CHICAGO--(BUSINESS WIRE)--
Kemper Corporation (NYSE: KMPR)
announced today that its subsidiary, Kemper Corporate Services, Inc.,
has received a favorable ruling in a confidential arbitration proceeding
against a software vendor and has been awarded $84.3 million plus
interest.
In October 2015, Kemper Corporate Services, Inc. filed a demand for
arbitration with the American Arbitration Association (“AAA”), claiming
that the vendor had breached the terms of a master software license and
services agreement and related agreements (collectively, the
“Agreements”) by failing, among other things, to timely produce and
deliver certain software to Kemper. The vendor denied Kemper’s claims
and filed a counterclaim.
On October 2, 2017, the arbitrator issued a Partial Final Award in favor
of Kemper. Pursuant to the material portions of the Partial Final Award:
(i) Kemper’s claim that the vendor had breached the Agreements was
granted; (ii) the vendor’s counterclaim and affirmative defenses were
denied; (iii) Kemper was awarded direct damages of $84.3 million; and
(iv) Kemper is entitled to pre-judgment interest in an amount to be
calculated at a rate of 9%. Under the award, Kemper is also entitled to
submit a petition seeking an award of certain costs and expenses of the
arbitration.
The arbitrator’s decision on the vendor’s liability for breach and the
damages for that breach is final, subject to challenge by the vendor on
any grounds available under applicable law. Kemper intends to pursue
confirmation and enforcement of the Partial Final Award in a court of
competent jurisdiction, and intends likewise to do so with respect to
any final award by the arbitrator that includes the addition of
prejudgment interest and any of Kemper’s costs and expenses (including
attorneys’ fees) the arbitrator deems recoverable. Kemper cannot make
any assurance as to the final amount that will actually be awarded or
when it will be collected. The Partial Final Award is treated as a gain
contingency for accounting purposes, and accordingly will not be
recognized in Kemper’s third quarter 2017 consolidated financial
statements.
About Kemper
The Kemper family of companies is one of the nation’s leading insurers.
With $8 billion in assets, Kemper is improving the world of insurance by
offering personalized solutions for individuals, families and
businesses. Kemper's businesses collectively:
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Offer insurance for home, auto, life, health and valuables
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Service six million policies
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Are represented by 20,000 agents and brokers
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Employ 5,750 associates dedicated to providing exceptional service
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Are licensed to sell insurance in 50 states and the District of
Columbia
Learn more about Kemper.
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
and financial condition to differ materially from estimated results and
financial condition are those listed in periodic reports filed by Kemper
with the SEC. No assurances can be given that the results and financial
condition contemplated in any forward-looking statements will be
achieved or will be achieved in any particular timetable. Kemper 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 Kemper makes on related subjects in its filings with
the SEC.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171011006236/en/
Kemper Corporation
Investors:
Todd Barton
312.661.4930
investors@kemper.com
Source: Kemper Corporation