Horace Mann Educators Corp. has eliminated between 20 and 30 jobs in Springfield as part of a reorganization effort.
Among those gone is Bret Benham, executive vice president of life and retirement, whose resignation last week was effective immediately. He will be paid his regular salary at the rate of $400,000 until Jan. 1, according to a disclosure report filed last week with the U.S. Securities and Exchange Commission. Horace Mann hired Benham two years ago.
Existing executives will take over Benham’s duties, said Michelle Eccles, Horace Mann spokeswoman. The elimination of his position is part of a reorganization aimed at improving equity returns to double digits, according to Eccles and a press release announcing an effort to “accelerate profitable growth.”
“Our transformative efforts, and multi-year initiatives focused on improving our products, distribution and infrastructure, have put the key components of our growth strategy in place,” Marita Zuraitis, president and chief executive officer, says in the press release. “This organizational realignment allows us to leverage our talented senior leadership team as we capitalize on the profitable growth opportunities in all of our businesses.”
Eccles confirmed that the reorganization has resulted in job reductions. Between 20 and 30 positions have been eliminated, she said, which amounts to less than 5 % of the company’s employment in Springfield.
“I wouldn’t call it a downsizing,” Eccles said. “I would say we have reorganized, and different positions were eliminated.”
While Eccles said that the company has open positions – 17 open jobs in Springfield are listed on the company’s website – employment in the capital city has gone down over the past several years. According to the Land of Lincoln Economic Development Corp., a public-private entity aimed at boosting economic development, Horace Mann employed 1,100 people in 2017. Employment now stands at about 1,000, Eccles said.
“Wherever we have duplication, we’re looking at it and making sure we have people in the best positions,” she said.
The company markets insurance, annuities and savings plans to teachers and has about $11 billion in assets. The stock price has risen from $30.41 five years ago to more than $44 a share this week. The company is due to report third-quarter earnings next week.
“None of this (reorganization) was because of any kind of weakening of our business,” Eccles said. “We’re still a very financially strong company. … This is all, really, what every company does year in and year out.”
During the past year, Horace Mann has acquired two companies, including Benefit Consultants Group, a New Jersey-based retirement plan provider for which the company paid $25 million, and National Teachers Associates, a Texas insurance firm that carried a $405 million purchase price. The latter acquisition was financed with cash and $250 million in debt, according to press releases and statements filed with the U.S. Securities and Exchange Commission.
Contact Bruce Rushton at [email protected].
