Horace Mann expands employee benefits business with $240 million deal

Horace Mann has agreed to acquire several businesses from Medical Mutual of Ohio for a total net purchase price of approximately $240 million.

Under two separate agreements, Horace Mann will acquire employee assistance provider Employee Services, LLC and all outstanding shares of Reserve National Insurance Company, which operates an individual supplemental insurance platform. Horace Mann will also reinsure Medical Mutual’s group life and disability business, while Medical Mutual retains the underlying legal insurance entity.

Together, the businesses generate nearly $200 million in annual revenue, cover more than one million people across approximately 7,000 employer relationships and distribute through more than 1,000 agents and brokers.

Horace Mann said the transactions will expand its employer offerings and distribution capabilities while adding high-margin insurance operations and recurring fee-based revenue. The deals are expected to immediately increase core earnings per share and return on equity.

The Employee Services acquisition is expected to close in the fourth quarter of 2026. The Reserve National acquisition and reinsurance transaction are expected to close in the first quarter of 2027, subject to customary conditions and regulatory approvals.