Company competes in its target market with a number of national providers of personal automobile, property and life insurance such as State Farm, Allstate, Farmers, Liberty Mutual and Nationwide as well as several regional companies. The Company also competes for automobile business with other companies such as GEICO, Progressive and USAA, many of which feature direct marketing distribution.

Among the national providers of annuities and other financial service platforms that serve the retirement needs of educators and others that serve the community, the Company's major competitors include The Variable Annuity Life Insurance Company, a subsidiary of American International Group; AXA; Voya Financial, Inc.; Life Insurance Company of the Southwest, a subsidiary of National Life Insurance Company; Security Benefit; and Teachers Insurance and Annuity Association – College Retirement Equities Fund. Select mutual fund families and financial planners also compete in this marketplace.
 

14




The market for tax-deferred retirement products in the Company's target market has been impacted by the revised Code Section 403(b) regulations, which made the 403(b) market more comparable to the 401(k) market than it was in the past. While this change has and may continue to reduce the number of competitors in this market, it has made the 403(b) market more attractive to some of the larger companies experienced in 401(k) plans, including both insurance and mutual fund companies, that had not previously been active competitors in this business.

Investments
 
The Company's investments are selected to balance the objectives of protecting principal, minimizing exposure to interest rate risk and providing a high current yield. These objectives are implemented through a portfolio that emphasizes investment grade, publicly traded fixed maturity securities, which are selected to match the anticipated duration of the Company's liabilities. When impairment of the value of an investment is considered other-than-temporary, the decrease in value is recognized and a new cost basis is established.

The Company has separate investment strategies and guidelines for its Property and Casualty, Retirement and Life portfolios, which recognize different characteristics of the associated insurance liabilities, as well as different tax and regulatory environments. The Company manages interest rate exposure for its portfolios through asset/liability management techniques which attempt to coordinate the duration of the assets with the duration of the insurance policy liabilities. Duration of assets and liabilities will generally differ only because of opportunities to significantly increase yields or because policy values are not interest rate sensitive, as is the case in Property and Casualty.
 
The investments of each insurance subsidiary must comply with the insurance laws of such insurance subsidiary's domiciliary state. These laws prescribe the type and amount of investments that may be purchased and held by insurance companies. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, mortgage-backed securities, other asset-backed securities, preferred stocks, common stocks, real estate mortgages, real estate, and alternative investments.
 

15




The following table presents the carrying values and amortized cost or cost of the Company's investment portfolio.
Investment Portfolio
December 31, 2018
($ in millions)
 
 
Percentage
of Total
Carrying
Value
 
Carrying Value
 
 
 
 
 
Total
 
Life and
Retirement
 
Property and
Casualty(7)
 
Amortized
Cost or Cost (8)
Publicly Traded Fixed Maturity Securities, Equity Securities
and Short-term Investments:
 
 
 
 
 
 
 
 
 
 
U.S. Government and agency obligations(1):
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
9.5
%
 
$
787.4

 
$
777.8

 
$
9.6

 
$
778.0

Other, including U.S. Treasury securities
 
10.1

 
833.5

 
826.0

 
7.5

 
835.1

Investment grade corporate and public utility bonds
 
20.8

 
1,714.0

 
1,542.1

 
171.9

 
1,684.8

Non-investment grade corporate and public utility bonds (2)
 
1.0

 
86.5

 
54.4

 
32.1

 
90.2

Investment grade municipal bonds
 
23.4

 
1,928.5

 
1,488.2

 
440.3

 
1,812.0

Non-investment grade municipal bonds (2)
 
0.3

 
27.9

 
11.5

 
16.4

 
27.6

Investment grade other mortgage-backed securities (3)
 
19.7

 
1,622.0

 
1,497.6

 
124.4

 
1,635.8

Non-investment grade other mortgage-backed securities (2)(3)
 
0.5

 
40.8

 
32.7

 
8.1

 
39.4

Foreign government bonds
 
1.0

 
84.9

 
83.6

 
1.3

 
83.3

Redeemable preferred stock, all investment grade
 
0.2

 
17.9

 
17.9

 

 
17.6

Equity securities:
 


 
 
 
 
 
 
 
 
Non-redeemable preferred stocks, all investment grade
 
0.7

 
54.7

 
53.6

 
1.1

 
54.7

Common stocks
 
0.5

 
37.2

 

 
37.2

 
37.2

Closed-end fund
 
0.2

 
19.8

 
19.8

 

 
19.8

Short-term investments (4)
 
1.5

 
122.2

 
97.8

 
24.4

 
122.2

Total publicly traded securities
 
89.4

 
7,377.3

 
6,503.0

 
874.3

 
7,237.7

Other Invested Assets:
 
 
 
 
 
 
 
 
 
 
Investment grade private placements
 
4.1

 
338.5

 
338.5

 

 
336.6

Non-investment grade private placements (2)
 
0.4

 
33.4

 
33.4

 

 
33.5

Mortgage loans (5)