An arm of Reinsurance Group of America Inc. (RGA) has reinsured a $2.9 billion block of annuities for Horace Mann Life Insurance Company, a subsidiary of Horace Mann Educators Corp., RGA and Horace Mann announced today.
The deal will free up about $185 million in capital at Horace Mann Life.
Horace Mann Life’s parent plans to use the cash to finance part of the $405 million cost of acquiring National Teachers Associates Life Insurance Company of Dallas, Horace Mann said. National Teachers is best known as an issuer of cancer insurance and other supplemental health insurance products.
Horace Mann said it will continue to service and administer the annuities that RGA is reinsuring.
RGA is reinsuring an older block of 54,000 individual annuities.
All of the contracts were written in 2002 or earlier, and they have a minimum guaranteed crediting rate of 4.5%.
The block includes about $2.2 billion in fixed annuities and $700 million in variable annuities.
RGA is a reinsurer based in Chesterfield, Missouri, and Horace Mann is an insurer based in Springfield, Illinois.