Horace Mann Educators Corporation, an insurance and retirement solutions company for US educators and school employees, has completed its acquisition of Madison National Life Insurance Company, Inc.
Madison National Life is a provider of group life, disability and specialty health insurance for educators and public sector employees.
The transaction was funded with cash on hand and additional borrowings on the company’s revolving credit facility.
“Bringing Horace Mann and Madison National Life together greatly expands our ability to serve educators,” said Horace Mann President and CEO Marita Zuraitis.
“In addition to our historical strength in the individual educator space, we can now provide employer-sponsored protection products that school districts are increasingly looking to offer to boost educator recruitment and retention. The markets are distinct, but the outcome is the same: Helping deserving educators protect what they have today and prepare for a successful tomorrow.”
“We continue to expect 2022 EPS accretion from the transaction to be at least 15 cents to 20 cents with approximately a 50 basis point contribution to ROE,” Zuraitis added.
“This initial estimate of accretion for Horace Mann only captures Madison’s current business activity. We’re enthusiastic about the opportunity to quickly deliver growth and additional earnings from an expanded Supplemental & Group Benefits division.”
Beginning with first quarter 2022, Horace Mann will report financial results in two divisions.
Individual Insurance & Financial Services will include the Property & Casualty and Life & Retirement segments and Supplemental & Group Benefits will include the Supplemental business as well as the results of Madison National Life in one segment.
Roy T. K. Thung, Chief Executive Officer of Independence Holding Company (IHC), the parent company of Madison National Life, further stated: “We are very pleased that the transaction closed on schedule and appreciate all the efforts made by both companies to successfully complete the sale.”
“We believe that the sale of Madison National Life to Horace Mann is beneficial to both companies. We are confident that Madison National Life will have continued growth under Horace Mann’s ownership.”
