Kemper Insurance Cos. has agreed to sell its personal auto and home insurance business to Trinity Universal Insurance Co., a subsidiary of Unitrin Inc., for more than $45 million.

Under the terms of a preliminary agreement, if the deal is approved by insurance regulators in California and Illinois, Trinity will pay Kemper approximately $45 million in cash plus 1 percent of premiums for three years beginning Jan. 1, 2003, to take over Kemper's Individual and Family Group (IFG) business unit.

Kemper says that its 800,000 personal insurance policyholders should see little to no change from the transition. The majority of IFG policyholders are in California, New York, North Carolina, and Texas.

Unitrin says the purchase of Kemper's IFG will give it greater reach, size, and efficiency. IFG sold insurance policies with premiums totaling approximately $700 million in 2001.

"Unitrin is serious about growing its personal lines presence and [this] will allow us to proceed with our technology-centered business strategy," says Dale Hammond, president of the IFG unit.