Horace Mann to acquire Madison National Life in $172 million transaction

Horace Mann Educators Corporation has signed a definitive agreement to acquire Madison National Life Insurance Company, a subsidiary of Independence Holding Company. Madison National is a leading writer of employer-paid and sponsored benefits provided to educators by K-12 school districts. The transaction is expected to close early in the first quarter of 2022, subject to regulatory approval and other customary closing conditions.

Headquartered in Madison, Wisconsin, Madison National offers short- and long-term group disability, group life and other products, with K-12 school districts representing 80% of 2020 premiums.

Horace Mann has also entered into a long-term distribution agreement with National Insurance Services, a key distribution partner for Madison National for almost 40 years. NIS is an AssuredPartners company that provides employee benefit solutions exclusively for K-12 schools and other public sector organizations. In 2020, Madison National’s net premiums were approximately $108 million and statutory earnings were approximately $14 million.

“The transaction accelerates our progress on all fronts of our multi-year strategic plan: strengthening our product offerings, enhancing our distribution and adding capabilities to our infrastructure. This ultimately will help us achieve our long-term objectives of a sustainable double-digit ROE and significant education market share growth,” said Marita Zuraitis, president and CEO of Horace Mann.“We are excited to be adding the distribution that enables us to serve every employee in a district with employer-sponsored solutions designed to help districts attract and retain good educators. This comes at a time when districts are increasingly looking to provide more comprehensive benefits to educators.”

“With 60 years of experience, Madison National today delivers flexible, scalable solutions to school districts through a modern, user-friendly platform,” said the senior executive at Madison National, Bob Stubbe. “We look forward to joining forces with Horace Mann to continue to serve the education market with financial solutions that meet the needs of school districts and educators.”

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