Horace Mann to Acquire ESI, RNIC, MedMutual Business for $240M
Horace Mann Educators Corporation announced it will acquire Employee Services LLC (ESI) for approximately $115 million. Additionally, through separate agreements with Medical Mutual of Ohio, Horace Mann will acquire Reserve National Insurance Company (RNIC) and reinsure MedMutual Life Insurance Company’s group life and disability business. The total net purchase price for these transactions is approximately $240 million, funded by cash on hand and existing credit facilities. These acquisitions are expected to add nearly $200 million in annual revenue, serve over one million covered lives, and are anticipated to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity. The ESI acquisition is expected to close in Q4 2026, with the RNIC and MedMutual transactions closing in Q1 2027.
Key Highlights
- Horace Mann to acquire Employee Services LLC (ESI) for approximately $115 million.
- Also acquiring Reserve National Insurance Company (RNIC) and reinsuring MedMutual Life Insurance Company's group life and disability business.
- Total net purchase price for all transactions is approximately $240 million.
- Transactions expected to add nearly $200 million in annual revenue.
- Expected to serve over 1 million covered lives and 7,000 employer relationships.
- Anticipated to be immediately accretive to core EPS and shareholder return on equity.
- ESI acquisition expected to close in Q4 2026.
- RNIC and MedMutual reinsurance transactions expected to close in Q1 2027.
Price Impact
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