Horace Mann Educators Corporation has announced new agreements with Medical Mutual of Ohio to expand its insurance solutions & strengthen customer relationships. The agreements include the acquisition of Employee Services, LLC (ESI) and an individual supplemental platform.
Through the transactions, the company would receive ESI Membership Interests. The firm would also acquire Reserve National Insurance Company (RNIC) by purchasing all its capital stock. Horace Mann would also reinsure group life and disability business for MedMutual Life Insurance Company.
In conjunction with each other, these companies will improve the abilities and visibility of the organization. The deal brings in close to $200 million per year in terms of income. Also, these deals will open up access to more than one million covered lives with around 7,000 employers. In addition to that, more than 1,000 agents and brokers will be added through these deals.
“Our strategy has always been centered on creating stronger customer relationships by providing meaningful solutions that meet our customer needs,” said Marita Zuraitis, President and Chief Executive Officer of Horace Mann. “These businesses build on our long-term strategy by enhancing our employer value proposition, broadening our distribution capabilities and expanding customer relationships. They create more opportunities to serve educators and employers with a broader portfolio of solutions while extending our reach through complementary customer and distribution relationships.”
“These transactions also reflect the disciplined approach we’ve consistently taken to capital allocation. We invest where we see the strongest opportunities to create long-term profitable growth while delivering attractive returns for shareholders. The differentiated capabilities, high-quality earnings, and exceptional people joining Horace Mann make these businesses both a natural strategic fit and an attractive financial investment.”
Transactions Support Long-Term Growth Strategy
The deals align with the plan of the company to offer wider insurance solutions to educators, employers, and institutions. Also, the deals are expected to help with improving the earnings power and returns to the shareholders. The company believes that there will be benefits from the very first moment through the high-margin insurance operations & fees revenues.
“This decision reflects our ongoing focus to align our portfolio with our long-term strategy,” said Tony Helton, President and Chief Executive Officer of Medical Mutual. “We will continue to focus our investment and leadership attention on our core businesses and deliver the highest value for our customers and the communities we serve. We are pleased to work with Horace Mann on an outcome that advances the objectives of both organizations and supports a smooth transition for customers, partners and team members while ensuring these businesses continue to thrive.”
Support for customers and partners will be provided uninterrupted during the process of acquisition. The company and Medical Mutual have pledged to continue providing the same level of service even after the acquisition. The total cost for net purchases for the transactions is estimated at about $240 million.The company will finance the acquisitions using extra cash and existing lines of credit. ESI acquisition is expected to be completed in Q4 2026. Other acquisitions are expected to be completed in Q1 2027.
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News Source: Businesswire.com
