Kemper Corp. will snatch up Alliance United Group and its subsidiaries for about $70 million, a move that fuels a California expansion for the company.
Assuming regulatory and other conditions can be met, the deal should close in the 2015 first half.
“This acquisition is a great addition to Kemper’s strong personal lines insurance business and increases our capabilities to serve the non-standard private passenger auto market,” Kemper Chairman, President and CEO Donald Southwell said in prepared remarks.
As far as what Kemper is getting in the deal, Alliance United is a top five writer of non-standard auto insurance in California, according to the deal announcement. Alliance United’s 2014 direct written premiums should surpass $300 million. The privately-owned outfit launched only in 2004, and distributes automotive insurance through a network of 900 producers in 2,000 locations.
Once the acquisition closes, Kemper said it will contribute up to $75 million in capital to support Alliance United’s book of business.
Kemper, an insurance holding company, has subsidiaries focused on auto, homeowners, renters, life and health insurance.
Source: Kemper