CHICAGO--(BUSINESS WIRE)--
Unitrin, Inc. (NYSE: UTR) reported today net income of $62.1 million
($1.00 per unrestricted common share) for the third quarter of 2009,
compared to a net loss of $45.2 million ($0.72 per unrestricted common
share) for the third quarter of 2008, an improvement of $107.3 million.
Net Income from continuing operations was $61.0 million ($0.98 per
unrestricted common share) for the third quarter of 2009, compared to a
net loss from continuing operations of $49.6 million ($0.79 per
unrestricted common share) for the third quarter of 2008.
Highlights
-- Third quarter 2009 net income of $62.1 million; book value per share
increases to $30.36.
-- Debt to total capitalization ratio declines to 22.9%; new $245 million,
three-year revolving credit agreement put in place.
-- Third quarter 2009 segment operating profit of $88.7 million, compared
to third quarter 2008 loss of $36.2 million.
-- Fireside Bank reports small profit for the quarter; exit plan on target
and Tier 1 capital ratio increases to 19.3%.
-- Unitrin Direct achieves break-even results
Don Southwell, Unitrin's President and Chief Executive Officer,
commented, "We are very pleased with our strong third quarter operating
results and with the continued strengthening of our balance sheet.
Operating results improved in each of our business segments compared to
the prior year and improved on a sequential quarter basis in all of our
businesses, except Unitrin Specialty where results declined slightly.
Catastrophe losses from continuing operations were $9.0 million
after-tax in the third quarter of 2009, compared to $54.0 million
after-tax in the third quarter of 2008 which included the impact of
three major hurricanes. Comprehensive investment gains, which include
the unrealized increases in the value of investments, were $226.0
million before tax for the third quarter of 2009, compared to
comprehensive investment losses of $301.5 million before tax for the
third quarter of 2008. Our plan to exit the automobile finance business
and recover the capital that we have invested in Fireside Bank is going
extremely well. We believe that Unitrin Direct is now running at
approximately a break-even level, but we will not begin to grow that
business again until we are confident that Unitrin Direct's book of
business is adequately priced. Our Life and Health Insurance, Kemper and
Unitrin Specialty segments all continue to report strong operating
results."
Shareholders' Equity
Shareholders' equity was $1,893.2 million at September 30, 2009, an
increase of $199.6 million, or 11.8% during the third quarter of 2009.
Total comprehensive income, which includes the unrealized gains in the
value of investments, was $213.2 million for the three months ended
September 30, 2009. Dividends paid during the third quarter were $12.5
million.
Total Revenues
Total revenues were $750.6 million for the third quarter of 2009,
compared to $679.9 million for the third quarter of 2008. Total revenues
increased due primarily to lower net impairment losses recognized in
earnings, higher net investment income and higher earned premiums,
partially offset by lower automobile finance revenues and lower net
realized gains on sales of investments.
Earned premiums were $616.2 million and $599.5 million for the third
quarters of 2009 and 2008, respectively, an increase of $16.7 million.
Earned premiums increased significantly in the Unitrin Direct segment,
with the Unitrin Specialty segment posting a modest increase, the Life
and Health Insurance segment posting a modest decrease and the Kemper
segment posting a slight decrease. Automobile finance revenues decreased
by $18.0 million for the third quarter of 2009, compared to the same
period in 2008, as Fireside Bank continued to execute its plan to exit
the automobile finance business.
Net investment income increased by $29.6 million for the three months
ended September 30, 2009, compared to the same period in 2008, due
primarily to higher investment income from investments in limited
liability investment companies and limited partnerships, partially
offset by lower dividend income from investments in equity securities
and lower investment income from short-term investments. Net investment
income from limited liability investment companies and limited
partnerships increased due primarily to higher investment returns.
Dividend income from investments in equity securities decreased due
primarily to sales of the vast majority of the Company's investments in
Northrop Grumman common stock and other publicly-traded common stocks
during 2008. Net investment income from short-term investments decreased
due primarily to substantially lower yields and, to a lesser extent, a
lower level of short-term investments.
Net realized gains on sales of investments were $12.4 million for the
third quarter of 2009, compared to $27.5 million for the same period in
2008. Net realized gains on sales of investments for the third quarter
of 2009 included gains of $3.8 million from the sales of a portion of
the Company's investment in Northrop common stock, compared to $35.4
million for the same period in 2008. (See "Net Realized Gains on Sales
of Investments" chart below for additional information.) The Company
cannot anticipate when or if similar net realized gains or losses on
sales of investments may occur in the future.
Net impairment losses recognized in earnings were $14.5 million for the
third quarter of 2009, compared to $72.1 million for the same period in
2008. Net impairment losses recognized in earnings for the third quarter
of 2008 included losses of $42.1 million to write down the Company's
investments in preferred and common stocks of financial institutions
(See "Net Impairment Losses Recognized in Earnings" chart below for
additional information.) The Company cannot anticipate when or if
similar net impairment losses may occur in the future.
Quarterly Segment Results
Unitrin is engaged, through its subsidiaries, in the property and
casualty insurance, life and health insurance and automobile finance
businesses. The Company conducts its continuing operations through five
operating segments: Kemper, Unitrin Specialty, Unitrin Direct, Life and
Health Insurance and Fireside Bank.
NOTE: The Company uses the registered trademark, "Kemper," under
license, for personal lines insurance only, from Lumbermens Mutual
Casualty Company ("Lumbermens"), which is not affiliated with the
Company. Lumbermens continues to use the name, "Kemper Insurance
Companies," in connection with its operations, which are distinct from,
and not to be confused with, Unitrin's Kemper business segment.
Kemper
Earned premiums in the Kemper segment decreased by $0.5 million for the
third quarter of 2009, compared to the same period in 2008, due
primarily to an increase in the cost of reinsurance. The Kemper segment
reported an operating profit of $26.4 million for the third quarter of
2009, compared to an operating loss of $23.6 million for the same period
in 2008. Operating results for the Kemper segment improved by $50.0
million for the third quarter of 2009, compared to the same period in
2008, due primarily to lower incurred losses and loss adjustment
expenses ("LAE") and, to a lesser extent, higher net investment income
and lower insurance expenses. Incurred losses and LAE decreased by $36.6
million for the third quarter of 2009, compared to the same period in
2008, due primarily to lower catastrophe losses and LAE, partially
offset by higher frequency of losses on automobile insurance.
Unitrin Specialty
Earned premiums in the Unitrin Specialty segment increased by $6.0
million for the third quarter of 2009, compared to the same period in
2008, due primarily to higher volume of personal automobile insurance,
partially offset by lower volume of commercial automobile insurance.
Operating profit in the Unitrin Specialty segment increased by $6.2
million for the third quarter of 2009, compared to the same period in
2008, due primarily to lower losses and LAE as a percentage of earned
premiums and higher net investment income. Losses and LAE as a
percentage of earned premiums decreased due primarily to favorable loss
and LAE reserve development of $2.2 million in the third quarter of
2009, compared to adverse development of $0.1 million in the same period
in 2008.
Unitrin Direct
Earned premiums in the Unitrin Direct segment increased by $14.4 million
for the third quarter of 2009, compared to the same period in 2008, due
primarily to the impact of the Direct Response acquisition, partially
offset by lower volume of insurance. The Unitrin Direct segment reported
an operating profit of $0.6 million for the third quarter of 2009,
compared to an operating loss of $13.9 million for the same period of
2008. Operating results for the Unitrin Direct segment improved by $14.5
million due primarily to lower incurred losses and LAE as a percentage
of earned premiums, lower marketing expenses, higher net investment
income, and an operating profit of $0.7 million related to the Direct
Response acquisition. Operating Profit for the Unitrin Direct segment
included restructuring costs of $1.2 million before tax for the third
quarter of 2009.
Life and Health Insurance
Earned premiums in the Life and Health Insurance segment decreased by
$3.2 million for the third quarter of 2009, compared to the same period
in 2008, due primarily to lower volume, partially offset by higher
average premium rates and lower cost of catastrophe reinsurance coverage.
Operating profit in the Life and Health Insurance segment increased by
$49.5 million for the third quarter of 2009, compared to the same period
in 2008, due primarily to lower catastrophe losses and LAE, net of
reinsurance, on property insurance sold by the Life and Health Insurance
segment's career agents, higher net investment income, and lower
policyholders' benefits as a percentage of earned premiums on life
insurance.
Fireside Bank
As previously announced, on March 24, 2009, Fireside Bank suspended all
new lending activity and ceased opening new certificate of deposit
accounts as part of a plan to exit the automobile finance business. The
exit plan envisions an orderly wind-down of Fireside Bank's operations
over the next several years. Fireside Bank continues to collect
outstanding loan balances and make interest payments and redemptions on
outstanding certificates of deposits in the ordinary course of business.
While in its early stages, the exit plan thus far has exceeded the
Company's expectations. Net automobile loan receivables outstanding has
declined steadily to $867.2 million at September 30, 2009 from $1,125.2
million at March 31, 2009, while certificates of deposits declined to
$758.6 million at September 30, 2009 from $1,054.4 million at March 31,
2009. Fireside Bank's cash and investments totaled $177.4 million, or
23.4% of certificates of deposits, at September 30, 2009, compared to
$204.7 million, or 19.4% of certificates of deposits, at March 31, 2009.
The Company expects that the Fireside Bank segment will record
approximately break-even results for the fourth quarter of 2009.
Fireside Bank's ratio of Tier 1 capital to total average assets
increased from 15.6% at March 31, 2009 to 19.3% at September 30, 2009.
The Company expects that Fireside Bank's ratio of Tier 1 capital to
total average assets will continue to increase in the fourth quarter of
2009.
Automobile finance revenues decreased by $18.0 million for the third
quarter of 2009, compared to the same period in 2008, due to the lower
levels of loans outstanding as a result of the exit plan. Fireside Bank
reported operating profit of $3.4 million for the third quarter of 2009,
compared to an operating loss of $1.3 million for the same period in
2008.
Consolidated results for the three and nine months ended September 30,
2009 and 2008 are as follows:
Three Months Ended Nine Months Ended
(Dollars and Shares in Millions, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
Except Per Share Amounts) 2009 2008 2009 2008
Revenues:
Earned Premiums $ 616.2 $ 599.5 $ 1,855.0 $ 1,771.7
Automobile Finance Revenues 42.1 60.1 142.4 185.6
Net Investment Income 93.3 63.7 234.7 191.0
Other Income 1.1 1.2 2.0 2.6
Net Realized Gains on Sales of 12.4 27.5 17.6 65.5
Investments
Other-than-temporary Impairment
Losses:
Total Other-than-temporary (14.6 ) (72.1 ) (49.9 ) (98.9 )
Impairment Losses
Portion of Losses Recognized in 0.1 - 0.7 -
Other Comprehensive Income
Net Impairment Losses Recognized (14.5 ) (72.1 ) (49.2 ) (98.9 )
in Earnings
Total Revenues 750.6 679.9 2,202.5 2,117.5
Expenses:
Policyholders' Benefits and
Incurred
Losses and Loss Adjustment 435.1 494.3 1,328.3 1,353.2
Expenses
Insurance Expenses 177.0 190.8 543.7 545.9
Automobile Finance Expenses 29.2 47.8 111.6 171.3
Interest Expense on Certificates 10.1 14.2 34.6 44.9
of Deposits
Goodwill - - 1.5 -
Interest and Other Expenses 15.5 14.6 47.5 46.3
Total Expenses 666.9 761.7 2,067.2 2,161.6
Income (Loss) from Continuing
Operations before
Income Taxes and Equity in Net 83.7 (81.8 ) 135.3 (44.1 )
Income (Loss) of Investee
Income Tax Benefit (Expense) (21.7 ) 31.2 (38.1 ) 27.9
Income (Loss) from Continuing
Operations before
Equity in Net Income (Loss) of 62.0 (50.6 ) 97.2 (16.2 )
Investee
Equity in Net Income (Loss) of (1.0 ) 1.0 (1.1 ) 4.3
Investee
Income (Loss) from Continuing 61.0 (49.6 ) 96.1 (11.9 )
Operations
Discontinued Operations:
Income (Loss) from Discontinued
Operations before Income Taxes 1.6 6.7 3.7 (5.1 )
Income Tax Expense (0.5 ) (2.3 ) (1.4 ) (2.0 )
Income (Loss) from Discontinued 1.1 4.4 2.3 (7.1 )
Operations
Net Income (Loss) $ 62.1 $ (45.2 ) $ 98.4 $ (19.0 )
Basic Income (Loss) Per Share
from Continuing Operations:
Restricted Common Stock $ 0.43 $ (1.09 ) $ 1.10 $ (0.41 )
Unrestricted Common Stock $ 0.98 $ (0.79 ) $ 1.54 $ (0.19 )
Basic Net Income (Loss) Per
Share:
Restricted Common Stock $ 0.45 $ (1.02 ) $ 1.14 $ (0.52 )
Unrestricted Common Stock $ 1.00 $ (0.72 ) $ 1.58 $ (0.30 )
Diluted Income (Loss) Per Share
from Continuing Operations:
Restricted Common Stock $ 0.43 $ (1.09 ) $ 1.10 $ (0.41 )
Unrestricted Common Stock $ 0.98 $ (0.79 ) $ 1.54 $ (0.19 )
Diluted Net Income (Loss) Per
Share:
Restricted Common Stock $ 0.45 $ (1.02 ) $ 1.14 $ (0.52 )
Unrestricted Common Stock $ 1.00 $ (0.72 ) $ 1.58 $ (0.30 )
Dividends Paid Per Share $ 0.20 $ 0.47 $ 0.87 $ 1.41
Business segment revenues for the three and nine months ended September
30, 2009 and 2008 are as follows:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Revenues:
Segment Revenues:
Kemper:
Earned Premiums $ 234.7 $ 235.2 $ 700.9 $ 694.2
Net Investment Income 13.9 6.7 28.7 22.4
Other Income 0.1 0.2 0.3 0.4
Total Kemper 248.7 242.1 729.9 717.0
Unitrin Specialty:
Earned Premiums 131.6 125.6 398.9 362.8
Net Investment Income 6.8 3.1 14.2 10.1
Other Income 0.1 - 0.2 0.1
Total Unitrin Specialty 138.5 128.7 413.3 373.0
Unitrin Direct:
Earned Premiums 88.1 73.7 264.7 219.6
Net Investment Income 6.2 1.7 12.6 5.4
Other Income 0.6 0.1 0.7 0.3
Total Unitrin Direct 94.9 75.5 278.0 225.3
Life and Health Insurance:
Earned Premiums 161.8 165.0 490.5 495.1
Net Investment Income 60.9 45.1 167.4 135.1
Other Income 0.2 0.2 0.7 0.9
Total Life and Health Insurance 222.9 210.3 658.6 631.1
Fireside Bank:
Interest, Loan Fees and Earned 41.2 59.0 139.4 181.7
Discounts
Other Automobile Finance 0.9 1.1 3.0 3.9
Revenues
Automobile Finance Revenues 42.1 60.1 142.4 185.6
Net Investment Income 0.6 0.7 2.3 3.5
Total Fireside Bank 42.7 60.8 144.7 189.1
Total Segment Revenues 747.7 717.4 2,224.5 2,135.5
Unallocated Dividend Income 0.4 3.3 1.1 10.1
Net Realized Gains on Sales of 12.4 27.5 17.6 65.5
Investments
Net Impairment Losses Recognized (14.5 ) (72.1 ) (49.2 ) (98.9 )
in Earnings
Other 4.6 3.8 8.5 5.3
Total Revenues $ 750.6 $ 679.9 $ 2,202.5 $ 2,117.5
Business segment operating profit (loss) for the three and nine months
ended September 30, 2009 and 2008 is as follows:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Segment Operating Profit (Loss):
Kemper $ 26.4 $ (23.6 ) $ 61.1 $ (12.6 )
Unitrin Specialty 10.5 4.3 21.3 14.5
Unitrin Direct 0.6 (13.9 ) (18.4 ) (36.6 )
Life and Health Insurance 47.8 (1.7 ) 118.9 60.0
Fireside Bank 3.4 (1.3 ) (1.5 ) (27.2 )
Total Segment Operating Profit 88.7 (36.2 ) 181.4 (1.9 )
(Loss)
Unallocated Dividend Income 0.4 3.3 1.1 10.1
Net Realized Gains on Sales of 12.4 27.5 17.6 65.5
Investments
Net Impairment Losses Recognized in (14.5 ) (72.1 ) (49.2 ) (98.9 )
Earnings
Other Expense, Net (3.3 ) (4.3 ) (15.6 ) (18.9 )
Income (Loss) from Continuing
Operations before Income
Taxes and Equity in Net Income $ 83.7 $ (81.8 ) $ 135.3 $ (44.1 )
(Loss) of Investee
Business segment net income (loss) for the three and nine months ended
September 30, 2009 and 2008 is as follows:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Segment Net Income (Loss):
Kemper $ 19.2 $ (13.3 ) $ 45.7 $ (1.8 )
Unitrin Specialty 7.8 3.7 16.8 12.3
Unitrin Direct 1.3 (8.5 ) (9.7 ) (22.2 )
Life and Health Insurance 31.7 (1.1 ) 77.7 38.1
Fireside Bank 2.4 (5.3 ) (7.3 ) (20.5 )
Total Segment Net Income (Loss) 62.4 (24.5 ) 123.2 5.9
Net Income (Loss) From:
Unallocated Dividend Income 0.4 2.9 1.0 8.8
Net Realized Gains on Sales of 8.1 17.9 11.5 42.6
Investments
Net Impairment Losses Recognized in (9.4 ) (46.9 ) (32.0 ) (64.3 )
Earnings
Other Expense, Net 0.5 - (6.5 ) (9.2 )
Income (Loss) from Continuing
Operations Before
Equity in Net Income (Loss) of 62.0 (50.6 ) 97.2 (16.2 )
Investee
Equity in Net Income (Loss) of (1.0 ) 1.0 (1.1 ) 4.3
Investee
Income (Loss) from Continuing $ 61.0 $ (49.6 ) $ 96.1 $ (11.9 )
Operations
The components of Net Realized Gains on Sales of Investments for the
three and nine months ended September 30, 2009 and 2008 are as follows:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Fixed Maturities:
Gains on Dispositions $ 3.9 $ 0.1 $ 7.3 $ 4.6
Losses on Dispositions (0.2 ) (4.0 ) (0.3 ) (5.2 )
Equity Securities:
Gains on Dispositions 8.3 36.9 9.8 76.3
Losses on Dispositions - (4.8 ) - (10.4 )
Real Estate
Gains on Dispositions - - - 1.5
Other Investments:
Losses on Dispositions (0.1 ) - (0.1 ) (0.1 )
Trading Securities Net Gains 0.5 (0.7 ) 0.9 (1.2 )
(Losses)
Net Realized Gains on Sales of $ 12.4 $ 27.5 $ 17.6 $ 65.5
Investments
The components of Net Impairment Losses Recognized in Earnings for the
three and nine months ended September 30, 2009 and 2008 were:
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
(Dollars in Millions) 2009 2008 2009 2008
Fixed Maturities $ (14.5 ) $ (21.5 ) $ (41.2 ) $ (23.2 )
Equity Securities - (50.6 ) (8.0 ) (75.7 )
Net Impairment Losses Recognized in $ (14.5 ) $ (72.1 ) $ (49.2 ) $ (98.9 )
Earnings
Unitrin, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
Sept. 30, Dec. 31,
2009 2008
(Unaudited)
Assets:
Investments:
Fixed Maturities at Fair Value (Amortized
Cost: 2009 - $4,324.0; 2008 - $4,174.4) $ 4,552.0 $ 4,135.9
Equity Securities at Fair Value
(Cost: 2009 - $187.9; 2008 - $255.4) 196.7 221.8
Investee (Intermec) at Cost Plus Cumulative
Undistributed Earnings
(Fair Value: 2009 - $178.5; 2008 - $168.1) 97.4 102.2
Short-term Investments at Cost which Approximates Fair 496.2 548.6
Value
Other 755.9 714.9
Total Investments 6,098.2 5,723.4
Cash 101.9 184.2
Automobile Loan Receivables (Fair
Value: 2009 - $773.3; 2008 - $1,099.6) 768.7 1,078.6
Other Receivables 676.7 686.5
Deferred Policy Acquisition Costs 528.1 489.2
Goodwill 331.8 334.6
Current and Deferred Income Taxes 121.2 201.4
Other Assets 131.2 120.9
Total Assets $ 8,757.8 $ 8,818.8
Liabilities and Shareholders' Equity:
Insurance Reserves:
Life and Health $ 3,014.4 $ 2,972.6
Property and Casualty 1,269.9 1,268.7
Total Insurance Reserves 4,284.3 4,241.3
Certificates of Deposits at Cost
(Fair Value: 2009 - $796.5; 2008 - $1,148.7) 758.6 1,110.8
Unearned Premiums 761.8 733.5
Liabilities for Income Taxes 16.5 68.2
Notes Payable at Amortized Cost (Fair Value: 2009 - 561.2 560.8
$495.9; 2008 - $433.9)
Accrued Expenses and Other Liabilities 482.2 455.6
Total Liabilities 6,864.6 7,170.2
Shareholders' Equity:
Common Stock, $0.10 par value, 100 Million Shares
Authorized;
62,356,966 Shares Issued and Outstanding at September
30, 2009 and
62,314,503 Shares Issued and Outstanding at December 6.2 6.2
31, 2008
Paid-in Capital 765.3 764.7
Retained Earnings 1,033.0 985.8
Accumulated Other Comprehensive Income (Loss) 88.7 (108.1 )
Total Shareholders' Equity 1,893.2 1,648.6
Total Liabilities and Shareholders' Equity $ 8,757.8 $ 8,818.8
This press release may contain or incorporate by reference information
that includes or is based on forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Forward-looking statements give
expectations or forecasts of future events. The reader can identify
these statements by the fact that they do not relate strictly to
historical or current facts. They use words such as "believe(s),"
"goal(s)," "target(s)," "estimate(s)," "anticipate(s)," "forecast(s),"
"project(s)," "plan(s)," "intend(s)," "expect(s)," "might," "may" and
other words and terms of similar meaning in connection with a discussion
of future operating or financial performance. Forward-looking
statements, in particular, include statements relating to future
actions, prospective services or products, future performance or results
of current and anticipated services or products, sales efforts,
expenses, the outcome of contingencies such as legal proceedings, trends
in operations and financial results.
Any or all forward-looking statements may turn out to be wrong, and,
accordingly, readers are cautioned not to place undue reliance on such
statements, which speak only as of the date of this press release.
Forward-looking statements can be affected by inaccurate assumptions or
by known or unknown risks and uncertainties. Many such factors will be
important in determining the Company's actual future results. These
statements are based on current expectations and the current economic
environment. They involve a number of risks and uncertainties that are
difficult to predict. These statements are not guarantees of future
performance; actual results could differ materially from those expressed
or implied in the forward-looking statements.
Among the general factors that could cause actual results to differ
materially from estimated results are:
-- Changes in general economic conditions, including performance of
financial markets, interest rates, unemployment rates and fluctuating
values of particular investments held by the Company;
-- Heightened competition, including, with respect to pricing, entry of
new competitors and the development of new products by new and existing
competitors;
-- The number and severity of insurance claims (including those
associated with catastrophe losses) and their impact on the adequacy of
loss reserves;
-- The impact of inflation on insurance claims, including, but not
limited to, the effects attributed to scarcity of resources available to
rebuild damaged structures, including labor and materials and the amount
of salvage value recovered for damaged property;
-- Orders, interpretations or other actions by regulators that impact the
reporting, adjustment and payment of claims;
-- Changes in the pricing or availability of reinsurance;
-- Changes in the financial condition of reinsurers and amounts
recoverable therefrom;
-- Changes in industry trends and significant industry developments;
-- Regulatory approval of insurance rates, policy forms, license
applications and similar matters;
-- Developments related to insurance policy claims and coverage issues
including, but not limited to, interpretations or decisions by courts or
regulators that may govern or influence insurance policy coverage issues
arising with respect to losses incurred in connection with hurricanes
and other catastrophes;
-- Governmental actions, including, but not limited to, national health
care reform, new laws or regulations or court decisions interpreting
existing laws and regulations or policy provisions;
-- Adverse outcomes in litigation or other legal or regulatory
proceedings involving Unitrin or its subsidiaries or affiliates;
-- Regulatory, accounting or tax changes that may affect the cost of, or
demand for, the Company's products or services;
-- The impact of residual market assessments and assessments for
insurance industry insolvencies;
-- Changes in distribution channels, methods or costs resulting from
changes in laws or regulations, lawsuits or market forces;
-- Changes in ratings by credit rating agencies, including A.M. Best Co.,
Inc.;
-- Changes in laws or regulations governing or affecting the regulatory
status of industrial banks, such as Fireside Bank, and their parent
companies, including minimum capital requirements and restrictions on
the non-financial activities and equity investments of companies that
acquire control of industrial banks;
-- Changes in the estimated rates of automobile loan receivables net
charge-off used to estimate Fireside Bank's reserve for loan losses,
including, but not limited to, the impact of changes in the value of
collateral held;
-- The degree of success in effecting an orderly wind-down of the
operations of Fireside Bank and the recovery of Unitrin's investment in
Fireside Bank;
-- The degree of success and costs expended in realizing economies of
scale and implementing significant business consolidations and
technology initiatives;
-- Increased costs and risks related to data security;
-- Absolute and relative performance of the Company's products or
services; and
-- Other risks and uncertainties described from time to time in the
Company's filings with the Securities and Exchange Commission ("SEC").
No assurances can be given that the results contemplated in any
forward-looking statements will be achieved or will be achieved in any
particular timetable. The Company assumes no obligation to publicly
correct or update any forward-looking statements as a result of events
or developments subsequent to the date of this press release. The reader
is advised, however, to consult any further disclosures the Company
makes on related subjects in filings made with the SEC.
Unitrin is a financial services company focused on creating shareholder
value by providing through its subsidiaries a diverse array of insurance
products and services for individuals, families and small businesses.
Among the brands in Unitrin'sProperty and Casualty Insurance businesses
are Kemper and Unitrin Specialty, which sell personal and commercial
insurance through networks of independent agents, and Unitrin Direct,
which sells automobile and homeowners insurance directly to consumers or
through employer-sponsored voluntary benefit programs. Unitrin'sLife
and Health Insurance businesses bring a high-level of personalized
service to their customers.
Additional information about Unitrin, including a copy of its Quarterly
Report on Form 10-Q for the quarter ended September 30, 2009, is
available by visiting its website (www.unitrin.com).
Unitrin plans to issue its next earnings news release discussing its
full year and fourth quarter results and file its annual report on Form
10-K after the market closes on or about Monday, February 1, 2010.
Source: Unitrin, Inc.
Contact: Unitrin, Inc.
Frank J. Sodaro at (312) 661-4930
or via e-mail at investor.relations@unitrin.com