Intangible Valuation
Value, contrarian, coat tail rider, idiosyncratic research

Horace Mann Educators: Insuring Teachers At A Discount To Book

Horace Mann Educators Corporation (NYSE:HMN) is not your average insurer. Recall, for a moment, the article 21 year old Buffett wrote about GEICO in 1951. In it he describes the benefits of owning an insurance business ("lack of inventory, [no] collection, [or] labor and raw material problems… [no problem of] product obsolescence [or] related equipment obsolescence"), and he also describes why GEICO is great: it selects from a very specific class of individuals whom are considered low risks -- government employees. Further, it lacks agent commission expenses by skipping agents altogether - you know the old story.

One of the groups GEICO targeted was faculty members of schools -- a similarity shared with Horace Mann Educators. In addition...

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