AM Best Comments on Credit Ratings of Horace Mann Educators Corporation and Its Subsidiaries Following Announced Transaction with Medical Mutual of Ohio

AM Best has commented that the Credit Ratings (ratings) of Horace Mann Educators Corporation (headquartered in Springfield, IL) and its subsidiaries remain unchanged following the announcement of its transaction with Medical Mutual of Ohio to acquire Employee Services, LLC (ESI) and Reserve National Insurance Company (RNIC). Additionally, Horace Mann will reinsure MedMutual Life Insurance Company’s group life and disability business, while Medical Mutual of Ohio retains the legal insurance entity.

These transactions are expected to broaden Horace Mann’s individual supplemental and group benefits business and provide additional diversification to the organization’s business profile. The total net purchase price is approximately $240 million and is expected to be funded through a combination of excess capital and borrowings under Horace Mann’s existing revolving credit facility. The transactions are modest relative to Horace Mann’s overall operations, and AM Best does not expect them to materially affect the organization’s balance sheet strength or operating performance over the near to intermediate terms. The ESI transaction is expected to close in fourth-quarter 2026. The RNIC acquisition and the MedMutual Life Insurance Company group life and disability business transactions are expected to close in first-quarter 2027.

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.

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