- Aligns with focus on education markets and strengthens value
proposition
- Creates attractive returns for shareholders through immediate
EPS and ROE accretion
- Management to host conference call at 5 p.m. ET today
SPRINGFIELD, Ill.--(BUSINESS WIRE)--
Horace Mann Educators Corporation (NYSE:HMN) today announced it has
signed a definitive agreement to acquire National Teachers Associates
Life Insurance Company. National Teachers Associates (NTA), through its
subsidiaries, is a provider of supplemental insurance products to the
education market with nearly 50 years of experience.
The combined company will have an enhanced product set, additional
points of distribution and expanded scale. The transaction is expected
to deliver immediate EPS and ROE accretion with additional long-term
upside from cross-sell opportunities.
Headquartered in Dallas, family-owned NTA specializes in developing,
marketing and underwriting supplemental insurance products, including
cancer and heart. The company has strong worksite distribution
capabilities with a captive sales force of approximately 220 agents
nationwide. For the 12 months ended September 30, 2018, NTA premiums
were approximately $130 million and total core earnings were
approximately $30 million.
“We are excited to welcome NTA's employees, agents, policyholders and
management to Horace Mann,” said President and CEO Marita Zuraitis.
“This transaction brings together two organizations that share a deep
commitment to the education market, increasing our reach and
distribution by more than 30% with limited geographic overlap. The
addition of NTA will accelerate our progress toward becoming the company
of choice to provide financial solutions to the education market.”
“NTA was built on the belief that great people plus great products equal
great opportunities,” said Wade Rugenstein, President and CEO of NTA.
“Joining forces with Horace Mann, a well-respected company and fellow
leader in the education market, is a natural evolution that will allow
our company and our people to reach their full potential.”
Under the terms of the transaction, Horace Mann will acquire NTA for
$405 million. The transaction has been approved by Horace Mann’s Board
of Directors and is expected to close in the second quarter of 2019,
pending regulatory approvals and other customary closing conditions.
After close, NTA will operate as a separate Horace Mann business segment
under its current leadership team.
In the 12 months after closing, the transaction is expected to be $15-20
million accretive to Horace Mann’s earnings and to improve ROE by 100
basis points. The transaction can be funded with cash from the combined
companies and $250 million of new senior debt issued prior to closing,
although Horace Mann may explore additional financing options that could
optimize its liquidity position or further enhance ROE.
Advisors
Guggenheim Securities is acting as financial advisor to Horace Mann and
Eversheds Sutherland (US) LLP is acting as legal counsel to Horace Mann.
Conference Call
Horace Mann will host a conference call to discuss the transaction at 5
p.m. Eastern time (4 p.m. Central time). The conference call will be
accessible via the internet and by telephone. The dial-in number for the
conference call is 877-269-7756. To listen via webcast, register through
the Events section of investors.horacemann.com.
A replay of the call will be available online at the same location.
About Horace Mann Educators Corporation
Horace Mann is the largest financial services company focused on
providing America's educators and school employees with insurance and
retirement solutions. Founded by Educators for Educators® in
1945, the company is headquartered in Springfield, Ill. For more
information, visit horacemann.com.
About National Teachers Associates Life Insurance Company
Established nearly 50 years ago, NTA is a family owned company
headquartered in Dallas offering supplemental insurance products for
educators and other public sector employees. For more information, visit ntalife.com.
Safe Harbor Statement and Non-GAAP Measures
Statements included in this news release that are not historical in
nature are forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995 and are subject to certain risks and
uncertainties. Horace Mann 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. Please refer to the company's Quarterly Report on Form 10-Q
for the period ended September 30, 2018, 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. Information contained in this press release includes
measures which are based on methodologies other than accounting
principles generally accepted in the United States (GAAP).
Reconciliations of non-GAAP measures to the closest GAAP measures are
contained in the Appendix to the Investor Supplement and additional
descriptions of the non-GAAP measures are contained in the Glossary of
Selected Terms included as an exhibit to the company’s SEC filings.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181210005808/en/
Investor contact:
Heather J. Wietzel
Vice President,
Investor Relations
Horace Mann
217-788-5144
investorrelations@horacemann.com
or
Media
contact:
Michelle Eccles
Public Relations Manager
Horace
Mann
217-788-5394
michelle.eccles@horacemann.com
Source: Horace Mann Educators Corporation