HORACE MANN EDUCATORS CORPORATION (NYSE:HMN) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01:
HORACE MANN EDUCATORS CORPORATION (NYSE:HMN) Files An 8-K Entry into a Material Definitive Agreement
Effective June 21, 2019, Horace Mann Educators Corporation (Company), as borrower, replaced its current line of credit with a new five-year Credit Agreement. The new agreement increases the amount available on the senior revolving credit facility to $225 million from $150 million. PNC Capital Markets, LLC and JPMorgan Chase Bank, N.A. serve as joint leads on the new agreement, with The Northern Trust Company, U.S. Bank National Association, KeyBank National Association, Comerica Bank and Illinois National Bank participating in the syndicate. Terms and conditions of the new agreement are substantially consistent with the prior agreement, with an interest rate based on LIBOR plus 115 basis points. The Company expects to utilize the agreement to fund the acquisition of National Teachers Association Life Insurance Company, ongoing working capital, capital expenditures and general corporate expenditures.
Effective June 21, 2019, Horace Mann Educators Corporation (Company), as borrower, terminated its previous credit agreement dated June 27, 2018 with JPMorgan Chase Bank, N.A. and certain other financial institutions.
The information set forth in Item 1.01 above is incorporated herein by reference.
Horace Mann Educators Corporation (Company) issued a press release announcing that one of its subsidiaries, Horace Mann Life Insurance Company (HMLIC) had entered into a Reinsurance Agreement on June 24, 2019, with RGA Reinsurance Company, a subsidiary of Reinsurance Group of America, Incorporated (RGA) for the reinsurance to RGA of a $2.9 billion block of HMLIC’s in-force fixed and variable annuity business. A copy of the press release is filed as Exhibit 99.2 to this report.
The reinsurance is effective April 1, 2019. The ceded block has approximately $2.2 billion of fixed annuity reserves reinsured on a coinsurance basis for consideration of approximately $2.3 billion. The Reinsurance Agreement will be recorded in accordance with applicable deposit accounting standards. As a result of the Reinsurance Agreement, the Company will recognize an after tax net investment gain of $107 million. The separate account assets and liabilities of approximately $0.7 billion will be reinsured on a modified coinsurance basis and thus, will remain on the Company’s consolidated financial statements, but the related results of operations will be fully reinsured by RGA. Under the Reinsurance Agreement, HMLIC will retain its extra-contractual liabilities with respect to the ceded block.
The Reinsurance Agreement does not change or affect HMLIC\’s current exclusive right to continue providing its deferred fixed and variable annuity products through its agency force.
Exhibit 99.1 Glossary of Selected Terms.
Exhibit 99.2 Horace Mann Educators Corporation news release dated June 24, 2019.
Forward-looking Information
Statements included in the accompanying press release that state Horace Mann Educators Corporation\’s (Company) or its management\’s intentions, hopes, beliefs, expectations or predictions of future events or the Company\’s future financial performance are forward-looking statements and involve known and unknown risks, uncertainties and other factors. The Company is not under any obligation to (and expressly disclaims any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. It is important to note that the Company\’s actual results could differ materially from those projected in such forward-looking statements. Please refer to the Company\’s Quarterly Report on Form 10-Q for the period ended March 31, 2019 and the Company\’s past and future filings and reports filed with the Securities and Exchange Commission for information concerning the important factors that could cause actual results to differ materially from those in forward-looking statements.
HORACE MANN EDUCATORS CORP /DE/ Exhibit
EX-10.1 2 exhibit101creditagreeb8b.htm EXHIBIT 10.1 exhibit101creditagreeb8b EXHIBIT 10.1 EXECUTION VERSION CREDIT AGREEMENT dated as of June 21,…
To view the full exhibit click
EX-10.1 2 exhibit101creditagreeb8b.htm EXHIBIT 10.1 exhibit101creditagreeb8b EXHIBIT 10.1 EXECUTION VERSION CREDIT AGREEMENT dated as of June 21,…
To view the full exhibit click
here
About HORACE MANN EDUCATORS CORPORATION (NYSE:HMN)
Horace Mann Educators Corporation (HMEC) is an insurance holding company. Through its subsidiaries, HMEC markets and underwrites personal lines of property and casualty (primarily personal lines automobile and homeowners) insurance, retirement annuities (primarily tax-qualified products) and life insurance in the United States. The Company’s operating segments include Property and Casualty, Annuity, Life, and corporate and other. The Property and Casualty Segment offers private passenger automobile insurance. The Annuity Segment markets both fixed and variable annuity contracts, primarily on a tax-qualified basis. The Life Segment offers traditional term and whole life insurance products. The Company also markets its products primarily to K-12 teachers, administrators and other employees of public schools and their families. It markets and services its products through a sales force of full-time agents supported by the Company’s Customer Contact Center.