Sounds like they are clearing the decks ...
Horace Mann Educators Puts 3Q Oper Net At 35c-38c/Shr
SPRINGFIELD, Ill. (Dow Jones)--Horace Mann Educators Corp. (HMN) expects to report third-quarter operating income of 35 cents to 38 cents a share, below a First Call/Thomson Financial consensus estimate of 47 cents a share.
For the full year period, operating earnings are estimated to be about $1.65 to $1.75 a share, compared to First Call's estimate of $1.79, the company said in a press release Wednesday.
The company cited higher than anticipated claims in its homeowner business for the shortfall in third-quarter earnings. About half of the shortfall stems from property claims following Hurricane Floyd with the other half related to non-catastrophe property claims.
Catastrophe-related claims are expected to be about $6.7 million on a pretax basis, or 10 cents a share on an after-tax basis. Claims stemming from non-catastrophic events will be about 4 cents a share.
Non-catastrophe property claims were up about 10% from a year-ago.
Pending resolution to a tax dispute Horace Mann has with the Internal Revenue Service for back taxes, the company recorded an additional federal income tax reserve of $20 million, or 48 cents a share, for the third quarter.
Although none of the $20 million reserve has been paid to the IRS, the company "may be forced" to enter ligitation with the IRS if a negotiated settlement isn't reached.
On June 25, the company received a judgement against it of $12.35 million in a Alabama lawsuit related to life insurance policies. The company will take a charge of $1 million, or 2 cents a share, in the third quarter for costs related to the settlement.
-Terrence L. Wade; Dow Jones Newswires; 201-938-5400 |
