Horace Mann Educators Corp has announced its expansion into New Jersey, where it will offer a range of financial products.
Through a partnership with Plymouth Rock Assurance, the company will also provide automobile and homeowners insurance to educators in the state.
Horace Mann’s offerings in New Jersey will include student loan solutions, teacher appreciation events, and life and retirement products.
“In addition to our partnership with Plymouth Rock, we will bring a full suite of offerings and services,” said Heather Cabra (pictured above), national sales senior vice president at Horace Mann.
Plymouth Rock Assurance has reported growth in its direct underwritten and managed premiums, which increased nearly 15% in 2023, exceeding $2 billion, according to chairman James Stone earlier this year. New Jersey is the company’s second-largest market for independent agent business.
Stone noted that New Jersey regulators have been slower to approve homeowners insurance rate increases compared to other states, but Plymouth Rock has performed “reasonably well” in the private passenger auto segment. The company writes $290 million in automobile premiums in the state with a combined ratio of 100% for 2023.
To address market challenges, Plymouth Rock plans to adjust its portfolio by shedding policies that do not align with its current risk appetite, raising rates on underpriced business it aims to retain, and protecting profitable accounts from unnecessary price increases.
Separately, Providence Mutual Fire Insurance C. recently agreed to transfer its auto insurance business to Plymouth Rock Assurance. Plymouth Rock will offer renewal policies to customers in Connecticut and New Hampshire as part of this agreement, according to AM Best.
Horace Mann’s operations maintain strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio. This strength is attributed to conservative reserving practices and limited reliance on reinsurance.
However, the company’s auto line has faced challenges, including accident frequency nearing pre-pandemic levels, economic and social inflation, and higher claims severity. The property segment has also been affected by increased frequency and severity of weather-related losses.
AM Best noted that Horace Mann’s strong brand recognition within the educator market and its policyholder loyalty enable cross-marketing opportunities across property, casualty, life, annuity, and supplemental product lines. Its products are distributed through exclusive agents who often have prior experience in education, strengthening relationships with school districts.
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