AM Best Removes From Under Review With Developing Implications, Affirms Credit Ratings of Madison National Life Insurance Company, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Madison National Life Insurance Company, Inc. (Madison National) (Madison, WI). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Madison National’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.

These rating actions follow the closing of Horace Mann Educators Corporation’s (Horace Mann) acquisition of Madison National. The acquisition was funded with cash and draw-down on the company’s revolving credit facility. The acquisition is accretive to Horace Mann and enhances Horace Mann’s supplemental insurance line to offer group products, including short- and long-term group disability and group life, and expands Horace Mann’s reach into to new distribution channels.

AM Best has analyzed the financial statements of Madison National and has assessed its risk-adjusted capitalization position as being in the strongest category, as measured by Best’s Capital Adequacy Ratio (BCAR). The company’s capital position has benefited from historically profitable operating performance. While it is anticipated that the acquisition will have a positive impact on Madison National’s ratings, further integration will need to take place before these benefits are realized. AM Best will continue to monitor the company and the ongoing integration efforts.

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 © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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Joni Cerbone
Senior Financial Analyst

+1 908 439 2200, ext. 5726

joni.cerbone@ambest.com

Rosemarie Mirabella
Director

+1 908 439 2200, ext. 5892

rosemarie.mirabella@ambest.com

Christopher Sharkey
Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy
Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

Source: AM Best