Horace Mann Educators Corp. has agreed to buy Madison National Life Insurance Company Inc. from Independence Holding Co., IHC said Wednesday.
Horace Mann would pay $172.5 million in cash for Madison National up front, and it could pay up to $12.5 million more if Madison National does well in 2023, IHC said.
IHC is a Stamford, Connecticut-based company has been an issuer of specialty life and health products but has been shifting toward wholesaling and selling health insurance products in recent years.
Horace Mann is a Springfield, Illinois-based company that sells both life and health products and property and casualty products to teachers.
Madison National is a Wisconsin-regulated insurer that sells life insurance benefit products, group disability and other benefit products to school districts.
IHC and Horace Mann expect to close on the Madison National deal after Jan. 1, 2022.
The deal is subject to approval by the Wisconsin Office of the Commissioner of Insurance.
IHC also announced that Robert Stubbe has been promoted to president of Madison National until the deal closes.
