OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has maintained the under review with developing implications status for the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Madison National Life Insurance Company, Inc. (Madison National) (Madison, WI).
This Credit Rating (rating) action follows the announcement that Independence Holding Company (IHC) and its wholly owned subsidiary, Independence Capital Corp. (ICC), have agreed to sell all of the stock of Madison National Life Insurance Company (MNL) to Horace Mann Educators Corporation for a purchase price of $172.5 million in cash. Furthermore, under the terms of agreement, it is specified that if IHC reaches certain outlined financial targets in 2023, an additional $12.5 million will be paid to IHC. The transaction, approved by IHC’s board of directors, is expected to close no earlier than Jan. 1, 2022 and is subject to customary closing conditions, including regulatory approvals.
AM Best notes that is the third transaction that IHC has announced over the past three months following the announced sale of Standard Security Life Insurance Company of New York (SSL) in April 2021, and the sale of a 70% controlling interest in its pet division including the stock of Independence American Insurance Company announced in May 2021.
MNL provides disability and group life products and operates in 49 states. MNL had capital and surplus of $86.1 million and premiums of $108.0 million at year-end 2020. The ratings will remain under review while AM Best discusses the details of the acquisition with company management and until the transaction closes.
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