Transaction Overview

SPRINGFIELD, Ill., and CLEVELAND, Ohio, July 21, 2026 – Horace Mann Educators Corporation (NYSE: HMN) and Medical Mutual of Ohio today announced they have entered into two separate agreements under which Horace Mann will acquire the employee assistance provider Employee Services, LLC (ESI) through the acquisition of ESI membership interests, and separately, will acquire an individual supplemental platform through the acquisition of all outstanding capital stock of Reserve National Insurance Company (RNIC) and reinsure MedMutual Life Insurance Company’s group life and disability business while Medical Mutual of Ohio will retain the legal insurance entity.

Together, these established businesses bring deep expertise, strong customer relationships and complementary capabilities to Horace Mann. These transactions add nearly $200 million in annual revenue, serve more than one million covered lives across approximately 7,000 employer relationships, and add over 1,000 agents and brokers, significantly expanding Horace Mann’s customer reach and distribution capabilities.

The transactions are expected to be immediately accretive to Horace Mann’s core earnings per share and shareholder return on equity by strengthening the company's earnings profile through a combination of high-margin insurance businesses, recurring fee-based revenue and enhanced capital efficiency.

"Our strategy has always been centered on creating stronger customer relationships by providing meaningful solutions that meet our customer needs," said Marita Zuraitis, President and Chief Executive Officer of Horace Mann. "These businesses build on our long-term strategy by enhancing our employer value proposition, broadening our distribution capabilities and expanding customer relationships. They create more opportunities to serve educators and employers with a broader portfolio of solutions while extending our reach through complementary customer and distribution relationships."

"These transactions also reflect the disciplined approach we've consistently taken to capital allocation. We invest where we see the strongest opportunities to create long-term profitable growth while delivering attractive returns for shareholders. The differentiated capabilities, high-quality earnings, and exceptional people joining Horace Mann make these businesses both a natural strategic fit and an attractive financial investment."

“This decision reflects our ongoing focus to align our portfolio with our long-term strategy,” said Tony Helton, President and Chief Executive Officer of Medical Mutual. “We will continue to focus our investment and leadership attention on our core businesses and deliver the highest value for our customers and the communities we serve. We are pleased to work with Horace Mann on an outcome that advances the objectives of both organizations and supports a smooth transition for customers, partners and team members while ensuring these businesses continue to thrive.”

Customers and business partners should not experience any disruption to service or ongoing support as a result of these transactions. Medical Mutual and Horace Mann are committed to ensuring a seamless transition and maintaining the high level of service stakeholders expect.

These transactions have a total net purchase price of approximately $240 million and will be financed through a combination of excess capital and borrowings under Horace Mann's existing revolving credit facility.

The ESI transaction is expected to close in the fourth quarter of 2026. The RNIC acquisition and the MedMutual Life Insurance Company group life and disability reinsurance transaction are expected to close in the first quarter of 2027. Each transaction remains subject to customary closing conditions. The acquisition of RNIC and the reinsurance business of MedMutual Life Insurance Company is also subject to regulatory approvals.

Advisors

Raymond James & Associates is acting as financial advisor to Horace Mann and Eversheds Sutherland (US) LLP is acting as legal counsel to Horace Mann. Squire Patton Boggs is acting as legal counsel for Medical Mutual of Ohio and Sherman & Company is acting as financial advisor.

About Medical Mutual of Ohio

Founded in 1934, Medical Mutual is the oldest and one of the largest health insurance companies based in Ohio. The company provides peace of mind to more than 1.1 million Ohioans through high-quality health, dental and vision products. Medical Mutual offers fully insured and self-funded group coverage, including stop loss, as well as Medicare Advantage, Medicare Supplement and Individual plans. As a mutual company, Medical Mutual is owned by its members, not stockholders. The company focuses on products and services that help customers and communities live healthier through all stages of life. For more information, visit the MedMutual.com.

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