CONTACTS:
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 11, 2018 07:46 AM (EST)
AM Best has commented that the Credit Ratings (ratings) of Horace Mann Educators Corporation (Horace Mann) (headquartered in Springfield, IL) [NYSE: HMN] and its insurance operating subsidiaries are unchanged following the recent announcement that Horace Mann has signed a definitive agreement to acquire National Teachers Associates Life Insurance Company (NTA Life) (Addison, TX) and its subsidiary, NTA Life Insurance Company of New York (NTA Life of NY) (New York, NY).
NTA Life and NTA Life of NY are established insurers in the voluntary supplemental health and life insurance market, with nationwide distribution capabilities and a captive sales force. Under the terms of the transaction, Horace Mann will acquire NTA Life for $405 million. The transaction can be funded with cash from the combined companies and $250 million of new senior debt issued prior to closing. NTA Life will afford Horace Mann with diversification in premiums and earnings, and improve the value proposition for the education market.
Following the completion of the acquisition, Horace Mann’s financial leverage and coverage are expected to remain in line with AM Best’s expectations for its current rating level. AM Best will continue to assess the impact of the transaction, as additional details are made available and will consider rating actions should they become necessary. The closing of the transaction is expected to be completed in the second quarter of 2019.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global rating agency and information provider with a unique focus on the insurance industry.