Horace Mann Educators Co. (Horace Mann) has completed the acquisition of Madison National Life Insurance from Independence Holding Company (IHC).
The acquired firm provides group life, disability and speciality health insurance to educators and public sector employees.
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Horace Mann paid $172.5m in cash for the life insurer that saw 80% of its 2020 premiums coming from K-12 school districts.
As per the agreement signed in July 2021, if Madison National Life achieves set financial targets in 2023, IHC can receive an additional price of up to $12.5m.
Horace Mann had also signed a long-term distribution agreement with Madison National’s distribution partner National Insurance Services (NIS).
Horace Mann president and CEO Marita Zuraitis said: “Bringing Horace Mann and Madison National Life together greatly expands our ability to serve educators.
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By GlobalData“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.”
Zuraitis also announced a $20,000 contribution to the Madison Public Schools Foundation’s Teacher Support Network.
IHC CEO Roy Thung said: “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.”
