CHICAGO--(BUSINESS WIRE)--
Unitrin, Inc. (NYSE:UTR) announced today that its subsidiary,
Trinity Universal Insurance Company ("Trinity"), has entered into a
definitive agreement to acquire Merastar Insurance Company ("Merastar
Insurance") and certain of its affiliates, superseding the previously
announced agreement in principle. Trinity will acquire Merastar
Insurance in a cash transaction valued at approximately $45 million,
subject to certain purchase price adjustments. The transaction is
subject to approvals by insurance regulators and other third parties
and other customary closing conditions, and is expected to close in
the second quarter.
Merastar Insurance is based in Chattanooga, Tennessee and
specializes in the sale of personal automobile and homeowners'
insurance through employer-sponsored voluntary benefit programs. For
the year ended December 31, 2006, Merastar Insurance recorded direct
written premiums of approximately $54 million. As previously announced
by Unitrin, Merastar Insurance will become part of its Unitrin Direct
business segment.
Referring to the execution of the definitive agreement, Donald G.
Southwell, Unitrin's Chief Executive Officer, said: "We are pleased
with this very important step towards consummation of the transaction
and continue to look forward to Merastar Insurance joining the Unitrin
family of companies."
Unitrin is a $3 billion financial services company focused on
creating shareholder value by providing a diverse array of insurance
and consumer finance products and services for individuals, families
and small businesses.
Among the brands in Unitrin's Property and Casualty Insurance
business are Kemper Auto and Home, Unitrin Specialty and Unitrin
Business Insurance, which sell personal and commercial insurance
through networks of independent agents, and Unitrin Direct, which
sells auto insurance directly to consumers. Unitrin's Life and Health
businesses bring a high level of personalized service to their
customers. Unitrin's consumer finance subsidiary, Fireside Bank,
specializes in automobile loans for the purchase of pre-owned
vehicles. Additional information about Unitrin is available by
visiting its website (www.unitrin.com).
Source: Unitrin, Inc.
Contact: Unitrin, Inc.
David F. Bengston, 312-661-4930
investor.relations@unitrin.com