OLDWICK, NJ, August 22, 2024–(BUSINESS WIRE)–AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a” (Excellent) of property/casualty insurance members 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 ICR of “a” (Excellent) of National Teachers Associates Life Insurance Company (Addison, TX) and its affiliate NTA Life Insurance Company of New York (New York, NY) (collectively referred to as NTA Life). At the same time, 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). In addition, AM Best has affirmed Horace Mann Educators Corporation (HMEC) (NYSE: HMN)’s Long-Term ICR of ‘bbb’ (Good) and Long-Term IR of ‘bbb’ (Good) on its $250 million 4.5% senior unsecured notes due 2025. The outlook on these credit ratings (ratings) is stable. Unless otherwise noted, all entities are headquartered in Springfield, IL. (A detailed list of P/C subsidiaries is provided below.) Finally, AM Best has assigned a Long-Term IR of ‘bbb’ (Good) on HMEC’s (NYSE: HMN) $300 million 7.25% senior unsecured notes due 2028. The outlook assigned to this rating is stable.
Horace Mann’s ratings reflect the group’s balance sheet strength, which AM Best considers to be the strongest, as well as its adequate operating performance, neutral business profile and adequate enterprise risk management (ERM).
Horace Mann has the strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), benefiting from a diversified investment portfolio and conservative reserving practices. The Group’s operating results have been weak in recent years as they continue to be impacted by severe weather as well as rising claim costs largely driven by inflation in the auto and property insurance segments. Strong net investment income has helped offset underwriting losses. The Group has taken significant interest and non-interest actions to restore profitability. The Group’s current insurance activities include underwriting auto, homeowners and ancillary lines. The Group has achieved high brand recognition in the educator market and benefits from significant policyholder loyalty.
Horace Mann Life’s ratings reflect the strength of its balance sheet, which AM Best considers to be strong, as well as its strong operating performance, neutral business profile and adequate ERM.
Horace Mann Life has established itself as one of the largest providers of tax-advantaged 403(b) fixed and variable annuities in the United States, with a primary focus on educators. Horace Mann Life offers a diversified mix of life, annuity and retirement products. The company has generated consistent pretax operating profits over the past five years. Operating performance is enhanced by favorable consistency, cost-cutting initiatives and increased agent productivity.
NTA Life’s ratings reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as its adequate operating performance, limited business profile and adequate ERM. The ratings also reflect the support the company receives from its parent company HMEC and the full integration of its operations.
NTA Life has the highest risk-adjusted capitalization as measured by BCAR. The company has reported consistent net income and strong profitability metrics. NTA Life’s product mix complements Horace Mann’s already diverse product line with additional complementary products to better meet the needs of educators.
Madison National Life’s ratings reflect the strength of its balance sheet, which AM Best considers to be very strong, as well as adequate operating performance, a limited business profile and adequate ERM. The ratings also reflect the support the company receives from its parent company, HMEC, and the full integration of their operations. Madison National Life’s products complement Horace Mann’s property/casualty, life and supplemental products.
Madison National Life has the highest risk-adjusted capitalization as measured by BCAR. The company’s capitalization benefits from historically profitable operating performance. The company offers employer-sponsored retirement products, including short- and long-term disability and group life insurance, which further strengthens Horace Mann’s complementary business with a full range of group and individual products and additional distribution capabilities.
The FSR of A (Excellent) and the long-term ICRs of ‘a’ (Excellent) were affirmed with stable outlooks for the following P/C members of Horace Mann Insurance Group:
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Horace Mann Insurance Company
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Horace Mann Property and Casualty Insurance Company
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Teachers Insurance Company
This press release refers to credit ratings published on AM Best’s website. All rating information related to this publication and related disclosures, including the identification of the bureau responsible for assigning each credit rating mentioned in this press release, can be found on AM Best’s website. Current review activity Website. For more information on the use and limitations of credit rating opinions, see Guide to Best Credit Ratings. For information regarding the proper use of AM Best’s credit ratings, performance ratings, preliminary credit ratings and press releases, please visit Guide to the correct use of Best’s ratings and reviews.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. The company is headquartered in the United States and operates in over 100 countries. It has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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