Kemper Corp. and Infinity Property and Casualty Corp.reported that the companies’ respective shareholders approved proposals related to the agreement announced in February under which Kemper will acquire Infinity.
According to the companies, the proposals received overwhelming shareholder support, with more than 99 percent of each company’s shares voting to approve.
Chicago-based insurer Kemper has agreed to acquire Birmingham-based Infinity Property and Casualty Corp. in a cash and stock transaction valued at approximately $1.4 billion, or $129.00 per share, creating an insurer with increased scale in the nonstandard auto insurance market.
The pending transaction remains subject to regulatory approvals. It is expected to close in the third quarter of 2018.
Infinity sells auto insurance in the specialty, nonstandard segment. It has approximately $1.4 billion in 2017 direct written premiums, 88 percent of which is nonstandard auto and the rest commercial vehicle and classic car business. For 2017, it reported operating net income of $44 million a combined ratio of 95.2. Slightly more than half (53 percent) of its business is in California, 31 percent in Florida, 12 percent in Texas and two percent in Arizona. Infinity has 2,300 employees and 10,600 independent agents. One of its target markets is the Hispanic community and many of its employees are bilingual.
Kemper companies offer insurance for home, auto, life, health and valuables and is represented by 20,000 agents and brokers and employs 5,550 associates (2,000 of them in property/casualty).
Kemper to Acquire Nonstandard Auto Insurer Infinity in $1.4 Billion Deal
The combined company will have a more diversified portfolio across auto, home, life, and health insurance with approximately $2.2 billion in nonstandard auto insurance premiums, more agency relationships and greater efficiencies, according to the parties.
The companies say there is limited overlap in their agency forces and their products are complementary.
Kemper also sees an opportunity to sell life, health and renters products to Infinity customers.
After completion of the transaction, Infinity’s senior management team will be integrated into the newly-combined organization. Additionally, at closing, Kemper will increase its current board of directors by one seat and select a director from Infinity to join the Kemper board of directors.
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