Horace Mann completes acquisition of Madison National Life Insurance Company
03 January 2022 - 11:30PM
Business Wire
Horace Mann Educators Foundation marks
commitment to community with contribution to Madison Public Schools
Foundation
Horace Mann Educators Corporation (NYSE:HMN) announced today
that it has closed the acquisition of Madison National Life
Insurance Company, Inc., 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.
Reflecting those borrowings, Horace Mann’s leverage ratio will be
approximately 25% at year-end 2021, which aligns with levels
appropriate for the company’s current financial strength
ratings.
“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, which will include the Property & Casualty
and Life & Retirement segments; and Supplemental & Group
Benefits, which will include the Supplemental business as well as
the results of Madison National Life in one segment.
“At Horace Mann, we are committed to making a positive impact in
the communities in which we live and work. In honor of our newest
community, the Horace Mann Educators Foundation is making a $20,000
contribution to the Madison Public Schools Foundation’s Teacher
Support Network,” Zuraitis said. “Educators paying for school
supplies out of their own pockets is unfortunately common, and can
be an obstacle to financial wellness. In Madison, the Teacher
Support Network works to efficiently provide school supplies to
classrooms that need it most, so teachers don’t have to buy them
with personal funds. We’re proud to support their unique model that
helps both educators and their students in this community.”
About Horace Mann
Horace Mann Educators Corporation (NYSE:HMN) provides individual
and group insurance and financial solutions that help America’s
educators and others who serve the community achieve lifelong
financial success. Founded by Educators for Educators® in 1945, the
company is headquartered in Springfield, Illinois. For more
information, visit horacemann.com.
Safe Harbor Statement and Non-GAAP Measures
Statements included in this news release that are not historical
in nature are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to certain
risks and uncertainties. Horace Mann is not under any obligation to
(and expressly disclaims any such obligation to) update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. Please refer to the
company’s Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2021 and the company’s past and future filings
and reports filed with the Securities and Exchange Commission (SEC)
for information concerning important factors that could cause
actual results to differ materially from those in forward-looking
statements. Information contained in this news release include
measures which are based on methodologies other than accounting
principles generally accepted in the United States of America
(GAAP). Reconciliations of non-GAAP measures to the closest GAAP
measures are contained in the Appendix to the Investor Supplement
and additional descriptions of the non-GAAP measures are contained
in the Glossary of Selected Terms included as an exhibit to the
company’s SEC filings.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220102005027/en/
Heather J. Wietzel Vice President, Investor Relations and
Enterprise Communications 217.788.5144
investorrelations@horacemann.com
Horace Mann Educators (NYSE:HMN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Horace Mann Educators (NYSE:HMN)
Historical Stock Chart
From Jul 2023 to Jul 2024