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Horace Mann Educators Corp. — a company that sells insurance products, mutual funds and group annuities aimed at schools and teachers — has agreed to buy an insurer that sells supplemental health benefits to teachers.

Horace Mann said that it expects to pay $405 million for National Teachers Associates Life Insurance Company (NTA).

(Related: Maybe Life Insurers Are Too Focused on Core Operations)

Horace Mann is based in Springfield, Illinois. The company reported $12 million in net income in the third quarter on $311 million in revenue. The company generated $5.3 million in life sales in the quarter and took in $152 million in retirement sales deposits.

NTA is a Dallas-based company that issues cancer insurance, insurance against heart conditions, and other supplemental insurance products. It also sells life insurance and disability income insurance.

The companies hope to complete the deal by June 30.

Horace Mann says it intends to operate NTA as a separate business unit under the current executive team.

The company generated about $30 million in core earnings on $130 million in premium revenue during the 12-month period that ended Sept. 30, according to Horace Mann.

BJO Family Trust, a Texas trust, acquired the company in 2015, according to the Texas Department of Insurance.

The company ended 2017 with about $545 million in assets, according to the Texas department.

— Read Horace Mann Adds Annuitieson ThinkAdvisor.

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