OLDWICK, N.J.–(BUSINESS WIRE)– AM Best has commented that the Credit Ratings (ratings) of Horace Mann Educators Corporation (headquartered in Springfield, IL) and its subsidiaries remain unchanged following the announcement of its transaction with Medical Mutual of Ohio to acquire Employee Services, LLC (ESI) and Reserve National Insurance Company (RNIC). Additionally, Horace Mann will reinsure MedMutual Life Insurance Company’s group life and disability business, while Medical Mutual of Ohio retains the legal insurance entity.
These transactions are expected to broaden Horace Mann’s individual supplemental and group benefits business and provide additional diversification to the organization’s business profile. The total net purchase price is approximately $240 million and is expected to be funded through a combination of excess capital and borrowings under Horace Mann’s existing revolving credit facility. The transactions are modest relative to Horace Mann’s overall operations, and AM Best does not expect them to materially affect the organization’s balance sheet strength or operating performance over the near to intermediate terms. The ESI transaction is expected to close in fourth-quarter 2026. The RNIC acquisition and the MedMutual Life Insurance Company group life and disability business transactions are expected to close in first-quarter 2027.
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.
HONG KONG–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Hanwha General Insurance Company Limited (HGI) (South Korea). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect HGI’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the support that the company receives from its parent, Hanwha Life Insurance Co., Ltd. (Hanwha Life).
HGI’s risk-adjusted capitalisation is assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), including credit for hybrid securities. HGI’s capital and surplus decreased moderately at year-end 2025, mainly due to the movement of accumulated other comprehensive income following the interest rate movement and discount rate cut under the regulatory guideline during that year. As part of its solvency management efforts amid a fast evolving economic and regulatory environment, HGI has taken various initiatives, such as issuance of subordinated bonds, asset-liability management and utilization of reinsurance. HGI has good financial flexibility as evidenced by its issuance of supplementary capital securities. While its adjusted debt leverage, including equity credit for hybrid securities, increased to 22.9% following the recent issuance of subordinated bonds in 2025, it has been maintained at a positive level with an adequate coverage ratio.
HGI’s operating performance assessment remains at an adequate level with a consolidated return-on-equity of 10.3% and a combined ratio (net/net, IFRS 17 basis) of 96.2% in 2025, as calculated by AM Best. Although the company’s long-term insurance recorded double-digit growth in insurance service revenue in 2025, the profitability of this line declined like other major players mainly driven by increased claims in medical indemnity policies and market competition. The company’s stable investment income has continued to support its bottom line.
HGI is the sixth-largest non-life insurance company in South Korea, with a market share of approximately 7% in terms of gross insurance service revenue in 2025, along with diversified product offerings with relatively higher portion in long-term insurance than its domestic peers. The company’s diversified distribution network includes affiliated general agent partners, such as Hanwha Life Financial Services, a sales-specialised subsidiary of Hanwha Life. The ratings lift considers HGI’s importance to Hanwha Life in terms of strategy and earnings contribution, as well as various forms of explicit and implicit support it receives from Hanwha Life, including capital support, co-branding to increase operational synergy and distribution.
Negative rating actions could occur if there is a significant deterioration in HGI’s balance sheet strength fundamentals. Negative rating actions could also occur if there is a sustained and material deterioration in the company’s operating performance. Positive rating actions could occur if the balance sheet strength fundamentals of both HGI and Hanwha Life demonstrate sustained improvement.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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 specialising 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.
The following information was released by the office of the Iowa Attorney General:
Today, Attorney General Brenna Bird announced she is leading a coalition of 13 states to defend pension plans regulated by Iowa’s Insurance Commissioner.
It is common for employers to transfer employee pensions to state-regulated insurance companies. Here, Bristol Myers Squibb (BMS), a pharmaceutical company, moved their employee pension plan to Athene, an Iowa company under the regulation of the state of Iowa. Some employees of BMS suedclaiming, with no evidence, that federal government oversight is necessary to protect their interests. Their arguments threaten to disrupt exceptionally reliable state insurance regulation.
Attorney General Bird is leading a 13-state amicus brief to defend state-regulated pensions, which secure retirees’ benefits while safeguarding pension funds. Over the past three decades, not a single retiree has lost any benefits under this type of pension regulation overseen by state insurance regulators, as highlighted in the 2023 Advisory Council report to the U.S. Department of Labor.
“States, including Iowa, have an impeccable history of protecting pensions for retirees,” said Attorney General Bird. “There is no reason to force more federal regulation of pensions unless the goal is to undermine the states’ authority and ability to continue to effectively protect their retirees. I’m asking the court to keep regulatory power where it belongswith the states.”
“Life insurers have spent generations mastering the long-term management of annuities and life policiesskills that align perfectly with pension plan management,” said Craig Robinson, spokesperson for the Iowa Insurance Division. “State regulators, including the Iowa Department of Insurance and Financial Services, provide deep expertise to overseeing these transactions. Backed by strong oversight, pension risk transfers can deliver meaningful benefits to both the plans and the retirees who rely on them.”
The Iowa-led brief was joined by Alabama, Alaska, Arkansas, Idaho, Indiana, Kansas, Louisiana, Montana, Nebraska, Oklahoma, Tennessee, and Texas.
Globe Life reported higher second-quarter earnings Wednesday, driven by continued underwriting strength, growing Medicare supplement premiums and investment income.
Co-CEOs Frank Svoboda and J. Matthew Darden teased the expanded use of artificial intelligence to improve efficiency across the company and drive even more long-term growth.
“We believe Globe Life is positively positioned to benefit from AI due to the high-volume nature of our business, including the number of applications received and policies issued, calls received by our customer service representatives, and the number of plans reviewed and paid,” Svoboda said.
Executives returned several times to the potential of AI to scale up Globe Life business.
Administrative expenses increased 6% during the quarter but remained 7% of premium revenue. Over time, executives expect broader deployment of AI applications to reduce that ratio by automating high-volume processes across the organization.
The company said AI is expected to improve customer service operations, underwriting, claims processing and sales support while helping agents operate more efficiently.
Executives also said AI-driven improvements should extend beyond expense reductions by helping increase sales productivity and streamline underwriting operations.
Premium growth led by health insurance
Total premium revenue increased during the quarter, led by continued strength in Globe Life’s health insurance business. Health premium revenue rose 16% to $437 million, fueled by Medicare supplement premium increases and strong sales at United American and Family Heritage.
The company expects health premium revenue to grow between 14% and 16% for the full year.
Health revenues benefited from “tailwinds from the high volume of people turning 65, movement of Medicare beneficiaries from Medicare Advantage to Medicare Supplement, and the rate increases implemented during the second quarter,” Darden explained.
Life insurance premium revenue increased 3% to $861 million, while life underwriting margin rose 6% to $359 million. Globe Life expects life premium growth of 2.5% to 3% for the year.
Executives also forecast a life underwriting margin exceeding 50% during the third quarter because of annual actuarial assumption updates before returning to more typical levels in the fourth quarter.
Distribution results mixed
Performance varied across Globe Life’s distribution channels, Darden reported.
American Income Life reported a 5% increase in life premiums, although life sales slipped 2% as agent counts declined from a year earlier. Recruiting and compensation changes implemented earlier this year are beginning to reverse that trend, Darden said, with producing agent counts increasing sequentially during the second quarter.
Liberty National posted 6% growth in life sales and an 8% increase in producing agents. Net health sales were $7 million, down 15% from the year ago quarter, “as more emphasis has been placed on life business in recent periods,” Darden said.
Family Heritage increased health sales by 4% and expanded its agent force by 7%. Health premiums increased 9% from the year-ago quarter to $120 million and the health underwriting margin increased 10%.
United American remained one of the company’s strongest growth drivers. Health premiums increased 29% to $211 million, while health sales climbed 10%.
The company’s direct-to-consumer business faced headwinds as consumers increasingly rely on AI-powered search tools rather than traditional internet search, Darden said.
Executives said growing use of AI assistants has reduced paid search traffic that historically generated life insurance leads. As a result, the insurer is adapting its digital marketing strategy to make its online content more visible and accessible to AI-driven search platforms.
“This shift is similar in many ways to the initial move to digital marketing away from direct mail many years ago when consumers began to utilize the internet,” Darden said. “I’m confident that DTC will successfully transition as we continue to meet the consumer where they want to be met.”
Despite weaker direct-to-consumer sales, Globe Life said it still expects the division to generate more than a million leads this year for its agency operations.
Quarterly Highlights
Double-digit operating earnings per share growth in eight of the past nine quarters.
Book value, excluding accumulated other comprehensive income, increased 11% from a year earlier to $100.04 per share, while return on equity stood at 14.3%.
Net investment income increased 4% to $294 million as invested assets continued to grow.
Although rising interest rates have produced $1.4 billion in unrealized investment losses, executives said those losses are primarily interest rate-driven and do not reflect credit deterioration.
By The Numbers
Total Revenue: $1.6 billion ($1.48 billion in Q2 2025)
Net Income: $287.7 million ($252.7 million in Q2 2025)
Earnings Per Share: $3.65 per diluted share ($3.05 in Q2 2025)
Share Repurchases: $175 million in Q2 2026
Dividend Declared: $0.33 per share in Q2 2026
Stock Price Movement: Shares declined more than 7% by the end of the day to $170.50
SINGAPORE–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating of B++ (Good), the Long-Term Issuer Credit Rating of “bbb+” (Good) and the Vietnam National Scale Rating of aaa.VN (Exceptional) of Bao Viet Insurance Corporation (BVGI) (Vietnam). The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect BVGI’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. The ratings also factor in rating enhancement from BVGI’s parent, Bao Viet Holdings (BVH), a major finance and insurance group in Vietnam.
AM Best assesses BVGI’s balance sheet strength as very strong, underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is expected to remain at the strongest level over the medium term. In addition, AM Best views the company as having good financial flexibility, as demonstrated by historical capital injections from BVH. In addition, BVGI has a moderate-risk investment portfolio, with the majority of its investments allocated to cash, term deposits, bonds and the remainder held in equity investments and real estate. The company has a moderate reinsurance reliance to support its underwriting capacity and manage its catastrophe exposure. Exposure to credit risk is mitigated partially by the high credit quality of its reinsurance panel.
AM Best assesses BVGI’s operating performance as adequate, with a five-year weighted average return-on-equity ratio of 10% (fiscal-years 2021-2025). The company’s underwriting performance remained marginally profitable in 2025. In addition, its stable investment income, which is comprised mainly of interest and dividend incomes, is supportive of overall profitability. Prospective earnings are expected to be supported by the prudent underwriting strategy and pricing discipline.
BVGI is the second-largest non-life insurer in Vietnam, with a market share of 13% based on direct premiums written in 2025. The company holds market leading positions in several personal lines, including motor insurance, health and personal accident insurance. BVGI’s underwriting portfolio shows moderate diversification by line of business. In addition, the company distributes its products mainly through agencies and brokers.
BVGI’s ratings incorporate rating enhancement from its ownership and integration with BVH. The company benefits from group-wide corporate governance, as well as access to shared resources and services across various business functions. Although BVGI’s operations account for a small portion of the group’s consolidated revenue, the company is considered strategically important to the group.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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 specialising 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.
OLDWICK, N.J.–(BUSINESS WIRE)– AM Best has affirmed the Financial Strength Rating of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aaa” (Exceptional) of New York Life Insurance Company, New York Life Insurance and Annuity Corporation (NYLIAC), Life Insurance Company of North America (LINA), New York Life Group Insurance Company of NY (NYLGICNY) and NYLIFE Insurance Company of Arizona. All companies are referred to as New York Life and are headquartered in New York, NY. AM Best also has affirmed the Long-Term ICRs of “aaa” (Exceptional) of New York Life Global Funding and New York Life Funding. Lastly, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IRs) of the funding agreement-backed securities programs, the outstanding notes issued therein and the Long-Term IRs on the existing surplus notes of New York Life Insurance Company. The outlook of these Credit Ratings (ratings) is stable. (See below for a detailed listing of the Long- and Short-Term IRs)
The ratings reflect New York Life’s balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management.
The rating affirmations reflect New York Life’s ability to continue to generate record earnings, prudent expense management and financial flexibility. In addition, New York Life has maintained its competitive market positioning through business growth and the payment of policyowner dividends. The balance sheet strength assessment is further supported by the company’s well-diversified investment portfolio, low credit losses and its available liquidity. Additionally, the balance sheet strength is also supported by New York Life’s capital adequacy remaining at a strong level, as measured by a statutory surplus plus asset valuation reserve and Best’s Capital Adequacy Ratio (BCAR), supporting the company’s ongoing strategic initiatives and risk-adjusted capitalization relative to peers.
The group’s very strong operating performance is derived from a well-diversified business providing multiple sources of revenue, including earnings momentum from its asset management business. This performance has continued to improve, supported by a near-doubling of pre-tax net operating gains, a surge in consolidated net income, and the strength of its agency sales force. An expanding and diverse profitable book of retail annuity sales, foundational whole life insurance, and group benefits provide support for New York Life’s very favorable business profile.
New York Life’s financial leverage remains solid at 13.3%, as calculated by AM Best, with a capitalization profile consisting of long-term surplus notes and balanced operational leverage. Interest coverage remains strong under AM Best’s criteria, supported by consistent earnings growth that ensures the group can easily service its fixed debt obligations.
The following Long-Term IRs has been affirmed with stable outlooks:
New York Life Global Funding — “aaa” (Exceptional) program rating
– “aaa” (Exceptional) on all outstanding notes issued under the program
New York Life Funding — “aaa” (Exceptional) program rating
New York Life Insurance Company—
– “aa” (Superior) on $1 billion 5.875% surplus notes, due May 2033
– “aa” (Superior) on $1 billion 6.75% surplus notes, due November 2039
– “aa” (Superior) on $1.25 billion 3.75% surplus notes, due May 2050
– “aa” (Superior) on $1 billion 4.45% surplus notes, due May 2069
The following Short-Term IR has been affirmed:
New York Life Capital Corporation —
– AMB-1+ (Strongest) on the commercial paper program
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.
The use of agentic AI in the insurance industry has positively impacted sales by empowering consumers and helping less experienced agents overcome barriers, according to an industry expert.
“The best thing AI is bringing to consumers purchasing life insurance and annuity contracts right now is access to all the information in one place,” Sky Opila, head of business development and growth, Zinnia Tech Solutions.
Opila, who previously managed the Policygenius business and ran a direct-to-consumer channel at Allstate, said not only does this help change the way consumers purchase insurance, but it also supports agents with the sales process.
He said AI makes it easier for “power users” to get even better, while also helping the “low-producing population” who may sell life insurance and annuities more infrequently to “really come to the table and start engaging in these products.” For example, those who may have “never done an annuity application” can “do it in minutes with simple technology.”
“Those things that were barriers to entry are now wiped out because we can give them all the tooling and education within AI tools that put everything at their fingertips,” Opila said.
Information at a click
Opila said consumers historically had to put a lot of effort into researching policies, describing it as “essentially a hunt-and-peck to finding information.”
Although he acknowledged that groups such as LIMRA, Life Happens and the Insured Retirement Institute published “generic information” for consumers, most information was published by individual carriers or distributors, and consumers had to “hunt” for it.
“With AI, now I can simply query and I get a litany of information at my fingertips and direct answers to all my questions. It has massively simplified the ability to research and understand life insurance and annuity products,” Opila said.
He suggested that the ability to use AI to research complex topics more easily is changing the way consumers shop for insurance. That’s because previous Zinnia research found “one of the reasons consumers were hesitant to talk to an agent about life insurance and annuity contracts is they didn’t feel well enough informed about the products to get into a conversation.”
“They were ultimately afraid that when the sales tactics came in, they wouldn’t know how to respond because they weren’t well enough educated,” Opila explained.
He said the industry is now moving towards using AI tools to empower consumers to make decisions about their financial future while giving them the confidence to talk to an advisor without feeling worried or fearful.
AI-powered sales tools
On the other side of the equation, Opila said agents are leveraging agentic AI to help streamline the sales process. He said some agents have already begun using AI to help consumers in their education journey.
“We’re starting to see more folks use AI education tools, AI querying tools, to help consumers in the process. Right now, it seems to be focused mostly on how to educate people on their policies and why they should purchase life insurance or annuity contracts,” he said.
Aside from the empowerment aspect, he said one of the biggest barriers to agents selling more life insurance and annuity products is the advisor experience — and this is something agentic AI can help to address.
He said in today’s world, advisors still operate across seven to eight different systems to place a single life insurance or annuity contract. Even further, to manage that book of business, the enforced policy is “a completely different black box.”
“What we need to empower is the ability for the entire buying experience to be a simplified digital journey, so that it can sit right alongside those other financial products,” Opila said.
“We will only see material change in the industry once we make buying, selling and servicing life insurance and annuity contracts as simple as signing up for a checking account or another basic financial product.”
Industry partnership will drive change
Simplifying the insurance sales process is a core focus for Zinnia, Opila said. In his words, this is “the opportunity that’s really going to change the game for our industry; AI only helps us get there faster.”
“We’re really focused on simplifying that experience, so that now instead of life insurance and annuities being separate from all your other financial products, they’re easy and they’re embedded inside of your banking app, inside of your IRA management platform, inside of where you’re managing the rest of your money,” he said.
He stated that a partnership among carriers, regulators, distributors, and technology vendors is essential for the success of the AI initiative.
“I’ve seen the shift in consumer willingness to go online for information; it’s super high right now. But I want to see us, as an industry, come together to bring those parties to the table to really make a meaningful change in how we operate,” Opila said. “AI is the perfect catalyst for that.”
San Antonio, TX — July 22, 2026 — USAA Life Insurance Company is expanding its life insurance portfolio to serve families across generations with the launch of USAA Secure Start Whole Life. This new insurance product for children is designed to do more than provide financial protection in the unexpected – it makes it easier for parents and grandparents to build lasting coverage that grows with a child over time.
The USAA Educational Foundation reports that military life is shaped by frequent transitions that require proactive financial planning. By securing coverage early, Secure Start helps families lock in guaranteed insurability and create a financial foundation that can support children throughout their lives.
“Military families face unique financial demands, and many are balancing today’s needs with tomorrow’s goals,” said Rob Arena, President of USAA Life Insurance Company. “Secure Start is designed to meet families where they are—making it simple to begin building protection and financial resilience for the next generation early, so children can carry that foundation with them for life.”
Building a Foundation for the Future
Secure Start provides coverage for children from 15 days to 17 years old, with protection options ranging from $25,000 to $100,000. Designed to grow alongside them, it helps ensure their financial foundation evolves as their life does. Key features of the product include:
·Guaranteed Future Insurability: Ability to increase coverage up to six times after major life events without a medical exam.
·Lifelong Financial Value: As a permanent life insurance solution, Secure Start builds cash value over time, which can be helpful in the future.
·Flexible Premium Options: Choose level premiums for life or complete payments in 20 years, giving your child or grandchild lifelong coverage with no future premiums required.
·Fast, Simple Application: Answering a few simple health questions makes it easier to secure permanent protection – without unnecessary delays.
“Our goal is to get families talking – no matter where they are in life,” said Arena. “USAA is here to help them understand their needs and take steps toward a stronger financial future.”
USAA recognizes that financial protection is not one-size-fits-all, and its recent product expansion reflects a focused commitment to serving a broader range of member needs. Secure Whole Life provides dependable, lifelong coverage with stable premiums and cash value growth, while Secure Final Expense – introduced last month – offers a simple, accessible way to help cover end-of-life costs and ease the financial burden on loved ones.
Together, these offerings demonstrate USAA’s ongoing effort to meet families where they are, whether they’re just beginning to plan or looking to strengthen existing coverage, and help them take meaningful steps toward lifelong financial preparedness.
To explore USAA Life Insurance Company’s full range of offerings designed to support members at every stage of life, visit usaa.com/life.
HONG KONG–(BUSINESS WIRE)– AM Best has maintained its stable outlook on South Korea’s non-life insurance segment, supported by enhanced regulatory frameworks and solid investment performance.
According to the Best’s Market Segment Report, “Market Segment Outlook: South Korea Non-Life Insurance,” the country’s regulatory environment supports the stable outlook as regulatory changes are strengthening capital quality, solvency resilience and consistency in IFRS 17 reporting. The introduction of the core capital K-ICS ratio, which is effective January 2027, is expected to induce insurers to focus on improving fundamental capital with higher loss absorption features and prevent overreliance on supplementary capital securities.
South Korea’s non-life industry experienced a decline in its underwriting results in 2025, reflecting higher loss ratios in long-term and auto lines. Auto insurance profitability also deteriorated due to the cumulative effect of premium rate cuts from prior years and ongoing claims-cost inflation. Although a recent premium increase should provide support, the benefit will be recognised gradually through the earned premium base rather than immediately. The long-term insurance line of business is still experiencing claims pressure following the end of the medical strike in 2024, while persistent competition also has weighed on profitability.
“Because of the intense competition, some market leaders with stronger balance sheet capacity and solvency positions are looking beyond the domestic market for new growth opportunities. These efforts could support earnings diversification and long-term growth, although they necessarily entail a level of execution risk and short-term capital volatility,” said Seokjae Lee, senior financial analyst, AM Best.
Chanyoung Lee, director, analytics, AM Best, added: “Although underwriting performance in South Korea’s non-life insurance segment weakened in 2025, investment income improved materially, supported by higher interest income, and in some cases, gains from asset disposals and valuation gains. AM Best expects investment performance to remain a stable source of profits over the next 12 months, partly mitigating the pressured underwriting profits.”
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.
Enhancing employer solutions, expanding distribution capabilities, and broadening customer reach
SPRINGFIELD, Ill. & CLEVELAND–(BUSINESS WIRE)–
Horace Mann Educators Corporation (NYSE: HMN) and Medical Mutual of Ohio today announced they have entered into two separate agreements under which Horace Mann will acquire the employee assistance provider Employee Services, LLC (ESI) through the acquisition of ESI membership interests, and separately, will acquire an individual supplemental platform through the acquisition of all outstanding capital stock of Reserve National Insurance Company (RNIC) and reinsure MedMutual Life Insurance Company’s group life and disability business while Medical Mutual of Ohio will retain the legal insurance entity.
Together, these established businesses bring deep expertise, strong customer relationships and complementary capabilities to Horace Mann. These transactions add nearly $200 million in annual revenue, serve more than one million covered lives across approximately 7,000 employer relationships, and add over 1,000 agents and brokers, significantly expanding Horace Mann’s customer reach and distribution capabilities.
The transactions are expected to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity by strengthening the company’s earnings profile through a combination of high-margin insurance businesses, recurring fee-based revenue and enhanced capital efficiency.
“Our strategy has always been centered on creating stronger customer relationships by providing meaningful solutions that meet our customer needs,” said Marita Zuraitis, President and Chief Executive Officer of Horace Mann. “These businesses build on our long-term strategy by enhancing our employer value proposition, broadening our distribution capabilities and expanding customer relationships. They create more opportunities to serve educators and employers with a broader portfolio of solutions while extending our reach through complementary customer and distribution relationships.”
“These transactions also reflect the disciplined approach we’ve consistently taken to capital allocation. We invest where we see the strongest opportunities to create long-term profitable growth while delivering attractive returns for shareholders. The differentiated capabilities, high-quality earnings, and exceptional people joining Horace Mann make these businesses both a natural strategic fit and an attractive financial investment.”
“This decision reflects our ongoing focus to align our portfolio with our long-term strategy,” said Tony Helton, President and Chief Executive Officer of Medical Mutual. “We will continue to focus our investment and leadership attention on our core businesses and deliver the highest value for our customers and the communities we serve. We are pleased to work with Horace Mann on an outcome that advances the objectives of both organizations and supports a smooth transition for customers, partners and team members while ensuring these businesses continue to thrive.”
Customers and business partners should not experience any disruption to service or ongoing support as a result of these transactions. Medical Mutual and Horace Mann are committed to ensuring a seamless transition and maintaining the high level of service stakeholders expect.
These transactions have a total net purchase price of approximately $240 million and will be financed through a combination of excess capital and borrowings under Horace Mann’s existing revolving credit facility.
The ESI transaction is expected to close in the fourth quarter of 2026. The RNIC acquisition and the MedMutual Life Insurance Company group life and disability reinsurance transaction are expected to close in the first quarter of 2027. Each transaction remains subject to customary closing conditions. The acquisition of RNIC and the reinsurance business of MedMutual Life Insurance Company is also subject to regulatory approvals.
Advisors
Raymond James & Associates is acting as financial advisor to Horace Mann and Eversheds Sutherland (US) LLP is acting as legal counsel to Horace Mann. Squire Patton Boggs is acting as legal counsel for Medical Mutual of Ohio and Sherman & Company is acting as financial advisor.
Investor Conference Call/Webcast
Horace Mann will host a conference call to discuss the transactions on Wednesday, July 22, 2026 at 8:30 a.m. Eastern Time. The conference call will be webcast live at investors.horacemann.com and available later in the day for replay.
About Horace Mann
Horace Mann Educators Corporation (NYSE:HMN) is the largest multiline financial services company focused on helping America’s educators and others who serve the community achieve lifelong financial success. The company offers individual and group insurance and financial solutions tailored to the needs of the educator community. Founded by Educators for Educators® in 1945, the company is headquartered in Springfield, Illinois. For more information, visit www.horacemann.com.
About Medical Mutual of Ohio
Founded in 1934, Medical Mutual is the oldest and one of the largest health insurance companies based in Ohio. The company provides peace of mind to more than 1.1 million Ohioans through high-quality health, dental and vision products. Medical Mutual offers fully insured and self-funded group coverage, including stop loss, as well as Medicare Advantage, Medicare Supplement and Individual plans. As a mutual company, Medical Mutual is owned by its members, not stockholders. The company focuses on products and services that help customers and communities live healthier through all stages of life. For more information, visit the MedMutual.com.
Safe Harbor Statement
Statements included in this news release that are not historical in nature are forward-looking within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Horace Mann and its subsidiaries. Horace Mann cautions investors that such statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond Horace Mann’s control, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements included in this document. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in the “Risk Factors” and “Forward-Looking Information” sections included in Horace Mann’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC). Horace Mann does not undertake to update any particular forward-looking statement included in this document if we later become aware that such statement is not likely to be achieved.
No Offer or Solicitation
This communication is for informational purposes only and is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the acquisition, the merger or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except in accordance with the Securities Act of 1933, as amended, and other applicable law.
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