Kemper's Sale Deal Discontinued
Michael Ha
NU Online News Service, April 24, 3:11 p.m. EDT? The beleaguered Kemper Insurance Companies said this morning that its previously announced "letter of intent" prepared for the sale of its core middle-market business has been discontinued.
The agreement under discussion had involved Kemper's selling off its middle-market business--including workers' compensation, auto offerings, as well as umbrella coverage sold in support of these lines--to a new firm capitalized by equity investment firms, including an affiliate of giant reinsurer Swiss Re
Kemper said during its announcement early last month that it will cease underwriting activities as it sells off its core business and that it would focus on expanding opportunities for its claim and insurance services platform.
But the Long Grove, Ill.-based insurer announced today that it is currently evaluating its options with respect to its middle-market business and is also considering what effect this development may have on its outstanding surplus notes tender offer.
A Kemper spokesperson was not immediately available for additional information concerning the breakdown of the deal.
"The first strategic alternative has obviously failed," said Thomas S. Jalics, an associate director at Fitch Ratings in New York. "At this point, all we have is the company's press release and there is not a lot of information there. The press release I saw was very vague," Mr. Jalics told National Underwriter. "We will have to wait and evaluate as we go forward and as more information becomes available."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
