Horace Mann Educators Corporation · NYSE:HMN
Horace Mann Educators — Merger or Acquisition (July 2021)
15 slides from Horace Mann Educators's merger presentation, Jul 14, 2021
Slide 1: Acquisition of Madison National
Acquisition of Madison National Further strengthening Horace Mann’s presence in education market July 14, 2021
Slide 2: Safe Harbor Statement and Non-GAAP Measures
Safe Harbor Statement and Non-GAAP Measures Certain statements made in this presentation should be considered forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements are related t
Slide 3: Transaction Summary
Transaction Summary • Acquire Madison National Life Insurance Co. from IHC (NYSE:IHC) • Suite of employer benefit products; predominantly short- and long-term group disability and group term life • Multiple distribution relationships and capabilities • Expected to be accretive to Horace Mann in firs
Slide 4: Madison National snapshot
Madison National snapshot K-12 school districts represent 80% of 2020 premiums 2020 Key Statistics (stat) • Founded in 1961, based in Madison, Wisconsin Net premiums $108.0M Loss ratio 50.1% • Strategic fit based on a focus on school districts and other municipal employers Pre-tax income $18.9M - Se
Slide 5: Growth journey continues with accretive transaction, bringing further transformation
Growth journey continues with accretive transaction, bringing further transformation
Slide 6: Madison National acquisition accelerates progress on long-term strategic plan
Madison National acquisition accelerates progress on long-term strategic plan Financial Niche Multiline Longevity strength market model • Founded by Educators • $13.7B in assets(1) • Educators have preferred risk profile • Business mix balanced HORACE MANN for Educators® in 1945 • $1.4B in premium a
Slide 7: Employer-sponsored products strengthens educator solutions orientation
Employer-sponsored products strengthens educator solutions orientation The right solutions help educators meet Retirement their need for financial security at every Preparing to life stage retire Established educator New Issues: • How to manage educator Issues: retirement income • Worried about Issu
Slide 8: Accretive use of capital to buy Madison National strengthens PDI focus through employer channel
Accretive use of capital to buy Madison National strengthens PDI focus through employer channel Accelerates shareholder Enhances PDI value creation Products • Adds new suite of employer-sponsored benefit products, including Immediately accretive short- and long-term group disability and group life t
Slide 9: Enhancing distribution to maximize value of solutions for educators
Enhancing distribution to maximize value of solutions for educators Established Horace Mann: Individual insurance and financial services Educators choose solutions, working with exclusive agents or via educator-facing website and other service options Educators · Homogenous customer set with attract
Slide 10: Growth journey continues with accretive transaction, bringing further transformation
Growth journey continues with accretive transaction, bringing further transformation 2014-2018: 2019-2021: 2022-2025: Fix and Build Transformation Leverage Leadership Our performance: Our plan: Our path: Established solutions orientation; Smart integration of key Accelerated shareholder value filled
Slide 11: Accelerating shareholder value creation by increasing educator market share
Accelerating shareholder value creation by increasing educator market share Strategic progress toward long-term double-digit ROE objective will continue in 2021, even though the effect of changes in policyholder behavior due to pandemic expected to gradually return to more “normal” levels 2021 consi
Slide 12: Horace Mann and Madison National Financial details
Horace Mann and Madison National Financial details
Slide 13: Madison National background
Madison National background Statutory Revenue 2020 Premium Mix by Product ($ in millions) $128.5 $111.9 $117.3 $16.1 $11.6 $4.4 $46.2 Long-term $12.7 $5.3 43% $5.3 disability Group term life $millions $14.1 Short-term $100.4 $108.0 13% disability $93.9 Dental/Vision $25.2 Other $6.3 23% $16.1 6% 15%
Slide 14: Adding Madison National further diversifies business mix
Adding Madison National further diversifies business mix Product lines unaffected by weather or market volatility; attractive return profile 2020 Statutory Premiums Written and Contract Deposits Pro Forma 2020 Statutory Premiums Written and Contract Deposits $1.4 billion $1.5 billion Madison Nationa
Slide 15: Contact
Contact Heather J. Wietzel Vice President, Investor Relations 217-441-1326 or 217-788-5144 investors.horacemann.com
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