Madison National Life Insurance to be bought by Horace Mann for $172.5 million
Madison National Life Insurance offers employer benefits to K-12 school districts.
Horace Mann Educators Corp. plans to buy Madison National Life Insurance Co., a subsidiary of Independence Holding Co., for $172.5 million, Horace Mann said Wednesday.
The acquisition by Springfield, Illinois-based Horace Mann of Madison-based Madison National, which offers employer benefits to school districts, is expected to close in the first quarter of 2022, subject to regulatory approval.
Madison National, which has 86 employees and is based at 1241 John Q Hammons Drive, provides short- and long-term group disability insurance, group life insurance and other benefits to about 1,262 K-12 school districts, said senior executive Bob Stubbe. The districts are primarily in Wisconsin, Minnesota, Nebraska, Iowa, Michigan, Pennsylvania and Indiana.
Horace Mann does business with more districts, mostly in the South and the West, primarily selling property and casualty insurance and individual policies to teachers, Stubbe said.
“This is a great growth opportunity for the combined organization,” he said. “Because there’s not a lot of overlap, both in products and current footprints, we’ll be able to position each other for some cross-selling growth opportunities.”
In 2020, Madison National’s net premiums were approximately $108 million and statutory earnings were approximately $14 million. Under the acquisition, the company will become a wholly owned subsidiary of Horace Mann.
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