Kemper Completes Acquisition of American Access

Rhea-AI Summary

Kemper Corporation (NYSE: KMPR) has completed its acquisition of American Access Casualty Company (AAC) and its related insurance agency, valued at approximately $370 million. This strategic move enhances Kemper's specialty auto insurance franchise in states including Arizona, Illinois, Indiana, Nevada, and Texas. Duane Sanders, President of Kemper’s P&C Division, emphasized the transaction’s potential for increased reach and scale, as well as access to underserved markets through expanded distribution channels.

Positive

• Acquisition valued at approximately $370 million strengthens Kemper's specialty auto insurance franchise.
• Enhances geographic footprint and distribution channels in underserved markets.

Negative

• None.

Kemper Corporation (NYSE: KMPR) announced today that it has closed its previously announced acquisition of American Access Casualty Company and its related captive insurance agency, Newins Insurance Agency Holdings, LLC, and its subsidiaries (collectively “AAC”). AAC provides specialty private passenger auto insurance in Arizona, Illinois, Indiana, Nevada and Texas.

Pursuant to the terms of the acquisition agreement dated November 22, 2020, the total cash transaction is valued at approximately $370 million.

“The close of this transaction marks further expansion of Kemper’s specialty auto franchise,” said Duane Sanders, President of Kemper’s P&C Division. “AAC provides increased reach and incremental scale with additional distribution channels and an expansion of our geographic footprint. We are excited to welcome the AAC team to Kemper, and look forward to advancing our focus on providing affordable and easy-to-use products and solutions to underserved markets.”

About Kemper

The Kemper family of companies is one of the nation’s leading specialized insurers. With $14.3 billion in assets, Kemper is improving the world of insurance by providing affordable and easy-to-use personalized solutions to individuals, families and businesses through its Auto, Personal Insurance, Life and Health brands. Kemper serves over 6.2 million policies, is represented by more than 30,000 agents and brokers, and has 9,500 associates dedicated to meeting the ever-changing needs of its customers.

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 factors listed in periodic reports filed by Kemper with the Securities and Exchange Commission (“SEC”). The COVID-19 outbreak and subsequent global pandemic (“Pandemic”) is an extraordinary event that creates unique uncertainties and risks. Kemper cannot provide any assurances as to the impacts of the Pandemic and related economic conditions on the Company’s operating and financial results.

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, including any such statements related to the Pandemic. 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/20210401005574/en/

FAQ

What is the value of the KMPR acquisition of American Access Casualty Company?

The acquisition is valued at approximately $370 million.

What does American Access Casualty Company specialize in?

AAC specializes in providing private passenger auto insurance.

Which states does AAC operate in after the acquisition by KMPR?

AAC operates in Arizona, Illinois, Indiana, Nevada, and Texas.

When was the acquisition agreement for AAC signed by KMPR?

The acquisition agreement was signed on November 22, 2020.

How will the acquisition affect KMPR's market presence?

The acquisition is expected to bolster KMPR's specialty auto insurance franchise and expand its geographic reach.