AM Best Upgrades Credit Ratings of Members of National Teachers Association Life Group & Affirms Credit Ratings of Horace Man...
July 14 2021 - 3:50PM
Business Wire
AM Best has the upgraded the Financial Strength Rating
(FSR) to A (Excellent) from A- (Excellent) and the Long-Term Issuer
Credit Ratings (Long-Term ICRs) to “a” (Excellent) from “a-”
(Excellent) of National Teachers Associates Life Insurance Company
(Addison, TX) and its affiliated entity, NTA Life Insurance Company
of New York (New York, NY) (collectively referred to as NTA Life).
In addition, AM Best has affirmed the FSR of A (Excellent) and the
Long-Term ICRs of “a” (Excellent) of the property/casualty (P/C)
members of Horace Mann Insurance Group (Horace Mann). AM Best also
has affirmed the FSR of A (Excellent) and the Long-Term ICR of “a”
(Excellent) of Horace Mann Life Insurance Company (Horace Mann
Life). Concurrently, AM Best has affirmed the Long-Term ICR of
“bbb” (Good) of Horace Mann Educators Corporation (HMEC) [NYSE:
HMN] and the Long-Term Issue Credit Rating of “bbb” (Good) on its
$250 million, 4.5% senior unsecured notes, due 2025. The outlook of
these Credit Ratings (ratings) is stable. All companies are
headquartered in Springfield, IL, unless otherwise specified. (See
below for a detailed list of the P/C subsidiaries).
In addition, AM Best has commented that the ratings of HMEC and
its insurance operating subsidiaries are unchanged following the
disclosure of relevant public information. The comment follows the
July 14, 2021, announcement by HMEC that the organization has
entered into a definitive agreement to acquire Madison National
Life Insurance Company, Inc. (Madison National), a subsidiary of
Independence Holding Company (NYSE: IHC). Madison National is
domiciled in Wisconsin and offers short- and long-term group
disability insurance, group life insurance and other group
products. They are a leading writer of employer-paid and
employer-sponsored benefits provided to educators by K-12 school
districts with multiple distribution relationships and
capabilities. Madison National will afford HMEC with
diversification in premiums and earnings and improve the value
proposition for the education market. AM Best will continue to
monitor the impact of this transaction, which is expected to close
in January 2022.
The ratings of NTA Life reflect its balance sheet strength,
which AM Best assesses as very strong, as well as its adequate
operating performance, limited business profile and appropriate
enterprise risk management (ERM). The ratings also reflect support
the company receives from its parent, HMEC, and full integration of
their operations, as products of NTA Life are cross-sold as
complementary products to the life and P/C products.
AM Best expects NTA Life’s risk-adjusted capital to remain at
the strongest level, as measured by Best’s Capital Adequacy Ratio
(BCAR). NTA Life has reported consistent net income and strong
profitability ratios offering supplemental insurance products.
The ratings of Horace Mann reflect the group’s balance sheet
strength, which AM Best assesses as strongest, as well as its
adequate operating performance, neutral business profile and
appropriate ERM.
Horace Mann maintains the strongest level of risk-adjusted
capitalization. as measured by BCAR, which benefits from a solid
investment portfolio and conservative reserving practices. The
group continues to report favorable underwriting results driven by
reduced frequency of claims due to the pandemic despite an increase
in catastrophe losses.
The ratings of Horace Mann Life reflect its balance sheet
strength, which AM Best assesses as strong, as well as its strong
operating performance, neutral business profile and appropriate
ERM.
Horace Mann Life has established itself as one of the largest
providers of 403(b) tax-qualified fixed and variable annuities in
the United States, focused on educators as its primary market. The
company continues to report solid net income, which has contributed
to capital and surplus growth. Operating performance is enhanced by
favorable persistency, cost reduction initiatives and increased
agent productivity.
The FSR of A (Excellent) and the Long-Term ICRs of “a”
(Excellent) have been affirmed with a stable outlook for the
following P/C members of Horace Mann Insurance Group:
- Horace Mann Insurance Company
- Horace Mann Property & Casualty Insurance Company
- Teachers Insurance Company
- Horace Mann Lloyds
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 Guide to 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 credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in London, Amsterdam,
Dubai, Hong Kong, Singapore and Mexico City. For more information,
visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: https://www.businesswire.com/news/home/20210714005904/en/
Joni Cerbone Senior Financial Analyst +1 908
439 2200, ext. 5726 joni.cerbone@ambest.com Jacqalene
Lentz Director +1 908 439 2200, ext. 5762
jacqalene.lentz@ambest.com Christopher Sharkey Manager,
Public Relations +1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com Jim Peavy Director,
Communications +1 908 439 2200, ext. 5644
james.peavy@ambest.com
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