We aim to grow the percentage of our investments that support the public good.

Prudent stewardship of Horace Mann’s nearly $7 billion investment portfolio is vital to ensure we meet our promises to policyholders, employees and other stakeholders. We and our outside asset managers cultivate a conservative risk management culture that appropriately balances investment returns with ESG risks and opportunities. We pursue diversified investment strategies that are designed to limit portfolio volatility, appropriately navigate changing market dynamics and economic uncertainty, and proactively identify and capitalize on opportunities — all of which contributes to competitive risk-adjusted returns. Our investment strategy has resulted in strong and stable investment returns, allowing us to provide financial security to our customers at their time of need — whether we’re paying their catastrophe claims, life insurance benefits or lifelong retirement income.

Investing Responsibly

ESG integration

In 2019, we formally incorporated ESG factors into our investment management framework. We aligned our ESG Investment Policy with the Principles for Responsible Investment (PRI) supported by the United Nations. Specifically:

  • All our primary asset managers are PRI signatories.
  • We and nearly all our asset managers have fully integrated ESG risks and opportunities into the investment decision-making process across our entire portfolio. Incorporating ESG screens into our investment analysis and decision-making process is designed to minimize investment risks while surfacing investment opportunities that are consistent with Horace Mann’s values, such as ethical conduct. In addition, we prohibit investments in gun manufacturers, given the negative societal impact guns have in our K-12 education community.
  • We meet with our primary asset managers annually to discuss their ESG methodologies and how these are incorporated into their investment processes.

Within our investment portfolio, we hold $2.0 billion in responsible investments, up from $1.9 billion in 2019. Responsible investments provide societal and environmental benefits, while also generating a long-term sustainable return to benefit all stakeholders. The major categories include:

  • Green investments: Our $39.9 million green investment portfolio includes equity stakes in 20 LEED-certified real estate properties and five green investments.
  • Infrastructure investments: Our $121.7 million portfolio includes positions in 36 projects that build, upgrade or maintain transportation networks of airports, seaports, railroads and roads, as well as energy pipelines, power generation facilities and transmission lines around the world. Of the infrastructure investments, we held $31.1 million in renewable projects.
  • Impact investments: We have been a member of the Federal Home Loan Bank of Chicago (FHLB) since 2013. FHLB provides reliable liquidity to member institutions and economic development loans, improving access to mortgage loan financing, fostering homeownership and facilitating affordable housing development.
  • Municipal bonds: Municipal bonds are a core component of our investment portfolio. These holdings directly support infrastructure and community services, provide funding for K-12 and higher education, generate economic development and create jobs. Our $1.8 billion portfolio represents about 25% of our assets and provides funding to nearly 600 communities in 48 states.