CHICAGO--(BUSINESS WIRE)--
Unitrin, Inc. (NYSE:UTR) announced today that its subsidiary, Fireside
Bank, has signed a definitive agreement with a subsidiary of Consumer
Portfolio Services, Inc., to sell its active loan portfolio. Unitrin
anticipates that the transaction will close in the third quarter of
2011, subject to regulatory approvals and the satisfaction of other
customary closing conditions. Terms of the transaction were not
disclosed.
Fireside Bank will service the active loan portfolio for a short
transitional period following the closing. Fireside Bank will retain its
non-active loan portfolio, which is in run-off and contains
approximately $475 million of previously charged-off loans as of July
31, 2011.
"This sale represents substantial progress in the wind-down of Fireside
Bank and demonstrates continued success in executing our strategy to
allocate capital to our core businesses. We expect that between $225
million and $250 million of capital will be returned to Unitrin from
Fireside Bank during the fourth quarter and that ultimately a total of
at least $265 million will be returned by the conclusion of the
wind-down process," said Donald Southwell, Chairman, President and Chief
Executive Officer of Unitrin.
Unitrin is a diversified insurance holding company with subsidiaries
that principally provide life, auto, homeowners and other insurance
products for individuals and small businesses.
Unitrin's principal businesses are:
Kemper®1, which provides auto, homeowners and other
insurance products to individuals through a network of independent
agents,
Unitrin Specialty, which provides auto insurance through a
network of independent agents and brokers to individuals and small
businesses which have had difficulty procuring insurance through
traditional channels, usually due to adverse driving records, claim or
credit histories,
Unitrin Direct, which markets auto and homeowners insurance to
consumers via direct mail, the Internet, employer-sponsored employee
benefit programs and other affinity relationships, and
Life and Health Insurance, which specializes in the sale of life
and health insurance products to individuals through networks of
employee agents and exclusive, independent agents.
Additional information about Unitrin is available by visiting its
website (www.unitrin.com).
1 Kemper® is a registered service mark of Unitrin, Inc.
Caution Regarding Forward-Looking Statements
This press release may contain or incorporate by reference information
that includes or is based on forward-looking statements within the
meaning of the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements give
expectations or forecasts of future events, and can be identified by the
fact that they relate to future actions, performance or results rather
than strictly to historical or current facts.
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 involve a number of risks and uncertainties
that are difficult to predict, and are not guarantees of future
performance. Among the general factors that could cause actual results
to differ materially from estimated results are those listed in periodic
reports filed by Unitrin with the Securities and Exchange Commission
(the "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. Unitrin 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 Unitrin makes on
related subjects in its filings with the SEC.
Source: Unitrin, Inc.
Contact:
Unitrin, Inc.
Diana Hickert-Hill, 312-661-4930
investor.relations@unitrin.com