PROPERTY AND CASUALTY INSURANCE
Horace Mann Expanding to NJ, Partnering With Plymouth Rock on Home and Auto
SPRINGFIELD, Ill. //BestWire// - Horace Mann is expanding to New Jersey, where it will offer its financial products and, in partnership with Plymouth Rock Assurance, automobile and homeowners insurance to educators.
“In addition to our partnership with Plymouth Rock, we will bring a full suite of offerings and services, from our student loan solutions program and teacher appreciation events to life and retirement products and solutions," Horace Mann National Sales Senior Vice President Heather Cabra said in statement.
Plymouth Rock direct underwritten and managed premiums grew nearly 15% in 2023, exceeding $2 billion at the privately owned company in January, according to a Plymouth Rock chairman’s letter earlier in the year.
New Jersey is its second-largest state for independent agent business. The state “has been more reluctant than other states to grant homeowners rate increases” but the company has done “reasonably well in private passenger auto. We write $290 million worth of independent agent automobile volume in the Garden State, with a 2023 combined ratio of 100,” Chairman James Stone said in the letter.
He said the home group would shed policies that don’t meet the current risk appetite, raise rates on underpriced but wanted business and protect profitable business from “price increase they don’t deserve to suffer.”
Providence Mutual Fire Insurance Co. recently said it agreed to transfer its automobile insurance business to Plymouth Rock Assurance Co., which will offer renewals to policyholders in Connecticut and New Hampshire (BestWire, Nov. 15, 2024).
Horace Mann Insurance Group maintains the strongest level of risk-adjusted capitalization as measured by Best's Capital Adequacy Ratio, benefitting from conservative reserving practices and low reinsurance dependence, according to a Best’s Credit Report.
The company’s auto line has been adversely impacted by accident frequency approaching pre-pandemic levels, economic inflation and social inflation driving unprecedented increases in claims severity, AM Best said in the report, while property combined ratios reflected the continued impact of increased frequency, severity and geographic spread of weather-related losses.
“Strong brand recognition within the educator market and policyholder loyalty provide cross-marketing opportunities between property and casualty product lines as well as life, annuity and supplemental products,” AM Best said. “Products are marketed through exclusive distributors with strong school district relationships. Many of these agents were previously members of the education profession.”
Operating entities of Horace Mann educators Corp. currently have a Best’s Financial Strength Rating of A (Excellent). Plymouth Rock Co. Inc. entities are rated A- (Excellent).
(By Renée Kiriluk-Hill, senior associate editor, BestWire: Renee.Kiriluk-Hill@ambest.com)