Horace Mann (NYSE: HMN) to add $200M revenue in ESI and RNIC deals
Rhea-AI Filing Summary
Horace Mann Educators Corporation entered into agreements with Medical Mutual of Ohio to acquire Employee Services LLC and an individual supplemental insurance platform, including Reserve National Insurance Company and group life and disability reinsurance, for a total net purchase price of approximately $240 million, funded with excess capital and borrowings under its existing revolving credit facility.
The Employee Services LLC membership interests will be acquired for approximately $115 million. Collectively, the acquired and reinsured businesses add nearly $200 million in annual revenue, serve more than one million covered lives across about 7,000 employer relationships, and add over 1,000 agents and brokers. The transactions are expected to be immediately accretive to core earnings per share and shareholder return on equity. Closing is expected in the fourth quarter of 2026 for ESI and the first quarter of 2027 for the RNIC acquisition and reinsurance, subject to customary closing conditions and, where applicable, regulatory approvals, and will create additional direct financial obligations under Horace Mann’s credit facility.
Positive
- Immediately accretive earnings impact: The acquired and reinsured businesses are expected to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity, driven by high-margin insurance operations, recurring fee-based revenue and improved capital efficiency.
- Scale and distribution expansion: The transactions add nearly $200 million in annual revenue, more than one million covered lives, approximately 7,000 employer relationships and over 1,000 agents and brokers, significantly broadening Horace Mann’s customer reach and distribution capabilities.
Negative
- Higher leverage from deal financing: The approximately $240 million total net purchase price will be financed partly through borrowings under Horace Mann’s existing revolving credit facility, increasing the company’s direct financial obligations.
- Closing and regulatory execution risk: The ESI and RNIC-related transactions are expected to close in late 2026 and early 2027 but remain subject to customary closing conditions and, for the RNIC and reinsurance deal, regulatory approvals.
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8-K Event Classification
2 items: 1.01, 9.01
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
ESI purchase price: approximately $115 million
Total net purchase price: approximately $240 million
Annual revenue added: nearly $200 million
+3 more
6 metrics
ESI purchase price
approximately $115 million
Consideration to acquire all equity interests of Employee Services LLC
Total net purchase price
approximately $240 million
Aggregate consideration for the ESI and RNIC-related transactions
Annual revenue added
nearly $200 million
Combined annual revenue of the acquired and reinsured businesses
Covered lives served
more than one million
Individuals covered across employer relationships served by these businesses
Employer relationships
approximately 7,000
Employer customers served by the acquired and reinsured businesses
Agents and brokers added
over 1,000
Additional agents and brokers expanding Horace Mann’s distribution network
Key Terms
Adjusted book value per share, Core earnings (loss), Catastrophe losses, Combined ratio, +2 more
6 terms
Core earnings (loss) financial
"Core earnings (loss) - Consolidated net income (loss) excluding the after-tax impact of net investment gains..."
Catastrophe losses financial
"Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe..."
Catastrophe losses are large, unexpected insurance payouts that follow major disasters such as hurricanes, earthquakes, wildfires or pandemics. They matter to investors because they can sharply reduce an insurer’s profits, drain reserves and force special financing or rate increases — much like a sudden flood overwhelming a city’s budget — and can also ripple through markets by affecting reinsurers, bondholders and stock prices.
Combined ratio financial
"Combined ratio - The sum of the loss ratio and the expense ratio."
The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.
Net income return on equity financial
"Net income return on equity - LTM: The ratio of (1) trailing 12 month net income..."
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What transactions did Horace Mann (HMN) announce with Medical Mutual of Ohio?
Horace Mann agreed to acquire Employee Services LLC, acquire all outstanding capital stock of Reserve National Insurance Company, and reinsure MedMutual Life Insurance Company’s group life and disability business. Medical Mutual will retain the legal insurance entity while Horace Mann gains these operating platforms and relationships.
What is the total purchase price and financing structure for Horace Mann (HMN)?
The combined transactions have a total net purchase price of approximately $240 million, including about $115 million for Employee Services LLC. Horace Mann plans to finance the deals using a combination of excess capital and borrowings under its existing revolving credit facility, creating additional financial obligations.
How will these deals affect Horace Mann (HMN)'s revenue and customer reach?
The acquired and reinsured businesses add nearly $200 million in annual revenue and serve more than one million covered lives. They span approximately 7,000 employer relationships and bring over 1,000 agents and brokers, significantly expanding Horace Mann’s distribution network and employer-focused solutions.
When are the Horace Mann (HMN) transactions expected to close?
The Employee Services LLC acquisition is expected to close in the fourth quarter of 2026. The Reserve National Insurance Company acquisition and MedMutual Life Insurance Company group life and disability reinsurance transaction are expected to close in the first quarter of 2027, subject to customary closing conditions and approvals.
What is the expected earnings impact of the Horace Mann (HMN) acquisitions?
The transactions are expected to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity. Management cites the addition of high-margin insurance businesses, recurring fee-based revenue streams and enhanced capital efficiency as key drivers of the improved earnings profile.
Do the Horace Mann (HMN) acquisitions require regulatory approvals?
The Employee Services LLC deal is subject to customary closing conditions, while the Reserve National Insurance Company acquisition and the MedMutual Life Insurance Company group life and disability reinsurance transaction also require regulatory approvals. Completion timelines depend on satisfying or waiving these specified closing conditions.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report: July 21, 2026
(Exact name of registrant as specified in its charter)
| (State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: 217 ‑789‑2500
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Forward-looking Information
Statements included in the accompanying news release that state Horace Mann Educators Corporation’s (Company) or its management’s intentions, hopes, beliefs, expectations or predictions of future events or the Company’s future financial performance are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to known and unknown risks, uncertainties and other factors. The Company is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Please refer to the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and the Company’s past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements.
Item 1:01: Entry into a Material Definitive Agreement
On July 21, 2026, Horace Mann Educators Corporation, a Delaware corporation (the “Company”), entered into a Membership Interest Purchase Agreement (the “Agreement”), with Medical Mutual of Ohio (“MMO”), pursuant to which the Company will acquire all of the equity interests of Employee Services LLC, a New York limited liability company (“ESI”, and such acquisition, the “ESI Acquisition”). Pursuant to the Agreement and subject to the terms and conditions set forth in the Agreement, the Company will acquire all of the equity interests of ESI for approximately $115 million. The purchase price will be funded with cash on hand and borrowings under the Company’s existing credit facility. The Agreement and the consummation of the transactions contemplated therein have been approved by the Company’s Board of Directors. The closing of the ESI Acquisition is expected to occur in the fourth quarter of 2026, subject to the satisfaction or waiver of applicable closing conditions.
The description above is only a summary of the material provisions of the Agreement, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending September 30, 2026.
Item 2:03: Creation of a Direct Financial Obligation or an Obligation under an Off Balance Sheet Agreement
The information set forth in Item 1.01 above is incorporated herein by reference.
Item 9.01: Financial Statements and Exhibits
(d)Exhibits.
Exhibit 99.1 Glossary of Selected Terms
Exhibit 99.2 Horace Mann Educators Corporation news release dated July 21, 2026
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HORACE MANN EDUCATORS CORPORATION | |||||||||||
Date: July 21, 2026 | By: | /s/ Donald M. Carley | |||||||||
Name: | Donald M. Carley | ||||||||||
Title: | Executive Vice President, General Counsel | ||||||||||
and Chief Administrative Officer | |||||||||||
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Exhibit 99.1
Glossary of Selected Terms
The following measures are used by the Company’s management to evaluate financial performance against historical results and establish targets on a consolidated basis. A number of these measures are components of net income or the balance sheet but, in some cases, are not based on accounting principles generally accepted in the United States of America (non-GAAP) under applicable SEC rules because they are not displayed as separate line items in the Consolidated Statements of Operations and Comprehensive Income (Loss) or Consolidated Balance Sheets or are not required to be disclosed in the Notes to the Consolidated Financial Statements or, in some cases, there is inclusion or exclusion of certain items not ordinarily included or excluded in accordance with accounting principles generally accepted in the United States of America (GAAP).
In the opinion of the Company’s management, a discussion of these measures provides investors, financial analysts, rating agencies and other financial statement users with a better understanding of the significant factors that comprise the Company’s periodic results of operations and how management evaluates the Company's financial performance. Internally, the Company's management uses the measures to evaluate performance against historical results, to establish financial targets on a consolidated basis and for other reasons.
Some of these measures exclude net investment gains (losses), net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates which can be significantly impacted by both discretionary and other economic factors and are not necessarily indicative of operating trends. Also, some of these measures exclude goodwill and intangible asset impairments, intangible asset amortization, legacy commercial exposures and other non-recurring or infrequent items.
Other companies may calculate these measures differently, and, therefore, their measures may not be comparable to those used by the Company’s management.
Adjusted book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure. Management believes it is useful to consider the trend in book value per share excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates in conjunction with book value per share to identify and analyze the change in net worth. Management also believes the non-GAAP measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily financial market conditions, the magnitude and timing of which are generally not influenced by the Company’s underlying insurance operations.
Tangible book value per share - The result of dividing (1) total shareholders’ equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities after-tax net reserve remeasurements attributable to discount rates, goodwill and other intangible assets (including the related impact of deferred taxes) by (2) ending shares outstanding. Book value per share is the most directly comparable GAAP measure.
Adjusted debt to total capitalization ratio, excluding net unrealized investment gains (losses) on fixed maturity securities, net reserve remeasurements attributable to discount rates, and restricted cash for debt repayment - The result of dividing (1) total debt less debt to be repaid by restricted cash by (2) total debt less debt to be repaid by restricted cash, plus common shareholders' equity excluding after-tax net unrealized investment gains (losses) on fixed maturity securities and after-tax net reserve remeasurements attributable to discount rates from common shareholders' equity. The debt to total capitalization ratio is the most directly comparable GAAP measure.
Catastrophe costs - The sum of catastrophe losses, net of reinsurance and before income tax benefits that includes allocated loss adjustment expenses and reinsurance reinstatement premiums, excluding unallocated loss adjustment expenses.
Catastrophe losses - In categorizing property and casualty claims as being from a catastrophe, the Company utilizes the designations of the Property Claim Services, a subsidiary of Insurance Services Office, Inc., and additionally beginning in 2007, includes losses from all such events that meet the definition of a covered loss in the Company’s primary catastrophe excess of loss reinsurance contract, and reports claims and claim expense amounts net of reinsurance recoverables. A catastrophe is a severe loss resulting from natural and man-made events within a particular territory, including risks such as hurricane, fire, earthquake, windstorm, explosion, terrorism and other similar events, that causes $25 million or more in insured property and casualty losses for the
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industry and affects a significant number of property and casualty insurers and policyholders. Each catastrophe has unique characteristics. Catastrophes are not predictable as to timing or amount of loss in advance. Their effects are not included in earnings or claim and claim expense reserves prior to occurrence. In the opinion of the Company’s management, a discussion of the impact of catastrophes is meaningful for investors to understand the variability in periodic earnings.
Core earnings (loss) - Consolidated net income (loss) excluding the after-tax impact of net investment gains (losses), the after-tax impact of legacy commercial exposures, the after-tax impact of intangible asset amortization, the after-tax change in market risk benefits, discontinued operations, the after-tax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and after-tax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Net income is the most directly comparable GAAP measure.
•Pretax core earnings (loss) - Pretax net income (loss) excluding the pretax impact of net investment gains (losses), the pretax impact of legacy commercial exposures, the pretax impact of intangible asset amortization, the pretax impact of the change in market risk benefits, discontinued operations, the pretax impact of goodwill and intangible asset impairments, the cumulative effect of changes in accounting principles when applicable, and pretax significant non-recurring or infrequent items that may not be indicative of ongoing operations. Income before income taxes is the most directly comparable GAAP measure.
•Segment core earnings (loss) - Determined in the same manner as core earnings (loss) on a consolidated basis. Management uses segment core earnings to analyze each segment's performance and as a tool in making business decisions. Financial statement users also consider core earnings when analyzing the results and trends of insurance companies.
Core earnings (loss) per share - Core earnings on a per common share basis. Earnings per share is the most directly comparable GAAP measure.
Net premiums written and contract deposits – Management utilizes this non-GAAP measure, which is based on statutory accounting principles, in analyzing and evaluating business growth. Premiums and contract charges earned is the most directly comparable GAAP measure.
Net premiums written and contract deposits for the Company’s operating segments are as follows:
Property & Casualty
Net premiums written: Reflects the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers. The difference between premiums written and premiums earned is premiums unearned.
Life & Retirement
Life Insurance Product Lines:
•Net premiums written and contract deposits: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business. Contract deposits include amounts received from customers on deposit-type contracts.
Retirement Product Lines:
•Net annuity contract deposits: Reflects total recurring deposits and single deposits/rollovers – net of contract deposits ceded to reinsurers.
Supplemental & Group Benefits
Individual Supplemental Product Lines:
•Net premiums written: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders/certificate holders for the effective period of the contract based on the terms and conditions
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of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business.
Group Benefits Product Lines:
•Net premiums written: Reflects (1) the direct and assumed contractually determined amounts charged to policyholders for the effective period of the contract based on the terms and conditions of the contract and reflect gross premiums written less premiums ceded to reinsurers, and (2) the amount charged for policies in force during a fiscal period for traditional life business.
Investment yield, excluding limited partnership interests - annualized, pretax and after-tax - For the three month periods presented, investment yields are calculated by annualizing the result of year-to-date total net investment income, pretax adjusted to exclude (1) investment income from deposit asset on reinsurance, (2) investment income from limited partnership interests (excluding investment income on commercial mortgage loan funds) and (3) FHLB interest credited for the corresponding periods, divided by the average quarter-end and beginning of quarter carrying amount of the total investment portfolio as presented in the Consolidated Balance Sheets adjusted to exclude (1) FHLB funding agreements, (2) the carrying amount of limited partnership interests (excluding the carrying amount of commercial mortgage loan funds), and (3) gross unrealized investment gains (losses) on fixed maturity securities. For full year periods presented, investment yields are calculated by (i) summing the investment yields for each respective three-month period applicable to the year and (ii) dividing that sum per the calculation in (i) by four. Net investment income is the most directly comparable GAAP measure.
Net income return on equity - LTM: The ratio of (1) trailing 12 month net income to (2) the average of ending shareholders’ equity for the current quarter end and the preceding four quarter ends - referred to as the 5 quarter average of shareholders' equity.
•Net income return on equity - Annualized: The ratio of (1) annualized net income to (2) the 2 quarter average of shareholders' equity.
•Core return on equity - LTM: The ratio of (1) trailing 12 month core earnings to (2) the 5 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - LTM is the most directly comparable GAAP measure.
•Core return on equity - Annualized: The ratio of (1) annualized core earnings to (2) the 2 quarter average of shareholders’ equity excluding net unrealized investment gains (losses) on fixed maturity securities and net reserve remeasurements attributable to discount rates. Net income return on equity - Annualized is the most directly comparable GAAP measure.
Net reserves - Property and casualty unpaid claim and claim expense reserves net of anticipated reinsurance recoverables.
Prior years’ reserve development - A measure which the Company reports for its Property & Casualty segment which identifies the increase or decrease in net incurred claim and claim expense reserves at successive valuation dates for claims which occurred in previous calendar years. In the opinion of management, a discussion of prior years’ reserve development is useful to investors as it allows them to assess the impact on current period earnings of incurred claims experience from the current calendar year and previous calendar years.
Property & Casualty operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of property and casualty underwriting results.
•Loss ratio - The ratio of (1) the sum of net incurred losses and loss adjustment expenses to (2) net premiums earned.
•Underlying loss ratio - The sum of the loss ratio adjusted to remove the effect of catastrophe losses and prior years' reserve development. The loss ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company's underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years' reserve development, the amounts of which may be significant and may vary significantly between periods.
•Expense ratio - The ratio of (1) the sum of operating expenses and the amortization of policy acquisition costs less other income to (2) net earned premiums.
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•Combined ratio - The sum of the loss ratio and the expense ratio. A combined ratio less than 100% generally indicates profitable underwriting prior to the consideration of net investment income.
•Underlying combined ratio or combined ratio excluding catastrophe losses and prior years’ reserve development - The sum of the loss ratio and the expense ratio adjusted to remove the effect of catastrophe losses and prior years’ reserve development. The combined ratio is the most directly comparable GAAP measure. Management believes this ratio provides a valuable measure of the Company’s underlying underwriting performance that may be obscured by the effects of catastrophe losses and prior years’ reserve development, the amounts of which may be significant and may vary significantly between periods.
Supplemental & Group Benefits operating statistics - Operating measures utilized by the Company and the insurance industry regarding the relative profitability of supplemental and group benefits underwriting results.
•Benefits ratio - The ratio of (1) the sum of benefits, settlement expenses and change in reserves to (2) net premiums and contract charges earned.
•Operating expense ratio - The ratio of (1) the sum of operating expenses and DAC amortization expense to (2) total revenues.
•Pretax profit margin - The ratio of (1) net income before income taxes to (2) total revenues.
Sales – Sales data pertains to Horace Mann products and excludes authorized products sold by exclusive agents that are underwritten by third-party vendors. Sales should not be viewed as a substitute for any GAAP measure, including "sales" as it relates to non-insurance companies, and the Company’s definition of sales, sales deposits or new annualized sales might differ from that used by other companies. The Company utilizes sales information as a performance measure that indicates the productivity of its agency force. Sales are also a leading indicator of future revenue trends.
Sales for the Company’s operating segments are as follows:
Property & Casualty
•Sales: Sales are measured as premiums to be collected over the 12 months following the sale of new automobile and property policies.
Life & Retirement
Life Insurance Product Lines:
•Annualized sales: Annualized sales are based on the total yearly premium that the Company would expect to receive if all first year recurring premium policies would remain in force, plus 10% of single and indexed universal life excess premiums. Annualized sales measure activity associated with gaining new insurance business in the current period, and includes deposits received related to universal-life-type products.
Supplemental & Group Benefits
Individual Supplemental Product Lines:
•Sales: Based on application received date on the submitted policy and measured as the submitted annual premium.
Group Benefits Product Lines:
•Sales: Sales are measured based on estimated annualized premium on the effective date of sale.
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Exhibit 99.2
 | News release for immediate release | |||||||
Horace Mann | Medical Mutual of Ohio | ||||
Investor Contact: Rachael Luber Vice President, Investor Relations 217.788.5163 investorrelations@horacemann.com | Media Contact: Jonathon Fauvie Manager, Content, Communications and Public Affairs jonathon.fauvie@medmutual.com | ||||
Media Contact: David Goldberg Assistant Vice President, Enterprise Communications 617.435.5776 david.goldberg@horacemann.com | |||||
Horace Mann Strengthens Customer Relationships and Accelerates Long-Term Growth Through Transactions with Medical Mutual of Ohio
Enhancing employer solutions, expanding distribution capabilities, and broadening customer reach
SPRINGFIELD, Ill., and CLEVELAND, Ohio, July 21, 2026 – Horace Mann Educators Corporation (NYSE: HMN) and Medical Mutual of Ohio today announced they have entered into two separate agreements under which Horace Mann will acquire the employee assistance provider Employee Services, LLC (ESI) through the acquisition of ESI membership interests, and separately, will acquire an individual supplemental platform through the acquisition of all outstanding capital stock of Reserve National Insurance Company (RNIC) and reinsure MedMutual Life Insurance Company’s group life and disability business while Medical Mutual of Ohio will retain the legal insurance entity.
Together, these established businesses bring deep expertise, strong customer relationships and complementary capabilities to Horace Mann. These transactions add nearly $200 million in annual revenue, serve more than one million covered lives across approximately 7,000 employer relationships, and add over 1,000 agents and brokers, significantly expanding Horace Mann’s customer reach and distribution capabilities.
The transactions are expected to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity by strengthening the company's earnings profile through a combination of high-margin insurance businesses, recurring fee-based revenue and enhanced capital efficiency.
"Our strategy has always been centered on creating stronger customer relationships by providing meaningful solutions that meet our customer needs," said Marita Zuraitis, President and Chief Executive Officer of Horace Mann. "These businesses build on our long-term strategy by enhancing our employer value proposition, broadening our distribution capabilities and expanding customer relationships. They create more opportunities to serve educators and employers with a broader portfolio of solutions while extending our reach through complementary customer and distribution relationships."
"These transactions also reflect the disciplined approach we've consistently taken to capital allocation. We invest where we see the strongest opportunities to create long-term profitable growth while delivering attractive returns for shareholders. The differentiated capabilities, high-quality earnings, and exceptional people joining Horace Mann make these businesses both a natural strategic fit and an attractive financial investment."
The Horace Mann Companies 1 Horace Mann Plaza Springfield, Illinois 62715-0001
217-789-2500 www.horacemann.com
“This decision reflects our ongoing focus to align our portfolio with our long-term strategy,” said Tony Helton, President and Chief Executive Officer of Medical Mutual. “We will continue to focus our investment and leadership attention on our core businesses and deliver the highest value for our customers and the communities we serve. We are pleased to work with Horace Mann on an outcome that advances the objectives of both organizations and supports a smooth transition for customers, partners and team members while ensuring these businesses continue to thrive.”
Customers and business partners should not experience any disruption to service or ongoing support as a result of these transactions. Medical Mutual and Horace Mann are committed to ensuring a seamless transition and maintaining the high level of service stakeholders expect.
These transactions have a total net purchase price of approximately $240 million and will be financed through a combination of excess capital and borrowings under Horace Mann's existing revolving credit facility.
The ESI transaction is expected to close in the fourth quarter of 2026. The RNIC acquisition and the MedMutual Life Insurance Company group life and disability reinsurance transaction are expected to close in the first quarter of 2027. Each transaction remains subject to customary closing conditions. The acquisition of RNIC and the reinsurance business of MedMutual Life Insurance Company is also subject to regulatory approvals.
Advisors
Raymond James & Associates is acting as financial advisor to Horace Mann and Eversheds Sutherland (US) LLP is acting as legal counsel to Horace Mann. Squire Patton Boggs is acting as legal counsel for Medical Mutual of Ohio and Sherman & Company is acting as financial advisor.
Investor Conference Call/Webcast
Horace Mann will host a conference call to discuss the transactions on Wednesday, July 22, 2026 at 8:30 a.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and available later in the day for replay.
About Horace Mann
Horace Mann Educators Corporation (NYSE:HMN) is the largest multiline financial services company focused on helping America’s educators and others who serve the community achieve lifelong financial success. The company offers individual and group insurance and financial solutions tailored to the needs of the educator community. Founded by Educators for Educators® in 1945, the company is headquartered in Springfield, Illinois. For more information, visit www.horacemann.com.
About Medical Mutual of Ohio
Founded in 1934, Medical Mutual is the oldest and one of the largest health insurance companies based in Ohio. The company provides peace of mind to more than 1.1 million Ohioans through high-quality health, dental and vision products. Medical Mutual offers fully insured and self-funded group coverage, including stop loss, as well as Medicare Advantage, Medicare Supplement and Individual plans. As a mutual company, Medical Mutual is owned by its members, not stockholders. The company focuses on products and services that help customers and communities live healthier through all stages of life. For more information, visit the MedMutual.com.
Safe Harbor Statement
Statements included in this news release that are not historical in nature are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Horace Mann and its subsidiaries. Horace Mann cautions investors that such
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statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond Horace Mann’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements included in this document. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Information” sections included in Horace Mann’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC). Horace Mann does not undertake to update any particular forward-looking statement included in this document if we later become aware that such statement is not likely to be achieved.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the acquisition, the merger or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except in accordance with the Securities Act of 1933, as amended, and other applicable law.
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