( BW)(IL-UNITRIN)(UTR) Unitrin Closes Acquisition of Kemper's Personal
Lines Insurance Businesses
Business Editors
CHICAGO--(BUSINESS WIRE)--June 28, 2002--Unitrin, Inc. (NYSE: UTR)
announced today that its subsidiary, Trinity Universal Insurance
Company, has closed its previously-announced acquisition of the
personal lines property and casualty insurance business of the Kemper
Insurance Companies. Kemper's Individual and Family Group business
unit ("IFG") specializes in the sale of personal automobile and
homeowner's insurance through independent agents. Trinity purchased
the assets of the IFG unit, but all pre-closing liabilities of IFG,
including policy reserves and unearned premium reserves, will remain
with Kemper. In a related part of the transaction, Unitrin acquired
the stock of Kemper's direct distribution personal lines subsidiaries,
which sell personal automobile insurance to consumers over the
Internet.
Subject to post-closing adjustments, the purchase price is
approximately $45 million plus 1% of premiums written over a
three-year period beginning January 1, 2003. As further consideration,
Kemper will be eligible for performance bonuses if the business meets
certain loss ratio criteria over the same three years. Kemper will
retain all liabilities for policies issued prior to the closing, while
Trinity will be entitled to premiums written for substantially all
policies issued or renewed after the closing and will be liable for
losses and expenses incurred thereon. Kemper's personal lines net
written premiums were approximately $700 million in 2001. In addition,
Trinity will administer on behalf of Kemper all policies issued prior
to the closing.
Unitrin's subsidiaries are engaged in three businesses: property
and casualty insurance, life and health insurance and consumer
finance. Unitrin has in excess of $7 billion in assets, nearly 7,700
employees and had consolidated revenues in 2001 of more than $2.5
billion.
This press release contains certain forward-looking statements.
Readers are cautioned not to place undue reliance on such statements,
which speak only as of the date of this press release. These
forward-looking statements are subject to risks, contingencies and
uncertainties which could cause actual results to differ materially
from those contemplated in such statements. In connection with the
transaction described above, such risks, contingencies and
uncertainties include, but are not limited to, the rate at which IFG
policies are renewed by Unitrin's insurance subsidiaries. No
assurances can be given that the results contemplated in any of these
statements will be achieved or will be achieved in any particular time
table. Unitrin assumes no obligation to release publicly any revisions
to any forward-looking statements as a result of events or
developments subsequent to the date of this press release.
--30--bpm/cgo*
CONTACT: Unitrin, Inc.
Scott Renwick, 312/661-4930
investor.relations@unitrin.com
KEYWORD: ILLINOIS
INDUSTRY KEYWORD: INSURANCE MERGERS/ACQ
SOURCE: Unitrin, Inc.
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