CHICAGO--(BUSINESS WIRE)--
Kemper Corporation (NYSE: KMPR)
announced today that the United States District Court for the Northern
District of Texas has confirmed an arbitration award in favor of its
subsidiary, Kemper Corporate Services, Inc., against Computer Sciences
Corporation. As a result of the decision to confirm the award, the court
entered judgment in the amount of $141.7 million against Computer
Sciences Corporation and its parent, DXC Technology Company
(collectively “CSC”).
The Final Award of the arbitrator, issued in November 2017, found that
CSC had breached a contract for the delivery of certain policy
administration and billing software. Kemper was awarded direct damages
of $84.3 million, prejudgment interest at an annual rate of 9%, and $7.2
million for costs and expenses associated with the arbitration. Kemper
subsequently filed a motion to confirm the award and CSC moved to
partially vacate the award; in confirming the award, the court denied
CSC’s motion to vacate.
CSC has indicated it intends to appeal the court’s ruling, but in the
meantime has tendered to Kemper a payment of $35.7 million that includes
approximately $28.5 million for the portion of the direct damages that
is not contested by CSC and the $7.2 million in costs and expenses noted
above. Kemper will recognize the payment of the uncontested amount as a
pre-tax gain in its third quarter 2018 consolidated financial statements.
Kemper cannot make any assurance as to the additional amounts of the
final judgment that will actually be collected or when they may be
received. The unpaid balance of the final judgment is treated as a gain
contingency for accounting purposes and, accordingly, is not recognized
in Kemper’s consolidated financial statements.
About Kemper
The Kemper family of companies is one of the nation’s leading insurers.
With $11 billion in assets, Kemper is improving the world of insurance
by offering personalized solutions for individuals, families and
businesses. Through our businesses, Kemper:
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Offers insurance for home, auto, life, health and valuables
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Services seven million policies
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Is represented by 30,000 agents and brokers
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Employs over 7,800 associates dedicated to providing exceptional
service
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Is 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: https://www.businesswire.com/news/home/20180926005947/en/
Kemper
Investors:
Michael Marinaccio
312.661.4930
investors@kemper.com
or
News
Media:
Barbara Ciesemier
312.661.4521
bciesemier@kemper.com
Source: Kemper