Horace Mann Educators, a provider of insurance and retirement solutions to educators and school employees, has agreed to acquire National Teachers Associates Life Insurance in a deal worth $405m.

Helping hand shakes another in an agreement

Image: National Teachers Associates to be acquired by Horace Mann. Photo: courtesy of Robert Owen-Wahl/Freeimages.com.

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.

Horace Mann president and CEO Marita Zuraitis said: “We are excited to welcome NTA’s employees, agents, policyholders and management to Horace Mann.

“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 president and CEO Wade Rugenstein said: “NTA was built on the belief that great people plus great products equal great opportunities.

“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.


Guggenheim Securities is acting as financial advisor to Horace Mann and Eversheds Sutherland (US) LLP is acting as legal counsel to Horace Mann.

Source: Company Press Release