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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.
"Unitrin . . . will allow us to proceed with our technology-centered business strategy." |
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.
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