IHC to sell Madison National Life to Horace Mann
Independence Holding Company reported its agreement to sell Madison National Life Insurance Company to Horace Mann Educators Corporation.
IHC and its wholly owned subsidiary Independence Capital Corp. (ICC) entered into a Stock Purchase Agreement with Horace Mann Educators Corporation to sell all of the issued and outstanding capital stock of Madison National, a Wisconsin insurance company wholly owned by ICC, for an aggregate purchase price of $172.5 million in cash; in addition, if Madison National reaches specified financial targets in 2023, IHC will receive an additional purchase price of up to $12.5 million.
The transaction has been approved by the Board of Directors of IHC, and IHC’s majority stockholders have agreed to approve the transaction. The closing is expected no earlier than January 1, 2022; the transaction is subject to customary closing conditions, including applicable regulatory approvals, one of which is the approval by the Wisconsin Office of the Commissioner of Insurance.
IHC also announced that Robert J. Stubbe has been promoted to President of Madison National until the transaction closes. Quarles & Brady LLP is providing external legal counsel to IHC in connection with the sale transaction.
“We are extremely pleased with the three transactions entered into this year for the sale of Madison National to Horace Mann, Standard Security Life Insurance Company of New York to Reliance Standard Life Insurance Company and our pet business, including Independence American Insurance Company and PetPartners, Inc., to Iguana Capital, Inc. While IHC is awaiting regulatory approval of these transactions, once approved, and the sales close, IHC will hold a very substantial amount of cash and investments; a 30% interest in Iguana Capital, Inc.; and will continue to expand our health insurance agency. Agency operations include captive call centers and independent advisors, both of which market to consumers over and under the age of 65, a Telebrokerage unit which contracts with 1000’s of third-party agents and agencies, our ACA Web Broker, INSXCloud, which enrolls in excess of 300,000 ACA members annually, and a digital marketing and lead generation company which manages multiple digital platforms and assets.” – Roy T. K. Thung, CEO.
