AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the property/casualty (P/C) and life/health (L/H) members of Horace Mann Educators Corporation (HMEC) (headquartered in Springfield, IL). Additionally, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of HMEC and the associated Long-Term Issue Credit Ratings (Long-Term IRs). The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed list of the subsidiaries and Long-Term IRs.)

The ratings reflect HMEC’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

HMEC’s Long-Term ICR is driven by the group’s very strong balance sheet strength assessment, which is supported by its strongest risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), and utilization of highly rated reinsurers with a strong level of reinsurance catastrophe protection. However, these positive factors are offset partially by restricted fungibility of capital as excess capital rests within the operating entities and a higher allocation to less liquid asset classes, and structured securities, along with lower-rated investment-grade bonds. The group entered into two separate agreements with Medical Mutual of Ohio to acquire Employee Services, LLC and Reserve National Insurance Company (RNIC), and to reinsure MedMutual Life Insurance Company’s group life and disability business. The transaction is modest relative to HMEC’s overall operations, and AM Best does not expect it to affect the organization’s balance sheet strength materially.

HMEC benefits from a well-diversified operating profile within P/C, life and supplemental benefit business segments. Overall results have been positive over the recent five-year period, with the group generating consistently growing earnings in each of the past five quarters. Strong net investment income continues to boost overall earnings. Significant rate and non-rate underwriting actions within the auto and property lines of business have contributed to significant improvements in overall operating results. The agreement to acquire RNIC is expected to be accretive immediately in 2027, strengthening the company’s earnings profile. While the transaction is expected to impact the supplemental block of business materially, the overall impact is not expected to influence the opinion of the group’s operating performance, which remains as adequate.

HMEC maintains a neutral business profile through a strong market position within its niche and name brand recognition within the educator’s market and policyholder loyalty. These advantages provide cross-marketing opportunities between P/C product lines, as well as life, annuity and supplemental products. The group operates in target market competing with a number of national providers of auto, home, and life. The group’s business is expected to receive a diversification benefit with the acquisition of RNIC contributing to the supplemental block of business.

The group operates under a formal ERM framework, which is appropriate for the scope and complexity of the group’s risk profile. Within Horace Mann, ERM is an ongoing assessment process used to identify, manage and/or mitigate risk, which continues to influence the company’s strategy and direction. The group employs an extensive reinsurance program with high-quality reinsurers. Reinsurance is purchased at the operating entity level and tailored to its specific business segment.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed with stable outlooks for the following P/C and L/H subsidiaries of Horace Mann Educators Corporation:

  • Horace Mann Insurance Company

  • Horace Mann Property & Casualty Insurance Company

  • Horace Mann Life Insurance Company

  • Teachers Insurance Company

  • National Teachers Associates Life Insurance Company

  • Madison National Life Insurance Company, Inc.

  • NTA Life Insurance Company of New York

The following Long-Term IRs have been affirmed with stable outlooks:

Horace Mann Educators Corporation—

–“bbb” (Good) on $300 million 7.25 % senior unsecured notes, due 2028

–“bbb” (Good) on $300 million 4.7% senior unsecured notes, due 2030

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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