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Kemper Company introduced it can wind down its most popular private insurance coverage enterprise to pay attention extra assets on its specialty auto and life insurance coverage items. The Illinois-based insurer mentioned it can instantly start non-renewing and canceling all insurance policies issued underneath its Kemper Private Insurance coverage model.
The popular residence and auto insurance policies symbolize about $500 million in annual premiums written throughout eight underwriting firms. Kemper put the enterprise underneath strategic evaluate final November to guage its choices.
“The choice to exit the enterprise was made after considerate analysis of our choices and thought of the best and environment friendly method to help our stakeholders,” mentioned Kemper CEO Joseph P. Lacher Jr.
Shutting down the popular private strains permits Kemper to liberate capital and enhance help for its core operations in specialty auto insurance coverage and life insurance coverage. Kemper Auto focuses on non-standard auto clients, whereas its life insurance coverage enterprise affords merchandise for high-net-worth people.
The exit comes after Kemper took a $45.5 million goodwill impairment cost associated to the popular enterprise in This fall 2022. That non-cash cost mirrored decreased expectations for future earnings energy.
Winding down the popular insurance policies may have no affect on Kemper’s specialty auto unit or its life insurance coverage division. Solely the Kemper Private Insurance coverage branded choices are being discontinued.
The transfer represents a strategic shift for Kemper to slim its give attention to specialty industrial strains and life insurance coverage merchandise. Shedding the popular e book ought to enhance its threat profile and working leverage. Kemper will work to make sure an orderly exit that complies with all state rules on notification and transition timelines.
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