AM Best Affirms Credit Ratings of Horace Mann Educators Corporation and Its Subsidiaries
July 28 2022 - 9:58AM
Business Wire
AM Best has affirmed the Financial Strength Rating (FSR)
of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “a” (Excellent) of the property/casualty (P/C) members of
Horace Mann Insurance Group (Horace Mann), and Horace Mann Life
Insurance Company (Horace Mann Life). In addition, AM Best has
affirmed the FSR of A (Excellent) and the Long-Term ICRs of “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).
Concurrently, AM Best has affirmed the FSR of A- (Excellent) and
the Long-Term ICR of “a-” (Excellent) of Madison National Life
Insurance Company (Madison National Life) (Madison WI). Lastly, 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).
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 enterprise risk management (ERM).
Horace Mann maintains the strongest level of risk-adjusted
capitalization, as measured by Best’s Capital Adequacy Ratio
(BCAR), which benefits from a solid investment portfolio and
conservative reserving practices. The group continues to report
positive operating results driven primarily by strong net
investment income. Current underwriting activities of the group
include the writing of automobile, homeowners and supporting lines
of business. The group has achieved strong brand recognition within
the educator’s market and benefits from significant policyholder
loyalty.
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.
Horace Man Life offers a diversified mix of life, annuities and
retirement products. The company has shown consistent pre-tax
operating gains over the past five years, which has contributed to
capital and surplus growth. Operating performance is enhanced by
favorable persistency, cost reduction initiatives and increased
agent productivity.
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
ERM. The ratings also reflect support the company receives from its
parent, HMEC, and full integration of its operations, as products
of NTA Life are cross-sold as complimentary products to the life
and P/C products.
NTA Life maintains the very strong level of risk-adjusted
capitalization, as measured by BCAR. The company has reported
consistent net income and strong profitability ratios. NTA Life’s
product mix added to Horace Mann’s already diverse suite of
products brings additional complementary products to better meet
the needs of educators.
The ratings of Madison National Life reflect its balance sheet
strength, which AM Best assesses as very strong, as well as
adequate operating performance, limited business profile and
appropriate ERM.
Madison National Life maintains the strongest level of
risk-adjusted capital, as measured by BCAR. The company’s capital
position has benefited from historically profitable operating
performance. Madison National Life was acquired by Horace Mann in
early 2022. The company offers employer-sponsored benefit products,
including short- and long-term disability and group life, which
further enhances Horace Mann’s supplemental business line by
offering a full suite of group and individual products along with
additional distribution capabilities.
The FSR of A (Excellent) and the Long-Term ICRs of “a”
(Excellent) have been affirmed with stable outlooks 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 use of Best’s Credit Ratings, Best’s Performance
Assessments, Best’s Preliminary Credit Assessments and AM Best
press releases, please view Guide to Proper Use of Best’s
Ratings & Assessments.
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 © 2022 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/20220728005722/en/
Joni Cerbone, CPA Senior Financial Analyst +1
908 439 2200, ext. 5726 joni.cerbone@ambest.com
Rosemarie Mirabella Director +1 908 439 2200,
ext. 5892 rosemarie.mirabella@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jeff Mango Managing Director, Strategy &
Communications +1 908 439 2200, ext. 5204
jeffrey.mango@ambest.com
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