Independence Holding Company (IHC) has signed an agreement to sell Madison National Life Insurance Company to Horace Mann for $172.5m in cash.
Wisconsin-based Madison National writes ‘employer-paid and sponsored benefits provided to educators by K-12 school districts’ that represent 80% of its 2020 premiums.
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Licensed to operate in 49 US states, the firm specialises in health, life and disability insurance.
Madison National is a wholly-owned subsidiary of Independence Capital Co. (ICC), which is owned by IHC.
Under the terms of the agreement, if the acquired firm achieves set financial targets in 2023, IHC can garner an additional price of up to $12.5m.
Concurrently, Horace Mann signed a distribution agreement with Madison National’s key distribution partner National Insurance Services (NIS).
IHC has also announced that Robert Stubbe will take charge as the president of Madison National until the transaction is complete.
Horace Mann president and CEO Marita Zuraitis said: “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.
“With Madison National, Horace Mann will be able to serve K-12 educators through a new distribution channel that is entirely complementary to Horace Mann’s strengths in individual products sold through local, trusted advisors.”
The deal is expected to close early in the first quarter of next year. However, it is subject to regulatory approval and other customary closing conditions.
