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PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of Madison National Life Insurance Company, Inc.

July 14, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Jul 14, 2021--

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.

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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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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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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 © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210714005885/en/

CONTACT: Antonietta Iachetta

Senior Financial Analyst

+1 908 439 2200, ext. 5792

antonietta.iachetta@ambest.com

Joseph Zazzera, MBA

Director

+1 908 439 2200, ext. 5797

joseph.zazzera@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

KEYWORD: EUROPE UNITED STATES NORTH AMERICA WISCONSIN NEW JERSEY

INDUSTRY KEYWORD: BANKING PROFESSIONAL SERVICES INSURANCE FINANCE

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 07/14/2021 04:11 PM/DISC: 07/14/2021 04:11 PM

http://www.businesswire.com/news/home/20210714005885/en